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NATIONWIDE
FIDELITY
ADVISOR
VARIABLE
ACCOUNT
Semi-Annual Report
FIDELITY
ADVISOR
ANNUITIES
JUNE 30, 1995
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Nationwide(R) is a registered federal service of
Nationwide Mutual Insurance Company
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[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43216
[PHOTO]
PRESIDENT'S MESSAGE
We are pleased to present the 1995 semi-annual report of the Nationwide
Fidelity Advisor Variable Account.
The first half of 1995 proved rewarding for both stock and bond fund investors.
During this period, stock funds as a group scored a gain of almost 17 percent
while bond funds were ahead by over 9 percent, as measured by Lipper Analytical
Services, Inc.
The economy slowed during the second quarter in deference to the Federal
Reserve's goal of a "soft landing". In early July the Fed trimmed the federal
funds rate 25 basis points, the first easing by the Fed in almost three years.
This move provided additional fuel to the markets in the current quarter.
Continued low inflation, favorable corporate earnings and slow but sustainable
economic growth should support further advances in the equity and fixed income
markets for the remainder of the year and into 1996.
We extend our thanks that you have selected our investment products to help you
meet your financial planning and retirement needs.
/s/ Peter F. Frenzer
Peter F. Frenzer, President
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<TABLE>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
June 30, 1995
(UNAUDITED)
<S> <C>
Assets:
Investments at market value:
Fidelity Advisor Annuity Government Investment Fund (FAAGvInv)
187,055 shares (cost $2,004,695) ....................................................$ 2,059,480
Fidelity Advisor Annuity Growth Opportunities Fund (FAAGroOp)
3,146,548 shares (cost $35,094,919) ................................................. 37,129,265
Fidelity Advisor Annuity High Yield Fund (FAAHiYld)
781,633 shares (cost $8,561,826) .................................................... 8,691,759
Fidelity Advisor Annuity Income & Growth Fund (FAAIncGr)
1,024,561 shares (cost $10,735,201) ................................................. 11,014,027
Fidelity Advisor Annuity Money Market Fund (FAAMyMkt)
7,156,903 shares (cost $7,156,903) .................................................. 7,156,903
Fidelity Advisor Annuity Overseas Fund (FAAOSeas)
374,798 shares (cost $3,905,039) .................................................... 3,976,604
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Total investments .................................................................... 70,028,038
Accounts receivable .................................................................. 19
-----------
Total assets .......................................................................... 70,028,057
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Contract owners' equity ..............................................................$70,028,057
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</TABLE>
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<TABLE>
<S> <C> <C> <C>
Contract owners' equity represented by: Units Unit Value
------ ----------
Contracts in accumulation phase:
Fidelity Advisor Annuity Classic contracts:
Fidelity Advisor Annuity
Government Investment Fund:
Tax qualified ......................................... 4,900 $10.940014 $ 53,606
Non-tax qualified ..................................... 3,829 10.940014 41,889
Fidelity Advisor Annuity
Growth Opportunities Fund:
Tax qualified ........................................ 279,699 11.725059 3,279,487
Non-tax qualified .................................... 218,593 11.725059 2,563,016
Fidelity Advisor Annuity High Yield Fund:
Tax qualified ........................................ 58,503 11.049326 646,419
Non-tax qualified .................................... 33,243 11.049326 367,313
Fidelity Advisor Annuity
Income & Growth Fund:
Tax qualified ........................................ 88,996 10.681654 950,624
Non-tax qualified .................................... 77,596 10.681654 828,854
Fidelity Advisor Annuity Money Market Fund:
Tax qualified ....................................... 22,571 10.193620 230,080
Non-tax qualified ................................... 37,505 10.193620 382,312
Fidelity Advisor Annuity Overseas Fund:
Tax qualified ....................................... 24,981 10.542532 263,363
Non-tax qualified ................................... 21,202 10.542532 223,523
Fidelity Advisor Annuity Select contracts:
Fidelity Advisor Annuity
Government Investment Fund:
Tax qualified ....................................... 77,008 10.934620 842,053
Non-tax qualified ................................... 102,602 10.934620 1,121,914
Fidelity Advisor Annuity
Growth Opportunities Fund:
Tax qualified ...................................... 699,478 11.719269 8,197,371
Non-tax qualified .................................. 1,970,215 11.719269 23,089,480
Fidelity Advisor Annuity High Yield Fund:
Tax qualified ...................................... 156,651 11.043885 1,730,036
Non-tax qualified .................................. 538,577 11.043885 5,947,982
Fidelity Advisor Annuity
Income & Growth Fund:
Tax qualified....................................... 227,704 10.676380 2,431,054
Non-tax qualified .................................. 637,247 10.676380 6,803,491
Fidelity Advisor Annuity Money Market Fund:
Tax qualified ...................................... 172,017 10.188582 1,752,609
Non-tax qualified .................................. 470,319 10.188582 4,791,884
Fidelity Advisor Annuity Overseas Fund:
Tax qualified ...................................... 84,348 10.537318 888,802
Non-tax qualified .................................. 246,827 10.537318 2,600,895
======== ========= ===========
$70,028,057
See accompanying notes to financial statements. ===========
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NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIOD ENDED JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
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1995
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INVESTMENT ACTIVITY:
Reinvested capital gains and dividends.............................. $ 44,715
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Gain (loss) on investments:
Proceeds from redemptions of mutual fund shares................... 2,063,487
Cost of mutual fund shares sold .................................. (2,023,544)
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Realized gain on investments...................................... 39,943
Change in unrealized gain on investments.......................... 2,569,454
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Net gain on investments........................................... 2,609,397
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Net investment activity....................................... 2,654,112
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EQUITY TRANSACTIONS:
Purchase payments received from contract owners..................... 67,627,563
Redemptions......................................................... (121,364)
Adjustments to maintain reserves.................................... 19
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Net equity transactions....................................... 67,506,218
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EXPENSES (NOTE 2):
Contract charges.................................................... (131,742)
Contingent deferred sales charges................................... (531)
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Total expenses................................................ (132,273)
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Net change in contract owners' equity................................. 70,028,057
Contract owners' equity beginning of period........................... --
Contract owners' equity end of period................................. $70,028,057
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See accompanying notes to financial statements.
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NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization
Nationwide Fidelity Advisor Variable Account (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life Insurance
Company (the Company) on July 22, 1994. The Account has been registered as a
unit investment trust under the Investment Company Act of 1940.
(b) The Contracts
Only flexible purchase payment contracts without a front-end sales charge,
but with a contingent deferred sales charge and certain other fees, are offered
for purchase. See note 2 for a discussion of contract expenses.
Contract owners in either the accumulation or the payout phase may invest
in any of the following:
Fidelity Advisor Annuity Government Investment Fund (FAAGvInv)
Fidelity Advisor Annuity Growth Opportunities Fund (FAAGroOp)
Fidelity Advisor Annuity High Yield Fund (FAAHiYld)
Fidelity Advisor Annuity Income & Growth Fund (FAAIncGr)
Fidelity Advisor Annuity Money Market Fund (FAAMyMkt)
Fidelity Advisor Annuity Overseas Fund (FAAOSeas)
At June 30, 1995, contract owners have invested in all of the above funds.
The contract owners equity is affected by the investment results of each fund
and certain contract expenses (see note 2). The accompanying financial
statements include only contract owners' purchase payments pertaining to the
variable portions of their contracts and exclude any purchase payments for
fixed dollar benefits, the latter being included in the accounts of the
Company.
(c) Security Valuation, Transactions and Related Investment Income
The market value of investments is based on the closing bid prices at
June 30, 1995. The cost of investments sold is determined on a specific
identification basis. Investment transactions are accounted for on the trade
date (date the order to buy or sell is executed) and dividend income is
recorded on the ex-dividend date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with, operations
of the Company which is taxed as a life insurance company under the Internal
Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or withdrawal.
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(2) EXPENSES
The Company does not deduct a sales charge from purchase payments received
from the contract owners. However, if any part of the contract value of such
contracts is surrendered, the Company will, with certain exceptions, deduct
from contract owner's contract value a contingent deferred sales charge, not to
exceed 7% of the lesser of purchase payments or the amount surrendered, such
charge declining 1% per year, to 0%, after the purchase payment has been held
in the contract for 84 months. No sales charges are deducted on redemptions
used to purchase units in the fixed investment options of the Company.
The following administrative charges are deducted by the Company: (a) for
the Fidelity Advisor Annuity Classic contracts an annual contract maintenance
charge of $30, with certain exceptions, which is satisfied by surrendering
units; and (b) for the Fidelity Advisor Annuity Classic contracts a mortality
risk charge, an expense risk charge and an administration charge assessed
through the daily unit value calculation equal to an annual rate of 0.80%,
0.45% and 0.05%, respectively; for the Fidelity Advisor Annuity Select
contracts a mortality risk charge, an expense risk charge and an administration
charge assessed through the daily unit value calculations equal to an annual
rate of 0.80%, 0.45% and 0.15%, respectively.
(3) SCHEDULE I
Schedule I presents the components of the change in the unit values, which
are the basis for contract owners' equity. This schedule is presented for each
series, as applicable, in the following format:
* Beginning unit value - Jan. 1
* Reinvested capital gains and dividends
(This amount reflects the increase in the unit value due to capital
gains and dividend distributions from the underlying mutual funds.)
* Unrealized gain (loss)
(This amount reflects the increase (decrease) in the unit value
resulting from the market appreciation (depreciation) of the fund.)
* Contract charges
(This amount reflects the decrease in the unit value due to the
mortality risk charge, expense risk charge and administration charge
discussed in note 2.)
* Ending unit value - June 30
* Percentage increase (decrease) in unit value.
For contracts in the payout phase, an assumed investment return of 3.5%,
used in the calculation of the annuity benefit payment amount, results in a
corresponding reduction in the components of the unit values as shown in
Schedule I.
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<TABLE>
Schedule I
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
FIDELITY ADVISOR ANNUITY CLASSIC CONTRACTS
TAX QUALIFIED and NON-TAX QUALIFIED
SCHEDULE OF CHANGES IN UNIT VALUE
Six Month Period Ended June 30, 1995
(UNAUDITED)
<CAPTION>
FAAGvInv FAAGroOp FAAHiYld FAAIncGr FAAMyMkt FAAOSeas
-------- -------- -------- -------- -------- --------
1995
<S> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $10.000000 10.000000 10.000000 10.000000 10.000000 10.000000
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Reinvested capital gains and dividends .000000 .000000 .000000 .000000 .258217 .000000
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Unrealized gain (loss) 1.006297 1.792938 1.116277 .746883 .000000 .607134
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Contract charges (.066283) (.067879) (.066951) (.065229) (.064597) (.064602)
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Ending unit value - June 30 $10.940014 11.725059 11.049326 10.681654 10.193620 10.542532
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Percentage increase (decrease)
in unit value* 9% 17% 10% 7% 2% 5%
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*This is not an annualized rate of return as it is the change for a six month period and contract charges do not include the
annual contract maintenance charge discussed in note 2.
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<TABLE>
Schedule I, continued
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
FIDELITY ADVISOR ANNUITY SELECT CONTRACTS
TAX QUALIFIED and NON-TAX QUALIFIED
SCHEDULE OF CHANGES IN UNIT VALUE
Six Month Period Ended June 30, 1995
(UNAUDITED)
<CAPTION>
FAAGvInv FAAGroOp FAAHiYld FAAIncGr FAAMyMkt FAAOSeas
-------- -------- -------- -------- -------- --------
1995
<S> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $10.000000 10.000000 10.000000 10.000000 10.000000 10.000000
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Reinvested capital gains and dividends .000000 .000000 .000000 .000000 .258148 .000000
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Unrealized gain (loss) 1.005993 1.792354 1.115978 .746605 .000000 .606869
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Contract charges (.071373) (.073085) (.072093) (.070225) (.069566) (.069551)
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Ending unit value - June 30 $10.934620 11.719269 11.043885 10.676380 10.188582 10.537318
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Percentage increase (decrease)
in unit value* 9% 17% 10% 7% 2% 5%
====================================================================================================================================
*This is not an annualized rate of return as it is the change for a six month period and contract charges do not include the
annual contract maintenance charge discussed in note 2.
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[NATIONWIDE LOGO] [FIDELTY (LOGO) INVESTMENTS]
NATIONWIDE LIFE INSURANCE COMPANY: HOME OFFICE: COLUMBUS, OHIO BEFORE INVESTING
UNDERSTAND THAT VARIABLE ANNUITIES ARE NOT INSURED BY THE FDIC OR ANY OTHER
GOVERNMENT AGENCY, ARE NOT BANK DEPOSITS AND ARE NOT THE OBLIGATION OF, OR
GUARANTEED BY THE FINANCIAL INSTITUTION WHERE THEY ARE OFFERED. VARIABLE
ANNUITIES INVOLVE INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
APO-2929 (6/95)
