<PAGE> 1
[NATIONWIDE LOGO]
NATIONWIDE(R)
VARIABLE
ACCOUNT-6
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 1998
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-3232-D (6/98)
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[JOSEPH J. GASPER GRAPHIC]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to present
the 1998 semi-annual report of the Nationwide Variable
Account-6.
The bull market continued its run in the first half of 1998.
Most of the gains came in the first quarter with more modest
returns or small losses for the second half of the period. At
this writing, a market correction that began in the second
quarter continues to provide a good deal of day-to-day
volatility. Much of the capriciousness of the market is due to
uncertainty about the economic outcome in Asia. However, we
think the correction will be of limited magnitude and duration
and will provide a healthy respite before further market
advances.
We believe that existing economic and market fundamentals
provide an ongoing favorable environment for financial assets.
Interest rates remain low; inflation is nearly nonexistent;
corporate earnings, albeit slowing, remain positive, and U.S.
economic growth appears to be on a modest but sustainable
track.
Against this backdrop, we believe our variable insurance
products continue to provide the versatile investment vehicle
you need to respond to changing market conditions. We are
committed to the continual evaluation of our products and
services to ensure that we remain responsive to your long-term
financial planning and retirement-savings needs.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 17, 1998
3
<PAGE> 3
<TABLE>
<CAPTION>
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1998
(UNAUDITED)
ASSETS:
Investments at market value:
<S> <C>
Evergreen - VA Aggressive Growth Fund (EvAggrGro)
248,688 shares (cost $2,705,933) .......................... $ 3,053,887
Evergreen - VA Foundation Fund (EvFound)
3,754,628 shares (cost $47,717,521) ....................... 54,367,010
Evergreen - VA Fund (EvFund)
1,962,909 shares (cost $27,637,567) ....................... 31,838,382
Evergreen - VA Global Leaders Fund (EvGloLead)
543,476 shares (cost $6,173,699) .......................... 6,673,882
Evergreen - VA Growth and Income Fund (EvGrInc)
2,984,229 shares (cost $41,966,821) ....................... 49,090,559
Evergreen - VA Small Cap Equity Income Fund (EvSmCapEI)
139,842 shares (cost $1,392,013) .......................... 1,371,845
Evergreen - VA Strategic Income Fund (EvStratInc)
693,662 shares (cost $7,230,947) .......................... 7,352,816
Fidelity VIP - High Income Portfolio (FidVIPHI)
197,634 shares (cost $2,450,914) .......................... 2,496,121
Fidelity VIP - Overseas Portfolio (FidVIPOv)
149,008 shares (cost $2,759,681) .......................... 3,072,548
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
124,324 shares (cost $1,983,836) .......................... 2,144,585
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
82,320 shares (cost $1,545,524) ........................... 1,806,926
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
120,965 shares (cost $2,149,898) .......................... 2,472,521
Nationwide SAT - Government Bond Fund (NSATGvtBd)
26,018 shares (cost $291,491) ............................. 299,202
Nationwide SAT - Money Market Fund (NSATMyMkt)
2,778,597 shares (cost $2,778,597) ........................ 2,778,597
------------
Total investments ...................................... $168,818,881
Accounts receivable ............................................. -
------------
Total assets ........................................... 168,818,881
ACCOUNTS PAYABLE ................................................... 126,802
------------
CONTRACT OWNERS' EQUITY ............................................ $168,692,079
============
</TABLE>
4
<PAGE> 4
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN
<S> <C> <C> <C> <C>
--------- ----------- -----------
Contracts in accumulation phase:
Evergreen - VA Aggressive Growth Fund:
Tax qualified ................................................. 54,239 $ 12.052518 $ 653,717 10%
Non-tax qualified ............................................. 97,252 12.052518 1,172,131 10%
Initial Funding by Depositor (note 1a) ........................ 100,000 12.280000 1,228,000 11%
Evergreen - VA Foundation Fund:
Tax qualified ................................................. 973,975 15.247284 14,850,473 6%
Non-tax qualified ............................................. 2,488,364 15.247284 37,940,793 6%
Initial Funding by Depositor (note 1a) ........................ 100,000 15.755959 1,575,596 7%
Evergreen - VA Fund:
Tax qualified ................................................. 469,163 16.607465 7,791,608 8%
Non-tax qualified ............................................. 1,344,605 16.607465 22,330,480 8%
Initial Funding by Depositor (note 1a) ........................ 100,000 17.161470 1,716,147 9%
Evergreen - VA Global Leaders Fund:
Tax qualified ................................................. 132,458 12.152751 1,609,729 13%
Non-tax qualified ............................................. 314,813 12.152751 3,825,844 13%
Initial Funding by Depositor (note 1a) ........................ 100,000 12.381956 1,238,196 14%
Evergreen - VA Growth and Income Fund:
Tax qualified ................................................. 761,995 16.682021 12,711,617 7%
Non-tax qualified ............................................. 2,077,380 16.682021 34,654,897 7%
Initial Funding by Depositor (note 1a) ........................ 100,000 17.238588 1,723,859 8%
Evergreen - VA Small Cap Equity Income:
Tax qualified ................................................. 2,507 9.787265 24,537 (2)%(a)
Non-tax qualified ............................................. 37,427 9.787265 366,308 (2)%(a)
Initial Funding by Depositor (note 1a) ........................ 100,000 9.810000 981,000 (2)%(a)
Evergreen - VA Strategic Income Fund:
Tax qualified ................................................. 196,741 10.738537 2,112,711 3%
Non-tax qualified ............................................. 386,079 10.738537 4,145,924 3%
Initial Funding by Depositor (note 1a) ........................ 100,000 10.941161 1,094,116 4%
Fidelity VIP - High Income Portfolio:
Tax qualified ................................................. 38,417 13.059633 501,712 4%
Non-tax qualified ............................................. 152,691 13.059633 1,994,088 4%
Fidelity VIP - Overseas Portfolio:
Tax qualified ................................................. 31,767 13.799537 438,370 15%
Non-tax qualified ............................................. 190,858 13.799537 2,633,752 15%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified ................................................. 34,702 14.334463 497,435 9%
Non-tax qualified ............................................. 114,888 14.334463 1,646,858 9%
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified ................................................. 14,997 13.727407 205,870 16%
Non-tax qualified ............................................. 116,617 13.727407 1,600,849 16%
Fidelity VIP-III - Growth Opportunities Portfolio:
Tax qualified ................................................. 23,406 13.483086 315,585 11%
Non-tax qualified ............................................. 159,954 13.483086 2,156,674 11%
Nationwide SAT - Government Bond Fund:
Tax qualified ................................................. 8,797 11.522709 101,365 3%
Non-tax qualified ............................................. 17,166 11.522709 197,799 3%
Nationwide SAT - Money Market Fund:
Tax qualified ................................................. 98,770 10.895605 1,076,159 2%
Non-tax qualified ............................................. 144,818 10.895605 1,577,880 2%
========= =========== ------------
$168,692,079
============
</TABLE>
(a) This investment option was not being utilized for the entire period.
See accompanying notes to financial statements.
5
<PAGE> 5
<TABLE>
<CAPTION>
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
TOTAL EVAGGRGRO
-------------------------------- --------------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 385,096 196,240 -- --
Mortality, expense and administration ......... (832,641) (274,614) (8,957) (339)
charges (note 2) ............................ ------------- ------------- ------------- -------------
Net investment activity ..................... (447,545) (78,374) (8,957) (339)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ......... 9,343,779 2,106,726 539,674 32,605
Cost of mutual fund shares sold ............... (7,473,459) (1,999,173) (516,052) (32,643)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ......... 1,870,320 107,553 23,622 (38)
Change in unrealized gain (loss) on investments 5,575,680 6,296,866 252,155 34,481
------------- ------------- ------------- -------------
Net gain (loss) on investments .............. 7,446,000 6,404,419 275,777 34,443
Reinvested capital gains ...................... 575,117 224,096 -- --
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 7,573,572 6,550,141 266,820 34,104
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 74,560,944 17,238,573 913,597 1,060,521
Transfers between funds ....................... -- -- 10,471 37,605
Redemptions ................................... (4,172,465) (520,967) (6,171) --
Annuity benefits .............................. -- -- -- --
Annual contract maintenance charge (note 2) ... -- -- -- --
Contingent deferred sales charges (note 2) .... (64,008) (10,993) -- --
Adjustments to maintain reserves .............. (1,686) (23,144) (31) (27)
------------- ------------- ------------- -------------
Net equity transactions ................... 70,322,785 16,683,469 917,866 1,098,099
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 77,896,357 23,233,610 1,184,686 1,132,203
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 90,795,722 37,202,930 1,869,162 --
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 168,692,079 60,436,540 3,053,848 1,132,203
============= ============= ============= =============
<CAPTION>
EVFOUND EVFUND
-------------------------------- ---------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
INVESTMENT ACTIVITY:
Reinvested dividends .......................... -- -- -- --
Mortality, expense and administration ......... (273,109) (97,328) (157,435) (51,376)
charges (note 2) ............................ ------------- ------------- ------------- -------------
Net investment activity ..................... (273,109) (97,328) (157,435) (51,376)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ......... 1,149,320 186,986 2,615,142 179,388
Cost of mutual fund shares sold ............... (790,041) (151,304) (1,642,377) (141,186)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ......... 359,279 35,682 972,765 38,202
Change in unrealized gain (loss) on investments 1,959,787 2,067,982 803,478 1,535,132
------------- ------------- ------------- -------------
Net gain (loss) on investments .............. 2,319,066 2,103,664 1,776,243 1,573,334
------------- ------------- ------------- -------------
Reinvested capital gains ...................... -- -- -- --
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 2,045,957 2,006,336 1,618,808 1,521,958
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 25,167,962 2,990,104 13,644,028 2,191,227
Transfers between funds ....................... 561,663 267,517 183,261 236,693
Redemptions ................................... (1,799,319) (141,324) (909,973) (44,760)
Annuity benefits .............................. -- -- -- --
Annual contract maintenance charge (note 2) ... -- -- -- --
Contingent deferred sales charges (note 2) .... (22,260) (3,437) (15,419) (300)
Adjustments to maintain reserves .............. (158) (8,253) 214 (4,465)
------------- ------------- ------------- -------------
Net equity transactions ................... 23,907,888 3,104,607 12,902,111 2,378,395
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 25,953,845 5,110,943 14,520,919 3,900,353
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 28,413,017 13,993,214 17,317,316 7,283,926
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 54,366,862 19,104,157 31,838,235 11,184,279
============= ============= ============= =============
</TABLE>
6
<PAGE> 6
<TABLE>
<CAPTION>
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
EVGLOLEAD EVGRINC
------------------------- --------------------------
1998 1997 1998 1997
---------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ -- -- -- --
Mortality, expense and administration
charges (note 2) ............................ (23,620) (420) (250,811) (80,877)
---------- ----------- ----------- -----------
Net investment activity ..................... (23,620) (420) (250,811) (80,877)
---------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 60,854 501 1,187,217 139,869
Cost of mutual fund shares sold ............... (52,284) (493) (755,938) (116,468)
---------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 8,570 8 431,279 23,401
Change in unrealized gain (loss) on investments 451,962 115,158 1,782,135 2,261,545
---------- ----------- ----------- -----------
Net gain (loss) on investments .............. 460,532 115,166 2,213,414 2,284,946
---------- ----------- ----------- -----------
Reinvested capital gains ...................... -- -- -- --
---------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 436,912 114,746 1,962,603 2,204,069
---------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 3,296,645 1,200,986 20,969,486 3,976,016
Transfers between funds ....................... 94,729 6,078 565,489 363,072
Redemptions ................................... (52,539) (30) (1,164,222) (116,185)
Annuity benefits .............................. -- -- -- --
Annual contract maintenance charge (note 2) ... -- -- -- --
Contingent deferred sales charges (note 2) .... (262) -- (22,559) (3,299)
Adjustments to maintain reserves .............. (336) (39) 430 (6,982)
---------- ----------- ----------- -----------
Net equity transactions ................... 3,338,237 1,206,995 20,348,624 4,212,622
---------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 3,775,149 1,321,741 22,311,227 6,416,691
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 2,898,620 -- 26,779,146 10,861,964
---------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $6,673,769 1,321,741 49,090,373 17,278,655
========== =========== =========== ===========
<CAPTION>
EVSMCAPEI EVSTRATINC
--------------------------- -----------------------
1998 1997 1998 1997
------------- ------------- -------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... -- -- -- --
Mortality, expense and administration
charges (note 2) ............................ (347) -- (22,370) (329)
----------- ----------- -------- -----------
Net investment activity ..................... (347) -- (22,370) (329)
----------- ----------- -------- -----------
Proceeds from mutual fund shares sold ......... 1 -- 725,005 232
Cost of mutual fund shares sold ............... (1) -- (706,740) (230)
----------- ----------- -------- -----------
Realized gain (loss) on investments ......... -- -- 18,265 2
Change in unrealized gain (loss) on investments (20,168) -- 112,226 12,939
----------- ----------- -------- -----------
Net gain (loss) on investments .............. (20,168) -- 130,491 12,941
----------- ----------- -------- -----------
Reinvested capital gains ...................... -- -- -- --
----------- ----------- -------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (20,515) -- 108,121 12,612
----------- ----------- -------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,392,397 -- 5,021,220 1,107,151
Transfers between funds ....................... 400 -- 64,034 8,708
Redemptions ................................... (437) -- (44,832) --
Annuity benefits .............................. -- -- -- --
Annual contract maintenance charge (note 2) ... -- -- -- --
Contingent deferred sales charges (note 2) .... -- -- (601) --
Adjustments to maintain reserves .............. -- -- (66) (30)
----------- ----------- ----------- -----------
Net equity transactions ................... 1,392,360 -- 5,039,755 1,115,829
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 1,371,845 -- 5,147,876 1,128,441
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... -- -- 2,204,875 --
----------- ---------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 1,371,845 -- 7,352,751 1,128,441
=========== =========== =========== ===========
</TABLE>
7
<PAGE> 7
<TABLE>
<CAPTION>
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
FIDVIPHI FIDVIPOV
-------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 166,235 81,089 51,626 25,789
Mortality, expense and administration
charges (note 2) ............................ (16,746) (8,805) (20,199) (11,217)
----------- ----------- ----------- -----------
Net investment activity ..................... 149,489 72,284 31,427 14,572
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 174,595 85,878 105,569 76,858
Cost of mutual fund shares sold ............... (156,298) (81,279) (94,445) (74,389)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 18,297 4,599 11,124 2,469
Change in unrealized gain (loss) on investments (180,593) 12,882 205,970 159,741
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. (162,296) 17,481 217,094 162,210
----------- ----------- ----------- -----------
Reinvested capital gains ...................... 105,628 10,022 152,162 102,376
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 92,821 99,787 400,683 279,158
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 465,740 502,131 98,756 642,340
Transfers between funds ....................... (73,483) (44,162) (50,195) 69,689
Redemptions ................................... (48,959) (21,463) (37,400) (28,913)
Annuity benefits .............................. -- -- -- --
Annual contract maintenance charge (note 2) ... -- -- -- --
Contingent deferred sales charges (note 2) .... (679) (951) (415) (1,148)
Adjustments to maintain reserves .............. (351) (715) (501) (935)
----------- ----------- ----------- -----------
Net equity transactions ................... 342,268 434,840 10,245 681,033
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 435,089 534,627 410,928 960,191
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 2,060,711 1,123,572 2,661,194 1,328,777
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 2,495,800 1,658,199 3,072,122 2,288,968
=========== =========== =========== ===========
<CAPTION>
FIDVIPAM FIDVIPCON
------------------------- --------------------------
1998 1997 1998 1997
------------ ------------ ----------- -----------
INVESTMENT ACTIVITY:
<S> <C> <C> <C>
Reinvested dividends .......................... 60,892 44,528 9,259 --
Mortality, expense and administration
charges (note 2) ............................ (14,076) (9,452) (10,547) (1,338)
------------ ----------- ----------- -----------
Net investment activity ..................... 46,816 35,076 (1,288) (1,338)
------------ ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 64,825 80,703 37,489 33,866
Cost of mutual fund shares sold ............... (57,828) (78,911) (30,011) (33,044)
------------ ----------- ----------- -----------
Realized gain (loss) on investments ......... 6,997 1,792 7,478 822
Change in unrealized gain (loss) on investments (69,786) 450 154,562 33,164
------------ ----------- ----------- -----------
Net gain (loss) on investments .............. (62,789) 2,242 162,040 33,986
------------ ----------- ----------- -----------
Reinvested capital gains ...................... 182,677 111,698 68,120 --
------------ ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 166,704 149,016 228,872 32,648
------------ ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 133,070 342,117 293,988 426,421
Transfers between funds ....................... 10,870 22,878 102,428 76,426
Redemptions ................................... (52,242) (33,227) (11,112) (6,627)
Annuity benefits .............................. -- -- -- --
Annual contract maintenance charge (note 2) ... -- -- -- --
Contingent deferred sales charges (note 2) .... (663) (1,793) (277) --
Adjustments to maintain reserves .............. (284) (790) (204) (112)
----------- ----------- ----------- -----------
Net equity transactions ................... 90,751 329,185 384,823 496,108
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 257,455 478,201 613,695 528,756
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,886,838 1,219,850 1,193,024 --
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 2,144,293 1,698,051 1,806,719 528,756
=========== =========== =========== ===========
</TABLE>
8
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPGROP
----------------------------
1998 1997
----------- -----------
<S> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 19,139 --
Mortality, expense and administration
charges (note 2) ............................ (13,775) (1,885)
----------- -----------
Net investment activity ..................... 5,364 (1,885)
----------- -----------
Proceeds from mutual fund shares sold ......... 58,014 1,079
Cost of mutual fund shares sold ............... (46,430) (1,041)
----------- -----------
Realized gain (loss) on investments ......... 11,584 38
Change in unrealized gain (loss) on investments 121,919 64,744
----------- -----------
Net gain (loss) on investments .............. 133,503 64,782
----------- -----------
Reinvested capital gains ...................... 66,530 --
----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 205,397 62,897
----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 720,451 599,533
Transfers between funds ....................... 48,769 157,716
Redemptions ................................... (11,460) (48)
Annuity benefits .............................. -- --
Annual contract maintenance charge (note 2) ... -- --
Contingent deferred sales charges (note 2) .... (382) --
Adjustments to maintain reserves .............. (346) (153)
----------- -----------
Net equity transactions ................... 757,032 757,048
----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 962,429 819,945
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,509,830 --
----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 2,472,259 819,945
=========== ===========
<CAPTION>
NSATGVTBD NSATMYMKT
---------------------------- ----------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 8,404 6,859 69,541 37,975
Mortality, expense and administration
charges (note 2) ............................ (2,000) (1,371) (18,649) (9,877)
----------- ----------- ----------- -----------
Net investment activity ..................... 6,404 5,488 50,892 28,098
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 21,453 54,578 2,604,621 1,234,183
Cost of mutual fund shares sold ............... (20,393) (54,002) (2,604,621) (1,234,183)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 1,060 576 -- --
Change in unrealized gain (loss) on investments 2,033 (1,352) -- --
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 3,093 (776) -- --
----------- ----------- ----------- -----------
Reinvested capital gains ...................... -- -- -- --
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 9,497 4,712 50,892 28,098
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 18,604 59,284 2,425,000 2,140,742
Transfers between funds ....................... -- (49,857) (1,518,436) (1,152,363)
Redemptions ................................... (18,808) (3,207) (14,991) (125,183)
Annuity benefits .............................. -- -- -- --
Annual contract maintenance charge (note 2) ... -- -- -- --
Contingent deferred sales charges (note 2) .... (402) (65) (89) --
Adjustments to maintain reserves .............. (41) (112) (12) (531)
----------- ----------- ----------- -----------
Net equity transactions ................... (647) 6,043 891,472 862,665
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 8,850 10,755 942,364 890,763
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 290,314 216,414 1,711,675 1,175,213
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 299,164 227,169 2,654,039 2,065,976
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements ..
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NATIONWIDE VARIABLE ACCOUNT-6
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 AND 1997
(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 each of the foregoing Evergreen Funds. 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.
On March 3, 1997, the Company (Depositor) transferred to the Account,
100,000 shares of the Evergreen - VA Aggressive Growth
Fund, 100,000 shares of the Evergreen - VA Global Leaders Fund and
100,000 shares of the Evergreen - VA Strategic Income Fund, for which
the Account was credited with 100,000 units of each of the foregoing
Evergreen Funds. The value of the units purchased by the Company on
March 3, 1997 was $3,000,000.
On May 1, 1998, the Company (Depositor) transferred to the Account,
100,000 shares of the Evergreen - VA Small Cap Equity Income Fund, for
which the Account was credited with 100,000 units of the foregoing
Evergreen Fund. The value of the units purchased by the Company on May
1, 1998 was $1,000,000. 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 Aggressive Growth Fund (EvAggrGro)
Evergreen - VA Foundation Fund (EvFound)
Evergreen - VA Fund (EvFund)
Evergreen - VA Global Leaders Fund (EvGloLead)
Evergreen - VA Growth and Income Fund (EvGrInc)
Evergreen - VA Small Cap Equity Income Fund (EvSmCapEI)
Evergreen - VA Strategic Income Fund (EvStratInc)
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - High Income Portfolio (FidVIPHI)
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 - Contrafund Portfolio (FidVIPCon)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
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)
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At June 30, 1998, 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, 1998. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company
under the 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 contract charges are deducted by the Company: 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) 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.
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NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA o 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
