<PAGE> 1
[NATIONWIDE(R) LOGO]
NATIONWIDE(R)
VARIABLE
ACCOUNT-6
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 1999
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
<PAGE> 2
[NATIONWIDE(R) LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[GASPER PHOTO]
PRESIDENT'S MESSAGE
On behalf of Nationwide Life Insurance Company, we are pleased to present the
1999 semi-annual report of the Nationwide Variable Account-6.
Equity investments performed well during the first half of 1999 with the major
market indices showing double-digit gains. Fixed income investments did not fare
as well during this period in the face of the Federal Reserve's inflation
cautiousness. The Fed is mindful of the resilient U.S. economy and the
increasingly tight labor pool that portends future wage inflation. Accordingly,
we have seen a ratcheting-up of short-term interest rates to dampen the momentum
of the current expansion. How aggressively the Fed may react to the perceived
inflation threat only adds uncertainty to the already jittery equity markets.
Over the long term, however, a slower but sustainable rate of growth, with low
inflation, provides a favorable environment for further advances in financial
assets.
At mid-year, we are pleased to report that all the mission-critical systems used
to service our variable annuity and variable life business have been internally
inventoried, assessed and tested as being Year 2000 compliant. We are currently
contacting our critical business partners to determine if they will be Year 2000
compliant. Contingency plans are being developed and are to be completed by the
end of the third quarter. All these steps are being taken to assure that
Nationwide Financial will be able to continue to serve your financial needs into
the Year 2000 and beyond.
Thank you for selecting Nationwide Financial to help you achieve your financial
planning and retirement savings goals. You have our commitment to provide the
consistent, high quality service you expect and deserve.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 19, 1999
3
<PAGE> 3
- --------------------------------------------------------------------------------
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1999
(UNAUDITED)
ASSETS:
<TABLE>
<CAPTION>
Investments at market value:
<S> <C>
Evergreen - VA Aggressive Growth Fund (EvAggrGro) 504,228 shares (cost $6,301,472)............... $ 7,719,726
Evergreen - VA Foundation Fund (EvFound) 6,260,901 shares (cost $84,307,185)..................... 95,165,693
Evergreen - VA Fund (EvFund) 2,747,734 shares (cost $40,123,099)................................. 47,398,406
Evergreen - VA Global Leaders Fund (EvGloLead) 1,020,641 shares (cost $12,145,555)............... 14,105,259
Evergreen - VA Growth and Income Fund (EvGrInc) 3,870,042 shares (cost $56,633,772).............. 66,177,723
Evergreen - VA International Growth Fund (EvIntGr) 227,540 shares (cost $2,173,678).............. 2,207,138
Evergreen - VA Masters Fund (EvMasters) 1,114,466 shares (cost $11,111,700)...................... 12,080,813
Evergreen - VA Small Cap Equity Income Fund (EvSmCapEI) 357,726 shares (cost $3,418,310)......... 3,791,898
Evergreen - VA Strategic Income Fund (EvStratInc) 1,530,471 shares (cost $16,006,256)............ 15,763,846
Fidelity VIP - High Income Portfolio (FidVIPHI) 196,876 shares (cost $2,413,769)................. 2,222,726
Fidelity VIP - Overseas Portfolio (FidVIPOv) 138,181 shares (cost $2,591,354).................... 2,874,171
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM) 126,342 shares (cost $2,041,219)............ 2,234,995
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon) 110,712 shares (cost $2,358,210).............. 2,889,578
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp) 164,162 shares (cost $3,127,467).. 3,880,800
Nationwide SAT - Government Bond Fund (NSATGvtBd) 114,435 shares (cost $1,329,592)............... 1,273,661
Nationwide SAT - Money Market Fund (NSATMyMkt) 6,976,283 shares (cost $6,976,283)................ 6,976,283
-------------
Total assets............................................................................... 286,762,716
ACCOUNTS PAYABLE....................................................................................... 30,193
-------------
CONTRACT OWNERS' EQUITY................................................................................ $ 286,732,523
=============
</TABLE>
4
<PAGE> 4
<TABLE>
<CAPTION>
Contract owners' equity represented by: UNITS UNIT VALUE RETURN(b)
-------- ---------- ---------
Contracts in accumulation phase:
<S> <C> <C> <C> <C>
Evergreen - VA Aggressive Growth Fund:
Tax qualified................................. 146,423 $ 14.816275 $ 2,169,443 12%
Non-tax qualified............................. 271,276 14.816275 4,019,300 12%
Initial Funding by Depositor (note 1a)........ 100,000 15.310000 1,531,000 13%
Evergreen - VA Foundation Fund:
Tax qualified................................. 1,749,092 16.368638 28,630,254 5%
Non-tax qualified............................. 3,960,034 16.368638 64,820,363 5%
Initial Funding by Depositor (note 1a)........ 100,000 17.154733 1,715,473 5%
Evergreen - VA Fund:
Tax qualified................................. 723,403 18.136099 13,119,708 13%
Non-tax qualified............................. 1,785,226 18.136099 32,377,035 13%
Initial Funding by Depositor (note 1a)........ 100,000 19.006990 1,900,699 13%
Evergreen - VA Global Leaders Fund:
Tax qualified................................. 293,968 13.564543 3,987,542 8%
Non-tax qualified............................. 642,570 13.564543 8,716,168 8%
Initial Funding by Depositor (note 1a)........ 100,000 14.016370 1,401,637 8%
Evergreen - VA Growth and Income Fund:
Tax qualified................................. 1,047,949 17.677539 18,525,159 10%
Non-tax qualified............................. 2,590,825 17.677539 45,799,410 10%
Initial Funding by Depositor (note 1a)........ 100,000 18.526510 1,852,651 10%
Evergreen - VA International Growth Fund:
Tax qualified................................. 41,659 9.582023 399,177 3%
Non-tax qualified............................. 87,452 9.582023 837,967 3%
Initial Funding by Depositor (note 1a)........ 100,000 9.700000 970,000 3%
Evergreen - VA Masters Fund:
Tax qualified................................. 242,992 10.777889 2,618,941 8%(a)
Non-tax qualified............................. 475,595 10.777889 5,125,910 8%(a)
Initial Funding by Depositor (note 1a)........ 400,000 10.840000 4,336,000 8%(a)
Evergreen - VA Small Cap Equity Income:
Tax qualified................................. 70,215 10.573625 742,427 10%
Non-tax qualified............................. 186,750 10.573625 1,974,624 10%
Initial Funding by Depositor (note 1a)........ 100,000 10.748620 1,074,862 11%
Evergreen - VA Strategic Income Fund:
Tax qualified................................. 455,045 10.697284 4,867,746 (2)%
Non-tax qualified............................. 915,252 10.697284 9,790,711 (2)%
Initial Funding by Depositor (note 1a)........ 100,000 11.053890 1,105,389 (1)%
Fidelity VIP - High Income Portfolio:
Tax qualified................................. 37,820 12.691466 479,991 7%
Non-tax qualified............................. 137,313 12.691466 1,742,703 7%
</TABLE>
(Continued)
5
<PAGE> 5
<TABLE>
<S> <C> <C> <C> <C>
Fidelity VIP - Overseas Portfolio:
Tax qualified................................. 33,844 14.303680 484,094 7%
Non-tax qualified............................. 167,095 14.303680 2,390,073 7%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified................................. 34,224 15.662258 536,025 5%
Non-tax qualified............................. 108,475 15.662258 1,698,963 5%
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified................................. 23,652 16.766890 396,570 10%
Non-tax qualified............................. 148,687 16.766890 2,493,019 10%
Fidelity VIP-III - Growth Opportunities Portfolio:
Tax qualified................................. 42,782 15.845697 677,911 6%
Non-tax qualified............................. 202,131 15.845697 3,202,907 6%
Nationwide SAT - Government Bond Fund:
Tax qualified................................. 9,083 11.639261 105,719 (3)%
Non-tax qualified............................. 100,345 11.639261 1,167,942 (3)%
Nationwide SAT - Money Market Fund:
Tax qualified................................. 206,798 11.273514 2,331,340 2%
Non-tax qualified............................. 409,426 11.273514 4,615,670 2%
========== ========= ----------
$286,732,523
============
</TABLE>
(a) This investment option was not being utilized for the entire period.
Accordingly, the period return was computed for such period as the
investment option was utilized.
(b) The period return does not include contract charges satisfied by
surrendering units.
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
6
<PAGE> 6
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL EVAGGRGRO
------------------------------ -------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... $ 601,014 385,096 -- --
Mortality, expense and administration
charges (note 2) ............................. (1,601,066) (832,641) (27,373) (8,957)
------------- ------------- ------------- -------------
Net investment activity ...................... (1,000,052) (447,545) (27,373) (8,957)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold .......... 7,522,559 9,343,779 189,882 539,674
Cost of mutual fund shares sold ................ (6,571,249) (7,473,459) (143,576) (516,052)
------------- ------------- ------------- -------------
Realized gain (loss) on investments .......... 951,310 1,870,320 46,306 23,622
Change in unrealized gain (loss) on investments 17,495,150 5,575,680 658,664 252,155
------------- ------------- ------------- -------------
Net gain (loss) on investments ............... 18,446,460 7,446,000 704,970 275,777
------------- ------------- ------------- -------------
Reinvested capital gains ....................... 965,810 575,117 -- --
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 18,412,218 7,573,572 677,597 266,820
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from contract owners 63,088,193 74,560,944 2,121,586 913,597
Transfers between funds ........................ -- -- 946,881 10,471
Redemptions .................................... (8,983,186) (4,172,465) (62,540) (6,171)
Contingent deferred sales charges (note 2) ..... (252,949) (64,008) (2,411) --
Adjustments to maintain reserves ............... 3,999,358 (1,686) 20 (31)
------------- ------------- ------------- -------------
Net equity transactions .................... 57,851,416 70,322,785 3,003,536 917,866
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............ 76,263,634 77,896,357 3,681,133 1,184,686
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ...... 210,468,889 90,795,722 4,038,610 1,869,162
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ............ $ 286,732,523 168,692,079 7,719,743 3,053,848
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
EVFOUND EVFUND
------------------------------ -------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... -- -- 74,937 --
Mortality, expense and administration
charges (note 2) ............................. (549,690) (273,109) (278,621) (157,435)
------------- ------------- ------------- -------------
Net investment activity ...................... (549,690) (273,109) (203,684) (157,435)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold .......... 56,511 1,149,320 882,049 2,615,142
Cost of mutual fund shares sold ................ (36,569) (790,041) (591,635) (1,642,377)
------------- ------------- ------------- -------------
Realized gain (loss) on investments .......... 19,942 359,279 290,414 972,765
Change in unrealized gain (loss) on investments 4,201,774 1,959,787 4,871,665 803,478
------------- ------------- ------------- -------------
Net gain (loss) on investments ............... 4,221,716 2,319,066 5,162,079 1,776,243
------------- ------------- ------------- -------------
Reinvested capital gains ....................... 198,134 -- 157,626 --
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 3,870,160 2,045,957 5,116,021 1,618,808
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from contract owners 24,758,183 25,167,962 6,910,085 13,644,028
Transfers between funds ........................ 238,888 561,663 (1,272,820) 183,261
Redemptions .................................... (2,826,569) (1,799,319) (1,255,170) (909,973)
Contingent deferred sales charges (note 2) ..... (78,403) (22,260) (34,571) (15,419)
Adjustments to maintain reserves ............... 395 (158) (944) 214
------------- ------------- ------------- -------------
Net equity transactions .................... 22,092,494 23,907,888 4,346,581 12,902,111
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............ 25,962,654 25,953,845 9,462,602 14,520,919
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ...... 69,203,436 28,413,017 37,934,840 17,317,316
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ............ 95,166,090 54,366,862 47,397,442 31,838,235
============= ============= ============= =============
</TABLE>
(Continued)
7
<PAGE> 7
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
EVGLOLEAD EVGRINC
---------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 2,531 -- -- --
Mortality, expense and administration
charges (note 2) ............................ (69,962) (23,620) (404,029) (250,811)
------------ ------------ ------------ ------------
Net investment activity ..................... (67,431) (23,620) (404,029) (250,811)
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 218,247 60,854 1,390,664 1,187,217
Cost of mutual fund shares sold ............... (194,339) (52,284) (894,381) (755,938)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 23,908 8,570 496,283 431,279
Change in unrealized gain (loss) on investments 973,972 451,962 5,299,628 1,782,135
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 997,880 460,532 5,795,911 2,213,414
------------ ------------ ------------ ------------
Reinvested capital gains ...................... -- -- 303,858 --
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations .......... 930,449 436,912 5,695,740 1,962,603
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................... 3,740,552 3,296,645 9,287,720 20,969,486
Transfers between funds ....................... 208,174 94,729 (2,350,889) 565,489
Redemptions ................................... (344,493) (52,539) (2,055,708) (1,164,222)
Contingent deferred sales charges (note 2) .... (11,603) (262) (67,033) (22,559)
Adjustments to maintain reserves .............. 95 (335) (502) 430
------------ ------------ ------------ ------------
Net equity transactions ................... 3,592,725 3,338,238 4,813,588 20,348,624
------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 4,523,174 3,775,150 10,509,328 22,311,227
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 9,582,173 2,898,619 55,667,892 26,779,146
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 14,105,347 6,673,769 66,177,220 49,090,373
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
EVINTGR EVMASTERS
---------------------------- -----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... -- -- -- --
Mortality, expense and administration
charges (note 2) ............................ (5,746) -- (23,598) --
------------ ------------ ------------ ------------
Net investment activity ..................... (5,746) -- (23,598) --
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 131,467 -- 83,903 --
Cost of mutual fund shares sold ............... (122,072) -- (85,281) --
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 9,395 -- (1,378) --
Change in unrealized gain (loss) on investments 63,974 -- 969,114 --
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 73,369 -- 967,736 --
------------ ------------ ------------ ------------
Reinvested capital gains ...................... -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations .......... 67,623 -- 944,138 --
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................... 801,275 -- 6,022,702 --
Transfers between funds ....................... (72,124) -- 1,139,944 --
Redemptions ................................... (13,296) -- (25,075) --
Contingent deferred sales charges (note 2) .... (502) -- (895) --
Adjustments to maintain reserves .............. 7 -- 4,000,037 --
------------ ------------ ------------ ------------
Net equity transactions ................... 715,359 -- 11,136,713 --
------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 782,982 -- 12,080,851 --
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,424,162 -- -- --
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 2,207,144 -- 12,080,851 --
============ ============ ============ ============
</TABLE>
8
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
EVSMCAPEI EVSTRATINC
-------------------------- ---------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ -- -- -- --
Mortality, expense and administration
charges (note 2) .............................. (13,838) (347) (84,422) (22,370)
----------- ----------- ----------- -----------
Net investment activity ..................... (13,838) (347) (84,422) (22,370)
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 172,175 1 684,434 725,005
Cost of mutual fund shares sold ............... (172,666) (1) (683,347) (706,740)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... (491) -- 1,087 18,265
Change in unrealized gain (loss) on investments 372,539 (20,168) (121,243) 112,226
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 372,048 (20,168) (120,156) 130,491
----------- ----------- ----------- -----------
Reinvested capital gains ...................... -- -- -- --
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations .......... 358,210 (20,515) (204,578) 108,121
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................... 1,130,307 1,392,397 5,564,669 5,021,220
Transfers between funds ....................... 88,097 400 (85,757) 64,034
Redemptions ................................... (63,506) (437) (666,833) (44,832)
Contingent deferred sales charges (note 2) .... (2,900) -- (26,280) (601)
Adjustments to maintain reserves .............. 16 -- 4 (66)
----------- ----------- ----------- -----------
Net equity transactions ................... 1,152,013 1,392,360 4,785,802 5,039,755
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 1,510,223 1,371,845 4,581,224 5,147,876
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 2,281,690 -- 11,182,622 2,204,875
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 3,791,913 1,371,845 15,763,846 7,352,751
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
FIDVIPHI FIDVIPOV
-------------------------- --------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 192,964 166,235 44,638 51,626
Mortality, expense and administration
charges (note 2) .............................. (15,335) (16,746) (20,061) (20,199)
----------- ----------- ----------- -----------
Net investment activity ..................... 177,629 149,489 24,577 31,427
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 147,462 174,595 291,700 105,569
Cost of mutual fund shares sold ............... (160,340) (156,298) (258,675) (94,445)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... (12,878) 18,297 33,025 11,124
Change in unrealized gain (loss) on investments (19,411) (180,593) 75,193 205,970
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. (32,289) (162,296) 108,218 217,094
----------- ----------- ----------- -----------
Reinvested capital gains ...................... 7,214 105,628 71,996 152,162
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations .......... 152,554 92,821 204,791 400,683
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................... 107,827 465,740 28,714 98,756
Transfers between funds ....................... (52,049) (73,483) (223,105) (50,195)
Redemptions ................................... (72,629) (48,959) (46,891) (37,400)
Contingent deferred sales charges (note 2) .... (1,856) (679) (937) (415)
Adjustments to maintain reserves .............. (14) (351) 26 (501)
----------- ----------- ----------- -----------
Net equity transactions ................... (18,721) 342,268 (242,192) 10,245
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 133,833 435,089 (37,401) 410,928
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 2,088,861 2,060,711 2,911,568 2,661,194
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 2,222,694 2,495,800 2,874,167 3,072,122
=========== =========== =========== ===========
</TABLE>
(Continued)
9
<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPAM FID VIPCON
-------------------------- ---------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 71,275 60,892 10,312 9,259
Mortality, expense and administration
charges (note 2) .............................. (15,261) (14,076) (17,259) (10,547)
----------- ----------- ----------- -----------
Net investment activity ..................... 56,014 46,816 (6,947) (1,288)
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 101,985 64,825 38,099 37,489
Cost of mutual fund shares sold ............... (90,603) (57,828) (26,663) (30,011)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 11,382 6,997 11,436 7,478
Change in unrealized gain (loss) on investments (61,413) (69,786) 155,448 154,562
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. (50,031) (62,789) 166,884 162,040
----------- ----------- ----------- -----------
Reinvested capital gains ...................... 90,281 182,677 75,624 68,120
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations .......... 96,264 166,704 235,561 228,872
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................... 17,281 133,070 30,316 293,988
Transfers between funds ....................... 55,962 10,870 555,724 102,428
Redemptions ................................... (89,015) (52,242) (32,197) (11,112)
Contingent deferred sales charges (note 2) .... (2,636) (663) (677) (277)
Adjustments to maintain reserves .............. 12 (284) 20 (204)
----------- ----------- ----------- -----------
Net equity transactions ................... (18,396) 90,751 553,186 384,823
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 77,868 257,455 788,747 613,695
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 2,157,120 1,886,838 2,100,842 1,193,024
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 2,234,988 2,144,293 2,889,589 1,806,719
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
FIDVIPGROP NSATGVTBD
-------------------------- ---------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 32,669 19,139 34,398 8,404
Mortality, expense and administration
charges (note 2) .............................. (24,378) (13,775) (9,123) (2,000)
----------- ----------- ----------- -----------
Net investment activity ..................... 8,291 5,364 25,275 6,404
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 65,596 58,014 95,082 21,453
Cost of mutual fund shares sold ............... (43,068) (46,430) (94,731) (20,393)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 22,528 11,584 351 1,060
Change in unrealized gain (loss) on investments 118,697 121,919 (63,451) 2,033
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 141,225 133,503 (63,100) 3,093
----------- ----------- ----------- -----------
Reinvested capital gains ...................... 61,077 66,530 -- --
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations .......... 210,593 205,397 (37,825) 9,497
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................... 42,389 720,451 18,134 18,604
Transfers between funds ....................... 474,171 48,769 (4,049) --
Redemptions ................................... (45,888) (11,460) (72,742) (18,808)
Contingent deferred sales charges (note 2) .... (1,430) (382) (1,866) (402)
Adjustments to maintain reserves .............. 36 (346) 1 (41)
----------- ----------- ----------- -----------
Net equity transactions ................... 469,277 757,032 (60,522) (647)
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 679,870 962,429 (98,347) 8,850
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 3,200,948 1,509,830 1,372,008 290,314
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 3,880,818 2,472,259 1,273,661 299,164
=========== =========== =========== ===========
</TABLE>
10
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
NSATMYMKT
---------------------------
1999 1998
----------- -----------
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 137,290 69,541
Mortality, expense and administration
charges (note 2) .............................. (42,370) (18,649)
----------- -----------
Net investment activity ..................... 94,920 50,892
----------- -----------
Proceeds from mutual fund shares sold ......... 2,973,303 2,604,621
Cost of mutual fund shares sold ............... (2,973,303) (2,604,621)
----------- -----------
Realized gain (loss) on investments ......... -- --
Change in unrealized gain (loss) on investments -- --
----------- -----------
Net gain (loss) on investments .............. -- --
----------- -----------
Reinvested capital gains ...................... -- --
----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations .......... 94,920 50,892
----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................... 2,506,455 2,425,000
Transfers between funds ....................... 352,951 (1,518,436)
Redemptions ................................... (1,310,633) (14,991)
Contingent deferred sales charges (note 2) .... (18,949) (89)
Adjustments to maintain reserves .............. 148 (13)
----------- -----------
Net equity transactions ................... 1,529,973 891,471
----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 1,624,893 942,363
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 5,322,117 1,711,676
----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 6,947,010 2,654,039
=========== ===========
See accompanying notes to financial statements.
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11
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NATIONWIDE VARIABLE ACCOUNT-6
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 AND 1998
(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.
On August 17, 1998, the Company (Depositor) transferred to the Account,
100,000 shares of the Evergreen International Growth 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 August 17,
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 International Growth Fund (EvIntGr)
Evergreen - VA Masters Fund (EvMasters)
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)
12
<PAGE> 12
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)
At June 30, 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 June 30, 1999. 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.
13
<PAGE> 13
(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 - 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
