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[LOGO]
NATIONWIDE(R)
VARIABLE
ACCOUNT-6
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 1996
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-3232 (6/96)
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[LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215
[PHOTO]
PRESIDENT'S MESSAGE
We are pleased to present the 1996 semi-annual report of the Nationwide Variable
Account-6.
Equity investments provided a respectable return for the first half of 1996 with
the major market indices holding comfortably in double digits. Fixed-income
investments, however, did not perform as well with the average bond fund showing
slightly negative performance for the period. This was due to rising interest
rates and lingering inflation fears.
The U.S. economy showed signs of increasing strength during the first half of
the year. The question remains: will growth fall back to the perceived
inflation-free path by itself or will the Federal Reserve have to step in and
enforce moderation? Recent economic statistics, such as the July unemployment
report, point in the direction of some moderation. Also, fierce competition in
all consumer-goods markets make inflationary price increases very difficult. One
way or the other, we expect slower economic growth in the near future.
Financial assets will remain the preferred individual investment option because
they will continue providing security, liquidity, and income and growth.
We appreciate your confidence in the Nationwide Insurance Enterprise and in our
life and annuity products. You have our assurance that your personal
satisfaction with our products and service is our highest priority.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
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NATIONWIDE VARIABLE ACCOUNT-6
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
June 30, 1996
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
Evergreen - VA Foundation Fund (EvFound)
929,214 shares (cost $9,162,757) ............. $ 9,357,181
Evergreen - VA Fund (EvFund)
488,252 shares (cost $4,959,530) ............. 5,170,591
Evergreen - VA Growth andIncome Fund (EvGrInc)
600,697 shares (cost $6,198,256) ............. 6,433,470
Fidelity VIP - Asset Manager Portfolio (FidVIPAM)
41,189 shares (cost $629,604) ................ 643,779
Fidelity VIP - High Income Portfolio (FidVIPHI)
44,468 shares (cost $511,336) ................ 523,832
Fidelity VIP - Overseas Portfolio (FidVIPOv)
45,570 shares (cost $803,660) ................ 814,783
Nationwide SAT - Government Bond Fund (NSATGvtBd)
18,565 shares (cost $202,040) ................ 201,056
Nationwide SAT - Money Market Fund (NSATMyMkt)
861,161 shares (cost $861,161) ............... 861,161
----------
Total assets .............................. 24,005,853
ACCOUNTS PAYABLE ...................................... 10,072
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CONTRACT OWNERS' EQUITY ............................... $23,995,781
==========
</TABLE>
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<TABLE>
<CAPTION>
Contract owners' equity represented by: UNITS UNIT VALUE
------ ----------
<S> <C> <C> <C>
Evergreen - VA Foundation Fund:
Tax qualified ........................ 240,082 $10.023950 $ 2,406,570
Non-tax qualified .................... 592,775 10.023950 5,941,947
Initial Funding by Depositor (note 1a) 100,000 10.070000 1,007,000
Evergreen - VA Fund:
Tax qualified ........................ 98,111 10.541613 1,034,248
Non-tax qualified .................... 291,846 10.541613 3,076,528
Initial Funding by Depositor (note 1a) 100,000 10.590000 1,059,000
Evergreen - VA Growth and Income Fund:
Tax qualified ........................ 151,588 10.661053 1,616,088
Non-tax qualified .................... 351,311 10.661053 3,745,345
Initial Funding by Depositor (note 1a) 100,000 10.710000 1,071,000
Fidelity VIP - Asset Manager Portfolio:
Tax qualified ........................ 21,400 10.324190 220,938
Non-tax qualified .................... 40,944 10.324190 422,714
Fidelity VIP - High Income Portfolio:
Tax qualified ........................ 15,497 10.250120 158,846
Non-tax qualified .................... 35,597 10.250120 364,874
Fidelity VIP - Overseas Portfolio:
Tax qualified ........................ 15,777 10.414435 164,309
Non-tax qualified .................... 62,446 10.414435 650,340
Nationwide SAT - Government Bond Fund:
Tax qualified ........................ 10,514 9.880012 103,878
Non-tax qualified .................... 9,829 9.880012 97,111
Nationwide SAT - Money Market Fund:
Tax qualified ........................ 417 10.118280 4,219
Non-tax qualified .................... 84,088 10.118280 850,826
------ --------- ----------
$23,995,781
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</TABLE>
See accompanying notes to financial statements.
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NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
For the Period February 28, 1996 (commencement of operations)
Through June 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
1996
------------
<S> <C>
INVESTMENT ACTIVITY:
Reinvested capital gains and dividends .................. $ 12,970
------------
Gain (loss) on investments:
Proceeds from redemptions of mutual fund shares ...... 1,229,684
Cost of mutual fund shares sold ...................... (1,185,225)
------------
Realized gain (loss) on investments .................. 44,459
Change in unrealized gain (loss) on investments ...... 677,509
------------
Net gain (loss) on investments .................... 721,968
------------
Net investment activity ........................ 734,938
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EQUITY TRANSACTIONS:
Purchase payments received from contract owners (note 1a) 23,383,369
Redemptions ............................................. (64,055)
Adjustments to maintain reserves ........................ (3,603)
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Net equity transactions ........................ 23,315,711
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EXPENSES (NOTE 2):
Contract charges ........................................ (53,396)
Contingent deferred sales charges ....................... (1,472)
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Total expenses ................................. (54,868)
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NET CHANGE IN CONTRACT OWNERS' EQUITY ...................... 23,995,781
CONTRACT OWNER'S EQUITY BEGINNING OF PERIOD ................ --
------------
CONTRACT OWNERS' EQUITY END OF PERIOD ...................... $ 23,995,781
============
</TABLE>
See accompanying notes to financial statements.
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NATIONWIDE VARIABLE ACCOUNT-6
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
Nationwide Variable Account-6 (the Account) was established pursuant to a
resolution of the Board of Directors of Nationwide Life Insurance Company (the
Company) on February 2, 1994. The Account has been registered as a unit
investment trust under the Investment Company Act of 1940.
On February 28, 1996, the Company (Depositor) transferred to the Account,
100,000 shares of the Evergreen - VA Foundation Fund, 100,000 shares of the
Evergreen - VA Fund and 100,000 shares of the Evergreen - VA Growth and Income
Fund, for which the Account was credited with 100,000 units of the Evergreen -
VA Foundation Fund, 100,000 units of the Evergreen - VA Fund and 100,000 units
of Evergreen - VA Growth and Income Fund. These amounts represent the initial
funding of the Account. The value of the units purchased by the Company on
February 28, 1996 was $3,000,000.
The Company offers tax qualified and non-tax qualified Individual Deferred
Variable Annuity Contracts through the Account. The primary distribution for the
contracts is through banks and other financial institutions.
(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:
Funds of the Evergreen Variable Trust (Evergreen);
Evergreen - VA Foundation Fund (EvFound)
Evergreen - VA Fund (EvFund)
Evergreen - VA Growth and Income Fund (EvGrInc)
Portfolios of the Fidelity Variable Insurance Products Fund (Fidelity
VIP);
Fidelity VIP - Asset Manager Portfolio (FidVIPAM)
Fidelity VIP - High Income Portfolio (FidVIPHI)
Fidelity VIP - Overseas Portfolio (FidVIPOv)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor);
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - Money Market Fund (NSATMyMkt)
At June 30, 1996, 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.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 1996. The cost of investments sold is
determined on the specific identification basis. Investment transactions are
accounted for on the trade date (date the order to buy or sell is executed) and
dividend income is recorded on the ex-dividend date.
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(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with, operations
of the Company which is taxed as a life insurance company under the Internal
Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities, if any, at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
(2) EXPENSES
The Company does not deduct a sales charge from purchase payments received
from the contract owners. However, if any part of the contract value of such
contracts is surrendered, the Company will, with certain exceptions, deduct from
a contract owner's contract value a contingent deferred sales charge not to
exceed 7% of the lesser of purchase payments or the amount surrendered, such
charge declining 1% per year, to 0%, after the purchase payment has been held in
the contract for 84 months. No sales charges are deducted on redemptions used to
purchase units in the fixed investment options of the Company.
The following administrative charges are deducted by the Company: (a) an
annual contract maintenance charge of $30 which is satisfied by surrendering
units; and (b) a mortality risk charge, an expense risk charge and an
administration charge assessed through the daily unit value calculation equal to
an annual rate of 0.80%, 0.45% and 0.15%, respectively. No charges are deducted
from the initial funding by the Depositor, or from earnings thereon.
(3) SCHEDULE I
Schedule I presents the components of the change in the unit values, which
are the basis for contract owners' equity. This schedule is presented in the
following format:
- Beginning unit value - Feb. 28
- Reinvested capital gains and dividends
(This amount reflects the increase in the unit value due to
capital gains and dividend distributions from the underlying
mutual funds.)
- Unrealized gain (loss)
(This amount reflects the increase (decrease) in the unit value
resulting from the market appreciation (depreciation) of the
underlying mutual funds.)
- Contract charges
(This amount reflects the decrease in the unit value due to the
mortality risk charge, expense risk charge and administration
charge discussed in note 2.)
- Ending unit value - June 30
- Percentage increase (decrease) in unit value.
For contracts in the payout phase, an assumed investment return of 3.5%,
used in the calculation of the annuity benefit payment amount, results in a
corresponding reduction in the components of the unit values as shown in
Schedule I.
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SCHEDULE I
NATIONWIDE VARIABLE ACCOUNT-6
TAX QUALIFIED AND NON-TAX QUALIFIED
SCHEDULE OF CHANGES IN UNIT VALUE
For the Period February 28, 1996 (commencement of operations)
Through June 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
EVFOUND EVFUND EVGRINC FIDVIPAM FIDVIPHI FIDVIPOV
1996
<S> <C> <C <C> <C> <C> <C>
Beginning unit value - Feb. 28 $10.000000 10.000000 10.000000 10.000000 10.000000 10.000000
- ---------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .000000 .000000 .000000 .000000 .000000 .000000
- ---------------------------------------------------------------------------------------------------
Unrealized gain (loss) .068880 .588396 .708330 .370285 .295845 .460812
- ---------------------------------------------------------------------------------------------------
Contract charges (.044930) (.046783) (.047277) (.046095) (.045725) (.046377)
- ---------------------------------------------------------------------------------------------------
Ending unit value - June 30 $10.023950 10.541613 10.661053 10.324190 10.250120 10.414435
- ---------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 0% 5% 7% 3% 3% 4%
===================================================================================================
<FN>
* This is not an annualized rate of return as it is the change for the period indicated and
contract charges do not include the annual contract maintenance charge discussed in note 2.
</TABLE>
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SCHEDULE I, CONTINUED
NATIONWIDE VARIABLE ACCOUNT-6
TAX QUALIFIED AND NON-TAX QUALIFIED
SCHEDULE OF CHANGES IN UNIT VALUE
For the Period February 28, 1996 (commencement operations)
Through June 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NSATGVTBD NSATMYMKT EVFOUND+ EVFUND+ EVGRINC+
<S> <C> <C> <C> <C> <C>
1996
Beginning unit value - Feb. 28 $10.000000 10.000000 10.000000 10.000000 10.000000
- ---------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .307937 .164484 .000000 .000000 .000000
- ---------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.383461) .000000 .070000 .590000 .710000
- ---------------------------------------------------------------------------------------------------
Contract charges (.044464) (.046204) .000000 .000000 .000000
- ---------------------------------------------------------------------------------------------------
Ending unit value - June 30 $ 9.880012 10.118280 10.070000 10.590000 10.710000
- ---------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (1)% 1% 1% 6% 7%
===================================================================================================
<FN>
* This is not an annualized rate of return as it is the change for the period indicated and
contract charges do not include the annual contract maintenance charge discussed in note 2.
+ For Depositor, see note 1a.
</TABLE>
See note 3.
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NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide
Mutual Insurance Company
