<PAGE> 1
[NATIONWIDE LOGO]
NATIONWIDE(R)
VARIABLE
ACCOUNT-6
ANNUAL REPORT
TO
CONTRACT OWNERS
DECEMBER 31, 1999
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-3232-G (12/99)
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PRESIDENT'S PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you
the 1999 annual report of the Nationwide Variable Account-6.
During 1999 equity investments extended their spirited advance
to a fifth consecutive year. The S&P 500 was the laggard of the
major indices with a year-over-year change of a respectable
19.53%. The NASDAQ topped the list at over 85% with the other
indices falling into line nearer the lower end of the range.
Fixed earnings investments did not fare as well in the current
environment of rising interest rates.
The U.S. economy remains strong, inflation remains docile and
the available labor pool is incessantly tight. Against this
good-news-bad-news backdrop, the Federal Reserve is increasingly
concerned that recent productivity gains will subside and ignite
wage inflation. To date, the Fed has hiked short-term interest
rates a quarter percentage point on four occasions since last
June. Prospectively, they may well become more aggressive in
their preemptive efforts to dampen economic growth and avoid a
new round of inflation.
We believe some caution may be warranted at this juncture.
Certain market sectors are well extended and may inevitably
retreat to less lofty valuation levels. However, we remain
bullish for the long-term prospects of financial assets. Your
variable insurance contract provides an excellent resource to
help you achieve your long-term retirement savings and financial
planning objectives.
We appreciate your trust in our company and in our investment
products, and we welcome and encourage your feedback.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
February 10, 2000
3
<PAGE> 3
- --------------------------------------------------------------------------------
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1999
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at market value:
Evergreen - VA Equity Index Fund (EvEIx)
435,045 shares (cost $4,704,110) ............................................................ $ 4,994,314
Evergreen - VA Foundation Fund (EvFound)
7,246,783 shares (cost $99,883,662) ......................................................... 113,774,499
Evergreen - VA Fund (EvFund)
3,047,740 shares (cost $46,678,475) ......................................................... 52,756,379
Evergreen - VA Global Leaders Fund (EvGloLead)
1,267,627 shares (cost $16,176,541) ......................................................... 20,091,883
Evergreen - VA Growth and Income Fund (EvGrInc)
4,230,169 shares (cost $63,819,992) ......................................................... 73,774,146
Evergreen - VA International Growth Fund (EvIntGr)
287,710 shares (cost $2,834,759) ............................................................ 3,659,672
Evergreen - VA Masters Fund (EvMasters)
1,503,793 shares (cost $15,343,546) ......................................................... 18,902,682
Evergreen - VA Omega Fund (EvOmega)
1,223,887 shares (cost $18,798,344) ......................................................... 24,453,255
Evergreen - VA Small Cap Equity Income Fund (EvSmCapEI)
488,293 shares (cost $4,766,153) ............................................................ 4,951,295
Evergreen - VA Strategic Income Fund (EvStratInc)
1,707,035 shares (cost $17,872,299) ......................................................... 18,026,286
Fidelity VIP - High Income Portfolio (FidVIPHI)
178,377 shares (cost $2,185,324) ............................................................ 2,017,449
Fidelity VIP - Overseas Portfolio (FidVIPOv)
134,100 shares (cost $2,523,919) ............................................................ 3,679,713
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
123,623 shares (cost $2,013,516) ............................................................ 2,308,049
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
123,329 shares (cost $2,763,322) ............................................................ 3,595,029
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
158,415 shares (cost $3,080,077) ............................................................ 3,667,312
Nationwide SAT - Government Bond Fund (NSATGvtBd)
117,098 shares (cost $1,356,303) ............................................................ 1,263,484
Nationwide SAT - Money Market Fund (NSATMyMkt)
8,012,224 shares (cost $8,012,224) .......................................................... 8,012,224
---------------
Total investments ........................................................................ 359,927,671
Accounts receivable ............................................................................ 14,064
---------------
Total assets ............................................................................. 359,941,735
ACCOUNTS PAYABLE ..................................................................................... 5,656
---------------
CONTRACT OWNERS' EQUITY .............................................................................. $ 359,936,079
===============
</TABLE>
4
<PAGE> 4
<TABLE>
<CAPTION>
ANNUAL
Contract owners' equity represented by: UNITS UNIT VALUE RETURN(b)
-------- ---------- ---------
<S> <C> <C> <C> <C>
Contracts in accumulation phase:
Evergreen - VA Equity Index Fund:
Tax qualified . . . . . . . . . . . . . . . . . . 132,858 $ 11.381773 $ 1,512,160 14%(a)
Non-tax qualified . . . . . . . . . . . . . . .. 306,687 11.381773 3,490,642 14%(a)
Evergreen - VA Foundation Fund:
Tax qualified . . . . . . . . . . . . . . . . . . 2,178,349 17.085223 37,217,578 9%
Non-tax qualified . . . . . . . . . . . . . . .. 4,480,908 17.085223 76,557,312 9%
Evergreen - VA Fund:
Tax qualified . . . . . . . . . . . . . . . . . . 840,158 19.546002 16,421,730 21%
Non-tax qualified . . . . . . . . . . . . . . .. 1,858,918 19.546002 36,334,415 21%
Evergreen - VA Global Leaders Fund:
Tax qualified . . . . . . . . . . . . . . . . . . 409,028 15.505471 6,342,172 23%
Non-tax qualified . . . . . . . . . . . . . . .. 886,768 15.505471 13,749,756 23%
Evergreen - VA Growth and Income Fund:
Tax qualified . . . . . . . . . . . . . . . . . . 1,173,630 18.858129 22,132,466 17%
Non-tax qualified . . . . . . . . . . . . . . .. 2,738,415 18.858129 51,641,383 17%
Evergreen - VA International Growth Fund:
Tax qualified . . . . . . . . . . . . . . . . . . 58,435 12.730754 743,922 36%
Non-tax qualified . . . . . . . . . . . . . . .. 127,084 12.730754 1,617,875 36%
Initial Funding by Depositor (note 1a) . . . .... 100,000 12.979191 1,297,919 38%
Evergreen - VA Masters Fund:
Tax qualified . . . . . . . . . . . . . . . . . . 368,926 12.595397 4,646,769 26%(a)
Non-tax qualified . . . . . . . . . . . . . . .. 726,670 12.595397 9,152,697 26%(a)
Initial Funding by Depositor (note 1a) . . . .... 400,000 12.758280 5,103,312 28%(a)
Evergreen - VA Omega Growth Fund:
Tax qualified . . . . . . . . . . . . . . . . . . 379,798 19.198916 7,291,710 45%
Non-tax qualified . . . . . . . . . . . . . . .. 789,802 19.198916 15,163,342 45%
Initial Funding by Depositor (note 1a) . . . .... 100,000 19.980000 1,998,000 47%
Evergreen - VA Small Cap Equity Income:
Tax qualified . . . . . . . . . . . . . . . . . . 114,972 10.633805 1,222,590 11%
Non-tax qualified . . . . . . . . . . . . . . .. 248,252 10.633805 2,639,863 11%
Initial Funding by Depositor (note 1a) . . . .... 100,000 10.886886 1,088,689 12%
Evergreen - VA Strategic Income Fund:
Tax qualified . . . . . . . . . . . . . . . . . . 592,386 10.889649 6,450,876 0%
Non-tax qualified . . . . . . . . . . . . . . .. 1,062,973 10.889649 11,575,403 0%
Fidelity VIP - High Income Portfolio:
Tax qualified . . . . . . . . . . . . . . . . . . 36,478 12.623913 460,495 7%
Non-tax qualified . . . . . . . . . . . . . . .. 123,333 12.623913 1,556,945 7%
</TABLE>
(Continued)
5
<PAGE> 5
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENT OF ASSETS,LIABILITIES AND CONTRACT OWNERS' EQUITY, Continued
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ---------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP - Overseas Portfolio:
Tax qualified . . . . . . . . . . . . . . . . . . . . . . . 32,318 18.736556 605,528 41%
Non-tax qualified . . . . . . . . . . . . . . . . . . .... 164,086 18.736556 3,074,407 41%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified . . . . . . . . . . . . . . . . . . . . . . . 32,327 16.412859 530,578 10%
Non-tax qualified . . . . . . . . . . . . . . . . . . .... 108,297 16.412859 1,777,463 10%
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified . . . . . . . . . . . . . . . . . . . . . . . 23,459 18.593650 436,188 23%
Non-tax qualified . . . . . . . . . . . . . . . . . . .... 169,889 18.593650 3,158,857 23%
Fidelity VIP-III - Growth Opportunities Portfolio:
Tax qualified . . . . . . . . . . . . . . . . . . . . . . . 43,970 15.407270 677,458 3%
Non-tax qualified . . . . . . . . . . . . . . . . . . .... 194,054 15.407270 2,989,842 3%
Nationwide SAT - Government Bond Fund:
Tax qualified . . . . . . . . . . . . . . . . . . . . . . . 7,558 11.536586 87,194 (4)%
Non-tax qualified . . . . . . . . . . . . . . . . . . .... 101,961 11.536586 1,176,282 (4)%
Nationwide SAT - Money Market Fund:
Tax qualified . . . . . . . . . . . . . . . . . . . . . . . 247,552 11.472786 2,840,111 3%
Non-tax qualified . . . . . . . . . . . . . . . . . . .... 450,819 11.472786 5,172,150 3%
========= =========== -------------
$ 359,936,079
=============
</TABLE>
(a) Non-annualized. The return was computed for the period 10/01/99 and 2/01/99
(effective dates) through 12/31/99 for Evergreen - VA Equity Index Fund and
Evergreen - VA Masters Fund, respectively.
(b) The annual 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 CHANGES IN
CONTRACT OWNERS' EQUITY
- ---------------------------------
STATEMENTS OF OPERATIONS
- ---------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
Total EvEIX
-------------------------------------------------------------
1999 1998 1999 1998
-------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 3,507,963 2,674,845 12,815 -
Mortality, expense and administration
charges (note 2)............................... (3,718,837) (2,047,220) (16,525) -
-------------- -------------- -------------- --------------
Net investment activity........................ (210,874) 627,625 (3,710) -
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............ 25,344,482 18,362,960 12,392 -
Cost of mutual fund shares sold.................. (19,811,330) (15,304,263) (11,578) -
-------------- -------------- -------------- --------------
Realized gain (loss) on investments............ 5,533,152 3,058,697 814 -
Change in unrealized gain (loss) on investments 30,906,462 1,749,886 290,204 -
-------------- -------------- -------------- --------------
Net gain (loss) on investments................. 36,439,614 4,808,583 291,018 -
-------------- -------------- -------------- --------------
Reinvested capital gains......................... 8,527,021 3,792,356 8,821 -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 44,755,761 9,228,564 296,129 -
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 134,498,291 120,644,969 2,716,711 -
Transfers between funds.......................... - - 2,015,594 -
Redemptions...................................... (29,204,207) (9,976,873) (35,186) -
Contingent deferred sales charges (note 2) (621,637) (221,448) (844) -
Adjustments to maintain reserves................. 38,982 (2,045) 10,398 -
-------------- -------------- -------------- --------------
Net equity transactions...................... 104,711,429 110,444,603 4,706,673 -
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 149,467,190 119,673,167 5,002,802 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 210,468,889 90,795,722 - -
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 359,936,079 210,468,889 5,002,802 -
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
EvFound EvFund
----------------------------------------------------------------
1999 1998 1999 1998
------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 1,986,621 1,205,584 327,041 -
Mortality, expense and administration
charges (note 2)............................... (1,266,346) (683,822) (618,988) (374,658)
------------- -------------- -------------- --------------
Net investment activity........................ 720,275 521,762 (291,947) (374,658)
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............ 2,388,932 2,201,565 4,950,958 3,741,560
Cost of mutual fund shares sold.................. (1,597,023) (1,554,017) (3,136,181) (2,464,952)
------------- -------------- -------------- --------------
Realized gain (loss) on investments............ 791,909 647,548 1,814,777 1,276,608
Change in unrealized gain (loss) on investments 7,234,104 1,967,032 3,674,261 (993,694)
------------- -------------- -------------- --------------
Net gain (loss) on investments................. 8,026,013 2,614,580 5,489,038 282,914
------------- -------------- -------------- --------------
Reinvested capital gains......................... 198,134 1,011,705 3,898,701 1,170,913
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 8,944,422 4,148,047 9,095,792 1,079,169
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 46,265,474 40,873,811 14,204,940 21,624,968
Transfers between funds.......................... (1,581,847) (345,390) (3,198,407) (264,570)
Redemptions...................................... (8,857,380) (3,807,693) (5,182,813) (1,784,878)
Contingent deferred sales charges (note 2) (199,602) (78,359) (97,994) (36,780)
Adjustments to maintain reserves................. 387 3 (213) (385)
------------- -------------- -------------- --------------
Net equity transactions...................... 35,627,032 36,642,372 5,725,513 19,538,355
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 44,571,454 40,790,419 14,821,305 20,617,524
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 69,203,436 28,413,017 37,934,840 17,317,316
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 113,774,890 69,203,436 52,756,145 37,934,840
============= ============== ============== ==============
(Continued)
</TABLE>
7
<PAGE> 7
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- --------------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- --------------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
EvGloLead EvGrInc
------------------------------ ------------------------------
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 81,336 53,046 276,598 445,613
Mortality, expense and administration
charges (note 2)............................... (179,280) (70,467) (872,787) (589,626)
-------------- -------------- -------------- --------------
Net investment activity........................ (97,944) (17,421) (596,189) (144,013)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............ 2,051,911 333,363 4,878,973 2,532,809
Cost of mutual fund shares sold.................. (1,404,129) (320,068) (3,098,368) (1,711,193)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments............ 647,782 13,295 1,780,605 821,616
Change in unrealized gain (loss) on investments 2,929,610 937,511 5,709,832 (1,097,281)
-------------- -------------- -------------- --------------
Net gain (loss) on investments................. 3,577,392 950,806 7,490,437 (275,665)
-------------- -------------- -------------- --------------
Reinvested capital gains......................... - - 3,657,343 1,025,093
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 3,479,448 933,385 10,551,591 605,415
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 8,792,541 5,846,998 18,028,055 31,886,459
Transfers between funds.......................... 851,675 106,880 (3,768,754) (880,523)
Redemptions...................................... (2,583,521) (202,140) (6,559,622) (2,663,166)
Contingent deferred sales charges (note 2) (30,441) (1,289) (145,015) (59,682)
Adjustments to maintain reserves................. 53 (281) (298) 243
-------------- -------------- -------------- --------------
Net equity transactions...................... 7,030,307 5,750,168 7,554,366 28,283,331
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 10,509,755 6,683,553 18,105,957 28,888,746
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 9,582,173 2,898,620 55,667,892 26,779,146
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 20,091,928 9,582,173 73,773,849 55,667,892
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
EvIntGr EvMasters
------------------------------- -------------------------------
1999 1998 1999 1998
-------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 39,598 - 17,853 -
Mortality, expense and administration
charges (note 2)............................... (17,896) (1,172) (95,998) -
------------- -------------- -------------- --------------
Net investment activity........................ 21,702 (1,172) (78,145) -
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............ 235,602 25,398 307,914 -
Cost of mutual fund shares sold.................. (193,938) (28,372) (286,904) -
------------- -------------- -------------- --------------
Realized gain (loss) on investments............ 41,664 (2,974) 21,010 -
Change in unrealized gain (loss) on investments 855,427 (30,514) 3,559,136 -
------------- -------------- -------------- --------------
Net gain (loss) on investments................. 897,091 (33,488) 3,580,146 -
------------- -------------- -------------- --------------
Reinvested capital gains......................... 28,914 - 227,368 -
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 947,707 (34,660) 3,729,369 -
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 1,347,355 1,349,323 14,110,206 -
Transfers between funds.......................... (32,232) 109,498 1,297,990 -
Redemptions...................................... (26,285) - (228,112) -
Contingent deferred sales charges (note 2) (1,035) - (6,772) -
Adjustments to maintain reserves................. 44 1 97 -
------------- -------------- -------------- --------------
Net equity transactions...................... 1,287,847 1,458,822 15,173,409 -
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 2,235,554 1,424,162 18,902,778 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 1,424,162 - - -
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 3,659,716 1,424,162 18,902,778 -
============= ============== ============== ==============
</TABLE>
8
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ----------------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ----------------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
EvOmega EvSmCapEI
------------------------------ ------------------------------
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. $ - - 35,080 26,284
Mortality, expense and administration
charges (note 2)................................ (108,620) (23,680) (36,562) (6,043)
-------------- -------------- -------------- --------------
Net investment activity......................... (108,620) (23,680) (1,482) 20,241
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............. 415,768 661,548 273,569 61,160
Cost of mutual fund shares sold................... (286,660) (637,865) (270,309) (66,317)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments............. 129,108 23,683 3,260 (5,157)
Change in unrealized gain (loss) on investments 4,895,321 663,791 184,094 1,048
-------------- -------------- -------------- --------------
Net gain (loss) on investments.................. 5,024,429 687,474 187,354 (4,109)
-------------- -------------- -------------- --------------
Reinvested capital gains.......................... - - 199,108 2,958
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. 4,915,809 663,794 384,980 19,090
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.................................. 12,221,252 1,604,948 2,265,039 2,256,250
Transfers between funds............................ 3,830,432 (22,143) 150,571 9,853
Redemptions........................................ (527,899) (76,952) (156,174) (3,501)
Contingent deferred sales charges (note 2) (21,649) (169) (6,643) -
Adjustments to maintain reserves................... (3,503) (30) 31,679 (2)
-------------- -------------- -------------- --------------
Net equity transactions........................ 15,498,633 1,505,654 2,284,472 2,262,600
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY................ 20,414,442 2,169,448 2,669,452 2,281,690
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 4,038,610 1,869,162 2,281,690 -
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD................ $ 24,453,052 4,038,610 4,951,142 2,281,690
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
EvStratInc FidVIPHI
------------------------------ ------------------------------
1999 1998 1999 1998
------------ -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. - 421,087 192,964 166,235
Mortality, expense and administration
charges (note 2)................................. (203,618) (81,408) (30,227) (31,839)
------------- -------------- -------------- --------------
Net investment activity.......................... (203,618) 339,679 162,737 134,396
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.............. 2,710,390 1,064,321 369,935 637,651
Cost of mutual fund shares sold.................... (2,653,412) (1,035,887) (407,073) (608,365)
------------- -------------- -------------- --------------
Realized gain (loss) on investments.............. 56,978 28,434 (37,138) 29,286
Change in unrealized gain (loss) on investments 275,154 (130,808) 3,757 (397,432)
------------- -------------- -------------- --------------
Net gain (loss) on investments................... 332,132 (102,374) (33,381) (368,146)
------------- -------------- -------------- --------------
Reinvested capital gains........................... - - 7,214 105,628
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. 128,514 237,305 136,570 (128,122)
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.................................. 9,944,768 8,368,709 122,043 560,932
Transfers between funds............................ (778,833) 625,598 (182,540) (309,711)
Redemptions........................................ (2,404,082) (250,007) (143,934) (93,106)
Contingent deferred sales charges (note 2) (46,706) (3,783) (3,570) (1,478)
Adjustments to maintain reserves................... (4) (75) 10 (365)
------------- -------------- -------------- --------------
Net equity transactions........................ 6,715,143 8,740,442 (207,991) 156,272
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY................ 6,843,657 8,977,747 (71,421) 28,150
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 11,182,622 2,204,875 2,088,861 2,060,711
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD................ 18,026,279 11,182,622 2,017,440 2,088,861
============= ============== ============== ==============
(Continued)
</TABLE>
9
<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ------------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ------------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
FidVIPOv FidVIPAM
----------------------------- -----------------------------
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. $ 44,638 51,626 71,275 60,892
Mortality, expense and administration
charges (note 2)................................. (42,013) (40,291) (30,804) (28,570)
-------------- -------------- -------------- --------------
Net investment activity.......................... 2,625 11,335 40,471 32,322
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.............. 407,605 298,379 264,224 180,711
Cost of mutual fund shares sold.................... (350,564) (271,550) (231,235) (165,427)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.............. 57,041 26,829 32,989 15,284
Change in unrealized gain (loss) on investments 948,170 100,727 39,345 24,653
-------------- -------------- -------------- --------------
Net gain (loss) on investments................... 1,005,211 127,556 72,334 39,937
-------------- -------------- -------------- --------------
Reinvested capital gains........................... 71,996 152,162 90,281 182,677
Net increase (decrease) in contract owners' -------------- -------------- -------------- --------------
equity resulting from operations............. 1,079,832 291,053 203,086 254,936
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.................................. 33,812 146,809 20,375 157,578
Transfers between funds............................ (238,092) (96,968) 119,203 (49,668)
Redemptions........................................ (104,841) (88,116) (187,208) (91,144)
Contingent deferred sales charges (note 2) (2,597) (1,809) (4,545) (1,133)
Adjustments to maintain reserves................... 253 (595) 10 (287)
-------------- -------------- -------------- --------------
Net equity transactions........................ (311,465) (40,679) (52,165) 15,346
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY................ 768,367 250,374 150,921 270,282
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 2,911,568 2,661,194 2,157,120 1,886,838
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD................ $ 3,679,935 2,911,568 2,308,041 2,157,120
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
Fid VIPCon FidVIPGrOp
------------------------------- -------------------------------
1999 1998 1999 1998
-------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. $ 10,312 9,259 32,669 19,139
Mortality, expense and administration
charges (note 2)................................. (37,912) (23,433) (50,881) (33,857)
------------- -------------- -------------- --------------
Net investment activity.......................... (27,600) (14,174) (18,212) (14,718)
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.............. 299,195 486,379 309,430 264,446
Cost of mutual fund shares sold.................... (211,177) (386,936) (203,224) (195,987)
------------- -------------- -------------- --------------
Realized gain (loss) on investments.............. 88,018 99,443 106,206 68,459
Change in unrealized gain (loss) on investments 455,787 269,080 (47,401) 433,931
------------- -------------- -------------- --------------
Net gain (loss) on investments................... 543,805 368,523 58,805 502,390
------------- -------------- -------------- --------------
Reinvested capital gains........................... 75,624 68,120 61,077 66,530
Net increase (decrease) in contract owners' ------------- -------------- -------------- --------------
equity resulting from operations............. 591,829 422,469 101,670 554,202
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.................................. 48,616 337,230 61,100 861,311
Transfers between funds............................ 942,089 179,052 430,707 389,976
Redemptions........................................ (85,928) (30,229) (123,116) (109,496)
Contingent deferred sales charges (note 2) (2,429) (490) (4,014) (4,526)
Adjustments to maintain reserves................... 26 (214) 5 (349)
------------- -------------- -------------- --------------
Net equity transactions........................ 902,374 485,349 364,682 1,136,916
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY................ 1,494,203 907,818 466,352 1,691,118
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 2,100,842 1,193,024 3,200,948 1,509,830
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD................ $ 3,595,045 2,100,842 3,667,300 3,200,948
============= ============== ============== ==============
</TABLE>
10
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT-6
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- --------------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- --------------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
NSATGvtBd NSATMyMkt
------------------------------ ------------------------------
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 68,770 43,647 310,393 172,433
Mortality, expense and administration
charges (note 2)............................... (18,162) (10,720) (92,218) (47,634)
-------------- -------------- -------------- --------------
Net investment activity........................ 50,608 32,927 218,175 124,799
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............ 148,028 315,041 5,319,656 5,558,629
Cost of mutual fund shares sold.................. (149,899) (298,698) (5,319,656) (5,558,629)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments............ (1,871) 16,343 - -
Change in unrealized gain (loss) on investments (100,339) 1,842 - -
-------------- -------------- -------------- --------------
Net gain (loss) on investments................. (102,210) 18,185 - -
-------------- -------------- -------------- --------------
Reinvested capital gains......................... 2,440 6,570 - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... (49,162) 57,682 218,175 124,799
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 24,021 67,906 4,291,983 4,701,737
Transfers between funds.......................... 37,137 995,059 105,307 (446,943)
Redemptions...................................... (118,278) (37,892) (1,879,828) (738,553)
Contingent deferred sales charges (note 2) (2,242) (1,011) (45,539) (30,939)
Adjustments to maintain reserves................. (8) (50) 46 341
-------------- -------------- -------------- --------------
Net equity transactions...................... (59,370) 1,024,012 2,471,969 3,485,643
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. (108,532) 1,081,694 2,690,144 3,610,442
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 1,372,008 290,314 5,322,117 1,711,675
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 1,263,476 1,372,008 8,012,261 5,322,117
============== ============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 11
NATIONWIDE VARIABLE ACCOUNT-6
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
(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 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
(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 December 31, 1999, contract owners have invested in all of the above
funds. The contract owners' equity is affected by the investment
results of each fund, equity transactions by contract owners and
certain contract expenses (see note 2). The accompanying financial
statements include only contract owners' purchase payments pertaining
to the variable portions of their contracts and exclude any purchase
payments for fixed dollar benefits, the latter being included in the
accounts of the Company.
A contract owner may choose from among a number of different
underlying mutual fund options. The underlying mutual fund options are
not available to the general public directly. The underlying mutual
funds are available as investment options in variable life insurance
policies or variable annuity contracts issued by life insurance
companies or, in some cases, through participation in certain
qualified pension or retirement plans.
Some of the underlying mutual funds have been established by investment
advisers which manage publicly traded mutual funds having similar names
and investment objectives. While some of the underlying mutual funds
may be similar to, and may in fact be modeled after, publicly traded
mutual funds, the underlying mutual funds are not otherwise directly
related to any publicly traded mutual fund. Consequently, the
investment performance of publicly traded mutual funds and any
corresponding underlying mutual funds may differ substantially.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at December 31, 1999. The cost of investments
sold is determined on 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> 13
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> 14
- --------------------------------------------------------------------------------
Independent Auditors' Report
----------------------------
The Board of Directors of Nationwide Life Insurance Company and
Contract Owners of Nationwide Variable Account-6:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide Variable Account-6 (comprised of the
sub-accounts listed in note 1(b)) (collectively, "the Account") as of December
31, 1999, and the related statements of operations and changes in contract
owners' equity for each of the years in the two year period then ended. These
financial statements are the responsibility of the Account's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1999, by correspondence with
the transfer agents of the underlying mutual funds. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Account as of December
31, 1999, and the results of its operations and its changes in contract owners'
equity for each of the years in the two year period then ended in conformity
with generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
February 18, 2000
- --------------------------------------------------------------------------------
15
<PAGE> 15
---------------
NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
---------------
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
