-----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, L/Oun2yw+PPqm5k6cJmAh2JK8ghiwnGSmp/OgLfO9Te/XdmtYBa9q9xH9eSJkeFB HwYO/AMAhCsL0ZzJ1Xvv5A== 0001021408-03-006968.txt : 20030505 0001021408-03-006968.hdr.sgml : 20030505 20030502174852 ACCESSION NUMBER: 0001021408-03-006968 CONFORMED SUBMISSION TYPE: N-30D/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021231 FILED AS OF DATE: 20030505 EFFECTIVENESS DATE: 20030505 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONWIDE VLI SEPARATE ACCOUNT 2 CENTRAL INDEX KEY: 0000820914 IRS NUMBER: 314156830 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-05311 FILM NUMBER: 03680612 BUSINESS ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 BUSINESS PHONE: 614-249-7111 MAIL ADDRESS: STREET 1: NATIONWIDE LIFE INSURANCE CO STREET 2: ONE NATIONWIDE PLAZA CITY: COLUMBUS STATE: OH ZIP: 43215 N-30D/A 1 dn30da.txt VLI SEPARATE ACCOUNT 2 (811-5311) Nationwide(R) VLI Separate Account-2 December 31, 2002 [LOGO] The BEST of AMERICA(R) Life Planning Series(R) 2002 Annual Report - -------------------------------------------------------------------------------- [LOGO] Nationwide(R) Nationwide Life Insurance Company Home Office: Columbus, Ohio VLOB-12-12/02 [LOGO] Nationwide(R) NATIONWIDE LIFE INSURANCE COMPANY ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220 [PHOTO] PRESIDENT'S MESSAGE We are pleased to bring you the 2002 annual report of the Nationwide VLI Separate Account-2. Despite coming off a third straight year of disappointment in the equity markets, we believe an optimistic outlook is not unfounded. To state the obvious, time should be in our favor; unbroken bear markets of this duration are highly unusual from a historical perspective. Equity valuations have come down mainly as a result of price contraction rather than earnings contraction. This is highly significant as earnings prospects brighten and comparisons to prior periods become easier. Corporate scandals took their toll in 2002, but the general absence of new revelations of wrongdoing is encouraging. The recent pullback in the U.S. dollar bodes well for export businesses and the improved profit picture this portends. With respect to international tensions and continued anxiety over unspecified terrorist threats, unfolding events and the passage of time are slowly eroding even that uncertain overhang. Finally, there are substantial assets on the sidelines waiting for the "right time" to reenter the equity markets. We don't know the date that will mark the "right time," but we do know that eventually the bull will resume his run. Despite tough market conditions and a tepid economic environment, Nationwide Life moves into 2003 a financially strong and viable company. We continue to invest in the development of new investment products and improved service delivery to help you meet your financial planning and retirement savings needs. We sincerely appreciate your business and look forward to a long and mutually rewarding association with you, our valued customer. /s/ Joseph J. Gasper --------------------------- Joseph J. Gasper, President February 24, 2003 3 How to Read the Annual Report This 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 from 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 VLI Separate Account-2. Rules and regulations of the U.S. Securities and Exchange Commission and recognized conventions of accounting principles generally accepted in the United States of America prescribe the format and content of this report. We also invite you to call our service center at 1-800-547-7548 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 Owners' Equity This statement begins on page 5 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 fair value as of the close of business on December 31, 2002. The mutual funds are listed in alphabetical order. The fair 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 fair 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 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 fund shares redeemed by contract owners but not yet deducted from Total investments. The Accounts receivable and Accounts payable balances are aggregated and presented as a net amount. Total assets minus Accounts payable equals Contract owners' equity. A summary of Contract owners' equity by fund series may be found on page 40. This summary also includes certain performance measures for each fund series for the periods indicated. Statements of Operations, 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 Statements of Operations show income and expenses to the variable account from Investment activity for reinvested dividends and capital gain distributions paid by the underlying mutual funds; and expenses included are the mortality, expense and, if applicable, an administration charge, which are assessed through the daily unit value calculation and that represent an expense to the variable account and its contract owners. This statement 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 fair value of the underlying fund shares. The Statements of Changes in Contract Owners' Equity includes Investment activity for income and expenses shown on the Statements of Operations. In addition, the Equity transactions section of this statement illustrates the receipt of purchase payments, as new contracts are sold or additional payments are made to existing contracts. Also presented are deductions from the variable account when the contract owners withdraw money, as well as any contract level charges. 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. The Changes in Units section illustrates the number of units purchased and redeemed for each mutual fund sub-account during the period reported. Notes to Financial Statements, beginning on page 32, provide further disclosures about the variable account and its underlying contract provisions. 4 ================================================================================ NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY December 31, 2002 Assets: Investments at fair value: American Century VP Balanced Fund - Class I (ACVPBal) 801,943 shares (cost $5,656,504) ............................................ $ 4,659,290 American Century VP Capital Appreciation Fund - Class I (ACVPCapAp) 1,945,532 shares (cost $17,492,259) ......................................... 11,498,096 American Century VP Income & Growth Fund - Class I (ACVPIncGr) 587,665 shares (cost $3,353,202) ............................................ 3,032,352 American Century VP International Fund - Class I (ACVPInt) 2,010,543 shares (cost $13,709,549) ......................................... 10,474,929 American Century VP Ultra Fund - Class I (ACVPUltra) 11,715 shares (cost $89,451) ................................................ 86,105 American Century VP Value Fund - Class I (ACVPVal) 1,779,551 shares (cost $12,300,551) ......................................... 10,890,849 Credit Suisse Trust - Global Post-Venture Capital Portfolio (CSGPVen) 198,879 shares (cost $1,295,745) ............................................. 1,272,826 Credit Suisse Trust - International Focus Portfolio (CSIntEq) 755,859 shares (cost $6,311,048) ............................................ 5,049,135 Credit Suisse Trust - Small Cap Growth Portfolio (CSSmCapGr) 1,120,598 shares (cost $13,021,120) ......................................... 10,410,356 Dreyfus GVIT Mid Cap Index Fund - Class I (DryMidCapIx) 348,652 shares (cost $4,251,187) ............................................ 3,842,150 Dreyfus IP - Small Cap Stock Index Portfolio - Service Class (DrySmCapIxS) 11,559 shares (cost $110,904) ............................................... 110,732 Dreyfus Socially Responsible Growth Fund, Inc.- Initial Shares (DrySRGro) 449,004 shares (cost $15,832,492) ........................................... 8,486,176 Dreyfus Stock Index Fund (DryStkIx) 2,840,236 shares (cost $92,131,093) ......................................... 63,820,103 Dreyfus VIF - Appreciation Portfolio - Initial Shares (DryVIFApp) 199,210 shares (cost $6,969,155) ............................................ 5,733,255 Dreyfus VIF - Growth and Income Portfolio - Initial Shares (DryVIFGrInc) 128,054 shares (cost $2,964,332) ............................................ 2,056,554 Federated Quality Bond Fund II - Primary Shares (FedQualBd) 107,824 shares (cost $1,223,432) ............................................ 1,262,614 Fidelity(R) VIP - Equity-Income Portfolio: Initial Class (FidVIPEI) 3,290,117 shares (cost $78,587,366) ......................................... 59,748,530
(Continued) 5 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, Continued Fidelity(R) VIP - Growth Portfolio: Initial Class (FidVIPGr) 3,228,024 shares (cost $144,518,289) ........................................ $ 75,664,882 Fidelity(R) VIP - High Income Portfolio: Initial Class (FidVIPHI) 3,491,745 shares (cost $21,254,491) ......................................... 20,706,048 Fidelity(R) VIP - Overseas Portfolio: Initial Class (FidVIPOv) 1,131,045 shares (cost $14,026,304) ......................................... 12,418,870 Fidelity(R) VIP II - Asset Manager: Growth Portfolio: Service Class (FidVIPAM) 1,752,540 shares (cost $28,225,173) ......................................... 22,344,890 Fidelity(R) VIP II - Contrafund Portfolio: Initial Class (FidVIPCon) 2,435,055 shares (cost $58,919,728) ......................................... 44,074,497 Fidelity(R) VIP III - Growth Opportunities Portfolio: Initial Class (FidVIPGrOP) 259,186 shares (cost $4,687,107) ............................................ 3,035,073 Fidelity(R) VIP III - Value Strategies Portfolio: Service Class (FidVIPValStS) 12,126 shares (cost $100,369) ............................................... 95,795 Gartmore GVIT Emerging Markets Fund - Class I (GVITEmMrkts) 45,721 shares (cost $265,471) ............................................... 273,866 Gartmore GVIT Global Financial Services Fund - Class I (GVITGlFin) 7,198 shares (cost $65,092) ................................................. 64,493 Gartmore GVIT Global Health Sciences Fund - Class I (GVITGlHlth) 19,013 shares (cost $160,513) ............................................... 155,718 Gartmore GVIT Global Technology and Communications Fund - Class I (GVITGlTech) 109,247 shares (cost $297,708) .............................................. 261,099 Gartmore GVIT Global Utilities Fund - Class I (GVITGlUtl) 4,838 shares (cost $35,931) ................................................. 35,898 Gartmore GVIT Government Bond Fund - Class I (GVITGvtBd) 1,822,582 shares (cost $22,381,883) ......................................... 22,381,304 Gartmore GVIT Growth Fund - Class I (GVITGrowth) 1,783,486 shares (cost $35,389,535) ......................................... 13,411,811 Gartmore GVIT ID Aggressive Fund (GVITIDAgg) 17,970 shares (cost $151,843) ............................................... 146,454 Gartmore GVIT ID Conservative Fund (GVITIDCon) 32,305 shares (cost $318,902) ............................................... 317,558 Gartmore GVIT ID Moderate Fund (GVITIDMod) 60,817 shares (cost $555,107) ............................................... 543,706 Gartmore GVIT ID Moderately Aggressive Fund (GVITIDModAgg) 111,036 shares (cost $983,549) .............................................. 942,693 Gartmore GVIT ID Moderately Conservative Fund (GVITIDModCon) 28,515 shares (cost $268,756) ............................................... 268,898 Gartmore GVIT International Growth Fund - Class I (GVITIntGro) 11,815 shares (cost $54,981) ................................................ 55,060 Gartmore GVIT Money Market Fund - Class I (GVITMyMkt) 46,792,122 shares (cost $46,792,122) ...................................... 46,792,122
6 Gartmore GVIT Nationwide(R) Leaders Fund - Class I (GVITLead) 12,186 shares (cost $119,650) ............................................... $ 115,036 Gartmore GVIT Small Cap Growth Fund - Class I (GVITSmCapGr) 130,327 shares (cost $1,258,761) ............................................ 1,258,963 Gartmore GVIT Small Cap Value Fund - Class I (GVITSmCapVal) 1,257,909 shares (cost $10,440,968) ......................................... 9,270,789 Gartmore GVIT Small Company Fund - Class I (GVITSmComp) 1,303,370 shares (cost $25,439,211) ......................................... 20,084,934 Gartmore GVIT Total Return Fund - Class I (GVITTotRt) 7,447,693 shares (cost $108,778,380) ........................................ 60,326,315 Gartmore GVIT U.S.Growth Leaders Fund - Class I (GVITUSGro) 10,703 shares (cost $86,695) ................................................ 80,916 Janus AS - Capital Appreciation Portfolio - Service Shares (JanCapAp) 130,734 shares (cost $2,547,268) ............................................ 2,253,862 Janus AS - Global Technology Portfolio - Service Shares (JanGITech) 365,018 shares (cost $1,330,443) ............................................ 879,694 Janus AS - International Growth Portfolio - Service Shares (JanIntGro) 86,262 shares (cost $1,406,454) ............................................. 1,481,988 MAS GVIT (formerly Nationwide(R) SAT) Multi Sector Bond Fund - Class I (MGVITMultiSec) 145,329 shares (cost $1,321,403) ............................ 1,348,649 Neuberger Berman AMT - Balanced Portfolio (NBAMTBal) 5,895 shares (cost $53,981) ................................................. 46,042 Neuberger Berman AMT - Growth Portfolio (NBAMTGro) 1,639,255 shares (cost $18,156,068) ......................................... 12,999,290 Neuberger Berman AMT - Guardian Portfolio (NBAMTGuard) 150,081 shares (cost $1,965,607) ............................................ 1,605,870 Neuberger Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat) 499,371 shares (cost $6,637,610) ............................................ 6,741,510 Neuberger Berman AMT - Partners Portfolio (NBAMTPart) 1,469,553 shares (cost $23,439,914) ......................................... 16,752,910 Oppenheimer Aggressive Growth Fund/VA - Initial Class (OppAggGro) 39,629 shares (cost $1,194,611) ............................................. 1,158,359 Oppenheimer Bond Fund/VA - Initial Class (OppBdFd) 1,238,497 shares (cost $13,676,927) ......................................... 14,007,406 Oppenheimer Capital Appreciation Fund/VA - Initial Class (OppCapAp) 436,418 shares (cost $14,624,748) ........................................... 11,617,436 Oppenheimer Global Securities Fund/VA - Initial Class (OppGlSec) 1,354,751 shares (cost $34,505,876) ......................................... 23,979,084 Oppenheimer Main Street Growth & Income Fund/VA - Initial Class (OppMSGrInc) 65,281 shares (cost $1,100,078) ............................................. 1,000,105 Oppenheimer Multiple Strategies Fund/VA - Initial Class (OppMultStr) 931,561 shares (cost $14,862,945) ........................................... 12,259,340 Strong GVIT Mid Cap Growth Fund - Class I (SGVITMdCpGr) 161,396 shares (cost $1,224,382) ............................................ 1,178,193
(Continued) 7 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, Continued Strong Opportunity Fund II, Inc.(StOpp2) 2,062,101 shares (cost $43,507,913) ......................................... $ 28,601,343 Strong VIF - Strong Discovery Fund II (StDisc2) 632,953 shares (cost $6,163,997) ............................................ 5,747,211 Strong VIF - Strong International Stock Fund II (StIntStk2) 301,378 shares (cost $1,593,079) ............................................ 1,600,317 Turner GVIT Growth Focus Fund - Class I (TurnGVITGro) 100,299 shares (cost $231,268) .............................................. 208,621 Van Eck WIT - Worldwide Bond Fund (VEWrldBd) 401,121 shares (cost $4,460,312) ............................................ 4,596,845 Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt) 482,795 shares (cost $3,574,826) ............................................ 3,809,250 Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs) 433,470 shares (cost $4,301,133) ............................................ 4,464,742 Van Kampen UIF - Emerging Markets Debt Portfolio (VKEmMkt) 207,695 shares (cost $1,505,361) ............................................ 1,468,407 Van Kampen UIF - U.S. Real Estate Portfolio (VKUSRealEst) 853,177 shares (cost $10,535,739) ........................................... 9,666,498 ------------ Total Investments ........................................................ 727,034,712 Accounts Receivable ............................................................... -- ------------ Total Assets ............................................................. 727,034,712 Accounts Payable ..................................................................... 11,376 ------------ Contract Owners' Equity (note 7) ..................................................... $727,023,336 ============
See accompanying notes to financial statements. ================================================================================ 8 ================================================================================ NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF OPERATIONS Year Ended December 31, 2002
Investment activity: Total ACVPBal ACVPCapAp ACVPIncGr ------------- ---------- ---------- ---------- Reinvested dividends ............................ $ 11,224,371 129,042 -- 40,246 Mortality and expense risk charges (note 3) ..... (6,274,145) (35,990) (106,678) (25,965) ------------- ---------- ---------- ---------- Net investment income (loss) ................. 4,950,226 93,052 (106,678) 14,281 ------------- ---------- ---------- ---------- Proceeds from mutual fund shares sold ........... 602,027,151 915,970 2,827,633 2,395,242 Cost of mutual fund shares sold ................. (681,710,216) (1,208,619) (7,819,371) (3,385,790) ------------- ---------- ---------- ---------- Realized gain (loss) on investments .......... (79,683,065) (292,649) (4,991,738) (990,548) Change in unrealized gain (loss) on investments ............................... (101,227,231) (326,154) 1,749,350 154,381 ------------- ---------- ---------- ---------- Net gain (loss) on investments ............... (180,910,296) (618,803) (3,242,388) (836,167) ------------- ---------- ---------- ---------- Reinvested capital gains ........................ 3,918,828 -- -- -- ------------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ....... $(172,041,242) (525,751) (3,349,066) (821,886) ============= ========== ========== ========== Investment activity: ACVPInt ACVPUltra ACVPVal CSGPVen ----------- --------- ----------- ---------- Reinvested dividends ............................ 99,034 197 104,776 -- Mortality and expense risk charges (note 3) ..... (92,274) (193) (88,516) (7,766) ----------- --------- ----------- ---------- Net investment income (loss) ................. 6,760 4 16,260 (7,766) ----------- --------- ----------- ---------- Proceeds from mutual fund shares sold ........... 6,025,094 675,095 16,069,044 1,310,207 Cost of mutual fund shares sold ................. (10,012,861) (683,848) (16,462,825) (2,143,494) ----------- --------- ----------- ---------- Realized gain (loss) on investments .......... (3,987,767) (8,753) (393,781) (833,287) Change in unrealized gain (loss) on investments ............................... 1,109,135 (3,345) (2,130,437) 398,641 ----------- --------- ----------- ---------- Net gain (loss) on investments ............... (2,878,632) (12,098) (2,524,218) (434,646) ----------- -------- ----------- ---------- Reinvested capital gains ........................ -- -- 677,932 -- ----------- --------- ----------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ....... (2,871,872) (12,094) (1,830,026) (442,412) =========== ========= =========== ==========
Investment activity: CSIntEq CSSmCapGr DryMidCapIx DryEuroEq ----------- ----------- ----------- --------- Reinvested dividends ............................ $ -- -- 14,978 -- Mortality and expense risk charges (note 3) ..... (44,098) (96,995) (30,539) (420) ----------- ----------- ---------- -------- Net investment income (loss) ................. (44,098) (96,995) (15,561) (420) ----------- ----------- ---------- -------- Proceeds from mutual fund shares sold ........... 9,327,428 11,367,712 7,708,678 847,954 Cost of mutual fund shares sold ................. (9,158,449) (17,523,948) (8,080,966) (866,141) ----------- ----------- ---------- -------- Realized gain (loss) on investments .......... 168,979 (6,156,236) (372,288) (18,187) Change in unrealized gain (loss) on investments ............................... (1,412,977) 434,119 (455,988) (639) ----------- ----------- ---------- -------- Net gain (loss) on investments ............... (1,243,998) (5,722,117) (828,276) (18,826) ----------- ----------- ---------- -------- Reinvested capital gains ........................ -- -- 33,555 -- ----------- ----------- ---------- -------- Net increase (decrease) in contract owners' equity resulting from operations ....... $(1,288,096) (5,819,112) (810,282) (19,246) =========== =========== ========== ======== Investment activity: DrySmCapIxS DrySRGro DryStkIx DryVIFApp ----------- ---------- ----------- ---------- Reinvested dividends ............................ 151 22,787 999,637 71,007 Mortality and expense risk charges (note 3) ..... (143) (80,117) (540,105) (47,867) -------- ---------- ----------- ---------- Net investment income (loss) ................. 8 (57,330) 459,532 23,140 -------- ---------- ----------- ---------- Proceeds from mutual fund shares sold ........... 516,724 2,049,958 10,909,443 2,281,401 Cost of mutual fund shares sold ................. (523,482) (3,119,466) (11,850,321) (2,852,698) -------- ---------- ----------- ---------- Realized gain (loss) on investments .......... (6,758) (1,069,508) (940,878) (571,297) Change in unrealized gain (loss) on investments ............................... (172) (2,683,067) (19,311,189) (691,267) -------- ---------- ----------- ---------- Net gain (loss) on investments ............... (6,930) (3,752,575) (20,252,067) (1,262,564) -------- ---------- ----------- ---------- Reinvested capital gains ........................ -- -- -- -- -------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ....... (6,922) (3,809,905) (19,792,535) (1,239,424) ======== ========== =========== ==========
(Continued) 9 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF OPERATIONS, Continued Year Ended December 31, 2002
Investment activity: DryVIFGrInc FedQualBd FidVIPEI FidVIPGr ----------- --------- ----------- ----------- Reinvested dividends ............................. $ 14,860 -- 1,208,679 246,550 Mortality and expense risk charges (note 3) ...... (16,207) (3,977) (537,891) (744,059) --------- -------- ----------- ----------- Net investment income (loss) .................. (1,347) (3,977) 670,788 (497,509) --------- -------- ----------- ----------- Proceeds from mutual fund shares sold ............ 421,769 644,784 9,823,910 11,165,923 Cost of mutual fund shares sold .................. (553,233) (627,123) (11,656,529) (17,641,401) --------- -------- ----------- ----------- Realized gain (loss) on investments ........... (131,464) 17,661 (1,832,619) (6,475,478) Change in unrealized gain (loss) on investments ................................ (602,115) 39,181 (13,879,079) (28,601,357) --------- -------- ----------- ----------- Net gain (loss) on investments ................ (733,579) 56,842 (15,711,698) (35,076,835) --------- -------- ----------- ----------- Reinvested capital gains ......................... -- -- 1,645,146 -- --------- -------- ----------- ----------- Net increase (decrease) in contract owners' equity resulting from operations ........ $(734,926) 52,865 (13,395,764) (35,574,344) ========= ======== =========== =========== Investment activity: FidVIPHI FidVIPOv FidVIPAM FidVIPCon ----------- ----------- ---------- ---------- Reinvested dividends ............................. 1,734,540 122,990 972,983 410,513 Mortality and expense risk charges (note 3) ...... (123,743) (121,341) (202,126) (366,518) ----------- ----------- ---------- ---------- Net investment income (loss) .................. 1,610,797 1,649 770,857 43,995 ----------- ----------- ---------- ---------- Proceeds from mutual fund shares sold ............ 9,869,641 17,038,725 2,868,341 7,324,604 Cost of mutual fund shares sold .................. (16,104,845) (27,046,026) (3,477,339) (8,496,079) ----------- ----------- ---------- ---------- Realized gain (loss) on investments ........... (6,235,204) (10,007,301) (608,998) (1,171,475) Change in unrealized gain (loss) on investments ................................ 5,128,915 6,676,168 (2,677,633) (3,976,205) ----------- ----------- ---------- ---------- Net gain (loss) on investments ................ (1,106,289) (3,331,133) (3,286,631) (5,147,680) ----------- ----------- ---------- ---------- Reinvested capital gains ......................... -- -- -- -- ----------- ----------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ........ 504,508 (3,329,484) (2,515,774) (5,103,685) =========== =========== ========== ==========
Investment activity: FidVIPGrOP FidVIPValStS GVITEmMrkts GVITGIFin ---------- ------------ ----------- --------- Reinvested dividends ............................. $ 38,177 -- 597 26 Mortality and expense risk charges (note 3) ...... (24,743) (316) (3,838) (145) -------- -------- ----------- ------- Net investment income (loss) .................. 13,434 (316) (3,241) (119) -------- -------- ----------- ------- Proceeds from mutual fund shares sold ............ 601,596 406,712 19,418,119 40,488 Cost of mutual fund shares sold .................. (989,550) (416,259) (19,408,629) (40,375) -------- -------- ----------- ------- Realized gain (loss) on investments ........... (387,954) (9,547) 9,490 113 Change in unrealized gain (loss) on investments ................................ (537,034) (4,574) (24,239) (599) -------- -------- ----------- ------- Net gain (loss) on investments ................ (924,988) (14,121) (14,749) (486) -------- -------- ----------- ------- Reinvested capital gains ......................... -- -- -- -- -------- -------- ----------- ------- Net increase (decrease) in contract owners' equity resulting from operations ........ $(911,554) (14,437) (17,990) (605) ========= ======== =========== ======= Investment activity: GVITGIHlth GVITGITech GVITGlUtl GVITGvtBd ---------- ---------- --------- ----------- Reinvested dividends ............................. -- 1,788 96 908,336 Mortality and expense risk charges (note 3) ...... (397) (2,238) (63) (167,720) ------- ---------- -------- ----------- Net investment income (loss) .................. (397) (450) 33 740,616 ------- ---------- -------- ----------- Proceeds from mutual fund shares sold ............ 93,707 4,145,126 9,712 37,174,051 Cost of mutual fund shares sold .................. (94,318) (4,333,546) (10,008) (36,407,644) ------- ---------- -------- ----------- Realized gain (loss) on investments ........... (611) (188,420) (296) 766,407 Change in unrealized gain (loss) on investments ................................ (4,795) (19,032) (33) 254,202 ------- ---------- -------- ----------- Net gain (loss) on investments ................ (5,406) (207,452) (329) 1,020,609 ------- ---------- -------- ----------- Reinvested capital gains ......................... -- -- -- 177,046 ------- ---------- -------- ----------- Net increase (decrease) in contract owners' equity resulting from operations ........ (5,803) (207,902) (296) 1,938,271 ======= ========== ======= ===========
10 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF OPERATIONS, Continued Year Ended December 31, 2002
Investment activity: GVITGrowth GVITIDAgg GVITIDCon GVITIDMod ----------- ---------- --------- --------- Reinvested dividends .......................... $ -- 1,340 4,440 4,684 Mortality and expense risk charges (note 3) ... (115,653) (965) (731) (1,253) ----------- ---------- ------ ------- Net investment income (loss) ............... (115,653) 375 3,709 3,431 ----------- ---------- ------ ------- Proceeds from mutual fund shares sold ......... 1,208,840 1,114,097 4,761 35,931 Cost of mutual fund shares sold ............... (3,575,493) (1,117,860) (4,845) (39,287) ----------- ---------- ------ ------- Realized gain (loss) on investments ........ (2,366,653) (3,763) (84) (3,356) Change in unrealized gain (loss) on investments ............................. (3,021,176) (5,389) (1,344) (11,401) ----------- ---------- ------ ------- Net gain (loss) on investments ............. (5,387,829) (9,152) (1,428) (14,757) ----------- ---------- ------ ------- Reinvested capital gains ...................... -- 22 154 436 ----------- ---------- ------ ------- Net increase (decrease) in contract owners' equity resulting from operations ........ $(5,503,482) (8,755) 2,435 (10,890) =========== ========== ====== ======= Investment activity: GVITIDModAgg GVITIDModCon GVITIntGro GVITMyMkt ------------ ------------ ---------- ------------ Reinvested dividends .......................... 7,309 3,155 -- 618,185 Mortality and expense risk charges (note 3) ... (3,289) (781) (333) (383,850) -------- ---------- -------- ------------ Net investment income (loss) ............... 4,020 2,374 (333) 234,335 -------- ---------- -------- ------------ Proceeds from mutual fund shares sold ......... 219,780 1,141,624 274,737 155,367,677 Cost of mutual fund shares sold ............... (249,821) (1,145,957) (279,666) (155,367,677) -------- ---------- -------- ------------ Realized gain (loss) on investments ........ (30,041) (4,333) (4,929) -- Change in unrealized gain (loss) on investments ............................. (40,857) 142 (759) -- -------- ---------- -------- ------------ Net gain (loss) on investments ............. (70,898) (4,191) (5,688) -- -------- ---------- -------- ------------ Reinvested capital gains ...................... 1,303 402 -- -- -------- ---------- -------- ------------ Net increase (decrease) in contract owners' equity resulting from operations ........ (65,575) (1,415) (6,021) 234,335 ======== ========== ======== ============
Investment activity: GVITLead GVITSmCapGr GVITSmCapVal GVITSmComp --------- ----------- ------------ ----------- Reinvested dividends .......................... $ 679 -- 1,062 -- Mortality and expense risk charges (note 3) ... (455) (9,005) (93,187) (166,099) --------- ---------- ----------- ----------- Net investment income (loss) ............... 224 (9,005) (92,125) (166,099) --------- ---------- ----------- ----------- Proceeds from mutual fund shares sold ......... 131,535 2,824,398 22,556,068 8,458,813 Cost of mutual fund shares sold ............... (141,430) (3,363,506) (26,224,110) (10,890,206) --------- ---------- ----------- ----------- Realized gain (loss) on investments ........ (9,895) (539,108) (3,668,042) (2,431,393) Change in unrealized gain (loss) on investments ............................. (4,614) (10,392) (1,169,384) (2,049,393) --------- ---------- ----------- ----------- Net gain (loss) on investments ............. (14,509) (549,500) (4,837,426) (4,480,786) --------- ---------- ----------- ----------- Reinvested capital gains ...................... -- -- 308,760 -- --------- ---------- ----------- ----------- Net increase (decrease) in contract owners' equity resulting from operations ........ $ (14,285) (558,505) (4,620,791) (4,646,885) ========= ========== =========== =========== Investment activity: GVITTotRt GVITUSGro JanCapAp JanGITech ----------- --------- ---------- ---------- Reinvested dividends .......................... 586,269 -- 7,399 -- Mortality and expense risk charges (note 3) ... (523,210) (119) (17,694) (8,887) ----------- ------- ---------- ---------- Net investment income (loss) ............... 63,059 (119) (10,295) (8,887) ----------- ------- ---------- ---------- Proceeds from mutual fund shares sold ......... 4,850,756 14,868 1,664,649 1,622,565 Cost of mutual fund shares sold ............... (7,523,937) (15,131) (2,082,123) (1,892,120) ----------- ------- ---------- ---------- Realized gain (loss) on investments ........ (2,673,181) (263) (417,474) (269,555) Change in unrealized gain (loss) on investments ............................. (11,054,460) (5,779) (28,278) (427,636) ----------- ------- ---------- ---------- Net gain (loss) on investments ............. (13,727,641) (6,042) (445,752) (697,191) ----------- ------- ---------- ---------- Reinvested capital gains ...................... -- -- -- -- ----------- ------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ........ (13,664,582) (6,161) (456,047) (706,078) =========== ======= ========== ==========
(Continued) 11 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF OPERATIONS, Continued Year Ended December 31, 2002
Investment activity: JanIntGro MGVITMultiSec NBAMTBal NBAMTGro ------------ ------------- -------- ----------- Reinvested dividends ............................ $ 11,471 44,645 1,209 -- Mortality and expense risk charges (note 3) ..... (16,107) (5,749) (346) (127,464) ------------ ---------- ------ ----------- Net investment income (loss) ................. (4,636) 38,896 863 (127,464) ------------ ---------- ------ ----------- Proceeds from mutual fund shares sold ........... 22,746,381 2,246,256 2,045 10,571,945 Cost of mutual fund shares sold ................. (23,154,096) (2,253,457) (2,388) (15,486,936) ------------ ---------- ------ ----------- Realized gain (loss) on investments .......... (407,715) (7,201) (343) (4,914,991) Change in unrealized gain (loss) on investments ............................... (16,485) 27,886 (8,064) (1,658,364) ------------ ---------- ------ ----------- Net gain (loss) on investments ............... (424,200) 20,685 (8,407) (6,573,355) ------------ ---------- ------ ----------- Reinvested capital gains ........................ -- -- -- -- ------------ ---------- ------ ----------- Net increase (decrease) in contract owners' equity resulting from operations ....... $ (428,836) 59,581 (7,544) (6,700,819) ============ ========== ====== =========== Investment activity: NBAMTGuard NBAMTLMat NBAMTPart OppAggGro ---------- ---------- ---------- ---------- Reinvested dividends ............................ 16,715 287,017 107,193 9,567 Mortality and expense risk charges (note 3) ..... (14,696) (48,631) (139,794) (10,711) ---------- ---------- ---------- ---------- Net investment income (loss) ................. 2,019 238,386 (32,601) (1,144) ---------- ---------- ---------- ---------- Proceeds from mutual fund shares sold ........... 1,749,166 3,116,450 4,461,872 5,757,349 Cost of mutual fund shares sold ................. (2,313,860) (3,087,101) (6,079,454) (6,347,648) ---------- ---------- ---------- ---------- Realized gain (loss) on investments .......... (564,694) 29,349 (1,617,582) (590,299) Change in unrealized gain (loss) on investments ............................... (142,270) (464) (3,978,892) 91,747 ---------- ---------- ---------- ---------- Net gain (loss) on investments ............... (706,964) 28,885 (5,596,474) (498,552) ---------- ---------- ---------- ---------- Reinvested capital gains ........................ -- -- -- -- ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ....... (704,945) 267,271 (5,629,075) (499,696) ========== ========== ========== ==========
Investment activity: OppBdFd OppCapAp OppGlSec OppMSGrInc ----------- ----------- ----------- ---------- Reinvested dividends ............................ $ 983,059 90,717 160,367 6,068 Mortality and expense risk charges (note 3) ..... (100,620) (106,222) (222,185) (6,295) ----------- ----------- ----------- -------- Net investment income (loss) ................. 882,439 (15,505) (61,818) (227) ----------- ----------- ----------- -------- Proceeds from mutual fund shares sold ........... 3,540,279 9,035,702 12,554,932 601,997 Cost of mutual fund shares sold ................. (3,890,965) (15,787,560) (13,334,521) (746,829) ----------- ----------- ----------- -------- Realized gain (loss) on investments .......... (350,686) (6,751,858) (779,589) (144,832) Change in unrealized gain (loss) on investments ............................... 535,188 2,058,407 (6,436,152) (63,259) ----------- ----------- ----------- -------- Net gain (loss) on investments ............... 184,502 (4,693,451) (7,215,741) (208,091) ----------- ----------- ----------- -------- Reinvested capital gains ........................ -- -- -- -- ----------- ----------- ----------- -------- Net increase (decrease) in contract owners' equity resulting from operations ....... $ 1,066,941 (4,708,956) (7,277,559) (208,318) =========== =========== =========== ======== Investment activity: OppMultStr SGVITMdCpGr StOpp2 StDisc2 ---------- ----------- ----------- ---------- Reinvested dividends ............................ 482,824 -- 134,661 -- Mortality and expense risk charges (note 3) ..... (104,868) (8,153) (281,682) (52,203) ---------- ----------- ----------- ---------- Net investment income (loss) ................. 377,956 (8,153) (147,021) (52,203) ---------- ----------- ----------- ---------- Proceeds from mutual fund shares sold ........... 1,923,628 9,929,998 6,815,816 2,521,635 Cost of mutual fund shares sold ................. (2,389,427) (10,327,868) (8,983,726) (2,784,109) ---------- ----------- ----------- ---------- Realized gain (loss) on investments .......... (465,799) (397,870) (2,167,910) (262,474) Change in unrealized gain (loss) on investments ............................... (1,738,579) (56,058) (9,845,255) (594,143) ---------- ----------- ----------- ---------- Net gain (loss) on investments ............... (2,204,378) (453,928) (12,013,165) (856,617) ---------- ----------- ----------- ---------- Reinvested capital gains ........................ 200,398 -- 644,398 -- ---------- ----------- ----------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ....... (1,626,024) (462,081) (11,515,788) (908,820) ========== =========== =========== ==========
12 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF OPERATIONS, Continued Year Ended December 31, 2002
Investment activity: StIntStk2 TurnGVITGro VEWrldBd VEWrldEMkt ------------ ----------- ----------- ----------- Reinvested dividends .......................... $ 78,570 -- -- 7,400 Mortality and expense risk charges (note 3) ... (14,801) (1,483) (26,814) (30,885) ------------ ---------- ----------- ----------- Net investment income (loss) ............... 63,769 (1,483) (26,814) (23,485) ------------ ---------- ----------- ----------- Proceeds from mutual fund shares sold ......... 17,308,084 4,410,212 26,600,658 31,531,644 Cost of mutual fund shares sold ............... (18,102,623) (4,528,531) (26,107,130) (31,914,730) ------------ ---------- ----------- ----------- Realized gain (loss) on investments ........ (794,539) (118,319) 493,528 (383,086) Change in unrealized gain (loss) on investments ............................. 177,975 (25,065) 184,996 111,183 ------------ ---------- ----------- ----------- Net gain (loss) on investments ............. (616,564) (143,384) 678,524 (271,903) ------------ ---------- ----------- ----------- Reinvested capital gains ...................... -- -- -- -- ------------ ---------- ----------- ----------- Net increase (decrease) in contract owners' equity resulting from operations ........................... $ (552,795) (144,867) 651,710 (295,388) ============ ========== =========== =========== Investment activity: VEWrldHAs VKEmMkt VKUSRealEst ----------- ---------- ----------- Reinvested dividends .......................... 26,316 94,838 305,222 Mortality and expense risk charges (note 3) ... (29,414) (9,626) (76,897) ----------- ---------- ---------- Net investment income (loss) ............... (3,098) 85,212 228,325 ----------- ---------- ---------- Proceeds from mutual fund shares sold ......... 15,276,547 4,115,133 7,443,532 Cost of mutual fund shares sold ............... (15,676,332) (4,125,475) (7,377,098) ----------- ---------- ---------- Realized gain (loss) on investments ........ (399,785) (10,342) 66,434 Change in unrealized gain (loss) on investments ............................. 176,398 14,386 (813,789) ----------- ---------- ---------- Net gain (loss) on investments ............. (223,387) 4,044 (747,355) ----------- ---------- ---------- Reinvested capital gains ...................... -- -- 229,276 ----------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ........................... (226,485) 89,256 (289,754) =========== ========== ==========
See accompanying notes to financial statements. ================================================================================ 13 ================================================================================ NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY Years Ended December 31, 2002 and 2001
Total ACVPBal ----------------------------- --------------------- Investment activity: 2002 2001 2002 2001 ------------- ------------- --------- --------- Net investment income (loss) ................. $ 4,950,226 7,051,683 93,052 109,967 Realized gain (loss) on investments .......... (79,683,065) (95,706,913) (292,649) (149,134) Change in unrealized gain (loss) on investments ............................ (101,227,231) (102,443,273) (326,154) (374,866) Reinvested capital gains ..................... 3,918,828 59,973,994 -- 177,314 ------------- ------------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations ............................. (172,041,242) (131,124,509) (525,751) (236,719) ------------- ------------- --------- --------- Equity transactions: Purchase payments received from contract owners (note 6) .................. 89,852,157 103,755,686 655,414 537,559 Transfers between funds ...................... -- -- (19,192) (18,553) Surrenders (note 6) .......................... (68,413,303) (47,591,030) (261,495) (274,881) Death benefits (note 4) ...................... (2,878,265) (3,310,640) (12,043) (19,851) Policy loans (net of repayments) (note 5) .... (1,274,925) (8,284,301) (29,194) (7,043) Deductions for surrender charges (note 2d) ... (3,761,910) (4,259,124) (14,379) (24,600) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ......................... (47,105,562) (46,802,944) (278,409) (264,440) Asset charges (note 3): MSP contracts ............................. (404,175) (487,482) (4,131) (4,877) LSFP contracts ............................ (354,416) (374,976) (1,525) (1,571) ------------- ------------- --------- --------- Net equity transactions ................ (34,340,399) (7,354,811) 35,046 (78,257) ------------- ------------- --------- --------- Net change in contract owners' equity ........... (206,381,641) (138,479,320) (490,705) (314,976) Contract owners' equity beginning of period ..... 933,404,977 1,071,884,297 5,149,974 5,464,950 ------------- ------------- --------- --------- Contract owners' equity end of period ........... $ 727,023,336 933,404,977 4,659,269 5,149,974 ============= ============= ========= ========= CHANGES IN UNITS: Beginning units .............................. 44,510,163 44,184,383 275,968 280,165 ------------- ------------- --------- --------- Units purchased .............................. 7,977,095 8,105,043 42,350 32,188 Units redeemed ............................... (9,292,490) (7,779,263) (41,028) (36,385) ------------- ------------- --------- --------- Ending units ................................. 43,194,768 44,510,163 277,290 275,968 ============= ============= ========= ========= ACVPCapAp ACVPIncGr ------------------------ ---------------------- Investment activity: 2002 2001 2002 2001 ---------- ----------- ---------- --------- Net investment income (loss) ................. (106,678) (157,084) 14,281 4,371 Realized gain (loss) on investments .......... (4,991,738) (9,558,196) (990,548) (367,434) Change in unrealized gain (loss) on investments ............................ 1,749,350 (5,254,647) 154,381 (36,896) Reinvested capital gains ..................... -- 7,598,012 -- -- ---------- ----------- ---------- --------- Net increase (decrease) in contract owners' equity resulting from operations ............................. (3,349,066) (7,371,915) (821,886) (399,959) ---------- ----------- ---------- --------- Equity transactions: Purchase payments received from contract owners (note 6) .................. 1,491,221 1,922,090 405,497 463,372 Transfers between funds ...................... (1,137,628) (3,106,083) (269,573) (30,266) Surrenders (note 6) .......................... (823,146) (994,264) (341,450) (128,813) Death benefits (note 4) ...................... (65,672) (26,610) -- -- Policy loans (net of repayments) (note 5) .... (9,534) (266,547) (16,672) (177) Deductions for surrender charges (note 2d) ... (45,263) (88,981) (18,776) (11,528) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ......................... (853,298) (917,212) (177,476) (171,662) Asset charges (note 3): MSP contracts ............................. (5,655) (8,721) (2,339) (2,384) LSFP contracts ............................ (3,142) (4,237) (1,896) (2,139) ---------- ----------- ---------- --------- Net equity transactions ................ (1,452,117) (3,490,565) (422,685) 116,403 ---------- ----------- ---------- --------- Net change in contract owners' equity ........... (4,801,183) (10,862,480) (1,244,571) (283,556) Contract owners' equity beginning of period ..... 16,299,104 27,161,584 4,276,892 4,560,448 ---------- ----------- ---------- --------- Contract owners' equity end of period ........... 11,497,921 16,299,104 3,032,321 4,276,892 ========== =========== ========== ========= CHANGES IN UNITS: Beginning units .............................. 945,180 1,120,543 416,289 403,910 ---------- ----------- ---------- --------- Units purchased .............................. 116,117 114,186 56,087 56,641 Units redeemed ............................... (222,060) (289,549) (104,314) (44,262) ---------- ----------- ---------- --------- Ending units ................................. 839,237 945,180 368,062 416,289 ========== =========== ========== =========
14 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
ACVPInt ACVPUltra ------------------------ -------------- Investment activity: 2002 2001 2002 2001 ----------- ---------- ------- ---- Net investment income (loss) ................. $ 6,760 (115,508) 4 -- Realized gain (loss) on investments .......... (3,987,767) (6,339,097) (8,753) -- Change in unrealized gain (loss) on investments ............................ 1,109,135 (1,840,599) (3,345) -- Reinvested capital gains ..................... -- 1,789,528 -- -- ----------- ---------- ------- --- Net increase (decrease) in contract owners' equity resulting from operations ............................. (2,871,872) (6,505,676) (12,094) -- ----------- ---------- ------- --- Equity transactions: Purchase payments received from contract owners (note 6) .................. 1,372,078 1,563,930 5,058 -- Transfers between funds ...................... (973,520) (1,610,440) 124,302 -- Surrenders (note 6) .......................... (877,609) (411,527) (26,672) -- Death benefits (note 4) ...................... (3,330) (16,220) -- -- Policy loans (net of repayments) (note 5) .... (127,897) (123,790) -- -- Deductions for surrender charges (note 2d) ... (48,258) (36,829) (1,467) -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ......................... (616,258) (668,820) (2,866) -- Asset charges (note 3): MSP contracts ............................. (4,054) (7,104) (25) -- LSFP contracts ............................ (7,145) (10,541) (136) -- ----------- ---------- ------- --- Net equity transactions ................ (1,285,993) (1,321,341) 98,194 -- ----------- ---------- ------- --- Net change in contract owners' equity ........... (4,157,865) (7,827,017) 86,100 -- Contract owners' equity beginning of period .................................... 14,630,605 22,457,622 -- -- ----------- ---------- ------- --- Contract owners' equity end of period ........... $10,472,740 14,630,605 86,100 -- =========== ========== ======= === CHANGES IN UNITS: Beginning units .............................. 950,787 1,027,636 -- -- ----------- ---------- ------- --- Units purchased .............................. 102,635 97,198 11,128 -- Units redeemed ............................... (192,984) (174,047) (368) -- ----------- ---------- ------- --- Ending units ................................. 860,438 950,787 10,760 -- =========== ========== ======= === ACVPVal CSGPVen ----------------------- ---------------------- Investment activity: 2002 2001 2002 2001 ---------- ---------- --------- ---------- Net investment income (loss) ................. 16,260 22,955 (7,766) (15,488) Realized gain (loss) on investments .......... (393,781) 272,565 (833,287) (1,234,999) Change in unrealized gain (loss) on investments ............................ (2,130,437) 549,875 398,641 471,352 Reinvested capital gains ..................... 677,932 -- -- -- ---------- ---------- --------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ............................. (1,830,026) 845,395 (442,412) (779,135) ---------- ---------- --------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) .................. 1,048,504 582,884 123,418 175,113 Transfers between funds ...................... 1,006,877 4,815,841 70,901 (290,162) Surrenders (note 6) .......................... (962,466) (424,152) (231,349) (95,856) Death benefits (note 4) ...................... (6,357) (32,416) -- (2,390) Policy loans (net of repayments) (note 5) .... (99,706) 258,803 98,610 36,298 Deductions for surrender charges (note 2d) ... (52,924) (37,959) (12,721) (8,579) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ......................... (502,028) (320,328) (56,152) (90,037) Asset charges (note 3): MSP contracts ............................. (7,417) (5,886) (394) (952) LSFP contracts ............................ (7,578) (4,940) (512) (980) ---------- ---------- --------- ---------- Net equity transactions ................ 416,905 4,831,847 (8,199) (277,545) ---------- ---------- --------- ---------- Net change in contract owners' equity ........... (1,413,121) 5,677,242 (450,611) (1,056,680) Contract owners' equity beginning of period .................................... 12,303,843 6,626,601 1,723,423 2,780,103 ---------- ---------- --------- ---------- Contract owners' equity end of period ........... 10,890,722 12,303,843 1,272,812 1,723,423 ========== ========== ========= ========== CHANGES IN UNITS: Beginning units .............................. 721,884 435,109 154,238 176,075 ---------- ---------- --------- ---------- Units purchased .............................. 134,241 340,692 51,890 20,442 Units redeemed ............................... (120,528) (53,917) (31,794) (42,279) ---------- ---------- --------- ---------- Ending units ................................. 735,597 721,884 174,334 154,238 ========== ========== ========= ==========
(Continued) 15 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
CSIntEq CSSmCapGr ------------------------ ------------------------ Investment activity: 2002 2001 2002 2001 ----------- ---------- ---------- ----------- Net investment income (loss) .................... $ (44,098) (56,285) (96,995) (138,697) Realized gain (loss) on investments ............. 168,979 (3,960,661) (6,156,236) (11,329,224) Change in unrealized gain (loss) on investments .................................. (1,412,977) 2,099,268 434,119 7,104,902 Reinvested capital gains ........................ -- -- -- -- ----------- ---------- ---------- ----------- Net increase (decrease) in contract owners' equity resulting from operations .......... (1,288,096) (1,917,678) (5,819,112) (4,363,019) ----------- ---------- ---------- ----------- Equity transactions: Purchase payments received from contract owners (note 6) ..................................... 716,930 1,047,183 1,742,231 2,168,671 Transfers between funds ......................... (401,475) (704,029) (1,876,740) (3,347,967) Surrenders (note 6) ............................. (411,253) (368,264) (1,026,223) (805,855) Death benefits (note 4) ......................... (17,485) (7,251) (16,016) (86,645) Policy loans (net of repayments) (note 5) ....... 39,755 (66,856) 41,216 (1,349) Deductions for surrender charges (note 2d) ...... (22,614) (32,958) (56,430) (72,120) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ..... (329,478) (361,742) (794,609) (922,151) Asset charges (note 3): MSP contracts ................................ (3,900) (5,243) (6,478) (9,810) LSFP contracts ............................... (4,265) (4,614) (6,974) (8,705) ----------- ---------- ---------- ----------- Net equity transactions ................... (433,785) (503,774) (2,000,023) (3,085,931) ----------- ---------- ---------- ----------- Net change in contract owners' equity .............. (1,721,881) (2,421,452) (7,819,135) (7,448,950) Contract owners' equity beginning of period ........ 6,770,955 9,192,407 18,229,025 25,677,975 ----------- ---------- ---------- ----------- Contract owners' equity end of period .............. $ 5,049,074 6,770,955 10,409,890 18,229,025 =========== ========== ========== =========== CHANGES IN UNITS: Beginning units ................................. 679,600 711,440 1,084,722 1,272,956 ----------- ---------- ---------- ----------- Units purchased ................................. 89,777 110,791 144,963 137,229 Units redeemed .................................. (132,055) (142,631) (297,014) (325,463) ----------- ---------- ---------- ----------- Ending units .................................... 637,322 679,600 932,671 1,084,722 =========== ========== ========== =========== DryMidCapIx DryEuroEq --------------------- ----------------- Investment activity: 2002 2001 2002 2001 --------- --------- ------- ------- Net investment income (loss) .................... (15,561) (4,071) (420) (736) Realized gain (loss) on investments ............. (372,288) (255,703) (18,187) 2,841 Change in unrealized gain (loss) on investments .................................. (455,988) 115,892 (639) (878) Reinvested capital gains ........................ 33,555 25,776 -- -- --------- --------- ------- ------- Net increase (decrease) in contract owners' equity resulting from operations .......... (810,282) (118,106) (19,246) 1,227 --------- --------- ------- ------- Equity transactions: Purchase payments received from contract owners (note 6) ..................................... 351,967 190,528 9,123 12,657 Transfers between funds ......................... 1,472,727 1,669,130 (69,351) (35,400) Surrenders (note 6) ............................. (278,698) (44,557) (161) (1,022) Death benefits (note 4) ......................... (1,826) (7,174) -- -- Policy loans (net of repayments) (note 5) ....... (9,157) (24,551) 117 (300) Deductions for surrender charges (note 2d) ...... (15,325) (3,988) (9) (91) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ..... (202,705) (116,906) (2,401) (6,296) Asset charges (note 3): MSP contracts ................................ (3,190) (1,953) -- (46) LSFP contracts ............................... (1,934) (578) 1 (3) --------- --------- ------- ------- Net equity transactions ................... 1,311,859 1,659,951 (62,681) (30,501) --------- --------- ------- ------- Net change in contract owners' equity .............. 501,577 1,541,845 (81,927) (29,274) Contract owners' equity beginning of period ........ 3,340,634 1,798,789 81,927 111,201 --------- --------- ------- ------- Contract owners' equity end of period .............. 3,842,211 3,340,634 -- 81,927 ========= ========= ======= ======= CHANGES IN UNITS: Beginning units ................................. 325,991 171,893 12,374 11,957 --------- --------- ------- ------- Units purchased ................................. 165,799 173,353 1,810 6,654 Units redeemed .................................. (45,969) (19,255) (14,184) (6,237) --------- --------- ------- ------- Ending units .................................... 445,821 325,991 -- 12,374 ========= ========= ======= =======
16 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
DrySmCapIxS DrySRGro --------------- ----------------------- Investment activity: 2002 2001 2002 2001 -------- ---- ---------- ---------- Net investment income (loss) .................... $ 8 -- (57,330) (109,204) Realized gain (loss) on investments ............. (6,758) -- (1,069,508) (369,365) Change in unrealized gain (loss) on investments ............................... (172) -- (2,683,067) (3,939,932) Reinvested capital gains ........................ -- -- -- -- -------- ---- ---------- ---------- Net increase (decrease) in contract owners'equity resulting from operations ................................ (6,922) -- (3,809,905) (4,418,501) -------- ---- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) ..................... 35,798 -- 1,704,096 2,143,427 Transfers between funds ......................... 96,048 -- (1,126,297) (1,098,629) Surrenders (note 6) ............................. (12,292) -- (924,256) (891,852) Death benefits (note 4) ......................... -- -- (43,454) (23,643) Policy loans (net of repayments) (note 5) ....... 314 -- (20,791) (372,581) Deductions for surrender charges (note 2d) ...... (676) -- (50,823) (79,816) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ............................ (1,475) -- (847,059) (968,162) Asset charges (note 3): MSP contracts ................................ (62) -- (4,062) (6,768) LSFP contracts ............................... (3) -- (3,757) (5,485) -------- ---- ---------- ---------- Net equity transactions ................... 117,652 -- (1,316,403) (1,303,509) -------- ---- ---------- ---------- Net change in contract owners' equity .............. 110,730 -- (5,126,308) (5,722,010) Contract owners' equity beginning of period ........ -- -- 13,612,330 19,334,340 -------- ---- ---------- ---------- Contract owners' equity end of period .............. $110,730 -- 8,486,022 13,612,330 ======== ==== ========== ========== CHANGES IN UNITS: Beginning units ................................. -- -- 573,971 629,857 -------- ---- ---------- ---------- Units purchased ................................. 14,878 -- 87,917 83,928 Units redeemed .................................. (407) -- (156,667) (139,814) -------- ---- ---------- ---------- Ending units .................................... 14,471 -- 505,221 573,971 ======== ==== ========== ========== DryStkIx DryVIFApp ------------------------- ---------------------- Investment activity: 2002 2001 2002 2001 ----------- ----------- ---------- --------- Net investment income (loss) .................... 459,532 332,575 23,140 8,180 Realized gain (loss) on investments ............. (940,878) 9,935 (571,297) (93,890) Change in unrealized gain (loss) on investments ............................... (19,311,189) (13,687,873) (691,267) (617,829) Reinvested capital gains ........................ -- 467,526 -- -- ----------- ----------- ---------- --------- Net increase (decrease) in contract owners' equity resulting from operations .......... (19,792,535) (12,877,837) (1,239,424) (703,539) ----------- ----------- ---------- --------- Equity transactions: Purchase payments received from contract owners (note 6) ..................... 8,299,700 10,603,012 608,427 775,908 Transfers between funds ......................... (4,186,916) 1,384,992 308,413 107,630 Surrenders (note 6) ............................. (4,818,700) (4,146,012) (292,680) (233,967) Death benefits (note 4) ......................... (104,303) (431,669) (12,604) (642) Policy loans (net of repayments) (note 5) ....... 60,616 (379,222) (52,352) (93,305) Deductions for surrender charges (note 2d) ...... (264,971) (371,045) (16,094) (20,939) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ............................ (4,116,114) (4,015,363) (311,263) (325,049) Asset charges (note 3): MSP contracts ................................ (28,802) (40,868) (2,257) (2,606) LSFP contracts ............................... (51,509) (56,827) (5,846) (6,023) ----------- ----------- ---------- --------- Net equity transactions ................... (5,210,999) 2,546,998 223,744 201,007 ----------- ----------- ---------- --------- Net change in contract owners' equity .............. (25,003,534) (10,330,839) (1,015,680) (502,532) Contract owners' equity beginning of period ........ 88,822,689 99,153,528 6,748,865 7,251,397 ----------- ----------- ---------- --------- Contract owners' equity end of period .............. 63,819,155 88,822,689 5,733,185 6,748,865 =========== =========== ========== ========= CHANGES IN UNITS: Beginning units ................................. 3,551,969 3,460,355 520,418 503,469 ----------- ----------- ---------- --------- Units purchased ................................. 427,978 525,479 82,728 85,636 Units redeemed .................................. (662,623) (433,865) (68,347) (68,687) ----------- ----------- ---------- --------- Ending units .................................... 3,317,324 3,551,969 534,799 520,418 =========== =========== ========== =========
(Continued) 17 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
DryVIFGrInc FedQualBd ---------------------- ---------------- Investment activity: 2002 2001 2002 2001 ---------- --------- --------- ---- Net investment income (loss) ................. $ (1,347) (4,914) (3,977) -- Realized gain (loss) on investments .......... (131,464) (7,978) 17,661 -- Change in unrealized gain (loss) on investments ............................ (602,115) (258,534) 39,181 -- Reinvested capital gains ..................... -- 45,863 -- -- ---------- --------- --------- --- Net increase (decrease) in contract owners' equity resulting from operations ............................. (734,926) (225,563) 52,865 -- ---------- --------- --------- --- Equity transactions: Purchase payments received from contract owners (note 6) .................. 229,396 293,388 34,259 -- Transfers between funds ...................... (67,132) 103,859 1,229,802 -- Surrenders (note 6) .......................... (99,306) (217,868) (24,623) -- Death benefits (note 4) ...................... (7,828) (317) -- -- Policy loans (net of repayments) (note 5) .... (3,538) (34,479) 2,487 -- Deductions for surrender charges (note 2d) ... (5,461) (19,498) (1,354) --- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ......................... (138,671) (138,857) (30,500) -- Asset charges (note 3): MSP contracts ............................. (2,335) (3,439) (175) -- LSFP contracts ............................ (1,850) (2,419) (146) -- ---------- --------- --------- --- Net equity transactions ................ (96,725) (19,630) 1,209,750 -- ---------- --------- --------- --- Net change in contract owners' equity ........... (831,651) (245,193) 1,262,615 -- Contract owners' equity beginning of period .................................... 2,888,177 3,133,370 -- -- ---------- --------- --------- --- Contract owners' equity end of period ........... $2,056,526 2,888,177 1,262,615 -- ========== ========= ========= === CHANGES IN UNITS: Beginning units .............................. 217,273 220,323 -- -- ---------- --------- --------- --- Units purchased .............................. 26,066 34,265 122,888 -- Units redeemed ............................... (34,757) (37,315) (5,210) -- ---------- --------- --------- --- Ending units ................................. 208,582 217,273 117,678 -- ========== ========= ========= === FidVIPEI FidVIPGr ------------------------ -------------------------- Investment activity: 2002 2001 2002 2001 ----------- ---------- ----------- ----------- Net investment income (loss) ................. 670,788 720,232 (497,509) (929,341) Realized gain (loss) on investments .......... (1,832,619) 55,848 (6,475,478) (4,273,764) Change in unrealized gain (loss) on investments ............................ (13,879,079) (9,359,446) (28,601,357) (33,423,042) Reinvested capital gains ..................... 1,645,146 3,782,228 -- 10,107,480 ----------- ---------- ----------- ----------- Net increase (decrease) in contract owners' equity resulting from operations ............................. (13,395,764) (4,801,138) (35,574,344) (28,518,667) ----------- ---------- ----------- ----------- Equity transactions: Purchase payments received from contract owners (note 6) .................. 6,296,828 7,191,894 10,702,893 13,007,093 Transfers between funds ...................... (1,326,155) 1,446,582 (5,909,456) (8,018,175) Surrenders (note 6) .......................... (4,013,742) (3,544,539) (6,576,671) (5,631,639) Death benefits (note 4) ...................... (512,295) (225,553) (303,488) (304,251) Policy loans (net of repayments) (note 5) .... (325,234) (805,494) 53,735 (1,189,965) Deductions for surrender charges (note 2d) ... (220,708) (317,216) (361,638) (504,000) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ......................... (3,720,031) (3,630,378) (5,684,040) (6,302,082) Asset charges (note 3): MSP contracts ............................. (33,789) (39,422) (29,451) (46,539) LSFP contracts ............................ (22,051) (22,617) (26,493) (31,178) ----------- ---------- ----------- ----------- Net equity transactions ................ (3,877,177) 53,257 (8,134,609) (9,020,736) ----------- ---------- ----------- ----------- Net change in contract owners' equity ........... (17,272,941) (4,747,881) (43,708,953) (37,539,403) Contract owners' equity beginning of period .................................... 77,024,402 81,772,283 119,372,389 156,911,792 ----------- ---------- ----------- ----------- Contract owners' equity end of period ........... 59,751,461 77,024,402 75,663,436 119,372,389 =========== ========== =========== =========== CHANGES IN UNITS: Beginning units .............................. 2,285,562 2,276,206 3,226,113 3,462,746 ---------- ---------- ----------- ----------- Units purchased .............................. 239,009 280,800 408,396 354,493 Units redeemed ............................... (378,277) (271,444) (711,656) (591,126) ---------- ---------- ----------- ----------- Ending units ................................. 2,146,294 2,285,562 2,922,853 3,226,113 ========== ========== =========== ===========
18 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
FidVIPHI FidVIPOv ------------------------ ------------------------ Investment activity: 2002 2001 2002 2001 ----------- ---------- ----------- ---------- Net investment income (loss)................. $ 1,610,797 2,247,137 1,649 938,954 Realized gain (loss) on investments.......... (6,235,204) (4,705,027) (10,007,301) (2,848,287) Change in unrealized gain (loss) on investments............................ 5,128,915 (27,924) 6,676,168 (4,902,933) Reinvested capital gains..................... -- -- -- 1,740,234 ----------- ---------- ----------- ---------- Net increase (decrease) in contract owners' equity resulting from operations............................. 504,508 (2,485,814) (3,329,484) (5,072,032) ----------- ---------- ----------- ---------- Equity transactions: Purchase payments received from contract owners (note 6).................. 1,686,100 2,363,311 1,803,973 2,097,571 Transfers between funds...................... 3,942,862 603,870 (1,055,151) (1,327,939) Surrenders (note 6).......................... (973,008) (908,331) (1,283,924) (1,006,514) Death benefits (note 4)...................... (26,392) (56,917) (62,516) (101,240) Policy loans (net of repayments) (note 5).... (25,575) (38,801) (63,624) (85,860) Deductions for surrender charges (note 2d)... (53,504) (81,290) (70,600) (90,077) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (970,512) (953,764) (781,093) (832,760) Asset charges (note 3): MSP contracts............................. (12,568) (14,190) (4,418) (5,818) LSFP contracts............................ (8,051) (8,038) (5,086) (6,533) ----------- ---------- ----------- ---------- Net equity transactions................ 3,559,352 905,850 (1,522,439) (1,359,170) ----------- ---------- ----------- ---------- Net change in contract owners' equity........... 4,063,860 (1,579,964) (4,851,923) (6,431,202) Contract owners' equity beginning of period.................................... 16,642,189 18,222,153 17,277,545 23,708,747 ----------- ---------- ----------- ---------- Contract owners' equity end of period .......... $20,706,049 16,642,189 12,425,622 17,277,545 =========== ========== =========== ========== CHANGES IN UNITS: Beginning units.............................. 1,017,739 972,429 1,067,775 1,146,574 ----------- ---------- ----------- ---------- Units purchased.............................. 325,331 170,800 127,166 129,935 Units redeemed............................... (136,840) (125,490) (226,360) (208,734) ----------- ---------- ----------- ---------- Ending units................................. 1,206,230 1,017,739 968,581 1,067,775 =========== ========== =========== ========== FidVIPAM FidVIPCon ----------------------- ------------------------ Investment activity: 2002 2001 2002 2001 ---------- ---------- ---------- ----------- Net investment income (loss)................. 770,857 946,367 43,995 43,587 Realized gain (loss) on investments.......... (608,998) (197,074) (1,171,475) (197,444) Change in unrealized gain (loss) on investments............................ (2,677,633) (2,656,974) (3,976,205) (9,738,153) Reinvested capital gains..................... -- 442,307 -- 1,612,865 ---------- ---------- ---------- ----------- Net increase (decrease) in contract owners' equity resulting from operations............................. (2,515,774) (1,465,374) (5,103,685) (8,279,145) ---------- ---------- ---------- ----------- Equity transactions: Purchase payments received from contract owners (note 6).................. 1,668,475 1,952,879 5,127,914 5,795,249 Transfers between funds...................... (727,846) (924,825) (2,166,207) (3,613,770) Surrenders (note 6).......................... (1,466,623) (1,051,266) (3,296,014) (2,048,334) Death benefits (note 4)...................... (24,631) (24,025) (105,306) (148,293) Policy loans (net of repayments) (note 5).... 38,282 (139,132) (145,249) (442,265) Deductions for surrender charges (note 2d)... (80,647) (94,082) (181,241) (183,314) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (1,151,383) (1,110,503) (2,602,068) (2,534,714) Asset charges (note 3): MSP contracts............................. (8,709) (10,168) (22,569) (28,667) LSFP contracts............................ (3,308) (3,155) (21,973) (22,235) ---------- ---------- ---------- ----------- Net equity transactions................ (1,756,390) (1,404,277) (3,412,713) (3,226,343) ---------- ---------- ---------- ----------- Net change in contract owners' equity........... (4,272,164) (2,869,651) (8,516,398) (11,505,488) Contract owners' equity beginning of period.................................... 26,615,885 29,485,536 52,593,790 64,099,278 ---------- ---------- ---------- ----------- Contract owners' equity end of period .......... 22,343,721 26,615,885 44,077,392 52,593,790 ========== ========== ========== =========== CHANGES IN UNITS: Beginning units.............................. 1,094,419 1,150,637 2,539,821 2,697,733 ---------- ---------- ---------- ----------- Units purchased.............................. 94,132 95,668 270,926 300,960 Units redeemed............................... (174,616) (151,886) (446,360) (458,872) ---------- ---------- ---------- ----------- Ending units................................. 1,013,935 1,094,419 2,364,387 2,539,821 ========== ========== ========== ===========
(Continued) 19 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
FidVIPGrOp FidVIPValStS GVITEmMrkts GVITGIFin ------------------------ -------------- ------------------ ------------- Investment activity: 2002 2001 2002 2001 2002 2001 2002 2001 ----------- ---------- ------- ---- -------- ------- ------ ---- Net investment income (loss)................. $ 13,434 (13,820) (316) -- (3,241) 75 (119) -- Realized gain (loss) on investments.......... (387,954) (634,796) (9,547) -- 9,490 (24,506) 113 -- Change in unrealized gain (loss) on investments............................ (537,034) (126,832) (4,574) -- (24,239) 33,345 (599) -- Reinvested capital gains..................... -- -- -- -- -- -- -- -- ----------- ---------- ------- ---- -------- ------- ------ ---- Net increase (decrease) in contract owners' equity resulting from operations............................. (911,554) (775,448) (14,437) -- (17,990) 8,914 (605) -- ----------- ---------- ------- ---- -------- ------- ------ ---- Equity transactions: Purchase payments received from contract owners (note 6).................. 560,969 793,729 6,353 -- 30,715 5,169 368 -- Transfers between funds...................... (326,009) (496,644) 107,296 -- (75,118) 413,987 66,328 -- Surrenders (note 6).......................... (159,570) (258,771) -- -- (25,350) (2,213) -- -- Death benefits (note 4)...................... (4,698) (237) -- -- (1,829) -- -- -- Policy loans (net of repayments) (note 5).... (22,423) (39,475) (930) -- (40,241) 198 (972) -- Deductions for surrender charges (note 2d)... (8,774) (23,158) -- -- (1,394) (198) -- -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (218,076) (236,312) (2,342) -- (21,884) (7,221) (625) -- Asset charges (note 3): MSP contracts............................. (1,654) (2,717) (137) -- (498) (295) (3) -- LSFP contracts............................ (2,257) (2,557) (5) -- (121) (7) -- -- ----------- ---------- ------- ---- -------- ------- ------ ---- Net equity transactions................ (182,492) (266,142) 110,235 -- (135,720) 409,420 65,096 -- ----------- ---------- ------- ---- -------- ------- ------ ---- Net change in contract owners' equity........ (1,094,046) (1,041,590) 95,798 -- (153,710) 418,334 64,491 -- Contract owners' equity beginning of period................................. 4,129,080 5,170,670 -- -- 427,577 9,243 -- -- ----------- ---------- ------- ---- -------- ------- ------ ---- Contract owners' equity end of period........ $ 3,035,034 4,129,080 95,798 -- 273,867 427,577 64,491 -- =========== ========== ======= ==== ======== ======= ====== ==== CHANGES IN UNITS: Beginning units.............................. 420,111 446,913 -- -- 52,012 1,063 -- -- ----------- ---------- ------- ---- -------- ------- ------ ---- Units purchased.............................. 72,484 82,751 13,276 -- 17,002 52,164 7,678 -- Units redeemed............................... (94,587) (109,553) (450) -- (29,306) (1,215) (183) -- ----------- ---------- ------- ---- -------- ------- ------ ---- Ending units................................. 398,008 420,111 12,826 -- 39,708 52,012 7,495 -- =========== ========== ======= ==== ======== ======= ====== ====
20 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
GVITGIHlth GVITGITech GVITGlUlt GVITGvtBd --------------- ------------------- ------------- ----------------------- Investment activity: 2002 2001 2002 2001 2002 2001 2002 2001 -------- ---- -------- -------- ------ ---- ---------- ---------- Net investment income (loss)................. $ (397) -- (450) (2,955) 33 -- 740,616 682,702 Realized gain (loss) on investments.......... (611) -- (188,420) (424,935) (296) -- 766,407 690,349 Change in unrealized gain (loss) on investments............................ (4,795) -- (19,032) 215,502 (33) -- 254,202 (567,238) Reinvested capital gains..................... -- -- -- -- -- -- 177,046 25,190 -------- ---- -------- -------- ------ ---- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations............................. (5,803) -- (207,902) (212,388) (296) -- 1,938,271 831,003 -------- ---- -------- -------- ------ ---- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6).................. 17,502 -- 45,556 75,992 75 -- 1,267,894 1,047,084 Transfers between funds...................... 155,423 -- 130,870 172,244 36,282 -- 5,104,395 6,329,761 Surrenders (note 6).......................... -- -- (56,652) (3,862) -- -- (3,160,509) (497,629) Death benefits (note 4)...................... -- -- -- -- -- -- (56,328) (69,873) Policy loans (net of repayments) (note 5).... (8,938) -- 26,213 (58,752) -- -- (301,152) (1,259,271) Deductions for surrender charges (note 2d)... -- -- (3,115) (346) -- -- (173,790) (44,535) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (2,414) -- (23,648) (29,002) (152) -- (897,183) (627,606) Asset charges (note 3): MSP contracts............................. (12) -- (196) (90) (5) -- (18,203) (13,288) LSFP contracts............................ (50) -- (9) -- -- -- (8,831) (8,008) -------- ---- -------- -------- ------ ---- ---------- ---------- Net equity transactions................ 161,511 -- 119,019 156,184 36,200 -- 1,756,293 4,856,635 -------- ---- -------- -------- ------ ---- ---------- ---------- Net change in contract owners' equity........... 155,708 -- (88,883) (56,204) 35,904 -- 3,694,564 5,687,638 Contract owners' equity beginning of period.................................... -- -- 349,973 406,177 -- -- 18,686,828 12,999,190 -------- ---- -------- -------- ------ ---- ---------- ---------- Contract owners' equity end of period........... $155,708 -- 261,090 349,973 35,904 -- 22,381,392 18,686,828 ======== ==== ======== ======== ====== ==== ========== ========== CHANGES IN UNITS: Beginning units.............................. -- -- 102,616 67,646 -- -- 940,162 696,947 -------- ---- -------- -------- ------ ---- ---------- ---------- Units purchased.............................. 20,531 -- 61,493 65,702 4,184 -- 256,619 377,562 Units redeemed............................... (1,726) -- (29,460) (30,732) (20) -- (172,710) (134,347) -------- ---- -------- -------- ------ ---- ---------- ---------- Ending units................................. 18,805 -- 134,649 102,616 4,164 -- 1,024,071 940,162 ======== ==== ======== ======== ====== ==== ========== ==========
(Continued) 21 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
GVITGrowth GVITIDAgg GVITIDCon GVITIDMod ------------------------ -------------- -------------- -------------- Investment activity: 2002 2001 2002 2001 2002 2001 2002 2001 ----------- ---------- ------- ---- ------- ---- ------- ---- Net investment income (loss)................. $ (115,653) (149,321) 375 -- 3,709 -- 3,431 -- Realized gain (loss) on investments.......... (2,366,653) (4,280,310) (3,763) -- (84) -- (3,356) -- Change in unrealized gain (loss) on investments............................ (3,021,176) (3,202,773) (5,389) -- (1,344) -- (11,401) -- Reinvested capital gains..................... -- -- 22 -- 154 -- 436 -- ----------- ---------- ------- --- ------- --- ------- --- Net increase (decrease) in contract owners' equity resulting from operations ............................ (5,503,482) (7,632,404) (8,755) -- 2,435 -- (10,890) -- ----------- ---------- ------- --- ------- --- ------- --- Equity transactions: Purchase payments received from contract owners (note 6).................. 3,550,411 4,054,677 30,018 -- 7,502 -- 40,643 -- Transfers between funds...................... (1,039,416) (1,301,931) 147,481 -- 332,814 -- 528,483 -- Surrenders (note 6).......................... (919,629) (1,215,938) (6,575) -- (29,580) -- (2,844) -- Death benefits (note 4)...................... (51,849) (94,201) -- -- -- -- -- -- Policy loans (net of repayments) (note 5).... 194,094 (469,940) (4,029) -- 12,073 -- 1,352 -- Deductions for surrender charges (note 2d)... (50,568) (108,820) (362) -- (1,627) -- (156) -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (1,432,973) (1,486,232) (11,321) -- (5,634) -- (12,601) -- Asset charges (note 3): MSP contracts............................. (5,160) (8,664) -- -- (260) -- (292) -- LSFP contracts............................ (8,210) (9,001) -- -- (167) -- -- -- ----------- ---------- ------- --- ------- --- ------- --- Net equity transactions................ 236,700 (640,050) 155,212 -- 315,121 -- 554,585 -- ----------- ---------- ------- --- ------- --- ------- --- Net change in contract owners' equity........... (5,266,782) (8,272,454) 146,457 -- 317,556 -- 543,695 -- Contract owners' equity beginning of period.................................... 18,678,345 26,950,799 -- -- -- -- -- -- ----------- ---------- ------- --- ------- --- ------- --- Contract owners' equity end of period .......... $13,411,563 18,678,345 146,457 -- 317,556 -- 543,695 -- =========== ========== ======= === ======= === ======= === CHANGES IN UNITS: Beginning units ............................. 1,157,307 1,201,390 -- -- -- -- -- -- ----------- ---------- ------- --- ------- --- ------- --- Units purchased ............................. 296,325 245,018 20,524 -- 34,708 -- 61,992 -- Units redeemed .............................. (283,603) (289,101) (2,814) -- (2,954) -- (2,173) -- ----------- ---------- ------- --- ------- --- ------- --- Ending units ................................ 1,170,029 1,157,307 17,710 -- 31,754 -- 59,819 -- =========== ========== ======= === ======= === ======= ===
22 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
GVITIDModAgg GVITIDModCon GVITIntGro GVITMyMkt ----------------- -------------- ---------------- ------------------------ Investment activity: 2002 2001 2002 2001 2002 2001 2002 2001 ---------- ---- ------- ---- ------- ------ ----------- ---------- Net investment income (loss)................. $ 4,020 -- 2,374 -- (333) (165) 234,335 1,471,308 Realized gain (loss) on investments.......... (30,041) -- (4,333) -- (4,929) (3,090) -- -- Change in unrealized gain (loss) on investments............................ (40,857) -- 142 -- (759) 1,005 -- -- Reinvested capital gains..................... 1,303 -- 402 -- -- -- -- -- ---------- ---- ------- ---- ------- ------ ----------- ---------- Net increase (decrease) in contract owners' equity resulting from operations............................. (65,575) -- (1,415) -- (6,021) (2,250) 234,335 1,471,308 ---------- ---- ------- ---- ------- ------ ----------- ---------- Equity transactions: Purchase payments received from contract owners (note 6).................. 51,389 -- 10,547 -- 37,116 2,587 4,228,147 7,038,540 Transfers between funds...................... 981,852 -- 353,136 -- 46,984 52,127 8,868,792 (1,799,877) Surrenders (note 6).......................... (3,304) -- (83,408) -- (70,278) (14) (15,813,066) (6,733,123) Death benefits (note 4)...................... -- -- (4,459) -- -- -- (100,051) (323,940) Policy loans (net of repayments) (note 5).... 12,741 -- 3,617 -- (1,483) (105) 856,428 312,202 Deductions for surrender charges (note 2d)... (182) -- (4,586) -- (3,864) (1) (869,528) (602,577) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (34,114) -- (4,367) -- (2,650) (1,273) (2,203,711) (2,220,627) Asset charges (note 3): MSP contracts............................. (29) -- (169) -- -- -- (47,444) (44,176) LSFP contracts............................ (89) -- (4) -- -- -- (40,196) (38,727) ---------- ---- ------- ---- ------- ------ ----------- ---------- Net equity transactions................ 1,008,264 -- 270,307 -- 5,825 53,321 (5,120,629) (4,412,305) ---------- ---- ------- ---- ------- ------ ----------- ---------- Net change in contract owners' equity........... 942,689 -- 268,892 -- (196) 51,071 (4,886,294) (2,940,997) Contract owners' equity beginning of period.................................... -- -- -- -- 55,253 4,182 51,650,867 54,591,864 ---------- ---- ------- ---- ------- ------ ----------- ---------- Contract owners' equity end of period........... $ 942,689 -- 268,892 -- 55,057 55,253 46,764,573 51,650,867 ========== ==== ======= ==== ======= ====== =========== ========== CHANGES IN UNITS: Beginning units.............................. -- -- -- -- 8,456 453 3,540,015 3,829,526 ---------- ---- ------- ---- ------- ------ ----------- ---------- Units purchased.............................. 113,991 -- 28,835 -- 9,592 8,228 649,115 732,398 Units redeemed............................... (4,780) -- (808) -- (6,815) (225) (1,008,060) (1,021,909) ---------- ---- ------- ---- ------- ------ ----------- ---------- Ending units................................. 109,211 -- 28,027 -- 11,233 8,456 3,181,070 3,540,015 ========== ==== ======= ==== ======= ====== =========== ==========
(Continued) 23 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
GVITLead GVITSmCapGr --------------- --------------------- Investment activity: 2002 2001 2002 2001 -------- ---- --------- --------- Net investment income (loss)................. $ 224 -- (9,005) (8,611) Realized gain (loss) on investments.......... (9,895) -- (539,108) (223,133) Change in unrealized gain (loss) on investments............................ (4,614) -- (10,392) 178,447 Reinvested capital gains..................... -- -- -- -- -------- ---- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations............................. (14,285) -- (558,505) (53,297) -------- ---- --------- --------- Equity transactions: Purchase payments received from contract owners (note 6).................. 7,788 -- 619,612 104,712 Transfers between funds...................... 141,311 -- 134,653 646,697 Surrenders (note 6).......................... (12,363) -- (162,779) (30,141) Death benefits (note 4)...................... -- -- (17,654) -- Policy loans (net of repayments) (note 5).... (2,325) -- (2,166) (30,450) Deductions for surrender charges (note 2d)... (680) -- (8,951) (2,697) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (4,331) -- (76,901) (61,379) Asset charges (note 3): MSP contracts............................. (79) -- (476) (635) LSFP contracts............................ -- -- (667) (264) -------- ---- --------- --------- Net equity transactions................ 129,321 -- 484,671 625,843 -------- ---- --------- --------- Net change in contract owners' equity........... 115,036 -- (73,834) 572,546 Contract owners' equity beginning of period.................................... -- -- 1,332,775 760,229 -------- ---- --------- --------- Contract owners' equity end of period........... $115,036 -- 1,258,941 1,332,775 ======== ==== ========= ========= CHANGES IN UNITS: Beginning units.............................. -- -- 186,280 94,113 -------- ---- --------- --------- Units purchased.............................. 14,429 -- 120,635 113,449 Units redeemed .............................. (750) -- (41,152) (21,282) -------- ---- --------- --------- Ending units................................. 13,679 -- 265,763 186,280 ======== ==== ========= ========= GVITSmCapVal GVITSmComp ----------------------- ----------------------- Investment activity: 2002 2001 2002 2001 ---------- ---------- ---------- ---------- Net investment income (loss)................. (92,125) (93,474) (166,099) (165,788) Realized gain (loss) on investments.......... (3,668,042) 110,418 (2,431,393) (4,402,099) Change in unrealized gain (loss) on investments............................ (1,169,384) 1,228,548 (2,049,393) 2,206,825 Reinvested capital gains..................... 308,760 1,026,030 -- -- ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations............................. (4,620,791) 2,271,522 (4,646,885) (2,361,062) ---------- ---------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6).................. 1,188,983 856,736 2,184,290 2,441,354 Transfers between funds...................... (1,353,452) 6,194,722 (120,024) (3,075,492) Surrenders (note 6).......................... (1,003,083) (349,290) (1,272,878) (849,541) Death benefits (note 4)...................... (11,891) (3,924) (71,551) (69,847) Policy loans (net of repayments) (note 5).... (51,969) (53,992) (215,642) (474,171) Deductions for surrender charges (note 2d)... (55,158) (31,259) (69,993) (76,029) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (586,977) (387,192) (1,285,393) (1,301,720) Asset charges (note 3): MSP contracts............................. (7,239) (5,500) (13,651) (17,316) LSFP contracts............................ (9,801) (8,972) (10,604) (13,625) ---------- ---------- ---------- ---------- Net equity transactions................ (1,890,587) 6,211,329 (875,446) (3,436,387) ---------- ---------- ---------- ---------- Net change in contract owners' equity........... (6,511,378) 8,482,851 (5,522,331) (5,797,449) Contract owners' equity beginning of period.................................... 15,781,967 7,299,116 25,607,027 31,404,476 ---------- ---------- ---------- ---------- Contract owners' equity end of period........... 9,270,589 15,781,967 20,084,696 25,607,027 ========== ========== ========== ========== CHANGES IN UNITS: Beginning units.............................. 1,034,902 610,738 1,141,976 1,306,261 ---------- ---------- ---------- ---------- Units purchased.............................. 107,054 520,517 129,251 116,845 Units redeemed .............................. (303,657) (96,353) (180,522) (281,130) ---------- ---------- ---------- ---------- Ending units................................. 838,299 1,034,902 1,090,705 1,141,976 ========== ========== ========== ==========
24 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
GVITTotRt GVITUSGro -------------------------- ------------- Investment activity: 2002 2001 2002 2001 ------------ ----------- ------ ---- Net investment income (loss)................. $ 63,059 10,101 (119) -- Realized gain (loss) on investments.......... (2,673,181) (1,755,795) (263) -- Change in unrealized gain (loss) on investments............................ (11,054,460) (11,829,407) (5,779) -- Reinvested capital gains..................... -- 2,194,987 -- -- ------------ ----------- ------ ---- Net increase (decrease) in contract owners' equity resulting from operations............................. (13,664,582) (11,380,114) (6,161) -- ------------ ----------- ------ ---- Equity transactions: Purchase payments received from contract owners (note 6).................. 9,291,200 10,570,297 1,061 -- Transfers between funds...................... (2,033,396) (1,415,297) 88,214 -- Surrenders (note 6).......................... (3,864,076) (4,543,745) -- -- Death benefits (note 4)...................... (443,207) (691,160) -- -- Policy loans (net of repayments) (note 5).... (296,328) (338,342) (1,144) -- Deductions for surrender charges (note 2d)... (212,478) (406,639) -- -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (5,626,226) (5,593,239) (1,044) -- Asset charges (note 3): MSP contracts............................. (28,021) (34,275) -- -- LSFP contracts............................ (17,931) (19,473) (11) -- ------------ ----------- ------ ---- Net equity transactions................ (3,230,463) (2,471,873) 87,076 -- ------------ ----------- ------ ---- Net change in contract owners' equity........... (16,895,045) (13,851,987) 80,915 -- Contract owners' equity beginning of period ................................... 77,220,609 91,072,596 -- -- ------------ ----------- ------ ---- Contract owners' equity end of period........... $ 60,325,564 77,220,609 80,915 -- ============ =========== ====== ==== CHANGES IN UNITS: Beginning units.............................. 2,758,504 2,847,611 -- -- ------------ ----------- ------ ---- Units purchased.............................. 391,170 387,748 10,159 -- Units redeemed............................... (526,906) (476,855) (265) -- ------------ ----------- ------ ---- Ending units................................. 2,622,768 2,758,504 9,894 -- ============ =========== ====== ==== JanCapAp JanGITech ---------------------- ----------------------- Investment activity: 2002 2001 2002 2001 --------- ---------- ---------- ---------- Net investment income (loss)................. (10,295) 4,262 (8,887) (3,153) Realized gain (loss) on investments.......... (417,474) (1,133,638) (269,555) (2,122,695) Change in unrealized gain (loss) on investments............................ (28,278) 244,422 (427,636) 1,125,331 Reinvested capital gains..................... -- -- -- -- --------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations............................. (456,047) (884,954) (706,078) (1,000,517) --------- ---------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6).................. 302,801 395,668 201,079 364,127 Transfers between funds...................... 136,764 497,060 (298,876) 478,283 Surrenders (note 6).......................... (193,278) (98,492) (139,634) (146,539) Death benefits (note 4)...................... -- -- -- (98,999) Policy loans (net of repayments) (note 5).... 11,769 (63,185) 26,135 (41,135) Deductions for surrender charges (note 2d)... (10,628) (8,814) (7,678) (13,114) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (163,145) (158,392) (78,471) (106,881) Asset charges (note 3): MSP contracts............................. (1,385) (2,325) (916) (1,712) LSFP contracts............................ (1,213) (1,195) (608) (802) --------- ---------- ---------- ---------- Net equity transactions................ 81,685 560,325 (298,969) 433,228 --------- ---------- ---------- ---------- Net change in contract owners' equity........... (374,362) (324,629) (1,005,047) (567,289) Contract owners' equity beginning of period ................................... 2,628,238 2,952,867 1,884,814 2,452,103 --------- ---------- ---------- ---------- Contract owners' equity end of period........... 2,253,876 2,628,238 879,767 1,884,814 ========= ========== ========== ========== CHANGES IN UNITS: Beginning units.............................. 428,785 373,970 449,115 363,557 --------- ---------- ---------- ---------- Units purchased.............................. 95,428 118,903 83,201 180,547 Units redeemed............................... (83,823) (64,088) (175,140) (94,989) --------- ---------- ---------- ---------- Ending units................................. 440,390 428,785 357,176 449,115 ========= ========== ========== ==========
(Continued) 25 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
JanIntGro MGVITMultiSec ----------------------- ------------------- Investment activity: 2002 2001 2002 2001 ---------- ---------- --------- ------- Net investment income (loss)................. $ (4,636) (2,522) 38,896 26,704 Realized gain (loss) on investments ......... (407,715) (1,006,099) (7,201) (16,549) Change in unrealized gain (loss) on investments............................ (16,485) 441,311 27,886 (1,097) Reinvested capital gains..................... -- -- -- -- ---------- ---------- --------- ------- Net increase (decrease) in contract owners' equity resulting from operations............................. (428,836) (567,310) 59,581 9,058 ---------- ---------- --------- ------- Equity transactions: Purchase payments received from contract owners (note 6).................. 498,623 286,461 68,550 22,300 Transfers between funds...................... (37,022) 263,144 654,994 526,721 Surrenders (note 6).......................... (398,206) (60,603) (23,316) (4,013) Death benefits (note 4)...................... (2,290) -- -- (954) Policy loans (net of repayments) (note 5).... 28,088 (50,849) (4,610) (829) Deductions for surrender charges (note 2d)... (21,897) (5,424) (1,282) (359) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (105,940) (95,431) (29,377) (13,528) Asset charges (note 3): MSP contracts............................. (824) (1,219) (472) (733) LSFP contracts............................ (988) (668) (100) (60) ---------- ---------- --------- ------- Net equity transactions................ (40,456) 335,411 664,387 528,545 ---------- ---------- --------- ------- Net change in contract owners' equity........... (469,292) (231,899) 723,968 537,603 Contract owners' equity beginning of period.................................... 1,951,169 2,183,068 624,691 87,088 ---------- ---------- --------- ------- Contract owners' equity end of period........... $1,481,877 1,951,169 1,348,659 624,691 ========== ========== ========= ======= CHANGES IN UNITS: Beginning units ............................. 324,749 276,083 57,879 8,333 ---------- ---------- --------- ------- Units purchased ............................. 70,908 104,433 68,517 54,885 Units redeemed .............................. (61,009) (55,767) (8,966) (5,339) ---------- ---------- --------- ------- Ending units ................................ 334,648 324,749 117,430 57,879 ========== ========== ========= ======= NBAMTBal NBAMTGro --------------- ------------------------- Investment activity: 2002 2001 2002 2001 ------ ------ ----------- ----------- Net investment income (loss)................. 863 (43) (127,464) (193,586) Realized gain (loss) on investments ......... (343) (16) (4,914,991) (28,997,129) Change in unrealized gain (loss) on investments............................ (8,064) 125 (1,658,364) 6,433,848 Reinvested capital gains..................... -- -- -- 12,536,350 ------ ------ ----------- ----------- Net increase (decrease) in contract owners' equity resulting from operations............................. (7,544) 66 (6,700,819) (10,220,517) ------ ------ ----------- ----------- Equity transactions: Purchase payments received from contract owners (note 6).................. 1,871 469 2,192,969 2,731,498 Transfers between funds...................... 39,141 14,107 (4,042,985) 444,727 Surrenders (note 6).......................... -- -- (939,226) (974,018) Death benefits (note 4)...................... -- -- (56,429) (42,216) Policy loans (net of repayments) (note 5).... 22 -- (16,008) (212,223) Deductions for surrender charges (note 2d)... -- -- (51,646) (87,169) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (1,718) (374) (1,089,804) (1,244,333) Asset charges (note 3): MSP contracts............................. -- -- (7,158) (12,841) LSFP contracts............................ -- -- (6,125) (9,710) ------ ------ ----------- ----------- Net equity transactions................ 39,316 14,202 (4,016,412) 593,715 ------ ------ ----------- ----------- Net change in contract owners' equity........... 31,772 14,268 (10,717,231) (9,626,802) Contract owners' equity beginning of period.................................... 14,268 -- 23,714,762 33,341,564 ------ ------ ----------- ----------- Contract owners' equity end of period........... 46,040 14,268 12,997,531 23,714,762 ====== ====== =========== =========== CHANGES IN UNITS: Beginning units ............................. 636 -- 1,114,641 1,073,053 ------ ------ ----------- ----------- Units purchased ............................. 1,949 654 141,889 180,511 Units redeemed .............................. (88) (18) (389,975) (138,923) ------ ------ ----------- ----------- Ending units ................................ 2,497 636 866,555 1,114,641 ====== ====== =========== ===========
26 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
NBAMTGuard NBAMTLMat ---------------------- --------------------- Investment activity: 2002 2001 2002 2001 ---------- --------- --------- --------- Net investment income (loss)................. $ 2,019 (6,035) 238,386 220,379 Realized gain (loss) on investments.......... (564,694) 6,732 29,349 89,230 Change in unrealized gain (loss) on investments............................ (142,270) (216,517) (464) 11,853 Reinvested capital gains..................... -- 152,227 -- -- ---------- --------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations............................. (704,945) (63,593) 267,271 321,462 ---------- --------- --------- --------- Equity transactions: Purchase payments received from contract owners (note 6).................. 252,039 222,976 485,372 299,644 Transfers between funds...................... (326,889) 726,698 2,049,470 1,321,934 Surrenders (note 6).......................... (70,728) (143,079) (756,920) (773,410) Death benefits (note 4)...................... -- -- (42,010) (14,103) Policy loans (net of repayments) (note 5).... (14,101) (25,903) 80,900 159,958 Deductions for surrender charges (note 2d)... (3,889) (12,805) (41,621) (69,216) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (106,763) (90,460) (245,535) (172,678) Asset charges (note 3): MSP contracts............................. (1,592) (1,858) (6,969) (5,349) LSFP contracts............................ (1,817) (1,559) (1,413) (1,030) ---------- --------- --------- --------- Net equity transactions................ (273,740) 674,010 1,521,274 745,750 ---------- --------- --------- --------- Net change in contract owners' equity........... (978,685) 610,417 1,788,545 1,067,212 Contract owners' equity beginning of period.................................... 2,584,522 1,974,105 4,952,976 3,885,764 ---------- --------- --------- --------- Contract owners' equity end of period........... $1,605,837 2,584,522 6,741,521 4,952,976 ========== ========= ========= ========= CHANGES IN UNITS: Beginning units.............................. 247,137 184,667 298,490 252,610 ---------- --------- --------- --------- Units purchased.............................. 32,929 88,493 143,330 105,369 Units redeemed............................... (70,061) (26,023) (51,497) (59,489) ---------- --------- --------- --------- Ending units................................. 210,005 247,137 390,323 298,490 ========== ========= ========= ========= NBAMTPart OppAggGro ----------------------- ---------------------- Investment activity: 2002 2001 2002 2001 ---------- ---------- --------- ---------- Net investment income (loss)................. (32,601) (75,310) (1,144) 4,198 Realized gain (loss) on investments.......... (1,617,582) (803,266) (590,299) (1,542,830) Change in unrealized gain (loss) on investments............................ (3,978,892) (872,728) 91,747 307,499 Reinvested capital gains..................... -- 860,887 -- 315,653 ---------- ---------- --------- ---------- Net increase (decrease) in contract owners' equity resulting from operations............................. (5,629,075) (890,417) (499,696) (915,480) ---------- ---------- --------- ---------- Equity transactions: Purchase payments received from contract owners (note 6).................. 2,518,759 2,895,052 277,067 414,251 Transfers between funds...................... (1,347,916) (551,168) (127,039) (327,543) Surrenders (note 6).......................... (979,335) (900,324) (140,615) (70,469) Death benefits (note 4)...................... (57,113) (80,967) (3,005) -- Policy loans (net of repayments) (note 5).... (98,447) (121,221) (16,276) (30,433) Deductions for surrender charges (note 2d)... (53,852) (80,574) (7,732) (6,307) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (1,224,187) (1,226,475) (117,334) (140,549) Asset charges (note 3): MSP contracts............................. (12,334) (16,055) (637) (1,861) LSFP contracts............................ (13,806) (13,840) (143) (353) ---------- ---------- --------- ---------- Net equity transactions................ (1,268,231) (95,572) (135,714) (163,264) ---------- ---------- --------- ---------- Net change in contract owners' equity........... (6,897,306) (985,989) (635,410) (1,078,744) Contract owners' equity beginning of period.................................... 23,648,159 24,634,148 1,793,749 2,872,493 ---------- ---------- --------- ---------- Contract owners' equity end of period........... 16,750,853 23,648,159 1,158,339 1,793,749 ========== ========== ========= ========== CHANGES IN UNITS: Beginning units.............................. 1,050,337 1,056,621 337,769 369,008 ---------- ---------- --------- ---------- Units purchased.............................. 149,729 143,261 72,910 71,698 Units redeemed............................... (209,732) (149,545) (106,054) (102,937) ---------- ---------- --------- ---------- Ending units................................. 990,334 1,050,337 304,625 337,769 ========== ========== ========= ==========
(Continued) 27 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
OppBdFd OppCapAp ------------------------ ----------------------- Investment activity: 2002 2001 2002 2001 ----------- ---------- ---------- ---------- Net investment income (loss) ................ $ 882,439 771,452 (15,505) (19,077) Realized gain (loss) on investments ......... (350,686) (494,081) (6,751,858) (1,029,806) Change in unrealized gain (loss) on investments ........................... 535,188 471,071 2,058,407 (3,248,518) Reinvested capital gains .................... -- -- -- 1,656,912 ----------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 1,066,941 748,442 (4,708,956) (2,640,489) ----------- ---------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 1,018,900 1,078,932 2,131,465 1,908,054 Transfers between funds ..................... 816,498 1,213,664 (446,711) 1,333,450 Surrenders (note 6) ......................... (999,559) (744,342) (1,052,801) (730,423) Death benefits (note 4) ..................... (86,356) (21,063) (45,480) (20,947) Policy loans (net of repayments) (note 5) ... (175,417) (35,391) (56,354) (312,079) Deductions for surrender charges (note 2d)... (54,964) (66,614) (57,891) (65,369) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (658,218) (528,090) (828,314) (860,437) Asset charges (note 3): MSP contracts ............................ (10,665) (10,865) (5,855) (9,111) LSFP contracts ........................... (4,779) (3,915) (6,108) (7,689) ----------- ---------- ---------- ---------- Net equity transactions ............... (154,560) 882,316 (368,049) 1,235,449 ----------- ---------- ---------- ---------- Net change in contract owners' equity .......... 912,381 1,630,758 (5,077,005) (1,405,040) Contract owners' equity beginning of period ................................... 13,096,929 11,466,171 16,694,310 18,099,350 ----------- ---------- ---------- ---------- Contract owners' equity end of period .......... $14,009,310 13,096,929 11,617,305 16,694,310 =========== ========== ========== ========== CHANGES IN UNITS: Beginning units ............................. 691,900 647,048 1,073,994 1,010,305 ----------- ---------- ---------- ---------- Units purchased ............................. 85,064 120,657 162,077 199,382 Units redeemed .............................. (91,088) (75,805) (205,638) (135,693) ----------- ---------- ---------- ---------- Ending units ................................ 685,876 691,900 1,030,433 1,073,994 =========== ========== ========== ========== OppGlSec OppMSGrInc ------------------------ ------------------- Investment activity: 2002 2001 2002 2001 ---------- ----------- --------- ------- Net investment income (loss) ................ (61,818) (17,114) (227) (1,569) Realized gain (loss) on investments ......... (779,589) 711,276 (144,832) (68,580) Change in unrealized gain (loss) on investments ........................... (6,436,152) (10,336,593) (63,259) 3,903 Reinvested capital gains .................... -- 4,652,673 -- -- ---------- ----------- --------- ------- Net increase (decrease) in contract owners' equity resulting from operations ............................ (7,277,559) (4,989,758) (208,318) (66,246) ---------- ----------- --------- ------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 2,395,521 3,040,269 86,118 73,457 Transfers between funds ..................... (974,214) (700,733) 352,251 478,473 Surrenders (note 6) ......................... (1,670,589) (1,165,344) (39,278) (13,868) Death benefits (note 4) ..................... (139,234) (59,812) -- (5,572) Policy loans (net of repayments) (note 5) ... (107,233) (641,888) 85 (6,462) Deductions for surrender charges (note 2d)... (91,862) (104,292) (2,160) (1,241) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (1,468,689) (1,470,276) (42,091) (28,125) Asset charges (note 3): MSP contracts ............................ (11,572) (14,321) (841) (846) LSFP contracts ........................... (7,148) (7,414) (787) (396) ---------- ----------- --------- ------- Net equity transactions ............... (2,075,020) (1,123,811) 353,297 495,420 ---------- ----------- --------- ------- Net change in contract owners' equity .......... (9,352,579) (6,113,569) 144,979 429,174 Contract owners' equity beginning of period ................................... 33,331,326 39,444,895 855,113 425,939 ---------- ----------- --------- ------- Contract owners' equity end of period .......... 23,978,747 33,331,326 1,000,092 855,113 ========== =========== ========= ======= CHANGES IN UNITS: Beginning units ............................. 1,278,705 1,321,836 106,340 47,244 ---------- ----------- --------- ------- Units purchased ............................. 122,958 124,911 59,843 67,246 Units redeemed .............................. (210,884) (168,042) (12,087) (8,150) ---------- ----------- --------- ------- Ending units ................................ 1,190,779 1,278,705 154,096 106,340 ========== =========== ========= =======
28 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
OppMultStr SGVITMdCpGr ------------------------ -------------------- Investment activity: 2002 2001 2002 2001 ----------- ---------- --------- -------- Net investment income (loss)................. $ 377,956 463,119 (8,153) (6,440) Realized gain (loss) on investments.......... (465,799) (253,215) (397,870) (447,934) Change in unrealized gain (loss) on investments............................ (1,738,579) (788,871) (56,058) 118,872 Reinvested capital gains..................... 200,398 782,407 -- -- ----------- ---------- --------- -------- Net increase (decrease) in contract owners' equity resulting from operations............................. (1,626,024) 203,440 (462,081) (335,502) ----------- ---------- --------- -------- Equity transactions: Purchase payments received from contract owners (note 6).................. 1,233,000 1,340,866 358,592 128,618 Transfers between funds...................... 6,851 73,937 485,532 407,630 Surrenders (note 6).......................... (881,744) (1,108,678) (47,786) (17,647) Death benefits (note 4)...................... (208,239) (15,941) (10,227) -- Policy loans (net of repayments) (note 5).... (71,305) (124,435) (5,425) (28,387) Deductions for surrender charges (note 2d)... (48,485) (99,220) (2,628) (1,579) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (720,498) (685,803) (61,931) (47,737) Asset charges (note 3): MSP contracts............................. (8,198) (8,884) (561) (769) LSFP contracts............................ (3,122) (3,101) (432) (240) ----------- ---------- --------- -------- Net equity transactions................ (701,740) (631,259) 715,134 439,889 ----------- ---------- --------- -------- Net change in contract owners' equity........... (2,327,764) (427,819) 253,053 104,387 Contract owners' equity beginning of period.................................... 14,587,018 15,014,837 925,125 820,738 ----------- ---------- --------- -------- Contract owners' equity end of period........... $12,259,254 14,587,018 1,178,178 925,125 =========== ========== ========= ======== CHANGES IN UNITS: Beginning units.............................. 574,816 597,489 164,872 101,174 ----------- ---------- --------- -------- Units purchased.............................. 73,564 62,920 206,561 87,445 Units redeemed............................... (104,973) (85,593) (35,612) (23,747) ----------- ---------- --------- -------- Ending units................................. 543,407 574,816 335,821 164,872 =========== ========== ========= ======== StOpp2 StDisc2 ------------------------ ----------------------- Investment activity: 2002 2001 2002 2001 ----------- ---------- ---------- ---------- Net investment income (loss)................. (147,021) (90,855) (52,203) (7,858) Realized gain (loss) on investments.......... (2,167,910) 810,668 (262,474) (1,394,760) Change in unrealized gain (loss) on investments............................ (9,845,255) (9,214,867) (594,143) 323,479 Reinvested capital gains..................... 644,398 6,568,447 -- 1,246,478 ----------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations............................. (11,515,788) (1,926,607) (908,820) 167,339 ----------- ---------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6).................. 3,147,871 3,747,736 608,903 677,166 Transfers between funds...................... (1,938,061) 1,868,557 (80,174) 331,868 Surrenders (note 6).......................... (1,780,772) (1,628,712) (417,882) (500,137) Death benefits (note 4)...................... (79,482) (138,099) (18,966) (9,601) Policy loans (net of repayments) (note 5).... (352,730) (509,235) 81,865 1,236 Deductions for surrender charges (note 2d)... (97,921) (145,760) (22,978) (44,759) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (1,897,429) (1,891,585) (346,561) (360,160) Asset charges (note 3): MSP contracts............................. (8,916) (10,652) (1,630) (1,879) LSFP contracts............................ (6,859) (7,189) (621) (1,043) ----------- ---------- ---------- ---------- Net equity transactions................ (3,014,299) 1,285,061 (198,044) 92,691 ----------- ---------- ---------- ---------- Net change in contract owners' equity........... (14,530,087) (641,546) (1,106,864) 260,030 Contract owners' equity beginning of period.................................... 43,130,976 43,772,522 6,864,441 6,604,411 ----------- ---------- ---------- ---------- Contract owners' equity end of period........... 28,600,889 43,130,976 5,757,577 6,864,441 =========== ========== ========== ========== CHANGES IN UNITS: Beginning units.............................. 1,109,407 1,075,957 327,117 325,876 ----------- ---------- ---------- ---------- Units purchased.............................. 116,005 153,470 38,978 54,515 Units redeemed............................... (211,096) (120,020) (52,513) (53,274) ----------- ---------- ---------- ---------- Ending units................................. 1,014,316 1,109,407 313,582 327,117 =========== ========== ========== ==========
(Continued) 29 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
StIntStk2 TurnGVITGro ----------------------- ------------------- Investment activity: 2002 2001 2002 2001 ---------- ---------- -------- -------- Net investment income (loss)................. $ 63,769 (19,820) (1,483) (1,295) Realized gain (loss) on investments.......... (794,539) (668,197) (118,319) (142,465) Change in unrealized gain (loss) on investments............................ 177,975 (12,561) (25,065) 26,613 Reinvested capital gains..................... -- 94,952 -- -- ---------- ---------- -------- -------- Net increase (decrease) in contract owners' equity resulting from operations............................. (552,795) (605,626) (144,867) (117,147) ---------- ---------- -------- -------- Equity transactions: Purchase payments received from contract owners (note 6).................. 300,490 379,003 26,059 17,433 Transfers between funds...................... (144,364) (626,846) 112,664 263,212 Surrenders (note 6).......................... (170,083) (73,457) (1,211) (397) Death benefits (note 4)...................... (7,537) (8,282) -- -- Policy loans (net of repayments) (note 5).... 10,245 (5,357) 104 (5) Deductions for surrender charges (note 2d)... (9,352) (6,574) (67) (35) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (115,209) (138,425) 12,255 (8,497) Asset charges (note 3): MSP contracts............................. (766) (1,205) (133) (166) LSFP contracts............................ (2,122) (2,203) (12) -- ---------- ---------- -------- -------- Net equity transactions................ (138,698) (483,346) 149,659 271,545 ---------- ---------- -------- -------- Net change in contract owners' equity........... (691,493) (1,088,972) 4,792 154,398 Contract owners' equity beginning of period.................................... 2,291,785 3,380,757 203,826 49,428 ---------- ---------- -------- -------- Contract owners' equity end of period........... $1,600,292 2,291,785 208,618 203,826 ========== ========== ======== ======== CHANGES IN UNITS: Beginning units.............................. 297,754 339,841 53,240 7,806 ---------- ---------- -------- -------- Units purchased.............................. 50,067 48,269 50,752 47,788 Units redeemed............................... (62,517) (90,356) (7,882) (2,354) ---------- ---------- -------- -------- Ending units................................. 285,304 297,754 96,110 53,240 ========== ========== ======== ======== VEWrldBd VEWrldEMkt --------------------- --------------------- Investment activity: 2002 2001 2002 2001 --------- --------- --------- --------- Net investment income (loss)................. (26,814) 82,397 (23,485) (26,750) Realized gain (loss) on investments.......... 493,528 (98,475) (383,086) (647,627) Change in unrealized gain (loss) on investments............................ 184,996 (128,804) 111,183 690,151 Reinvested capital gains..................... -- -- -- -- --------- --------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations............................. 651,710 (144,882) (295,388) 15,774 --------- --------- --------- --------- Equity transactions: Purchase payments received from contract owners (note 6).................. 260,531 148,351 704,499 490,507 Transfers between funds...................... 1,799,806 (16,738) 622,118 (331,274) Surrenders (note 6).......................... (190,817) (89,552) (564,961) (180,526) Death benefits (note 4)...................... (3,389) (911) (5,788) (8,562) Policy loans (net of repayments) (note 5).... (6,834) 58,063 490 28,266 Deductions for surrender charges (note 2d)... (10,493) (8,014) (31,066) (16,156) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)......................... (142,406) (94,179) (229,103) (186,521) Asset charges (note 3): MSP contracts............................. (1,498) (1,268) (2,796) (2,672) LSFP contracts............................ (1,111) (221) (3,167) (2,560) --------- --------- --------- --------- Net equity transactions................ 1,703,789 (4,469) 490,226 (209,498) --------- --------- --------- --------- Net change in contract owners' equity........... 2,355,499 (149,351) 194,838 (193,724) Contract owners' equity beginning of period.................................... 2,245,571 2,394,922 3,614,378 3,808,102 --------- --------- --------- --------- Contract owners' equity end of period........... 4,601,070 2,245,571 3,809,216 3,614,378 ========= ========= ========= ========= CHANGES IN UNITS: Beginning units.............................. 170,193 170,727 558,293 573,188 --------- --------- --------- --------- Units purchased.............................. 147,907 17,591 130,293 86,484 Units redeemed............................... (26,757) (18,125) (79,461) (101,379) --------- --------- --------- --------- Ending units................................. 291,343 170,193 609,125 558,293 ========= ========= ========= =========
30 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Years Ended December 31, 2002 and 2001
VEWrldHAs VKEmMkt VKUSRealEst ---------------------- --------------------- --------------------- Investment activity: 2002 2001 2002 2001 2002 2001 ---------- --------- --------- --------- --------- --------- Net investment income (loss) ................ $ (3,098) 13,329 85,212 103,553 228,325 260,668 Realized gain (loss) on investments ......... (399,785) (465,577) (10,342) 2,970 66,434 499,135 Change in unrealized gain (loss) on investments ........................... 176,398 (17,134) 14,386 (10,775) (813,789) (151,471) Reinvested capital gains .................... -- -- -- -- 229,276 71,668 ---------- --------- --------- --------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations ............................ (226,485) (469,382) 89,256 95,748 (289,754) 680,000 ---------- --------- --------- --------- --------- --------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 513,130 327,399 107,703 115,651 862,806 771,202 Transfers between funds ..................... 1,395,942 (274,541) 186,450 58,296 1,889,578 801,119 Surrenders (note 6) ......................... (230,792) (221,290) (77,281) (10,839) (978,184) (221,091) Death benefits (note 4) ..................... (7,889) (9,201) (1,815) (558) (13,953) (6,563) Policy loans (net of repayments) (note 5) ... (51,043) (6,073) (44,874) (2,643) (57,356) (125,377) Deductions for surrender charges (note 2d) .. (12,691) (19,804) (4,250) (970) (53,788) (19,786) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (210,529) (191,766) (59,348) (40,159) (550,761) (419,054) Asset charges (note 3): MSP contracts ............................ (1,932) (1,931) (924) (898) (5,293) (5,645) LSFP contracts ........................... (892) (644) (2,406) (2,146) (4,505) (3,546) ---------- --------- --------- --------- --------- --------- Net equity transactions ............... 1,393,304 (397,851) 103,255 115,734 1,088,544 771,259 ---------- --------- --------- --------- --------- --------- Net change in contract owners' equity .......... 1,166,819 (867,233) 192,511 211,482 798,790 1,451,259 Contract owners' equity beginning of period ................................... 3,298,337 4,165,570 1,275,908 1,064,426 8,867,642 7,416,383 ---------- --------- --------- --------- --------- --------- Contract owners' equity end of period .......... $4,465,156 3,298,337 1,468,419 1,275,908 9,666,432 8,867,642 ========== ========= ========= ========= ========= ========= CHANGES IN UNITS: Beginning units ............................. 247,470 278,673 116,821 106,632 425,269 388,011 ---------- --------- --------- --------- --------- --------- Units purchased ............................. 136,375 26,308 27,043 22,094 123,559 83,489 Units redeemed .............................. (38,355) (57,511) (20,175) (11,905) (78,988) (46,231) ---------- --------- --------- --------- --------- --------- Ending units ................................ 345,490 247,470 123,689 116,821 469,840 425,269 ========== ========= ========= ========= ========= =========
See accompanying notes to financial statements. ================================================================================ 31 ================================================================================ NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS December 31, 2002 and 2001 (1) Summary of Significant Accounting Policies (a) Organization and Nature of Operations The Nationwide VLI Separate Account-2 (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on May 7, 1987. The Account is registered as a unit investment trust under the Investment Company Act of 1940. The Company offers Single Premium, Modified Single Premium, Flexible Premium and Last Survivor Flexible Premium Variable Life Insurance Policies through the Account. The primary distribution for the contracts is through the brokerage community; however, other distributors may be utilized. (b) The Contracts Prior to December 31, 1990, only contracts without a front-end sales charge, but with a contingent deferred sales charge and certain other fees, were offered for purchase. Beginning December 31, 1990, contracts with a front-end sales charge, 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 Balanced Fund - Class I (ACVPBal) American Century VP Capital Appreciation Fund - Class I (ACVPCapAp) American Century VP Income & Growth Fund - Class I (ACVPIncGr) American Century VP International Fund - Class I (ACVPInt) American Century Ultra Fund - Class I (ACVPUltra) American Century VP Value Fund - Class I (ACVPVal) Portfolios of the Credit Suisse Trust; Credit Suisse Trust - Global Post-Venture Capital Portfolio (CSGPVen) Credit Suisse Trust - International Focus Portfolio (CSIntEq) Credit Suisse Trust - Small Cap Growth Portfolio (CSSmCapGr) Portfolios of the Dreyfus GVIT (formerly Nationwide(R) SAT); Dreyfus GVIT Mid Cap Index Fund - Class I (DryMidCapIx) Portfolios of the Dreyfus Investment Portfolios (Dreyfus IP); * Dreyfus IP - European Equity Portfolio (DryEuroEq) Dreyfus IP - Small Cap Stock Index Portfolio - Service Class (DrySmCapIxS) Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DrySRGro) Dreyfus Stock Index Fund (DryStkIx) Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF); Dreyfus VIF - Appreciation Portfolio - Initial Shares (DryVIFApp) Dreyfus VIF - Growth and Income Portfolio - Initial Shares (DryVIFGrInc) Portfolios of Federated Insurance Series; Federated Quality Bond Fund II - Primary Shares (FedQualBd) Portfolios of the Fidelity(R) Variable Insurance Products (Fidelity(R) VIP); Fidelity(R) VIP - Equity-Income Portfolio: Initial Class (FidVIPEI) Fidelity(R) VIP - Growth Portfolio: Initial Class (FidVIPGr) Fidelity(R) VIP - High Income Portfolio: Initial Class (FidVIPHI) Fidelity(R) VIP - Overseas Portfolio: Initial Class (FidVIPOv) Portfolios of the Fidelity(R) Variable Insurance Products (Fidelity(R) VIP II); Fidelity(R) VIP II - Asset Manager: Growth Portfolio: Service Class (FidVIPAM) Fidelity(R) VIP II - Contrafund Portfolio: Initial Class (FidVIPCon) 32 Portfolios of the Fidelity(R) Variable Insurance Products (Fidelity(R) VIP III); Fidelity(R) VIP III - Growth Opportunities Portfolio: Initial Class (FidVIPGrOP) Fidelity(R) VIP III - Value Strategies Portfolio: Service Class (FidVIPValStS) Funds of the Gartmore Variable Insurance Trust (Gartmore GVIT) (formerly Nationwide(R) SAT); Gartmore GVIT Emerging Markets Fund - Class I (GVITEmMrkts) Gartmore GVIT Global Financial Services Fund - Class I (GVITGlFin) Gartmore GVIT Global Health Sciences Fund - Class I (GVITGlHlth) Gartmore GVIT Global Technology and Communications Fund - Class I (GVITGlTech) Gartmore GVIT Global Utilities Fund - Class I (GVITGlUtl) Gartmore GVIT Government Bond Fund - Class I (GVITGvtBd) Gartmore GVIT Growth Fund - Class I (formerly Nationwide(R) SAT Capital Appreciation Fund) (GVITGrowth) Gartmore GVIT ID (Investor Destinations) Aggressive Fund (GVITIDAgg) Gartmore GVIT ID (Investor Destinations) Conservative Fund (GVITIDCon) Gartmore GVIT ID (Investor Destinations) Moderate Fund (GVITIDMod) Gartmore GVIT ID (Investor Destinations) Moderately Aggressive Fund (GVITIDModAgg) Gartmore GVIT ID (Investor Destinations) Moderately Conservative Fund (GVITIDModCon) Gartmore GVIT International Growth Fund - Class I (GVITIntGro) Gartmore GVIT Money Market Fund - Class I (GVITMyMkt) Gartmore GVIT Nationwide(R) Leaders Fund - Class I (GVITLead) Gartmore GVIT Small Cap Growth Fund - Class I (GVITSmCapGr) Gartmore GVIT Small Cap Value Fund - Class I (GVITSmCapVal) Gartmore GVIT Small Company Fund - Class I (GVITSmComp) Gartmore GVIT Total Return Fund - Class I (GVITTotRt) Gartmore GVIT U.S. Growth Leaders Fund - Class I (GVITUSGro) Portfolios of the Janus Aspen Series (Janus AS); Janus AS - Capital Appreciation Portfolio - Service Shares (JanCapAp) Janus AS - Global Technology Portfolio - Service Shares (JanGITech) Janus AS - International Growth Portfolio - Service Shares (JanIntGro) MAS GVIT (formerly Nationwide(R) SAT) Multi Sector Bond Fund - Class I (MGVITMultiSec) Portfolios of the Neuberger Berman Advisers Management Trust (Neuberger Berman AMT); Neuberger Berman AMT - Balanced Portfolio (NBAMTBal) Neuberger Berman AMT - Growth Portfolio (NBAMTGro) Neuberger Berman AMT - Guardian Portfolio (NBAMTGuard) Neuberger Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat) Neuberger Berman AMT - Partners Portfolio (NBAMTPart) Funds of the Oppenheimer Variable Account Funds; Oppenheimer Aggressive Growth Fund/VA - Initial Class (OppAggGro) Oppenheimer Bond Fund/VA - Initial Class (OppBdFd) Oppenheimer Capital Appreciation Fund/VA - Initial Class (OppCapAp) Oppenheimer Global Securities Fund/VA - Initial Class (OppGlSec) Oppenheimer Main Street Growth & Income Fund/VA - Initial Class (OppMSGrInc) Oppenheimer Multiple Strategies Fund/VA - Initial Class (OppMultStr) Strong GVIT (formerly Nationwide(R) SAT) Mid Cap Growth Fund - Class I (SGVITMdCpGr) Strong Opportunity Fund II, Inc. (StOpp2) Funds of the Strong Variable Insurance Funds, Inc (Strong VIF); Strong VIF - Strong Discovery Fund II (StDisc2) Strong VIF - Strong International Stock Fund II (StIntStk2) Turner GVIT (formerly Nationwide(R) SAT) Growth Focus Fund - Class I (TurnGVITGro) Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT); Van Eck WIT - Worldwide Bond Fund (VEWrldBd) Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt) Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs) (Continued) 33 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued Funds of the Van Kampen Universal Institutional Funds (Van Kampen UIF); Van Kampen UIF - Emerging Markets Debt Portfolio (VKEmMkt) Van Kampen UIF - U.S. Real Estate Portfolio (VKUSRealEst) At December 31, 2002, contract owners have invested in all of the above funds except those noted with an asterisk (*). The contract owners' equity is affected by the investment results of each fund, equity transactions by contract owners and certain contract expenses (see notes 2 and 3). 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 fair value of the underlying mutual funds is based on the closing net asset value per share at December 31, 2002. Fund purchases and sales are accounted for on the trade date (date the order to buy or sell is executed). The cost of investments sold is determined on a specific identification basis, and dividends (which include capital gain distributions) are accrued as of 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 provisions of 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 accounting principles generally accepted in the United States of America 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 Premiums For single premium and modified single premium contracts, no deduction is made from any premium at the time of payment. On multiple payment contracts and flexible premium contracts, the Company deducts a charge for state premium taxes equal to 2.5% of all premiums received to cover the payment of these premium taxes. The Company also deducts a sales load from each premium payment received not to exceed 3.5% of each premium payment. On last survivor flexible premium contracts, the Company deducts a charge for state premium taxes equal to 3.5% of all premiums received to cover the payment of these premium taxes. The Company also deducts a sales load from each premium payment received not to exceed 5% of each premium payment during the first ten years and 1.5% of each premium payment thereafter. The Company may at its sole discretion reduce this sales loading. 34 (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). For last survivor flexible premium contracts, the monthly cost of insurance is determined in a manner that reflects the anticipated mortality of the two insureds and the fact that the death benefit is not payable until the death of the second insured policyholder. (c) Administrative Charges An administrative charge is assessed against each contract to recover policy maintenance, accounting, record keeping and other administrative expenses and is assessed against each contract by liquidating units. For single premium contracts, the Company deducts an annual administrative charge which is determined as follows: Contracts issued prior to April 16, 1990: Purchase payments totalling less than $25,000 - $10/month Purchase payments totalling $25,000 or more - none Contracts issued on or after April 16, 1990: Purchase payments totalling less than $25,000 - $90/year ($65/year in New York) Purchase payments totalling $25,000 or more - $50/year For multiple payment contracts, the Company currently deducts a monthly administrative charge of $5 (not to exceed $7.50 per month). For flexible premium contracts, the Company currently deducts a monthly administrative charge of $12.50 during the first policy year. For all subsequent years, a monthly administrative charge is deducted (currently $5 per month not to exceed $7.50). Additionally, the Company deducts an increase charge of $0.17 per year per $1,000 applied to any increase in the specified amount during the first 12 months after the increase becomes effective. For modified single premium contracts, the monthly charge is equal to an annual rate of 0.80% multiplied by the policy's cash value to cover administrative, premium tax and deferred acquisition costs. For policy years 11 and later, this monthly charge is reduced to an annual rate of 0.65% of the policy's cash value. The monthly charge is subject to a $10 minimum. For last survivor flexible premium contracts, the Company deducts a monthly administrative charge equal to the sum of the policy charge and the basic coverage charge. For policy years one through ten the policy charge is $10. Additionally, there is a $0.04 per $1,000 basic coverage charge (not less than $20 or more than $80 per policy per year). For policy years eleven and after, the policy charge is $5. Additionally, there is a $0.02 (not to exceed $0.04) per $1,000 basic coverage charge (not less than $10 or more than $40 per policy per year). (d) Surrender Charges Policy surrenders result in a redemption of the contract value from the Account and payment of the surrender proceeds to the contract owner or designee. The surrender proceeds consist of the contract value, less any outstanding policy loans, and less a surrender charge, if applicable. The charge is determined according to contract type. For single premium contracts, the charge is determined based upon a specified percentage of the original purchase payment. For single premium contracts issued prior to April 16, 1990, the charge is 8% in the first year and declines to 0% after the ninth year. For single premium contracts issued on or after April 16, 1990, the charge is 8.5% in the first year, and declines to 0% after the ninth year. However, if a policy increases, the amount of the increase will have a nine-year surrender charge period. (Continued) 35 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued For multiple payment contracts and flexible premium contracts, the amount charged is based upon a specified percentage of the initial surrender charge, which varies by issue age, sex and rate class. The charge is 100% of the initial surrender charge in the first year, declining to 0% after the ninth year. However, if a policy increases, the amount of the increase will have a nine-year surrender charge period. For modified single premium contracts, the amount charged is based on the original purchase payment. The charge is 10% in the first year, declining to 0% in the ninth year. For last survivor flexible premium contracts, the charge is 100% of the initial surrender charge, declining to 0% in the ninth year. However, if a policy increases, the amount of the increase will have a nine-year surrender charge period. For last survivor flexible payment contracts, the initial surrender charge is comprised of two components, an underwriting surrender charge and a sales surrender charge. The Company may waive the surrender charge for certain contracts in which the sales expenses normally associated with the distribution of a contract are not incurred. (3) Asset Charges For single premium contracts, the Company deducts a charge from the contract to cover mortality and expense risk charges related to operations, and to recover policy maintenance and premium tax charges. For contracts issued prior to April 16, 1990, the charge is equal to an annual rate of 0.95% during the first ten policy years, and 0.50% thereafter. A reduction of charges on these contracts is possible in policy years six through ten for those contracts achieving certain investment performance criteria. For single premium contracts issued on or after April 16, 1990, the charge is equal to an annual rate of 1.30% during the first ten policy years, and 1.00% thereafter. The above charges are assessed through the daily unit value calculation and are reflected in the table below. For multiple payment contracts and flexible premium contracts, the Company deducts a charge equal to an annual rate of 0.80%, with certain exceptions, to cover mortality and expense risk charges related to operations. The above charges are assessed through the daily unit value calculation and are reflected in the table below. For modified single premium contracts (MSP), the Company deducts an annual rate of 0.70% charged against the cash value of the contracts in the variable account. This charge is assessed monthly against each contract by liquidating units. For last survivor flexible premium contracts (LSFP), the Company deducts an annual rate of 0.80% in policy years one through ten. This charge is assessed monthly by liquidating units. In policy years eleven and greater, the Company deducts an annual rate of 0.50% if the cash value of the contract is greater than $25,000 and is less than $100,000. If the cash value is greater than or equal to $100,000, the Company reduces the annual asset fee rate to 0.30%. The following table provides mortality, expense and administration charges by contract type for the period ended December 31, 2002:
Total ACVPBal ACVPCapAp ACVPIncGr ACVPInt ---------- ------- --------- --------- ------- Single Premium contracts issued prior to April 16, 1990 ...... $ 6,498 -- 365 -- -- Single Premium contracts issued on or after April 16, 1990 ... 1,066,165 6,788 18,641 3,886 13,963 Multiple Payment and Flexible Premium contracts ............ 5,201,482 29,202 87,672 22,079 78,311 ---------- ------ ------- ------ ------ Total ..................... $6,274,145 35,990 106,678 25,965 92,274 ========== ====== ======= ====== ======
36
ACVPUltra ACVPVal CSGPVen CSIntEq CSSmCapGr --------- ------- ------- ------- -------- Single Premium contracts issued prior to April 16, 1990 ...... $ -- -- -- -- -- Single Premium contracts issued on or after April 16, 1990 ... 6 20,765 702 6,468 10,937 Multiple Payment and Flexible Premium contracts ............ 187 67,751 7,064 37,630 86,058 ---- ------ ----- ------ ------ Total ...................... $193 88,516 7,766 44,098 96,995 ==== ====== ===== ====== ======
DryMidCapIx DryEuroEq DrySmCapIxS DrySRGro DryStkIx ----------- --------- ----------- -------- -------- Single Premium contracts issued prior to April 16, 1990 ...... $ -- -- -- -- 127 Single Premium contracts issued on or after April 16, 1990 ... 6,691 94 -- 5,217 54,819 Multiple Payment and Flexible Premium contracts ............ 23,848 326 143 74,900 485,159 ------- --- --- ------ ------- Total ..................... $30,539 420 143 80,117 540,105 ======= === === ====== =======
DryVIFApp DryVIFGrInc FedQualBd FidVIPEI FidVIPGr --------- ----------- --------- -------- -------- Single Premium contracts issued prior to April 16, 1990 ...... $ -- -- -- 653 786 Single Premium contracts issued on or after April 16, 1990 ... 11,997 1,759 251 112,834 108,647 Multiple Payment and Flexible Premium contracts ............ 35,870 14,448 3,726 424,404 634,626 ------- ------ ----- ------- ------- Total ..................... $47,867 16,207 3,977 537,891 744,059 ======= ====== ===== ======= =======
FidVIPHI FidVIPOv FidVIPAM FidVIPCon FidVIPGrOP -------- -------- -------- --------- ---------- Single Premium contracts issued prior to April 16, 1990 ...... $ 201 241 154 -- 51 Single Premium contracts issued on or after April 16, 1990 ... 25,297 25,028 56,105 53,714 1,780 Multiple Payment and Flexible Premium contracts ............ 98,245 96,072 145,867 312,804 22,912 -------- ------- ------- ------- ------ Total ..................... $123,743 121,341 202,126 366,518 24,743 ======== ======= ======= ======= ======
FidVIPValStS GVITEmMrkts GVITGIFin GVITGIHlth GVITGITech ------------ ----------- --------- ---------- ---------- Single Premium contracts issued prior to April 16, 1990 ...... $ -- -- -- -- -- Single Premium contracts issued on or after April 16, 1990 ... 84 816 90 291 240 Multiple Payment and Flexible Premium contracts ............ 232 3,022 55 106 1,998 ---- ----- -- --- ----- Total ..................... $316 3,838 145 397 2,238 ==== ===== === === =====
GVITGlUtl GVITGvtBd GVITGrowth GVITIDAgg GVITIDCon --------- --------- ---------- --------- --------- Single Premium contracts issued prior to April 16, 1990 ...... $-- 177 -- -- -- Single Premium contracts issued on or after April 16, 1990 ... 50 73,009 5,894 -- -- Multiple Payment and Flexible Premium contracts ............ 13 94,534 109,759 965 731 --- ------- ------- --- --- Total ..................... $63 167,720 115,653 965 731 === ======= ======= === ===
(Continued) 37 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
GVITIDMod GVITIDModAgg GVITIDModCon GVITIntGro GVITMyMkt --------- ------------ ------------ ---------- --------- Single Premium contracts issued prior to April 16, 1990 ...... $ -- -- -- -- 673 Single Premium contracts issued on or after April 16, 1990 ... 13 -- 4 114 144,133 Multiple Payment and Flexible Premium contracts ............ 1,240 3,289 777 219 239,044 ------ ----- --- --- ------- Total ..................... $1,253 3,289 781 333 383,850 ====== ===== === === =======
GVITLead GVITSmCapGr GVITSmCapVal GVITSmComp GVITTotRt -------- ----------- ------------ ---------- --------- Single Premium contracts issued prior to April 16, 1990 ...... $ -- -- 502 79 179 Single Premium contracts issued on or after April 16, 1990 ... 97 795 22,799 11,024 29,699 Multiple Payment and Flexible Premium contracts ............ 358 8,210 69,886 154,996 493,332 ---- ----- ------ ------- ------- Total ..................... $455 9,005 93,187 166,099 523,210 ==== ===== ====== ======= =======
GVITUSGro JanCapAp JanGITech JanIntGro MGVITMultiSec --------- -------- --------- --------- ------------- Single Premium contracts issued prior to April 16, 1990 ...... $ -- -- -- -- -- Single Premium contracts issued on or after April 16, 1990 ... 71 946 1,129 4,538 517 Multiple Payment and Flexible Premium contracts ............. 48 16,748 7,758 11,569 5,232 ---- ------ ----- ------ ----- Total ..................... $119 17,694 8,887 16,107 5,749 ==== ====== ===== ====== =====
NBAMTBal NBAMTGro NBAMTGuard NBAMTLMat NBAMTPart -------- -------- ---------- --------- --------- Single Premium contracts issued prior to April 16, 1990 ...... $ -- 417 -- 203 -- Single Premium contracts issued on or after April 16, 1990 ... -- 18,507 750 19,246 12,644 Multiple Payment and Flexible Premium contracts ............ 346 108,540 13,946 29,182 127,150 ---- ------- ------ ------ ------- Total ..................... $346 127,464 14,696 48,631 139,794 ==== ======= ====== ====== =======
OppAggGro OppBdFd OppCapAp OppGlSec OppMSGrInc --------- ------- -------- -------- ---------- Single Premium contracts issued prior to April 16, 1990 ...... $ -- -- 246 -- -- Single Premium contracts issued on or after April 16, 1990 ... 690 18,669 14,056 25,041 979 Multiple Payment and Flexible Premium contracts ............ 10,021 81,951 91,920 197,144 5,316 ------- ------- ------- ------- ----- Total ..................... $10,711 100,620 106,222 222,185 6,295 ======= ======= ======= ======= =====
OppMultStr SGVITMdCpGr StOpp2 StDisc2 StIntStk2 ---------- ----------- ------- ------- --------- Single Premium contracts issued prior to April 16, 1990 ...... $ -- -- 308 -- -- Single Premium contracts issued on or after April 16, 1990 ... 23,766 763 38,303 7,782 3,129 Multiple Payment and Flexible Premium contracts ............ 81,102 7,390 243,071 44,421 11,672 -------- ----- ------- ------ ------ Total ..................... $104,868 8,153 281,682 52,203 14,801 ======== ===== ======= ====== ======
38
TurnGVITGro VEWrldBd VEWrldEMkt VEWrldHAs VKEmMkt ----------- -------- ---------- --------- ------- Single Premium contracts issued prior to April 16, 1990 ...... $ -- 85 479 240 69 Single Premium contracts issued on or after April 16, 1990 ... 87 8,017 4,616 7,523 2,252 Multiple Payment and Flexible Premium contracts ............ 1,396 18,712 25,790 21,651 7,305 ------ ------ ------ ------ ----- Total ..................... $1,483 26,814 30,885 29,414 9,626 ====== ====== ====== ====== =====
VKUSRealEst ----------- Single Premium contracts issued prior to April 16, 1990 ...... $ 263 Single Premium contracts issued on or after April 16, 1990 ... 16,603 Multiple Payment and Flexible Premium contracts ............ 60,031 ------- Total ..................... $76,897 ======= (4) Death Benefits Death benefit proceeds result in a redemption of the contract value from the Account and payment of those proceeds, less any outstanding policy loans (and policy charges), to the legal beneficiary. For last survivor flexible premium contracts, the proceeds are payable on the death of the last surviving insured. In the event that the guaranteed death benefit exceeds the contract value on the date of death, the excess is paid by the Company's general account. (5) Policy Loans (Net of Repayments) Contract provisions allow contract owners to borrow up to 90% (50% during first year of single and modified single premium contracts) of a policy's cash surrender value. For single premium contracts issued prior to April 16, 1990, 6.5% interest is due and payable annually in advance. For single premium contracts issued on or after April 16, 1990, multiple payment, flexible premium, modified single and last survivor flexible premium contracts, 6% interest is due and payable in advance on the policy anniversary when there is a loan outstanding on the policy. 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. Loan repayments result in a transfer of collateral, including interest, back to the Account. (6) 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, share- holder 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. Contract owners may, with certain restrictions, transfer their assets between the Account and a fixed dollar contract (fixed account) maintained in the accounts of the Company. The fixed account assets are not reflected in the accompanying financial statements. In addition, the Account portion of contract owner loans is transferred to the accounts of the Company for administration and collection. Loan repayments are transferred to the Account at the direction of the contract owner. For the years ended December 31, 2002 and 2001, total transfers to the Account from the fixed account were $23,397,486 and $21,729,153, respectively, and total transfers from the Account to the fixed account were $42,106,553 and $31,605,235, respectively. Transfers from the Account to the fixed account are included in surrenders, and transfers to the Account from the fixed account are included in purchase payments received from contract owners, as applicable, on the accompanying Statements of Changes in Contract Owners' Equity. (Continued) 39 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued (7) Financial Highlights The following is a summary of units, unit fair values and contract owners' equity outstanding for variable life and annuity contracts as of the end of the period indicated, and the contract expense rate, investment income ratio and total return for each period in the five year period ended December 31, 2002.
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Modified Single Premium contracts and Last Survivor Flexible Premium contracts: American Century VP Balanced Fund - Class I 2002 ............................. 0.00% 41,666 $13.698528 $ 570,763 2.63% -9.56% 2001 ............................. 0.00% 46,974 15.146118 711,474 2.81% -3.54% 2000 ............................. 0.00% 46,479 15.701900 729,809 2.45% -2.65% 1999 ............................. 0.00% 47,439 16.129489 765,167 1.78% 10.06% 1998 ............................. 0.00% 40,224 14.655512 589,503 1.59% 15.77% American Century VP Capital Appreciation Fund - Class I 2002 ............................. 0.00% 84,319 8.776539 740,029 0.00% -21.20% 2001 ............................. 0.00% 113,954 11.137742 1,269,190 0.00% -28.07% 2000 ............................. 0.00% 136,380 15.483078 2,111,582 0.00% 9.03% 1999 ............................. 0.00% 67,671 14.200282 960,947 0.00% 64.52% 1998 ............................. 0.00% 56,709 8.631172 489,465 0.00% -2.16% American Century VP Income & Growth Fund - Class I 2002 ............................. 0.00% 52,727 8.513147 448,873 1.10% -19.37% 2001 ............................. 0.00% 53,217 10.558315 561,882 0.81% -8.35% 2000 ............................. 0.00% 51,494 11.520561 593,240 0.55% -10.62% 1999 ............................. 0.00% 90,023 12.888778 1,160,286 0.02% 18.02% 1998 ............................. 0.00% 49,568 10.920877 541,326 0.94% 9.21% 5/1/98 American Century VP International Fund - Class I 2002 ............................. 0.00% 108,743 11.680067 1,270,126 0.79% -20.37% 2001 ............................. 0.00% 111,542 14.668200 1,636,120 0.09% -29.17% 2000 ............................. 0.00% 143,626 20.710054 2,974,502 0.14% -16.83% 1999 ............................. 0.00% 120,278 24.899615 2,994,876 0.00% 64.04% 1998 ............................. 0.00% 109,633 15.178805 1,664,098 0.48% 18.76% American Century VP Ultra Fund - Class I 2002 ............................. 0.00% 2,062 8.038471 16,575 0.46% -19.62% 5/1/02 American Century VP Value Fund - Class I 2002 ............................. 0.00% 105,282 15.482416 1,630,020 0.90% -12.62% 2001 ............................. 0.00% 98,909 17.718442 1,752,513 0.95% 12.82% 2000 ............................. 0.00% 53,790 15.704757 844,759 0.73% 18.14% 1999 ............................. 0.00% 42,323 13.293167 562,607 0.93% -0.85% 1998 ............................. 0.00% 39,670 13.407134 531,861 0.64% 4.81% Credit Suisse Trust - Global Post-Venture Capital Portfolio 2002 ............................. 0.00% 11,260 7.643060 86,061 0.00% -34.16% 2001 ............................. 0.00% 12,080 11.607891 140,223 0.00% -28.63% 2000 ............................. 0.00% 19,402 16.265390 315,581 0.00% -18.94% 1999 ............................. 0.00% 14,680 20.065541 294,562 0.00% 63.50% 1998 ............................. 0.00% 4,122 12.272697 50,588 0.00% 6.51%
40
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Credit Suisse Trust - International Focus Portfolio 2002 ............................. 0.00% 115,124 $ 7.241185 $ 833,634 0.00% -19.90% 2001 ............................. 0.00% 120,573 9.040640 1,090,057 0.00% -22.27% 2000 ............................. 0.00% 119,996 11.631433 1,395,725 0.45% -25.90% 1999 ............................. 0.00% 142,042 15.696053 2,229,499 0.93% 53.43% 1998 ............................. 0.00% 132,142 10.230064 1,351,821 0.52% 5.35% Credit Suisse Trust - Small Cap Growth Portfolio 2002 ............................. 0.00% 132,124 8.514305 1,124,944 0.00% -33.69% 2001 ............................. 0.00% 185,522 12.840185 2,382,137 0.00% -16.01% 2000 ............................. 0.00% 212,377 15.287247 3,246,660 0.00% -18.11% 1999 ............................. 0.00% 154,684 18.668523 2,887,722 0.00% 69.08% 1998 ............................. 0.00% 131,376 11.041376 1,450,572 0.00% -2.85% Dreyfus GVIT Mid Cap Index Fund - Class I 2002 ............................. 0.00% 57,522 8.791459 505,702 0.42% -15.30% 2001 ............................. 0.00% 37,983 10.379883 394,259 0.54% -1.30% 2000 ............................. 0.00% 15,903 10.517026 167,252 0.56% 5.17% 5/1/00 Dreyfus IP - European Equity Portfolio 2001 ............................. 0.00% 133 6.722485 894 0.84% -28.13% 2000 ............................. 0.00% 2,553 9.353456 23,879 0.42% -9.65% Dreyfus IP - Small Cap Stock Index Portfolio - Service Class 2002 ............................. 0.00% 4,411 7.67524 33,855 0.27% -23.25% 5/1/02 Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares 2002 ............................. 0.00% 57,964 11.828136 685,606 0.21% -28.94% 2001 ............................. 0.00% 72,096 16.646416 1,200,140 0.06% -22.57% 2000 ............................. 0.00% 87,987 21.499776 1,891,701 0.81% -11.03% 1999 ............................. 0.00% 72,077 24.166067 1,741,818 0.02% 30.08% 1998 ............................. 0.00% 59,391 18.577940 1,103,362 0.19% 29.38% Dreyfus Stock Index Fund 2002 ............................. 0.00% 584,757 14.572787 8,521,539 1.31% -22.36% 2001 ............................. 0.00% 599,693 18.770165 11,256,337 1.06% -12.18% 2000 ............................. 0.00% 591,538 21.373424 12,643,192 0.96% -9.28% 1999 ............................. 0.00% 619,532 23.560156 14,596,271 1.11% 20.60% 1998 ............................. 0.00% 451,985 19.535151 8,829,595 1.37% 28.21% Dreyfus VIF - Appreciation Portfolio - Initial Shares 2002 ............................. 0.00% 76,442 11.167894 853,696 1.14% -16.71% 2001 ............................. 0.00% 81,387 13.409044 1,091,322 0.84% -9.31% 2000 ............................. 0.00% 68,662 14.785375 1,015,193 0.63% -0.65% 1999 ............................. 0.00% 54,118 14.882433 805,408 0.70% 11.46% 1998 ............................. 0.00% 32,649 13.352746 435,954 0.97% 30.22% Dreyfus VIF - Growth and Income Portfolio - Initial Shares 2002 ............................. 0.00% 42,290 10.263905 434,061 0.60% -25.33% 2001 ............................. 0.00% 42,969 13.745232 590,619 0.50% -5.85% 2000 ............................. 0.00% 50,580 14.598583 738,396 0.61% -3.78% 1999 ............................. 0.00% 42,510 15.172345 644,976 0.65% 16.88% 1998 ............................. 0.00% 33,423 12.980656 433,852 1.05% 11.81% Federated Quality Bond Fund II - Primary Shares 2002 ............................. 0.00% 11,620 10.782678 125,295 0.00% 7.83% 5/1/02
(Continued) 41 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Fidelity(R) VIP - Equity-Income Portfolio: Initial Class 2002 ............................. 0.00% 407,426 $14.041601 $ 5,720,913 1.77% -16.95% 2001 ............................. 0.00% 431,008 16.906669 7,286,910 1.70% -4.96% 2000 ............................. 0.00% 410,082 17.788146 7,294,598 1.65% 8.42% 1999 ............................. 0.00% 442,948 16.406894 7,267,401 1.45% 6.33% 1998 ............................. 0.00% 424,796 15.430209 6,554,691 1.30% 11.63% Fidelity(R) VIP - Growth Portfolio: Initial Class 2002 ............................. 0.00% 408,322 12.670716 5,173,732 0.25% -30.10% 2001 ............................. 0.00% 464,650 18.128151 8,423,245 0.08% -17.65% 2000 ............................. 0.00% 494,090 22.013206 10,876,505 0.12% -10.98% 1999 ............................. 0.00% 462,592 24.728511 11,439,211 0.15% 37.44% 1998 ............................. 0.00% 312,967 17.992701 5,631,122 0.41% 39.49% Fidelity(R) VIP - High Income Portfolio: Initial Class 2002 ............................. 0.00% 277,242 9.334381 2,587,882 9.29% 3.44% 2001 ............................. 0.00% 268,872 9.023656 2,426,208 13.67% -11.73% 2000 ............................. 0.00% 251,453 10.222956 2,570,593 7.66% -22.47% 1999 ............................. 0.00% 301,341 13.186454 3,973,619 9.63% 8.15% 1998 ............................. 0.00% 328,441 12.192188 4,004,414 7.35% -4.33% Fidelity(R) VIP - Overseas Portfolio: Initial Class 2002 ............................. 0.00% 100,989 9.729244 982,547 0.83% -20.28% 2001 ............................. 0.00% 100,976 12.204145 1,232,326 5.37% -21.17% 2000 ............................. 0.00% 109,074 15.480896 1,688,563 1.56% -19.11% 1999 ............................. 0.00% 121,065 19.137888 2,316,928 1.25% 42.63% 1998 ............................. 0.00% 94,348 13.418281 1,265,988 1.80% 12.75% Fidelity(R) VIP II - Asset Manager: Growth Portfolio: Service Class 2002 ............................. 0.00% 87,642 14.294216 1,252,774 3.98% -8.73% 2001 ............................. 0.00% 97,209 15.661062 1,522,396 4.21% -4.09% 2000 ............................. 0.00% 97,054 16.328861 1,584,781 3.30% -3.93% 1999 ............................. 0.00% 98,987 16.996678 1,682,450 3.18% 11.09% 1998 ............................. 0.00% 96,546 15.299714 1,477,126 2.96% 15.05% Fidelity(R) VIP II - Contrafund Portfolio: Initial Class 2002 ............................. 0.00% 278,231 16.754926 4,661,740 0.85% -9.35% 2001 ............................. 0.00% 310,919 18.482808 5,746,656 0.78% -12.24% 2000 ............................. 0.00% 339,730 21.061590 7,155,254 0.36% -6.62% 1999 ............................. 0.00% 334,798 22.555449 7,551,519 0.43% 24.25% 1998 ............................. 0.00% 294,323 18.152724 5,342,764 0.53% 29.98% Fidelity(R) VIP III - Growth Opportunities Portfolio: Initial Class 2002 ............................. 0.00% 51,868 7.927585 411,188 1.07% -21.84% 2001 ............................. 0.00% 59,212 10.143319 600,606 0.38% -14.42% 2000 ............................. 0.00% 67,837 11.852480 804,037 1.30% -17.07% 1999 ............................. 0.00% 67,209 14.291602 960,524 0.94% 4.27% 1998 ............................. 0.00% 54,891 13.706120 752,343 0.58% 24.61% Fidelity(R) VIP III - Value Strategies Portfolio: Service Class 2002 ............................. 0.00% 843 7.509507 6,331 0.00% -24.90% 5/1/02
42
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Gartmore GVIT Emerging Markets Fund - Class I 2002 ............................. 0.00% 7,501 $ 7.002885 $ 52,529 0.17% -15.23% 2001 ............................. 0.00% 27,272 8.260926 225,292 0.52% -5.18% Gartmore GVIT Global Financial Services Fund - Class I 2002 ............................. 0.00% 289 8.663891 2,504 0.08% -13.36% 5/1/02 Gartmore GVIT Global Health Sciences Fund - Class I 2002 ............................. 0.00% 1,753 8.340128 14,620 0.00% -16.60% 5/1/02 Gartmore GVIT Global Technology and Communications Fund - Class I 2002 ............................. 0.00% 11,606 1.972253 22,890 0.59% -42.78% 2001 ............................. 0.00% 2,536 3.446837 8,741 0.00% -42.72% 2000 ............................. 0.00% 2,596 6.017639 15,622 0.00% -39.82% 10/2/00 Gartmore GVIT Global Utilities Fund - Class I 2002 ............................. 0.00% 250 8.683837 2,171 0.54% -13.16% 5/1/02 Gartmore GVIT Government Bond Fund - Class I 2002 ............................. 0.00% 215,754 16.685161 3,599,890 4.42% 10.98% 2001 ............................. 0.00% 192,314 15.033937 2,891,237 5.12% 7.25% 2000 ............................. 0.00% 147,694 14.017108 2,070,243 5.25% 12.54% 1999 ............................. 0.00% 146,891 12.455412 1,829,588 5.74% -2.35% 1998 ............................. 0.00% 100,956 12.754801 1,287,674 5.51% 8.91% Gartmore GVIT Growth Fund - Class I 2002 ............................. 0.00% 160,573 7.964177 1,278,832 0.00% -28.72% 2001 ............................. 0.00% 169,484 11.173143 1,893,669 0.00% -28.13% 2000 ............................. 0.00% 202,780 15.547089 3,152,639 0.18% -26.53% 1999 ............................. 0.00% 234,699 21.161942 4,966,687 0.66% 4.28% 1998 ............................. 0.00% 207,778 20.293858 4,216,617 0.78% 29.96% Gartmore GVIT ID Conservative Fund 2002 ............................. 0.00% 10,505 10.050418 105,580 2.80% 0.50% 1/25/02 Gartmore GVIT ID Moderate Fund 2002 ............................. 0.00% 14,854 9.140249 135,769 1.72% -8.60% 1/25/02 Gartmore GVIT ID Moderately Aggressive Fund 2002 ............................. 0.00% 14,728 8.687687 127,952 1.55% -13.12% 1/25/02 Gartmore GVIT ID Moderately Conservative Fund 2002 ............................. 0.00% 9,155 9.642427 88,276 2.35% -3.58% 1/25/02 Gartmore GVIT Money Market Fund - Class I 2002 ............................. 0.00% 611,041 13.354620 8,160,220 1.26% 1.21% 2001 ............................. 0.00% 752,971 13.194770 9,935,279 3.57% 3.60% 2000 ............................. 0.00% 690,357 12.735851 8,792,284 5.53% 6.03% 1999 ............................. 0.00% 710,620 12.011954 8,535,935 5.04% 4.85% 1998 ............................. 0.00% 904,630 11.456534 10,363,924 5.48% 5.27% Gartmore GVIT Nationwide(R) Leaders Fund - Class I 2002 ............................. 0.00% 837 8.452459 7,075 1.18% -15.48% 5/1/02 Gartmore GVIT Small Cap Growth Fund - Class I 2002 ............................. 0.00% 39,937 4.829491 192,875 0.00% -33.29% 2001 ............................. 0.00% 28,981 7.239237 209,800 0.00% -10.84% 2000 ............................. 0.00% 5,428 8.119138 44,071 0.00% -18.81% 5/1/00
(Continued) 43 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Gartmore GVIT Small Cap Value Fund - Class I 2002 ............................. 0.00% 156,777 $11.427654 $1,791,593 0.01% -27.16% 2001 ............................. 0.00% 145,093 15.689204 2,276,394 0.03% 28.28% 2000 ............................. 0.00% 92,343 12.230652 1,129,415 0.00% 11.20% 1999 ............................. 0.00% 86,677 10.998838 953,346 0.00% 27.84% 1998 ............................. 0.00% 18,425 8.603810 158,525 0.00% -13.96% 5/1/98 Gartmore GVIT Small Company Fund - Class I 2002 ............................. 0.00% 161,607 15.090443 2,438,721 0.00% -17.33% 2001 ............................. 0.00% 171,105 18.253468 3,123,260 0.10% -6.70% 2000 ............................. 0.00% 232,635 19.565011 4,551,506 0.03% 8.90% 1999 ............................. 0.00% 210,131 17.966399 3,775,297 0.00% 44.02% 1998 ............................. 0.00% 170,740 12.475012 2,129,984 0.00% 1.01% Gartmore GVIT Total Return Fund - Class I 2002 ............................. 0.00% 343,472 13.342709 4,582,847 0.85% -17.35% 2001 ............................. 0.00% 370,050 16.144226 5,974,171 0.74% -11.82% 2000 ............................. 0.00% 383,717 18.308017 7,025,097 0.63% -2.12% 1999 ............................. 0.00% 408,867 18.704720 7,647,743 0.65% 6.94% 1998 ............................. 0.00% 377,762 17.490359 6,607,193 1.06% 18.07% Gartmore GVIT U.S. Growth Leaders Fund - Class I 2002 ............................. 0.00% 1,992 8.226323 16,387 0.00% -17.74% 5/1/02 Janus AS - Capital Appreciation Portfolio - Service Shares 2002 ............................. 0.00% 58,881 5.213836 306,996 0.30% -15.93% 2001 ............................. 0.00% 62,604 6.201616 388,246 0.91% -21.83% 2000 ............................. 0.00% 54,056 7.933369 428,846 1.33% -30.82% 5/1/00 Janus AS - Global Technology Portfolio - Service Shares 2002 ............................. 0.00% 54,722 2.510001 137,352 0.00% -40.93% 2001 ............................. 0.00% 58,616 4.249300 249,077 0.56% -37.31% 2000 ............................. 0.00% 51,067 6.778794 346,173 1.21% -20.67% 5/1/00 Janus AS - International Growth Portfolio - Service Shares 2002 ............................. 0.00% 43,393 4.520472 196,157 0.67% -25.76% 2001 ............................. 0.00% 37,721 6.088787 229,675 0.70% -23.43% 2000 ............................. 0.00% 28,662 7.951801 227,915 6.25% -20.48% 5/1/00 MAS GVIT (formerly Nationwide(R) SAT) Multi Sector Bond Fund - Class I 2002 ............................. 0.00% 12,174 11.720231 142,682 4.53% 7.21% 2001 ............................. 0.00% 2,363 10.932334 25,833 8.29% 4.19% 2000 ............................. 0.00% 3,146 10.492823 33,010 8.52% 4.93% 5/1/00 Neuberger Berman AMT - Growth Portfolio 2002 ............................. 0.00% 91,607 9.369018 858,268 0.00% -31.16% 2001 ............................. 0.00% 194,831 13.610476 2,651,743 0.00% -30.36% 2000 ............................. 0.00% 165,377 19.543829 3,232,100 0.00% -11.66% 1999 ............................. 0.00% 101,415 22.122463 2,243,550 0.00% 50.40% 1998 ............................. 0.00% 95,390 14.709510 1,403,140 0.00% 15.53%
44
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Neuberger Berman AMT - Guardian Portfolio 2002 ............................. 0.00% 40,952 $ 7.884759 $ 322,897 0.80% -26.45% 2001 ............................. 0.00% 42,795 10.719948 458,760 0.47% -1.51% 2000 ............................. 0.00% 31,192 10.883981 339,493 0.59% 1.13% 1999 ............................. 0.00% 28,718 10.762335 309,073 0.29% 14.93% 1998 ............................. 0.00% 15,552 9.364011 145,629 0.00% -6.36% 5/1/98 Neuberger Berman AMT - Limited Maturity Bond Portfolio 2002 ............................. 0.00% 78,261 14.496454 1,134,507 4.91% 5.34% 2001 ............................. 0.00% 53,267 13.761786 733,049 5.78% 8.78% 2000 ............................. 0.00% 48,744 12.650873 616,654 6.96% 6.78% 1999 ............................. 0.00% 73,941 11.847132 875,989 5.57% 1.48% 1998 ............................. 0.00% 72,201 11.674617 842,919 6.70% 4.39% Neuberger Berman AMT - Partners Portfolio 2002 ............................. 0.00% 211,641 12.510433 2,647,721 0.53% -24.14% 2001 ............................. 0.00% 214,234 16.491924 3,533,131 0.38% -2.83% 2000 ............................. 0.00% 218,683 16.971642 3,711,410 0.79% 0.07% 1999 ............................. 0.00% 229,651 16.853460 3,870,414 1.20% 7.37% 1998 ............................. 0.00% 241,826 15.696640 3,795,856 0.39% 4.21% Oppenheimer Aggressive Growth Fund/VA - Initial Class 2002 ............................. 0.00% 11,406 3.883303 44,293 0.65% -27.79% 2001 ............................. 0.00% 27,049 5.377832 145,465 0.87% -31.27% 2000 ............................. 0.00% 29,380 7.824211 229,875 0.00% -21.76% 5/1/00 Oppenheimer Bond Fund/VA - Initial Class 2002 ............................. 0.00% 126,813 15.258399 1,934,963 7.25% 9.08% 2001 ............................. 0.00% 120,742 13.988352 1,688,982 7.04% 7.79% 2000 ............................. 0.00% 108,962 12.977817 1,414,089 7.66% 6.10% 1999 ............................. 0.00% 101,438 12.232154 1,240,805 4.68% -1.52% 1998 ............................. 0.00% 90,724 12.420731 1,126,858 1.67% 6.80% Oppenheimer Capital Appreciation Fund/VA - Initial Class 2002 ............................. 0.00% 90,095 11.756809 1,059,230 0.64% -26.86% 2001 ............................. 0.00% 116,791 16.074008 1,877,299 0.64% -12.58% 2000 ............................. 0.00% 115,080 18.386180 2,115,882 0.12% -0.23% 1999 ............................. 0.00% 83,414 18.428739 1,537,215 0.17% 41.66% 1998 ............................. 0.00% 98,891 13.009524 1,286,525 0.28% 24.00% Oppenheimer Global Securities Fund/VA - Initial Class 2002 ............................. 0.00% 106,692 17.263833 1,841,913 0.56% -22.13% 2001 ............................. 0.00% 111,537 22.171331 2,472,924 0.69% -12.04% 2000 ............................. 0.00% 119,169 25.205074 3,003,663 0.27% 5.09% 1999 ............................. 0.00% 94,622 23.984739 2,269,484 0.92% 58.48% 1998 ............................. 0.00% 89,467 15.133929 1,353,987 2.07% 14.10% Oppenheimer Main Street Growth & Income Fund/VA - Initial Class 2002 ............................. 0.00% 30,456 6.605587 201,180 0.65% -18.80% 2001 ............................. 0.00% 21,240 8.134641 172,780 0.41% -10.16% 2000 ............................. 0.00% 10,745 9.054521 97,291 0.00% -9.45% 5/1/00
(Continued) 45 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Oppenheimer Multiple Strategies Fund/VA - Initial Class 2002 ............................. 0.00% 82,462 $14.902681 $1,228,905 3.60% -10.40% 2001 ............................. 0.00% 84,920 16.632670 1,412,446 3.96% 2.22% 2000 ............................. 0.00% 82,390 16.271709 1,340,626 4.57% 6.44% 1999 ............................. 0.00% 80,822 15.287602 1,235,575 3.30% 11.80% 1998 ............................. 0.00% 90,548 13.674340 1,238,184 0.88% 6.65% Strong GVIT Mid Cap Growth Fund - Class I 2002 ............................. 0.00% 49,103 3.578034 175,692 0.00% -37.01% 2001 ............................. 0.00% 15,083 5.680754 85,683 0.00% -30.31% 2000 ............................. 0.00% 15,341 8.151094 125,046 0.00% -18.49% 5/1/00 Strong Opportunity Fund II, Inc. 2002 ............................. 0.00% 98,264 15.542573 1,527,275 0.38% -26.82% 2001 ............................. 0.00% 103,859 21.238327 2,205,791 0.59% -3.70% 2000 ............................. 0.00% 96,471 22.004768 2,122,822 0.00% 6.60% 1999 ............................. 0.00% 85,543 20.690172 1,769,899 0.00% 34.91% 1998 ............................. 0.00% 85,559 15.336685 1,312,191 0.25% 13.54% Strong VIF - Strong Discovery Fund II 2002 ............................. 0.00% 20,094 11.864827 238,412 0.00% -12.02% 2001 ............................. 0.00% 22,035 13.485135 297,145 0.72% 4.08% 2000 ............................. 0.00% 25,155 12.955970 325,907 0.00% 4.39% 1999 ............................. 0.00% 19,763 12.410693 245,273 0.00% 5.09% 1998 ............................. 0.00% 20,724 11.809640 244,743 0.00% 7.26% Strong VIF - Strong International Stock Fund II 2002 ............................. 0.00% 57,275 5.361165 307,061 4.04% -26.54% 2001 ............................. 0.00% 55,640 7.298468 406,087 0.00% -22.14% 2000 ............................. 0.00% 51,648 9.373600 484,128 0.00% -39.52% 1999 ............................. 0.00% 91,170 15.499580 1,413,097 0.17% 87.20% 1998 ............................. 0.00% 36,980 8.279751 306,185 1.14% -4.78% Turner GVIT Growth Focus Fund - Class I 2002 ............................. 0.00% 5,450 2.210411 12,047 0.00% -42.86% Van Eck WIT - Worldwide Bond Fund 2002 ............................. 0.00% 39,706 13.162611 522,635 0.00% 21.66% 2001 ............................. 0.00% 15,977 10.819530 172,864 4.39% -5.10% 2000 ............................. 0.00% 15,146 11.400381 172,670 4.90% 1.87% 1999 ............................. 0.00% 16,613 11.191476 185,924 4.31% -7.82% 1998 ............................. 0.00% 21,531 12.141253 261,413 0.79% 12.75% Van Eck WIT - Worldwide Emerging Markets Fund 2002 ............................. 0.00% 99,351 6.515847 647,356 0.20% -2.90% 2001 ............................. 0.00% 79,757 6.710492 535,209 0.00% -1.81% 2000 ............................. 0.00% 91,301 6.834145 623,964 0.00% -41.87% 1999 ............................. 0.00% 175,122 11.755719 2,058,685 0.00% 100.28% 1998 ............................. 0.00% 41,962 5.869611 246,301 0.95% -34.13%
46
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Van Eck WIT - Worldwide Hard Assets Fund 2002 ............................. 0.00% 40,828 $ 8.006062 $ 326,871 0.68% -2.83% 2001 ............................. 0.00% 32,526 8.239575 268,000 1.21% -10.44% 2000 ............................. 0.00% 35,253 9.200485 324,345 1.12% 11.40% 1999 ............................. 0.00% 38,783 8.258894 320,305 1.47% 21.00% 1998 ............................. 0.00% 21,804 6.825397 148,821 0.69% -30.97% Van Kampen UIF - Emerging Markets Debt Portfolio 2002 ............................. 0.00% 36,681 12.250737 449,369 6.91% 9.22% 2001 ............................. 0.00% 33,534 11.216363 376,130 9.40% 10.10% 2000 ............................. 0.00% 33,493 10.187412 341,207 12.32% 11.39% 1999 ............................. 0.00% 25,999 9.146001 237,787 16.19% 29.37% 1998 ............................. 0.00% 6,444 7.069376 45,555 12.80% -28.38% Van Kampen UIF - U.S. Real Estate Portfolio 2002 ............................. 0.00% 52,407 19.795314 1,037,413 3.29% -0.79% 2001 ............................. 0.00% 58,299 19.952330 1,163,201 3.98% 9.84% 2000 ............................. 0.00% 57,529 18.164582 1,044,990 8.22% 28.06% 1999 ............................. 0.00% 53,125 14.184757 753,565 6.87% -3.37% 1998 ............................. 0.00% 58,853 14.679798 863,950 0.17% -11.62% Single Premium contracts issued prior to April 16, 1990 (policy years 11 and thereafter): American Century VP Balanced Fund - Class I 2002 ............................. 0.50% 2,665 17.589248 46,875 2.63% -10.01% American Century VP Capital Appreciation Fund - Class I 2002 ............................. 0.50% 13,972 22.346236 312,222 0.00% -21.59% 2001 ............................. 0.50% 2,922 28.500613 83,279 0.00% -28.43% 2000 ............................. 0.50% 7,428 39.820221 295,785 0.00% 8.49% 1999 ............................. 0.50% 6,108 36.406768 222,373 0.00% 63.70% 1998 ............................. 0.50% 6,437 22.339504 143,799 0.00% -2.73% American Century VP Income & Growth Fund - Class I 2002 ............................. 0.50% 7,837 8.316655 65,178 1.10% -19.77% American Century VP International Fund - Class I 2002 ............................. 0.50% 5,091 12.398163 63,119 0.79% -20.77% 2000 ............................. 0.50% 2,453 22.205291 54,470 0.14% -17.24% 1999 ............................. 0.50% 2,459 26.614141 65,444 0.00% 63.23% American Century VP Value Fund - Class I 2002 ............................. 0.50% 13,026 14.941112 194,623 0.90% -13.06% 2000 ............................. 0.50% 118 15.308543 1,806 0.73% 17.56% Credit Suisse Trust - Global Post-Venture Capital Portfolio 2002 ............................. 0.50% 1,728 7.375606 12,745 0.00% -34.49% 2000 ............................. 0.50% 4,740 15.854894 75,152 0.00% -19.34% Credit Suisse Trust - International Focus Portfolio 2002 ............................. 0.50% 2,769 8.184926 22,664 0.00% -20.30% 1998 ............................. 0.50% 1,777 11.754581 20,888 0.52% 4.73% Credit Suisse Trust - Small Cap Growth Portfolio 2002 ............................. 0.50% 6,039 11.748025 70,946 0.00% -34.02%
(Continued) 47 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------ ---------- -------------- ---------- --------- Dreyfus GVIT Mid Cap Index Fund - Class I 2002 ............................. 0.50% 7,249 $ 8.674888 $ 62,884 0.42% -15.73% Dreyfus IP - Small Cap Stock Index Portfolio - Service Class 2002 ............................. 0.50% 4,866 7.649570 37,223 0.27% -23.50% 5/1/02 Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares 2002 ............................. 0.50% 876 17.600806 15,418 0.21% -29.30% 1999 ............................. 0.50% 1,699 36.209915 61,521 0.02% 29.43% Dreyfus Stock Index Fund 2002 ............................. 0.50% 26,741 20.453144 546,938 1.31% -22.75% 2001 ............................. 0.50% 1,122 26.476528 29,707 1.06% -12.62% 2000 ............................. 0.50% 6,384 30.300792 193,440 0.96% -9.73% 1999 ............................. 0.50% 16,208 33.296352 539,667 1.11% 20.00% 1998 ............................. 0.50% 14,798 27.871347 412,440 1.37% 27.46% Dreyfus VIF - Appreciation Portfolio - Initial Shares 2002 ............................. 0.50% 7,627 10.834553 82,635 1.14% -17.13% 1999 ............................. 0.50% 868 14.538186 12,619 0.70% 10.90% 1998 ............................. 0.50% 876 13.168334 11,535 0.97% 28.99% Fidelity(R) VIP - Equity-Income Portfolio: Initial Class 2002 ............................. 0.50% 25,078 37.500399 940,435 1.77% -17.36% 2001 ............................. 0.50% 3,200 45.378727 145,212 1.70% -5.43% 2000 ............................. 0.50% 5,076 47.985530 243,575 1.65% 7.88% 1999 ............................. 0.50% 5,082 44.120448 224,220 1.45% 5.80% 1998 ............................. 0.50% 6,566 41.890019 275,050 1.30% 10.97% Fidelity(R) VIP - Growth Portfolio: Initial Class 2002 ............................. 0.50% 39,628 40.250246 1,595,037 0.25% -30.45% 2001 ............................. 0.50% 3,370 57.875878 195,042 0.08% -18.06% 2000 ............................. 0.50% 4,686 70.634432 330,993 0.12% -11.42% 1999 ............................. 0.50% 3,009 79.099308 238,010 0.15% 36.75% 1998 ............................. 0.50% 4,551 58.102055 264,422 0.41% 38.67% Fidelity(R) VIP - High Income Portfolio: Initial Class 2002 ............................. 0.50% 2,722 20.375870 55,463 9.29% 2.93% 2001 ............................. 0.50% 1,784 19.796324 35,317 13.67% -12.17% 2000 ............................. 0.50% 1,862 22.540543 41,970 7.66% -22.86% 1999 ............................. 0.50% 2,115 28.983767 61,301 9.63% 7.62% 1998 ............................. 0.50% 3,510 27.054068 94,960 7.35% -4.89% Fidelity(R) VIP - Overseas Portfolio: Initial Class 2002 ............................. 0.50% 16,114 17.300971 278,788 0.83% -20.68% 2001 ............................. 0.50% 2,274 21.810922 49,598 5.37% -21.56% 2000 ............................. 0.50% 2,500 27.806776 69,517 1.56% -19.51% 1999 ............................. 0.50% 4,084 34.268141 139,951 1.25% 41.92% 1998 ............................. 0.50% 4,966 24.255551 120,453 1.80% 12.09%
48
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------ ---------- -------------- ---------- --------- Fidelity(R) VIP II - Asset Manager: Growth Portfolio: Service Class 2002 ............................. 0.50% 7,255 $25.693764 $186,408 3.98% -9.18% 2001 ............................. 0.50% 1,169 28.291882 33,073 4.21% -4.57% 2000 ............................. 0.50% 1,178 29.647039 34,924 3.30% -4.41% 1999 ............................. 0.50% 1,185 30.762893 36,454 3.18% 10.54% 1998 ............................. 0.50% 1,193 27.955691 33,351 2.96% 14.38% Fidelity(R) VIP II - Contrafund Portfolio: Initial Class 2002 ............................. 0.50% 11,284 19.157346 216,171 0.85% -9.80% 1999 ............................. 0.50% 677 25.968332 17,581 0.43% 23.63% 1998 ............................. 0.50% 684 21.098746 14,432 0.53% 29.22% Fidelity(R) VIP III - Growth Opportunities Portfolio: Initial Class 2002 ............................. 0.50% 3,061 7.690844 23,542 1.07% -22.23% 2001 ............................. 0.50% 1,210 9.889817 11,967 0.38% -14.85% 2000 ............................. 0.50% 1,231 11.614608 14,298 1.30% -17.48% 1999 ............................. 0.50% 1,477 13.960952 20,620 0.94% 3.75% Gartmore GVIT Global Technology and Communications Fund - Class I 2002 ............................. 0.50% 2,129 1.950112 4,152 0.59% -43.07% Gartmore GVIT Government Bond Fund - Class I 2002 ............................. 0.50% 10,251 29.923916 306,750 4.42% 10.43% 2001 ............................. 0.50% 1,291 27.097613 34,983 5.12% 6.72% 2000 ............................. 0.50% 1,707 25.392104 43,344 5.25% 11.98% 1999 ............................. 0.50% 1,747 22.492327 39,294 5.74% -2.83% 1998 ............................. 0.50% 1,481 23.252862 34,437 5.51% 8.27% Gartmore GVIT Growth Fund - Class I 2002 ............................. 0.50% 10,305 12.105122 124,743 0.00% -29.08% 1999 ............................. 0.50% 1,979 32.388538 64,097 0.66% 3.76% 1998 ............................. 0.50% 2,354 31.356408 73,813 0.78% 29.20% Gartmore GVIT Money Market Fund - Class I 2002 ............................. 0.50% 12,207 18.546928 226,402 1.26% 0.71% 2001 ............................. 0.50% 7,295 18.417013 134,352 3.57% 3.08% 2000 ............................. 0.50% 12,856 17.866283 229,689 5.53% 5.50% 1999 ............................. 0.50% 16,350 16.794246 274,586 5.04% 4.32% 1998 ............................. 0.50% 9,477 16.171326 153,256 5.48% 4.67% Gartmore GVIT Small Cap Value Fund - Class I 2002 ............................. 0.50% 4,939 11.163801 55,138 0.01% -27.53% 2001 ............................. 0.50% 16,203 15.403979 249,591 0.03% 27.63% 2000 ............................. 0.50% 5,781 12.068870 69,770 0.00% 10.65% 1999 ............................. 0.50% 2,201 10.825871 23,828 0.00% 27.20% Gartmore GVIT Small Company Fund - Class I 2002 ............................. 0.50% 13,072 19.224829 251,307 0.00% -17.74% 2001 ............................. 0.50% 749 23.371178 17,505 0.10% -7.17% 2000 ............................. 0.50% 762 25.176901 19,185 0.03% 8.36% 1999 ............................. 0.50% 913 23.047417 21,042 0.00% 43.30%
(Continued) 49 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------ ---------- -------------- ---------- --------- Gartmore GVIT Total Return Fund - Class I 2002 ............................. 0.50% 3,981 $30.065207 $119,690 0.85% -17.77% 2001 ............................. 0.50% 1,162 36.560512 42,483 0.74% -12.26% 2000 ............................. 0.50% 1,319 41.669957 54,963 0.63% -2.61% 1999 ............................. 0.50% 4,738 42.439374 201,078 0.65% 6.41% 1998 ............................. 0.50% 4,462 40.062865 178,761 1.06% 17.38% Janus AS - Capital Appreciation Portfolio - Service Shares 2002 ............................. 0.50% 12,685 5.144661 65,260 0.30% -16.35% Janus AS - Global Technology Portfolio - Service Shares 2002 ............................. 0.50% 3,149 2.476639 7,799 0.00% -41.23% Janus AS - International Growth Portfolio - Service Shares 2002 ............................. 0.50% 12,584 4.460490 56,131 0.67% -26.13% MAS GVIT (formerly Nationwide(R) SAT) Multi Sector Bond Fund - Class I 2002 ............................. 0.50% 360 11.565028 4,163 4.53% 6.67% 2000 ............................. 0.50% 259 10.458203 2,709 8.52% 4.58% 5/1/00 Neuberger Berman AMT - Growth Portfolio 2002 ............................. 0.50% 5,671 22.757505 129,058 0.00% -31.51% 2001 ............................. 0.50% 3,126 33.226236 103,865 0.00% -30.71% 2000 ............................. 0.50% 3,192 47.952407 153,064 0.00% -12.09% 1999 ............................. 0.50% 3,041 54.109841 164,548 0.00% 49.65% 1998 ............................. 0.50% 4,910 36.321304 178,338 0.00% 14.85% Neuberger Berman AMT - Guardian Portfolio 2002 ............................. 0.50% 870 7.702769 6,701 0.80% -26.82% 1999 ............................. 0.50% 561 10.593122 5,943 0.29% 14.36% Neuberger Berman AMT - Limited Maturity Bond Portfolio 2002 ............................. 0.50% 4,156 21.947749 91,215 4.91% 4.81% 2001 ............................. 0.50% 2,817 20.939856 58,988 5.78% 8.24% 2000 ............................. 0.50% 6,082 19.346478 117,665 7.15% 6.25% 1999 ............................. 0.50% 5,986 18.060558 108,111 5.69% 0.97% 1998 ............................. 0.50% 5,842 17.967444 104,966 6.83% 3.78% Neuberger Berman AMT - Partners Portfolio 2002 ............................. 0.50% 7,065 18.314930 129,395 0.53% -24.52% 2000 ............................. 0.50% 72 25.096849 1,807 0.69% 0.20% Oppenheimer Aggressive Growth Fund/VA - Initial Class 2002 ............................. 0.50% 2,385 3.831748 9,139 0.65% -28.15% Oppenheimer Bond Fund/VA - Initial Class 2002 ............................. 0.50% 379 23.529109 8,918 7.25% 8.54% 2001 ............................. 0.50% 47 21.678723 1,019 7.04% 7.25% 2000 ............................. 0.50% 51 20.213946 1,031 7.66% 5.57% Oppenheimer Capital Appreciation Fund/VA - Initial Class 2002 ............................. 0.50% 9,164 11.405697 104,522 0.64% -27.22% 2001 ............................. 0.50% 8,487 15.672302 133,011 0.64% -13.02% 2000 ............................. 0.50% 6,917 18.017261 124,625 0.12% -0.73%
50
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------ ---------- -------------- ---------- --------- Oppenheimer Global Securities Fund/VA - Initial Class 2002 ............................. 0.50% 4,420 $20.644823 $ 91,250 0.56% -22.52% 2000 ............................. 0.50% 2,118 30.445645 64,484 0.27% 4.57% Oppenheimer Main Street Growth & Income Fund/VA - Initial Class 2002 ............................. 0.50% 3,493 6.518000 22,767 0.65% -19.20% Oppenheimer Multiple Strategies Fund/VA - Initial Class 2002 ............................. 0.50% 9,549 25.070852 239,402 3.60% -10.85% Strong Opportunity Fund II, Inc. 2002 ............................. 0.50% 10,474 29.855056 312,702 0.38% -27.18% 2001 ............................. 0.50% 3,831 41.000669 157,074 0.59% -4.19% 2000 ............................. 0.50% 447 42.694690 19,085 0.00% 6.07% 1999 ............................. 0.50% 450 40.018322 18,008 0.00% 34.23% 1998 ............................. 0.50% 452 29.946506 13,536 0.25% 12.88% Strong VIF - Strong Discovery Fund II 2002 ............................. 0.50% 2,071 19.001713 39,353 0.00% -12.45% Strong VIF - Strong International Stock Fund II 2002 ............................. 0.50% 392 5.758212 2,257 4.04% -26.91% Van Eck WIT - Worldwide Bond Fund 2002 ............................. 0.50% 4,159 17.737696 73,771 0.00% 21.05% 2001 ............................. 0.50% 1,086 14.653212 15,913 4.39% -5.57% 2000 ............................. 0.50% 1,105 15.517699 17,147 4.90% 1.36% 1999 ............................. 0.50% 1,325 15.185599 20,121 4.31% -8.28% 1998 ............................. 0.50% 264 16.631673 4,391 0.79% 12.09% Van Eck WIT - Worldwide Emerging Markets Fund 2002 ............................. 0.50% 32,774 6.287778 206,076 0.20% -3.39% 2000 ............................. 0.50% 407 6.661531 2,711 0.00% -42.15% 1999 ............................. 0.50% 6,267 11.423096 71,589 0.00% 99.29% Van Eck WIT - Worldwide Hard Assets Fund 2002 ............................. 0.50% 7,750 11.537923 89,419 0.68% -3.32% 2001 ............................. 0.50% 4 11.933986 48 1.21% -10.89% 2000 ............................. 0.50% 5 13.393001 67 1.12% 10.85% 1999 ............................. 0.50% 10 11.984540 120 1.47% 20.40% 1998 ............................. 0.50% 5,479 9.998900 54,784 0.69% -31.37% Van Kampen UIF - Emerging Markets Debt Portfolio 2002 ............................. 0.50% 2,372 11.884934 28,191 6.91% 8.68% 2001 ............................. 0.50% 1,244 10.935992 13,604 9.40% 9.55% 2000 ............................. 0.50% 1,265 9.982829 12,628 12.32% 10.83% 1999 ............................. 0.50% 1,518 8.934183 13,562 16.19% 28.73% Van Kampen UIF - U.S. Real Estate Portfolio 2002 ............................. 0.50% 10,521 20.976263 220,691 3.29% -1.28% 2000 ............................. 0.50% 3,074 19.442286 59,766 8.22% 27.42% 1998 ............................. 0.50% 4,103 15.812545 64,879 0.17% -12.14%
(Continued) 51 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Multiple Payment contracts and Flexible Premium contracts: American Century VP Balanced Fund - Class I 2002 ............................. 0.80% 196,895 $17.490037 $ 3,443,701 2.63% -10.28% 2001 ............................. 0.80% 201,384 19.493759 3,925,731 2.81% -4.31% 2000 ............................. 0.80% 204,099 20.372425 4,157,992 2.45% -3.42% 1999 ............................. 0.80% 222,611 21.094348 4,695,834 1.78% 9.18% 1998 ............................. 0.80% 215,629 19.320541 4,166,069 1.59% 14.85% American Century VP Capital Appreciation Fund - Class I 2002 ............................. 0.80% 657,612 14.060797 9,246,549 0.00% -21.83% 2001 ............................. 0.80% 735,263 17.987270 13,225,374 0.00% -28.64% 2000 ............................. 0.80% 819,897 25.207415 20,667,484 0.00% 8.17% 1999 ............................. 0.80% 643,372 23.303640 14,992,909 0.00% 63.21% 1998 ............................. 0.80% 649,478 14.277913 9,273,190 0.00% -2.94% American Century VP Income & Growth Fund - Class I 2002 ............................. 0.80% 289,017 8.200926 2,370,207 1.10% -20.01% 2001 ............................. 0.80% 322,604 10.252927 3,307,635 0.81% -9.09% 2000 ............................. 0.80% 303,622 11.277817 3,424,193 0.55% -11.32% 1999 ............................. 0.80% 235,223 12.717991 2,991,564 0.02% 17.08% 1998 ............................. 0.80% 73,815 10.862660 801,827 0.94% 8.63% 5/1/98 American Century VP International Fund - Class I 2002 ............................. 0.80% 679,193 12.287143 8,345,342 0.79% -21.01% 2001 ............................. 0.80% 733,730 15.554724 11,412,968 0.09% -29.74% 2000 ............................. 0.80% 754,646 22.139513 16,707,495 0.14% -17.49% 1999 ............................. 0.80% 649,836 26.831062 17,435,790 0.00% 62.74% 1998 ............................. 0.80% 568,779 16.487231 9,377,591 0.48% 17.81% American Century VP Ultra Fund - Class I 2002 ............................. 0.80% 7,959 7.995504 63,636 0.46% -20.04% 5/1/02 American Century VP Value Fund - Class I 2002 ............................. 0.80% 522,332 14.754246 7,706,615 0.90% -13.32% 2001 ............................. 0.80% 499,070 17.020923 8,494,632 0.95% 11.92% 2000 ............................. 0.80% 323,587 15.208380 4,921,234 0.73% 17.21% 1999 ............................. 0.80% 156,791 12.975752 2,034,481 0.93% -1.64% 1998 ............................. 0.80% 140,522 13.192098 1,853,780 0.64% 3.98% Credit Suisse Trust - Global Post-Venture Capital Portfolio 2002 ............................. 0.80% 156,158 7.283277 1,137,342 0.00% -34.68% 2001 ............................. 0.80% 135,156 11.150533 1,507,061 0.00% -29.21% 2000 ............................. 0.80% 139,959 15.751152 2,204,515 0.00% -19.58% 1999 ............................. 0.80% 123,907 19.586645 2,426,922 0.00% 62.20% 1998 ............................. 0.80% 64,081 12.075838 773,832 0.00% 5.66% Credit Suisse Trust - International Focus Portfolio 2002 ............................. 0.80% 469,749 8.100409 3,805,159 0.00% -20.54% 2001 ............................. 0.80% 503,048 10.194751 5,128,449 0.00% -22.90% 2000 ............................. 0.80% 525,361 13.222451 6,946,560 0.45% -26.48% 1999 ............................. 0.80% 555,966 17.985801 9,999,494 0.93% 52.21% 1998 ............................. 0.80% 579,078 11.816371 6,842,600 0.52% 4.51%
52
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- --------- ---------- -------------- ---------- --------- Credit Suisse Trust - Small Cap Growth Portfolio 2002 ............................. 0.80% 739,837 $11.626571 $ 8,601,767 0.00% -34.22% 2001 ............................. 0.80% 816,970 17.675000 14,439,945 0.00% -16.68% 2000 ............................. 0.80% 942,509 21.214019 19,994,404 0.00% -18.76% 1999 ............................. 0.80% 754,487 26.113570 19,702,349 0.00% 67.73% 1998 ............................. 0.80% 731,702 15.568525 11,391,521 0.00% -3.63% Dreyfus GVIT Mid Cap Index Fund - Class I 2002 ............................. 0.80% 332,165 8.605706 2,858,514 0.42% -15.98% 2001 ............................. 0.80% 246,977 10.242303 2,529,613 0.54% -2.10% 2000 ............................. 0.80% 145,426 10.461575 1,521,385 0.56% 4.62% 5/1/00 Dreyfus IP - European Equity Portfolio 2001 ............................. 0.80% 9,248 6.633319 61,345 0.84% -28.71% 2000 ............................. 0.80% 3,721 9.304097 34,621 0.42% -6.96% 5/1/00 Dreyfus IP - Small Cap Stock Index Portfolio - Service Class 2002 ............................. 0.80% 5,194 7.634206 39,652 0.27% -23.66% 5/1/02 Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares 2002 ............................. 0.80% 432,657 17.464486 7,556,132 0.21% -29.51% 2001 ............................. 0.80% 479,262 24.776659 11,874,511 0.06% -23.20% 2000 ............................. 0.80% 508,803 32.259560 16,413,761 0.81% -11.74% 1999 ............................. 0.80% 450,901 36.549891 16,480,382 0.02% 29.04% 1998 ............................. 0.80% 359,871 28.323603 10,192,843 0.19% 28.35% Dreyfus Stock Index Fund 2002 ............................. 0.80% 2,526,349 20.295193 51,272,741 1.31% -22.98% 2001 ............................. 0.80% 2,735,378 26.351146 72,080,345 1.06% -12.88% 2000 ............................. 0.80% 2,613,545 30.248565 79,055,986 0.96% -10.00% 1999 ............................. 0.80% 2,592,791 33.609618 87,142,715 1.11% 19.64% 1998 ............................. 0.80% 2,166,290 28.091438 60,854,201 1.37% 27.19% Dreyfus VIF - Appreciation Portfolio - Initial Shares 2002 ............................. 0.80% 376,103 10.690124 4,020,588 1.14% -17.38% 2001 ............................. 0.80% 358,763 12.938645 4,641,907 0.84% -10.04% 2000 ............................. 0.80% 365,003 14.382034 5,249,486 0.63% -1.44% 1999 ............................. 0.80% 404,377 14.591996 5,900,668 0.70% 10.57% 1998 ............................. 0.80% 257,361 13.197284 3,396,466 0.97% 29.18% Dreyfus VIF - Growth and Income Portfolio - Initial Shares 2002 ............................. 0.80% 152,335 9.781078 1,490,001 0.60% -25.92% 2001 ............................. 0.80% 162,195 13.204070 2,141,634 0.50% -6.60% 2000 ............................. 0.80% 152,925 14.137245 2,161,938 0.61% -4.54% 1999 ............................. 0.80% 138,815 14.810164 2,055,873 0.65% 15.95% 1998 ............................. 0.80% 125,274 12.772496 1,600,062 1.05% 10.92% Federated Quality Bond Fund II - Primary Shares 2002 ............................. 0.80% 101,228 10.725195 1,085,690 0.00% 7.25% 5/1/02 Fidelity(R) VIP - Equity-Income Portfolio: Initial Class 2002 ............................. 0.80% 1,471,599 31.238892 45,971,122 1.77% -17.61% 2001 ............................. 0.80% 1,558,719 37.915521 59,099,643 1.70% -5.72% 2000 ............................. 0.80% 1,556,185 40.214814 62,581,690 1.65% 7.56% 1999 ............................. 0.80% 1,750,754 37.388084 65,457,338 1.45% 5.48% 1998 ............................. 0.80% 1,726,955 35.444796 61,211,568 1.30% 10.74%
(Continued) 53 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- --------- ---------- -------------- ---------- --------- Fidelity(R) VIP - Growth Portfolio: Initial Class 2002.............................. 0.80% 2,235,794 $27.961807 $ 62,516,840 0.25% -30.66% 2001.............................. 0.80% 2,474,278 40.327380 99,781,149 0.08% -18.31% 2000.............................. 0.80% 2,621,312 49.366480 129,404,946 0.12% -11.69% 1999.............................. 0.80% 2,613,902 55.899014 146,114,544 0.15% 36.34% 1998.............................. 0.80% 2,346,630 40.998916 96,209,286 0.41% 38.38% Fidelity(R) VIP - High Income Portfolio: Initial Class 2002.............................. 0.80% 765,595 19.377316 14,835,176 9.29% 2.62% 2001.............................. 0.80% 653,854 18.882734 12,346,551 13.67% -12.44% 2000.............................. 0.80% 619,065 21.565326 13,350,339 7.66% -23.09% 1999.............................. 0.80% 672,537 28.039263 18,857,442 9.63% 7.29% 1998.............................. 0.80% 737,225 26.133234 19,266,073 7.35% -5.09% Fidelity(R) VIP - Overseas Portfolio: Initial Class 2002.............................. 0.80% 722,432 13.320811 9,623,380 0.83% -20.92% 2001.............................. 0.80% 814,381 16.843777 13,717,252 5.37% -21.80% 2000.............................. 0.80% 866,875 21.539183 18,671,779 1.56% -19.75% 1999.............................. 0.80% 863,446 26.840170 23,175,037 1.25% 41.49% 1998.............................. 0.80% 871,214 18.969496 16,526,490 1.80% 11.85% Fidelity(R) VIP II - Asset Manager: Growth Portfolio: Service Class 2002.............................. 0.80% 753,208 22.459775 16,916,882 3.98% -9.46% 2001.............................. 0.80% 808,651 24.805237 20,058,780 4.21% -4.86% 2000.............................. 0.80% 851,071 26.071970 22,189,098 3.30% -4.69% 1999.............................. 0.80% 917,098 27.355020 25,087,234 3.18% 10.21% 1998.............................. 0.80% 961,754 24.821550 23,872,225 2.96% 14.13% Fidelity(R) VIP II - Contrafund Portfolio: Initial Class 2002.............................. 0.80% 1,875,068 18.959642 35,550,618 0.85% -10.07% 2001.............................. 0.80% 2,013,717 21.083066 42,455,328 0.78% -12.95% 2000.............................. 0.80% 2,107,468 24.218904 51,040,565 0.36% -7.36% 1999.............................. 0.80% 2,151,780 26.143948 56,256,024 0.43% 23.26% 1998.............................. 0.80% 1,826,890 21.209617 38,747,637 0.53% 28.94% Fidelity(R) VIP III - Growth Opportunities Portfolio: Initial Class 2002.............................. 0.80% 328,074 7.588268 2,489,513 1.07% -22.47% 2001.............................. 0.80% 341,765 9.787292 3,344,954 0.38% -15.11% 2000.............................. 0.80% 358,453 11.528985 4,132,599 1.30% -17.72% 1999.............................. 0.80% 385,372 14.012663 5,400,088 0.94% 3.44% 1998.............................. 0.80% 315,036 13.546531 4,267,645 0.58% 23.62% Fidelity(R) VIP III - Value Strategies Portfolio: Service Class 2002.............................. 0.80% 10,466 7.469351 78,174 0.00% -25.31% 5/1/02 Gartmore GVIT Emerging Markets Fund - Class I 2002.............................. 0.80% 29,904 6.877883 205,676 0.17% -15.91% 2001.............................. 0.80% 23,612 8.178748 193,117 0.52% -5.94% 2000.............................. 0.80% 1,063 8.695491 9,243 0.00% -13.05% 10/2/00 Gartmore GVIT Global Financial Services Fund - Class I 2002.............................. 0.80% 3,345 8.617613 28,826 0.08% -13.82% 5/1/02 Gartmore GVIT Global Health Sciences Fund - Class I 2002.............................. 0.80% 3,831 8.295539 31,780 0.00% -17.04% 5/1/02
54
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- --------- ---------- -------------- ---------- --------- Gartmore GVIT Global Technology and Communications Fund - Class I 2002.............................. 0.80% 113,725 $ 1.936951 $ 220,280 0.59% -43.24% 2001.............................. 0.80% 86,686 3.412440 295,811 0.00% -43.18% 2000.............................. 0.80% 46,652 6.005978 280,191 0.00% -39.94% 10/2/00 Gartmore GVIT Global Utilities Fund - Class I 2002.............................. 0.80% 1,341 8.637451 11,583 0.54% -13.63% 5/1/02 Gartmore GVIT Government Bond Fund - Class I 2002.............................. 0.80% 575,815 22.908666 13,191,154 4.42% 10.10% 2001.............................. 0.80% 492,674 20.807253 10,251,193 5.12% 6.40% 2000.............................. 0.80% 359,189 19.556523 7,024,488 5.25% 11.65% 1999.............................. 0.80% 402,906 17.516435 7,057,477 5.74% -3.13% 1998.............................. 0.80% 414,068 18.081576 7,487,002 5.51% 8.04% Gartmore GVIT Growth Fund - Class I 2002.............................. 0.80% 969,929 12.036520 11,674,570 0.00% -29.29% 2001.............................. 0.80% 950,129 17.022307 16,173,388 0.00% -28.71% 2000.............................. 0.80% 952,662 23.877962 22,747,627 0.18% -27.12% 1999.............................. 0.80% 1,104,444 32.761545 36,183,292 0.66% 3.45% 1998.............................. 0.80% 1,058,148 31.669989 33,511,536 0.78% 28.93% Gartmore GVIT ID Aggressive Fund 2002.............................. 0.80% 17,710 8.269753 146,457 1.83% -17.30% 1/25/02 Gartmore GVIT ID Conservative Fund 2002.............................. 0.80% 21,249 9.975795 211,976 2.80% -0.24% 1/25/02 Gartmore GVIT ID Moderate Fund 2002.............................. 0.80% 44,700 9.072331 405,533 1.72% -9.28% 1/25/02 Gartmore GVIT ID Moderately Aggressive Fund 2002.............................. 0.80% 94,483 8.623105 814,737 1.55% -13.77% 1/25/02 Gartmore GVIT ID Moderately Conservative Fund 2002.............................. 0.80% 18,773 9.570814 179,673 2.35% -4.29% 1/25/02 Gartmore GVIT International Growth Fund - Class I 2002.............................. 0.80% 7,532 4.919535 37,054 0.00% -24.71% 2001.............................. 0.80% 8,456 6.534130 55,253 0.09% -29.22% 2000.............................. 0.80% 453 9.231934 4,182 0.00% -7.68% 10/2/00 Gartmore GVIT Money Market Fund - Class I 2002.............................. 0.80% 1,963,625 15.035122 29,523,341 1.26% 0.40% 2001.............................. 0.80% 1,991,692 14.974957 29,825,502 3.57% 2.77% 2000.............................. 0.80% 2,268,467 14.571330 33,054,581 5.53% 5.18% 1999.............................. 0.80% 2,312,418 13.853330 32,034,690 5.04% 4.01% 1998.............................. 0.80% 1,953,963 13.319323 26,025,464 5.48% 4.43% Gartmore GVIT Nationwide(R) Leaders Fund - Class I 2002.............................. 0.80% 12,664 8.407288 106,470 1.18% -15.93% 5/1/02 Gartmore GVIT Small Cap Growth Fund - Class I 2002.............................. 0.80% 202,182 4.727311 955,777 0.00% -33.82% 2001.............................. 0.80% 146,635 7.143137 1,047,434 0.00% -11.55% 2000.............................. 0.80% 85,563 8.076240 691,027 0.00% -19.24% 5/1/00
(Continued) 55 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- --------- ---------- -------------- ---------- --------- Gartmore GVIT Small Cap Value Fund - Class I 2002 ............................. 0.80% 581,061 $11.008455 $ 6,396,584 0.01% -27.74% 2001 ............................. 0.80% 679,631 15.235359 10,354,422 0.03% 27.25% 2000 ............................. 0.80% 275,697 11.972833 3,300,874 0.00% 10.32% 1999 ............................. 0.80% 165,130 10.852975 1,792,152 0.00% 26.82% 1998 ............................. 0.80% 50,840 8.557853 435,081 0.00% -14.42% 5/1/98 Gartmore GVIT Small Company Fund - Class I 2002 ............................. 0.80% 877,427 19.017572 16,686,531 0.00% -17.99% 2001 ............................. 0.80% 928,089 23.188796 21,521,266 0.10% -7.45% 2000 ............................. 0.80% 998,068 25.056031 25,007,623 0.03% 8.03% 1999 ............................. 0.80% 907,754 23.192622 21,053,195 0.00% 42.87% 1998 ............................. 0.80% 879,309 16.233001 14,273,824 0.00% 0.02% Gartmore GVIT Total Return Fund - Class I 2002 ............................. 0.80% 2,203,258 24.433418 53,833,124 0.85% -18.01% 2001 ............................. 0.80% 2,295,929 29.801440 68,421,990 0.74% -12.53% 2000 ............................. 0.80% 2,359,054 34.069071 80,370,778 0.63% -2.90% 1999 ............................. 0.80% 2,622,351 35.085217 92,005,754 0.65% 6.09% 1998 ............................. 0.80% 2,650,483 33.070880 87,653,805 1.06% 17.13% Gartmore GVIT U.S. Growth Leaders Fund - Class I 2002 ............................. 0.80% 3,205 8.182356 26,224 0.00% -18.18% 5/1/02 Janus AS - Capital Appreciation Portfolio - Service Shares 2002 ............................. 0.80% 358,288 5.103609 1,828,562 0.30% -16.60% 2001 ............................. 0.80% 350,620 6.119334 2,145,561 0.91% -22.46% 2000 ............................. 0.80% 297,781 7.891490 2,349,936 1.33% -21.09% 5/1/00 Janus AS - Global Technology Portfolio - Service Shares 2002 ............................. 0.80% 276,903 2.456849 680,309 0.00% -41.40% 2001 ............................. 0.80% 346,031 4.192814 1,450,844 0.56% -37.82% 2000 ............................. 0.80% 259,751 6.742955 1,751,489 1.21% -32.57% 5/1/00 Janus AS - International Growth Portfolio - Service Shares 2002 ............................. 0.80% 219,129 4.424879 969,619 0.67% -26.35% 2001 ............................. 0.80% 227,552 6.008001 1,367,133 0.70% -24.04% 2000 ............................. 0.80% 174,672 7.909816 1,381,623 6.25% -20.90% 5/1/00 MAS GVIT (formerly Nationwide(R) SAT) Multi Sector Bond Fund - Class I 2002 ............................. 0.80% 94,053 11.472904 1,079,061 4.53% 6.35% 2001 ............................. 0.80% 55,247 10.787560 595,980 8.29% 3.35% 2000 ............................. 0.80% 3,000 10.437484 31,312 8.52% 4.37% 5/1/00 Neuberger Berman AMT - Balanced Portfolio 2002 ............................. 0.80% 2,497 18.438130 46,040 4.01% -17.81% 2001 ............................. 0.80% 636 22.433930 14,268 0.00% -3.34% 6/15/01 Neuberger Berman AMT - Growth Portfolio 2002 ............................. 0.80% 698,803 15.635481 10,926,121 0.00% -31.71% 2001 ............................. 0.80% 800,152 22.896752 18,320,882 0.00% -30.92% 2000 ............................. 0.80% 793,907 33.145055 26,314,091 0.00% -12.36% 1999 ............................. 0.80% 660,524 37.818375 24,979,944 0.00% 49.20% 1998 ............................. 0.80% 767,489 25.347646 19,454,039 0.00% 14.61%
56
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- --------- ---------- -------------- ---------- --------- Neuberger Berman AMT - Guardian Portfolio 2002 ............................. 0.80% 161,292 $ 7.595581 $ 1,225,106 0.80% -27.04% 2001 ............................. 0.80% 196,852 10.409898 2,049,209 0.47% -2.30% 2000 ............................. 0.80% 149,159 10.654639 1,589,235 0.59% 0.33% 1999 ............................. 0.80% 181,217 10.619652 1,924,461 0.29% 14.02% 1998 ............................. 0.80% 71,761 9.314041 668,385 0.00% -6.86% 5/1/98 Neuberger Berman AMT - Limited Maturity Bond Portfolio 2002 ............................. 0.80% 225,668 17.871272 4,032,974 4.91% 4.50% 2001 ............................. 0.80% 178,198 17.101800 3,047,507 5.78% 7.91% 2000 ............................. 0.80% 141,846 15.848178 2,248,001 7.15% 5.94% 1999 ............................. 0.80% 203,409 14.959827 3,042,963 5.69% 0.67% 1998 ............................. 0.80% 195,748 14.860392 2,908,892 6.83% 3.56% Neuberger Berman AMT - Partners Portfolio 2002 ............................. 0.80% 728,943 18.150798 13,230,897 0.53% -24.75% 2001 ............................. 0.80% 777,174 24.119941 18,745,391 0.38% -3.61% 2000 ............................. 0.80% 781,588 25.022294 19,557,125 0.69% -0.01% 1999 ............................. 0.80% 1,008,241 25.046437 25,252,845 1.08% 6.51% 1998 ............................. 0.80% 1,151,452 23.514569 27,075,898 0.35% 3.38% Oppenheimer Aggressive Growth Fund/VA - Initial Class 2002 ............................. 0.80% 279,004 3.801151 1,060,536 0.65% -28.37% 2001 ............................. 0.80% 298,688 5.306432 1,584,968 0.87% -31.82% 2000 ............................. 0.80% 313,898 7.782869 2,443,027 0.00% -22.17% 5/1/00 Oppenheimer Bond Fund/VA - Initial Class 2002 ............................. 0.80% 492,395 21.538984 10,605,688 7.25% 8.21% 2001 ............................. 0.80% 499,632 19.904727 9,945,039 7.04% 6.92% 2000 ............................. 0.80% 480,377 18.615856 8,942,629 7.66% 5.26% 1999 ............................. 0.80% 520,266 17.686402 9,201,634 4.68% -2.30% 1998 ............................. 0.80% 532,098 18.103341 9,632,752 1.67% 5.95% Oppenheimer Capital Appreciation Fund/VA - Initial Class 2002 ............................. 0.80% 847,094 11.253616 9,532,871 0.64% -27.44% 2001 ............................. 0.80% 859,711 15.509895 13,334,027 0.64% -13.28% 2000 ............................. 0.80% 796,536 17.884539 14,245,679 0.12% -1.02% 1999 ............................. 0.80% 535,283 18.069110 9,672,087 0.17% 40.53% 1998 ............................. 0.80% 342,717 12.857977 4,406,647 0.28% 23.01% Oppenheimer Global Securities Fund/VA - Initial Class 2002 ............................. 0.80% 1,001,953 20.485514 20,525,522 0.56% -22.76% 2001 ............................. 0.80% 1,078,042 26.520512 28,590,226 0.69% -12.74% 2000 ............................. 0.80% 1,096,887 30.393395 33,338,120 0.27% 4.26% 1999 ............................. 0.80% 1,018,848 29.152831 29,702,304 0.92% 57.22% 1998 ............................. 0.80% 980,014 18.542353 18,171,766 2.07% 13.20% Oppenheimer Main Street Growth & Income Fund/VA - Initial Class 2002 ............................. 0.80% 111,681 6.466008 722,130 0.65% -19.44% 2001 ............................. 0.80% 73,856 8.026816 592,829 0.41% -10.88% 2000 ............................. 0.80% 33,482 9.006749 301,564 0.00% -9.93% 5/1/00
(Continued) 57 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Oppenheimer Multiple Strategies Fund/VA - Initial Class 2002 ............................. 0.80% 393,230 $23.955594 $ 9,420,058 3.60% -11.12% 2001 ............................. 0.80% 394,571 26.951432 10,634,253 3.96% 1.40% 2000 ............................. 0.80% 412,843 26.579650 10,973,222 4.57% 5.59% 1999 ............................. 0.80% 437,927 25.171538 11,023,296 3.30% 10.91% 1998 ............................. 0.80% 460,679 22.696024 10,455,582 0.88% 5.80% Strong GVIT Mid Cap Growth Fund - Class I 2002 ............................. 0.80% 250,537 3.502288 877,453 0.00% -37.52% 2001 ............................. 0.80% 146,210 5.605279 819,548 0.00% -30.87% 2000 ............................. 0.80% 76,685 8.108035 621,765 0.00% -18.92% 5/1/00 Strong Opportunity Fund II, Inc. 2002 ............................. 0.80% 826,619 29.685674 24,538,742 0.38% -27.40% 2001 ............................. 0.80% 901,762 40.890795 36,873,765 0.59% -4.48% 2000 ............................. 0.80% 877,807 42.709091 37,490,339 0.00% 5.75% 1999 ............................. 0.80% 898,106 40.478200 36,353,714 0.00% 33.83% 1998 ............................. 0.80% 874,006 30.245312 26,434,584 0.25% 12.64% Strong VIF - Strong Discovery Fund II 2002 ............................. 0.80% 264,753 18.893884 5,002,212 0.00% -12.72% 2001 ............................. 0.80% 269,121 21.646818 5,825,613 0.72% 3.25% 2000 ............................. 0.80% 271,144 20.965624 5,684,703 0.00% 3.57% 1999 ............................. 0.80% 296,260 20.243703 5,997,399 0.00% 4.25% 1998 ............................. 0.80% 360,468 19.418031 6,999,579 0.00% 6.41% Strong VIF - Strong International Stock Fund II 2002 ............................. 0.80% 199,430 5.696130 1,135,979 4.04% -27.13% 2001 ............................. 0.80% 213,256 7.816872 1,666,995 0.00% -22.76% 2000 ............................. 0.80% 210,636 10.120684 2,131,780 0.00% -40.00% 1999 ............................. 0.80% 219,407 16.868902 3,701,155 0.17% 85.71% 1998 ............................. 0.80% 149,776 9.083353 1,360,468 1.14% -5.54% Turner GVIT Growth Focus Fund - Class I 2002 ............................. 0.80% 80,828 2.170866 175,467 0.00% -43.31% 2001 ............................. 0.80% 50,607 3.829622 193,806 0.00% -39.52% 2000 ............................. 0.80% 7,806 6.332010 49,428 0.00% -36.68% Van Eck WIT - Worldwide Bond Fund 2002 ............................. 0.80% 198,934 16.079714 3,198,802 0.00% 20.69% 2001 ............................. 0.80% 120,008 13.323421 1,598,917 4.39% -5.86% 2000 ............................. 0.80% 123,195 14.152095 1,743,467 4.90% 1.06% 1999 ............................. 0.80% 143,676 14.003753 2,012,003 4.31% -8.56% 1998 ............................. 0.80% 154,980 15.314274 2,373,406 0.79% 11.86% Van Eck WIT - Worldwide Emerging Markets Fund 2002 ............................. 0.80% 444,801 6.209058 2,761,795 0.20% -3.68% 2001 ............................. 0.80% 444,368 6.445985 2,864,389 0.00% -2.60% 2000 ............................. 0.80% 443,771 6.617911 2,936,837 0.00% -42.33% 1999 ............................. 0.80% 576,742 11.474995 6,618,112 0.00% 98.69% 1998 ............................. 0.80% 253,188 5.775322 1,462,242 0.95% -34.66%
58
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Van Eck WIT - Worldwide Hard Assets Fund 2002 ............................. 0.80% 254,426 $13.874598 $3,530,058 0.68% -3.61% 2001 ............................. 0.80% 176,699 14.394010 2,543,407 1.21% -11.16% 2000 ............................. 0.80% 186,255 16.202639 3,017,823 1.12% 10.52% 1999 ............................. 0.80% 206,979 14.660562 3,034,428 1.47% 20.04% 1998 ............................. 0.80% 206,325 12.213208 2,519,890 0.69% -31.52% Van Kampen UIF - Emerging Markets Debt Portfolio 2002 ............................. 0.80% 79,485 11.726545 932,084 6.91% 8.35% 2001 ............................. 0.80% 74,719 10.822665 808,659 9.40% 9.22% 2000 ............................. 0.80% 62,323 9.909218 617,572 12.32% 10.50% 1999 ............................. 0.80% 43,728 8.967304 392,122 16.19% 28.35% 1998 ............................. 0.80% 34,905 6.986851 243,876 12.80% -28.95% Van Kampen UIF - U.S. Real Estate Portfolio 2002 ............................. 0.80% 355,742 20.759770 7,385,122 3.29% -1.58% 2001 ............................. 0.80% 313,717 21.092541 6,617,089 3.98% 8.96% 2000 ............................. 0.80% 277,285 19.357784 5,367,623 8.22% 27.04% 1999 ............................. 0.80% 246,788 15.237208 3,760,360 6.87% -4.14% 1998 ............................. 0.80% 287,075 15.895654 4,563,245 0.17% -12.33% Single Premium contracts issued on or after April 16, 1990: American Century VP Balanced Fund - Class I 2002 ............................. 1.30% 36,064 16.579698 597,930 2.63% -10.73% 2001 ............................. 1.30% 27,610 18.571841 512,769 2.81% -4.79% 2000 ............................. 1.30% 29,587 19.506844 577,149 2.45% -3.90% 1999 ............................. 1.30% 36,043 20.298769 731,629 1.78% 8.64% 1998 ............................. 1.30% 43,205 18.685028 807,287 1.59% 14.28% American Century VP Capital Appreciation Fund - Class I 2002 ............................. 1.30% 83,334 14.389339 1,199,121 0.00% -22.22% 2001 ............................. 1.30% 93,041 18.500029 1,721,261 0.00% -29.00% 2000 ............................. 1.30% 156,838 26.057031 4,086,733 0.00% 7.63% 1999 ............................. 1.30% 134,822 24.209204 3,263,933 0.00% 62.40% 1998 ............................. 1.30% 113,249 14.906965 1,688,199 0.00% -3.42% American Century VP Income & Growth Fund - Class I 2002 ............................. 1.30% 18,481 8.011655 148,063 1.10% -20.41% 2001 ............................. 1.30% 40,468 10.066594 407,375 0.81% -9.54% 2000 ............................. 1.30% 48,794 11.128733 543,015 0.55% -11.76% 1999 ............................. 1.30% 53,220 12.612413 671,233 0.02% 16.50% 1998 ............................. 1.30% 18,703 10.826437 202,487 0.94% 8.26% 5/1/98 American Century VP International Fund - Class I 2002 ............................. 1.30% 67,411 11.780758 794,153 0.79% -21.40% 2001 ............................. 1.30% 105,515 14.988556 1,581,517 0.09% -30.10% 2000 ............................. 1.30% 126,911 21.441430 2,721,153 0.14% -17.90% 1999 ............................. 1.30% 162,982 26.114709 4,256,228 0.00% 61.93% 1998 ............................. 1.30% 168,629 16.127264 2,719,524 0.48% 17.23% American Century VP Ultra Fund - Class I 2002 ............................. 1.30% 739 7.968770 5,889 0.46% -20.31% 5/1/02
(Continued) 59 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- American Century VP Value Fund - Class I 2002 ............................. 1.30% 94,957 $14.316630 $ 1,359,464 0.90% -13.75% 2001 ............................. 1.30% 123,905 16.598988 2,056,698 0.95% 11.36% 2000 ............................. 1.30% 57,614 14.906133 858,802 0.73% 16.63% 1999 ............................. 1.30% 26,781 12.781220 342,294 0.93% -2.13% 1998 ............................. 1.30% 25,086 13.059452 327,609 0.64% 3.46% Credit Suisse Trust - Global Post-Venture Capital Portfolio 2002 ............................. 1.30% 5,188 7.067052 36,664 0.00% -35.01% 2001 ............................. 1.30% 7,002 10.873870 76,139 0.00% -29.56% 2000 ............................. 1.30% 11,974 15.438040 184,855 0.00% -19.98% 1999 ............................. 1.30% 88,739 19.293144 1,712,054 0.00% 61.39% 1998 ............................. 1.30% 23,108 11.954408 276,242 0.00% 5.13% Credit Suisse Trust - International Focus Portfolio 2002 ............................. 1.30% 49,680 7.802280 387,617 0.00% -20.94% 2001 ............................. 1.30% 55,979 9.868857 552,449 0.00% -23.29% 2000 ............................. 1.30% 66,083 12.864457 850,122 0.45% -26.85% 1999 ............................. 1.30% 81,838 17.586224 1,439,221 0.93% 51.45% 1998 ............................. 1.30% 92,476 11.611647 1,073,799 0.52% 3.99% Credit Suisse Trust - Small Cap Growth Portfolio 2002 ............................. 1.30% 54,671 11.198504 612,233 0.00% -34.55% 2001 ............................. 1.30% 82,230 17.109846 1,406,943 0.00% -17.10% 2000 ............................. 1.30% 118,070 20.639565 2,436,913 0.00% -19.17% 1999 ............................. 1.30% 114,996 25.533360 2,936,234 0.00% 66.90% 1998 ............................. 1.30% 152,727 15.298780 2,336,537 0.00% -4.11% Dreyfus GVIT Mid Cap Index Fund - Class I 2002 ............................. 1.30% 48,885 8.491590 415,111 0.42% -16.40% 2001 ............................. 1.30% 41,031 10.157238 416,762 0.54% -2.59% 2000 ............................. 1.30% 10,564 10.427067 110,152 0.56% 4.27% 5/1/00 Dreyfus IP - European Equity Portfolio 2001 ............................. 1.30% 2,993 6.578172 19,688 0.84% -29.06% 2000 ............................. 1.30% 5,683 9.273374 52,701 0.42% -7.27% 5/1/00 Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares 2002 ............................. 1.30% 13,724 16.676328 228,866 0.21% -29.86% 2001 ............................. 1.30% 22,613 23.777410 537,679 0.06% -23.58% 2000 ............................. 1.30% 33,067 31.114958 1,028,878 0.81% -12.18% 1999 ............................. 1.30% 31,488 35.428815 1,115,583 0.02% 28.40% 1998 ............................. 1.30% 27,695 27.592332 764,170 0.19% 27.71% Dreyfus Stock Index Fund 2002 ............................. 1.30% 179,477 19.378177 3,477,937 1.31% -23.37% 2001 ............................. 1.30% 215,776 25.286872 5,456,300 1.06% -13.32% 2000 ............................. 1.30% 248,888 29.173405 7,260,910 0.96% -10.45% 1999 ............................. 1.30% 315,343 32.576553 10,272,788 1.11% 19.05% 1998 ............................. 1.30% 326,895 27.364353 8,945,270 1.37% 26.56%
60
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Dreyfus VIF - Appreciation Portfolio - Initial Shares 2002 ............................. 1.30% 74,627 $10.401947 $ 776,266 1.14% -17.79% 2001 ............................. 1.30% 80,268 12.653068 1,015,636 0.84% -10.49% 2000 ............................. 1.30% 69,804 14.135555 986,718 0.63% -1.93% 1999 ............................. 1.30% 81,279 14.413356 1,171,503 0.70% 10.02% 1998 ............................. 1.30% 62,982 13.101026 825,129 0.97% 28.54% Dreyfus VIF - Growth and Income Portfolio - Initial Shares 2002 ............................. 1.30% 13,957 9.490878 132,464 0.60% -26.29% 2001 ............................. 1.30% 12,109 12.876695 155,924 0.50% -7.07% 2000 ............................. 1.30% 16,818 13.856323 233,036 0.61% -5.02% 1999 ............................. 1.30% 9,941 14.588194 145,021 0.65% 15.38% 1998 ............................. 1.30% 14,240 12.644103 180,052 1.05% 10.37% Federated Quality Bond Fund II - Primary Shares 2002 ............................. 1.30% 4,830 10.689420 51,630 0.00% 6.89% 5/1/02 Fidelity(R) VIP - Equity-Income Portfolio: Initial Class 2002 ............................. 1.30% 242,191 29.394119 7,118,991 1.77% -18.02% 2001 ............................. 1.30% 292,636 35.855591 10,492,637 1.70% -6.19% 2000 ............................. 1.30% 304,863 38.221825 11,652,420 1.65% 7.03% 1999 ............................. 1.30% 395,355 35.712129 14,118,969 1.45% 4.96% 1998 ............................. 1.30% 456,214 34.025630 15,522,969 1.30% 10.19% Fidelity(R) VIP - Growth Portfolio: Initial Class 2002 ............................. 1.30% 239,109 26.673304 6,377,827 0.25% -31.01% 2001 ............................. 1.30% 283,815 38.662344 10,972,953 0.08% -18.72% 2000 ............................. 1.30% 342,658 47.567395 16,299,348 0.12% -12.12% 1999 ............................. 1.30% 355,884 54.130524 19,264,187 0.15% 35.66% 1998 ............................. 1.30% 376,885 39.900577 15,037,929 0.41% 37.69% Fidelity(R) VIP - High Income Portfolio: Initial Class 2002 ............................. 1.30% 160,671 20.087809 3,227,528 9.29% 2.11% 2001 ............................. 1.30% 93,229 19.673202 1,834,113 13.67% -12.88% 2000 ............................. 1.30% 100,049 22.581448 2,259,251 7.66% -23.47% 1999 ............................. 1.30% 105,520 29.506936 3,113,572 9.63% 6.76% 1998 ............................. 1.30% 144,326 27.638937 3,989,017 7.35% -5.56% Fidelity(R) VIP - Overseas Portfolio: Initial Class 2002 ............................. 1.30% 129,046 11.940760 1,540,907 0.83% -21.31% 2001 ............................. 1.30% 150,144 15.174561 2,278,369 5.37% -22.19% 2000 ............................. 1.30% 168,125 19.502680 3,278,888 1.56% -20.15% 1999 ............................. 1.30% 213,601 24.423718 5,216,931 1.25% 40.79% 1998 ............................. 1.30% 248,471 17.348011 4,310,478 1.80% 11.29% Fidelity(R) VIP II - Asset Manager: Growth Portfolio: Service Class 2002 ............................. 1.30% 165,830 24.046655 3,987,657 3.98% -9.91% 2001 ............................. 1.30% 187,390 26.691052 5,001,636 4.21% -5.34% 2000 ............................. 1.30% 201,334 28.195602 5,676,733 3.30% -5.16% 1999 ............................. 1.30% 211,956 29.730624 6,301,584 3.18% 9.66% 1998 ............................. 1.30% 253,412 27.112311 6,870,585 2.96% 13.57%
(Continued) 61 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Fidelity(R) VIP II - Contrafund Portfolio: Initial Class 2002 ............................. 1.30% 199,804 $18.262213 $3,648,863 0.85% -10.52% 2001 ............................. 1.30% 215,185 20.409441 4,391,806 0.78% -13.39% 2000 ............................. 1.30% 250,535 23.563410 5,903,459 0.36% -7.82% 1999 ............................. 1.30% 290,335 25.563198 7,421,891 0.43% 22.65% 1998 ............................. 1.30% 275,660 20.842351 5,745,402 0.53% 28.30% Fidelity(R) VIP III - Growth Opportunities Portfolio: Initial Class 2002 ............................. 1.30% 15,005 7.383595 110,791 1.07% -22.86% 2001 ............................. 1.30% 17,924 9.571123 171,553 0.38% -15.53% 2000 ............................. 1.30% 19,392 11.331281 219,736 1.30% -18.13% 1999 ............................. 1.30% 21,868 13.841079 302,677 0.94% 2.93% 1998 ............................. 1.30% 64,568 13.447707 868,292 0.58% 23.01% Fidelity(R) VIP III - Value Strategies Portfolio: Service Class 2002 ............................. 1.30% 1,517 7.444367 11,293 0.00% -25.56% 5/1/02 Gartmore GVIT Emerging Markets Fund - Class I 2002 ............................. 1.30% 2,303 6.800904 15,662 0.17% -16.33% 2001 ............................. 1.30% 1,128 8.127810 9,168 0.52% -6.42% Gartmore GVIT Global Financial Services Fund - Class I 2002 ............................. 1.30% 3,861 8.588804 33,161 0.08% -14.11% 5/1/02 Gartmore GVIT Global Health Sciences Fund - Class I 2002 ............................. 1.30% 13,221 8.267793 109,308 0.00% -17.32% 5/1/02 Gartmore GVIT Global Technology and Communications Fund - Class I 2002 ............................. 1.30% 7,189 1.915215 13,768 0.59% -43.52% 2001 ............................. 1.30% 13,394 3.391119 45,421 0.00% -43.47% 2000 ............................. 1.30% 18,398 5.998698 110,364 0.00% -40.01% 10/2/00 Gartmore GVIT Global Utilities Fund - Class I 2002 ............................. 1.30% 2,573 8.608580 22,150 0.54% -13.91% 5/1/02 Gartmore GVIT Government Bond Fund - Class I 2002 ............................. 1.30% 222,251 23.773114 5,283,598 4.42% 9.55% 2001 ............................. 1.30% 253,883 21.700608 5,509,415 5.12% 5.86% 2000 ............................. 1.30% 188,357 20.498919 3,861,115 5.25% 11.09% 1999 ............................. 1.30% 240,383 18.452016 4,435,551 5.74% -3.61% 1998 ............................. 1.30% 274,184 19.142839 5,248,660 5.51% 7.50% Gartmore GVIT Growth Fund - Class I 2002 ............................. 1.30% 29,222 11.409842 333,418 0.00% -29.64% 2001 ............................. 1.30% 37,694 16.217110 611,288 0.00% -29.07% 2000 ............................. 1.30% 45,948 22.863519 1,050,533 0.18% -27.48% 1999 ............................. 1.30% 62,075 31.526314 1,956,996 0.66% 2.93% 1998 ............................. 1.30% 113,664 30.628674 3,481,378 0.78% 28.29% Gartmore GVIT ID Moderate Fund 2002 ............................. 1.30% 265 9.030143 2,393 1.72% -9.70% 1/25/02 Gartmore GVIT ID Moderately Conservative Fund 2002 ............................. 1.30% 99 9.526311 943 2.35% -4.74% 1/25/02
62
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- --------- ---------- -------------- ---------- --------- Gartmore GVIT International Growth Fund - Class I 2002 ............................. 1.30% 3,701 $ 4.864470 $ 18,003 0.00% -25.09% Gartmore GVIT Money Market Fund - Class I 2002 ............................. 1.30% 594,197 14.901808 8,854,610 1.26% -0.10% 2001 ............................. 1.30% 788,057 14.917365 11,755,734 3.57% 2.25% 2000 ............................. 1.30% 857,846 14.589227 12,515,310 5.53% 4.66% 1999 ............................. 1.30% 1,082,615 13.940225 15,091,897 5.04% 3.49% 1998 ............................. 1.30% 814,530 13.470763 10,972,341 5.48% 3.90% Gartmore GVIT Nationwide(R) Leaders Fund - Class I 2002 ............................. 1.30% 178 8.379188 1,491 1.18% -16.21% 5/1/02 Gartmore GVIT Small Cap Growth Fund - Class I 2002 ............................. 1.30% 23,644 4.664552 110,289 0.00% -34.15% 2001 ............................. 1.30% 10,664 7.083730 75,541 0.00% -12.00% 2000 ............................. 1.30% 3,122 8.049546 25,131 0.00% -29.07% 5/1/00 Gartmore GVIT Small Cap Value Fund - Class I 2002 ............................. 1.30% 95,522 10.754320 1,027,274 0.01% -28.11% 2001 ............................. 1.30% 193,975 14.958425 2,901,560 0.03% 26.61% 2000 ............................. 1.30% 236,917 11.814503 2,799,057 0.00% 9.77% 1999 ............................. 1.30% 23,585 10.762831 253,841 0.00% 26.19% 1998 ............................. 1.30% 28,961 8.529271 247,016 0.00% -14.71% 5/1/98 Gartmore GVIT Small Company Fund - Class I 2002 ............................. 1.30% 38,599 18.345997 708,137 0.00% -18.40% 2001 ............................. 1.30% 42,033 22.482240 944,996 0.10% -7.92% 2000 ............................. 1.30% 74,796 24.415235 1,826,162 0.03% 7.50% 1999 ............................. 1.30% 66,890 22.712185 1,519,218 0.00% 42.16% 1998 ............................. 1.30% 68,318 15.976308 1,091,469 0.00% -0.30% Gartmore GVIT Total Return Fund - Class I 2002 ............................. 1.30% 72,057 24.840096 1,789,903 0.85% -18.42% 2001 ............................. 1.30% 91,363 30.449581 2,781,965 0.74% -12.97% 2000 ............................. 1.30% 103,521 34.985736 3,621,758 0.63% -3.38% 1999 ............................. 1.30% 115,322 36.208762 4,175,667 0.65% 5.56% 1998 ............................. 1.30% 136,311 34.300994 4,675,603 1.06% 16.55% Gartmore GVIT U.S. Growth Leaders Fund - Class I 2002 ............................. 1.30% 4,697 8.154993 38,304 0.00% -18.45% 5/1/02 Janus AS - Capital Appreciation Portfolio - Service Shares 2002 ............................. 1.30% 10,536 5.035896 53,058 0.30% -17.02% 2001 ............................. 1.30% 15,561 6.068452 94,431 0.91% -22.85% 2000 ............................. 1.30% 22,133 7.865419 174,085 1.33% -21.35% 5/1/00 Janus AS - Global Technology Portfolio - Service Shares 2002 ............................. 1.30% 22,402 2.424192 54,307 0.00% -41.70% 2001 ............................. 1.30% 44,468 4.157888 184,893 0.56% -38.13% 2000 ............................. 1.30% 52,739 6.720656 354,441 1.21% -32.79% 5/1/00 Janus AS - International Growth Portfolio - Service Shares 2002 ............................. 1.30% 59,542 4.366167 259,970 0.67% -26.72% 2001 ............................. 1.30% 59,476 5.958051 354,361 0.70% -24.43% 2000 ............................. 1.30% 72,749 7.883682 573,530 6.25% -21.16% 5/1/00
(Continued) 63 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- MAS GVIT (formerly Nationwide(R) SAT) Multi Sector Bond Fund - Class I 2002 ............................. 1.30% 10,843 $11.320967 $ 122,753 4.53% 5.82% 2001 ............................. 1.30% 269 10.698042 2,878 8.29% 2.84% 2000 ............................. 1.30% 1,928 10.403041 20,057 8.52% 4.03% 5/1/00 Neuberger Berman AMT - Growth Portfolio 2002 ............................. 1.30% 70,474 15.382754 1,084,084 0.00% -32.05% 2001 ............................. 1.30% 116,532 22.639891 2,638,272 0.00% -31.27% 2000 ............................. 1.30% 110,577 32.939123 3,642,309 0.00% -12.79% 1999 ............................. 1.30% 97,552 37.771042 3,684,641 0.00% 48.46% 1998 ............................. 1.30% 136,629 25.442656 3,476,205 0.00% 14.03% Neuberger Berman AMT - Guardian Portfolio 2002 ............................. 1.30% 6,891 7.420249 51,133 0.80% -27.40% 2001 ............................. 1.30% 7,490 10.220670 76,553 0.47% -2.79% 2000 ............................. 1.30% 4,316 10.513749 45,377 0.59% -0.17% 1999 ............................. 1.30% 2,945 10.531438 31,015 0.29% 13.45% 1998 ............................. 1.30% 4,760 9.282948 44,187 0.00% -7.17% 5/1/98 Neuberger Berman AMT - Limited Maturity Bond Portfolio 2002 ............................. 1.30% 82,238 18.030897 1,482,825 4.91% 3.98% 2001 ............................. 1.30% 64,208 17.341018 1,113,432 5.78% 7.37% 2000 ............................. 1.30% 55,938 16.150810 903,444 7.15% 5.41% 1999 ............................. 1.30% 58,827 15.321478 901,317 5.69% 0.17% 1998 ............................. 1.30% 76,004 15.295923 1,162,551 6.83% 3.04% Neuberger Berman AMT - Partners Portfolio 2002 ............................. 1.30% 42,685 17.402827 742,840 0.53% -25.12% 2001 ............................. 1.30% 58,929 23.242157 1,369,637 0.38% -4.09% 2000 ............................. 1.30% 56,278 24.233377 1,363,806 0.69% -0.59% 1999 ............................. 1.30% 69,118 24.377639 1,684,934 1.08% 5.98% 1998 ............................. 1.30% 176,971 23.001381 4,070,577 0.35% 2.86% Oppenheimer Aggressive Growth Fund/VA - Initial Class 2002 ............................. 1.30% 11,830 3.750690 44,371 0.65% -28.72% 2001 ............................. 1.30% 12,032 5.262277 63,316 0.87% -32.16% 2000 ............................. 1.30% 25,730 7.757136 199,591 0.00% -22.43% 5/1/00 Oppenheimer Bond Fund/VA - Initial Class 2002 ............................. 1.30% 66,289 22.020858 1,459,741 7.25% 7.67% 2001 ............................. 1.30% 71,479 20.452013 1,461,889 7.04% 6.39% 2000 ............................. 1.30% 57,658 19.224081 1,108,422 7.66% 4.73% 1999 ............................. 1.30% 70,351 18.355321 1,291,315 4.68% -2.79% 1998 ............................. 1.30% 84,868 18.882225 1,602,497 1.67% 5.42% Oppenheimer Capital Appreciation Fund/VA - Initial Class 2002 ............................. 1.30% 84,080 10.950071 920,682 0.64% -27.81% 2001 ............................. 1.30% 89,005 15.167382 1,349,973 0.64% -13.71% 2000 ............................. 1.30% 91,772 17.577949 1,613,164 0.12% -1.51% 1999 ............................. 1.30% 60,384 17.847892 1,077,727 0.17% 39.83% 1998 ............................. 1.30% 26,155 12.764150 333,846 0.28% 22.40%
64
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Oppenheimer Global Securities Fund/VA - Initial Class 2002 ............................. 1.30% 77,714 $19.559687 $1,520,062 0.56% -23.14% 2001 ............................. 1.30% 89,126 25.449092 2,268,176 0.69% -13.18% 2000 ............................. 1.30% 103,662 29.312842 3,038,628 0.27% 3.74% 1999 ............................. 1.30% 99,036 28.256521 2,798,413 0.92% 56.44% 1998 ............................. 1.30% 88,848 18.062180 1,604,789 2.07% 12.63% Oppenheimer Main Street Growth & Income Fund/VA - Initial Class 2002 ............................. 1.30% 8,466 6.380282 54,015 0.65% -19.85% 2001 ............................. 1.30% 11,244 7.960162 89,504 0.41% -11.33% 2000 ............................. 1.30% 3,017 8.977032 27,084 0.00% -10.23% 5/1/00 Oppenheimer Multiple Strategies Fund/VA - Initial Class 2002 ............................. 1.30% 58,166 23.568558 1,370,889 3.60% -11.56% 2001 ............................. 1.30% 95,325 26.649037 2,540,319 3.96% 0.89% 2000 ............................. 1.30% 102,256 26.413991 2,700,989 4.57% 5.07% 1999 ............................. 1.30% 106,259 25.139330 2,671,280 3.30% 10.35% 1998 ............................. 1.30% 110,357 22.780548 2,513,993 0.88% 5.28% Strong GVIT Mid Cap Growth Fund - Class I 2002 ............................. 1.30% 36,181 3.455755 125,033 0.00% -37.83% 2001 ............................. 1.30% 3,579 5.558609 19,894 0.00% -31.22% 2000 ............................. 1.30% 9,148 8.081237 73,927 0.00% -19.19% 5/1/00 Strong Opportunity Fund II, Inc. 2002 ............................. 1.30% 78,959 28.143339 2,222,170 0.38% -27.77% 2001 ............................. 1.30% 99,955 38.960989 3,894,346 0.59% -4.95% 2000 ............................. 1.30% 101,232 40.898881 4,140,276 0.00% 5.23% 1999 ............................. 1.30% 102,073 38.955700 3,976,325 0.00% 33.17% 1998 ............................. 1.30% 111,969 29.253391 3,275,473 0.25% 12.08% Strong VIF - Strong Discovery Fund II 2002 ............................. 1.30% 26,664 17.911803 477,600 0.00% -13.15% 2001 ............................. 1.30% 35,961 20.624646 741,683 0.72% 2.73% 2000 ............................. 1.30% 29,577 20.076460 593,801 0.00% 3.05% 1999 ............................. 1.30% 32,996 19.481837 642,823 0.00% 3.73% 1998 ............................. 1.30% 58,970 18.780910 1,107,510 0.00% 5.87% Strong VIF - Strong International Stock Fund II 2002 ............................. 1.30% 28,207 5.494908 154,995 4.04% -27.49% 2001 ............................. 1.30% 28,858 7.578594 218,703 0.00% -23.15% 2000 ............................. 1.30% 77,557 9.861771 764,849 0.00% -40.30% 1999 ............................. 1.30% 142,490 16.519505 2,353,864 0.17% 84.79% 1998 ............................. 1.30% 35,834 8.939643 320,343 1.14% -6.01% Turner GVIT Growth Focus Fund - Class I 2002 ............................. 1.30% 9,832 2.146502 21,104 0.00% -43.60% 2001 ............................. 1.30% 2,633 3.805692 10,020 0.00% -39.82% Van Eck WIT - Worldwide Bond Fund 2002 ............................. 1.30% 48,544 16.600653 805,862 0.00% 20.09% 2001 ............................. 1.30% 33,122 13.823940 457,877 4.39% -6.33% 2000 ............................. 1.30% 31,281 14.757769 461,638 4.90% 0.56% 1999 ............................. 1.30% 34,273 14.675886 502,987 4.31% -9.01% 1998 ............................. 1.30% 56,294 16.129801 908,011 0.79% 11.30%
(Continued) 65 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Van Eck WIT - Worldwide Emerging Markets Fund 2002 ............................. 1.30% 32,199 $ 6.024691 $ 193,989 0.20% -4.16% 2001 ............................. 1.30% 34,168 6.285993 214,780 0.00% -3.09% 2000 ............................. 1.30% 37,709 6.486254 244,590 0.00% -42.61% 1999 ............................. 1.30% 123,914 11.302972 1,400,596 0.00% 97.70% 1998 ............................. 1.30% 25,018 5.717162 143,032 0.95% -34.98% Van Eck WIT - Worldwide Hard Assets Fund 2002 ............................. 1.30% 42,486 12.211274 518,808 0.68% -4.09% 2001 ............................. 1.30% 38,241 12.731937 486,882 1.21% -11.61% 2000 ............................. 1.30% 57,160 14.404038 823,335 1.12% 9.97% 1999 ............................. 1.30% 71,735 13.098076 939,590 1.47% 19.44% 1998 ............................. 1.30% 128,220 10.966233 1,406,090 0.69% -31.86% Van Kampen UIF - Emerging Markets Debt Portfolio 2002 ............................. 1.30% 5,151 11.410385 58,775 6.91% 7.81% 2001 ............................. 1.30% 7,324 10.583651 77,515 9.40% 8.67% 2000 ............................. 1.30% 9,551 9.739230 93,019 12.32% 9.96% 1999 ............................. 1.30% 6,540 8.857388 57,927 16.19% 27.71% 1998 ............................. 1.30% 7,315 6.935753 50,735 12.80% -29.31% Van Kampen UIF - U.S. Real Estate Portfolio 2002 ............................. 1.30% 51,170 19.996209 1,023,206 3.29% -2.07% 2001 ............................. 1.30% 53,253 20.418602 1,087,352 3.98% 8.41% 2000 ............................. 1.30% 50,123 18.833757 944,004 8.22% 26.41% 1999 ............................. 1.30% 39,678 14.898574 591,146 6.87% -4.62% 1998 ............................. 1.30% 67,042 15.620311 1,047,217 0.17% -12.76% -------------- Contract Owners' Equity Total By Year 2002 ................................................................. $ 727,023,336 ============== 2001 ................................................................. $ 933,404,977 ============== 2000 ................................................................. $1,071,884,297 ============== 1999 ................................................................. $1,144,615,392 ============== 1998 ................................................................. $ 894,156,479 ==============
* This represents the annualized contract expense rate of the variable account for the period indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the underlying fund portfolios and charges made directly to contract owner accounts through the redemption of units. ** This represents the dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by average net assets. The ratios exclude those expenses, such as mortality and expense charges, that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest. *** This represents the total return for the period indicated and includes a deduction only for expenses assessed through the daily unit value calculation. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the Account. The total return is calculated for the period indicated or from the effective date through the end of the period. ================================================================================ 66 ================================================================================ Independent Auditors' Report The Board of Directors of Nationwide Life Insurance Company and Contract Owners of Nationwide VLI Separate Account-2: We have audited the accompanying statement of assets, liabilities and contract owners' equity of Nationwide VLI Separate Account-2 (comprised of the sub-accounts listed in note 1(b)) (collectively, "the Account") as of December 31, 2002, and the related statements of operations and changes in contract owners' equity, and the financial highlights for each of the periods indicated herein. These financial statements and financial highlights are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights 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, 2002, 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 and financial highlights referred to above present fairly, in all material respects, the financial position of the Account as of December 31, 2002, and the results of its operations, changes in contract owners' equity, and financial highlights for each of the periods indicated herein, in conformity with accounting principles generally accepted in the United States of America. KPMG LLP Columbus, Ohio February 20, 2003 ================================================================================ 67 NATIONWIDE LIFE INSURANCE COMPANY HOME OFFICE: ONE NATIONWIDE PLAZA . COLUMBUS, OHIO 43215-2220 ---------------- Bulk Rate 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-----