-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Te2YiUSl/HSvCFq5rIHRaVdoNFkGxXpmtFLCjdBrTA3lu6ImYqEtq7kfCfNYOFpA JPktU80d+QGy2rETIMsQTg== /in/edgar/work/20000908/0000950152-00-006556/0000950152-00-006556.txt : 20000922 0000950152-00-006556.hdr.sgml : 20000922 ACCESSION NUMBER: 0000950152-00-006556 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000908 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONWIDE VL SEPARATE ACCOUNT C CENTRAL INDEX KEY: 0001044822 STANDARD INDUSTRIAL CLASSIFICATION: [ ] IRS NUMBER: 311000740 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08351 FILM NUMBER: 718878 BUSINESS ADDRESS: STREET 1: NATIONWIDE LIFE & ANNUTIY INSURANCE CO STREET 2: PO BOX 182008 CITY: COLUMBUS STATE: OH ZIP: 43218-2008 BUSINESS PHONE: 8008603946 MAIL ADDRESS: STREET 1: NATIONWIDE LIFE & ANNUITY INSURANCE CO STREET 2: PO BOX 182008 CITY: COLUMBUS STATE: OH ZIP: 43218-2008 N-30D 1 l83626an-30d.txt NATIONWIDE VL SEPARATE ACCOUNT-C N-30D 1 Nationwide(R) VL Separate Account-C June 30, 2000 [THE BEST OF AMERICA'S FUTURE LIFE SERIES(SM) LOGO] 2000 SEMI-ANNUAL REPORT [NATIONWIDE LOGO] Nationwide Life and Annuity Insurance Company HOME OFFICE: COLUMBUS, OHIO VLOB-0173-C(6/00) 2 [NATIONWIDE LOGO] NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220 [PHOTO OF PRESIDENT] PRESIDENT'S MESSAGE We at Nationwide Life and Annuity Insurance Company are pleased to bring you the 2000 semi-annual report of the Nationwide VL Separate Account-C. 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, President Joseph J. Gasper, President August 16, 2000 3 3 [THIS PAGE LEFT BLANK INTENTIONALLY] 4 4 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 VL Separate Account-C. 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 1-877-351-8808 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.bestofamerica.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 6 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 25. 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 9 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 21, provide further disclosures about the variable account and its underlying contract provisions. 5 5 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY JUNE 30, 2000 (UNAUDITED)
ASSETS: Investments at market value: American Century VP - American Century VP Income & Growth (ACVPIncGr) 976,512 shares (cost $7,526,685)..................................................................... $ 7,489,849 American Century VP - American Century VP International (ACVPInt) 525,188 shares (cost $5,864,582)..................................................................... 6,071,174 American Century VP - American Century VP Value (ACVPValue) 127,423 shares (cost $709,928)....................................................................... 690,634 The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGr) 12,202 shares (cost $477,928)........................................................................ 488,814 Dreyfus Stock Index Fund (DryStkIx) 1,029,296 shares (cost $37,504,140).................................................................. 39,133,820 Dreyfus VIF - Appreciation Portfolio (DryVApp) 59,818 shares (cost $2,331,326)...................................................................... 2,451,347 Dreyfus VIF - European Equity Portfolio (DryEuroEq) 1,788 shares (cost $29,011).......................................................................... 28,386 Federated Insurance Series - Quality Bond Fund II (FedQualBd2) 44,637 shares (cost $433,244)........................................................................ 446,819 Fidelity VIP - Equity-Income Portfolio - Service Class (FidVEqInS) 103,686 shares (cost $2,429,813)..................................................................... 2,369,234 Fidelity VIP - Growth Portfolio - Service Class (FidVGrS) 434,417 shares (cost $21,462,194).................................................................... 22,324,674 Fidelity VIP - High Income Portfolio - Service Class (FidVHiInS) 215,918 shares (cost $2,303,699)..................................................................... 2,161,344 Fidelity VIP - Overseas Portfolio - Service Class (FidVOvSeS) 159,034 shares (cost $3,894,989)..................................................................... 3,724,572 Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVConS) 229,212 shares (cost $6,008,138)..................................................................... 5,737,176 Fidelity VIP-III - Growth Opportunities Portfolio - Service Class (FidVGrOpS) 107,404 shares (cost $2,305,840)..................................................................... 2,210,378 Janus Aspen Series - Global Technology Portfolio - Service Class (JanAGlTchS) 32,717 shares (cost $346,552)........................................................................ 321,276 Janus Aspen Series - International Growth Portfolio - Service Class (JanAIntGrS) 6,270 shares (cost $237,365)......................................................................... 246,735 Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt) 77,759 shares (cost $544,804)........................................................................ 572,305 Nationwide SAT - Balanced Fund (NSATBal) 93,238 shares (cost $972,035)........................................................................ 972,477
6 6
Nationwide SAT - Capital Appreciation Fund (NSATCapAp) 96,936 shares (cost $2,440,802)...................................................................... 2,506,776 Nationwide SAT - Equity Income Fund (NSATEqInc) 20,860 shares (cost $283,739)........................................................................ 286,196 Nationwide SAT - Nationwide Global 50 Fund (NSATGlob50) 62,334 shares (cost $836,327)........................................................................ 853,352 Nationwide SAT - Government Bond Fund (NSATGvtBd) 1,504,192 shares (cost $16,305,397).................................................................. 16,380,654 Nationwide SAT - High Income Bond Fund (NSATHIncBd) 162,250 shares (cost $1,505,315)..................................................................... 1,447,266 Nationwide SAT - Mid Cap Index Fund (NSATMidCap) 77,768 shares (cost $987,884)........................................................................ 1,033,540 Nationwide SAT - Money Market Fund (NSATMMkt) 24,706,109 shares (cost $24,706,109)................................................................. 24,706,109 Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd) 276,598 shares (cost $2,585,415)..................................................................... 2,569,599 Nationwide SAT - Small Cap Growth Fund (NSATSmCapG) 149,443 shares (cost $2,063,131)..................................................................... 3,094,956 Nationwide SAT - Small Cap Value Fund (NSATSmCapV) 118,604 shares (cost $1,215,931)..................................................................... 1,279,742 Nationwide SAT - Small Company Fund (NSATSmCo) 190,799 shares (cost $4,354,730)..................................................................... 4,541,022 Nationwide SAT - Strategic Growth Fund (NSATStrGro) 52,047 shares (cost $1,113,834)...................................................................... 1,117,460 Nationwide SAT - Strategic Value Fund (NSATStrVal) 12,131 shares (cost $108,944)........................................................................ 112,214 Nationwide SAT - Total Return Fund (NSATTotRtn) 9,567 shares (cost $181,963)......................................................................... 185,501 Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard) 60,358 shares (cost $942,901)........................................................................ 986,246 Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr) 55,782 shares (cost $1,367,627)...................................................................... 1,528,420 Neuberger & Berman AMT - Partners Portfolio (NBAMTPart) 78,540 shares (cost $1,328,138)...................................................................... 1,254,289 Oppenheimer - Aggressive Growth Fund/VA (OppAggGrVA) 61,978 shares (cost $5,369,685)...................................................................... 5,989,550 Oppenheimer - Capital Appreciation Fund/VA (OppCapApVA) 92,348 shares (cost $4,409,791)...................................................................... 4,722,671 Oppenheimer - Main Street Growth & Income Fund/VA (OppMGrInVA) 21,980 shares (cost $513,412)........................................................................ 513,234 Van Eck WIT - Worldwide Emerging Markets Fund (VEWwEmgMkt) 53,228 shares (cost $655,245)........................................................................ 664,821 Van Eck WIT - Worldwide Hard Assets Fund (VEWwHrdAst) 38,059 shares (cost $403,285)........................................................................ 428,540
(Continued) 7 7 NATIONWIDE VL SEPARATE ACCOUNT - C STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (VKMSRESec) 23,288 shares (cost $293,045)...................................................................... 313,461 Warburg Pincus Trust - Global Post - Venture Capital Portfolio (WPGlPVenCp) 47,919 shares (cost $898,740)...................................................................... 968,918 Warburg Pincus Trust - International Equity Portfolio (WPIntEq) 23,910 shares (cost $371,564)...................................................................... 364,387 Warburg Pincus Trust - Value Portfolio (WPValue) 20,235 shares (cost $222,434)...................................................................... 234,721 ------------- Total investments............................................................................... 175,524,659 Accounts receivable...................................................................................... 59,117 ------------- Total assets.................................................................................... 175,583,776 ACCOUNTS PAYABLE............................................................................................ - ------------- CONTRACT OWNERS' EQUITY (NOTE 6)............................................................................ $ 175,583,776 =============
See accompanying notes to financial statements. 8 8 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY STATEMENTS OF OPERATIONS SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
Total ACVPIncGr ------------------------------ ------------------------------ 2000 1999 2000 1999 ------------- ------------- ------------- ------------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ $ 1,735,770 574,990 32,481 165 Mortality and expense charges (note 3) ...................... (261,489) (93,438) (9,509) (2,894) ------------- ------------- ------------- ------------- Net investment activity ............................ 1,474,281 481,552 22,972 (2,729) ------------- ------------- ------------- ------------- Proceeds from mutual fund shares sold ....................... 56,886,921 35,955,196 2,731,887 866,199 Cost of mutual fund shares sold ............................. (52,598,072) (34,334,981) (2,533,266) (776,553) ------------- ------------- ------------- ------------- Realized gain (loss) on investments ................ 4,288,849 1,620,215 198,621 89,646 Change in unrealized gain (loss) on investments ............. (6,001,647) 2,427,206 (565,992) 121,392 ------------- ------------- ------------- ------------- Net gain (loss) on investments ..................... (1,712,798) 4,047,421 (367,371) 211,038 ------------- ------------- ------------- ------------- Reinvested capital gains .................................... 2,666,845 450,919 -- -- ------------- ------------- ------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations .. 2,428,328 4,979,892 (344,399) 208,309 ------------- ------------- ------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 52,864,932 43,819,796 3,557,239 2,957,314 Transfers between funds ..................................... -- -- (1,453,508) 230,864 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (1,891,295) (1,058,304) (49,682) (22,420) ------------- ------------- ------------- ------------- Net equity transactions ................... 50,973,637 42,761,492 2,054,049 3,165,758 ------------- ------------- ------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 53,401,965 47,741,384 1,709,650 3,374,067 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 122,181,811 26,899,259 5,781,146 459,304 ------------- ------------- ------------- ------------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 175,583,776 74,640,643 7,490,796 3,833,371 ============= ============= ============= ============= ACVPInt ACVPValue ------------------------------ ------------------------------ 2000 1999 2000 1999 ------------- ------------- ------------- ------------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ 4,738 -- 599 1,471 Mortality and expense charges (note 3) ...................... (8,066) (1,770) (963) (294) ------------- ------------- ------------- ------------- Net investment activity ............................ (3,328) (1,770) (364) 1,177 ------------- ------------- ------------- ------------- Proceeds from mutual fund shares sold ....................... 938,955 476,367 791,886 32,451 Cost of mutual fund shares sold ............................. (574,279) (429,836) (762,705) (30,139) ------------- ------------- ------------- ------------- Realized gain (loss) on investments ................ 364,676 46,531 29,181 2,312 Change in unrealized gain (loss) on investments ............. (757,285) 47,565 (22,743) 8,933 ------------- ------------- ------------- ------------- Net gain (loss) on investments ..................... (392,609) 94,096 6,438 11,245 ------------- ------------- ------------- ------------- Reinvested capital gains .................................... 70,841 -- 1,532 13,940 ------------- ------------- ------------- ------------- Net increase (decrease) in contract owners' equity resulting from operations .. (325,096) 92,326 7,606 26,362 ------------- ------------- ------------- ------------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 1,741,572 1,286,823 148,591 38,964 Transfers between funds ..................................... 1,479,670 137,674 230,127 29,313 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (62,679) (29,776) (6,558) (2,963) ------------- ------------- ------------- ------------- Net equity transactions ................... 3,158,563 1,394,721 372,160 65,314 ------------- ------------- ------------- ------------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 2,833,467 1,487,047 379,766 91,676 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 3,233,319 306,135 315,811 96,106 ------------- ------------- ------------- ------------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 6,066,786 1,793,182 695,577 187,782 ============= ============= ============= =============
(Continued) 9 9 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
DrySRGr DryStkIx -------------------------- ------------------------- 2000 1999 2000 1999 ----------- ------- ---------- ---------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ $ 65 -- 174,261 103,831 Mortality and expense charges (note 3) ...................... (700) (183) (67,037) (27,737) ----------- --------- ---------- ---------- Net investment activity ............................ (635) (183) 107,224 76,094 ----------- --------- ---------- ---------- Proceeds from mutual fund shares sold ....................... 595,231 9,570 8,794,037 709,436 Cost of mutual fund shares sold ............................. (577,853) (8,453) (7,287,267) (547,076) ----------- --------- ---------- ---------- Realized gain (loss) on investments ................ 17,378 1,117 1,506,770 162,360 Change in unrealized gain (loss) on investments ............. 670 14,782 (1,862,189) 1,367,902 ----------- --------- ---------- ---------- Net gain (loss) on investments ..................... 18,048 15,899 (355,419) 1,530,262 ----------- --------- ---------- ---------- Reinvested capital gains .................................... -- -- 38,195 62,396 ----------- --------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations .. 17,413 15,716 (210,000) 1,668,752 ----------- --------- ---------- ---------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 393,272 185,242 12,136,138 6,946,038 Transfers between funds ..................................... (24,981) 17,491 (4,221,481) 9,716,946 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (5,729) (2,136) (485,641) (261,291) ----------- --------- ---------- ---------- Net equity transactions ................... 362,562 200,597 7,429,016 16,401,693 ----------- --------- ---------- ---------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 379,975 216,313 7,219,016 18,070,445 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 108,845 8,270 31,914,985 6,042,687 ----------- --------- ---------- ---------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 488,820 224,583 39,134,001 24,113,132 =========== ========= ========== ========== DryVApp DryEuroEq -------------------------- ------------------------- 2000 1999 2000 1999 ----------- ------- ---------- ---------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ 104 45 -- -- Mortality and expense charges (note 3) ...................... (3,919) (1,486) (158) -- ----------- --------- ---------- ---------- Net investment activity ............................ (3,815) (1,441) (158) -- ----------- --------- ---------- ---------- Proceeds from mutual fund shares sold ....................... 585,473 419,714 666,007 -- Cost of mutual fund shares sold ............................. (555,624) (373,844) (636,617) -- ----------- --------- ---------- ---------- Realized gain (loss) on investments ................ 29,849 45,870 29,390 -- Change in unrealized gain (loss) on investments ............. 67,617 11,054 (7,222) -- ----------- --------- ---------- ---------- Net gain (loss) on investments ..................... 97,466 56,924 22,168 -- ----------- --------- ---------- ---------- Reinvested capital gains .................................... -- -- 134 -- ----------- --------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations .. 93,651 55,483 22,144 -- ----------- --------- ---------- ---------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 859,619 530,036 63,923 -- Transfers between funds ..................................... 63,348 245,690 (351,073) -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (33,049) (27,292) (1,331) -- ----------- --------- ---------- ---------- Net equity transactions ................... 889,918 748,434 (288,481) -- ----------- --------- ---------- ---------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 983,569 803,917 (266,337) -- CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 1,467,751 300,742 294,707 -- ----------- --------- ---------- ---------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 2,451,320 1,104,659 28,370 -- =========== ========= ========== ==========
10 10 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
FedQualBd2 FidVEqInS ------------------------- ------------------------ 2000 1999 2000 1999 ---------- --------- --------- --------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ $ 189 -- 10,995 148 Mortality and expense charges (note 3) ...................... (270) -- (2,980) (180) ---------- --------- --------- --------- Net investment activity ............................ (81) -- 8,015 (32) ---------- --------- --------- --------- Proceeds from mutual fund shares sold ....................... 36,352 -- 1,818,883 72,901 Cost of mutual fund shares sold ............................. (37,004) -- (1,925,957) (73,300) ---------- --------- --------- --------- Realized gain (loss) on investments ................ (652) -- (107,074) (399) Change in unrealized gain (loss) on investments ............. 13,574 -- (105,224) 5,582 ---------- --------- --------- --------- Net gain (loss) on investments ..................... 12,922 -- (212,298) 5,183 ---------- --------- --------- --------- Reinvested capital gains .................................... -- -- 42,410 327 ---------- --------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations .. 12,841 -- (161,873) 5,478 ---------- --------- --------- --------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 72,878 -- 390,145 8,520 Transfers between funds ..................................... 362,876 -- 497,899 263,312 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (1,361) -- (18,082) (1,648) ---------- --------- --------- --------- Net equity transactions ................... 434,393 -- 869,962 270,184 ---------- --------- --------- --------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 447,234 -- 708,089 275,662 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... -- -- 1,703,236 9,154 ---------- --------- --------- --------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 447,234 -- 2,411,325 284,816 ========== ========= ========= ========= FidVGrS FidHiInS ------------------------- ------------------------ 2000 1999 2000 1999 ---------- --------- --------- --------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ 9,556 2,889 129,079 96,332 Mortality and expense charges (note 3) ...................... (22,803) (6,047) (4,098) (3,765) ---------- --------- --------- --------- Net investment activity ............................ (13,247) (3,158) 124,981 92,567 ---------- --------- --------- --------- Proceeds from mutual fund shares sold ....................... 1,521,224 380,415 710,612 2,626,664 Cost of mutual fund shares sold ............................. (1,234,724) (321,246) (766,799) (2,554,125) ---------- --------- --------- --------- Realized gain (loss) on investments ................ 286,500 59,169 (56,187) 72,539 Change in unrealized gain (loss) on investments ............. (780,706) 183,872 (179,408) (27,293) ---------- --------- --------- --------- Net gain (loss) on investments ..................... (494,206) 243,041 (235,595) 45,246 ---------- --------- --------- --------- Reinvested capital gains .................................... 1,140,977 181,621 -- 3,601 ---------- --------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations .. 633,524 421,504 (110,614) 141,414 ---------- --------- --------- --------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 4,586,646 3,380,024 780,810 2,059,902 Transfers between funds ..................................... 7,291,805 1,362,296 192,927 (730,917) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (121,060) (47,634) (36,085) (106,899) ---------- --------- --------- --------- Net equity transactions ................... 11,757,391 4,694,686 937,652 1,222,086 ---------- --------- --------- --------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 12,390,915 5,116,190 827,038 1,363,500 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 9,943,032 1,576,877 1,334,832 957,639 ---------- --------- --------- --------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 22,333,947 6,693,067 2,161,870 2,321,139 ========== ========= ========= =========
(Continued) 11 11 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
FidVOvSeS FidVConS -------------------------- ------------------------ 2000 1999 2000 1999 ----------- ------- --------- --------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ $ 22,282 10,719 13,786 6,775 Mortality and expense charges (note 3) ...................... (5,359) (1,521) (9,156) (3,431) ----------- --------- --------- --------- Net investment activity ............................ 16,923 9,198 4,630 3,344 ----------- --------- --------- --------- Proceeds from mutual fund shares sold ....................... 993,195 400,402 1,785,925 862,713 Cost of mutual fund shares sold ............................. (891,851) (359,909) (1,698,711) (685,582) ----------- --------- --------- --------- Realized gain (loss) on investments ................ 101,344 40,493 87,214 177,131 Change in unrealized gain (loss) on investments ............. (413,884) 4,463 (697,874) (21,924) ----------- --------- --------- --------- Net gain (loss) on investments ..................... (312,540) 44,956 (610,660) 155,207 ----------- --------- --------- --------- Reinvested capital gains .................................... 144,214 17,288 500,421 49,679 ----------- --------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations .. (151,403) 71,442 (105,609) 208,230 ----------- --------- --------- --------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 898,398 201,212 1,828,246 694,756 Transfers between funds ..................................... 1,433,517 (71,366) 740,175 649,502 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (49,900) (15,621) (84,486) (48,109) ----------- --------- --------- --------- Net equity transactions ................... 2,282,015 114,225 2,483,935 1,296,149 ----------- --------- --------- --------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 2,130,612 185,667 2,378,326 1,504,379 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 1,592,636 668,428 3,365,677 1,270,102 ----------- --------- --------- --------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 3,723,248 854,095 5,744,003 2,774,481 =========== ========= ========= ========= FidVGrOpS JanAGlTchS -------------------------- ------------------------ 2000 1999 2000 1999 ----------- ------- --------- --------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ 31,207 3,879 -- -- Mortality and expense charges (note 3) ...................... (4,746) (1,998) (331) -- ----------- --------- --------- --------- Net investment activity ............................ 26,461 1,881 (331) -- ----------- --------- --------- --------- Proceeds from mutual fund shares sold ....................... 1,461,974 880,110 24,816 -- Cost of mutual fund shares sold ............................. (1,600,148) (827,047) (30,948) -- ----------- --------- --------- --------- Realized gain (loss) on investments ................ (138,174) 53,063 (6,132) -- Change in unrealized gain (loss) on investments ............. (156,127) 39,363 (25,276) -- ----------- --------- --------- --------- Net gain (loss) on investments ..................... (294,301) 92,426 (31,408) -- ----------- --------- --------- --------- Reinvested capital gains .................................... 164,127 7,581 -- -- ----------- --------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations .. (103,713) 101,888 (31,739) -- ----------- --------- --------- --------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 735,424 843,724 138,667 -- Transfers between funds ..................................... (859,895) 190,195 216,727 -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (39,760) (43,600) (2,798) -- ----------- --------- --------- --------- Net equity transactions ................... (164,231) 990,319 352,596 -- ----------- --------- --------- --------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... (267,944) 1,092,207 320,857 -- CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 2,478,202 393,106 -- -- ----------- --------- --------- --------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 2,210,258 1,485,313 320,857 -- =========== ========= ========= =========
12 12 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
JanAIntGrS MSEmMkt ---------------------- --------------------- 2000 1999 2000 1999 ---------- ------- ------- ------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ $ - -- -- -- Mortality and expense charges (note 3) ...................... (43) -- (476) (230) ------- ------- --------- --------- Net investment activity ............................ (43) -- (476) (230) ------- ------- --------- --------- Proceeds from mutual fund shares sold ....................... 431 -- 87,491 180,915 Cost of mutual fund shares sold ............................. (438) -- (90,248) (171,817) ------- ------- --------- --------- Realized gain (loss) on investments ................ (7) -- (2,757) 9,098 Change in unrealized gain (loss) on investments ............. 9,370 -- 31,192 9,575 ------- ------- --------- --------- Net gain (loss) on investments ..................... 9,363 -- 28,435 18,673 ------- ------- --------- --------- Reinvested capital gains .................................... -- -- -- -- ------- ------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations .. 9,320 -- 27,959 18,443 ------- ------- --------- --------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 2,096 -- 27,962 42,135 Transfers between funds ..................................... 238,417 -- 457,514 35,983 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (3,093) -- (7,770) (2,383) ------- ------- --------- --------- Net equity transactions ................... 237,420 -- 477,706 75,735 ------- ------- --------- --------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 246,740 -- 505,665 94,178 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... -- -- 61,956 90,735 ------- ------- --------- --------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $246,740 -- 567,621 184,913 ======== ======= ========= ========= NSATBal NSATCapAp --------------------- ----------------------- 2000 1999 2000 1999 ---------- ------- ------- ------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ 13,845 9,254 4,216 3,127 Mortality and expense charges (note 3) ...................... (1,745) (790) (4,765) (1,751) ------- ------- --------- --------- Net investment activity ............................ 12,100 8,464 (549) 1,376 ------- ------- --------- --------- Proceeds from mutual fund shares sold ....................... 288,374 224,189 1,378,843 311,026 Cost of mutual fund shares sold ............................. (311,933) (215,596) (1,552,930) (270,998) ------- ------- --------- --------- Realized gain (loss) on investments ................ (23,559) 8,593 (174,087) 40,028 Change in unrealized gain (loss) on investments ............. 37,587 9,771 203,778 104,031 ------- ------- --------- --------- Net gain (loss) on investments ..................... 14,028 18,364 29,691 144,059 ------- ------- --------- --------- Reinvested capital gains .................................... -- 5 -- -- ------- ------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations .. 26,128 26,833 29,142 145,435 ------- ------- --------- --------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 374,066 367,059 923,374 771,832 Transfers between funds ..................................... (160,139) 407,651 (515,085) 188,299 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (17,478) (11,925) (40,132) (29,635) ------- ------- --------- --------- Net equity transactions ................... 196,449 762,785 368,157 930,496 ------- ------- --------- --------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 222,577 789,618 397,299 1,075,931 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 750,005 80,927 2,109,851 471,725 ------- ------- --------- --------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 972,582 870,545 2,507,150 1,547,656 ======= ======= ========= =========
(Continued) 13 13 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
NSATEqInc NSATGlob50 -------------------------- -------------------------- 2000 1999 2000 1999 ----------- ----------- ----------- ----------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ $ 708 238 6,900 757 Mortality and expense charges (note 3) ...................... (315) (166) (1,796) (109) ----------- ----------- ----------- ----------- Net investment activity ............................ 393 72 5,104 648 ----------- ----------- ----------- ----------- Proceeds from mutual fund shares sold ....................... 77,776 11,096 665,054 34,192 Cost of mutual fund shares sold ............................. (71,109) (11,232) (617,449) (32,405) ----------- ----------- ----------- ----------- Realized gain (loss) on investments ................ 6,667 (136) 47,605 1,787 Change in unrealized gain (loss) on investments ............. (1,906) 7,733 (55,907) 4,519 ----------- ----------- ----------- ----------- Net gain (loss) on investments ..................... 4,761 7,597 (8,302) 6,306 ----------- ----------- ----------- ----------- Reinvested capital gains .................................... -- 44 -- 32 ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity resulting from operations .. 5,154 7,713 (3,198) 6,986 ----------- ----------- ----------- ----------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 66,654 29,586 70,664 11,597 Transfers between funds ..................................... 163,007 201,347 (311,599) 355,473 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (2,523) (1,974) (13,443) (3,726) ----------- ----------- ----------- ----------- Net equity transactions ................... 227,138 228,959 (254,378) 363,344 ----------- ----------- ----------- ----------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 232,292 236,672 (257,576) 370,330 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 53,898 -- 1,110,965 2,480 ----------- ----------- ----------- ----------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 286,190 236,672 853,389 372,810 =========== =========== =========== =========== NSATGvtBd NSATHIncBd -------------------------- -------------------------- 2000 1999 2000 1999 ----------- ----------- ----------- ----------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ 479,057 120,416 63,565 10,915 Mortality and expense charges (note 3) ...................... (20,760) (5,236) (2,275) (493) ----------- ----------- ----------- ----------- Net investment activity ............................ 458,297 115,180 61,290 10,422 ----------- ----------- ----------- ----------- Proceeds from mutual fund shares sold ....................... 5,491,499 1,313,299 205,821 451,949 Cost of mutual fund shares sold ............................. (5,636,134) (1,344,373) (216,238) (447,400) ----------- ----------- ----------- ----------- Realized gain (loss) on investments ................ (144,635) (31,074) (10,417) 4,549 Change in unrealized gain (loss) on investments ............. 315,272 (145,837) (54,383) (12,864) ----------- ----------- ----------- ----------- Net gain (loss) on investments ..................... 170,637 (176,911) (64,800) (8,315) ----------- ----------- ----------- ----------- Reinvested capital gains .................................... -- -- 2 112 ----------- ----------- ----------- ----------- Net increase (decrease) in contract owners' equity resulting from operations .. 628,934 (61,731) (3,508) 2,219 ----------- ----------- ----------- ----------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 2,466,468 2,063,830 144,234 52,337 Transfers between funds ..................................... (1,383,495) 2,894,605 1,160,037 150,870 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (138,943) (57,420) (25,677) (5,650) ----------- ----------- ----------- ----------- Net equity transactions ................... 944,030 4,901,015 1,278,594 197,557 ----------- ----------- ----------- ----------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 1,572,964 4,839,284 1,275,086 199,776 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 14,808,767 504,828 172,149 145,175 ----------- ----------- ----------- ----------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 16,381,731 5,344,112 1,447,235 344,951 =========== =========== =========== ===========
14 14 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
NSATMMkt NSATMSecBd ---------------------------- ------------------------- 2000 1999 2000 1999 ------------ --------- --------- ------- INVESTMENT ACTIVITY: Reinvested dividends ............................ $ 610,793 169,172 78,228 10,156 Mortality and expense charges (note 3) .......... (40,803) (15,357) (4,318) (695) ------------ --------- --------- ------- Net investment activity ...................... 569,990 153,815 73,910 9,461 ------------ --------- --------- ------- Proceeds from mutual fund shares sold ........... 10,374,951 19,350,999 718,618 320,311 Cost of mutual fund shares sold ................. (10,374,951) (19,350,999) (715,730) (320,864) ------------ --------- --------- ------- Realized gain (loss) on investments .......... -- -- 2,888 (553) Change in unrealized gain (loss) on investments . -- -- (13,051) (13,968) ------------ --------- --------- ------- Net gain (loss) on investments ............... -- -- (10,163) (14,521) ------------ --------- --------- ------- Reinvested capital gains ........................ -- -- -- -- ------------ --------- --------- ------- Net increase (decrease) in contract owners' equity resulting from operations ........ 569,990 153,815 63,747 (5,060) ------------ --------- --------- ------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .............................. 12,819,440 16,476,558 441,440 227,416 Transfers between funds ......................... (7,152,625) (16,830,516) 1,672,692 (141,913) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ............................ (286,491) (118,848) (42,821) (10,538) ------------ --------- --------- ------- Net equity transactions .................... 5,380,324 (472,806) 2,071,311 74,965 ------------ --------- --------- ------- NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 5,950,314 (318,990) 2,135,058 69,905 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 18,757,568 7,180,241 434,557 325,786 ------------ --------- --------- ------- CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 24,707,882 6,861,251 2,569,615 395,691 ============ ========= ========= ======= NSATMidCap NSATSmCapG -------------------------- ------------------------- 2000 1999 2000 1999 --------- ------- --------- --------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ 2,829 1 -- -- Mortality and expense charges (note 3) ...................... (1,592) (9) (1,591) -- --------- ------ --------- --------- Net investment activity ............................ 1,237 (8) (1,591) -- --------- ------ --------- --------- Proceeds from mutual fund shares sold ....................... 204,147 2,945 640,372 -- Cost of mutual fund shares sold ............................. (195,220) (2,600) (578,703) -- --------- ------ --------- --------- Realized gain (loss) on investments ................ 8,927 345 61,669 -- Change in unrealized gain (loss) on investments ............. 52,473 (351) 28,959 127,000 --------- ------ --------- --------- Net gain (loss) on investments ..................... 61,400 (6) 90,628 127,000 --------- ------ --------- --------- Reinvested capital gains .................................... -- -- -- -- --------- ------ --------- --------- Net increase (decrease) in contract owners' equity resulting from operations .. 62,637 (14) 89,037 127,000 --------- ------ --------- --------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 300,741 1,113 9,361 999,286 Transfers between funds ..................................... 91,564 (2,907) 347,100 -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (5,366) (9) (9,138) -- --------- ------ --------- --------- Net equity transactions ................... 386,939 (1,803) 347,323 999,286 --------- ------ --------- --------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 449,576 (1,817) 436,360 1,126,286 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 588,358 2,544 2,649,638 -- --------- ------ --------- --------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 1,037,934 727 3,085,998 1,126,286 ========= ====== ========= =========
(Continued) 15 15 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
NSATSmCapV NSATSmCo -------------------------- ----------------------- 2000 1999 2000 1999 ----------- --------- --------- --------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ $ -- -- 1,182 -- Mortality and expense charges (note 3) ...................... (1,608) (1,939) (9,560) (1,655) ----------- --------- --------- --------- Net investment activity ............................ (1,608) (1,939) (8,378) (1,655) ----------- --------- --------- --------- Proceeds from mutual fund shares sold ....................... 431,815 23,053 2,018,487 652,792 Cost of mutual fund shares sold ............................. (417,829) (20,377) (1,392,271) (604,897) ----------- --------- --------- --------- Realized gain (loss) on investments ................ 13,986 2,676 626,216 47,895 Change in unrealized gain (loss) on investments ............. 66,935 252,331 (314,178) 69,355 ----------- --------- --------- --------- Net gain (loss) on investments ..................... 80,921 255,007 312,038 117,250 ----------- --------- --------- --------- Reinvested capital gains .................................... -- 60,891 -- -- ----------- --------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations . 79,313 313,959 303,660 115,595 ----------- --------- --------- --------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 353,002 26,813 818,252 756,241 Transfers between funds ..................................... 686,918 525,388 868,465 (50,555) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (17,157) (10,943) (77,897) (42,971) ----------- --------- --------- --------- Net equity transactions ................... 1,022,763 541,258 1,608,820 662,715 ----------- --------- --------- --------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 1,102,076 855,217 1,912,480 778,310 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 177,662 587,880 2,633,502 457,896 ----------- --------- --------- --------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 1,279,738 1,443,097 4,545,982 1,236,206 =========== ========= ========= ========= NSATStrGro NSATStrVal ------------------------ ---------------------- 2000 1999 2000 1999 --------- ------ ------- ------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ -- -- 511 1,083 Mortality and expense charges (note 3) ...................... (2,281) (49) (338) (481) --------- ------ ------- ------- Net investment activity ............................ (2,281) (49) 173 602 --------- ------ ------- ------- Proceeds from mutual fund shares sold ....................... 675,957 10,464 979,633 337,174 Cost of mutual fund shares sold ............................. (577,983) (9,961) (997,731) (295,065) --------- ------ ------- ------- Realized gain (loss) on investments ................ 97,974 503 (18,098) 42,109 Change in unrealized gain (loss) on investments ............. (104,528) 5,388 (10,745) (36,733) --------- ------ ------- ------- Net gain (loss) on investments ..................... (6,554) 5,891 (28,843) 5,376 --------- ------ ------- ------- Reinvested capital gains .................................... -- -- -- 3,883 --------- ------ ------- ------- Net increase (decrease) in contract owners' equity resulting from operations . (8,835) 5,842 (28,670) 9,861 --------- ------ ------- ------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 537,632 15,613 110,849 59,802 Transfers between funds ..................................... (323,543) 26,879 (665,620) (88,739) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (20,245) (770) (5,043) (6,250) --------- ------ ------- ------- Net equity transactions ................... 193,844 41,722 (559,814) (35,187) --------- ------ ------- ------- NET CHANGE IN CONTRACT OWNERS' EQUITY ........................ 185,009 47,564 (588,484) (25,326) CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 932,453 -- 700,700 283,667 --------- ------ ------- ------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 1,117,462 47,564 112,216 258,341 ========= ====== ======= =======
16 16 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
NSATTotRtn NBAMTGuard ------------------------ --------------------- 2000 1999 2000 1999 ---------- ------ ------- --------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ $ 853 75 4,952 6,081 Mortality and expense charges (note 3) ...................... (516) (139) (1,253) (2,924) ---------- ------ ------- --------- Net investment activity ............................ 337 (64) 3,699 3,157 ---------- ------ ------- --------- Proceeds from mutual fund shares sold ....................... 551,683 162,224 325,652 951,436 Cost of mutual fund shares sold ............................. (546,397) (149,286) (306,647) (732,696) ---------- ------ ------- --------- Realized gain (loss) on investments ................ 5,286 12,938 19,005 218,740 Change in unrealized gain (loss) on investments ............. 6,209 (4,684) 3,878 38,434 ---------- ------ ------- --------- Net gain (loss) on investments ..................... 11,495 8,254 22,883 257,174 ---------- ------ ------- --------- Reinvested capital gains .................................... -- 6 -- -- ---------- ------ ------- --------- Net increase (decrease) in contract owners' equity resulting from operations .. 11,832 8,196 26,582 260,331 ---------- ------ ------- --------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 176,200 43,900 388,331 473,593 Transfers between funds ..................................... (139,539) (121,292) (244,558) (437,334) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (5,312) (2,026) (8,312) (27,412) ---------- ------ ------- --------- Net equity transactions ................... 31,349 (79,418) 135,461 8,847 ---------- ------ ------- --------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 43,181 (71,222) 162,043 269,178 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 142,327 103,390 824,401 1,198,660 ---------- ------ ------- --------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 185,508 32,168 986,444 1,467,838 ========== ====== ======= ========= NBAMTMCGr NBAMTPart ----------------------- ----------------------- 2000 1999 2000 1999 --------- --------- --------- --------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ -- -- 6,994 4,324 Mortality and expense charges (note 3) ...................... (2,434) (2,756) (2,153) (1,176) --------- --------- --------- --------- Net investment activity ............................ (2,434) (2,756) 4,841 3,148 --------- --------- --------- --------- Proceeds from mutual fund shares sold ....................... 501,362 755,623 578,158 80,205 Cost of mutual fund shares sold ............................. (298,044) (613,410) (640,843) (68,280) --------- --------- --------- --------- Realized gain (loss) on investments ................ 203,318 142,213 (62,685) 11,925 Change in unrealized gain (loss) on investments ............. (30,929) (67,406) (83,881) 60,860 --------- --------- --------- --------- Net gain (loss) on investments ..................... 172,389 74,807 (146,566) 72,785 --------- --------- --------- --------- Reinvested capital gains .................................... 442 33,171 148,730 7,690 --------- --------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations .. 170,397 105,222 7,005 83,623 --------- --------- --------- --------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 485,372 277,411 485,420 428,649 Transfers between funds ..................................... 144,271 160,904 (256,948) 370,920 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (21,037) (22,731) (20,295) (16,099) --------- --------- --------- --------- Net equity transactions ................... 608,606 415,584 208,177 783,470 --------- --------- --------- --------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 779,003 520,806 215,182 867,093 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 749,388 1,081,173 1,039,111 242,510 --------- --------- --------- --------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 1,528,391 1,601,979 1,254,293 1,109,603 ========= ========= ========= =========
(Continued) 17 17 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
OppAggGrVA OppCapApVA -------------------------- ------------------------ 2000 1999 2000 1999 ----------- --------- --------- ------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ $ -- -- 4,074 122 Mortality and expense charges (note 3) ...................... (8,493) (1,523) (5,584) (445) ----------- --------- --------- ------- Net investment activity ............................ (8,493) (1,523) (1,510) (323) ----------- --------- --------- ------- Proceeds from mutual fund shares sold ....................... 2,470,167 247,577 1,109,805 375,974 Cost of mutual fund shares sold ............................. (1,619,692) (173,671) (890,549) (345,292) ----------- --------- --------- ------- Realized gain (loss) on investments ................ 850,475 73,906 219,256 30,682 Change in unrealized gain (loss) on investments ............. (113,083) 103,252 (171,481) 23,591 ----------- --------- --------- ------- Net gain (loss) on investments ..................... 737,392 177,158 47,775 54,273 ----------- --------- --------- ------- Reinvested capital gains .................................... 176,333 -- 217,412 1,339 ----------- --------- --------- ------- Net increase (decrease) in contract owners' equity resulting from operations .. 905,232 175,635 263,677 55,289 ----------- --------- --------- ------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 1,224,175 240,951 1,282,006 412,028 Transfers between funds ..................................... 20,658 188,281 372,467 298,494 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (52,161) (13,650) (19,415) (5,817) ----------- --------- --------- ------- Net equity transactions ................... 1,192,672 415,582 1,635,058 704,705 ----------- --------- --------- ------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 2,097,904 591,217 1,898,735 759,994 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 3,891,683 515,466 2,825,533 125,183 ----------- --------- --------- ------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 5,989,587 1,106,683 4,724,268 885,177 =========== ========= ========= ======= OppMGrInVA VEWwEmgMkt ---------------------- ---------------------- 2000 1999 2000 1999 ------- ------- ------- ------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ 1,596 4,341 -- -- Mortality and expense charges (note 3) ...................... (885) (1,473) (1,117) (402) ------- ------- ------- ------- Net investment activity ............................ 711 2,868 (1,117) (402) ------- ------- ------- ------- Proceeds from mutual fund shares sold ....................... 894,334 254,479 240,058 66,249 Cost of mutual fund shares sold ............................. (886,462) (208,779) (163,081) (45,924) ------- ------- ------- ------- Realized gain (loss) on investments ................ 7,872 45,700 76,977 20,325 Change in unrealized gain (loss) on investments ............. (30,566) 81,678 (140,409) 69,765 ------- ------- ------- ------- Net gain (loss) on investments ..................... (22,694) 127,378 (63,432) 90,090 ------- ------- ------- ------- Reinvested capital gains .................................... 21,075 7,313 -- -- ------- ------- ------- ------- Net increase (decrease) in contract owners' equity resulting from operations .. (908) 137,559 (64,549) 89,688 ------- ------- ------- ------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 188,694 124,684 137,675 76,780 Transfers between funds ..................................... (193,593) 429,376 118,188 (30,073) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (9,570) (11,994) (9,236) (5,415) ------- ------- ------- ------- Net equity transactions ................... (14,469) 542,066 246,627 41,292 ------- ------- ------- ------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... (15,377) 679,625 182,078 130,980 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 528,617 276,899 482,197 133,153 ------- ------- ------- ------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 513,240 956,524 664,275 264,133 ======= ======= ======= =======
18 18 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
VEWwHrdAst VKMSRESec ---------------------- -------------------- 2000 1999 2000 1999 --------- ------- ------- ------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ $ 3,614 1,327 22,511 7,347 Mortality and expense charges (note 3) ...................... (786) (216) (822) (313) --------- ------- ------- ------- Net investment activity ............................ 2,828 1,111 21,689 7,034 --------- ------- ------- ------- Proceeds from mutual fund shares sold ....................... 163,672 332,265 633,505 491,084 Cost of mutual fund shares sold ............................. (151,128) (309,311) (623,288) (463,524) --------- ------- ------- ------- Realized gain (loss) on investments ................ 12,544 22,954 10,217 27,560 Change in unrealized gain (loss) on investments ............. 11,597 5,720 15,670 2,328 --------- ------- ------- ------- Net gain (loss) on investments ..................... 24,141 28,674 25,887 29,888 --------- ------- ------- ------- Reinvested capital gains .................................... -- -- -- -- --------- ------- ------- ------- Net increase (decrease) in contract owners' equity resulting from operations .. 26,969 29,785 47,576 36,922 --------- ------- ------- ------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 21,688 26,089 121,105 235,712 Transfers between funds ..................................... 69,448 40,017 (288,128) 5,451 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (4,727) (2,224) (6,795) (11,659) --------- ------- ------- ------- Net equity transactions ................... 86,409 63,882 (173,818) 229,504 --------- ------- ------- ------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 113,378 93,667 (126,242) 266,426 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 315,168 82,749 439,508 14,393 --------- ------- ------- ------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 428,546 176,416 313,266 280,819 ========= ======= ======= ======= WPValue WPIntEq -------------------- -------------------- 2000 1999 2000 1999 ------- ------- ------- ------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ -- -- -- -- Mortality and expense charges (note 3) ...................... (632) (766) (806) (562) ------- ------- ------- ------- Net investment activity ............................ (632) (766) (806) (562) ------- ------- ------- ------- Proceeds from mutual fund shares sold ....................... 627,222 900,326 808,533 158,440 Cost of mutual fund shares sold ............................. (695,105) (811,642) (744,415) (145,585) ------- ------- ------- ------- Realized gain (loss) on investments ................ (67,883) 88,684 64,118 12,855 Change in unrealized gain (loss) on investments ............. 32,445 (31,843) (123,101) 12,371 ------- ------- ------- ------- Net gain (loss) on investments ..................... (35,438) 56,841 (58,983) 25,226 ------- ------- ------- ------- Reinvested capital gains .................................... -- -- -- -- ------- ------- ------- ------- Net increase (decrease) in contract owners' equity resulting from operations .. (36,070) 56,075 (59,789) 24,664 ------- ------- ------- ------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 179,755 227,908 97,287 119,716 Transfers between funds ..................................... (285,090) (535,326) (104,011) 2,873 Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (8,151) (12,735) (2,633) (7,053) ------- ------- ------- ------- Net equity transactions ................... (113,486) (320,153) (9,357) 115,536 ------- ------- ------- ------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... (149,556) (264,078) (69,146) 140,200 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 384,325 458,232 433,536 225,231 ------- ------- ------- ------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 234,769 194,154 364,390 365,431 ======= ======= ======= =======
(Continued) 19 19 NATIONWIDE VL SEPARATE ACCOUNT-C STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, CONTINUED STATEMENTS OF OPERATIONS, CONTINUED SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
WPGlPVenCp --------------------- 2000 1999 --------- ------- INVESTMENT ACTIVITY: Reinvested dividends ........................................ $ -- -- Mortality and expense charges (note 3) ...................... (1,647) (477) --------- ------- Net investment activity ............................ (1,647) (477) --------- ------- Proceeds from mutual fund shares sold ....................... 287,044 217,968 Cost of mutual fund shares sold ............................. (171,771) (181,887) --------- ------- Realized gain (loss) on investments ................ 115,273 36,081 Change in unrealized gain (loss) on investments ............. (76,795) (2,501) --------- ------- Net gain (loss) on investments ..................... 38,478 33,580 --------- ------- Reinvested capital gains .................................... -- -- --------- ------- Net increase (decrease) in contract owners' equity resulting from operations .. 36,831 33,103 --------- ------- EQUITY TRANSACTIONS: Purchase payments received from contract owners .................................... 279,421 98,602 Transfers between funds ..................................... 15,094 (85,156) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) .................................. (12,233) (7,058) --------- ------- Net equity transactions ................... 282,282 6,388 --------- ------- NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 319,113 39,491 CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 649,809 219,786 --------- ------- CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 968,922 259,277 ========= =======
See accompanying notes to financial statements. 20 20 NATIONWIDE VL SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 (UNAUDITED) (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Organization and Nature of Operations The Nationwide VL Separate Account-C (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life and Annuity Insurance Company (the Company) on December 3, 1997. The Account has been registered as a unit investment trust under the Investment Company Act of 1940. On May 3, 1999, the Company (Depositor) transferred to the Account 100,000 shares of the Nationwide SAT - Small Cap Growth Fund for which the Account was credited with 100,000 units of the Nationwide SAT - Small Cap Growth Fund. The value of the units purchased by the Company on May 3, 1999 was $1,000,000. The Company offers Corporate Flexible Premium Variable Life Insurance Policies through the Account. (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 policy charges, and note 3 for asset charges. Contract owners may invest in the following: Portfolios of the American Century Variable Portfolios, Inc. (American Century VP); American Century VP - American Century VP Income & Growth (ACVPIncGr) American Century VP - American Century VP International (ACVPInt) American Century VP - American Century VP Value (ACVPValue) The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGr) Dreyfus Stock Index Fund (DryStkIx) Portfolio of the Dreyfus Variable Investment Fund (Dreyfus VIF); Dreyfus VIF - Appreciation Portfolio (DryVApp) Dreyfus VIF - European Equity Portfolio (DryEuroEq) Federated Insurance Series - Quality Bond Fund II (FedQualBd2) Portfolios of the Fidelity Variable Insurance Products Fund (Fidelity VIP); Fidelity VIP - Equity-Income Portfolio - Service Class (FidVEqInS) Fidelity VIP - Growth Portfolio - Service Class (FidVGrS) Fidelity VIP - High Income Portfolio - Service Class (FidVHiInS) Fidelity VIP - Overseas Portfolio - Service Class (FidVOvSeS) Portfolio of the Fidelity Variable Insurance Products Fund II (Fidelity VIP-II); Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVConS) Portfolio of the Fidelity Variable Insurance Products Fund III (Fidelity VIP-III); Fidelity VIP-III - Growth Opportunities Portfolio - Service Class (FidVGrOpS) Portfolios of Janus Aspen Fund Series; Janus Aspen Series - Global Technology Portfolio - Service Class (JanAGlTchS) Janus Aspen Series - International Growth Portfolio - Service Class (JanAIntGrS) Portfolio of the Universal Institutional Funds, Inc. (Morgan Stanley); Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt) (Continued) 21 21 NATIONWIDE VL SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS, Continued Funds of the Nationwide Separate Account Trust (Nationwide SAT) (managed for a fee by an affiliated investment advisor); Nationwide SAT - Balanced Fund (NSATBal) Nationwide SAT - Capital Appreciation Fund (NSATCapAp) Nationwide SAT - Equity Income Fund (NSATEqInc) Nationwide SAT - Nationwide Global 50 Fund (NSATGlob50) Nationwide SAT - Government Bond Fund (NSATGvtBd) Nationwide SAT - High Income Bond Fund (NSATHIncBd) Nationwide SAT - Mid Cap Index Fund (NSATMidCap) Nationwide SAT - Money Market Fund (NSATMMkt) Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd) Nationwide SAT - Small Cap Growth Fund (NSATSmCapG) Nationwide SAT - Small Cap Value Fund (NSATSmCapV) Nationwide SAT - Small Company Fund (NSATSmCo) Nationwide SAT - Strategic Growth Fund (NSATStrGro) Nationwide SAT - Strategic Value Fund (NSATStrVal) Nationwide SAT - Total Return Fund (NSATTotRtn) Portfolios of the Neuberger & Berman Advisers Management Trust (Neuberger &Berman AMT); Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard) Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr) Neuberger & Berman AMT - Partners Portfolio (NBAMTPart) Funds of the Oppenheimer Variable Account Funds; Oppenheimer - Aggressive Growth Fund/VA (OppAggGrVA) Oppenheimer - Capital Appreciation Fund/VA (OppCapApVA) Oppenheimer - Global Securities Fund/VA (OppGlSecVA) Oppenheimer - Main Street Growth & Income Fund/VA (OppMGrInVA) Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT); Van Eck WIT - Worldwide Emerging Markets Fund (VEWwEmgMkt) Van Eck WIT - Worldwide Hard Assets Fund (VEWwHrdAst) Portfolio of the Van Kampen Life Investment Trust (Van Kampen LIT); Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (VKMSRESec) Portfolios of the Warburg Pincus Trust; Warburg Pincus Trust - Global Post - Venture Capital Portfolio (WPGlPVenCp) Warburg Pincus Trust - International Equity Portfolio (WPIntEq) Warburg Pincus Trust - Value Portfolio (WPValue) At June 30, 2000, contract owners have invested in all of the above funds except for Janus Aspen Series - Capital Appreciation Portfolio - Service Class, Strong Opportunity Fund II, Inc., Oppenheimer VAF - Global Securities Fund and Morgan Stanley Mid Cap Growth Portfolio. 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. 22 22 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. (2) POLICY CHARGES (a) Deductions from Premium The Company deducts a charge for state premium taxes of 3.5% on all premiums received to cover the payment of premium taxes. Additionally, the Company deducts a front-end sales load not to exceed 5.5% from each premium payment received. The Company may at its sole discretion reduce this sales loading. (b) Cost of Insurance A cost of insurance charge is assessed monthly against each contract by liquidating units. The amount of the charge is based upon age, sex, rate class and net amount at risk (death benefit less total contract value). (c) Administrative Charges The Company deducts a monthly administrative expense charge to recover policy maintenance, accounting, record keeping and other administrative expenses and is assessed against each contract by liquidating units. Currently, this charge is $5.00 per month in all policy years. On a guaranteed basis this charge is $10.00 per month in all policy years. (3) ASSET CHARGES For corporate flexible premium contracts, the Company deducts a charge from the contract to cover mortality and expense risk charges related to operations. This charge is guaranteed not to exceed an annual rate of .75%. Currently, this rate is .40% during the first through fourth policy years, .25% during the fifth through twentieth policy years, and .10% thereafter. For the reduced fee tier corporate flexible premium contracts the current rate is .10% for all policy years. Nationwide may reduce or eliminate certain charges, where the size or nature of the group results in savings in sales, underwriting, administrative or other costs, to Nationwide. These charges may be reduced in certain group, sponsored arrangements or special exchange programs made available by Nationwide. (Continued) 23 23 NATIONWIDE VL SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS, CONTINUED (4) POLICY LOANS (NET OF REPAYMENTS) Contract provisions allow contract owners to borrow 90% of a policy's cash surrender value. Interest is charged on the outstanding loan and is due and payable in advance on the policy anniversary. At the time the loan is granted, the amount of the loan is transferred from the Account to the Company's general account as collateral for the outstanding loan. Collateral amounts in the general account are credited with the stated rate of interest in effect at the time the loan is made, subject to a guaranteed minimum rate. Interest credited is paid by the Company's general account to the Account. Loan repayments result in a transfer of collateral including interest back to the Account. There were no policy loans in the current year. (5) 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. 24 24 (6) COMPONENTS OF CONTRACT OWNERS' EQUITY The following is a summary of contract owners' equity at June 30, 2000:
PERIOD Contract owners' equity represented by: UNITS UNIT VALUE RETURN(b) --------- ----------- --------- The BEST of AMERICA(R) America's FUTURE Life Series(SM): American Century VP - American Century VP Income & Growth..................... 346,363 $ 12.320813 $ 4,267,474 (4)% American Century VP - American Century VP International....................... 343,607 14.970741 5,144,051 (6)% American Century VP - American Century VP Value............................... 78,422 8.869662 695,577 (4)% The Dreyfus Socially Responsible Growth Fund, Inc............................... 33,077 14.778256 488,820 2% Dreyfus Stock Index Fund..........................2,694,550 13.150463 35,434,580 (1)% Dreyfus VIF - Appreciation Portfolio.............. 195,232 12.555931 2,451,320 3% Dreyfus VIP - European Equity Portfolio...................... 2,148 13.207837 28,370 2% Federated Insurance Series - Quality Bond Fund II.......................... 44,144 10.131263 447,234 3% Fidelity VIP - Equity-Income Portfolio - Service Class................................. 236,987 10.174924 2,411,325 (3)% Fidelity VIP - Growth Portfolio - Service Class................................. 910,558 17.274959 15,729,852 5% Fidelity VIP - High Income Portfolio - Service Class................................. 235,156 9.193344 2,161,870 (5)% Fidelity VIP - Overseas Portfolio - Service Class................................. 291,200 12.785880 3,723,248 (5)% Fidelity VIP-II - Contrafund Portfolio - Service Class................................. 416,155 13.802556 5,744,003 (2)% Fidelity VIP-III - Growth Opportunities Portfolio - Service Class..................... 197,046 11.216967 2,210,258 (4)% Janus Aspen Series - Global Technology Portfolio................... 32,762 9.793559 320,857 (2)%(a) Janus Aspen Series - International Growth Portfolio................ 4,914 10.121953 49,739 1%(a) Morgan Stanley - Emerging Markets Debt Portfolio............... 61,253 9.266834 567,621 6% Nationwide SAT - Balanced Fund................... 94,375 10.305507 972,582 2% Nationwide SAT - Capital Appreciation Fund..................... 214,512 11.687690 2,507,150 1% Nationwide SAT - Equity Income Fund.............. 22,568 12.681211 286,190 2% Nationwide SAT - Nationwide Global 50 Fund..................... 67,747 12.596704 853,389 (1)%
(Continued) 25 25 NATIONWIDE VL SEPARATE ACCOUNT-C NOTES TO FINANCIAL STATEMENTS, CONTINUED
PERIOD UNITS UNIT VALUE RETURN(b) --------- ----------- --------- Nationwide SAT - Government Bond Fund........... 814,693 10.768906 8,773,352 4% Nationwide SAT - High Income Bond Fund.......... 142,533 10.153681 1,447,235 (2)% Nationwide SAT - Mid Cap Index Fund............. 81,246 12.775205 1,037,934 8% Nationwide SAT - Money Market Fund.............. 2,043,769 11.058539 22,601,099 3% Nationwide SAT - Multi Sector Bond Fund......... 243,286 10.336948 2,514,835 2% Nationwide SAT - Small Cap Growth Fund.......... 43,778 21.463633 939,635 5% Initial funding by depositor (see note 1a)...... 100,000 21.463633 2,146,363 5% Nationwide SAT - Small Cap Value Fund........... 105,726 12.104291 1,279,738 11% Nationwide SAT - Small Company Fund............. 325,780 13.954146 4,545,982 7% Nationwide SAT - Strategic Growth Fund.......... 55,055 20.297188 1,117,462 5% Nationwide SAT - Strategic Value Fund........... 12,984 8.642631 112,216 (1)% Nationwide SAT - Total Return Fund.............. 16,643 11.146280 185,508 3% Neuberger & Berman AMT - Guardian Portfolio........................... 55,377 11.067843 612,904 4% Neuberger & Berman AMT - Mid-Cap Growth Portfolio..................... 78,414 19.491297 1,528,391 13% Neuberger & Berman AMT - Partners Portfolio........................... 126,555 9.911052 1,254,293 (1)% Oppenheimer - Aggressive Growth Fund/VA.................... 214,632 21.426999 4,598,920 21% Oppenheimer - Capital Appreciation Fund/VA................. 182,060 16.423157 2,990,000 9% Oppenheimer - Main Street Growth & Income Fund/VA.......... 47,368 10.835167 513,240 0% Van Eck WIT - Worldwide Emerging Markets Fund.............. 60,246 11.026051 664,275 (13)% Van Eck WIT - Worldwide Hard Assets Fund................... 50,106 8.552782 428,546 4% Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio............. 31,965 9.800269 313,266 14% Warburg Pincus Trust - Global Post - Venture Capital Portfolio...... 62,643 15.467356 968,922 5% Warburg Pincus Trust - International Equity Portfolio............... 29,432 12.380758 364,390 (9)% Warburg Pincus Trust - Value Portfolio.......... 22,920 10.242976 234,769 (3)%
26 26
PERIOD UNITS UNIT VALUE RETURN(b) --------- ----------- --------- The BEST of AMERICA(R) America's FUTURE Life Series(SM) Reduced Fee Tier: American Century VP - American Century VP Income & Growth.................... 290,354 11.101352 3,223,322 (4)% American Century VP - American Century VP International...................... 61,417 15.024102 922,735 (6)% Dreyfus Stock Index Fund......................... 325,655 11.359939 3,699,421 (1)% Fidelity VIP - Growth Portfolio - Service Class................................. 501,080 13.179722 6,604,095 5% Janus Aspen Series - International Growth Portfolio................ 19,438 10.134840 197,001 1%(a) Nationwide SAT - Government Bond Fund............ 739,786 10.284568 7,608,379 4% Nationwide SAT - Money Market Fund............... 197,921 10.644566 2,106,783 3% Nationwide SAT - Multi Sector Bond Fund.......... 5,259 10.416467 54,780 2% Neuberger & Berman AMT - Guardian Portfolio............................ 32,870 11.364157 373,540 4% Oppenheimer - Aggressive Growth Fund/VA..................... 69,127 20.117568 1,390,667 21% Oppenheimer - Capital Appreciation Fund/VA.................. 119,850 14.470324 1,734,268 9% ======== ========= ------------ $175,583,776 ============
(a) These returns were computed for the period 05/01/00 through 06/30/00. (b) The period return does not include contract charges satisfied by surrending units. 27 27 NATIONWIDE LIFE AND ANNUITY 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 -----END PRIVACY-ENHANCED MESSAGE-----