<PAGE> 1
[Nationwide Logo]
NATIONWIDE(R)
VLI SEPARATE
ACCOUNT-3
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 2000
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-2413-R (06/00)
<PAGE> 2
[Nationwide Logo]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PICTURE]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you the 2000
semi-annual report of the Nationwide VLI Separate Account-3.
During the first half of 2000 fixed income and equity markets took a hiatus from
their recent advances. It appears the Federal Reserve's interest rate hikers are
accomplishing the intended purpose. Recent economic statistics show some
moderation in the areas of home and vehicles sales because of the higher
interest costs. And, there are other favorable indications that the Fed may yet
"glide" the economy to a soft landing. Inflation remains low. Sustained
increases in worker productivity continue to dampen pricing pressures of an
increasingly tight labor pool. Corporate profitability growth remains viable. An
improving global economy bodes well for U.S. exporting businesses. While all
this provides a positive backdrop, we expect the markets will continue jittery
and volatile during the second half of the year as uncertainty over further Fed
actions persists. However, we believe patient investors in financial assets will
be amply rewarded when we move beyond this temporary respite.
Nationwide Life was a forerunner in the variable annuity and variable life
insurance business. We continue to develop new and innovative investment
products to better meet your financial planning and retirement needs. And, we
are equally committed to providing you, our valued customer, the exceptional
level of customer service you expect and deserve.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 16, 2000
2
<PAGE> 3
HOW TO READ THE SEMI-ANNUAL REPORT
This semi-annual report is a presentation of the variable account as a whole and
only describes the underlying contracts and products of the variable account in
general terms. Please note the variable account may have more than one variable
product available. Such products may have different underlying mutual funds
available than those available in your contract. Therefore, not all funds listed
in this report may be available in your contract. Please refer to your most
recent account statement for specific information about your investment in the
Nationwide VLI Separate Account-3. Rules and regulations of the United States
Securities and Exchange Commission and recognized conventions of Generally
Accepted Accounting Principals prescribe the format and content of this report.
We also invite you to call our service center at 1-800-547-7548 if you have
questions about your account, or you may access your account using our voice
response unit. And, please visit our web-site at www.bestofamerica.com for
additional information about your contract and to learn more about other
products and services offered by Nationwide Financial.
THE ANNUAL REPORT HAS FOUR MAJOR FINANCIAL SECTIONS:
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT
OWNER'S EQUITY
This statement begins on page 4 and lists all of the underlying mutual funds of
the variable account, the number of shares owned, the amount paid for the shares
and their market value as of the close of business on June 30, 2000. The mutual
funds are listed in alphabetical order. The market value of the assets changes
as the underlying mutual funds change in value. As contract owners make exchange
transactions between the funds, the number of shares increases or decreases
accordingly. When money is deposited or withdrawn by a contract owner, shares
are correspondingly purchased or redeemed. The total market value of the funds
is equal to the TOTAL INVESTMENTS of the variable account.
ACCOUNTS RECEIVABLE, if applicable, represents an asset of the variable account
for money market fund shares purchased by contract owners and reinvested
dividend shares added to contract owners' accounts, but not yet added to Total
investments. Total investments plus Accounts receivable equal TOTAL ASSETS of
the variable account.
ACCOUNTS PAYABLE, if applicable, is a liability of the variable account for
money market fund shares redeemed by contract owners' but not yet deducted from
Total investments.
Total assets minus Accounts payable equals Contract owners' equity. A summary of
CONTRACT OWNERS' EQUITY by funds series may be found on page 25. This summary
also includes investment return for the reporting period for each fund series.
STATEMENTS OF OPERATIONS AND STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
These statements begin on page 6 and present the financial activity of each
underlying mutual fund sub-account of the variable account, for the periods
indicated.
The INVESTMENT ACTIVITY section shows income to the variable account for
reinvested dividends and capital gain distributions paid by the underlying
mutual funds. Also shown are the mortality, expense and administration charges
which are assessed through the daily unit value calculation and which represent
an expense to the variable account and its contract owners. This section also
shows the realized gain or loss as mutual fund shares are sold, and the change
in unrealized gain or loss, which represents the changes in market value of the
underlying fund shares.
The EQUITY TRANSACTIONS section illustrates the receipt of purchase payments, as
new contracts are sold or additional payments made to existing contracts. Also
presented are deductions from the variable account when the contract owners
withdraw money.
The sum of the above two sections represents the NET CHANGE IN CONTRACT OWNERS'
EQUITY which when added to the beginning Contract owners' equity equals Contract
owners' equity at the end of the reporting period.
NOTES TO FINANCIAL STATEMENTS, beginning on page 21, provide further disclosures
about the variable account and its underlying contract provisions.
3
<PAGE> 4
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at market value:
American Century VP - American Century VP Advantage (ACVPAdv)
74,960 shares (cost $464,898) ....................................................... $ 452,759
American Century VP - American Century VP Balanced (ACVPBal)
2,767 shares (cost $20,338) ......................................................... 20,916
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
11,760 shares (cost $159,793) ....................................................... 199,794
American Century VP - American Century VP Income & Growth (ACVPIncGr)
4,691 shares (cost $34,403) ......................................................... 35,979
American Century VP - American Century VP International (ACVPInt)
7,644 shares (cost $93,458) ......................................................... 88,365
American Century VP - American Century VP Value (ACVPValue)
1,467 shares (cost $9,795) .......................................................... 7,954
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGr)
9,090 shares (cost $327,953) ........................................................ 364,128
Dreyfus Stock Index Fund (DryStkIx)
20,015 shares (cost $615,692) ....................................................... 760,988
Dreyfus VIF - Appreciation Portfolio (DryVApp)
1,447 shares (cost $53,417) ......................................................... 59,302
Dreyfus VIF - Growth and Income Portfolio (DryVGrInc)
643 shares (cost $15,028) ........................................................... 16,198
Fidelity VIP - Equity-Income Portfolio (FidVEqIn)
16,317 shares (cost $380,797) ....................................................... 373,818
Fidelity VIP - Growth Portfolio (FidVGr)
33,405 shares (cost $1,511,999) ..................................................... 1,721,711
Fidelity VIP - High Income Portfolio (FidVHiIn)
7,449 shares (cost $81,576) ......................................................... 74,793
Fidelity VIP - Overseas Portfolio (FidVOvSe)
2,337 shares (cost $58,950) ......................................................... 54,816
Fidelity VIP-II - Asset Manager Portfolio (FidVAM)
5,577 shares (cost $90,952) ......................................................... 92,240
Fidelity VIP-II - Contrafund Portfolio (FidVCon)
32,392 shares (cost $725,352) ....................................................... 812,705
Fidelity VIP-III - Growth Opportunities Portfolio (FidVGrOp)
971 shares (cost $20,179) ........................................................... 20,004
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
1,247 shares (cost $8,980) .......................................................... 9,180
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
277,958 shares (cost $4,701,177) .................................................... 7,187,981
Nationwide SAT - Government Bond Fund (NSATGvtBd)
143,445 shares (cost $1,615,373) .................................................... 1,562,119
Nationwide SAT - Money Market Fund (NSATMMkt)
580,734 shares (cost $580,734) ...................................................... 580,734
</TABLE>
4
<PAGE> 5
<TABLE>
<CAPTION>
<S> <C>
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
4,521 shares (cost $45,685) ......................................................... 48,776
Nationwide SAT - Small Company Fund (NSATSmCo)
7,464 shares (cost $168,250) ........................................................ 177,654
Nationwide SAT - Total Return Fund (NSATTotRtn)
888,264 shares (cost $11,775,892) ................................................... 17,223,437
Neuberger & Berman AMT - Balanced Portfolio (NBAMTBal)
88,992 shares (cost $1,473,929) ..................................................... 1,777,175
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
7,702 shares (cost $284,653) ........................................................ 305,290
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
851 shares (cost $12,528) ........................................................... 13,899
Neuberger & Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
389 shares (cost $5,140) ............................................................ 4,899
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
7,057 shares (cost $130,916) ........................................................ 112,700
Oppenheimer Bond Fund/VA (OppBdVA)
452 shares (cost $5,291) ............................................................ 4,890
Oppenheimer Global Securities Fund/VA (OppGlSecVA))
6,730 shares (cost $215,012) ........................................................ 215,028
Oppenheimer Capital Appreciation Fund/VA (OppCapApVA)
6,076 shares (cost $297,211) ........................................................ 310,722
Oppenheimer Multiple Strategies Fund/VA (OppMltStVA)
670 shares (cost $10,676) ........................................................... 11,111
Strong Opportunity Fund II, Inc. (StOpp2)
6,472 shares (cost $143,081) ........................................................ 175,073
Strong VIF - Strong Discovery Fund II (StDisc2)
2,307 shares (cost $26,069) ......................................................... 29,341
Strong VIF - Strong International Stock Fund II (StIntStk2)
1,866 shares (cost $32,229) ......................................................... 26,902
Van Eck WIT - Worldwide Bond Fund (VEWwBd)
169 shares (cost $1,799) ............................................................ 1,720
Van Eck WIT - Worldwide Emerging Markets Fund (VEWwEmgMkt)
4,108 shares (cost $59,689) ......................................................... 51,315
Van Eck WIT - Worldwide Hard Assets Fund (VEWwHrdAst)
518 shares (cost $6,190) ............................................................ 5,837
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
1,062 shares (cost $14,415) ......................................................... 14,289
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
2,890 shares (cost $40,165) ......................................................... 44,044
Warburg Pincus Trust - Global Post - Venture Capital Portfolio (WPGlPVenCp)
979 shares (cost $19,861) ........................................................... 19,790
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
6,160 shares (cost $169,880) ........................................................ 165,260
----------
Total investments ................................................................ 35,235,636
Accounts receivable ....................................................................... 631
----------
Total assets ..................................................................... 35,236,267
ACCOUNTS PAYABLE ............................................................................. -
----------
CONTRACT OWNERS' EQUITY (NOTE 7) ............................................................. $ 35,236,267
==========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY
STATEMENTS OF OPERATIONS
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Total ACVPAdv
----------------------------------------- -----------------------------------------
2000 1999 1998 2000 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 195,032 213,874 267,089 13,064 13,250 19,124
Mortality and expense charges
(note 3) ......................... (138,769) (134,901) (125,965) (1,910) (1,795) (1,533)
----------- ----------- ----------- ----------- ----------- -----------
Net investment activity .......... 56,263 78,973 141,124 11,154 11,455 17,591
----------- ----------- ----------- ----------- ----------- -----------
Proceeds from mutual fund
shares sold ...................... 4,610,615 2,288,210 1,231,676 53,397 533,951 37,353
Cost of mutual funds sold ........... (2,899,632) (1,640,372) (829,101) (52,490) (399,302) (31,439)
----------- ----------- ----------- ----------- ----------- -----------
Realized gain (loss) on
investments .................... 1,710,983 647,838 402,575 907 134,649 5,914
Change in unrealized gain (loss)
on investments ................... (1,651,792) 2,264,752 3,125,717 (76,247) (151,523) (8,437)
----------- ----------- ----------- ----------- ----------- -----------
Net gain (loss) on investments ... 59,191 2,912,590 3,528,292 (75,340) (16,874) (2,523)
----------- ----------- ----------- ----------- ----------- -----------
Reinvested capital gains ............ 665,048 217,525 482,670 81,440 31,451 71,956
----------- ----------- ----------- ----------- ----------- -----------
Net change in contract
owners' equity resulting
from operations ............. 780,502 3,209,088 4,152,086 17,254 26,032 87,024
----------- ----------- ----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,694,478 1,818,574 2,348,756 28,581 20,679 15,337
Transfers between funds ............. -- -- -- (35,887) (14,421) --
Surrenders .......................... (1,217,446) (1,431,059) (457,381) (23,899) (498,592) (9,961)
Death benefits (note 4) ............. (269,599) (17,623) (124,773) -- -- (10,264)
Policy loans (net of repayments)
(note 5) ......................... (428,591) (422,365) (466,674) 8,031 (4,870) (5,222)
Deductions for surrender charges
(note 2d) ........................ (46,218) (62,823) (61,147) (907) (8) (1,331)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,036,463) (1,014,000) (1,008,505) (17,305) (17,678) (3,196)
----------- ----------- ----------- ----------- ----------- -----------
Net equity transactions ........ (1,303,839) (1,129,296) 230,276 (41,386) (514,890) (14,637)
----------- ----------- ----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. (523,337) 2,079,792 4,382,362 (24,132) (488,858) 72,387
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 35,759,604 34,839,835 29,309,606 476,898 958,986 856,191
----------- ----------- ----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $35,236,267 36,919,627 33,691,968 452,766 470,128 928,578
=========== =========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
ACVPBal
-----------------------------------------
2000 1999 1998
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 512 356 374
Mortality and expense charges
(note 3) ......................... (81) (72) (10)
----------- ----------- -----------
Net investment activity .......... 431 284 364
----------- ----------- -----------
Proceeds from mutual fund
shares sold ...................... 371 361 4,926
Cost of mutual funds sold ........... (349) (346) (4,313)
----------- ----------- -----------
Realized gain (loss) on
investments .................... 22 15 613
Change in unrealized gain (loss)
on investments ................... (613) (2,064) (581)
----------- ----------- -----------
Net gain (loss) on investments ... (591) (2,049) 32
----------- ----------- -----------
Reinvested capital gains ............ 323 2,455 2,314
----------- ----------- -----------
Net change in contract
owners' equity resulting
from operations ............. 163 690 2,710
----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 560 558 (101)
Transfers between funds ............. -- -- --
Surrenders .......................... -- -- (3,894)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- --
Deductions for surrender charges
(note 2d) ........................ -- -- (521)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (361) (383) --
----------- ----------- -----------
Net equity transactions ........ 199 175 (4,516)
----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 362 865 (1,806)
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 20,546 18,451 20,052
----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 20,908 19,316 18,246
=========== =========== ===========
</TABLE>
6
<PAGE> 7
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
ACVPCapAp ACVPIncGr
----------------------------------- -----------------------------------
2000 1999 1998 2000 1999 1998
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ -- -- -- 149 3 --
Mortality and expense charges
(note 3) ......................... (696) (217) (129) (113) (39) --
--------- --------- --------- --------- --------- ---------
Net investment activity .......... (696) (217) (129) 36 (36) --
--------- --------- --------- --------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 17,037 9,970 15,860 1,807 3,967 --
Cost of mutual funds sold ........... (10,118) (11,195) (18,875) (1,554) (3,891) --
--------- --------- --------- --------- --------- ---------
Realized gain (loss) on
investments .................... 6,919 (1,225) (3,015) 253 76 --
Change in unrealized gain (loss)
on investments ................... 11,892 9,756 532 (1,338) 860 --
--------- --------- --------- --------- --------- ---------
Net gain (loss) on investments ... 18,811 8,531 (2,483) (1,085) 936 --
--------- --------- --------- --------- --------- ---------
Reinvested capital gains ............ 5,238 -- 3,128 -- -- --
--------- --------- --------- --------- --------- ---------
Net change in contract
owners' equity resulting
from operations ............. 23,353 8,314 516 (1,049) 900 --
--------- --------- --------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 6,028 1,981 (3,621) 1,488 948 --
Transfers between funds ............. 107,410 (7,729) -- 12,738 14,197 --
Surrenders .......................... -- -- (8,876) -- (4,028) --
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (15,800) 367 5,439 -- 439 --
Deductions for surrender charges
(note 2d) ........................ -- -- (1,187) -- (271) --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (3,187) (1,492) (1,311) (1,065) (470) --
--------- --------- --------- --------- --------- ---------
Net equity transactions ........ 94,451 (6,873) (9,556) 13,161 10,815 --
--------- --------- --------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 117,804 1,441 (9,040) 12,112 11,715 --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 81,982 56,798 68,695 23,872 3,878 --
--------- --------- --------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 199,786 58,239 59,655 35,984 15,593 --
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
ACVPInt
-----------------------------------
2000 1999 1998
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 62 -- 162
Mortality and expense charges
(note 3) ......................... (243) (99) (33)
--------- --------- ---------
Net investment activity .......... (181) (99) 129
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 22,536 12,103 2,770
Cost of mutual funds sold ........... (14,581) (8,732) (2,158)
--------- --------- ---------
Realized gain (loss) on
investments .................... 7,955 3,371 612
Change in unrealized gain (loss)
on investments ................... (13,311) (1,389) 4,104
--------- --------- ---------
Net gain (loss) on investments ... (5,356) 1,982 4,716
--------- --------- ---------
Reinvested capital gains ............ 923 -- 1,666
--------- --------- ---------
Net change in contract
owners' equity resulting
from operations ............. (4,614) 1,883 6,511
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,710 1,342 1,005
Transfers between funds ............. 81,647 (1,775) --
Surrenders .......................... (4,495) -- (1,778)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (12,441) (9,312) 175
Deductions for surrender charges
(note 2d) ........................ (171) -- (238)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (2,123) (1,256) (607)
--------- --------- ---------
Net equity transactions ........ 65,127 (11,001) (1,443)
--------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 60,513 (9,118) 5,068
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 27,851 34,574 27,751
--------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 88,364 25,456 32,819
========= ========= =========
</TABLE>
(Continued)
7
<PAGE> 8
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
ACVPValue DrySRGr
-------------------------------- --------------------------------
2000 1999 1998 2000 1999 1998
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 99 68 -- 38 -- --
Mortality and expense charges
(note 3) ......................... (30) (27) (1) (1,069) (346) (79)
-------- -------- -------- -------- -------- --------
Net investment activity .......... 69 41 (1) (1,031) (346) (79)
-------- -------- -------- -------- -------- --------
Proceeds from mutual fund
shares sold ...................... 31 137 -- 39,243 1,662 8,521
Cost of mutual funds sold ........... (41) (155) -- (20,471) (859) (5,506)
-------- -------- -------- -------- -------- --------
Realized gain (loss) on
investments .................... (10) (18) -- 18,772 803 3,015
Change in unrealized gain (loss)
on investments ................... (643) 234 (377) (8,043) 10,110 5,224
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments ... (653) 216 (377) 10,729 10,913 8,239
-------- -------- -------- -------- -------- --------
Reinvested capital gains ............ 253 642 5 -- -- --
-------- -------- -------- -------- -------- --------
Net change in contract
owners' equity resulting
from operations ............. (331) 899 (373) 9,698 10,567 8,160
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 788 781 6,329 10,224 5,105 14,002
Transfers between funds ............. -- -- -- 203,543 22,941 --
Surrenders .......................... -- -- -- -- (352) (10,248)
Death benefits (note 4) ............. -- -- -- (29,129) -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- -- (4,467) 4 7,203
Deductions for surrender charges
(note 2d) ........................ -- -- -- -- (24) (1,371)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (160) (150) -- (5,475) (2,064) --
-------- -------- -------- -------- -------- --------
Net equity transactions ........ 628 631 6,329 174,696 25,610 9,586
-------- -------- -------- -------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 297 1,530 5,956 184,394 36,177 17,746
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 7,656 6,543 -- 179,752 69,959 42,855
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 7,953 8,073 5,956 364,146 106,136 60,601
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
DryStkIx
--------------------------------
2000 1999 1998
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 3,627 2,739 2,456
Mortality and expense charges
(note 3) ......................... (2,979) (1,877) (1,100)
-------- -------- --------
Net investment activity .......... 648 862 1,356
-------- -------- --------
Proceeds from mutual fund
shares sold ...................... 70,981 18,960 27,750
Cost of mutual funds sold ........... (36,654) (9,295) (15,913)
-------- -------- --------
Realized gain (loss) on
investments .................... 34,327 9,665 11,837
Change in unrealized gain (loss)
on investments ................... (38,262) 41,033 43,067
-------- -------- --------
Net gain (loss) on investments ... (3,935) 50,698 54,904
-------- -------- --------
Reinvested capital gains ............ 854 2,126 589
-------- -------- --------
Net change in contract
owners' equity resulting
from operations ............. (2,433) 53,686 56,849
-------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 52,662 26,926 39,514
Transfers between funds ............. 87,680 35,912 --
Surrenders .......................... (1,061) (12,557) (163)
Death benefits (note 4) ............. (28,000) -- --
Policy loans (net of repayments)
(note 5) ......................... (12,880) 4,796 (29,943)
Deductions for surrender charges
(note 2d) ........................ (40) (846) (22)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (18,860) (12,214) (1,115)
-------- -------- --------
Net equity transactions ........ 79,501 42,017 8,271
-------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 77,068 95,703 65,120
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 683,922 437,299 330,407
-------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 760,990 533,002 395,527
======== ======== ========
</TABLE>
8
<PAGE> 9
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
DryVApp DryVGrInc
----------------------------------- -----------------------------------
2000 1999 1998 2000 1999 1998
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 3 12 1 44 36 22
Mortality and expense charges
(note 3) ......................... (534) (856) (5) (58) (31) (2)
--------- --------- --------- --------- --------- ---------
Net investment activity .......... (531) (844) (4) (14) 5 20
--------- --------- --------- --------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 190,021 1,148 8,403 54 238 571
Cost of mutual funds sold ........... (157,662) (892) (7,587) (45) (232) (588)
--------- --------- --------- --------- --------- ---------
Realized gain (loss) on
investments .................... 32,359 256 816 9 6 (17)
Change in unrealized gain (loss)
on investments ................... (34,700) 15,571 1,181 (68) 846 (83)
--------- --------- --------- --------- --------- ---------
Net gain (loss) on investments ... (2,341) 15,827 1,997 (59) 852 (100)
--------- --------- --------- --------- --------- ---------
Reinvested capital gains ............ -- -- 3 4 -- 67
--------- --------- --------- --------- --------- ---------
Net change in contract
owners' equity resulting
from operations ............. (2,872) 14,983 1,996 (69) 857 (13)
--------- --------- --------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 3,163 4,802 (3,197) 1,451 924 5,791
Transfers between funds ............. (188,180) 18,542 -- 4,215 575 --
Surrenders .......................... -- (273) -- -- -- (484)
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (19) 308 -- -- -- --
Deductions for surrender charges
(note 2d) ........................ -- (18) -- -- -- (65)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,721) (1,402) (213) (698) (400) --
--------- --------- --------- --------- --------- ---------
Net equity transactions ........ (186,757) 21,959 (3,410) 4,968 1,099 5,242
--------- --------- --------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY .. (189,629) 36,942 (1,414) 4,899 1,956 5,229
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 248,939 202,644 10,431 11,300 7,357 841
--------- --------- --------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 59,310 239,586 9,017 16,199 9,313 6,070
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
FidVEqIn
-----------------------------------
2000 1999 1998
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 6,475 6,187 6,967
Mortality and expense charges
(note 3) ......................... (1,483) (1,599) (1,694)
--------- --------- ---------
Net investment activity .......... 4,992 4,588 5,273
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 36,605 57,934 5,728
Cost of mutual funds sold ........... (34,120) (45,097) (4,303)
--------- --------- ---------
Realized gain (loss) on
investments .................... 2,485 12,837 1,425
Change in unrealized gain (loss)
on investments ................... (44,200) 17,428 19,474
--------- --------- ---------
Net gain (loss) on investments ... (41,715) 30,265 20,899
--------- --------- ---------
Reinvested capital gains ............ 24,393 13,676 24,794
--------- --------- ---------
Net change in contract
owners' equity resulting
from operations ............. (12,330) 48,529 50,966
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 14,648 17,619 40,894
Transfers between funds ............. (2,630) (41,351) --
Surrenders .......................... (4,101) (11,636) (441)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (6,039) 5,070 (1,029)
Deductions for surrender charges
(note 2d) ........................ (156) (784) (59)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (10,934) (11,516) (7,920)
--------- --------- ---------
Net equity transactions ........ (9,212) (42,598) 31,445
--------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. (21,542) 5,931 82,411
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 395,379 417,611 495,985
--------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD .. 373,837 423,542 578,396
========= ========= =========
</TABLE>
(Continued)
9
<PAGE> 10
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FidVGr FidVHiIn
----------------------------------------- -----------------------------------------
2000 1999 1998 2000 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 1,289 1,154 2,130 6,989 4,513 4,477
Mortality and expense charges
(note 3) ......................... (5,862) (2,867) (1,624) (387) (196) (82)
----------- ----------- ----------- ----------- ----------- -----------
Net investment activity .......... (4,573) (1,713) 506 6,602 4,317 4,395
----------- ----------- ----------- ----------- ----------- -----------
Proceeds from mutual fund
shares sold ...................... 217,090 17,254 16,094 31,761 11,804 10,434
Cost of mutual funds sold ........... (119,123) (12,043) (13,027) (39,861) (12,013) (9,462)
----------- ----------- ----------- ----------- ----------- -----------
Realized gain (loss) on
investments .................... 97,967 5,211 3,067 (8,100) (209) 972
Change in unrealized gain (loss)
on investments ................... (160,589) 18,087 19,351 (4,456) (492) (5,310)
----------- ----------- ----------- ----------- ----------- -----------
Net gain (loss) on investments ... (62,622) 23,298 22,418 (12,556) (701) (4,338)
----------- ----------- ----------- ----------- ----------- -----------
Reinvested capital gains ............ 128,304 72,571 55,712 -- 169 2,845
----------- ----------- ----------- ----------- ----------- -----------
Net change in contract
owners' equity resulting
from operations ............. 61,109 94,156 78,636 (5,954) 3,785 2,902
----------- ----------- ----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 62,885 41,935 31,824 2,446 2,459 168
Transfers between funds ............. 649,734 110,155 -- (3,563) (10,750) --
Surrenders .......................... (93,562) (18,095) (9,551) -- -- (391)
Death benefits (note 4) ............. -- -- -- (24,545) -- --
Policy loans (net of repayments)
(note 5) ......................... (69,950) 405 2,133 (1,906) (822) (433)
Deductions for surrender charges
(note 2d) ........................ (3,552) (1,219) (1,278) -- -- (52)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (34,776) (20,560) (4,848) (2,453) (1,421) (1,783)
----------- ----------- ----------- ----------- ----------- -----------
Net equity transactions ........ 510,779 112,621 18,280 (30,021) (10,534) (2,491)
----------- ----------- ----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 571,888 206,777 96,916 (35,975) (6,749) 411
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 1,149,843 626,463 416,421 110,783 55,873 58,539
----------- ----------- ----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 1,721,731 833,240 513,337 74,808 49,124 58,950
=========== =========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
FidVOvSe
-----------------------------------------
2000 1999 1998
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 630 343 335
Mortality and expense charges
(note 3) ......................... (202) (85) (16)
----------- ----------- -----------
Net investment activity .......... 428 258 319
----------- ----------- -----------
Proceeds from mutual fund
shares sold ...................... 60,683 2,549 757
Cost of mutual funds sold ........... (51,469) (2,252) (634)
----------- ----------- -----------
Realized gain (loss) on
investments .................... 9,214 297 123
Change in unrealized gain (loss)
on investments ................... (15,571) 423 1,298
----------- ----------- -----------
Net gain (loss) on investments ... (6,357) 720 1,421
----------- ----------- -----------
Reinvested capital gains ............ 3,964 554 987
----------- ----------- -----------
Net change in contract
owners' equity resulting
from operations ............. (1,965) 1,532 2,727
----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,115 1,842 1,417
Transfers between funds ............. 12,436 (905) --
Surrenders .......................... -- (2,958) --
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (42) 1,515 (832)
Deductions for surrender charges
(note 2d) ........................ -- (199) --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (966) (620) (324)
----------- ----------- -----------
Net equity transactions ........ 13,543 (1,325) 261
----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 11,578 207 2,988
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 43,240 21,834 17,383
----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 54,818 22,041 20,371
=========== =========== ===========
</TABLE>
10
<PAGE> 11
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FidVAM FidVCon
-------------------------------- --------------------------------
2000 1999 1998 2000 1999 1998
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 3,033 3,167 4,043 2,466 2,438 2,496
Mortality and expense charges
(note 3) ......................... (374) (392) (188) (3,006) (2,146) (1,141)
-------- -------- -------- -------- -------- --------
Net investment activity .......... 2,659 2,775 3,855 (540) 292 1,355
-------- -------- -------- -------- -------- --------
Proceeds from mutual fund
shares sold ...................... 4,120 2,309 19,485 20,536 18,050 18,884
Cost of mutual funds sold ........... (3,845) (2,059) (17,426) (12,805) (9,887) (12,347)
-------- -------- -------- -------- -------- --------
Realized gain (loss) on
investments .................... 275 250 2,059 7,731 8,163 6,537
Change in unrealized gain (loss)
on investments ................... (11,115) (2,099) (6,904) (109,410) 29,988 32,349
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments ... (10,840) (1,849) (4,845) (101,679) 38,151 38,886
-------- -------- -------- -------- -------- --------
Reinvested capital gains ............ 7,145 4,012 12,128 89,503 17,876 18,366
-------- -------- -------- -------- -------- --------
Net change in contract
owners' equity resulting
from operations ............. (1,036) 4,938 11,138 (12,716) 56,319 58,607
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,442 790 10,486 22,055 19,635 5,913
Transfers between funds ............. 541 7,158 -- 157,883 60,672 --
Surrenders .......................... -- -- -- (3,957) (3,297) (551)
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (2,264) (190) (17,821) (15,117) (11,328) (3,470)
Deductions for surrender charges
(note 2d) ........................ -- -- -- (150) (222) (74)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,758) (2,275) (1,771) (11,349) (7,268) (895)
-------- -------- -------- -------- -------- --------
Net equity transactions ........ (1,039) 5,483 (9,106) 149,365 58,192 923
-------- -------- -------- -------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. (2,075) 10,421 2,032 136,649 114,511 59,530
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 94,320 95,340 121,091 676,082 488,648 352,512
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 92,245 105,761 123,123 812,731 603,159 412,042
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
FidVGrOp
--------------------------------
2000 1999 1998
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 157 85 9
Mortality and expense charges
(note 3) ......................... (65) (35) --
-------- -------- --------
Net investment activity .......... 92 50 9
-------- -------- --------
Proceeds from mutual fund
shares sold ...................... 7,158 6,533 --
Cost of mutual funds sold ........... (7,764) (5,907) --
-------- -------- --------
Realized gain (loss) on
investments .................... (606) 626 --
Change in unrealized gain (loss)
on investments ................... (702) (136) 144
-------- -------- --------
Net gain (loss) on investments ... (1,308) 490 144
-------- -------- --------
Reinvested capital gains ............ 798 160 33
-------- -------- --------
Net change in contract
owners' equity resulting
from operations ............. (418) 700 186
-------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,383 1,576 2,985
Transfers between funds ............. 8,231 4,979 --
Surrenders .......................... (1,990) (3,125) --
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (479) 665 --
Deductions for surrender charges
(note 2d) ........................ (76) (210) --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (533) (605) --
-------- -------- --------
Net equity transactions ........ 7,536 3,280 2,985
-------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 7,118 3,980 3,171
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 12,892 8,074 --
-------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 20,010 12,054 3,171
======== ======== ========
</TABLE>
(Continued)
11
<PAGE> 12
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
MSEmMkt NSATCapAp
-------------------------------------- --------------------------------------
2000 1999 1998 2000 1999 1998
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ -- -- -- 12,188 23,072 30,957
Mortality and expense charges
(note 3) ......................... (43) (1) -- (28,075) (31,615) (28,272)
---------- ---------- ---------- ---------- ---------- ----------
Net investment activity .......... (43) (1) -- (15,887) (8,543) 2,685
---------- ---------- ---------- ---------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... 54,414 -- -- 697,354 189,807 223,261
Cost of mutual funds sold ........... (53,933) -- -- (319,187) (74,473) (97,042)
---------- ---------- ---------- ---------- ---------- ----------
Realized gain (loss) on
investments .................... 481 -- -- 378,167 115,334 126,219
Change in unrealized gain (loss)
on investments ................... 190 7 -- (367,077) 813,758 1,043,364
---------- ---------- ---------- ---------- ---------- ----------
Net gain (loss) on investments ... 671 7 -- 11,090 929,092 1,169,583
---------- ---------- ---------- ---------- ---------- ----------
Reinvested capital gains ............ -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations ............. 628 6 -- (4,797) 920,549 1,172,268
---------- ---------- ---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 59 12 -- 359,334 400,602 351,333
Transfers between funds ............. 7,914 576 -- (490,869) 63,268 --
Surrenders .......................... -- -- -- (162,179) (127,917) (90,711)
Death benefits (note 4) ............. -- -- -- (23,706) (9,070) (52,012)
Policy loans (net of repayments)
(note 5) ......................... -- -- -- (49,652) (92,436) (105,770)
Deductions for surrender charges
(note 2d) ........................ -- -- -- (6,157) (8,617) (12,134)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (138) (4) -- (204,317) (216,756) (66,598)
---------- ---------- ---------- ---------- ---------- ----------
Net equity transactions ........ 7,835 584 -- (577,546) 9,074 24,108
---------- ---------- ---------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 8,463 590 -- (582,343) 929,623 1,196,376
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 717 -- -- 7,770,383 7,989,325 6,211,213
---------- ---------- ---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 9,180 590 -- 7,188,040 8,918,948 7,407,589
========== ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
NSATGvtBd
--------------------------------------
2000 1999 1998
---------- ---------- ----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 48,470 50,067 50,984
Mortality and expense charges
(note 3) ......................... (6,588) (7,373) (7,216)
---------- ---------- ----------
Net investment activity .......... 41,882 42,694 43,768
---------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... 232,007 139,827 125,501
Cost of mutual funds sold ........... (237,891) (128,713) (117,427)
---------- ---------- ----------
Realized gain (loss) on
investments .................... (5,884) 11,114 8,074
Change in unrealized gain (loss)
on investments ................... 22,108 (103,673) 9,402
---------- ---------- ----------
Net gain (loss) on investments ... 16,224 (92,559) 17,476
---------- ---------- ----------
Reinvested capital gains ............ -- -- --
---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations ............. 58,106 (49,865) 61,244
---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 95,207 110,956 358,741
Transfers between funds ............. (95,257) (72,672) --
Surrenders .......................... (111,668) (47,300) (28,681)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (12,504) (6,094) (3,251)
Deductions for surrender charges
(note 2d) ........................ (4,239) (3,187) (3,837)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (67,812) (71,143) (204,130)
---------- ---------- ----------
Net equity transactions ........ (196,273) (89,440) 118,842
---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. (138,167) (139,305) 180,086
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 1,700,303 1,977,998 1,636,721
---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 1,562,136 1,838,693 1,816,807
========== ========== ==========
</TABLE>
12
<PAGE> 13
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NSATMMkt NSATSmCapV
----------------------------------- ----------------------------------
2000 1999 1998 2000 1999 1998
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 15,346 2,386 8,974 -- -- --
Mortality and expense charges
(note 3) ......................... (2,202) (378) (926) (156) -- --
--------- --------- --------- --------- --------- ---------
Net investment activity .......... 13,144 2,008 8,048 (156) -- --
--------- --------- --------- --------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 106,338 315,050 33,331 8,025 -- --
Cost of mutual funds sold ........... (106,338) (315,050) (33,331) (7,799) -- --
--------- --------- --------- --------- --------- ---------
Realized gain (loss) on
investments .................... -- -- -- 226 -- --
Change in unrealized gain (loss)
on investments ................... -- -- -- 3,532 -- --
--------- --------- --------- --------- --------- ---------
Net gain (loss) on investments ... -- -- -- 3,758 -- --
--------- --------- --------- --------- --------- ---------
Reinvested capital gains ............ -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Net change in contract
owners' equity resulting
from operations ............. 13,144 2,008 8,048 3,602 -- --
--------- --------- --------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 4,518 13,606 24,303 1,116 -- --
Transfers between funds ............. 46,853 (6,777) -- 14,068 -- --
Surrenders .......................... (14,950) (227,277) (2,637) (3,253) -- --
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (222) (8,808) (292) (115) -- --
Deductions for surrender charges
(note 2d) ........................ (567) (15,310) (353) (124) -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (6,123) (5,226) (46,468) (463) -- --
--------- --------- --------- --------- --------- ---------
Net equity transactions ........ 29,509 (249,792) (25,447) 11,229 -- --
--------- --------- --------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 42,653 (247,784) (17,399) 14,831 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 538,077 325,058 352,121 33,948 -- --
--------- --------- --------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 580,730 77,274 334,722 48,779 -- --
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
NSATSmCo
-----------------------------------
2000 1999 1998
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 50 -- --
Mortality and expense charges
(note 3) ......................... (638) (127) (121)
--------- --------- ---------
Net investment activity .......... (588) (127) (121)
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 40,119 13,971 2,308
Cost of mutual funds sold ........... (26,157) (12,698) (1,819)
--------- --------- ---------
Realized gain (loss) on
investments .................... 13,962 1,273 489
Change in unrealized gain (loss)
on investments ................... (5,894) 458 3,342
--------- --------- ---------
Net gain (loss) on investments ... 8,068 1,731 3,831
--------- --------- ---------
Reinvested capital gains ............ -- -- --
--------- --------- ---------
Net change in contract
owners' equity resulting
from operations ............. 7,480 1,604 3,710
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 8,552 3,859 6,644
Transfers between funds ............. 130,238 (12,805) --
Surrenders .......................... (17,143) -- (896)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (17,887) (941) (992)
Deductions for surrender charges
(note 2d) ........................ (651) -- (120)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (3,689) (1,339) (3)
--------- --------- ---------
Net equity transactions ........ 99,420 (11,226) 4,633
--------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 106,900 (9,622) 8,343
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 70,784 42,336 60,766
--------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD .. 177,684 32,714 69,109
========= ========= =========
</TABLE>
(Continued)
13
<PAGE> 14
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NSATTotRtn NBAMTBal
-------------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 46,518 75,418 97,584 30,077 23,703 33,067
Mortality and expense charges
(note 3) ......................... (69,447) (75,142) (74,849) (7,122) (5,432) (5,933)
------------ ------------ ------------ ------------ ------------ ------------
Net investment activity .......... (22,929) 276 22,735 22,955 18,271 27,134
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 2,143,880 744,939 489,854 132,464 77,456 97,691
Cost of mutual funds sold ........... (1,178,327) (410,369) (274,457) (100,486) (71,486) (95,100)
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss) on
investments .................... 965,553 334,570 215,397 31,978 5,970 2,591
Change in unrealized gain (loss)
on investments ................... (504,969) 1,577,046 2,113,031 (129,121) (35,301) (120,363)
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... 460,584 1,911,616 2,328,428 (97,143) (29,331) (117,772)
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ............ -- 8,697 -- 238,178 35,116 232,254
------------ ------------ ------------ ------------ ------------ ------------
Net change in contract
owners' equity resulting
from operations ............. 437,655 1,920,589 2,351,163 163,990 24,056 141,616
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 864,813 1,009,437 1,324,807 75,460 85,318 49,593
Transfers between funds ............. (1,392,637) (114,365) -- (27,070) (30,615) --
Surrenders .......................... (495,891) (427,994) (243,041) (122,344) (39,263) (19,285)
Death benefits (note 4) ............. (164,219) (8,553) (62,497) -- -- --
Policy loans (net of repayments)
(note 5) ......................... (165,760) (263,204) (274,872) 21,300 (10,140) (24,903)
Deductions for surrender charges
(note 2d) ........................ (18,825) (28,831) (32,511) (4,644) (2,645) (2,580)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (556,138) (572,448) (640,496) (51,003) (47,291) (22,072)
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ........ (1,928,657) (405,958) 71,390 (108,301) (44,636) (19,247)
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. (1,491,002) 1,514,631 2,422,553 55,689 (20,580) 122,369
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 18,714,700 18,984,736 16,284,321 1,721,608 1,441,951 1,389,720
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 17,223,698 20,499,367 18,706,874 1,777,297 1,421,371 1,512,089
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NBAMTGro
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ -- -- --
Mortality and expense charges
(note 3) ......................... (1,028) (229) (96)
------------ ------------ ------------
Net investment activity .......... (1,028) (229) (96)
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 34,143 10,232 6,551
Cost of mutual funds sold ........... (22,066) (10,231) (5,652)
------------ ------------ ------------
Realized gain (loss) on
investments .................... 12,077 1 899
Change in unrealized gain (loss)
on investments ................... (10,297) (1,529) (7,101)
------------ ------------ ------------
Net gain (loss) on investments ... 1,780 (1,528) (6,202)
------------ ------------ ------------
Reinvested capital gains ............ 19,526 3,161 15,182
------------ ------------ ------------
Net change in contract
owners' equity resulting
from operations ............. 20,278 1,404 8,884
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 9,129 5,064 6,436
Transfers between funds ............. 207,369 (4,988) --
Surrenders .......................... (6,182) (2,995) (9,307)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (23,740) (205) 6,583
Deductions for surrender charges
(note 2d) ........................ (235) (202) (1,245)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (6,560) (2,323) (1,891)
------------ ------------ ------------
Net equity transactions ........ 179,781 (5,649) 576
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 200,059 (4,245) 9,460
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 105,211 62,482 57,881
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 305,270 58,237 67,341
============ ============ ============
</TABLE>
14
<PAGE> 15
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTGuard NBAMTLMat
-------------------------------- --------------------------------
2000 1999 1998 2000 1999 1998
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 83 -- -- 291 225 645
Mortality and expense charges
(note 3) ......................... (48) (3) -- (18) (16) (5)
-------- -------- -------- -------- -------- --------
Net investment activity .......... 35 (3) -- 273 209 640
-------- -------- -------- -------- -------- --------
Proceeds from mutual fund
shares sold ...................... 1,450 536 -- 284 8,370 397
Cost of mutual funds sold ........... (1,301) (505) -- (320) (8,382) (415)
-------- -------- -------- -------- -------- --------
Realized gain (loss) on
investments .................... 149 31 -- (36) (12) (18)
Change in unrealized gain (loss)
on investments ................... 1,275 86 -- (165) (172) (372)
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments ... 1,424 117 -- (201) (184) (390)
-------- -------- -------- -------- -------- --------
Reinvested capital gains ............ -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net change in contract
owners' equity resulting
from operations ............. 1,459 114 -- 72 25 250
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 529 88 -- 1,032 750 558
Transfers between funds ............. 10,871 533 -- -- -- --
Surrenders .......................... -- -- -- -- -- --
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- -- 59 (7,954) 3
Deductions for surrender charges
(note 2d) ........................ -- -- -- -- -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (263) (18) -- (311) (343) --
-------- -------- -------- -------- -------- --------
Net equity transactions ........ 11,137 603 -- 780 (7,547) 561
-------- -------- -------- -------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 12,596 717 -- 852 (7,522) 811
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 1,306 512 -- 4,054 11,220 10,016
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 13,902 1,229 -- 4,906 3,698 10,827
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
NBAMTPart
--------------------------------
2000 1999 1998
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 895 1,540 542
Mortality and expense charges
(note 3) ......................... (464) (528) (345)
-------- -------- --------
Net investment activity .......... 431 1,012 197
-------- -------- --------
Proceeds from mutual fund
shares sold ...................... 19,013 26,687 21,721
Cost of mutual funds sold ........... (20,094) (22,628) (13,410)
-------- -------- --------
Realized gain (loss) on
investments .................... (1,081) 4,059 8,311
Change in unrealized gain (loss)
on investments ................... (20,032) 9,005 (17,571)
-------- -------- --------
Net gain (loss) on investments ... (21,113) 13,064 (9,260)
-------- -------- --------
Reinvested capital gains ............ 19,026 2,679 17,062
-------- -------- --------
Net change in contract
owners' equity resulting
from operations ............. (1,656) 16,755 7,999
-------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 5,534 12,403 44,811
Transfers between funds ............. (14,085) (12,877) --
Surrenders .......................... (499) (83) (8,728)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (2,640) 4,863 (12,815)
Deductions for surrender charges
(note 2d) ........................ (19) (6) (1,168)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (2,606) (3,170) (1,343)
-------- -------- --------
Net equity transactions ........ (14,315) 1,130 20,757
-------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. (15,971) 17,885 28,756
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 128,664 129,095 133,951
-------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 112,693 146,980 162,707
======== ======== ========
</TABLE>
(Continued)
15
<PAGE> 16
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
OppBdVA OppGlSecVA
-------------------------------- --------------------------------
2000 1999 1998 2000 1999 1998
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 395 538 70 591 715 1,229
Mortality and expense charges
(note 3) ......................... (19) (45) (1) (802) (244) (65)
-------- -------- -------- -------- -------- --------
Net investment activity .......... 376 493 69 (211) 471 1,164
-------- -------- -------- -------- -------- --------
Proceeds from mutual fund
shares sold ...................... 359 698 433 135,059 11,857 450
Cost of mutual funds sold ........... (400) (685) (423) (87,326) (8,633) (319)
-------- -------- -------- -------- -------- --------
Realized gain (loss) on
investments .................... (41) 13 10 47,733 3,224 131
Change in unrealized gain (loss)
on investments ................... (260) (799) 15 (57,639) 2,110 1,009
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments ... (301) (786) 25 (9,906) 5,334 1,140
-------- -------- -------- -------- -------- --------
Reinvested capital gains ............ -- 52 63 33,053 2,005 4,626
-------- -------- -------- -------- -------- --------
Net change in contract
owners' equity resulting
from operations ............. 75 (241) 157 22,936 7,810 6,930
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 636 1,347 14 8,286 3,943 4,055
Transfers between funds ............. -- -- -- 73,582 5 --
Surrenders .......................... -- -- -- (72,944) (3,037) --
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (170) -- (275) (619) (7,732) --
Deductions for surrender charges
(note 2d) ........................ -- -- -- (2,769) (205) --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (308) (932) -- (3,357) (1,509) (775)
-------- -------- -------- -------- -------- --------
Net equity transactions ........ 158 415 (261) 2,179 (8,535) 3,280
-------- -------- -------- -------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 233 174 (104) 25,115 (725) 10,210
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 4,652 11,242 4,084 189,931 68,885 56,530
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 4,885 11,416 3,980 215,046 68,160 66,740
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
OppCapApVA
--------------------------------
2000 1999 1998
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 213 45 23
Mortality and expense charges
(note 3) ......................... (842) (61) (1)
-------- -------- --------
Net investment activity .......... (629) (16) 22
-------- -------- --------
Proceeds from mutual fund
shares sold ...................... 10,616 294 --
Cost of mutual funds sold ........... (7,226) (247) --
-------- -------- --------
Realized gain (loss) on
investments .................... 3,390 47 --
Change in unrealized gain (loss)
on investments ................... 1,018 1,871 238
-------- -------- --------
Net gain (loss) on investments ... 4,408 1,918 238
-------- -------- --------
Reinvested capital gains ............ 11,366 490 280
-------- -------- --------
Net change in contract
owners' equity resulting
from operations ............. 15,145 2,392 540
-------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 11,267 1,258 3,479
Transfers between funds ............. 220,611 10,818 --
Surrenders .......................... (935) -- --
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (16,363) (68) --
Deductions for surrender charges
(note 2d) ........................ (35) -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (4,916) (529) --
-------- -------- --------
Net equity transactions ........ 209,629 11,479 3,479
-------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY .. 224,774 13,871 4,019
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 85,955 9,566 502
-------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 310,729 23,437 4,521
======== ======== ========
</TABLE>
16
<PAGE> 17
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
OppMltStVA StOpp2
-------------------------------- --------------------------------
2000 1999 1998 2000 1999 1998
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 521 317 74 -- -- 44
Mortality and expense charges
(note 3) ......................... (45) (37) (1) (688) (560) (301)
-------- -------- -------- -------- -------- --------
Net investment activity .......... 476 280 73 (688) (560) (257)
-------- -------- -------- -------- -------- --------
Proceeds from mutual fund
shares sold ...................... 1,145 17 -- 11,172 6,651 8,255
Cost of mutual funds sold ........... (991) (14) -- (8,259) (5,062) (5,887)
-------- -------- -------- -------- -------- --------
Realized gain (loss) on
investments .................... 154 3 -- 2,913 1,589 2,368
Change in unrealized gain (loss)
on investments ................... (693) (2) 49 3,778 8,957 (2,239)
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments ... (539) 1 49 6,691 10,546 129
-------- -------- -------- -------- -------- --------
Reinvested capital gains ............ 757 458 431 -- 15,628 16,130
-------- -------- -------- -------- -------- --------
Net change in contract
owners' equity resulting
from operations ............. 694 739 553 6,003 25,614 16,002
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 794 741 237 13,706 8,527 15,531
Transfers between funds ............. (747) -- -- 3,169 (5,286) --
Surrenders .......................... -- -- -- (1,254) (280) (3,409)
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (202) -- -- (5,780) (534) (4,423)
Deductions for surrender charges
(note 2d) ........................ -- -- -- (48) (19) (456)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (337) (320) -- (4,870) (4,576) (526)
-------- -------- -------- -------- -------- --------
Net equity transactions ........ (492) 421 237 4,923 (2,168) 6,717
-------- -------- -------- -------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 202 1,160 790 10,926 23,446 22,719
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 10,899 8,942 7,722 164,139 135,650 115,087
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 11,101 10,102 8,512 175,065 159,096 137,806
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
StDisc2
--------------------------------
2000 1999 1998
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ -- -- --
Mortality and expense charges
(note 3) ......................... (113) (85) (37)
-------- -------- --------
Net investment activity .......... (113) (85) (37)
-------- -------- --------
Proceeds from mutual fund
shares sold ...................... 2,733 4,206 11,620
Cost of mutual funds sold ........... (2,802) (4,681) (10,017)
-------- -------- --------
Realized gain (loss) on
investments .................... (69) (475) 1,603
Change in unrealized gain (loss)
on investments ................... 3,132 (3,830) 259
-------- -------- --------
Net gain (loss) on investments ... 3,063 (4,305) 1,862
-------- -------- --------
Reinvested capital gains ............ -- 3,517 367
-------- -------- --------
Net change in contract
owners' equity resulting
from operations ............. 2,950 (873) 2,192
-------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,959 1,206 (4,079)
Transfers between funds ............. (56) 3,108 --
Surrenders .......................... -- -- (1,612)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (2,294) 1,251 (239)
Deductions for surrender charges
(note 2d) ........................ -- -- (216)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (653) (631) (39)
-------- -------- --------
Net equity transactions ........ (44) 4,934 (6,185)
-------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 2,906 4,061 (3,993)
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 26,438 18,874 32,100
-------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 29,344 22,935 28,107
======== ======== ========
</TABLE>
(Continued)
17
<PAGE> 18
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
StIntStk2 VEWwBd
----------------------------------- -----------------------------------
2000 1999 1998 2000 1999 1998
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ -- 29 148 80 68 15
Mortality and expense charges
(note 3) ......................... (297) (29) (8) (7) (7) --
--------- --------- --------- --------- --------- ---------
Net investment activity .......... (297) -- 140 73 61 15
--------- --------- --------- --------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 155,726 6,309 166 62 12 124
Cost of mutual funds sold ........... (119,622) (7,881) (187) (67) (11) (124)
--------- --------- --------- --------- --------- ---------
Realized gain (loss) on
investments .................... 36,104 (1,572) (21) (5) 1 --
Change in unrealized gain (loss)
on investments ................... (39,702) 2,468 688 (77) (223) 39
--------- --------- --------- --------- --------- ---------
Net gain (loss) on investments ... (3,598) 896 667 (82) (222) 39
--------- --------- --------- --------- --------- ---------
Reinvested capital gains ............ -- -- -- -- 30 --
--------- --------- --------- --------- --------- ---------
Net change in contract
owners' equity resulting
from operations ............. (3,895) 896 807 (9) (131) 54
--------- --------- --------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,167 757 1,329 205 186 (21)
Transfers between funds ............. 4,934 -- -- -- -- --
Surrenders .......................... (73,859) -- -- -- -- --
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (1,079) (5,995) -- -- -- --
Deductions for surrender charges
(note 2d) ........................ (2,804) -- -- -- -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,171) (292) (180) (150) (158) --
--------- --------- --------- --------- --------- ---------
Net equity transactions ........ (71,812) (5,530) 1,149 55 28 (21)
--------- --------- --------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. (75,707) (4,634) 1,956 46 (103) 33
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 102,614 12,426 11,856 1,680 1,776 1,602
--------- --------- --------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 26,907 7,792 13,812 1,726 1,673 1,635
========= ========= ========= ========= ========= =========
<CAPTION>
VEWwEmgMkt
-----------------------------------
2000 1999 1998
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ -- -- 48
Mortality and expense charges
(note 3) ......................... (147) (21) --
--------- --------- ---------
Net investment activity .......... (147) (21) 48
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 21,200 1,572 2,898
Cost of mutual funds sold ........... (16,246) (2,316) (4,179)
--------- --------- ---------
Realized gain (loss) on
investments .................... 4,954 (744) (1,281)
Change in unrealized gain (loss)
on investments ................... (14,607) 3,038 (422)
--------- --------- ---------
Net gain (loss) on investments ... (9,653) 2,294 (1,703)
--------- --------- ---------
Reinvested capital gains ............ -- -- 43
--------- --------- ---------
Net change in contract
owners' equity resulting
from operations ............. (9,800) 2,273 (1,612)
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,034 239 (2,573)
Transfers between funds ............. 34,364 2,222 --
Surrenders .......................... -- -- (278)
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (16) (187) --
Deductions for surrender charges
(note 2d) ........................ -- -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,120) (123) --
--------- --------- ---------
Net equity transactions ........ 35,262 2,151 (2,851)
--------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 25,462 4,424 (4,463)
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 25,853 4,164 8,768
--------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 51,315 8,588 4,305
========= ========= =========
</TABLE>
18
<PAGE> 19
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
VEWwHrdAst VKMSRESec
----------------------------- -----------------------------
2000 1999 1998 2000 1999 1998
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 63 83 51 614 1,317 38
Mortality and expense charges
(note 3) ......................... (23) (23) (6) (53) (74) (32)
------- ------- ------- ------- ------- -------
Net investment activity .......... 40 60 45 561 1,243 6
------- ------- ------- ------- ------- -------
Proceeds from mutual fund
shares sold ...................... 351 1,282 8,582 1,628 5,353 2,639
Cost of mutual funds sold ........... (512) (2,289) (9,427) (2,032) (6,720) (2,554)
------- ------- ------- ------- ------- -------
Realized gain (loss) on
investments .................... (161) (1,007) (845) (404) (1,367) 85
Change in unrealized gain (loss)
on investments ................... 324 1,891 (1,829) 1,538 1,537 (1,972)
------- ------- ------- ------- ------- -------
Net gain (loss) on investments ... 163 884 (2,674) 1,134 170 (1,887)
------- ------- ------- ------- ------- -------
Reinvested capital gains ............ -- -- 1,261 -- -- 378
------- ------- ------- ------- ------- -------
Net change in contract
owners' equity resulting
from operations ............. 203 944 (1,368) 1,695 1,413 (1,503)
------- ------- ------- ------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 587 659 (6,404) 1,284 1,967 13,719
Transfers between funds ............. -- (698) -- -- (5,001) --
Surrenders .......................... (55) -- (229) -- -- (2,229)
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (211) (594) (1,486) (1,330) (292) (89)
Deductions for surrender charges
(note 2d) ........................ (2) -- (31) -- -- (298)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (367) (432) -- (416) (612) --
------- ------- ------- ------- ------- -------
Net equity transactions ........ (48) (1,065) (8,150) (462) (3,938) 11,103
------- ------- ------- ------- ------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 155 (121) (9,518) 1,233 (2,525) 9,600
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 5,688 5,472 16,122 13,058 20,855 20,959
------- ------- ------- ------- ------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 5,843 5,351 6,604 14,291 18,330 30,559
======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
WPIntEq
-----------------------------
2000 1999 1998
------- ------- -------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ -- -- --
Mortality and expense charges
(note 3) ......................... (187) (84) (34)
------- ------- -------
Net investment activity .......... (187) (84) (34)
------- ------- -------
Proceeds from mutual fund
shares sold ...................... 9,824 7,287 1,443
Cost of mutual funds sold ........... (8,178) (7,607) (1,592)
------- ------- -------
Realized gain (loss) on
investments .................... 1,646 (320) (149)
Change in unrealized gain (loss)
on investments ................... (6,837) 1,811 3,253
------- ------- -------
Net gain (loss) on investments ... (5,191) 1,491 3,104
------- ------- -------
Reinvested capital gains ............ -- -- --
------- ------- -------
Net change in contract
owners' equity resulting
from operations ............. (5,378) 1,407 3,070
------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 3,758 4,084 1,799
Transfers between funds ............. 9,921 -- --
Surrenders .......................... (572) -- --
Death benefits (note 4) ............. -- -- --
Policy loans (net of repayments)
(note 5) ......................... (1,855) (7,088) --
Deductions for surrender charges
(note 2d) ........................ (22) -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,417) (893) --
------- ------- -------
Net equity transactions ........ 9,813 (3,897) 1,799
------- ------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 4,435 (2,490) 4,869
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 39,623 26,587 24,083
------- ------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 44,058 24,097 28,952
======= ======= =======
</TABLE>
(Continued)
19
<PAGE> 20
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
WPGlPVenCp WPSmCoGr
-------------------------------- --------------------------------
2000 1999 1998 2000 1999 1998
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 0 0 0 0 0 0
Mortality and expense charges
(note 3) ......................... (24) (4) 0 (601) (104) (79)
-------- -------- -------- -------- -------- --------
Net investment activity .......... (24) (4) 0 (601) (104) (79)
-------- -------- -------- -------- -------- --------
Proceeds from mutual fund
shares sold ...................... 102 1 0 17,716 16,866 16,915
Cost of mutual funds sold ........... (52) (1) 0 (9,068) (15,533) (12,161)
-------- -------- -------- -------- -------- --------
Realized gain (loss) on
investments .................... 50 0 0 8,648 1,333 4,754
Change in unrealized gain (loss)
on investments ................... (819) 127 156 (23,122) (522) (2,291)
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments ... (769) 127 156 (14,474) 811 2,463
-------- -------- -------- -------- -------- --------
Reinvested capital gains ............ 0 0 0 0 0 0
-------- -------- -------- -------- -------- --------
Net change in contract
owners' equity resulting
from operations ............. (793) 123 156 (15,075) 707 2,384
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 227 56 875 4,656 1,607 (15,177)
Transfers between funds ............. 18,781 0 0 142,248 (12,646) 0
Surrenders .......................... 0 0 0 (653) 0 0
Death benefits (note 4) ............. 0 0 0 0 0 0
Policy loans (net of repayments)
(note 5) ......................... 0 0 0 (14,138) (3,254) (53)
Deductions for surrender charges
(note 2d) ........................ 0 0 0 (25) 0 0
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (134) (18) 0 (4,100) (1,140) (1)
-------- -------- -------- -------- -------- --------
Net equity transactions ........ 18,874 38 875 127,988 (15,433) (15,231)
-------- -------- -------- -------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 18,081 161 1,031 112,913 (14,726) (12,847)
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 1,704 978 0 52,358 39,373 54,327
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 19,785 1,139 1,031 165,271 24,647 41,480
======== ======== ======== ======== ======== ========
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 21
NATIONWIDE VLI SEPARATE ACCOUNT-3
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VLI Separate Account-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.
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. (DrySRGr)
Dreyfus Stock Index Fund (DryStkIx)
Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Appreciation Portfolio (DryVApp)
Dreyfus VIF - Growth and Income Portfolio (DryVGrInc)
Portfolios of the Fidelity Variable Insurance Products Fund (Fidelity
VIP);
Fidelity VIP - Equity-Income Portfolio (FidVEqIn)
Fidelity VIP - Growth Portfolio (FidVGr)
Fidelity VIP - High Income Portfolio (FidVHiIn)
Fidelity VIP - Overseas Portfolio (FidVOvSe)
Portfolios of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Asset Manager Portfolio (FidVAM)
Fidelity VIP-II - Contrafund Portfolio (FidVCon)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio (FidVGrOp)
Portfolio of the Morgan Stanley Universal Funds, Inc. (Morgan Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
(Continued)
21
<PAGE> 22
NATIONWIDE VLI SEPARATE ACCOUNT-3
NOTES TO FINANCIAL STATEMENTS, CONTINUED
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 (NSATMMkt)
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
Nationwide SAT - Small Company Fund (NSATSmCo)
Nationwide SAT - Total Return Fund (NSATTotRtn)
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 Bond Fund/VA (OppBdVA)
Oppenheimer Global Securities Fund/VA (OppGlSecVA)
Oppenheimer Capital Appreciation Fund/VA (OppCapApVA)
Oppenheimer Multiple Strategies Fund/VA (OppMltStVA)
Strong Opportunity Fund II, Inc. (StOpp2)
Funds of the Strong Variable Insurance Funds, Inc. (Strong VIF);
Strong VIF - Strong Discovery Fund II (StDisc2)
Strong VIF - Strong International Stock Fund II (StIntStk2)
Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT);
Van Eck WIT - Worldwide Bond Fund (VEWwBd)
Van Eck WIT - Worldwide Emerging Markets Fund (VEWwEmgMkt)
Van Eck WIT - Worldwide Hard Assets Fund (VEWwHrdAst)
Portfolio of the Van Kampen Life Investment Trust (Van Kampen LIT);
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio
(VKMSRESec)
Portfolios of the Warburg Pincus Trust;
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
Warburg Pincus Trust - Global Post - Venture Capital Portfolio
(WPGlPVenCp)
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
At June 30, 2000, contract owners have invested in all of the above
funds. The contract owners' equity is affected by the investment
results of each fund, equity transactions by contract owners and
certain 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.
22
<PAGE> 23
Some of the underlying mutual funds have been established by investment
advisers which manage publicly traded mutual funds having similar names
and investment objectives. While some of the underlying mutual funds
may be similar to, and may in fact be modeled after, publicly traded
mutual funds, the underlying mutual funds are not otherwise directly
related to any publicly traded mutual fund. Consequently, the
investment performance of publicly traded mutual funds and any
corresponding underlying mutual funds may differ substantially.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 2000. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company, which is taxed as a life insurance company
under the provisions of the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(2) POLICY 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 by
liquidating units. The amount of the charge is based upon age, sex,
rate class and net amount at risk (death benefit less total contract
value).
(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. These
charges are assessed against each contract by liquidating units.
(Continued)
23
<PAGE> 24
NATIONWIDE VLI SEPARATE ACCOUNT-3
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(d) Surrender Charges
Policy surrenders result in a redemption of the contract value from the
Account and payment of the surrender proceeds to the contract owner or
designee. The surrender proceeds consist of the contract value, less
any outstanding policy loans, and less a surrender charge, if
applicable. The amount of the charge is based upon a specified
percentage of the initial surrender charge which varies by issue age,
sex and rate class. For flexible premium contracts, the charge is 100%
of the initial surrender charge in the first year, declining to 30% of
the initial surrender charge in the ninth year.
No surrender charge is assessed on any contract surrendered after the
ninth year.
The Company may waive the surrender charge for certain contracts in
which the sales expenses normally associated with the distribution of a
contract are not incurred. No charges were deducted from the initial
funding, or from earnings thereon.
(3) ASSET CHARGES
The Company deducts a charge equal to an annual rate of .80%, with certain
exceptions, to cover mortality and expense risk charges related to
operations. On each policy anniversary beginning with the 10th, this charge
is reduced to 0.50% on an annual basis provided that the cash surrender
value of the contract is $25,000 or more on such anniversary. This charge
is assessed through the daily unit value calculation.
(4) DEATH BENEFITS
Death benefit proceeds result in a redemption of the contract value from
the Account and payment of those proceeds, less any outstanding policy
loans (and policy charges), to the legal beneficiary. For last survivor
flexible premium contracts, the proceeds are payable on the death of the
last surviving insured. In the event that the guaranteed death benefit
exceeds the contract value on the date of death, the excess is paid by the
Company's general account.
(5) POLICY LOANS (NET OF REPAYMENTS)
Contract provisions allow contract owners to borrow 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> 25
(7) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 2000.
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN*
-------- ---------- ----------
<S> <C> <C> <C> <C>
American Century VP -
American Century VP Advantage .................. 20,736 $ 21.834787 $ 452,766 4%
American Century VP -
American Century VP Balanced ................... 983 21.269538 20,908 1%
American Century VP -
American Century VP Capital Appreciation ....... 7,332 27.248563 199,786 17%
American Century VP -
American Century VP Income & Growth ............ 2,946 12.214588 35,984 (4)%
American Century VP -
American Century VP International .............. 3,518 25.117659 88,364 (6)%
American Century VP -
American Century VP Value ...................... 641 12.407385 7,953 (4)%
The Dreyfus Socially Responsible
Growth Fund, Inc. .............................. 9,754 37.333022 364,146 2%
Dreyfus Stock Index Fund ........................ 22,858 33.292046 760,990 (1)%
Dreyfus VIF - Appreciation Portfolio ............ 3,970 14.939512 59,310 2%
Dreyfus VIF - Growth and Income Portfolio ....... 1,108 14.620238 16,199 (1)%
Fidelity VIP - Equity-Income Portfolio .......... 10,314 36.245575 373,837 (3)%
Fidelity VIP - Growth Portfolio ................. 29,420 58.522458 1,721,731 5%
Fidelity VIP - High Income Portfolio ............ 2,815 26.574602 74,808 (5)%
Fidelity VIP - Overseas Portfolio ............... 2,160 25.378931 54,818 (5)%
Fidelity VIP-II - Asset Manager Portfolio ....... 3,409 27.059327 92,245 (1)%
Fidelity VIP-II - Contrafund Portfolio .......... 31,626 25.698199 812,731 (2)%
Fidelity VIP-III - Growth Opportunities Portfolio 1,488 13.447601 20,010 (4)%
Morgan Stanley -
Emerging Markets Debt Portfolio ................ 965 9.513376 9,180 6%
Nationwide SAT - Capital Appreciation Fund ...... 218,628 32.877948 7,188,040 0%
Nationwide SAT - Government Bond Fund ........... 86,067 18.150229 1,562,136 4%
Nationwide SAT - Money Market Fund .............. 40,934 14.186996 580,730 2%
Nationwide SAT - Small Cap Value Fund ........... 4,065 11.999870 48,779 11%
Nationwide SAT - Small Company Fund ............. 7,147 24.861403 177,684 7%
Nationwide SAT - Total Return Fund .............. 476,837 36.120724 17,223,698 3%
</TABLE>
(Continued)
25
<PAGE> 26
NATIONWIDE VLI SEPARATE ACCOUNT-3
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
-------- ---------- ----------
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Balanced Portfolio ............................. 61,671 28.819009 1,777,297 10%
Neuberger & Berman AMT -
Growth Portfolio ............................... 7,093 43.038224 305,270 14%
Neuberger & Berman AMT -
Guardian Portfolio ............................. 1,267 10.972407 13,902 3%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio ................ 323 15.187538 4,906 2%
Neuberger & Berman AMT -
Partners Portfolio ............................. 4,542 24.811256 112,693 (1)%
Oppenheimer Bond Fund/VA ........................ 272 17.959057 4,885 2%
Oppenheimer Global Securities Fund/VA ........... 6,690 32.144397 215,046 10%
Oppenheimer Capital Appreciation Fund/VA ........ 15,779 19.692541 310,729 9%
Oppenheimer Multiple Strategies Fund/VA ......... 415 26.750095 11,101 6%
Strong Opportunity Fund II, Inc. ................ 4,172 41.961900 175,065 4%
Strong VIF - Strong Discovery Fund II ........... 1,302 22.537617 29,344 11%
Strong VIF - Strong International Stock Fund II . 1,818 14.800344 26,907 (12)%
Van Eck WIT - Worldwide Bond Fund ............... 124 13.920782 1,726 (1)%
Van Eck WIT -
Worldwide Emerging Markets Fund ................ 5,126 10.010672 51,315 (13)%
Van Eck WIT - Worldwide Hard Assets Fund ........ 385 15.175466 5,843 4%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio ............... 824 17.343368 14,291 14%
Warburg Pincus Trust -
International Equity Portfolio ................. 2,695 16.348137 44,058 (9)%
Warburg Pincus Trust -
Global Post - Venture Capital Portfolio ........ 966 20.481233 19,785 5%
Warburg Pincus Trust -
Small Company Growth Portfolio ................. 6,205 26.635120 165,271 2%
======= ========= -----------
$35,236,267
===========
</TABLE>
*The period return does not include contract charges satisfied by surrendering
units.
26
<PAGE> 27
[THIS PAGE LEFT BLANK INTENTIONALLY]
27
<PAGE> 28
--------------
NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
--------------
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
