<PAGE> 1
[NATIONWIDE LOGO]
NATIONWIDE(R)
VARIABLE
ACCOUNT-6
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 2000
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-3232-H (06/00)
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PRESIDENT PICTURE]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you the
2000 semi-annual report of the Nationwide Variable Account-6.
During the first half of 2000 fixed income and equity markets took a
hiatus from their recent advances. It appears the Federal Reserve's
interest rate hikers are accomplishing the intended purpose. Recent
economic statistics show some moderation in the areas of home and
vehicles sales because of the higher interest costs. And, there are
other favorable indications that the Fed may yet "glide" the economy to
a soft landing. Inflation remains low. Sustained increases in worker
productivity continue to dampen pricing pressures of an increasingly
tight labor pool. Corporate profitability growth remains viable. An
improving global economy bodes well for U.S. exporting businesses.
While all this provides a positive backdrop, we expect the markets will
continue jittery and volatile during the second half of the year as
uncertainty over further Fed actions persists. However, we believe
patient investors in financial assets will be amply rewarded when we
move beyond this temporary respite.
Nationwide Life was a forerunner in the variable annuity and variable
life insurance business. We continue to develop new and innovative
investment products to better meet your financial planning and
retirement needs. And, we are equally committed to providing you, our
valued customer, the exceptional level of customer service you expect
and deserve.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 16, 2000
2
<PAGE> 3
HOW TO READ THE SEMI-ANNUAL REPORT
This semi-annual report is a presentation of the variable account as a whole and
only describes the underlying contracts and products of the variable account in
general terms. Please note the variable account may have more than one variable
product available. Such products may have different underlying mutual funds
available than those available in your contract. Therefore, not all funds listed
in this report may be available in your contract. Please refer to your most
recent account statement for specific information about your investment in the
Nationwide Variable Account-6. Rules and regulations of the United States
Securities and Exchange Commission and recognized conventions of Generally
Accepted Accounting Principals prescribe the format and content of this report.
We also invite you to call our service center at 1-800-240-5054 if you have
questions about your account, or you may access your account using our voice
response unit. And, please visit our web-site at www.nwservicecenter.com for
additional information about your contract and to learn more about other
products and services offered by Nationwide Financial.
The Annual Report has four major financial sections:
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNER'S EQUITY
This statement begins on page 4 and lists all of the underlying mutual funds of
the variable account, the number of shares owned, the amount paid for the shares
and their market value as of the close of business on June 30, 2000. The mutual
funds are listed in alphabetical order. The market value of the assets changes
as the underlying mutual funds change in value. As contract owners make exchange
transactions between the funds, the number of shares increases or decreases
accordingly. When money is deposited or withdrawn by a contract owner, shares
are correspondingly purchased or redeemed. The total market value of the funds
is equal to the TOTAL INVESTMENTS of the variable account.
ACCOUNTS RECEIVABLE, if applicable, represents an asset of the variable account
for money market fund shares purchased by contract owners and reinvested
dividend shares added to contract owners' accounts, but not yet added to Total
investments. Total investments plus Accounts receivable equal TOTAL ASSETS of
the variable account.
ACCOUNTS PAYABLE, if applicable, is a liability of the variable account for
money market fund shares redeemed by contract owners' but not yet deducted from
Total investments.
Total assets minus Accounts payable equals CONTRACT OWNERS' EQUITY. A summary of
Contract owners' equity by funds series may be found on page 5. This summary
also includes investment return for the reporting period for each fund series.
STATEMENTS OF OPERATIONS AND STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
These statements begin on page 7 and present the financial activity of each
underlying mutual fund sub-account of the variable account, for the periods
indicated.
The INVESTMENT ACTIVITY section shows income to the variable account for
reinvested dividends and capital gain distributions paid by the underlying
mutual funds. Also shown are the mortality, expense and administration charges
which are assessed through the daily unit value calculation and which represent
an expense to the variable account and its contract owners. This section also
shows the realized gain or loss as mutual fund shares are sold, and the change
in unrealized gain or loss, which represents the changes in market value of the
underlying fund shares.
The EQUITY TRANSACTIONS section illustrates the receipt of purchase payments, as
new contracts are sold or additional payments made to existing contracts. Also
presented are deductions from the variable account when the contract owners
withdraw money.
The sum of the above two sections represents the NET CHANGE IN CONTRACT OWNERS'
EQUITY which when added to the beginning Contract owners' equity equals Contract
owners' equity at the end of the reporting period.
Notes to Financial Statements, beginning on page 12, provide further disclosures
about the variable account and its underlying contract provisions.
3
<PAGE> 4
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at market value:
Evergreen - VA Equity Index Fund (EvEIx)
1,240,872 shares (cost $13,753,115) ....................... $ 14,145,938
Evergreen - VA Foundation Fund (EvFound)
8,507,319 shares (cost $119,718,092) ...................... 131,523,157
Evergreen - VA Fund (EvFund)
3,212, 872 shares (cost $50,181,173) ...................... 53,237,287
Evergreen - VA Global Leaders Fund (EvGloLead)
1,796,586 shares (cost $24,163,470) ....................... 26,912,860
Evergreen - VA Growth and Income Fund (EvGrInc)
4,456,223 shares (cost $68,399,994) ....................... 74,641,739
Evergreen - VA International Growth Fund (EvIntGr)
549,054 shares (cost $6,025,051) .......................... 6,643,552
Evergreen - VA Masters Fund (EvMasters)
2,362,504 shares (cost $26,015,753) ....................... 30,334,549
Evergreen - VA Omega Fund (EvOmega)
3,039,977 shares (cost $58,870,860) ....................... 68,034,684
Evergreen - VA Small Cap Value Fund (EvSmCapV)
658,719 shares (cost $6,516,138) .......................... 7,107,573
Evergreen - VA Strategic Income Fund (EvStratInc)
1,785,085 shares (cost $18,549,684) ....................... 17,279,623
Fidelity VIP - High Income Portfolio (FidVIPHI)
183,490 shares (cost $2,224,102) .......................... 1,842,239
Fidelity VIP - Overseas Portfolio (FidVIPOv)
143,634 shares (cost $2,834,921) .......................... 3,369,655
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
121,974 shares (cost $2,009,280) .......................... 2,017,454
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
155,519 shares (cost $3,690,094) .......................... 3,901,981
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
152,344 shares (cost $3,049,843) .......................... 3,139,808
Nationwide SAT - Government Bond Fund (NSATGvtBd)
102,627 shares (cost $1,186,624) .......................... 1,117,613
Nationwide SAT - Money Market Fund (NSATMyMkt)
7,462,578 shares (cost $7,462,578) ........................ 7,462,578
------------
Total investments ...................................... 452,712,290
Accounts receivable .......................................... 2,556
------------
Total assets ........................................... 452,714,846
ACCOUNTS PAYABLE ................................................... 46,632
------------
CONTRACT OWNERS' EQUITY ............................................ $452,668,214
============
</TABLE>
4
<PAGE> 5
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN*
---------- ------------- --------------
<S> <C> <C> <C> <C>
Contracts in accumulation phase:
Evergreen - VA Equity Index Fund:
Tax qualified ................................. 366,720 $ 11.252712 $ 4,126,595 (1)%
Non-tax qualified ............................. 890,420 11.252712 10,019,640 (1)%
Evergreen - VA Foundation Fund:
Tax qualified ................................. 2,618,534 16.798233 43,986,744 (2)%
Non-tax qualified ............................. 5,211,200 16.798233 87,538,952 (2)%
Evergreen - VA Fund:
Tax qualified ................................. 921,194 18.880125 17,392,258 (3)%
Non-tax qualified ............................. 1,898,581 18.880125 35,845,447 (3)%
Evergreen - VA Global Leaders Fund:
Tax qualified ................................. 572,647 14.551993 8,333,155 (6)%
Non-tax qualified ............................. 1,276,811 14.551993 18,580,145 (6)%
Evergreen - VA Growth and Income Fund:
Tax qualified ................................. 1,277,782 18.338383 23,432,456 (3)%
Non-tax qualified ............................. 2,792,508 18.338383 51,210,081 (3)%
Evergreen - VA International Growth Fund:
Tax qualified ................................. 131,964 12.346051 1,629,234 (3)%
Non-tax qualified ............................. 303,483 12.346051 3,746,817 (3)%
Initial Funding by Depositor (note 1a) ........ 100,000 12.675600 1,267,560 (3)%
Evergreen - VA Masters Fund:
Tax qualified ................................. 614,028 13.162823 8,082,342 5%
Non-tax qualified ............................. 1,282,537 13.162823 16,881,808 5%
Initial Funding by Depositor (note 1a) ........ 400,000 13.426880 5,370,752 5%
Evergreen - VA Omega Growth Fund:
Tax qualified ................................. 885,612 21.995622 19,479,587 15%
Non-tax qualified ............................. 2,102,743 21.995622 46,251,140 15%
Initial Funding by Depositor (note 1a) ........ 100,000 23.051400 2,305,140 15%
Evergreen - VA Small Cap Value:
Tax qualified ................................. 156,291 11.236397 1,756,148 6%
Non-tax qualified ............................. 371,233 11.236397 4,171,321 6%
Initial Funding by Depositor (note 1a) ........ 100,000 11.584763 1,158,476 6%
Evergreen - VA Strategic Income Fund:
Tax qualified ................................. 623,366 10.545130 6,573,476 (3)%
Non-tax qualified ............................. 1,015,297 10.545130 10,706,439 (3)%
Fidelity VIP - High Income Portfolio:
Tax qualified ................................. 36,258 11.928247 432,494 (6)%
Non-tax qualified ............................. 118,186 11.928247 1,409,752 (6)%
</TABLE>
(Continued)
5
<PAGE> 6
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
---------- ------------- --------------
<S> <C> <C> <C> <C>
Fidelity VIP - Overseas Portfolio:
Tax qualified ................................. 32,748 17.662807 578,422 (6)%
Non-tax qualified ............................. 158,023 17.662807 2,791,130 (6)%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified ................................. 33,207 16.186296 537,498 (1)%
Non-tax qualified ............................. 91,435 16.186296 1,479,994 (1)%
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified ................................. 31,609 18.221280 575,956 (2)%
Non-tax qualified ............................. 182,538 18.221280 3,326,076 (2)%
Fidelity VIP-III - Growth Opportunities Portfolio:
Tax qualified ................................. 43,821 14.741177 645,973 (4)%
Non-tax qualified ............................. 169,178 14.741177 2,493,883 (4)%
Nationwide SAT - Government Bond Fund:
Tax qualified ................................. 7,610 11.917828 90,695 3%
Non-tax qualified ............................. 86,164 11.917828 1,026,888 3%
Nationwide SAT - Money Market Fund:
Tax qualified ................................. 217,448 11.713724 2,547,126 2%
Non-tax qualified ............................. 417,170 11.713724 4,886,614 2%
======= ========= ---------
$ 452,668,214
=============
</TABLE>
(b) The period return does not include contract charges satisfied by
surrendering units.
See accompanying notes to financial statements.
6
<PAGE> 7
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
STATEMENTS OF OPERATIONS
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Total EvEIx
------------------------------ -----------------
2000 1999 2000 1999
------------- ----------- ---------- -----
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 1,612,267 601,014 -- --
Mortality, expense and administration
charges (note 2) ............................. (2,735,791) (1,601,066) (64,727) --
------------- ----------- ---------- ----
Net investment activity ...................... (1,123,524) (1,000,052) (64,727) --
------------- ----------- ---------- ----
Proceeds from mutual fund shares sold ........... 15,525,192 7,522,559 8,167 --
Cost of mutual fund shares sold ................. (13,323,377) (6,571,249) (7,176) --
------------- ----------- ---------- ----
Realized gain (loss) on investments .......... 2,201,815 951,310 991 --
Change in unrealized gain (loss) on investments . (9,053,590) 17,495,150 102,619 --
------------- ----------- ---------- ----
Net gain (loss) on investments ............... (6,851,775) 18,446,460 103,610 --
------------- ----------- ---------- ----
Reinvested capital gains ........................ 6,580,558 965,810 23,184 --
------------- ----------- ---------- ----
Net increase (decrease) in contract owners'
equity resulting from operations ........ (1,394,741) 18,412,218 62,067 --
------------- ----------- ---------- ----
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 108,937,185 63,088,193 7,510,684 --
Transfers between funds ......................... -- -- 1,744,355 --
Redemptions ..................................... (14,382,018) (8,983,186) (170,481) --
Contingent deferred sales charges (note 2) ...... (436,960) (252,949) (4,686) --
Adjustments to maintain reserves ................ 9,962,613 3,999,358 5,004,289 --
------------- ----------- ---------- ----
Net equity transactions .................... 104,080,820 57,851,416 14,084,161 --
------------- ----------- ---------- ----
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 102,686,079 76,263,634 14,146,228 --
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 349,982,135 210,468,889 -- --
------------- ----------- ---------- ----
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 452,668,214 286,732,523 14,146,228 --
============= =========== ========== ====
EvFound EvFund
---------------------------- ---------------------------
2000 1999 2000 1999
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ -- -- -- 74,937
Mortality, expense and administration
charges (note 2) ............................. (847,588) (549,690) (369,542) (278,621)
----------- ---------- ---------- ----------
Net investment activity ...................... (847,588) (549,690) (369,542) (203,684)
----------- ---------- ---------- ----------
Proceeds from mutual fund shares sold ........... 967,670 56,511 2,067,247 882,049
Cost of mutual fund shares sold ................. (614,805) (36,569) (1,386,593) (591,635)
----------- ---------- ---------- ----------
Realized gain (loss) on investments .......... 352,865 19,942 680,654 290,414
Change in unrealized gain (loss) on investments . (2,085,772) 4,201,774 (3,021,790) 4,871,665
----------- ---------- ---------- ----------
Net gain (loss) on investments ............... (1,732,907) 4,221,716 (2,341,136) 5,162,079
----------- ---------- ---------- ----------
Reinvested capital gains ........................ 689,542 198,134 899,121 157,626
----------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (1,890,953) 3,870,160 (1,811,557) 5,116,021
----------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 26,683,905 24,758,183 6,934,844 6,910,085
Transfers between funds ......................... (2,249,829) 238,888 (2,531,240) (1,272,820)
Redemptions ..................................... (4,656,243) (2,826,569) (2,046,120) (1,255,170)
Contingent deferred sales charges (note 2) ...... (138,654) (78,403) (64,760) (34,571)
Adjustments to maintain reserves ................ 2,587 395 392 (943)
----------- ---------- ---------- ----------
Net equity transactions .................... 19,641,766 22,092,494 2,293,116 4,346,581
----------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 17,750,813 25,962,654 481,559 9,462,602
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 113,774,890 69,203,436 52,756,145 37,934,840
----------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $131,525,703 95,166,090 53,237,704 47,397,442
=========== ========== ========== ==========
</TABLE>
(Continued)
7
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
EvGloLead EvGrInc
---------------------------- ----------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 2,531 -- -- 4,505
Mortality, expense and administration
charges (note 2) ............................. (161,548) (69,962) (506,599) (404,029)
------------ ------------ ------------ ------------
Net investment activity ...................... (161,548) (67,431) (506,599) (404,029)
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ........... 330,880 218,247 2,105,252 1,390,664
Cost of mutual fund shares sold ................. (243,130) (194,339) (1,328,692) (894,381)
------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... 87,750 23,908 776,560 496,283
Change in unrealized gain (loss) on investments . (1,165,951) 973,972 (3,712,409) 5,299,628
------------ ------------ ------------ ------------
Net gain (loss) on investments ............... (1,078,201) 997,880 (2,935,849) 5,795,911
------------ ------------ ------------ ------------
Reinvested capital gains ........................ -- -- 1,471,139 303,858
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (1,239,749) 930,449 (1,971,309) 5,695,740
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 8,621,235 3,740,552 8,418,533 9,287,720
Transfers between funds ......................... 111,505 208,174 (2,864,924) (2,350,889)
Redemptions ..................................... (653,289) (344,493) (2,643,016) (2,055,708)
Contingent deferred sales charges (note 2) ...... (18,765) (11,603) (71,377) (67,033)
Adjustments to maintain reserves ................ 439 95 792 (502)
------------ ------------ ------------ ------------
Net equity transactions .................... 8,061,125 3,592,725 2,840,008 4,813,588
------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 6,821,376 4,523,174 868,699 10,509,328
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 20,091,928 9,582,173 73,773,849 55,667,892
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 26,913,304 14,105,347 74,642,548 66,177,220
============ ============ ============ ============
EvIntGr EvMasters
---------------------------- ----------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ -- -- --
Mortality, expense and administration
charges (note 2) ............................. (26,852) (5,746) (129,631) (23,598)
------------ ------------ ------------ ------------
Net investment activity ...................... (22,347) (5,746) (129,631) (23,598)
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ........... 2,448 131,467 -- 83,903
Cost of mutual fund shares sold ................. (1,662) (122,072) -- (85,281)
------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... 786 9,395 -- (1,378)
Change in unrealized gain (loss) on investments . (206,412) 63,974 759,660 969,114
------------ ------------ ------------ ------------
Net gain (loss) on investments ............... (205,626) 73,369 759,660 967,736
------------ ------------ ------------ ------------
Reinvested capital gains ........................ 131,046 -- 714,645 --
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (96,927) 67,623 1,344,674 944,138
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 2,538,763 801,275 9,509,084 6,022,702
Transfers between funds ......................... 594,268 (72,124) 946,800 1,139,944
Redemptions ..................................... (50,805) (13,296) (359,165) (25,075)
Contingent deferred sales charges (note 2) ...... (1,455) (502) (9,642) (895)
Adjustments to maintain reserves ................ 40 6 373 4,000,037
------------ ------------ ------------ ------------
Net equity transactions .................... 3,080,811 715,359 10,087,450 11,136,713
------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 2,983,884 782,982 11,432,124 12,080,851
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 3,659,716 1,424,162 18,902,778 --
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 6,643,600 2,207,144 30,334,902 12,080,851
============ ============ ============ ============
</TABLE>
8
<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
EvOmega EvSmCapV
---------------------------- ----------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ -- -- -- --
Mortality, expense and administration
charges (note 2) ............................. (310,167) (27,373) (33,111) (13,838)
------------ ------------ ------------ ------------
Net investment activity ...................... (310,167) (27,373) (33,111) (13,838)
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ........... 181,047 189,882 112,196 172,175
Cost of mutual fund shares sold ................. (91,054) (143,576) (109,110) (172,666)
------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... 89,993 46,306 3,086 (491)
Change in unrealized gain (loss) on investments . 3,508,913 658,664 406,292 372,539
------------ ------------ ------------ ------------
Net gain (loss) on investments ............... 3,598,906 704,970 409,378 372,048
------------ ------------ ------------ ------------
Reinvested capital gains ........................ 1,495,830 -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 4,784,569 677,597 376,267 358,210
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 32,952,426 2,121,586 1,923,502 1,130,307
Transfers between funds ......................... 6,690,755 946,881 (37,790) 88,097
Redemptions ..................................... (823,941) (62,540) (123,260) (63,506)
Contingent deferred sales charges (note 2) ...... (22,037) (2,411) (5,162) (2,900)
Adjustments to maintain reserves ................ 1,045 20 4,952,382 15
------------ ------------ ------------ ------------
Net equity transactions .................... 38,798,248 3,003,536 6,709,672 1,152,013
------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 43,582,817 3,681,133 7,085,939 1,510,223
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 24,453,052 4,038,610 -- 2,281,690
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 68,035,869 7,719,743 7,085,939 3,791,913
============ ============ ============ ============
EvStratInc FidVIPHI
---------------------------- ----------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 1,056,328 -- 130,479 192,964
Mortality, expense and administration
charges (note 2) ............................. (122,565) (84,422) (13,385) (15,335)
------------ ------------ ------------ ------------
Net investment activity ...................... 933,763 (84,422) 117,094 177,629
------------ ------------ ------------ ------------
Proceeds from mutual fund shares sold ........... 1,746,549 684,434 107,875 147,462
Cost of mutual fund shares sold ................. (1,821,114) (683,347) (119,920) (160,340)
------------ ------------ ------------ ------------
Realized gain (loss) on investments .......... (74,565) 1,087 (12,045) (12,878)
Change in unrealized gain (loss) on investments . (1,424,048) (121,243) (213,988) (19,411)
------------ ------------ ------------ ------------
Net gain (loss) on investments ............... (1,498,613) (120,156) (226,033) (32,289)
------------ ------------ ------------ ------------
Reinvested capital gains ........................ -- -- -- 7,214
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (564,850) (204,578) (108,939) 152,554
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 2,012,891 5,564,669 13,037 107,827
Transfers between funds ......................... (1,287,803) (85,757) (17,375) (52,049)
Redemptions ..................................... (875,622) (666,833) (61,032) (72,629)
Contingent deferred sales charges (note 2) ...... (31,280) (26,280) (895) (1,856)
Adjustments to maintain reserves ................ 297 3 8 (14)
------------ ------------ ------------ ------------
Net equity transactions .................... (181,517) 4,785,802 (66,257) (18,721)
------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. (746,367) 4,581,224 (175,196) 133,833
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 18,026,279 11,182,622 2,017,440 2,088,861
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. 17,279,912 15,763,846 1,842,244 2,222,694
============ ============ ============ ============
</TABLE>
(Continued)
9
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FidVIPOv FidVIPAM
-------------------------- --------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 49,734 44,638 72,560 71,275
Mortality, expense and administration
charges (note 2) ............................. (24,413) (20,061) (15,089) (15,261)
----------- ----------- ----------- -----------
Net investment activity ...................... 25,321 24,577 57,471 56,014
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ........... 268,191 291,700 576,646 101,985
Cost of mutual fund shares sold ................. (196,316) (258,675) (539,663) (90,603)
----------- ----------- ----------- -----------
Realized gain (loss) on investments .......... 71,875 33,025 36,983 11,382
Change in unrealized gain (loss) on investments . (621,061) 75,193 (286,360) (61,413)
----------- ----------- ----------- -----------
Net gain (loss) on investments ............... (549,186) 108,218 (249,377) (50,031)
----------- ----------- ----------- -----------
Reinvested capital gains ........................ 313,190 71,996 170,947 90,281
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (210,675) 204,791 (20,959) 96,264
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 39,262 28,714 8,581 17,281
Transfers between funds ......................... 27,086 (223,105) (183,836) 55,962
Redemptions ..................................... (161,109) (46,891) (91,684) (89,015)
Contingent deferred sales charges (note 2) ...... (4,816) (937) (2,681) (2,636)
Adjustments to maintain reserves ................ (140) 27 25 12
----------- ----------- ----------- -----------
Net equity transactions .................... (99,717) (242,192) (269,595) (18,396)
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. (310,392) (37,401) (290,554) 77,868
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 3,679,935 2,911,568 2,308,041 2,157,120
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 3,369,543 2,874,167 2,017,487 2,234,988
=========== =========== =========== ===========
Fid VIPCon FidVIPGrOp
-------------------------- --------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 12,644 10,312 41,986 32,669
Mortality, expense and administration
charges (note 2) ............................. (26,867) (17,259) (22,467) (24,378)
----------- ----------- ----------- -----------
Net investment activity ...................... (14,223) (6,947) 19,519 8,291
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ........... 410,884 38,099 497,146 65,596
Cost of mutual fund shares sold ................. (315,231) (26,663) (394,118) (43,068)
----------- ----------- ----------- -----------
Realized gain (loss) on investments .......... 95,653 11,436 103,028 22,528
Change in unrealized gain (loss) on investments . (619,821) 155,448 (497,270) 118,697
----------- ----------- ----------- -----------
Net gain (loss) on investments ............... (524,168) 166,884 (394,242) 141,225
----------- ----------- ----------- -----------
Reinvested capital gains ........................ 458,984 75,624 212,930 61,077
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (79,407) 235,561 (161,793) 210,593
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 13,717 30,316 21,797 42,389
Transfers between funds ......................... 545,922 555,724 (291,421) 474,171
Redemptions ..................................... (168,473) (32,197) (92,316) (45,888)
Contingent deferred sales charges (note 2) ...... (4,827) (677) (3,762) (1,430)
Adjustments to maintain reserves ................ 71 20 50 35
----------- ----------- ----------- -----------
Net equity transactions .................... 386,410 553,186 (365,652) 469,277
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 307,003 788,747 (527,445) 679,870
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 3,595,045 2,100,842 3,667,300 3,200,948
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. 3,902,048 2,889,589 3,139,855 3,880,818
=========== =========== =========== ===========
</TABLE>
10
<PAGE> 11
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NSATGvtBd NSATMyMkt
2000 1999 2000 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 35,729 34,398 208,302 137,290
Mortality, expense and administration
charges (note 2) ............................. (8,574) (9,123) (52,666) (42,370)
----------- ----------- ----------- -----------
Net investment activity ...................... 27,155 25,275 155,636 94,920
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ........... 193,956 95,082 5,949,038 2,973,303
Cost of mutual fund shares sold ................. (205,755) (94,731) (5,949,038) (2,973,303)
----------- ----------- ----------- -----------
Realized gain (loss) on investments .......... (11,799) 351 -- --
Change in unrealized gain (loss) on investments . 23,808 (63,451) -- --
----------- ----------- ----------- -----------
Net gain (loss) on investments ............... 12,009 (63,100) -- --
----------- ----------- ----------- -----------
Reinvested capital gains ........................ -- -- -- --
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 39,164 (37,825) 155,636 94,920
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 3,072 18,134 1,731,852 2,506,455
Transfers between funds ......................... (98,643) (4,049) (1,097,830) 352,951
Redemptions ..................................... (85,816) (72,742) (1,319,646) (1,310,633)
Contingent deferred sales charges (note 2) ...... (3,686) (1,866) (48,475) (18,949)
Adjustments to maintain reserves ................ 22 1 (59) 149
----------- ----------- ----------- -----------
Net equity transactions .................... (185,051) (60,522) (734,158) 1,529,973
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. (145,887) (98,347) (578,522) 1,624,893
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 1,263,476 1,372,008 8,012,261 5,322,117
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 1,117,589 1,273,661 7,433,739 6,947,010
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 12
NATIONWIDE VARIABLE ACCOUNT-6
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 AND 1999
(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 March 3, 1997, the Company (Depositor) transferred to the Account,
100,000 shares of the Evergreen - VA Omega Growth Fund (formerly
Evergreen - VA Aggressive 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 March 3, 1997 was $1,000,000.
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.
On February 1, 1999, the Company (Depositor) transferred to the
Account, 400,000 shares of the Evergreen - VA Masters Fund, for which
the Account was credited with 400,000 units of the foregoing Evergreen
Fund. The value of the units purchased by the Company on February 1,
1999 was $4,000,000.
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 Equity Index Fund (EvEIx) (this fund became
available on 10/01/99)
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) (this fund became
available on 2/01/99)
Evergreen - VA Omega Fund (EvOmega) (formerly Evergreen
- VA Aggressive Growth Fund)
Evergreen - VA Small Cap Value Fund (EvSmCapV)
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> 13
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, 2000, 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, 2000. 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.
(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.
(Continued)
13
<PAGE> 14
NATIONWIDE VARIABLE ACCOUNT-6
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(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.
14
<PAGE> 15
[THIS PAGE LEFT BLANK INTENTIONALLY]
15
<PAGE> 16
NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
P A I D
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
