<PAGE> 1
NATIONWIDE(R)
FIDELITY
ADVISOR
VARIABLE
ACCOUNT
ANNUAL REPORT
FIDELITY
ADVISOR
ANNUITIES(SM)
DECEMBER 31, 1999
<PAGE> 2
[NATIONWIDE LIFE INSURANCE COMPANY LOGO]
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you
the 1999 annual report of the Nationwide Fidelity Advisor
Variable Account.
During 1999 equity investments extended their spirited advance
to a fifth consecutive year. The S&P 500 was the laggard of the
major indices with a year-over-year change of a respectable
19.53%. The NASDAQ topped the list at over 85% with the other
indices falling into line nearer the lower end of the range.
Fixed earnings investments did not fare as well in the current
environment of rising interest rates.
The U.S. economy remains strong, inflation remains docile and
the available labor pool is incessantly tight. Against this
good-news-bad-news backdrop, the Federal Reserve is increasingly
concerned that recent productivity gains will subside and ignite
wage inflation. To date, the Fed has hiked short-term interest
rates a quarter percentage point on four occasions since last
June. Prospectively, they may well become more aggressive in
their preemptive efforts to dampen economic growth and avoid a
new round of inflation.
We believe some caution may be warranted at this juncture.
Certain market sectors are well extended and may inevitably
retreat to less lofty valuation levels. However, we remain
bullish for the long-term prospects of financial assets. Your
variable insurance contract provides an excellent resource to
help you achieve your long-term retirement savings and financial
planning objectives.
We appreciate your trust in our company and in our investment
products, and we welcome and encourage your feedback.
/s/Joseph J. Gasper
Joseph J. Gasper, President
February 10, 2000
3
<PAGE> 3
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1999
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at market value:
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
2,902,368 shares (cost $69,467,151) .............................................................. $ 74,619,890
Fidelity VIP - Growth Portfolio (FidVIPGr)
2,312,478 shares (cost $96,013,107) .............................................................. 127,024,410
Fidelity VIP - High Income Portfolio (FidVIPHI)
12,706,546 shares (cost $150,987,101) ............................................................ 143,711,038
Fidelity VIP - Money Market Portfolio (FidVIPMMkt)
78,687,079 shares (cost $78,687,079) ............................................................. 78,687,079
Fidelity VIP - Overseas Portfolio (FidVIPOv)
3,754,242 shares (cost $71,830,878) .............................................................. 103,016,398
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
1,061,031 shares (cost $18,298,133) .............................................................. 19,809,453
Fidelity VIP-II - Asset Manager: Growth Portfolio (FidVIPAMGr)
856,851 shares (cost $13,594,052) ................................................................ 15,748,921
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
4,296,593 shares (cost $89,038,937) .............................................................. 125,245,687
Fidelity VIP-II - Index 500 Portfolio (FidVIPI500)
1,015,071 shares (cost $136,133,517) ............................................................. 169,933,008
Fidelity VIP-II - Investment Grade Bond Portfolio (FidVIPIGBd)
5,438,385 shares (cost $66,793,448) .............................................................. 66,130,759
Fidelity VIP-III - Balanced Portfolio (FidVIPBal)
9,583,535 shares (cost $117,309,481) ............................................................. 153,336,553
Fidelity VIP-III - Growth and Income Portfolio (FidVIPGrIn)
4,236,017 shares (cost $58,229,067) .............................................................. 73,283,087
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
30,567,233 shares (cost $477,068,635) ............................................................ 707,631,441
Fidelity VIP-III - Mid Cap Portfolio (FidVIPMCap)
17,682 shares (cost $232,419) .................................................................... 269,656
Fidelity VIP - Equity-Income Portfolio: Service Class (FidVIPEIS)
1,573,819 shares (cost $39,558,028) .............................................................. 40,384,186
Fidelity VIP - Growth Portfolio: Service Class (FidVIPGrS)
1,682,874 shares (cost $73,995,915) .............................................................. 92,221,471
Fidelity VIP - High Income Portfolio: Service Class (FidVIPHIS)
3,559,048 shares (cost $41,014,450) .............................................................. 40,146,057
</TABLE>
4
<PAGE> 4
<TABLE>
<CAPTION>
<S> <C>
Fidelity VIP - Overseas Portfolio: Service Class (FidVIPOvS)
749,598 shares (cost $15,869,957) ................................................................ 20,523,983
Fidelity VIP-II - Asset Manager Portfolio: Service Class (FidVIPAMS)
607,331 shares (cost $10,496,262) ................................................................ 11,290,278
Fidelity VIP-II - Asset Manager: Growth Portfolio: Service Class (FidVIPAMGrS)
439,736 shares (cost $7,186,090) ................................................................. 8,038,382
Fidelity VIP-II - Contrafund Portfolio: Service Class (FidVIPConS)
1,933,703 shares (cost $46,848,303) .............................................................. 56,270,761
Fidelity VIP-III - Balanced Portfolio: Service Class (FidVIPBalS)
1,669,806 shares (cost $25,880,147) .............................................................. 26,616,704
Fidelity VIP-III - Growth and Income Portfolio: Service Class (FidVIPGrInS)
3,425,013 shares (cost $54,057,029) .............................................................. 59,047,225
Fidelity VIP-III - Growth Opportunities Portfolio: Service Class (FidVIPGrOpS)
4,507,579 shares (cost $97,287,198) .............................................................. 104,215,235
Fidelity VIP-III - Mid Cap Portfolio: Service Class (FidVIPMCapS)
281,363 shares (cost $3,662,819) ................................................................. 4,287,971
---------------
Total investments ............................................................................. 2,321,489,633
Accounts receivable..................................................................................... 1,738
---------------
Total assets................................................................................... 2,321,491,371
ACCOUNTS PAYABLE........................................................................................... 2,338
---------------
CONTRACT OWNERS' EQUITY (NOTE 4)........................................................................... $ 2,321,489,033
===============
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
5
<PAGE> 5
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
- --------------------------
STATEMENTS OF OPERATIONS
- --------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
TOTAL EQUITY-INCOME PORTFOLIO
-------------------------- --------------------------
1999 1998 1999 1998
------------ ------------ ------------ ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 39,919,462 28,746,293 993,026 600,150
Mortality, expense and administration
charges (note 2)..................... (27,195,016) (20,894,395) (1,026,362) (822,437)
------------- ------------- ------------- -------------
Net investment activity.............. 12,724,446 7,851,898 (33,336) (222,287)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold.. 355,318,443 221,265,915 6,778,520 3,724,216
Cost of mutual fund shares sold........ (288,004,397) (192,745,675) (5,148,569) (3,440,172)
------------- ------------- ------------- -------------
Realized gain (loss) on investments.. 67,314,046 28,520,240 1,629,951 284,044
Change in unrealized gain (loss)
on investments....................... 69,194,861 152,688,719 (708,537) 2,285,323
------------- ------------- ------------- -------------
Net gain (loss) on investments....... 136,508,907 181,208,959 921,414 2,569,367
------------- ------------- ------------- -------------
Reinvested capital gains............... 42,261,919 51,573,229 2,195,110 2,135,830
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... 191,495,272 240,634,086 3,083,188 4,482,910
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 504,325,224 439,055,602 9,900,333 24,438,255
Transfers between funds................ - - (618,361) 3,516,796
Redemptions............................ (190,416,697) (95,841,935) (4,720,663) (4,045,164)
Annuity benefits....................... (85,693) (45,976) (1,431) (1,314)
Annual contract maintenance charge
(note 2)............................. (158,183) (135,080) (5,876) (3,209)
Contingent deferred sales charges
(note 2)............................. (3,988,925) (1,866,659) (100,888) (128,773)
Adjustments to maintain reserves....... 5,308 4,599 722 (823)
------------- ------------- ------------- -------------
Net equity transactions............ 309,681,034 341,170,551 4,453,836 23,775,768
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 501,176,306 581,804,637 7,537,024 28,258,678
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.... $2,321,489,033 1,820,312,727 74,620,680 67,083,656
============= ============= ============= =============
</TABLE>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
- --------------------------
STATEMENTS OF OPERATIONS
- --------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<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)..................... (1,152,699) (533,598) (2,116,727) (2,222,960)
------------- -------------- -------------- -------------
Net investment activity.............. (1,049,332) (400,313) 12,054,858 8,639,399
------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 6,939,156 2,870,100 52,776,329 34,158,097
Cost of mutual fund shares sold........ (4,828,896) (2,481,565) (55,942,989) (34,536,377)
------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 2,110,260 388,535 (3,166,660) (378,280)
Change in unrealized gain (loss)
on investments....................... 20,166,961 9,302,636 767,153 (24,528,745)
------------- -------------- -------------- -------------
Net gain (loss) on investments....... 22,277,221 9,691,171 (2,399,507) (24,907,025)
------------- -------------- -------------- -------------
Reinvested capital gains............... 6,499,195 3,486,467 529,779 6,902,124
------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... 27,727,084 12,777,325 10,185,130 (9,365,502)
------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 16,137,604 16,985,566 9,395,187 28,906,593
Transfers between funds................ 33,381,036 4,184,630 (15,621,078) (3,894,607)
Redemptions............................ (6,117,319) (1,597,186) (14,372,343) (10,314,646)
Annuity benefits....................... - - (4,954) (1,828)
Annual contract maintenance charge
(note 2)............................. (6,152) (2,420) (9,612) (9,856)
Contingent deferred sales charges
(note 2)............................. (161,209) (33,687) (279,317) (221,320)
Adjustments to maintain reserves....... 1,147 433 1,314 (509)
------------- -------------- -------------- -------------
Net equity transactions............ 43,235,107 19,537,336 (20,890,803) 14,463,827
------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 70,962,191 32,314,661 (10,705,673) 5,098,325
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 56,063,413 23,748,752 154,419,836 149,321,511
------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 127,025,604 56,063,413 143,714,163 154,419,836
============= ============== ============== =============
</TABLE>
6
<PAGE> 6
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ---------------------------------------
STATEMENTS OF OPERATIONS, continued
- ---------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO OVERSEAS PORTFOLIO
---------------------------- ---------------------------
1999 1998 1999 1998
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 3,667,236 2,729,931 1,213,755 1,390,058
Mortality, expense and administration
charges (note 2)..................... (952,178) (697,090) (1,151,010) (1,101,471)
------------- ------------- ------------- -------------
Net investment activity.............. 2,715,058 2,032,841 62,745 288,587
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold. 90,941,316 86,064,942 16,874,287 9,164,560
Cost of mutual fund shares sold........ (90,941,316) (86,064,942) (14,193,657) (8,380,638)
------------- ------------- ------------- -------------
Realized gain (loss) on investments.. - - 2,680,630 783,922
Change in unrealized gain (loss)
on investments....................... - - 25,185,085 2,431,247
------------- ------------- ------------- -------------
Net gain (loss) on investments....... - - 27,865,715 3,215,169
------------- ------------- ------------- -------------
Reinvested capital gains............... - - 1,957,670 4,097,014
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... 2,715,058 2,032,841 29,886,130 7,600,770
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 26,511,672 36,787,840 3,262,244 8,735,152
Transfers between funds................ 9,240,481 (10,592,420) (2,781,022) (1,473,900)
Redemptions............................ (22,510,342) (8,446,229) (6,667,363) (4,144,730)
Annuity benefits....................... - - - -
Annual contract maintenance charge
(note 2)............................. (3,937) (2,787) (7,815) (7,644)
Contingent deferred sales charges
(note 2)............................. (532,748) (175,051) (122,323) (92,445)
Adjustments to maintain reserves....... 1,229 184 3,278 542
------------- ------------- ------------- -------------
Net equity transactions............ 12,706,355 17,571,537 (6,313,001) 3,016,975
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 15,421,413 19,604,378 23,573,129 10,617,745
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 63,266,840 43,662,462 79,447,569 68,829,824
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 78,688,253 63,266,840 103,020,698 79,447,569
============= ============= ============= =============
</TABLE>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ---------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ---------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<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)..................... (246,299) (181,029) (205,584) (152,576)
------------- -------------- -------------- -------------
Net investment activity.............. 268,804 169,836 124,730 30,251
------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold. 2,724,342 2,121,060 2,272,692 905,852
Cost of mutual fund shares sold........ (2,487,275) (1,920,469) (1,823,515) (823,932)
------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 237,067 200,591 449,177 81,920
Change in unrealized gain (loss)
on investments....................... 530,833 209,940 769,030 583,636
------------- -------------- -------------- -------------
Net gain (loss) on investments....... 767,900 410,531 1,218,207 665,556
------------- -------------- -------------- -------------
Reinvested capital gains............... 652,464 1,052,595 547,838 854,987
------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... 1,689,168 1,632,962 1,890,775 1,550,794
------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 2,953,233 4,059,284 1,761,923 3,545,378
Transfers between funds................ 1,397,881 109,848 266,037 202,313
Redemptions............................ (1,361,279) (658,699) (1,359,200) (345,606)
Annuity benefits....................... (20,740) (16,169) - -
Annual contract maintenance charge
(note 2)............................. (1,232) (606) (1,216) (673)
Contingent deferred sales charges
(note 2)............................. (16,832) (5,683) (33,461) (4,350)
Adjustments to maintain reserves....... (227) (2,123) (402) 66
------------- -------------- -------------- -------------
Net equity transactions............ 2,950,804 3,485,852 633,681 3,397,128
------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 4,639,972 5,118,814 2,524,456 4,947,922
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 15,168,982 10,050,168 13,224,069 8,276,147
------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 19,808,954 15,168,982 15,748,525 13,224,069
============= ============== ============== =============
(Continued)
</TABLE>
7
<PAGE> 7
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
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)..................... (1,440,777) (932,430) (1,520,745) (673,776)
------------- ------------- ------------- -------------
Net investment activity.............. (1,012,288) (557,445) (725,514) (304,560)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold.. 7,844,113 4,899,088 5,985,851 2,653,129
Cost of mutual fund shares sold........ (5,051,434) (4,114,192) (3,713,122) (2,072,374)
------------- ------------- ------------- -------------
Realized gain (loss) on investments.. 2,792,679 784,896 2,272,729 580,755
Change in unrealized gain (loss)
on investments....................... 16,939,484 14,022,891 20,210,817 10,718,449
------------- ------------- ------------- -------------
Net gain (loss) on investments....... 19,732,163 14,807,787 22,483,546 11,299,204
------------- ------------- ------------- -------------
Reinvested capital gains............... 3,142,250 2,758,815 539,621 855,170
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... 21,862,125 17,009,157 22,297,653 11,849,814
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 15,425,435 17,410,532 68,490,724 29,555,745
Transfers between funds................ 12,598,577 1,764,382 11,972,027 7,332,209
Redemptions............................ (9,111,482) (2,918,682) (7,784,885) (2,251,651)
Annuity benefits....................... (5,188) (1,385) (4,205) -
Annual contract maintenance charge
(note 2)............................. (9,550) (6,037) (7,966) (3,966)
Contingent deferred sales charges
(note 2)............................. (241,426) (55,124) (192,353) (35,351)
Adjustments to maintain reserves....... 1,500 441 10,932 87
------------- ------------- ------------- -------------
Net equity transactions............ 18,657,866 16,194,127 72,484,274 34,597,073
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 40,519,991 33,203,284 94,781,927 46,446,887
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 84,727,181 51,523,897 75,161,985 28,715,098
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 125,247,172 84,727,181 169,943,912 75,161,985
============= ============= ============= =============
</TABLE>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<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)..................... (797,506) (533,396) (2,269,625) (2,176,307)
------------- -------------- -------------- -------------
Net investment activity.............. 1,427,711 863,796 1,525,651 1,360,793
------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 13,760,323 5,690,626 22,627,268 8,612,916
Cost of mutual fund shares sold........ (13,257,389) (5,213,813) (15,722,285) (6,109,489)
------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 502,934 476,813 6,904,983 2,503,427
Change in unrealized gain (loss)
on investments....................... (4,009,453) 1,274,245 (7,941,415) 13,665,547
------------- -------------- -------------- -------------
Net gain (loss) on investments....... (3,506,519) 1,751,058 (1,036,432) 16,168,974
------------- -------------- -------------- -------------
Reinvested capital gains............... 698,107 165,769 4,410,726 5,403,903
------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... (1,380,701) 2,780,623 4,899,945 22,933,670
------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 22,958,668 17,009,962 8,215,363 12,361,983
Transfers between funds................ (3,773,589) 8,470,608 (9,589,452) (1,896,771)
Redemptions............................ (5,679,223) (2,606,263) (15,577,451) (9,908,416)
Annuity benefits....................... (18,508) (15,041) (11,164) (1,259)
Annual contract maintenance charge
(note 2)............................. (2,389) (2,087) (14,592) (15,153)
Contingent deferred sales charges
(note 2)............................. (97,638) (50,558) (268,374) (187,285)
Adjustments to maintain reserves....... 668 (1,468) (7,121) 1,390
------------- -------------- -------------- -------------
Net equity transactions............ 13,387,989 22,805,153 (17,252,791) 354,489
------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 12,007,288 25,585,776 (12,352,846) 23,288,159
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 54,123,958 28,538,182 165,682,211 142,394,052
------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 66,131,246 54,123,958 153,329,365 165,682,211
============= ============== ============== =============
</TABLE>
8
<PAGE> 8
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
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)..................... (948,551) (581,739) (10,462,359) (9,645,696)
------------- ------------- ------------- -------------
Net investment activity.............. (575,793) (581,739) (2,714,282) (2,827,371)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold.. 5,802,414 1,675,936 105,656,801 53,776,742
Cost of mutual fund shares sold........ (3,554,954) (1,294,541) (57,792,437) (31,095,663)
------------- ------------- ------------- -------------
Realized gain (loss) on investments.. 2,247,460 381,395 47,864,364 22,681,079
Change in unrealized gain (loss)
on investments....................... 2,419,029 10,320,823 (39,675,231) 99,720,539
------------- ------------- ------------- -------------
Net gain (loss) on investments....... 4,666,489 10,702,218 8,189,133 122,401,618
------------- ------------- ------------- -------------
Reinvested capital gains............... 745,516 158,758 14,485,535 23,701,797
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... 4,836,212 10,279,237 19,960,386 143,276,044
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 12,202,803 15,826,845 35,348,699 77,524,904
Transfers between funds................ 5,105,328 7,690,493 (49,733,277) (19,480,824)
Redemptions............................ (6,070,004) (2,487,061) (71,916,086) (43,447,338)
Annuity benefits....................... (2,553) - (16,950) (8,980)
Annual contract maintenance charge
(note 2)............................. (4,794) (2,083) (82,987) (78,559)
Contingent deferred sales charges
(note 2)............................. (138,826) (28,510) (1,433,194) (833,269)
Adjustments to maintain reserves....... (95) 570 (11,788) 5,680
------------- ------------- ------------- -------------
Net equity transactions............ 11,091,859 21,000,254 (87,845,583) 13,681,614
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 15,928,071 31,279,491 (67,885,197) 156,957,658
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 57,354,937 26,075,446 775,505,231 618,547,573
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 73,283,008 57,354,937 707,620,034 775,505,231
============= ============= ============= =============
</TABLE>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<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)..................... (672) - (290,562) (84,773)
------------- -------------- -------------- -------------
Net investment activity.............. (672) - 7,758 (84,773)
------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 932 - 1,839,482 655,853
Cost of mutual fund shares sold........ (799) - (1,818,247) (673,141)
------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 133 - 21,235 (17,288)
Change in unrealized gain (loss)
on investments....................... 37,237 - 140,395 685,763
------------- -------------- -------------- -------------
Net gain (loss) on investments....... 37,370 - 161,630 668,475
------------- -------------- -------------- -------------
Reinvested capital gains............... 1,264 - 659,443 -
------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... 37,962 - 828,831 583,702
------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 40,902 - 23,779,450 18,948,835
Transfers between funds................ 182,565 - (1,788,457) 91,604
Redemptions............................ (377) - (1,642,855) (375,768)
Annuity benefits....................... - - - -
Annual contract maintenance charge
(note 2)............................. (65) - - -
Contingent deferred sales charges
(note 2)............................. (8) - (39,300) (1,837)
Adjustments to maintain reserves....... 8,682 - (384) (21)
------------- -------------- -------------- -------------
Net equity transactions............ 231,699 - 20,308,454 18,662,813
------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 269,661 - 21,137,285 19,246,515
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - 19,246,515 -
------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 269,661 - 40,383,800 19,246,515
============= ============== ============== =============
</TABLE>
(Continued)
9
<PAGE> 9
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
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)..................... (468,624) (70,401) (295,991) (98,519)
------------- ------------- ------------- -------------
Net investment activity.............. (428,098) (70,401) 1,664,192 (98,519)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold.. 1,602,670 390,810 1,945,198 1,922,952
Cost of mutual fund shares sold........ (1,268,901) (352,615) (2,206,986) (2,195,994)
------------- ------------- ------------- -------------
Realized gain (loss) on investments.. 333,769 38,195 (261,788) (273,042)
Change in unrealized gain (loss)
on investments....................... 15,360,977 2,864,579 228,456 (1,096,849)
------------- ------------- ------------- -------------
Net gain (loss) on investments....... 15,694,746 2,902,774 (33,332) (1,369,891)
------------- ------------- ------------- -------------
Reinvested capital gains............... 2,548,095 - 73,278 -
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... 17,814,743 2,832,373 1,704,138 (1,468,410)
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 52,001,832 15,833,951 22,326,324 22,844,703
Transfers between funds................ 5,978,794 979,486 (1,792,562) (1,225,535)
Redemptions............................ (2,836,596) (312,595) (1,696,493) (500,261)
Annuity benefits....................... - - - -
Annual contract maintenance charge
(note 2)............................. - - - -
Contingent deferred sales charges
(note 2)............................. (67,454) (3,166) (42,576) (3,207)
Adjustments to maintain reserves....... 20 117 (173) (68)
------------- ------------- ------------- -------------
Net equity transactions............ 55,076,596 16,497,793 18,794,520 21,115,632
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 72,891,339 19,330,166 20,498,658 19,647,222
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 19,330,166 - 19,647,222 -
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 92,221,505 19,330,166 40,145,880 19,647,222
============= ============= ============= =============
</TABLE>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- --------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- --------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<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)..................... (102,725) (24,548) (72,947) (11,681)
------------- -------------- -------------- -------------
Net investment activity.............. (1,888) (24,548) 62,005 (11,681)
------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 1,766,815 282,331 1,744,637 71,477
Cost of mutual fund shares sold........ (1,713,117) (301,072) (1,708,284) (73,296)
------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 53,698 (18,741) 36,353 (1,819)
Change in unrealized gain (loss)
on investments....................... 4,550,431 103,595 567,272 226,745
------------- -------------- -------------- -------------
Net gain (loss) on investments....... 4,604,129 84,854 603,625 224,926
------------- -------------- -------------- -------------
Reinvested capital gains............... 162,640 - 170,940 -
------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... 4,764,881 60,306 836,570 213,245
------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 8,034,832 5,217,109 6,690,715 3,392,283
Transfers between funds................ 2,565,902 653,623 249,737 135,795
Redemptions............................ (684,205) (66,607) (204,064) (22,375)
Annuity benefits....................... - - - -
Annual contract maintenance charge
(note 2)............................. - - - -
Contingent deferred sales charges
(note 2)............................. (21,432) (416) (1,268) (354)
Adjustments to maintain reserves....... 149 (10) (65) (5)
------------- -------------- -------------- -------------
Net equity transactions............ 9,895,246 5,803,699 6,735,055 3,505,344
------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 14,660,127 5,864,005 7,571,625 3,718,589
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 5,864,005 - 3,718,589 -
------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 20,524,132 5,864,005 11,290,214 3,718,589
============= ============== ============== =============
</TABLE>
10
<PAGE> 10
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
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)..................... (51,315) (9,642) (313,528) (53,824)
------------- ------------- ------------- -------------
Net investment activity.............. 17,114 (9,642) (233,020) (53,824)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold.. 802,884 219,864 1,106,117 194,844
Cost of mutual fund shares sold........ (762,726) (231,538) (901,194) (190,062)
------------- ------------- ------------- -------------
Realized gain (loss) on investments.. 40,158 (11,674) 204,923 4,782
Change in unrealized gain (loss)
on investments....................... 648,775 203,517 7,493,236 1,929,222
------------- ------------- ------------- -------------
Net gain (loss) on investments....... 688,933 191,843 7,698,159 1,934,004
------------- ------------- ------------- -------------
Reinvested capital gains............... 113,492 - 590,393 -
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... 819,539 182,201 8,055,532 1,880,180
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 5,004,654 2,398,093 32,606,438 11,884,096
Transfers between funds................ (34,469) (35,776) 2,642,289 1,287,064
Redemptions............................ (248,840) (46,097) (1,829,360) (222,049)
Annuity benefits....................... - - - -
Annual contract maintenance charge
(note 2)............................. - - - -
Contingent deferred sales charges
(note 2)............................. (857) (60) (33,171) (326)
Adjustments to maintain reserves....... (58) (14) (232) 84
------------- ------------- ------------- -------------
Net equity transactions............ 4,720,430 2,316,146 33,385,964 12,948,869
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 5,539,969 2,498,347 41,441,496 14,829,049
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 2,498,347 - 14,829,049 -
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 8,038,316 2,498,347 56,270,545 14,829,049
============= ============= ============= =============
</TABLE>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
YEARS ENDED DECEMBER 31, 1999 AND 1998
<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)..................... (180,232) (32,398) (376,339) (64,178)
------------- -------------- -------------- -------------
Net investment activity.............. 80,065 (32,398) (244,796) (64,178)
------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.. 616,455 235,493 868,921 801,099
Cost of mutual fund shares sold........ (595,209) (233,390) (747,360) (781,432)
------------- -------------- -------------- -------------
Realized gain (loss) on investments.. 21,246 2,103 121,561 19,667
Change in unrealized gain (loss)
on investments....................... 186,954 549,603 2,931,577 2,058,619
------------- -------------- -------------- -------------
Net gain (loss) on investments....... 208,200 551,706 3,053,138 2,078,286
------------- -------------- -------------- -------------
Reinvested capital gains............... 302,507 - 263,087 -
------------- -------------- -------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... 590,772 519,308 3,071,429 2,014,108
------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 18,024,696 8,771,958 38,417,327 15,905,391
Transfers between funds................ (317,408) 389,137 1,847,772 692,100
Redemptions............................ (1,210,011) (130,919) (2,606,487) (251,704)
Annuity benefits....................... - - - -
Annual contract maintenance charge
(note 2)............................. - - - -
Contingent deferred sales charges
(note 2)............................. (20,126) (636) (42,609) (160)
Adjustments to maintain reserves....... 14 (59) (819) 48
------------- -------------- -------------- -------------
Net equity transactions............ 16,477,165 9,029,481 37,615,184 16,345,675
------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 17,067,937 9,548,789 40,686,613 18,359,783
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 9,548,789 - 18,359,783 -
------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 26,616,726 9,548,789 59,046,396 18,359,783
============= ============== ============== =============
</TABLE>
(Continued)
11
<PAGE> 11
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ---------------------------------------
STATEMENTS OF OPERATIONS, Continued
- ---------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
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)..................... (743,471) (189,926) (8,188) -
------------- ------------- ------------- -------------
Net investment activity.............. (259,038) (189,926) (8,188) -
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold.. 1,315,160 173,928 725,760 -
Cost of mutual fund shares sold........ (1,142,684) (164,968) (681,052) -
------------- ------------- ------------- -------------
Realized gain (loss) on investments.. 172,476 8,960 44,708 -
Change in unrealized gain (loss)
on investments....................... 1,770,643 5,157,394 625,152 -
------------- ------------- ------------- -------------
Net gain (loss) on investments....... 1,943,119 5,166,354 669,860 -
------------- ------------- ------------- -------------
Reinvested capital gains............... 946,847 - 26,122 -
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners equity resulting from
operations....................... 2,630,928 4,976,428 687,794 -
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 62,971,895 40,711,144 1,862,271 -
Transfers between funds................ (3,133,553) 1,099,745 1,754,802 -
Redemptions............................ (4,193,116) (741,889) (16,653) -
Annuity benefits....................... - - - -
Annual contract maintenance charge
(note 2)............................. - - - -
Contingent deferred sales charges
(note 2)............................. (101,294) (5,091) (241) -
Adjustments to maintain reserves....... (2,952) 57 (31) -
------------- ------------- ------------- -------------
Net equity transactions............ 55,540,980 41,063,966 3,600,148 -
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 58,171,908 46,040,394 4,287,942 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 46,040,394 - - -
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 104,212,302 46,040,394 4,287,942 -
============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
12
<PAGE> 12
- --------------------------------------------------------------------------------
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
(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 (FidVIPEI)
Fidelity VIP - Growth Portfolio (FidVIPGr)
Fidelity VIP - High Income Portfolio (FidVIPHI)
Fidelity VIP - Money Market Portfolio (FidVIPMMkt)
(also available in the Fidelity Advisor Generations product)
Fidelity VIP - Overseas Portfolio (FidVIPOv)
Portfolios of the Fidelity Variable Insurance Products Fund
II(Fidelity VIP-II);
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
Fidelity VIP-II - Asset Manager: Growth Portfolio
(FidVIPAMGr)
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
Fidelity VIP-II - Index 500 Portfolio (FidVIPI500)
(also available in the Fidelity Advisor Generations product)
Fidelity VIP-II - Investment Grade Bond Portfolio (FidVIPIGBd)
(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 (FidVIPBal)
Fidelity VIP-III - Growth and Income Portfolio (FidVIPGrIn)
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
Fidelity VIP-III - Mid Cap Portfolio (FidVIPMCap)
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
(FidVIPEIS)
Fidelity VIP - Growth Portfolio: Service Class (FidVIPGrS)
Fidelity VIP - High Income Portfolio: Service Class (FidVIPHIS)
Fidelity VIP - Overseas Portfolio: Service Class (FidVIPOvS)
Portfolios of the Fidelity Variable Insurance Products Fund
II (Fidelity VIP-II);
Fidelity VIP-II - Asset Manager Portfolio: Service Class
(FidVIPAMS)
Fidelity VIP-II - Asset Manager: Growth Portfolio: Service
Class (FidVIPAMGrS)
Fidelity VIP-II - Contrafund Portfolio: Service Class
(FidVIPConS)
(Continued)
13
<PAGE> 13
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
Portfolios of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Balanced Portfolio: Service Class
(FidVIPBalS)
Fidelity VIP-III - Growth and Income Portfolio: Service Class
(FidVIPGrInS)
Fidelity VIP-III - Growth Opportunities Portfolio: Service
Class (FidVIPGrOpS)
Fidelity VIP-III - Mid Cap Portfolio: Service Class
(FidVIPMCapS)
At December 31, 1999, 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. Consequently, the
investment performance of publicly traded mutual funds and any
corresponding underlying mutual funds may differ substantially.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at December 31, 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.
(f) Calculation of Annuity Reserves
Annuity reserves are computed for contracts in the variable payout
stage according to industry standard mortality tables. The assumed
investment return is 3.5 percent unless the annuitant elects otherwise,
in which case the rate may vary from 3.5 percent to 7 percent, as
regulated by the laws of the respective states. The mortality risk is
fully borne by the Company and may result in additional amounts being
transferred into the Account by the Company to cover greater longevity
of annuitants than expected. Conversely, if reserves exceed amounts
required, transfers may be made to the Company.
14
<PAGE> 14
(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.
The following contract charges are deducted by the Company:
For Fidelity Advisor Generations Annuity contracts a mortality and expense
risk charge assessed through the daily unit value calculation that ranges
from an annual rate of .95% to a maximum of 2.20% if all permissible rider
options are utilized. For this contract, the rider options include: (a)
reduced purchase payment; (b) five year CDSC; (c) CDSC waiver; (d) death
benefit and (e) guaranteed minimum income benefit.
For Fidelity Advisor Annuity Select contracts a mortality risk, expense
risk and administration charge assessed through the daily unit value
calculation that ranges from an annual rate of 1.40% to a maximum of 1.55%
if the death benefit option is utilized.
For Fidelity Advisor Annuity Classic contracts a mortality risk, expense
risk and administration charge assessed through the daily unit value
calculation equal to an annual rate of 1.30%. Additionally, a contract
maintenance charge of up to $30, dependent upon contract type and issue
date, is satisfied by surrendering units.
The following table provides mortality, expense and administration charges
by asset fee rate for the year ended December 31, 1999:
<TABLE>
<CAPTION>
TOTAL FidVIPEI FidVIPGr FidVIPHI FidVIPMMkt
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95%........... $ 1,712,052 - - - 81,633
1.00%........... 1,549,618 - - - 49,462
1.05%........... 408,890 - - - 26,980
1.10%........... 2,810 - - - 109
1.15%........... 5,974 - - - 12
1.20%........... 845 - - - 114
1.25%........... 773 - - - 24
1.30%........... 1,874,456 58,541 73,477 125,304 51,843
1.40%........... 21,197,887 926,141 1,018,226 1,956,367 714,208
1.45%........... 339,449 33,374 48,422 26,775 16,137
1.50%........... 102,135 8,306 12,574 8,281 11,656
1.60%........... 96 - - - -
1.65%........... 3 - - - -
1.85%........... 28 - - - -
------------ ------------ ------------ ------------ ------------
Total....... $ 27,195,016 1,026,362 1,152,699 2,116,727 952,178
============ ============ ============ ============ ============
FidVIPov FidVIPAM FidVIPAMGr FidVIPCon FidVIPI500
------------ ------------ ------------ ------------ ------------
0.95%........... $ - - - - 251,973
1.00%........... - - - - 160,189
1.05%........... - - - - 35,886
1.10%........... - - - - 442
1.15%........... - - - - 64
1.20%........... - - - - 140
1.25%........... - - - - 54
1.30%........... 95,693 11,508 10,887 102,254 79,082
1.40%........... 1,043,235 223,408 188,280 1,301,653 953,425
1.45%........... 9,978 8,592 4,787 30,854 28,682
1.50%........... 2,104 2,791 1,630 6,016 10,755
1.60%........... - - - - 38
1.65%........... - - - - 1
1.85%........... - - - - 14
------------ ------------ ------------ ------------ ------------
Total....... $ 1,151,010 246,299 205,584 1,440,777 1,520,745
============ ============ ============ ============ ============
(Continued)
</TABLE>
15
<PAGE> 15
<TABLE>
<CAPTION>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
FidVIPIGBd FidVIPBal FidVIPGrIn FidVIPGrOp FidVIPMCap
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95%............ $ 74,866 - - - -
1.00%............ 69,106 - - - -
1.05%............ 27,038 - - - -
1.10%............ 353 - - - -
1.15%............ 173 - - - -
1.20%............ 10 - - - -
1.25%............ 79 - - - -
1.30%............ 18,429 204,127 52,050 991,099 39
1.40%............ 598,108 2,046,014 863,448 9,363,550 633
1.45%............ 6,923 16,739 27,492 80,542 -
1.50%............ 2,421 2,745 5,561 27,168 -
1.60%............ - - - - -
1.65%............ - - - - -
1.85%............ - - - - -
------------ ------------ ------------ ------------ ------------
Total........ $ 797,506 2,269,625 948,551 10,462,359 672
============ ============ ============ ============ ============
FidVIPEIS FidVIPGrS FidVIPHIS FidVIPOvS FidVIPAMS
------------ ------------ ------------ ------------ ------------
0.95%............ $ 137,198 210,831 152,061 47,882 32,880
1.00%............ 119,471 205,720 109,171 41,451 31,665
1.05%............ 33,476 49,692 34,459 13,199 8,159
1.10%............ 169 239 190 46 -
1.15%............ 71 1,665 15 6 185
1.20%............ 61 87 31 33 -
1.25%............ 47 64 49 1 58
1.30%............ 6 49 - - -
1.40%............ 33 181 2 78 -
1.45%............ 30 29 - 14 -
1.50%............ - 38 13 15 -
1.60%............ - 29 - - -
1.65%............ - - - - -
1.85%............ - - - - -
------------ ------------ ------------ ------------ ------------
Total........ $ 290,562 468,624 295,991 102,725 72,947
============ ============ ============ ============ ============
FidVIPAMGrS FidVIPConS FidVIPBalS FidVIPGrInS FidVIPGrOpS
------------ ------------ ------------ ------------ ------------
0.95%............ $ 18,036 139,721 84,037 145,393 332,183
1.00%............ 23,936 138,654 76,312 187,179 333,219
1.05%............ 9,125 32,903 19,185 42,140 75,934
1.10%............ 134 263 287 249 328
1.15%............ - 1,668 256 927 932
1.20%............ 8 75 4 147 119
1.25%............ 30 141 39 91 95
1.30%............ 30 19 - 4 15
1.40%............ 16 7 110 178 586
1.45%............ - 29 2 5 28
1.50%............ - 3 - 26 32
1.60%............ - 29 - - -
1.65%............ - 2 - - -
1.85%............ - 14 - - -
------------ ------------ ------------ ------------ ------------
Total........ $ 51,315 313,528 180,232 376,339 743,471
============ ============ ============ ============ ============
</TABLE>
16
<PAGE> 16
FidVIPMCapS
------------
0.95% 3,358
1.00% 4,083
1.05% 714
1.10% 1
1.15% -
1.20% 16
1.25% 1
1.30% -
1.40% -
1.45% 15
1.50% -
1.60% -
1.65% -
1.85% -
------------
Total $ 8,188
============
The following table provides mortality, expense and administration charges
for the year ended December 31, 1998:
<TABLE>
<CAPTION>
TOTAL FidVIPEI FidVIPGr FidVIPHI FidVIPMMkt
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95%............ $ 346,655 - - - 27,469
1.00%............ 346,637 - - - 21,405
1.05%............ 99,916 - - - 13,826
1.30%............ 1,542,846 39,219 29,588 126,145 40,564
1.40%............ 18,369,018 760,982 484,627 2,077,769 578,067
1.45%............ 142,890 15,961 14,910 13,240 11,394
1.50%............ 46,433 6,275 4,473 5,806 4,365
------------ ------------ ------------ ------------ ------------
Total........ $ 20,894,395 822,437 533,598 2,222,960 697,090
============ ============ ============ ============ ============
FidVIPOv FidVIPAM FidVIPAMGr FidVIPCon FidVIPI500
------------ ------------ ------------ ------------ ------------
0.95%............ $ - - - - 20,294
1.00%............ - - - - 23,497
1.05%............ - - - - 4,757
1.30%............ 88,594 7,562 8,047 59,657 37,450
1.40%............ 1,006,416 168,847 141,334 858,526 575,683
1.45%............ 5,313 3,292 2,786 11,902 9,839
1.50%............ 1,148 1,328 409 2,345 2,256
------------ ------------ ------------ ------------ ------------
Total........ $ 1,101,471 181,029 152,576 932,430 673,776
============ ============ ============ ============ ============
FidVIPIGBd FidVIPBal FidVIPGrin FidVIPGrOp FidVIPEIS
------------ ------------ ------------ ------------ ------------
0.95%............ $ 13,470 - - - 35,645
1.00%............ 22,154 - - - 39,080
1.05%............ 6,446 - - - 10,048
1.30%............ 31,786 190,140 25,704 858,390 -
1.40%............ 457,474 1,978,328 543,629 8,737,336 -
1.45%............ 1,121 6,802 11,701 34,629 -
1.50%............ 945 1,037 705 15,341 -
------------ ------------ ------------ ------------ ------------
Total........ $ 533,396 2,176,307 581,739 9,645,696 84,773
============ ============ ============ ============ ============
(Continued)
</TABLE>
17
<PAGE> 17
<TABLE>
<CAPTION>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
FidVIPGrS FidVIPHIS FidVIPOvS FidVIPAMS FidVIPAMGrS
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
0.95%............ $ 33,383 49,642 11,313 6,565 3,692
1.00%............ 27,492 37,699 10,118 4,118 4,062
1.05%............ 9,526 11,178 3,117 998 1,888
1.30%............ - - - - -
1.40%............ - - - - -
1.45%............ - - - - -
1.50%............ - - - - -
------------ ------------ ------------ ------------ ------------
Total........ $ 70,401 98,519 24,548 11,681 9,642
============ ============ ============ ============ ============
FidVIPConS FidVIPBalS FidVIPGRinS FidVIPGrOpS
------------ ------------ ------------ ------------
0.95%............ $ 23,438 15,680 24,821 81,243
1.00%............ 24,226 11,424 31,994 89,368
1.05%............ 6,160 5,294 7,363 19,315
1.30%............ - - - -
1.40%............ - - - -
1.45%............ - - - -
1.50%............ - - - -
------------ ------------ ------------ ------------
Total........ $ 53,824 32,398 64,178 189,926
============ ============ ============ ============
</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.
18
<PAGE> 18
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at December 31, 1999,
for each series, in both the accumulation and payout phases.
<TABLE>
<CAPTION>
ANNUAL
Contract owners' equity represented by: UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
ASSET FEE @ .95 RATE:
Fidelity VIP - Money Market Portfolio:
Tax qualified............................ 350,462 10.841227 $ 3,799,438 4%
Non-tax qualified........................ 661,559 10.841227 7,172,111 4%
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified............................ 1,930,305 14.567662 28,120,031 19%
Non-tax qualified........................ 1,206,553 14.567662 17,576,656 19%
Fidelity VIP-II -
Investment Grade Bond Portfolio:
Tax qualified............................ 381,199 10.478118 3,994,248 (2)%
Non-tax qualified........................ 699,366 10.478118 7,328,039 (2)%
Fidelity VIP -
Equity-Income Portfolio: Service Class:
Tax qualified............................ 695,545 11.322947 7,875,619 5%
Non-tax qualified........................ 1,069,193 11.322947 12,106,416 5%
Fidelity VIP -
Growth Portfolio: Service Class:
Tax qualified............................ 872,562 18.039523 15,740,602 36%
Non-tax qualified........................ 1,429,991 18.039523 25,796,356 36%
Fidelity VIP -
High Income Portfolio: Service Class:
Tax qualified............................ 881,536 9.868246 8,699,214 7%
Non-tax qualified........................ 1,334,025 9.868246 13,164,487 7%
Fidelity VIP -
Overseas Portfolio: Service Class:
Tax qualified............................ 264,838 14.938906 3,956,390 41%
Non-tax qualified........................ 391,883 14.938906 5,854,303 41%
Fidelity VIP-II -
Asset Manager Portfolio: Service Class:
Tax qualified............................ 113,345 12.204056 1,383,269 10%
Non-tax qualified........................ 308,073 12.204056 3,759,740 10%
Fidelity VIP-II - Asset Manager
Growth Portfolio: Service Class:
Tax qualified............................ 91,493 12.862419 1,176,821 14%
Non-tax qualified........................ 135,720 12.862419 1,745,688 14%
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified............................ 628,642 15.419403 9,693,284 23%
Non-tax qualified........................ 992,736 15.419403 15,307,396 23%
Fidelity VIP-III -
Balanced Portfolio: Service Class:
Tax qualified............................ 439,780 11.730743 5,158,946 3%
Non-tax qualified........................ 650,044 11.730743 7,625,499 3%
Fidelity VIP-III -
Growth and Income Portfolio: Service Class:
Tax qualified............................ 631,639 13.387303 8,455,943 8%
Non-tax qualified........................ 1,084,359 13.387303 14,516,642 8%
</TABLE>
(Continued)
19
<PAGE> 19
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP-III - Growth Opportunities
Portfolio: Service Class:
Tax qualified............................ 1,580,810 12.317183 19,471,126 3%
Non-tax qualified........................ 2,388,172 12.317183 29,415,552 3%
Fidelity Vip-III -
Mid Cap Portfolio: Service Class:
Tax qualified............................ 48,890 14.643713 715,931 46%(b)
Non-tax qualified........................ 61,089 14.643713 894,570 46%(b)
ASSET FEE @ 1.00 RATE:
Fidelity VIP - Money Market Portfolio:
Tax qualified............................ 204,043 10.830732 2,209,935 4%
Non-tax qualified........................ 351,108 10.830732 3,802,757 4%
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified............................ 753,992 14.553757 10,973,416 19%
Non-tax qualified........................ 1,077,454 14.553757 15,681,004 19%
Fidelity VIP-II -
Investment Grade Bond Portfolio:
Tax qualified............................ 342,030 10.468109 3,580,407 (2)%
Non-tax qualified........................ 368,204 10.468109 3,854,400 (2)%
Fidelity VIP -
Equity-Income Portfolio: Service Class:
Tax qualified............................ 700,294 11.312151 7,921,831 5%
Non-tax qualified........................ 723,120 11.312151 8,180,043 5%
Fidelity VIP -
Growth Portfolio: Service Class:
Tax qualified............................ 910,888 18.022329 16,416,323 36%
Non-tax qualified........................ 1,383,685 18.022329 24,937,226 36%
Fidelity VIP -
High Income Portfolio: Service Class:
Tax qualified............................ 685,851 9.858827 6,761,686 7%
Non-tax qualified........................ 773,796 9.858827 7,628,721 7%
Fidelity VIP -
Overseas Portfolio: Service Class:
Tax qualified............................ 228,910 14.924674 3,416,407 41%
Non-tax qualified........................ 368,270 14.924674 5,496,310 41%
Fidelity VIP-II -
Asset Manager Portfolio: Service Class:
Tax qualified............................ 173,975 12.192406 2,121,174 10%
Non-tax qualified........................ 214,274 12.192406 2,612,516 10%
Fidelity VIP-II - Asset Manager
Growth Portfolio: Service Class:
Tax qualified............................ 123,075 12.850172 1,581,535 14%
Non-tax qualified........................ 173,485 12.850172 2,229,312 14%
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified............................ 687,704 15.404707 10,593,879 23%
Non-tax qualified........................ 960,351 15.404707 14,793,926 23%
</TABLE>
20
<PAGE> 20
================================================================================
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP-III -
Balanced Portfolio: Service Class:
Tax qualified................................ 401,736 11.719556 4,708,168 3%
Non-tax qualified............................ 552,217 11.719556 6,471,738 3%
Fidelity VIP-III -
Growth and Income Portfolio: Service Class:
Tax qualified................................ 922,659 13.374521 12,340,122 8%
Non-tax qualified............................ 1,278,902 13.374521 17,104,702 8%
Fidelity VIP-III - Growth Opportunities
Portfolio: Service Class:
Tax qualified................................ 1,554,894 12.305429 19,133,638 3%
Non-tax qualified............................ 2,150,035 12.305429 26,457,103 3%
Fidelity Vip-III -
Mid Cap Portfolio: Service Class:
Tax qualified................................ 84,669 14.636558 1,239,263 46%(b)
Non-tax qualified............................ 63,767 14.636558 933,329 46%(b)
ASSET FEE @ 1.05 RATE:
Fidelity VIP - Money Market Portfolio:
Tax qualified................................ 85,348 10.820248 923,487 4%
Non-tax qualified............................ 200,667 10.820248 2,171,267 4%
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified................................ 118,845 14.53988 1,727,992 19%
Non-tax qualified............................ 250,685 14.53988 3,644,930 19%
Fidelity VIP-II -
Investment Grade Bond Portfolio:
Tax qualified................................ 142,145 10.45812 1,486,569 (2)%
Non-tax qualified............................ 203,464 10.45812 2,127,851 (2)%
Fidelity VIP -
Equity-Income Portfolio: Service Class:
Tax qualified................................ 125,193 11.301374 1,414,853 5%
Non-tax qualified............................ 237,960 11.301374 2,689,275 5%
Fidelity VIP -
Growth Portfolio: Service Class:
Tax qualified................................ 139,137 18.005139 2,505,181 36%
Non-tax qualified............................ 324,870 18.005139 5,849,330 36%
Fidelity VIP -
High Income Portfolio: Service Class:
Tax qualified................................ 146,880 9.849428 1,446,684 7%
Non-tax qualified............................ 233,348 9.849428 2,298,344 7%
Fidelity VIP -
Overseas Portfolio: Service Class:
Tax qualified................................ 47,782 14.910446 712,451 41%
Non-tax qualified............................ 66,203 14.910446 987,116 41%
Fidelity VIP-II -
Asset Manager Portfolio: Service Class:
Tax qualified................................ 42,988 12.18077 523,627 10%
Non-tax qualified............................ 66,396 12.18077 808,754 10%
</TABLE>
(Continued)
21
<PAGE> 21
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP-II - Asset Manager
Growth Portfolio: Service Class:
Tax qualified............................. 35,123 12.837906 450,906 14%
Non-tax qualified......................... 60,669 12.837906 778,863 14%
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified............................. 112,426 15.390001 1,730,236 23%
Non-tax qualified......................... 213,961 15.390001 3,292,860 23%
Fidelity VIP-III -
Balanced Portfolio: Service Class:
Tax qualified............................. 71,054 11.708369 831,926 3%
Non-tax qualified......................... 133,286 11.708369 1,560,562 3%
Fidelity VIP-III - Growth and Income
Portfolio: Service Class:
Tax qualified............................. 152,587 13.36177 2,038,832 8%
Non-tax qualified......................... 295,741 13.36177 3,951,623 8%
Fidelity VIP-III - Growth Opportunities
Portfolio: Service Class:
Tax qualified............................. 290,728 12.293685 3,574,118 3%
Non-tax qualified......................... 433,732 12.293685 5,332,165 3%
Fidelity Vip-III -
Mid Cap Portfolio: Service Class:
Tax qualified............................ 21,916 14.62939 320,618 46%(b)
Non-tax qualified........................ 10,769 14.62939 157,544 46%(b)
ASSET FEE @ 1.10 RATE:
Fidelity VIP - Money Market Portfolio:
Tax qualified............................ 2,487 10.273279 25,550 3%(a)
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified............................ 12,510 10.838507 135,590 8%(a)
Non-tax qualified........................ 6,221 10.838507 67,426 8%(a)
Fidelity VIP-II -
Investment Grade Bond Portfolio:
Tax qualified............................ 11,323 9.813933 111,123 (2)%(a)
Non-tax qualified........................ 6,219 9.813933 61,033 (2)%(a)
Fidelity VIP -
Equity-Income Portfolio: Service Class:
Tax qualified............................ 7,287 9.347646 68,116 (7)%(a)
Non-tax qualified........................ 1,926 9.347646 18,004 (7)%(a)
Fidelity VIP -
Growth Portfolio: Service Class:
Tax qualified............................ 12,175 12.372047 150,630 24%(a)
Non-tax qualified........................ 1,987 12.372047 24,583 24%(a)
Fidelity VIP -
High Income Portfolio: Service Class:
Tax qualified............................ 4,712 9.711691 45,761 (3)%(a)
Non-tax qualified........................ 4,502 9.711691 43,722 (3)%(a)
</TABLE>
22
<PAGE> 22
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP -
Overseas Portfolio: Service Class:
Tax qualified............................ 2,518 13.111592 33,015 31%(a)
Fidelity VIP-II - Asset Manager
Growth Portfolio: Service Class:
Tax qualified............................ 3,541 10.846645 38,408 8%(a)
Non-tax qualified........................ 976 10.846645 10,586 8%(a)
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified............................ 8,180 11.323961 92,630 13%(a)
Non-tax qualified........................ 2,518 11.323961 28,514 13%(a)
Fidelity VIP-III -
Balanced Portfolio: Service Class:
Tax qualified............................ 10,428 9.77361 101,919 (2)%(a)
Non-tax qualified........................ 2,856 9.77361 27,913 (2)%(a)
Fidelity VIP-III - Growth and Income
Portfolio: Service Class:
Tax qualified............................ 13,370 10.061118 134,517 1%(a)
Non-tax qualified........................ 1,659 10.061118 16,691 1%(a)
Fidelity VIP-III - Growth Opportunities
Portfolio: Service Class:
Tax qualified............................ 15,297 9.909749 151,589 (1)%(a)
Non-tax qualified........................ 4,111 9.909749 40,739 (1)%(a)
Fidelity VIP-III -
Mid Cap Portfolio: Service Class:
Tax qualified............................ 77 13.502242 1,040 35%(a)
ASSET FEE @ 1.15 RATE:
Fidelity Vip - Money Market Portfolio:
Tax qualified............................ 12,006 10.26979 123,299 3%(a)
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified............................ 2,318 10.834863 25,115 8%(a)
Fidelity VIP-II -
Investment Grade Bond Portfolio:
Tax qualified............................ 4,162 9.810644 40,832 (2)%(a)
Fidelity VIP -
Equity-Income Portfolio: Service Class:
Tax qualified............................ 3,388 9.344503 31,659 (7)%(a)
Fidelity VIP -
Growth Portfolio: Service Class:
Tax qualified............................ 8,021 12.3679 99,203 24%(a)
Non-tax qualified........................ 39,902 12.3679 493,504 24%(a)
Fidelity VIP -
High Income Portfolio: Service Class:
Tax qualified............................ 1,531 9.708435 14,864 (3)%(a)
Fidelity VIP -
Overseas Portfolio: Service Class:
Tax qualified............................ 244 13.10719 3,198 31%(a)
</TABLE>
(Continued)
23
<PAGE> 23
<TABLE>
<CAPTION>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL
UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP-II -
Asset Manager Portfolio: Service Class:
Tax qualified.............................. 4,567 10.596211 48,393 6%(a)
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified.............................. 2,663 11.320167 30,146 13%(a)
Non-tax qualified.......................... 49,325 11.320167 558,367 13%(a)
Fidelity VIP-III -
Balanced Portfolio: Service Class:
Tax qualified.............................. 8,159 9.770329 79,716 (2)%(a)
Fidelity VIP-III - Growth and Income
Portfolio: Service Class:
Tax qualified.............................. 3,405 10.057746 34,247 1%(a)
Non-tax qualified.......................... 29,185 10.057746 293,535 1%(a)
Fidelity VIP-III - Growth Opportunities
Portfolio: Service Class:
Tax qualified.............................. 9,376 9.906423 92,883 (1)%(a)
Non-tax qualified.......................... 21,582 9.906423 213,800 (1)%(a)
ASSET FEE @ 1.20 RATE:
Fidelity VIP - Money Market Portfolio:
Tax qualified.............................. 257 10.266304 2,638 3%(a)
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified.............................. 1,951 10.83123 21,132 8%(a)
Non-tax qualified.......................... 4,626 10.83123 50,105 8%(a)
Fidelity VIP-II -
Investment Grade Bond Portfolio:
Tax qualified.............................. 504 9.807349 4,943 (2)%(a)
Non-tax qualified.......................... 122 9.807349 1,196 (2)%(a)
Fidelity Vip -
Equity-income Portfolio: Service Class:
Tax qualified.............................. 1,430 9.341371 13,358 (7)%(a)
Non-tax qualified.......................... 991 9.341371 9,257 (7)%(a)
Fidelity VIP -
Growth Portfolio: Service Class:
Tax qualified.............................. 1,660 12.363757 20,524 24%(a)
Non-tax qualified.......................... 2,283 12.363757 28,226 24%(a)
Fidelity VIP -
High Income Portfolio: Service Class:
Tax qualified.............................. 1,211 9.70517 11,753 (3)%(a)
Non-tax qualified.......................... 535 9.70517 5,192 (3)%(a)
Fidelity VIP -
Overseas Portfolio: Service Class:
Tax qualified.............................. 284 13.102821 3,721 31%(a)
Non-tax qualified.......................... 881 13.102821 11,544 31%(a)
Fidelity VIP-II - Asset Manager
Growth Portfolio: Service Class:
Non-tax qualified.......................... 420 10.839384 4,553 8%(a)
</TABLE>
24
<PAGE> 24
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(C)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified............................. 685 11.316365 7,752 13%(a)
Non-tax qualified......................... 2,726 11.316365 30,848 13%(a)
Fidelity VIP-III -
Balanced Portfolio: Service Class:
Tax qualified............................. 151 9.767051 1,475 (2)%(a)
Non-tax qualified......................... 106 9.767051 1,035 (2)%(a)
Fidelity VIP-III - Growth and Income
Portfolio: Service Class:
Tax qualified............................. 577 10.054379 5,801 1%(a)
Non-tax qualified......................... 4,593 10.054379 46,180 1%(a)
Fidelity VIP-III - Growth Opportunities
Portfolio: Service Class:
Tax qualified............................. 3,926 9.903104 38,880 (1)%(a)
Non-tax qualified......................... 2,978 9.903104 29,491 (1)%(a)
Fidelity VIP-III -
Mid Cap Portfolio: Service Class:
Tax qualified............................. 31 13.493199 418 35%(a)
Non-tax qualified......................... 499 13.493199 6,733 35%(a)
ASSET FEE @ 1.25 RATE:
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified............................. 803 10.827599 8,695 8%(a)
Non-tax qualified......................... 573 10.827599 6,204 8%(a)
Fidelity VIP-II -
Investment Grade Bond Portfolio:
Non-tax qualified......................... 5,985 9.804059 58,677 (2)%(a)
Fidelity VIP -
Equity-Income Portfolio: Service Class:
Tax qualified............................. 257 9.338236 2,400 (7)%(a)
Non-tax qualified......................... 980 9.338236 9,151 (7)%(a)
Fidelity VIP -
Growth Portfolio: Service Class:
Tax qualified............................. 673 12.35961 8,318 24%(a)
Non-tax qualified......................... 1,395 12.35961 17,242 24%(a)
Fidelity Vip -
High Income Portfolio: Service Class:
Tax qualified............................. 326 9.701921 3,163 (3)%(a)
Non-tax qualified......................... 1,924 9.701921 18,666 (3)%(a)
Fidelity VIP -
Overseas Portfolio: Service Class:
Non-tax qualified......................... 32 13.098422 419 31%(a)
Fidelity VIP-II -
Asset Manager Portfolio: Service Class:
Non-tax qualified......................... 3,092 10.589098 32,741 6%(a)
Fidelity VIP-II - Asset Manager
Growth Portfolio: Service Class:
Tax qualified............................. 263 10.835743 2,850 8%(a)
Non-tax qualified......................... 246 10.835743 2,666 8%(a)
</TABLE>
(Continued)
25
<PAGE> 25
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified............................ 1,562 11.312579 17,670 13%(a)
Non-tax qualified........................ 2,319 11.312579 26,234 13%(a)
Fidelity VIP-III -
Balanced Portfolio: Service Class:
Tax qualified............................ 127 9.763773 1,240 (2)%(a)
Non-tax qualified........................ 1,506 9.763773 14,704 (2)%(a)
Fidelity VIP-III - Growth and Income
Portfolio: Service Class:
Tax qualified............................ 1,485 10.051 14,926 1%(a)
Non-tax qualified........................ 2,033 10.051 20,434 1%(a)
Fidelity VIP-III - Growth Opportunities
Portfolio: Service Class:
Tax qualified............................ 995 9.89977 9,850 (1)%(a)
Non-tax qualified........................ 1,977 9.89977 19,572 (1)%(a)
Fidelity VIP-III -
Mid Cap Portfolio: Service Class:
Non-tax qualified........................ 42 13.488675 567 35%(a)
ASSET FEE @ 1.30 RATE:
Fidelity VIP - Equity-Income Portfolio:
Tax qualified............................ 183,447 14.172629 2,599,926 5%
Non-tax qualified........................ 156,154 14.172629 2,213,113 5%
Fidelity VIP - Growth Portfolio:
Tax qualified............................ 219,941 21.704997 4,773,819 36%
Non-tax qualified........................ 231,950 21.704997 5,034,474 36%
Fidelity VIP - High Income Portfolio:
Tax qualified............................ 417,032 11.968494 4,991,245 7%
Non-tax qualified........................ 335,122 11.968494 4,010,906 7%
Fidelity VIP - Money Market Portfolio:
Tax qualified............................ 292,257 11.321684 3,308,841 4%
Non-tax qualified........................ 138,223 11.321684 1,564,917 4%
Fidelity VIP - Overseas Portfolio:
Tax qualified............................ 299,712 18.146675 5,438,776 41%
Non-tax qualified........................ 215,144 18.146675 3,904,148 41%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified............................... 31,342 14.520553 455,103 10%
Non-tax qualified........................ 36,449 14.520553 529,260 10%
Fidelity VIP-II -
Asset Manager Growth Portfolio:
Tax qualified............................ 31,321 15.777489 494,167 14%
Non-tax qualified........................ 31,916 15.777489 503,554 14%
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified............................ 314,209 18.477393 5,805,763 23%
Non-tax qualified........................ 225,052 18.477393 4,158,374 23%
</TABLE>
26
<PAGE> 26
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified............................ 269,118 18.841144 5,070,491 19%
Non-tax qualified........................ 164,955 18.841144 3,107,941 19%
Fidelity VIP-II -
Investment Grade Bond Portfolio:
Tax qualified............................ 173,026 11.362789 1,966,058 (2)%
Non-tax qualified........................ 91,053 11.362789 1,034,616 (2)%
Fidelity VIP-III - Balanced Portfolio:
Tax qualified............................ 481,305 17.636796 8,488,678 3%
Non-tax qualified........................ 367,940 17.636796 6,489,283 3%
Fidelity VIP-III -
Growth and Income Portfolio:
Tax qualified............................ 158,200 17.037809 2,695,381 8%
Non-tax qualified........................ 126,435 17.037809 2,154,175 8%
Fidelity VIP-III -
Growth Opportunities Portfolio:
Tax qualified............................ 1,413,840 24.792904 35,053,199 3%
Non-tax qualified........................ 1,475,385 24.792904 36,579,079 3%
Fidelity VIP-III - Mid Cap Portfolio:
Tax qualified............................ 9,645 14.603095 140,847 46%(b)
Non-tax qualified........................ 8,821 14.603095 128,814 46%(b)
Fidelity VIP - Equity-Income Portfolio:
Service Class:
Tax qualified............................ 341 9.335095 3,183 (7)%(a)
Fidelity VIP -
Growth Portfolio: Service Class:
Tax qualified............................ 673 12.355467 8,315 24%(a)
Non-tax qualified........................ 754 12.355467 9,316 24%(a)
Fidelity VIP-II - Asset Manager
Growth Portfolio: Service Class:
Tax qualified............................ 1,035 10.83211 11,211 8%(a)
Non-tax qualified........................ 235 10.83211 2,546 8%(a)
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified............................ 530 11.308771 5,994 13%(a)
Non-tax qualified........................ 434 11.308771 4,908 13%(a)
Fidelity VIP-III - Growth and Income
Portfolio: Service Class:
Tax qualified............................ 173 10.047615 1,738 0%(a)
Fidelity VIP-III - Growth Opportunities
Portfolio: Service Class:
Tax qualified............................... 531 9.896444 5,255 (1)%(a)
ASSET FEE @ 1.40 RATE:
Fidelity VIP - Equity-Income Portfolio:
Tax qualified............................ 1,695,231 14.13039 23,954,275 5%
Non-tax qualified........................ 3,019,886 14.13039 42,672,167 5%
Fidelity VIP - Growth Portfolio:
Tax qualified............................ 1,601,216 21.640361 34,650,892 36%
Non-tax qualified........................ 3,499,888 21.640361 75,738,840 36%
</TABLE>
(Continued)
27
<PAGE> 27
<TABLE>
<CAPTION>
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
ANNUAL
UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP - High Income Portfolio:
Tax qualified............................ 3,512,241 11.93018 41,901,667 7%
Non-tax qualified........................ 7,547,236 11.93018 90,039,884 7%
Fidelity VIP - Money Market Portfolio:
Tax qualified............................ 1,547,965 11.285433 17,469,455 4%
Non-tax qualified........................ 3,063,912 11.285433 34,577,574 4%
Fidelity VIP - Overseas Portfolio:
Tax qualified............................ 1,594,341 18.08863 28,839,444 41%
Non-tax qualified........................ 3,514,876 18.08863 63,579,291 41%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified............................ 405,505 14.477303 5,870,619 10%
Non-tax qualified........................ 824,691 14.477303 11,939,301 10%
Fidelity VIP-II -
Asset Manager Growth Portfolio:
Tax qualified............................ 279,404 15.730503 4,395,165 14%
Non-tax qualified........................ 629,730 15.730503 9,905,970 14%
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified............................ 2,003,071 18.422344 36,901,263 23%
Non-tax qualified........................ 4,068,308 18.422344 74,947,769 23%
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified............................ 1,356,953 18.785022 25,490,392 19%
Non-tax qualified........................ 2,905,306 18.785022 54,576,237 19%
Fidelity VIP-II -
Investment Grade Bond Portfolio:
Tax qualified............................ 1,254,764 11.326409 14,211,970 (2)%
Non-tax qualified........................ 2,233,065 11.326409. 25,292,608 (2)%
Fidelity VIP-III - Balanced Portfolio:
Tax qualified........................... 2,352,156 17.54785. 41,275,281 3%
Non-tax qualified....................... 5,436,492 17.54785 95,398,746 3%
Fidelity VIP-III -
Growth and Income Portfolio:
Tax qualified........................... 1,145,440 16.987037 19,457,632 8%
Non-tax qualified....................... 2,718,399 16.987037 46,177,544 8%
Fidelity VIP-III -
Growth Opportunities Portfolio:
Tax qualified........................... 7,527,710 24.667851 185,692,429 3%
Non-tax qualified....................... 17,920,089 24.667851 442,050,085 3%
Fidelity VIP -
Equity-Income Portfolio: Service Class:
Non-tax qualified.......................... 887 9.328815 8,275 (7)%(a)
Fidelity VIP -
Growth Portfolio: Service Class:
Tax qualified........................... 4,046 12.347169 49,957 23%(a)
Non-tax qualified....................... 1,119 12.347169 13,816 23%(a)
Fidelity VIP -
High Income Portfolio: Service Class:
Non-tax qualified....................... 107 9.692137 1,037 (3)%(a)
</TABLE>
28
<PAGE> 28
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP -
Overseas Portfolio: Service Class:
Tax qualified............................. 2,046 13.085254 26,772 31%(a)
Non-tax qualified......................... 202 13.085254 2,643 31%(a)
Fidelity VIP-II - Asset Manager
Growth Portfolio: Service Class:
Non-tax qualified......................... 219 10.824826 2,371 8%(a)
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified............................. 210 11.301172 2,373 13%(a)
Non-tax qualified......................... 101 11.301172 1,141 13%(a)
Fidelity VIP-III -
Balanced Portfolio: Service Class:
Non-tax qualified......................... 3,154 9.753925 30,764 (2)%(a)
Fidelity VIP-III - Growth and Income
Portfolio: Service Class:
Tax qualified............................. 1,435 10.040866 14,409 0%(a)
Non-tax qualified......................... 4,769 10.040866 47,885 0%(a)
Fidelity VIP-III - Growth Opportunities
Portfolio: Service Class:
Tax qualified............................. 11,626 9.889792 114,979 (1)%(a)
Non-tax qualified......................... 7,514 9.889792 74,312 (1)%(a)
ASSET FEE @ 1.45 RATE:
Fidelity VIP - Equity-Income Portfolio:
Tax qualified............................. 60,593 11.913142 721,853 5%
Non-tax qualified......................... 146,671 11.913142 1,747,312 5%
Fidelity VIP - Growth Portfolio:
Tax qualified............................. 78,768 18.667172 1,470,376 35%
Non-tax qualified......................... 218,645 18.667172 4,081,484 35%
Fidelity VIP - High Income Portfolio:
Tax qualified............................. 79,734 10.176069 811,379 7%
Non-tax qualified......................... 123,514 10.176069 1,256,887 7%
Fidelity VIP - Money Market Portfolio:
Tax qualified............................. 41,696 10.844055 452,154 4%
Non-tax qualified......................... 51,072 10.844055 553,828 4%
Fidelity VIP - Overseas Portfolio:
Tax qualified............................. 25,983 15.453729 401,534 41%
Non-tax qualified......................... 39,558 15.453729 611,319 41%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified............................. 21,912 12.673141 277,694 9%
Non-tax qualified......................... 35,532 12.673141 450,302 9%
Fidelity VIP-II -
Asset Manager Growth Portfolio:
Tax qualified............................. 11,295 13.476375 152,216 14%
Non-tax qualified......................... 12,166 13.476375 163,954 14%
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified............................. 54,385 15.610339 848,968 22%
Non-tax qualified......................... 128,262 15.610339 2,002,213 22%
</TABLE>
(Continued)
29
<PAGE> 29
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified.............................. 46,530 15.51665 721,990 19%
Non-tax qualified.......................... 128,027 15.51665 1,986,550 19%
Fidelity VIP-II -
Investment Grade Bond Portfolio:
Tax qualified.............................. 13,862 10.613518 147,125 (2)%
Non-tax qualified.......................... 52,808 10.613518 560,479 (2)%
Fidelity VIP-III - Balanced Portfolio:
Tax qualified.............................. 27,944 12.270926 342,899 3%
Non-tax qualified.......................... 74,853 12.270926 918,516 3%
Fidelity VIP-III -
Growth and Income Portfolio:
Tax qualified.............................. 56,050 14.295582 801,267 8%
Non-tax qualified.......................... 97,471 14.295582 1,393,405 8%
Fidelity VIP-III -
Growth Opportunities Portfolio:
Tax qualified.............................. 151,722 13.11468 1,989,785 3%
Non-tax qualified.......................... 312,763 13.11468 4,101,787 3%
Fidelity VIP -
Equity-Income Portfolio: Service Class:
Tax qualified.............................. 3,290 9.32567 330,681 (7)%(a)
Non-tax qualified.......................... 180 9.325673 1,679 (7)%(a)
Fidelity VIP -
Growth Portfolio: Service Class:
Tax qualified.............................. 2,607 12.34302 32,178 23%(a)
Fidelity VIP -
Overseas Portfolio: Service Class:
Tax qualified.............................. 1,262 13.080864 16,508 31%(a)
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified.............................. 2,852 11.297372 32,220 13%(a)
Fidelity VIP-III -
Balanced Portfolio: Service Class:
Non-tax qualified.......................... 115 9.750647 1,121 (2)%(a)
Fidelity VIP-III - Growth and Income
Portfolio: Service Class:
Non-tax qualified.......................... 284 10.037482 2,851 0%(a)
Fidelity VIP-III - Growth Opportunities
Portfolio: Service Class:
Tax qualified.............................. 3,120 9.886469 30,846 (1)%(a)
Fidelity VIP-III -
Mid Cap Portfolio: Service Class:
Tax qualified.............................. 1,246 13.47058 16,784 35%(a)
ASSET FEE @ 1.50 RATE:
Fidelity VIP - Equity-income Portfolio:
Tax qualified.............................. 28,206 11.900112 335,655 5%
Non-tax qualified.......................... 31,200 11.900112 371,283 5%
</TABLE>
30
<PAGE> 30
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP - Growth Portfolio:
Tax qualified............................. 37,563 18.646776 700,429 35%
Non-tax qualified......................... 30,852 18.646776 575,290 35%
Fidelity VIP - High Income Portfolio:
Tax qualified............................. 30,522 10.164929 310,254 7%
Non-tax qualified......................... 36,652 10.164929 372,565 7%
Fidelity VIP - Money Market Portfolio:
Tax qualified............................. 25,144 10.832134 272,363 4%
Non-tax qualified......................... 23,877 10.832134 258,639 4%
Fidelity VIP - Overseas Portfolio:
Tax qualified............................. 7,933 15.436822 122,460 40%
Non-tax qualified......................... 8,015 15.436822 123,726 40%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified............................. 2,118 12.659254 26,812 9%
Non-tax qualified......................... 14,021 12.659254 177,495 9%
Fidelity VIP-II -
Asset Manager Growth Portfolio:
Tax qualified............................. 3,397 13.461613 45,729 14%
Non-tax qualified......................... 6,520 13.461613 87,770 14%
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified 12,643 15.59326 197,146 22%
Non-tax qualified........................ 23,346 15.59326 364,040 22%
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified............................ 18,621 15.499687 288,620 19%
Non-tax qualified........................ 40,822 15.499687 632,728 19%
Fidelity VIP-II -
Investment Grade Bond Portfolio:
Tax qualified............................ 9,870 10.601902 104,641 (3)%
Non-tax qualified........................ 9,188 10.601902 97,410 (3)%
Fidelity VIP-III - Balanced Portfolio:
Tax qualified............................ 2,319 12.257491 28,425 3%
Non-tax qualified........................ 20,233 12.257491 248,006 3%
Fidelity VIP-III -
Growth and Income Portfolio:
Tax qualified............................ 11,738 14.279936 167,618 8%
Non-tax qualified........................ 29,850 14.279936 426,256 8%
Fidelity VIP-III -
Growth Opportunities Portfolio:
Tax qualified............................ 84,838 13.100322 1,111,405 3%
Non-tax qualified........................ 76,283 13.100322 999,332 3%
Fidelity VIP -
Growth Portfolio: Service Class:
Tax qualified............................ 866 12.338879 10,685 23%(a)
Non-tax qualified........................ 271 12.338879 3,344 23%(a)
Fidelity VIP -
High Income Portfolio: Service Class:
Tax qualified............................... 267 9.685624 2,586 (3)%(a)
Fidelity VIP -
Overseas Portfolio: Service Class:
Tax qualified............................ 255 13.076471 3,335 31%(a)
</TABLE>
(Continued)
31
<PAGE> 31
NATIONWIDE FIDELITY ADVISOR VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(c)
---------- ------------ ----------
<S> <C> <C> <C> <C>
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified............................... 265 11.29358 2,993 13%(a)
Non-tax qualified........................... 300 11.29358 3,388 13%(a)
Fidelity VIP-III - Growth and Income
Portfolio: Service Class:
Tax qualified............................... 530 10.034112 5,318 0%(a)
Fidelity VIP-III - Growth Opportunities
Portfolio: Service Class:
Tax qualified............................... 648 9.883134 6,404 (1)%(a)
Fidelity VIP-III -
Mid Cap Portfolio: Service Class:
Non-tax qualified........................... 85 13.466052 1,145 35%(a)
ASSET FEE @ 1.60 RATE:
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified............................... 765 10.802136 8,264 8%(a)
Fidelity VIP -
Growth Portfolio: Service Class:
Tax qualified............................... 539 12.330569 6,646 23%(a)
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified............................... 572 11.285979 6,456 13%(a)
ASSET FEE @ 1.65 RATE:
Fidelity VIP-II - Index 500 Portfolio:
Tax qualified............................... 271 10.798506 2,926 8%(a)
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Tax qualified............................... 397 11.282174 4,479 13%(a)
ASSET FEE @ 1.85 RATE:
Fidelity VIP-II - Index 500 Portfolio:
Non-tax qualified........................... 253 10.783929 2,728 8%(a)
Fidelity VIP-II -
Contrafund Portfolio: Service Class:
Non-tax qualified........................... 253 11.266962 2,851 13%(a)
Reserves for annuity contracts in payout phase:
Tax qualified............................... 35,491
Non-tax qualified........................... 368,949
---------------
$ 2,321,489,033
===============
</TABLE>
(a) Non-annualized. The return was computed for the period 5/03/1999 (effective
date) through 12/31/1999.
(b) Non-annualized. The return was computed for the period 1/11/1999 (effective
date) through 12/31/1999.
(c) The annual return does not include contract charges satisfied by
surrendering units.
- --------------------------------------------------------------------------------
32
<PAGE> 32
Independent Auditors' Report
----------------------------
The Board of Directors of Nationwide Life Insurance Company and Contract Owners
of Nationwide Fidelity Advisor Variable Account:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide Fidelity Advisor Variable Account
(comprised of the sub-accounts listed in note 1(b)) (collectively, "the
Account") as of December 31, 1999, and the related statements of operations and
changes in contract owners' equity for each of the years in the two year period
then ended. These financial statements are the responsibility of the Account's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1999, by correspondence with
the transfer agents of the underlying mutual funds. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Account as of December
31, 1999, and the results of its operations and its changes in contract owners'
equity for each of the years in the two year period then ended in conformity
with generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
February 18, 2000
- --------------------------------------------------------------------------------
33
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34
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35
<PAGE> 35
[BACK COVER]
[FIDELITY INVESTMENTS(R) 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 trademark of Nationwide Mutual
Insurance Company.
APO-2929-J (12/99)
