<PAGE> 1
N A T I O N W I D E(R)
F I D E L I T Y
A D V I S O R
V A R I A B L E
A C C O U N T
Semi-Annual Report
F I D E L I T Y
A D V I S O R
A N N U I T I E S(SM)
J u n e 3 0 , 1 9 9 9
<PAGE> 2
{LOGO]
[Photo]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
PRESIDENT'S MESSAGE
On behalf of Nationwide Life Insurance Company, we are pleased to present the
1999 semi-annual report of the Nationwide Fidelity Advisor Variable Account.
Equity investments performed well during the first half of 1999 with the major
market indices showing double-digit gains. Fixed income investments did not fare
as well during this period in the face of the Federal Reserve's inflation
cautiousness. The Fed is mindful of the resilient U.S. economy and the
increasingly tight labor pool that portends future wage inflation. Accordingly,
we have seen a ratcheting-up of short-term interest rates to dampen the momentum
of the current expansion.How aggressively the Fed may react to the perceived
inflation threat only adds uncertainty to the already jittery equity markets.
Over the long term, however, a slower but sustainable rate of growth, with low
inflation, provides a favorable environment for further advances in financial
assets.
At mid-year, we are pleased to report that all the mission-critical systems used
to service our variable annuity and variable life business have been internally
inventoried, assessed and tested as being Year 2000 compliant. We are currently
contacting our critical business partners to determine if they will be Year 2000
compliant. Contingency plans are being developed and are to be completed by the
end of the third quarter. All these steps are being taken to assure that
Nationwide Financial will be able to continue to serve your financial needs into
the Year 2000 and beyond.
Thank you for selecting Nationwide Financial to help you achieve your financial
planning and retirement savings goals. You have our commitment to provide the
consistent, high quality service you expect and deserve.
/s/ Joseph J.Gasper
Joseph J.Gasper, President
August 19, 1999
2
<PAGE> 3
<TABLE>
<CAPTION>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENT OF ASSETS,LIABILITIES AND CONTRACT OWNERS' EQUITY
June 30, 1999
(UNAUDITED)
<S> <C>
ASSETS:
Investments at market value:
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
2,847,069 shares (cost $67,041,938) ................................................... $ 77,582,634
Fidelity VIP - Growth Portfolio (FidVIPGr)
1,817,241 shares (cost $70,643,776) ................................................... 83,102,431
Fidelity VIP - High Income Portfolio (FidVIPHI)
13,362,094 shares (cost $159,969,243) ................................................. 150,858,038
Fidelity VIP - Money Market Portfolio (FidVIPMMkt)
76,379,655 shares (cost $76,379,655) .................................................. 76,379,655
Fidelity VIP - Overseas Portfolio (FidVIPOv)
3,810,898 shares (cost $71,413,969) ................................................... 79,266,678
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
1,033,625 shares (cost $17,704,585) ................................................... 18,284,824
Fidelity VIP-II - Asset Manager:Growth Portfolio (FidVIPAMGr)
901,324 shares (cost $14,037,487) ..................................................... 15,457,707
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
4,122,542 shares (cost $82,604,720) ................................................... 107,598,350
Fidelity VIP-II - Index 500 Portfolio (FidVIPI500)
840,198 shares (cost $107,690,138) .................................................... 130,776,780
Fidelity VIP-II - Investment Grade Bond Portfolio (FidVIPIGBd)
5,145,528 shares (cost $63,072,668) ................................................... 62,157,984
Fidelity VIP-III - Balanced Portfolio (FidVIPBal)
10,360,867 shares (cost $125,568,693) ................................................. 166,291,918
Fidelity VIP-III - Growth and Income Portfolio (FidVIPGrIn)
4,160,983 shares (cost $55,295,984) ................................................... 71,152,812
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
33,029,226 shares (cost $506,042,706) ................................................. 780,810,910
Fidelity VIP-III - Mid Cap Portfolio (FidVIPMCap)
4,191 shares (cost $46,130) ........................................................... 49,376
Fidelity VIP - Equity-Income Portfolio:Service Class (FidVIPEIS)
1,132,131 shares (cost $28,144,361) ................................................... 30,805,272
Fidelity VIP - Growth Portfolio:Service Class (FidVIPGrS)
1,016,066 shares (cost $42,154,918) ................................................... 46,383,405
Fidelity VIP - High Income Portfolio:Service Class (FidVIPHIS)
2,730,221 shares (cost $32,033,056) ................................................... 30,742,294
3
<PAGE> 4
Fidelity VIP - Overseas Portfolio:Service Class (FidVIPOvS)
474,602 shares (cost $9,381,361) ....................................................... 9,857,493
Fidelity VIP-II - Asset Manager Portfolio:Service Class (FidVIPAMS)
435,347 shares (cost $7,458,538) ....................................................... 7,670,811
Fidelity VIP-II - Asset Manager:Growth Portfolio:Service Class (FidVIPAMGrS)
316,923 shares (cost $5,084,321) ....................................................... 5,409,871
Fidelity VIP-II - Contrafund Portfolio:Service Class (FidVIPConS)
1,222,209 shares (cost $28,316,171) .................................................... 31,850,765
Fidelity VIP-III - Balanced Portfolio:Service Class (FidVIPBalS)
1,155,132 shares (cost $17,824,903) .................................................... 18,482,117
Fidelity VIP-III - Growth and Income Portfolio:Service Class (FidVIPGrInS)
2,305,026 shares (cost $35,436,026) .................................................... 39,277,638
Fidelity VIP-III - Growth Opportunities Portfolio:Service Class (FidVIPGrOpS)
3,363,751 shares (cost $71,257,786) .................................................... 79,451,803
Fidelity VIP-III - Mid Cap Portfolio:Service Class (FidVIPMCapS)
42,533 shares (cost $477,629) .......................................................... 500,614
----------------
Total investments ................................................................... 2,120,202,180
Accounts receivable ......................................................................... 73
----------------
Total assets ........................................................................ 2,120,202,253
ACCOUNTS PAYABLE ............................................................................... 247,865
----------------
CONTRACT OWNERS' EQUITY (NOTE 4) ............................................................... $ (2,119,954,388)
================
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
<TABLE>
<CAPTION>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
TOTAL EQUITY-INCOME PORTFOLIO
----------------------------------- ------------------------------
1999 1998 1999 1998
--------------- -------------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..................... $ 37,841,849 27,142,531 993,026 600,150
Mortality, expense and administration
charges (note 2) ....................... (12,931,375) (9,768,566) (492,742) (377,660)
--------------- -------------- ------------ ------------
Net investment activity ................ 24,910,474 17,373,965 500,284 222,490
--------------- -------------- ------------ ------------
Proceeds from mutual fund shares sold .... 156,881,850 54,586,424 3,022,994 333,174
Cost of mutual fund shares sold .......... (128,448,414) (48,224,682) (2,330,165) (299,502)
--------------- -------------- ------------ ------------
Realized gain (loss) on investments .... 28,433,436 6,361,742 692,829 33,672
Change in unrealized gain (loss)
on investments ......................... 32,365,843 59,003,857 4,679,420 2,086,827
--------------- -------------- ------------ ------------
Net gain (loss) on investments ......... 60,799,279 65,365,599 5,372,249 2,120,499
--------------- -------------- ------------ ------------
Reinvested capital gains ................. 42,234,533 51,573,229 2,195,110 2,135,830
--------------- -------------- ------------ ------------
Net increase (decrease) in contract
owners equity resulting from
operations ........................ 127,944,286 134,312,793 8,067,643 4,478,819
--------------- -------------- ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ........................ 258,770,141 243,508,683 5,970,622 18,105,212
Transfers between funds .................. - - (1,239,701) 4,939,442
Redemptions .............................. (84,999,272) (39,203,830) (2,247,676) (1,043,835)
Annuity benefits ......................... (35,907) (35,063) - -
Annual contract maintenance charge
(note 2) ............................... (82,831) (68,081) (3,102) (1,550)
Contingent deferred sales charges
(note 2) ............................... (1,837,836) (785,077) (48,741) (17,709)
Adjustments to maintain reserves ......... (116,921) (1,973) 528 (376)
--------------- -------------- ------------ ------------
Net equity transactions ............. 171,697,375 203,414,659 2,431,930 21,981,184
--------------- -------------- ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ...... 299,641,661 337,727,452 10,499,573 26,460,003
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD. 1,820,312,727 1,238,508,090 67,083,656 38,824,978
--------------- -------------- ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ...... $ 2,119,954,388 1,576,235,542 77,583,229 65,284,981
=============== ============== ============ ============
</TABLE>
<TABLE>
<CAPTION>
GROWTH PORTFOLIO HIGH INCOME PORTFOLIO
----------------------------------- ------------------------------
1999 1998 1999 1998
--------------- -------------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..................... 103,367 133,285 14,171,585 10,862,359
Mortality, expense and administration
charges (note 2) ....................... (479,796) (219,628) (1,088,146) (1,134,181)
--------------- -------------- ------------ ------------
Net investment activity ................ (376,429) (86,343) 13,083,439 9,728,178
--------------- -------------- ------------ ------------
Proceeds from mutual fund shares sold .... 2,551,537 1,150,043 25,556,116 7,770,613
Cost of mutual fund shares sold .......... (1,771,845) (1,027,248) (27,027,967) (7,238,196)
--------------- -------------- ------------ ------------
Realized gain (loss) on investments .... 779,692 122,795 (1,471,851) 532,417
Change in unrealized gain (loss)
on investments ......................... 1,614,312 1,704,472 (1,067,989) (10,920,836)
--------------- -------------- ------------ ------------
Net gain (loss) on investments ......... 2,394,004 1,827,267 (2,539,840) (10,388,419)
--------------- -------------- ------------ ------------
Reinvested capital gains ................. 6,499,195 3,486,467 529,779 6,902,124
--------------- -------------- ------------ ------------
Net increase (decrease) in contract
owners equity resulting from
operations ........................ 8,516,770 5,227,391 11,073,378 6,241,883
--------------- -------------- ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ........................ 8,097,385 10,397,763 6,102,703 20,751,192
Transfers between funds .................. 12,658,401 778,925 (14,555,458) (3,712,181)
Redemptions .............................. (2,172,262) (489,838) (6,048,757) (4,614,343)
Annuity benefits ......................... - - (883) (958)
Annual contract maintenance charge
(note 2) ............................... (2,798) (974) (4,767) (4,813)
Contingent deferred sales charges
(note 2) ............................... (58,417) (11,053) (126,189) (104,602)
Adjustments to maintain reserves ......... 804 (210) 813 300
--------------- -------------- ------------ ------------
Net equity transactions ............. 18,523,112 10,674,613 (14,632,538) 12,314,595
--------------- -------------- ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ...... 27,039,882 15,902,004 (3,559,160) 18,556,478
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD. 56,063,413 23,748,752 154,419,836 149,321,511
--------------- -------------- ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ...... 83,103,295 39,650,756 150,860,676 167,877,989
=============== ============== ============ ============
(Continued)
</TABLE>
5
<PAGE> 6
<TABLE>
<CAPTION>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
MONEY MARKET PORTFOLIO OVERSEAS PORTFOLIO
----------------------------- --------------------------
1999 1998 1999 1998
------------ ------------ ---------- -----------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends ..................... $ 1,589,623 1,126,169 1,213,755 1,390,058
Mortality, expense and administration
charges (note 2) ....................... (434,304) (289,604) (547,978) (557,346)
------------ ------------ ---------- -----------
Net investment activity ................ 1,155,319 836,565 665,777 832,712
------------ ------------ ---------- -----------
Proceeds from mutual fund shares sold .... 38,947,122 25,474,812 9,652,778 3,318,668
Cost of mutual fund shares sold .......... (38,947,122) (25,474,812) (8,554,116) (2,907,177)
------------ ------------ ---------- -----------
Realized gain (loss) on investments .... - - 1,098,662 411,491
Change in unrealized gain (loss)
on investments ......................... - - 1,852,273 5,428,926
------------ ------------ ---------- -----------
Net gain (loss) on investments ......... - - 2,950,935 5,840,417
------------ ------------ ---------- -----------
Reinvested capital gains ................. - - 1,957,670 4,097,014
------------ ------------ ---------- -----------
Net increase (decrease) in contract
owners equity resulting from
operations ........................ 1,155,319 836,565 5,574,382 10,770,143
------------ ------------ ---------- -----------
Equity transactions:
Purchase payments received from
contract owners ........................ 15,522,933 16,097,369 1,801,004 5,819,193
Transfers between funds .................. 8,597,515 (12,127,200) (4,547,450) 1,077,668
Redemptions .............................. (11,865,901) (1,991,455) (2,946,317) (1,751,406)
Annuity benefits ......................... - - - -
Annual contract maintenance charge
(note 2) ............................... (1,697) (1,191) (4,130) (4,088)
Contingent deferred sales charges
(note 2) ............................... (295,408) (53,261) (57,359) (39,760)
Adjustments to maintain reserves ......... (296) (74) 711 977
------------ ------------ ---------- -----------
Net equity transactions ............. 11,957,145 1,924,188 (5,753,541) 5,102,584
------------ ------------ ---------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ...... 13,112,464 2,760,753 (179,159) 15,872,727
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD. 63,266,840 43,662,462 79,447,569 68,829,824
------------ ------------ ---------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ...... $ 76,379,304 46,423,215 79,268,410 84,702,551
</TABLE>
<TABLE>
<CAPTION>
ASSET MANAGER
ASSET MANAGER PORTFOLIO GROWTH PORTFOLIO
----------------------------- ---------------------------
1999 1998 1999 1998
------------ ------------ ---------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..................... 515,103 350,865 330,314 182,827
Mortality, expense and administration
charges (note 2) ....................... (116,975) (84,567) (99,226) (69,690)
------------ ------------ ---------- -----------
Net investment activity ................ 398,128 266,298 231,088 113,137
------------ ------------ ---------- -----------
Proceeds from mutual fund shares sold .... 1,242,306 714,871 803,239 340,778
Cost of mutual fund shares sold .......... (1,118,340) (651,635) (655,348) (297,241)
------------ ------------ ---------- -----------
Realized gain (loss) on investments .... 123,966 63,236 147,891 43,537
Change in unrealized gain (loss)
on investments ......................... (400,248) (408,541) 34,381 (60,978)
------------ ------------ ---------- -----------
Net gain (loss) on investments ......... (276,282) (345,305) 182,272 (17,441)
------------ ------------ ---------- -----------
Reinvested capital gains ................. 652,464 1,052,595 547,838 854,987
------------ ------------ ---------- -----------
Net increase (decrease) in contract
owners equity resulting from
operations ........................ 774,310 973,588 961,198 950,683
------------ ------------ ---------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ........................ 2,063,557 2,469,613 1,159,970 2,367,985
Transfers between funds .................. 1,031,058 320,287 377,353 223,528
Redemptions .............................. (731,207) (452,451) (259,748) (142,386)
Annuity benefits ......................... (16,586) (16,169) - -
Annual contract maintenance charge
(note 2) ............................... (553) (185) (763) (359)
Contingent deferred sales charges
(note 2) ............................... (5,058) (4,130) (4,293) (2,302)
Adjustments to maintain reserves ......... (154) (2,044) (350) 23
------------ ------------ ---------- -----------
Net equity transactions ............. 2,341,056 2,314,921 1,272,169 2,446,489
------------ ------------ ---------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ...... 3,115,366 3,288,509 2,233,367 3,397,172
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD. 15,168,982 10,050,168 13,224,069 8,276,147
------------ ------------ ---------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ...... 18,284,348 13,338,677 15,457,436 11,673,319
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
CONTRAFUND PORTFOLIO INDEX 500 PORTFOLIO
------------------------------- ----------------------------
1999 1998 1999 1998
------------- ------------ ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..................... $ 428,489 374,985 795,231 369,216
Mortality, expense and administration
charges (note 2) ....................... (667,669) (426,945) (628,733) (269,975)
------------- ------------ ---------- ----------
Net investment activity ................ (239,180) (51,960) 166,498 99,241
------------- ------------ ---------- ----------
Proceeds from mutual fund shares sold .... 2,682,821 2,279,235 1,989,208 342,168
Cost of mutual fund shares sold .......... (1,782,034) (1,914,686) (1,307,502) (271,859)
------------- ------------ ---------- ----------
Realized gain (loss) on investments .... 900,787 364,549 681,706 70,309
Change in unrealized gain (loss)
on investments ......................... 5,726,365 5,862,913 9,497,967 4,645,885
------------- ------------ ---------- ----------
Net gain (loss) on investments ......... 6,627,152 6,227,462 10,179,673 4,716,194
------------- ------------ ---------- ----------
Reinvested capital gains ................. 3,142,250 2,758,815 539,621 855,170
------------- ------------ ---------- ----------
Net increase (decrease) in contract
owners equity resulting from
operations ........................ 9,530,222 8,934,317 10,885,792 5,670,605
------------- ------------ ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ........................ 8,427,939 10,445,026 39,707,010 14,562,979
Transfers between funds .................. 8,363,187 1,430,985 8,138,091 4,250,431
Redemptions .............................. (3,358,682) (1,383,363) (3,035,253) (847,328)
Annuity benefits ......................... - - - -
Annual contract maintenance charge
(note 2) ............................... (5,240) (3,377) (4,108) (1,892)
Contingent deferred sales charges
(note 2) ............................... (86,254) (31,053) (76,743) (14,721)
Adjustments to maintain reserves ......... 948 175 997 (409)
------------- ------------ ---------- ----------
Net equity transactions ............. 13,341,898 10,458,393 44,729,993 17,949,060
------------- ------------ ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ...... 22,872,120 19,392,710 55,615,785 23,619,665
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD. 84,727,181 51,523,897 75,161,985 28,715,098
------------- ------------ ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ...... $107,599,301 70,916,607 130,777,770 52,334,763
============= ============ =========== ==========
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT GRADE
BOND PORTFOLIO BALANCED PORTFOLIO
------------------------------- ----------------------------
1999 1998 1999 1998
------------- ------------ ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..................... 2,225,217 1,397,192 3,795,276 3,537,100
Mortality, expense and administration
charges (note 2) ....................... (380,250) (219,545) (1,158,168) (1,069,725)
------------- ------------ ----------- ----------
Net investment activity ................ 1,844,967 1,177,647 2,637,108 2,467,375
------------- ------------ ----------- ----------
Proceeds from mutual fund shares sold .... 6,199,820 1,258,033 9,557,467 2,395,048
Cost of mutual fund shares sold .......... (5,900,121) (1,184,187) (6,559,792) (1,674,185)
------------- ------------ ----------- ----------
Realized gain (loss) on investments .... 299,699 73,846 2,997,675 720,863
Change in unrealized gain (loss)
on investments ......................... (4,261,449) (425,642) (3,245,262) 7,856,834
------------- ------------ ----------- ----------
Net gain (loss) on investments ......... (3,961,750) (351,796) (247,587) 8,577,697
------------- ------------ ----------- ----------
Reinvested capital gains ................. 698,107 165,769 4,410,726 5,403,903
------------- ------------ ----------- ----------
Net increase (decrease) in contract
owners equity resulting from
operations ........................ (1,418,676) 991,620 6,800,247 16,448,975
------------- ------------ ----------- ----------
Equity transactions:
Purchase payments received from
contract owners ........................ 11,905,540 5,853,296 4,926,780 7,303,539
Transfers between funds .................. 479,121 1,105,720 (4,580,038) 6,442
Redemptions .............................. (2,864,994) (1,044,664) (6,556,773) (4,411,425)
Annuity benefits ......................... (15,236) (15,041) (674) (628)
Annual contract maintenance charge
(note 2) ............................... (1,352) (1,152) (7,260) (7,327)
Contingent deferred sales charges
(note 2) ............................... (50,544) (15,120) (106,391) (83,293)
Adjustments to maintain reserves ......... (179) (1,423) (122,011) 607
------------- ------------ ----------- ----------
Net equity transactions ............. 9,452,357 5,881,616 (6,446,366) 2,807,915
------------- ------------ ----------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ...... 8,033,681 6,873,236 353,881 19,256,890
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD. 54,123,958 28,538,182 165,682,211 142,394,052
------------- ------------ ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ...... 62,157,639 35,411,418 166,036,092 161,650,942
============= ============ =========== ==========
(Continued)
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
GROWTH AND INCOME GROWTH OPPORTUNITIES
PORTFOLIO PORTFOLIO
------------------------------ ----------------------------
1999 1998 1999 1998
------------ ---------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..................... $ 372,758 - 7,748,077 6,818,325
Mortality, expense and administration
charges (note 2) ....................... (447,104) (241,201) (5,314,911) (4,711,011)
------------ ---------- ----------- -----------
Net investment activity ................ (74,346) (241,201) 2,433,166 2,107,314
------------ ---------- ----------- -----------
Proceeds from mutual fund shares sold .... 1,641,154 28,097 46,245,098 8,539,046
Cost of mutual fund shares sold .......... (1,045,671) (20,886) (24,980,851) (4,651,902)
------------ ---------- ----------- -----------
Realized gain (loss) on investments .... 595,483 7,211 21,264,247 3,887,144
Change in unrealized gain (loss)
on investments ......................... 3,221,836 5,139,007 4,530,167 36,953,688
------------ ---------- ----------- -----------
Net gain (loss) on investments ......... 3,817,319 5,146,218 25,794,414 40,840,832
------------ ---------- ----------- -----------
Reinvested capital gains ................. 745,516 158,758 14,485,535 23,701,797
------------ ---------- ----------- -----------
Net increase (decrease) in contract
owners equity resulting from
operations ........................ 4,488,489 5,063,775 42,713,115 66,649,943
------------ ---------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ........................ 7,625,864 9,453,853 22,197,646 53,810,557
Transfers between funds .................. 3,858,767 4,996,317 (24,241,258) (4,213,525)
Redemptions .............................. (2,125,680) (991,144) (34,580,397) (19,762,259)
Annuity benefits ......................... - - (2,529) (2,267)
Annual contract maintenance charge
(note 2) ............................... (2,390) (782) (44,616) (40,391)
Contingent deferred sales charges
(note 2) ............................... (47,147) (9,625) (735,912) (398,448)
Adjustments to maintain reserves ......... 421 157 5,976 654
------------ ---------- ----------- -----------
Net equity transactions ............. 9,309,835 13,448,776 (37,401,090) 29,394,321
------------ ---------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ...... 13,798,324 18,512,551 5,312,025 96,044,264
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD. 57,354,937 26,075,446 775,505,231 618,547,573
------------ ---------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ...... $ 71,153,261 44,587,997 780,817,256 714,591,837
============ ========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
EQUITY-INCOME PORTFOLIO:
MID CAP PORTFOLIO SERVICE CLASS
------------------------------ ----------------------------
1999 1998 1999 1998
------------ ---------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..................... - - 298,320 -
Mortality, expense and administration
charges (note 2) ....................... (134) - (115,874) (14,283)
------------ ---------- ----------- -----------
Net investment activity ................ (134) - 182,446 (14,283)
------------ ---------- ----------- -----------
Proceeds from mutual fund shares sold .... 152 - 1,257,471 161,897
Cost of mutual fund shares sold .......... (144) - (1,243,009) (150,947)
------------ ---------- ----------- -----------
Realized gain (loss) on investments .... 8 - 14,462 10,950
Change in unrealized gain (loss)
on investments ......................... 3,246 - 1,975,147 23,923
------------ ---------- ----------- -----------
Net gain (loss) on investments ......... 3,254 - 1,989,609 34,873
------------ ---------- ----------- -----------
Reinvested capital gains ................. - - 659,443 -
------------ ---------- ----------- -----------
Net increase (decrease) in contract
owners equity resulting from
operations ........................ 3,120 - 2,831,498 20,590
------------ ---------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ........................ 4,224 - 10,057,970 9,163,312
Transfers between funds .................. 42,091 - (691,604) 190,851
Redemptions .............................. - - (627,036) (48,254)
Annuity benefits ......................... - - - -
Annual contract maintenance charge
(note 2) ............................... (54) - - -
Contingent deferred sales charges
(note 2) ............................... - - (12,075) -
Adjustments to maintain reserves ......... (6,166) - 143 (37)
------------ ---------- ----------- -----------
Net equity transactions ............. 40,096 - 8,727,399 9,305,872
------------ ---------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ...... 43,216 - 11,558,897 9,326,462
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD. - - 19,246,515 -
------------ ---------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ...... 43,216 - 30,805,412 9,326,462
============ ========== =========== ===========
</TABLE>
8
<PAGE> 9
<TABLE>
<CAPTION>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
GROWTH PORTFOLIO: HIGH INCOME PORTFOLIO:
SERVICE CLASS SERVICE CLASS
------------------------------- -----------------------------
1999 1998 1999 1998
------------ ------------ ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..................... $ 40,526 - 1,960,183 -
Mortality, expense and administration
charges (note 2) ....................... (150,911) (10,098) (122,211) (16,874)
------------ ------------ ----------- ----------
Net investment activity ................ (110,385) (10,098) 1,837,972 (16,874)
------------ ------------ ----------- ----------
Proceeds from mutual fund shares sold .... 884,056 38,023 678,389 60
Cost of mutual fund shares sold .......... (731,234) (35,629) (763,425) (60)
------------ ------------ ----------- ----------
Realized gain (loss) on investments .... 152,822 2,394 (85,036) -
Change in unrealized gain (loss)
on investments ......................... 1,363,908 320,836 (193,914) (13,808)
------------ ------------ ----------- ----------
Net gain (loss) on investments ......... 1,516,730 323,230 (278,950) (13,808)
------------ ------------ ----------- ----------
Reinvested capital gains ................. 2,548,095 - 73,278 -
------------ ------------ ----------- ----------
Net increase (decrease) in contract
owners equity resulting from
operations ........................ 3,954,440 313,132 1,632,300 (30,682)
------------ ------------ ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ........................ 22,553,999 7,243,338 10,488,588 11,674,698
Transfers between funds .................. 1,401,096 42,959 (350,854) (55,505)
Redemptions .............................. (833,019) (40,157) (657,423) (44,140)
Annuity benefits ......................... - - - -
Annual contract maintenance charge
(note 2) ............................... - - - -
Contingent deferred sales charges
(note 2) ............................... (23,264) - (17,542) -
Adjustments to maintain reserves ......... 244 (5) 56 (10)
------------ ------------ ----------- ----------
Net equity transactions ............. 23,099,056 7,246,135 9,462,824 11,575,043
------------ ------------ ----------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ...... 27,053,496 7,559,267 11,095,124 11,544,361
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD. 19,330,166 - 19,647,222 -
------------ ------------ ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ...... $ 46,383,662 7,559,267 30,742,346 11,544,361
============ ============ =========== ==========
</TABLE>
<TABLE>
<CAPTION>
OVERSEAS PORTFOLIO: ASSET MANAGER PORTFOLIO:
SERVICE CLASS SERVICE CLASS
------------------------------- -----------------------------
1999 1998 1999 1998
------------ ------------ ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..................... 100,837 - 134,952 -
Mortality, expense and administration
charges (note 2) ....................... (36,914) (3,550) (26,077) (1,023)
------------ ------------ ----------- ----------
Net investment activity ................ 63,923 (3,550) 108,875 (1,023)
------------ ------------ ----------- ----------
Proceeds from mutual fund shares sold .... 762,423 28,433 474,680 11,945
Cost of mutual fund shares sold .......... (798,811) (27,147) (470,856) (11,571)
------------ ------------ ----------- ----------
Realized gain (loss) on investments .... (36,388) 1,286 3,824 374
Change in unrealized gain (loss)
on investments ......................... 372,538 (6,899) (14,471) 9,750
------------ ------------ ----------- ----------
Net gain (loss) on investments ......... 336,150 (5,613) (10,647) 10,124
------------ ------------ ----------- ----------
Reinvested capital gains ................. 162,640 - 170,940 -
------------ ------------ ----------- ----------
Net increase (decrease) in contract
owners equity resulting from
operations ........................ 562,713 (9,163) 269,168 9,101
------------ ------------ ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ........................ 2,905,135 2,521,329 2,898,292 917,149
Transfers between funds .................. 798,810 110,474 866,689 43,347
Redemptions .............................. (265,144) (2,701) (81,387) -
Annuity benefits ......................... - - - -
Annual contract maintenance charge
(note 2) ............................... - - - -
Contingent deferred sales charges
(note 2) ............................... (8,026) - (538) -
------------ ------------ ----------- ----------
Adjustments to maintain reserves ......... 9 (7) 8 (1)
Net equity transactions ............. 3,430,784 2,629,095 3,683,063 960,495
------------ ------------ ----------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ...... 3,993,497 2,619,932 3,952,231 969,596
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD. 5,864,005 - 3,718,589 -
------------ ------------ ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ...... 9,857,502 2,619,932 7,670,820 969,596
============ ============ =========== ==========
</TABLE>
9
<PAGE> 10
<TABLE>
<CAPTION>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
ASSET MANAGER: CONTRAFUND PORTFOLIO:
GROWTH PORTFOLIO:SERVICE CLASS SERVICE CLASS
------------------------------ --------------------------
1999 1998 1999 1998
------------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................... $ 68,429 - 80,508 -
Mortality, expense and administration
charges (note 2) ..................... (18,945) (1,240) (107,934) (7,246)
----------- --------- ---------- ---------
Net investment activity .............. 49,484 (1,240) (27,426) (7,246)
----------- --------- ---------- ---------
Proceeds from mutual fund shares sold .. 418,362 2,727 623,243 34,897
Cost of mutual fund shares sold ........ (403,042) (2,635) (524,615) (33,349)
----------- --------- ---------- ---------
Realized gain (loss) on investments .. 15,320 92 98,628 1,548
Change in unrealized gain (loss)
on investments ....................... 122,033 13,924 1,605,371 201,197
----------- --------- ---------- ---------
Net gain (loss) on investments ....... 137,353 14,016 1,703,999 202,745
----------- --------- ---------- ---------
Reinvested capital gains ............... 113,492 - 590,393 -
----------- --------- ---------- ---------
Net increase (decrease) in contract
owners equity resulting from
operations ...................... 300,329 12,776 2,266,966 195,499
----------- --------- ---------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ...................... 2,697,503 1,023,564 14,224,181 4,993,204
Transfers between funds ................ (28,946) 6,151 1,378,103 282,781
Redemptions ............................ (56,797) (4,345) (833,842) (6,235)
Annuity benefits ....................... - - - -
Annual contract maintenance charge
(note 2) ............................. - - - -
Contingent deferred sales charges
(note 2) ............................. (574) - (13,674) -
Adjustments to maintain reserves ....... 20 (2) 111 (4)
----------- --------- ---------- ---------
Net equity transactions ........... 2,611,206 1,025,368 14,754,878 5,269,746
----------- --------- ---------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY .... 2,911,535 1,038,144 17,021,844 5,465,245
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 2,498,347 - 14,829,049 -
----------- --------- ---------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD .... $ 5,409,882 1,038,144 31,850,893 5,465,245
=========== ========= ========== =========
</TABLE>
<TABLE>
<CAPTION>
BALANCED PORTFOLIO: GROWTH AND INCOME PORTFOLIO:
SERVICE CLASS SERVICE CLASS
-------------------------- ----------------------------
1999 1998 1999 1998
---------- --------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................... 260,297 - 131,543 -
Mortality, expense and administration
charges (note 2) ..................... (67,345) (3,458) (134,411) (7,761)
---------- --------- ---------- ---------
Net investment activity .............. 192,952 (3,458) (2,868) (7,761)
---------- --------- ---------- ---------
Proceeds from mutual fund shares sold .. 71,938 29,320 482,397 254,098
Cost of mutual fund shares sold ........ (69,790) (28,081) (424,003) (245,882)
---------- --------- ---------- ---------
Realized gain (loss) on investments .. 2,148 1,239 58,394 8,216
Change in unrealized gain (loss)
on investments ....................... 107,612 56,698 1,782,992 202,781
---------- --------- ---------- ---------
Net gain (loss) on investments ....... 109,760 57,937 1,841,386 210,997
---------- --------- ---------- ---------
Reinvested capital gains ............... 302,507 - 263,087 -
---------- --------- ---------- ---------
Net increase (decrease) in contract
owners equity resulting from
operations ...................... 605,219 54,479 2,101,605 203,236
---------- --------- ---------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ...................... 8,481,537 3,063,263 17,947,145 5,736,928
Transfers between funds ................ 207,801 80,857 1,577,617 154,084
Redemptions ............................ (352,759) (33,837) (697,293) (5,037)
Annuity benefits ....................... - - - -
Annual contract maintenance charge
(note 2) ............................. - - - -
Contingent deferred sales charges
(note 2) ............................. (8,463) - (11,230) -
Adjustments to maintain reserves ....... 5 (75) 124 (4)
---------- --------- ---------- ---------
Net equity transactions ........... 8,328,122 3,110,208 18,816,363 5,885,971
---------- --------- ---------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 8,933,341 3,164,687 20,917,968 6,089,207
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 9,548,789 - 18,359,783 -
---------- --------- ---------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 18,482,130 3,164,687 39,277,751 6,089,207
</TABLE>
10
<PAGE> 11
<TABLE>
<CAPTION>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
Growth Opportunities Mid Cap Portfolio:
Portfolio:Service Class Service Class
---------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..................... $ 484,433 - - -
Mortality, expense and administration
charges (note 2) ....................... (293,615) (31,955) (1,002) -
------------ ------------ ------------ ------------
Net investment activity ................ 190,818 (31,955) (1,002) -
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold .... 562,935 80,438 574,144 -
Cost of mutual fund shares sold .......... (485,335) (75,865) (553,276) -
------------ ------------ ------------ ------------
Realized gain (loss) on investments .... 77,600 4,573 20,868 -
Change in unrealized gain (loss)
on investments ......................... 3,036,623 332,900 22,985 -
------------ ------------ ------------ ------------
Net gain (loss) on investments ......... 3,114,223 337,473 43,853 -
------------ ------------ ------------ ------------
Reinvested capital gains ................. 946,847 - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners equity resulting from
operations ........................ 4,251,888 305,518 42,851 -
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ........................ 30,611,275 19,734,321 391,338 -
Transfers between funds .................. 391,438 67,162 68,170 -
Redemptions .............................. (1,799,178) (93,227) (1,744) -
Annuity benefits ......................... - - - -
Annual contract maintenance charge
(note 2) ............................... - - - -
Contingent deferred sales charges
(note 2) ............................... (43,994) - - -
Adjustments to maintain reserves ......... 329 (185) (11) -
------------ ------------ ------------ ------------
Net equity transactions ............. 29,159,871 19,708,071 457,753 -
------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ...... 33,411,759 20,013,589 500,604 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD. 46,040,394 - - -
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ...... $ 79,452,153 20,013,589 500,604 -
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE> 12
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 and 1998
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
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.
The Company offers tax qualified and non-tax qualified Individual
Deferred Variable Annuity Contracts, and Individual Modified Single
Premium Deferred Variable Annuity Contracts through the Account. The
primary distribution for the contracts is through Fidelity
Investments(r).
(b) The Contracts
Only 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.
With certain exceptions, contract owners in either the accumulation or
the payout phase may invest in any of the following:
Funds available in the Fidelity Advisor Classic and Select Products:
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio
Fidelity VIP - Growth Portfolio
Fidelity VIP - High Income Portfolio
Fidelity VIP - Money Market Portfolio (also available in the
Fidelity Advisor Generations product)
Fidelity VIP - Overseas Portfolio
Portfolios of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Asset Manager Portfolio
Fidelity VIP-II - Asset Manager:Growth Portfolio
Fidelity VIP-II - Contrafund Portfolio
Fidelity VIP-II - Index 500 Portfolio (also available in the
Fidelity Advisor Generations product) Fidelity VIP-II - Investment
Grade Bond Portfolio (also available in the Fidelity Advisor
Generations Annuity product)
Portfolios of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Balanced Portfolio
Fidelity VIP-III - Growth and Income Portfolio
Fidelity VIP-III - Growth Opportunities Portfolio
Fidelity VIP-III - Mid Cap Portfolio
Funds of Fidelity Advisor Annuity Fund (effective January 20, 1997,
the following funds are no longer available);
Fidelity Advisor Annuity Government Investment Fund
Fidelity Advisor Annuity High Yield Fund
Fidelity Advisor Annuity Money Market Fund
Fidelity Advisor Annuity Overseas Fund
Funds available in the Fidelity Advisor Generations product:
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio:Service Class
Fidelity VIP - Growth Portfolio:Service Class
Fidelity VIP - High Income Portfolio:Service Class
Fidelity VIP - Overseas Portfolio:Service Class
12
<PAGE> 13
Portfolios of the Fidelity Variable Insurance Products Fund
II(Fidelity VIP-II); Fidelity VIP-II - Asset Manager
Portfolio:Service Class Fidelity VIP-II - Asset Manager:Growth
Portfolio:Service Class Fidelity VIP-II - Contrafund
Portfolio:Service Class
Portfolios of the Fidelity Variable Insurance Products Fund
III(Fidelity VIP-III); Fidelity VIP-III - Balanced
Portfolio:Service Class Fidelity VIP-III - Growth and Income
Portfolio:Service Class Fidelity VIP-III - Growth Opportunities
Portfolio:Service Class Fidelity VIP-III - Mid Cap
Portfolio:Service Class
At June 30, 1999, except as noted, 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 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.
A contract owner may choose from among a number of different underlying
mutual fund options.The underlying mutual fund options are not available
to the general public directly.The underlying mutual funds are available
as investment options in variable life insurance policies or variable
annuity contracts issued by life insurance companies or, in some cases,
through participation in certain qualified pension or retirement plans.
Some of the underlying mutual funds have been established by investment
advisers which manage publicly traded mutual funds having similar names
and investment objectives.While some of the underlying mutual funds may
be similar to, and may in fact be modeled after, publicly traded mutual
funds, the underlying mutual funds are not otherwise directly related to
any publicly traded mutual fund.Con- sequently, 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, 1999.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.
(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) 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 a 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.
13
<PAGE> 14
The following contract charges are deducted by the Company:(a) for the Fidelity
Advisor Annuity Classic contracts an annual contract maintenance charge of up to
$30, dependent upon contract type and issue date, 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 calculation equal to an annual rate
of 0.80%, 0.45% and 0.15%, respectively;for the Fidelity Advisor Generations
Annuity contracts a mortality risk charge and an expense risk charge assessed
through the daily unit value calculation equal to an annual rate of .80% and
.15%, respectively.For Fidelity Advisor Annuity Select and Fidelity Advisor
Generations Annuity contracts, optional long term care facility with a one-year
stepped up death benefit rider is offered at an additional annual rate of 0.05%
(Rider Option 1).Optional long care facility with a 5% enhanced death benefit
rider is offered at an additional annual rate of 0.10% (Rider Option 2).
The following table provides mortality, expense and administration charges by
asset fee rate for the six month period ended June 30, 1999:
<TABLE>
<CAPTION>
Total FidVIPEI FidVIPGr FidVIPHI FidVIPMMkt
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
0.95% ........................... 626,974 - - - 33,717
1.00% ........................... 568,358 - - - 20,511
1.05% ........................... 159,955 - - - 12,891
1.30% ........................... 919,074 27,275 28,654 63,323 23,672
1.40% ........................... 10,466,078 446,889 428,266 1,008,965 328,224
1.45% ........................... 147,079 14,954 17,977 12,163 8,774
1.50% ........................... 43,801 3,624 4,898 3,695 6,514
---------- ---------- ---------- ---------- ----------
Total ...................... 12,931,375 492,742 479,796 1,088,146 434,304
========== ========== ========== ========== ==========
FidVIPOv FidVIPAM FidVIPAMGr FidVIPCon FidVIPI500
---------- ---------- ---------- ---------- ----------
0.95% ........................... - - - - 75,150
1.00% ........................... - - - - 53,612
1.05% ........................... - - - - 12,629
1.30% ........................... 45,079 5,407 4,845 45,976 33,736
1.40% ........................... 497,814 106,768 91,286 606,199 438,094
1.45% ........................... 4,254 3,488 2,405 13,010 11,353
1.50% ........................... 830 1,312 689 2,484 4,160
---------- ---------- ---------- ---------- ----------
Total ...................... 547,978 116,975 99,226 667,669 628,733
========== ========== ========== ========== ==========
FidVIPIGBd FidVIPBal FidVIPGrIn FidVIPGrOp FidVIPMCap
---------- ---------- ---------- ---------- ----------
0.95% ........................... 28,569 - - - -
1.00% ........................... 32,031 - - - -
1.05% ........................... 10,963 - - - -
1.30% ........................... 19,621 103,461 22,834 495,056 134
1.40% ........................... 285,668 1,046,203 410,302 4,771,430 -
1.45% ........................... 2,368 7,566 12,485 36,282 -
1.50% ........................... 1,030 938 1,483 12,143 -
---------- ---------- ---------- ---------- ----------
Total ...................... 380,250 1,158,168 447,104 5,314,911 134
========== ========== ========== ========== ==========
</TABLE>
14
<PAGE> 15
<TABLE>
<CAPTION>
FidVIPEIS FidVIPGrS FidVIPHIS FidVIPOvS FidVIPAMS
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
0.95% ........................... 54,360 70,614 62,467 17,651 11,839
1.00% ........................... 47,719 63,291 44,667 13,911 11,515
1.05% ........................... 13,795 17,005 15,077 5,352 2,723
1.30% ........................... - - - - -
1.40% ........................... - - - - -
1.45% ........................... - - - - -
1.50% ........................... - - - - -
---------- ---------- ---------- ---------- ----------
Total ...................... 115,874 150,911 122,211 36,914 26,077
========== ========== ========== ========== ==========
FidVIPAMGrS FidVIPConS FidVIPBalS FidVIPGrInS FidVIPGrOpS
----------- ---------- ---------- ----------- -----------
0.95% ........................... 6,818 49,576 31,616 53,549 130,718
1.00% ........................... 8,523 46,247 28,160 65,622 132,051
1.05% ........................... 3,605 12,111 7,569 15,241 30,846
1.30% ........................... - - - - -
1.40% ........................... - - - - -
1.45% ........................... - - - - -
1.50% ........................... - - - - -
---------- ---------- ---------- ---------- ----------
Total ...................... 18,945 107,934 67,345 134,411 293,615
========== ========== ========== ========== ==========
FidVIPMCapS
-----------
0.95% 329
1.00% ....................... 498
1.05% ....................... 175
1.30% ....................... -
1.40% ....................... -
1.45% ....................... -
1.50% ....................... -
-----------
Total .................. 1,002
===========
</TABLE>
(3) 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.
15
<PAGE> 16
(4) Components of Contract owners'equity
The following is a summary of contract owners'equity at June 30, 1999, for
each series, in both the accumulation and payout phases.
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN(b)
---------- ----------- ---------
<S> <C> <C> <C> <C>
ASSET FEE @ .95 RATE:
Fidelity VIP - Money Market Portfolio:
Tax qualified ......................................... 239,718 $ 10.609486 $ 2,543,285 2%
Non-tax qualified ..................................... 553,987 10.609486 5,877,517 2%
Fidelity VIP - Index 500 Portfolio:
Tax qualified ......................................... 1,548,534 13.609671 21,075,038 12%
Non-tax qualified ..................................... 713,607 13.609671 9,711,956 12%
Fidelity VIP II -
Investment Grade Bond Portfolio:
Tax qualified ......................................... 251,530 10.459393 2,630,851 (2)%
Non-tax qualified ..................................... 474,117 10.459393 4,958,976 (2)%
Fidelity VIP -
Equity-Income Portfolio:Service Class
Tax qualified ......................................... 488,009 12.064899 5,887,779 12%
Non-tax qualified ..................................... 747,222 12.064899 9,015,158 12%
Fidelity VIP - Growth Portfolio:Service Class
Tax qualified ......................................... 527,034 15.099868 7,958,144 14%
Non-tax qualified ..................................... 896,834 15.099868 13,542,075 14%
Fidelity VIP - High Income Portfolio:
Service Class
Tax qualified ......................................... 670,871 9.898262 6,640,457 7%
Non-tax qualified ..................................... 994,253 9.898262 9,841,377 7%
Fidelity VIP - Overseas Portfolio:
Service Class
Tax qualified ......................................... 197,617 11.386918 2,250,249 8%
Non-tax qualified ..................................... 225,906 11.386918 2,572,373 8%
Fidelity VIP II - Asset Manager Portfolio:
Service Class
Tax qualified ......................................... 134,463 11.623059 1,562,871 5%
Non-tax qualified ..................................... 178,612 11.623059 2,076,018 5%
Fidelity VIP II - Asset Manager
Growth Portfolio:Service Class
Tax qualified ......................................... 65,906 12.068956 795,417 7%
Non-tax qualified ..................................... 94,832 12.068956 1,144,523 7%
Fidelity VIP - Contrafund Portfolio:
Service Class
Tax qualified ......................................... 433,090 13.875166 6,009,196 11%
Non-tax qualified ..................................... 644,775 13.875166 8,946,360 11%
Fidelity VIP III - Balanced Portfolio:
Service Class
Tax qualified ......................................... 304,563 11.831723 3,603,505 4%
Non-tax qualified ..................................... 454,576 11.831723 5,378,417 4%
Fidelity VIPIII - Growth and Income Portfolio:
Service Class
Tax qualified ......................................... 462,647 13.295853 6,151,287 7%
Non-tax qualified ..................................... 750,535 13.295853 9,979,003 7%
</TABLE>
16
<PAGE> 17
<TABLE>
<CAPTION>
Fidelity VIP III - Growth Opportunities
Portfolio:Service Class
<S> <C> <C> <C> <C>
Tax qualified ....................................... 1,148,990 12.644304 14,528,179 6%
Non-tax qualified ................................... 1,754,479 12.644304 22,184,166 6%
Fidelity VIP III - Mid Cap Portfolio:
Service Class
Tax qualified ....................................... 8,348 11.278035 94,149 13%(a)
Non-tax qualified ................................... 13,088 11.278035 147,607 13%(a)
ASSET FEE @ 1.00 RATE:
Fidelity VIP - Money Market Portfolio:
Tax qualified ....................................... 140,198 10.601915 1,486,367 2%
Non-tax qualified ................................... 336,572 10.601915 3,568,308 2%
Fidelity VIP - Index 500 Portfolio:
Tax qualified ....................................... 470,692 13.600141 6,401,478 11%
Non-tax qualified ................................... 700,170 13.600141 9,522,411 11%
Fidelity VIP II -
Investment Grade Bond Portfolio:
Tax qualified ....................................... 228,274 10.452067 2,385,935 (2)%
Non-tax qualified ................................... 440,454 10.452067 4,603,655 (2)%
Fidelity VIP - Equity-Income Portfolio:
Service Class
Tax qualified ....................................... 481,690 12.056463 5,807,478 12%
Non-tax qualified ................................... 553,236 12.056463 6,670,069 12%
Fidelity VIP - Growth Portfolio:Service Class
Tax qualified ....................................... 557,090 15.089312 8,406,105 14%
Non-tax qualified ................................... 783,278 15.089312 11,819,126 14%
Fidelity VIP - High Income Portfolio:
Service Class
Tax qualified ....................................... 496,966 9.891329 4,915,654 7%
Non-tax qualified ................................... 615,429 9.891329 6,087,411 7%
Fidelity VIP - Overseas Portfolio:
Service Class
Tax qualified ....................................... 154,162 11.378960 1,754,203 8%
Non-tax qualified ................................... 170,914 11.378960 1,944,824 8%
Fidelity VIP II - Asset Manager Portfolio:
Service Class
Tax qualified ....................................... 124,040 11.614922 1,440,715 5%
Non-tax qualified ................................... 152,593 11.614922 1,772,356 5%
Fidelity VIP II - Asset Manager
Growth Portfolio:Service Class
Tax qualified ....................................... 109,394 12.060532 1,319,350 7%
Non-tax qualified ................................... 101,014 12.060532 1,218,283 7%
Fidelity VIP - Contrafund Portfolio:
Service Class
Tax qualified ....................................... 399,662 13.865467 5,541,500 11%
Non-tax qualified ................................... 592,264 13.865467 8,212,017 11%
Fidelity VIP III - Balanced Portfolio:
Service Class
Tax qualified ....................................... 279,379 11.823447 3,303,223 4%
Non-tax qualified ................................... 376,324 11.823447 4,449,447 4%
</TABLE>
17
<PAGE> 18
<TABLE>
<CAPTION>
Fidelity VIPIII - Growth and Income Portfolio:
Service Class
<S> <C> <C> <C> <C>
Tax qualified ....................................... . 595,824 13.286548 7,916,444 7%
Non-tax qualified ................................... 829,693 13.286548 11,023,756 7%
Fidelity VIP III - Growth Opportunities
Portfolio:Service Class
Tax qualified ....................................... . 1,222,777 12.635454 15,450,343 6%
Non-tax qualified ................................... 1,546,979 12.635454 19,546,782 6%
Fidelity VIP III - Mid Cap Portfolio:
Service Class
Tax qualified ....................................... . 12,745 11.275385 143,705 13%(a)
Non-tax qualified ................................... 9,757 11.275385 110,014 13%(a)
ASSET FEE @ 1.05 RATE:
Fidelity VIP - Money Market Portfolio:
Tax qualified ....................................... . 163,673 10.594349 1,734,009 2%
Non-tax qualified ................................... 85,718 10.594349 908,126 2%
Fidelity VIP - Index 500 Portfolio:
Tax qualified ....................................... . 90,849 13.590628 1,234,695 11%
Non-tax qualified ................................... 179,267 13.590628 2,436,351 11%
Fidelity VIP II -
Investment Grade Bond Portfolio:
Tax qualified ....................................... . 58,284 10.444749 608,762 (2)%
Non-tax qualified ................................... 183,853 10.444749 1,920,298 (2)%
Fidelity VIP - Equity-Income Portfolio:
Service Class
Tax qualified ....................................... . 108,233 12.048043 1,303,996 12%
Non-tax qualified ................................... 175,827 12.048043 2,118,371 12%
Fidelity VIP - Growth Portfolio:Service Class
Tax qualified ....................................... . 72,887 15.078763 1,099,046 14%
Non-tax qualified ................................... 236,004 15.078763 3,558,648 14%
Fidelity VIP - High Income Portfolio:
Service Class
Tax qualified ....................................... . 105,924 9.884417 1,046,997 7%
Non-tax qualified ................................... 223,110 9.884417 2,205,312 7%
Fidelity VIP - Overseas Portfolio:
Service Class
Tax qualified ....................................... . 43,399 11.370997 493,490 8%
Non-tax qualified ................................... 74,080 11.370997 842,363 8%
Fidelity VIP II - Asset Manager Portfolio:
Service Class
Tax qualified ....................................... . 28,313 11.606789 328,623 5%
Non-tax qualified ................................... 42,017 11.606789 487,682 5%
Fidelity VIP II - Asset Manager
Growth Portfolio:Service Class
Tax qualified ....................................... . 36,219 12.052088 436,515 7%
Non-tax qualified ................................... 40,923 12.052088 493,208 7%
Fidelity VIP - Contrafund Portfolio:
Service Class
Tax qualified ....................................... . 74,822 13.855766 1,036,716 11%
Non-tax qualified ................................... 151,882 13.855766 2,104,441 11%
</TABLE>
18
<PAGE> 19
<TABLE>
<CAPTION>
Fidelity VIP III - Balanced Portfolio:
Service Class
<S> <C> <C> <C> <C>
Tax qualified ....................................... . 53,590 11.815171 633,175 4%
Non-tax qualified ................................... 93,979 11.815171 1,110,378 4%
Fidelity VIPIII - Growth and Income Portfolio:
Service Class
Tax qualified ....................................... . 101,820 13.277261 1,351,891 7%
Non-tax qualified ................................... 214,268 13.277261 2,844,892 7%
Fidelity VIP III - Growth Opportunities
Portfolio:Service Class
Tax qualified ....................................... . 226,005 12.626616 2,853,678 6%
Non-tax qualified ................................... 387,104 12.626616 4,887,814 6%
Fidelity VIP III - Mid Cap Portfolio:
Service Class
Non-tax qualified ................................... 455 11.272733 5,129 13%(a)
ASSET FEE @ 1.10 RATE:
Fidelity VIP - Index 500 Portfolio:
Non-tax qualified ................................... 296 10.133484 3,000 1%(a)
Fidelity VIP II -
Investment Grade Bond Portfolio:
Non-tax qualified ................................... 523 9.803885 5,127 (2)%(a)
Fidelity VIP - High Income Portfolio:
Service Class
Non-tax qualified ................................... 527 9.748674 5,138 (3)%(a)
Fidelity VIP III - Balanced Portfolio:
Service Class
Non-tax qualified ................................... 149 9.865276 1,470 (1)%(a)
ASSET FEE @ 1.20 RATE:
Fidelity VIP - Money Market Portfolio:
Tax qualified ....................................... . 2,395 10.059661 24,093 1%(a)
Fidelity VIP - Index 500 Portfolio:
Tax qualified ....................................... . 23 10.131851 233 1%(a)
Non-tax qualified ................................... 147 10.131851 1,489 1%(a)
Fidelity VIP - Contrafund Portfolio:
Service Class
Tax qualified ....................................... . 23 10.196019 235 2%(a)
Non-tax qualified ................................... 42 10.196019 428 2%(a)
Fidelity VIPIII - Growth and Income Portfolio:
Service Class
Non-tax qualified ................................... 1,048 9.998432 10,478 0%(a)
Fidelity VIP III - Growth Opportunities
Portfolio:Service Class
Tax qualified ....................................... . 23 10.179081 234 2%(a)
Non-tax qualified ................................... 43 10.179081 438 2%(a)
ASSET FEE @ 1.25 RATE:
Fidelity VIP - Equity-Income Portfolio:
Service Class
Non-tax qualified ................................... 257 9.965372 2,561 0%(a)
</TABLE>
19
<PAGE> 20
<TABLE>
<CAPTION>
Fidelity VIP II - Asset Manager Portfolio:
Service Class
<S> <C> <C> <C> <C>
Non-tax qualified ................................... 253 10.100418 2,555 1%(a)
Fidelity VIP II - Asset Manager
Growth Portfolio:Service Class
Non-tax qualified ................................... 254 10.182859 2,586 2%(a)
Fidelity VIP III - Balanced Portfolio:
Service Class
Non-tax qualified ................................... 255 9.862897 2,515 (1)%(a)
ASSET FEE @ 1.30 RATE:
Fidelity VIP - Equity-Income Portfolio:
Tax qualified ....................................... 161,030 15.121084 2,434,948 12%
Non-tax qualified ................................... 143,189 15.121084 2,165,173 12%
Fidelity VIP - Growth Portfolio:
Tax qualified ....................................... 162,068 18.189195 2,947,886 14%
Non-tax qualified ................................... 139,991 18.189195 2,546,324 14%
Fidelity VIP - High Income Portfolio:
Tax qualified ....................................... 482,150 12.026393 5,798,525 7%
Non-tax qualified ................................... 348,124 12.026393 4,186,676 7%
Fidelity VIP - Money Market Portfolio:
Tax qualified ....................................... 268,488 11.099462 2,980,072 2%
Non-tax qualified ................................... 161,000 11.099462 1,787,013 2%
Fidelity VIP - Overseas Portfolio:
Tax qualified ....................................... 298,568 13.846299 4,134,062 7%
Non-tax qualified ................................... 206,672 13.846299 2,861,642 7%
Fidelity VIP II - Asset Manager Portfolio:
Tax qualified ....................................... 30,367 13.849416 420,565 5%
Non-tax qualified ................................... 35,107 13.849416 486,211 5%
Fidelity VIP II -
Asset Manager Growth Portfolio:
Tax qualified ....................................... 31,965 14.819076 473,692 7%
Non-tax qualified ................................... 31,093 14.819076 460,770 7%
Fidelity VIP II - Contrafund Portfolio:
Tax qualified ....................................... 281,095 16.653548 4,681,229 11%
Non-tax qualified ................................... 199,867 16.653548 3,328,495 11%
Fidelity VIP - Index 500 Portfolio:
Tax qualified ....................................... 222,208 17.633552 3,918,316 11%
Non-tax qualified ................................... 135,864 17.633552 2,395,765 11%
Fidelity VIP II -
Investment Grade Bond Portfolio:
Tax qualified ....................................... 169,319 11.362745 1,923,929 (2)%
Non-tax qualified ................................... 94,462 11.362745 1,073,348 (2)%
Fidelity VIP III - Balanced Portfolio:
Tax qualified ....................................... 526,006 17.809048 9,367,666 4%
Non-tax qualified ................................... 378,452 17.809048 6,739,870 4%
Fidelity VIP III - Growth and Income Portfolio:
Tax qualified ....................................... 136,190 16.952354 2,308,741 7%
Non-tax qualified ................................... 107,201 16.952354 1,817,309 7%
Fidelity VIP III - Growth Opportunities Portfolio:
Tax qualified ....................................... 1,541,608 25.485371 39,288,452 6%
Non-tax qualified ................................... 1,568,491 25.485371 39,973,575 6%
</TABLE>
20
<PAGE> 21
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Fidelity VIP III - Mid Cap Portfolio:
Tax qualified ................................................. 672 11.269052 7,574 13%(a)
Non-tax qualified ............................................. 3,163 11.269052 35,642 13%(a)
Fidelity VIP - Growth Portfolio:Service Class
Tax qualified ................................................. 50 10.360520 518 4%(a)
Fidelity VIP III - Growth Opportunities
Portfolio:Service Class
Tax qualified ................................................. 51 10.177440 519 2%(a)
Asset fee @ 1.40 rate:
Fidelity VIP - Equity-Income Portfolio:
Tax qualified ................................................. 1,742,749 15.083732 26,287,159 12%
Non-tax qualified ............................................. 2,890,523 15.083732 43,599,874 12%
Fidelity VIP - Growth Portfolio:
Tax qualified ................................................. 1,383,215 18.144289 25,097,453 14%
Non-tax qualified ............................................. 2,669,128 18.144289 48,429,430 14%
Fidelity VIP - High Income Portfolio:
Tax qualified ................................................. 3,726,136 11.994025 44,691,368 7%
Non-tax qualified ............................................. 7,810,333 11.994025 93,677,329 7%
Fidelity VIP - Money Market Portfolio:
Tax qualified ................................................. 1,506,263 11.069578 16,673,696 2%
Non-tax qualified ............................................. 3,325,771 11.069578 36,814,881 2%
Fidelity VIP - Overseas Portfolio:
Tax qualified ................................................. 1,624,421 13.809042 22,431,698 7%
Non-tax qualified ............................................. 3,550,632 13.809042 49,030,826 7%
Fidelity VIP II - Asset Manager Portfolio:
Tax qualified ................................................. 396,272 13.815222 5,474,586 5%
Non-tax qualified ............................................. 791,608 13.815222 10,936,240 5%
Fidelity VIP II -
Asset Manager Growth Portfolio:
Tax qualified ................................................. 315,010 14.782497 4,656,634 7%
Non-tax qualified ............................................. 633,695 14.782497 9,367,594 7%
Fidelity VIP II - Contrafund Portfolio:
Tax qualified ................................................. 2,011,639 16.612423 33,418,198 10%
Non-tax qualified ............................................. 3,822,036 16.612423 63,493,279 10%
Fidelity VIP - Index 500 Portfolio:
Tax qualified ................................................. 1,270,180 17.590016 22,342,487 11%
Non-tax qualified ............................................. 2,776,715 17.590016 48,842,461 11%
Fidelity VIP II -
Investment Grade Bond Portfolio:
Tax qualified ................................................. 1,373,325 11.332154 15,562,730 (2)%
Non-tax qualified ............................................. 2,266,839 11.332154 25,688,169 (2)%
Fidelity VIP III - Balanced Portfolio:
Tax qualified ................................................. 2,542,213 17.728300 45,069,115 4%
Non-tax qualified ............................................. 5,837,102 17.728300 103,481,895 4%
Fidelity VIP III - Growth and Income Portfolio:
Tax qualified ................................................. 1,139,006 16.910480 19,261,138 7%
Non-tax qualified ............................................. 2,681,947 16.910480 45,353,011 7%
Fidelity VIP III - Growth Opportunities Portfolio:
Tax qualified ................................................. 8,269,753 25.369806 209,802,029 6%
Non-tax qualified ............................................. 19,077,272 25.369806 483,986,690 6%
</TABLE>
21
<PAGE> 22
<TABLE>
<CAPTION>
Asset fee @ 1.45 rate:
<S> <C> <C> <C> <C>
Fidelity VIP - Equity-Income Portfolio:
Tax qualified ....................................... 61,574 12.720146 783,230 12%
Non-tax qualified ................................... 137,504 12.720146 1,749,071 12%
Fidelity VIP - Growth Portfolio:
Tax qualified ....................................... 55,057 15.655432 861,941 14%
Non-tax qualified ................................... 155,728 15.655432 2,437,989 14%
Fidelity VIP - High Income Portfolio:
Tax qualified ....................................... 75,148 10.233139 769,000 7%
Non-tax qualified ................................... 115,392 10.233139 1,180,822 7%
Fidelity VIP - Money Market Portfolio:
Tax qualified ....................................... 42,286 10.639362 449,896 2%
Non-tax qualified ................................... 62,754 10.639362 667,663 2%
Fidelity VIP - Overseas Portfolio:
Tax qualified ....................................... 24,695 11.800541 291,414 7%
Non-tax qualified ................................... 33,650 11.800541 397,088 7%
Fidelity VIP II - Asset Manager Portfolio:
Tax qualified ....................................... 19,626 12.096659 237,409 5%
Non-tax qualified ................................... 38,891 12.096659 470,451 5%
Fidelity VIP II -
Asset Manager Growth Portfolio:
Tax qualified ....................................... 13,099 12.667454 165,931 7%
Non-tax qualified ................................... 17,103 12.667454 216,651 7%
Fidelity VIP II - Contrafund Portfolio:
Tax qualified ....................................... 50,506 14.080287 711,139 10%
Non-tax qualified ................................... 108,362 14.080287 1,525,768 10%
Fidelity VIP - Index 500 Portfolio:
Tax qualified ....................................... 41,580 14.533276 604,294 11%
Non-tax qualified ................................... 105,825 14.533276 1,537,984 11%
Fidelity VIP II -
Investment Grade Bond Portfolio:
Tax qualified ....................................... 10,348 10.621621 109,913 (2)%
Non-tax qualified ................................... 37,439 10.621621 397,663 (2)%
Fidelity VIP III - Balanced Portfolio:
Tax qualified ....................................... 30,738 12.400285 381,160 4%
Non-tax qualified ................................... 67,116 12.400285 832,258 4%
Fidelity VIP III - Growth and Income Portfolio:
Tax qualified ....................................... 53,918 14.234796 767,512 7%
Non-tax qualified ................................... 88,930 14.234796 1,265,900 7%
Fidelity VIP III - Growth Opportunities Portfolio:
Tax qualified ....................................... 146,290 13.491328 1,973,646 6%
Non-tax qualified ................................... 291,323 13.491328 3,930,334 6%
Asset fee @ 1.50 rate:
Fidelity VIP - Equity-Income Portfolio:
Tax qualified ....................................... 12,182 12.709487 154,827 12%
Non-tax qualified ................................... 31,633 12.709487 402,039 12%
Fidelity VIP - Growth Portfolio:
Tax qualified ....................................... 32,989 15.642316 516,024 14%
Non-tax qualified ................................... 17,021 15.642316 266,248 14%
Fidelity VIP - High Income Portfolio:
Tax qualified ....................................... 12,940 10.224548 132,306 7%
Non-tax qualified ................................... 40,739 10.224548 416,538 7%
</TABLE>
22
<PAGE> 23
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Fidelity VIP - Money Market Portfolio:
Tax qualified ......................................... 67,595 10.630386 718,561 2%
Non-tax qualified ..................................... 13,717 10.630386 145,817 2%
Fidelity VIP - Overseas Portfolio:
Tax qualified ......................................... 2,481 11.790637 29,253 7%
Non-tax qualified ..................................... 7,839 11.790637 92,427 7%
Fidelity VIP II - Asset Manager Portfolio:
Tax qualified ......................................... 2,150 12.086501 25,986 4%
Non-tax qualified ..................................... 14,039 12.086501 169,682 4%
Fidelity VIP II -
Asset Manager Growth Portfolio:
Tax qualified ......................................... 2,658 12.656811 33,642 7%
Non-tax qualified ..................................... 6,520 12.656811 82,522 7%
Fidelity VIP II - Contrafund Portfolio:
Tax qualified ......................................... 7,605 14.068473 106,991 10%
Non-tax qualified ..................................... 23,208 14.068473 326,501 10%
Fidelity VIP - Index 500 Portfolio:
Tax qualified ......................................... 11,347 14.521105 164,771 11%
Non-tax qualified ..................................... 40,289 14.521105 585,041 11%
Fidelity VIP II -
Investment Grade Bond Portfolio:
Tax qualified ......................................... 5,648 10.612709 59,941 (2)%
Non-tax qualified ..................................... 16,325 10.612709 173,252 (2)%
Fidelity VIP III - Balanced Portfolio:
Tax qualified ......................................... 1,965 12.389879 24,346 4%
Non-tax qualified ..................................... 9,787 12.389879 121,260 4%
Fidelity VIP III - Growth and Income Portfolio:
Tax qualified ......................................... 8,428 14.222855 119,870 7%
Non-tax qualified ..................................... 18,265 14.222855 259,780 7%
Fidelity VIP III - Growth Opportunities Portfolio:
Tax qualified ......................................... 71,578 13.480007 964,872 6%
Non-tax qualified ..................................... 62,743 13.480007 845,776 6%
Reserves for annuity contracts in payout phase:
Tax qualified ......................................... 40,484
Non-tax qualified ..................................... 170,949
--------------
$2,119,954,388
==============
</TABLE>
(a) This investment option was not being utilized for the entire
period.Accordingly, the period return was computed for such period as the
investment option was utilized.
(b) The period return does not include contract charges satisfied by
surrendering units.
23
<PAGE> 24
[Fidelity Investments Logo]
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.
Nationwide(R) is a registered federal service mark of
Nationwide Mutual Insurance Company.