N-30D 1 dn30d.txt VLI SEP ACCT 2 (811-5311) Nationwide(R) VLI Separate Account-2 June 30, 2003 [LOGO] THE BEST OF AMERICA(R) Life Planning Series(R) 2003 Semi-Annual Report -------------------------------------------------------------------------------- [LOGO] NATIONWIDE(R) Nationwide Life Insurance Company Home Office: Columbus, Ohio VLOB-12-6/03 [LOGO] NATIONWIDE(R) NATIONWIDE LIFE INSURANCE COMPANY ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215 - 2220 [PHOTO] PRESIDENT'S MESSAGE We at Nationwide Life Insurance Company are pleased to bring you the 2003 semi-annual report of the Nationwide VLI Separate Account-2. Equity investments began showing new life during the first half of 2003 after a long and frustrating three year hiatus. All of the major U.S. stock indices registered double-digit gains during the most recent quarter and closed out the first six months of the year in solid positive territory. In addition, most of the major international markets also participated in this first-half equity rally. Fixed income investments held-up during the period, though not in as robust a fashion as earlier periods. Recent economic statistics herald an encouraging outlook for the U.S. economy. Second quarter GDP growth came in at 2.4% and worker employment statistics show improvement. Interest rates continue at historic low levels and inflation remains at an almost nonexistent level. And, the fiscal stimulus of recent tax cuts has yet to be fully reflected in the economy. We believe this creates an environment for continued improvement in corporate earnings and the extension of a favorable investment climate for financial assets. Your Nationwide variable annuity or variable life contract well positions you to further participate in this improving investment outlook. Thank you for choosing Nationwide; we sincerely appreciate the opportunity to help you meet your investment planning and retirement needs. /s/ Joseph J. Gasper ----------------------------- Joseph J. Gasper, President August 12, 2003 3 [THIS PAGE LEFT BLANK INTENTIONALLY] 4 How to Read the Semi-Annual Report This semi-annual report is a presentation of the variable account as a whole and only describes the underlying contracts and products of the variable account in general terms. Please note the variable account may have more than one variable product available. Such products may have different underlying mutual funds available 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 Semi-Annual Report has four major financial sections: Statement of Assets, Liabilities and Contract Owners' Equity This statement begins on page 6 and lists all of the underlying mutual funds of the variable account, the number of shares owned, the amount paid for the shares and their fair value as of the close of business on June 30, 2003. 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 52. 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 11 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 43, provide further disclosures about the variable account and its underlying contract provisions. 5 -------------------------------------------------------------------------------- NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY June 30, 2003 (UNAUDITED) Assets: Investments at fair value: AIM VIF - AIM V.I. Capital Appreciation Fund - Series I (AIMCapAp) 1,676 shares (cost $29,887) ....................................................... $ 30,671 AIM VIF Basic Value Fund - Series I (AIMBVF) 511 shares (cost $4,353) .......................................................... 4,613 Alliance Bernstein VPS Small Cap Value Portfolio - Class A (AllSmCpVal) 232 shares (cost $2,805) .......................................................... 2,688 Alliance VPS Growth & Income Portfolio - Class A (AllVGroInc) 126 shares (cost $2,460) .......................................................... 2,391 American Century VP Balanced Fund - Class I (ACVPBal) 869,185 shares (cost $5,837,051) .................................................. 5,380,257 American Century VP Capital Appreciation Fund - Class I (ACVPCapAp) 1,820,789 shares (cost $15,172,490) ............................................... 11,452,760 American Century VP Income & Growth Fund - Class I (ACVPIncGr) 575,204 shares (cost $3,062,840) .................................................. 3,272,908 American Century VP Inflation Protection Fund - Class II (ACVPInfPr) 4,261 shares (cost $44,513) ....................................................... 44,011 American Century VP International Fund - Class I (ACVPInt) 1,900,798 shares (cost $12,102,421) ............................................... 10,302,327 American Century VP Ultra Fund - Class I (ACVPUltra) 48,096 shares (cost $404,454) ..................................................... 394,391 American Century VP Value Fund - Class I (ACVPVal) 1,727,098 shares (cost $11,616,510) ............................................... 11,416,119 Comstock GVIT Value Fund - Class I (ComGVITVal) 391 shares (cost $3,344) .......................................................... 3,370 Credit Suisse Trust - Global Post-Venture Capital Portfolio (CSGPVen) 89,344 shares (cost $693,312) ..................................................... 678,123 Credit Suisse Trust - International Focus Portfolio (CSIntEq) 747,090 shares (cost $6,196,873) .................................................. 5,431,341 Credit Suisse Trust - Small Cap Growth Portfolio (CSSmCapGr) 1,078,543 shares (cost $11,177,142) ............................................... 11,907,115 Dreyfus GVIT International Value Fund - Class I (DryIntVal) 2,357 shares (cost $23,952) ....................................................... 24,446 Dreyfus GVIT Mid Cap Index Fund - Class I (DryMidCapIx) 375,072 shares (cost $4,411,036) .................................................. 4,617,135 Dreyfus IP - Small Cap Stock Index Portfolio - Service Class (DrySmCapIxS) 39,028 shares (cost $380,421) ..................................................... 421,116
6 Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DrySRGro) 433,250 shares (cost $15,141,957) ................................................. $ 9,028,925 Dreyfus Stock Index Fund (DryStkIx) 2,838,728 shares (cost $91,094,722) ............................................... 70,684,332 Dreyfus VIF - Appreciation Portfolio - Initial Shares (DryVIFApp) 192,157 shares (cost $5,886,326) .................................................. 5,999,156 Dreyfus VIF - Developing Leaders Portfolio - Initial Shares (DryDevLeadI) 135 shares (cost $4,259) .......................................................... 4,271 Dreyfus VIF - Growth and Income Portfolio - Initial Shares (DryVIFGrInc) 120,315 shares (cost $2,699,723) .................................................. 2,130,770 Federated American Leaders Fund II - Primary Shares (FedAmLdII) 80 shares (cost $1,348) ........................................................... 1,325 Federated Capital Appreciation Fund II - Primary Shares (FedCpApII) 275 shares (cost $1,348) .......................................................... 1,323 Federated GVIT High Income Bond Fund - Class I (FGVITHiInc) 9,544 shares (cost $73,911) ....................................................... 73,678 Federated Quality Bond Fund II - Primary Shares (FedQualBd) 155,858 shares (cost $1,846,128) .................................................. 1,848,475 Fidelity(R) VIP - Equity-Income Portfolio: Initial Class (FidVIPEI) 3,274,039 shares (cost $77,111,918) ............................................... 64,465,829 Fidelity(R) VIP - Growth Portfolio: Initial Class (FidVIPGr) 3,140,072 shares (cost $138,540,960) .............................................. 83,243,308 Fidelity(R) VIP - High Income Portfolio: Initial Class (FidVIPHI) 3,919,684 shares (cost $22,865,033) ............................................... 25,085,975 Fidelity(R) VIP - Overseas Portfolio: Initial Class (FidVIPOv) 1,105,550 shares (cost $13,494,913) ............................................... 13,266,594 Fidelity(R) VIP II - Asset Manager Portfolio: Initial Class (FidVIPAM) 1,778,464 shares (cost $28,143,122) ............................................... 24,009,259 Fidelity(R) VIP II - Contrafund Portfolio: Initial Class (FidVIPCon) 2,399,946 shares (cost $57,577,149) ............................................... 47,350,928 Fidelity(R) VIP II - Investment Grade Bond Portfolio: Service Class (FidVIPInvGrB) 463 shares (cost $6,279) .......................................................... 6,266 Fidelity(R) VIP III - Growth Opportunities Portfolio: Initial Class (FidVIPGrOp) 273,277 shares (cost $4,714,445) .................................................. 3,582,656 Fidelity(R) VIP III - Mid Cap Portfolio: Service Class (FidVIPMCap) 1,186 shares (cost $21,992) ....................................................... 22,469 Fidelity(R) VIP III - Value Strategies Portfolio: Service Class (FidVIPValStS) 98,109 shares (cost $950,319) ..................................................... 941,848 Franklin Templeton VIP - Franklin Rising Dividends Securities Fund - Class I (FTVIPFRDiv) 2,676 shares (cost $38,570) ....................................................... 37,328 Franklin Templeton VIP - Franklin Small Cap Value Securities Fund - Class I (FTVIPSmCpVal) 1,851 shares (cost $19,177) ....................................................... 19,623
(Continued) 7 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, Continued Franklin Templeton VIPT - Templeton Foreign Securities Fund - Class I (FTVIPFS) 4,965 shares (cost $50,772) ....................................................... $ 49,901 Gartmore GVIT Emerging Markets Fund - Class I (GVITEmMrkts) 48,206 shares (cost $305,728) ..................................................... 334,550 Gartmore GVIT Global Financial Services Fund - Class I (GVITGIFin) 8,891 shares (cost $85,970) ....................................................... 90,510 Gartmore GVIT Global Health Sciences Fund - Class I (GVITGIHlth) 65,994 shares (cost $610,267) ..................................................... 683,040 Gartmore GVIT Global Technology and Communications Fund - Class I (GVITGITech) 210,642 shares (cost $626,512) .................................................... 634,032 Gartmore GVIT Global Utilities Fund - Class I (GVITGlUtl) 14,946 shares (cost $118,418) ..................................................... 122,854 Gartmore GVIT Government Bond Fund - Class I (GVITGvtBd) 1,689,141 shares (cost $20,809,381) ............................................... 20,945,344 Gartmore GVIT Growth Fund - Class I (GVITGrowth) 1,757,294 shares (cost $33,038,536) ............................................... 15,200,596 Gartmore GVIT ID Aggressive Fund (GVITIDAgg) 26,986 shares (cost $227,386) ..................................................... 242,331 Gartmore GVIT ID Conservative Fund (GVITIDCon) 44,971 shares (cost $440,561) ..................................................... 454,212 Gartmore GVIT ID Moderate Fund (GVITIDMod) 143,230 shares (cost $1,277,965) .................................................. 1,369,276 Gartmore GVIT ID Moderately Aggressive Fund (GVITIDModAgg) 118,979 shares (cost $1,023,196) .................................................. 1,098,176 Gartmore GVIT ID Moderately Conservative Fund (GVITIDModCon) 64,400 shares (cost $609,514) ..................................................... 636,276 Gartmore GVIT International Growth Fund - Class I (GVITIntGro) 6,648 shares (cost $29,440) ....................................................... 32,510 Gartmore GVIT Money Market Fund - Class I (GVITMyMkt) 42,029,275 shares (cost $42,029,275) .............................................. 42,029,275 Gartmore GVIT Nationwide(R) Leaders Fund - Class I (GVITLead) 7,835 shares (cost $75,210) ....................................................... 78,982 Gartmore GVIT Small Cap Growth Fund - Class I (GVITSmCapGr) 108,531 shares (cost $1,108,066) .................................................. 1,214,459 Gartmore GVIT Small Cap Value Fund - Class I (GVITSmCapVal) 1,212,723 shares (cost $9,624,821) ................................................ 10,659,832 Gartmore GVIT Small Company Fund - Class I (GVITSmComp) 1,267,243 shares (cost $24,068,688) ............................................... 22,493,569 Gartmore GVIT Total Return Fund - Class I (GVITTotRt) 7,308,672 shares (cost $106,336,458) .............................................. 66,216,570 Gartmore GVIT U.S. Growth Leaders Fund - Class I (GVITUSGro) 57,026 shares (cost $533,043) ..................................................... 548,020
8 Janus AS - Capital Appreciation Portfolio - Service Shares (JanCapAp) 134,242 shares (cost $2,567,513) .................................................. $ 2,510,323 Janus AS - Global Technology Portfolio - Service Shares (JanGITech) 409,972 shares (cost $1,189,310) .................................................. 1,168,420 Janus AS - International Growth Portfolio - Service Shares (JanIntGro) 85,704 shares (cost $1,403,146).................................................... 1,552,958 Janus AS - Risk-Managed Large Cap Core Portfolio - Service Shares (JanRsLgCpCr) 121 shares (cost $1,327) .......................................................... 1,303 MAS GVIT (formerly Nationwide(R) SAT) Multi Sector Bond Fund - Class I (MGVITMultiSec) 154,013 shares (cost $1,470,845) .................................................. 1,498,543 MFS VIT - MFS Investors Growth Stock Series - Initial Class (MFSVITInvGrwI) 163 shares (cost $1,327) .......................................................... 1,304 Neuberger Berman AMT - Balanced Portfolio (NBAMTBal) 6,457 shares (cost $58,495) ....................................................... 54,432 Neuberger Berman AMT - Growth Portfolio (NBAMTGro) 1,603,195 shares (cost $16,054,971) ............................................... 14,540,978 Neuberger Berman AMT - Guardian Portfolio (NBAMTGuard) 158,203 shares (cost $1,763,432) .................................................. 1,930,071 Neuberger Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat) 482,284 shares (cost $6,425,230)................................................... 6,636,223 Neuberger Berman AMT - Mid Cap Growth Portfolio - Class S (NBAMTMCGr) 2,076 shares (cost $26,403) ....................................................... 27,815 Neuberger Berman AMT - Partners Portfolio (NBAMTPart) 1,410,796 shares (cost $21,470,034) ............................................... 18,932,878 Neuberger Berman AMT - Socially Responsive Portfolio (NBAMTSocRe) 536 shares (cost $5,709) .......................................................... 5,742 Oppenheimer Aggressive Growth Fund/VA - Initial Class (OppAggGro) 40,647 shares (cost $1,325,690) ................................................... 1,351,110 Oppenheimer Bond Fund/VA - Initial Class (OppBdFd) 1,264,866 shares (cost $14,020,423) ............................................... 14,229,737 Oppenheimer Capital Appreciation Fund/VA - Initial Class (OppCapAp) 432,720 shares (cost $12,617,514) ................................................. 12,886,399 Oppenheimer Global Securities Fund/VA - Initial Class (OppGlSec) 1,320,804 shares (cost $31,344,090) ............................................... 25,874,543 Oppenheimer High Income Fund/VA - Initial Class (OppHiIncInt) 9,443 shares (cost $73,718) ....................................................... 75,259 Oppenheimer Main Street(R) Growth & Income Fund/VA - Initial Class (OppMSGrInc) 72,149 shares (cost $1,144,578) ................................................... 1,206,327 Oppenheimer Main Street(R) Small Cap Fund/VA - Initial Class (OppMaStSmCpI) 1,767 shares (cost $18,787) ....................................................... 19,098 Oppenheimer Multiple Strategies Fund/VA - Initial Class (OppMultStr) 946,297 shares (cost $14,918,098).................................................. 13,427,959 Putnam VT Growth & Income Fund - IB Shares (PUTVTGrIncIB) 64 shares (cost $1,327) ........................................................... 1,304
(Continued) 9 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, Continued Putnam VT International Equity Fund - IB Shares (PUTVTIntlEqIB) 127 shares (cost $1,393) .......................................................... $ 1,345 Putnam VT Voyager Fund - IB Shares (PUTVTVoyIB) 109 shares (cost $2,554) .......................................................... 2,515 Strong GVIT Mid Cap Growth Fund - Class I (SGVITMdCpGr) 89,168 shares (cost $1,654,847) ................................................... 1,671,003 Strong Opportunity Fund II, Inc. (StOpp2) 1,954,274 shares (cost $40,544,329) ............................................... 31,483,350 Strong VIF - Strong Discovery Fund II (StDisc2) 607,062 shares (cost $5,890,472) .................................................. 6,234,531 Strong VIF - Strong International Stock Fund II (StIntStk2) 22 shares (cost $112) ............................................................. 22 Turner GVIT Growth Focus Fund - Class I (TurnGVITGro) 261,689 shares (cost $601,417) .................................................... 664,689 Van Eck WIT - Worldwide Bond Fund (VEWrldBd) 428,310 shares (cost $5,245,235)................................................... 5,323,896 Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt) 453,487 shares (cost $3,671,445) .................................................. 3,945,337 Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs) 346,322 shares (cost $3,660,372) .................................................. 3,785,300 Van Kampen UIF - Emerging Markets Debt Portfolio (VKEmMkt) 392,773 shares (cost $3,199,462)................................................... 3,263,947 Van Kampen UIF - U.S. Real Estate Portfolio (VKUSRealEst) 798,701 shares (cost $9,865,648) .................................................. 10,319,211 ------------ Total Investments .............................................................. 786,952,307 Accounts Receivable ..................................................................... 628,693 ------------ Total Assets ................................................................... 787,581,000 Accounts Payable ........................................................................... -- ------------ Contract Owners' Equity (note 7) ........................................................... $787,581,000 ============
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 10 -------------------------------------------------------------------------------- NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF OPERATIONS Six Month Period Ended June 30, 2003 (UNAUDITED)
Total AIMCapAp AIMBVF AIMCDF AllSmCpVal AllGroInc ACVPBal ACVPCapAp ------------- --------- ------ ------- ---------- --------- -------- ---------- Investment activity: Reinvested dividends ........... $ 7,392,624 -- -- -- 13 5 129,712 -- Mortality and expense risk charges (note 3) ............ (2,757,500) (21) (4) (10) (1) (1) (18,574) (43,603) ------------- --- --- ------- ---- --- -------- ---------- Net investment income (loss) ................... 4,635,124 (21) (4) (10) 12 4 111,138 (43,603) ------------- --- --- ------- ---- --- -------- ---------- Proceeds from mutual fund shares sold ................. 171,616,898 58 42 17,917 16 7 543,089 918,115 Cost of mutual fund shares sold ........................ (198,661,953) (56) (38) (17,345) (15) (7) (750,248) (2,489,951) ------------- --- --- ------- ---- --- -------- ---------- Realized gain (loss) on investments .............. (27,045,055) 2 4 572 1 -- (207,159) (1,571,836) Change in unrealized gain (loss) on investments ....... 98,001,334 784 260 -- (117) (69) 540,419 2,274,433 ------------- --- --- ------- ---- --- -------- ---------- Net gain (loss) on investments .............. 70,956,279 786 264 572 (116) (69) 333,260 702,597 ------------- --- --- ------- ---- --- -------- ---------- Reinvested capital gains ....... 31,303 -- -- -- -- -- -- -- ------------- --- --- ------- ---- --- -------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ....... $ 75,622,706 765 260 562 (104) (65) 444,398 658,994 ============= === === ======= ==== === ======== ==========
ACVPIncGr ACVPInfPr ACVPInt ACVPUltra ACVPVal ComGVITVal CSGPVen CSIntEq ----------- --------- ---------- --------- ---------- ---------- ---------- -------- Investment activity: Reinvested dividends ...... $ 42,157 1 76,686 -- 122,033 11 -- -- Mortality and expense risk charges (note 3) .. (10,519) (12) (35,734) (751) (39,691) (2) (2,504) (17,419) ----------- ---- ---------- -------- ---------- --- ---------- -------- Net investment income (loss) .............. 31,638 (11) 40,952 (751) 82,342 9 (2,504) (17,419) ----------- ---- ---------- -------- ---------- --- ---------- -------- Proceeds from mutual fund shares sold ............ 1,091,222 56 1,617,253 639,144 1,625,567 4 6,145,459 260,174 Cost of mutual fund shares sold ............ (1,337,751) (56) (2,652,866) (623,314) (1,992,203) (4) (6,019,417) (312,258) ----------- ---- ---------- -------- ---------- --- ---------- -------- Realized gain (loss) on investments ...... (246,529) -- (1,035,613) 15,830 (366,636) -- 126,042 (52,084) Change in unrealized gain (loss) on investments .. 530,918 (501) 1,434,525 (6,718) 1,209,311 26 7,730 496,381 ----------- ---- ---------- -------- ---------- --- ---------- -------- Net gain (loss) on investments ......... 284,389 (501) 398,912 9,112 842,675 26 133,772 444,297 ----------- ---- ---------- -------- ---------- --- ---------- -------- Reinvested capital gains .. -- -- -- -- -- -- -- -- ----------- ---- ---------- -------- ---------- --- ---------- -------- Net increase (decrease) in contract owners' equity resulting from operations .. $ 316,027 (512) 439,864 8,361 925,017 35 131,268 426,878 =========== ==== ========== ======== ========== === ========== ========
(Continued) 11 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF OPERATIONS, Continued Six Month Period Ended June 30, 2003 (UNAUDITED)
CSSmCapGr DryIntVal DryMidCapIx DryEuroEq ----------- --------- ----------- --------- Investment activity: Reinvested dividends............................. $ -- -- 9,422 -- Mortality and expense risk charges (note 3)...... (38,806) (18) (14,897) -- ----------- --- -------- --- Net investment income (loss).................. (38,806) (18) (5,475) -- ----------- --- -------- --- Proceeds from mutual fund shares sold............ 3,840,599 15 568,803 -- Cost of mutual fund shares sold.................. (5,302,174) (14) (746,316) -- ----------- --- -------- --- Realized gain (loss) on investments........... (1,461,575) 1 (177,513) -- Change in unrealized gain (loss) on investments................................ 3,340,737 494 615,137 -- ----------- --- -------- --- Net gain (loss) on investments................ 1,879,162 495 437,624 -- ----------- --- -------- --- Reinvested capital gains......................... -- -- -- -- ----------- --- -------- --- Net increase (decrease) in contract owners' equity resulting from operations........ $ 1,840,356 477 432,149 -- =========== === ======== === DrySmCapIxS DrySRGro DryStkIx DryVIFApp ----------- --------- ---------- ---------- Investment activity: Reinvested dividends............................. 4 527 485,273 1,335 Mortality and expense risk charges (note 3)...... (821) (31,539) (230,338) (20,949) ------- --------- ---------- ---------- Net investment income (loss).................. (817) (31,012) 254,935 (19,614) ------- --------- ---------- ---------- Proceeds from mutual fund shares sold............ 29,386 464,286 4,049,696 2,484,315 Cost of mutual fund shares sold.................. (28,851) (855,243) (5,158,019) (3,381,042) ------- --------- ---------- ---------- Realized gain (loss) on investments........... 535 (390,957) (1,108,323) (896,727) Change in unrealized gain (loss) on investments................................ 40,868 1,233,282 7,900,600 1,348,730 ------- --------- ---------- ---------- Net gain (loss) on investments................ 41,403 842,325 6,792,277 452,003 ------- --------- ---------- ---------- Reinvested capital gains......................... -- -- -- -- ------- --------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations........ 40,586 811,313 7,047,212 432,389 ======= ========= ========== ==========
DryDevLeadI DryVIFGrInc FedAmLdII FedCpApII ----------- ----------- --------- --------- Investment activity: Reinvested dividends............................. $ -- 8,158 -- -- Mortality and expense risk charges (note 3)...... (2) (6,643) -- -- ---- -------- --- --- Net investment income (loss).................. (2) 1,515 -- -- ---- -------- --- --- Proceeds from mutual fund shares sold ........... 32 275,638 -- -- Cost of mutual fund shares sold.................. (31) (420,862) -- -- ---- -------- --- --- Realized gain (loss)on investments............ 1 (145,224) -- -- Change in unrealized gain (loss) on investments................................ 12 338,825 (23) (25) ---- -------- --- --- Net gain (loss) on investments................ 13 193,601 (23) (25) ---- -------- --- --- Reinvested capital gains......................... -- -- -- -- ---- -------- --- --- Net increase (decrease) in contractowners' equity resulting from operations........ $ 11 195,116 (23) (25) ==== ======== === === FGVITHiInc FedQualBd FidVIPEI FidVIPGr ---------- ---------- ---------- ---------- Investment activity: Reinvested dividends............................. 738 70,239 1,139,884 223,150 Mortality and expense risk charges (note 3)...... (26) (7,151) (228,137) (296,824) ---- ---------- ---------- ---------- Net investment income (loss).................. 712 63,088 911,747 (73,674) ---- ---------- ---------- ---------- Proceeds from mutual fund shares sold ........... 197 2,145,708 2,834,565 5,386,129 Cost of mutual fund shares sold.................. (197) (2,085,616) (3,988,597) (9,252,004) ---- ---------- ---------- ---------- Realized gain (loss) on investments........... -- 60,092 (1,154,032) (3,865,875) Change in unrealized gain (loss) on investments................................ (233) (36,835) 6,192,747 13,555,755 ---- ---------- ---------- ---------- Net gain (loss) on investments................ (233) 23,257 5,038,715 9,689,880 ---- ---------- ---------- ---------- Reinvested capital gains......................... -- -- -- -- ---- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations........ 479 86,345 5,950,462 9,616,206 ==== ========== ========== ==========
12 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF OPERATIONS, Continued Six Month Period Ended June 30, 2003 (UNAUDITED)
FidVIPHI FidVIPOv FidVIPAM FidVIPCon ------------ ---------- ---------- ---------- Investment activity: Reinvested dividends ................... $ 1,390,427 112,752 838,376 219,092 Mortality and expense risk charges (note 3) ..... (85,249) (47,488) (95,403) (165,460) ------------ ---------- ---------- ---------- Net investment income (loss) ................. 1,305,178 65,264 742,973 53,632 ------------ ---------- ---------- ---------- Proceeds from mutual fund shares sold ........... 12,479,584 859,165 1,480,215 1,923,500 Cost of mutual fund shares sold ................. (12,965,589) (1,105,638) (1,841,976) (2,636,614) ------------ ---------- ---------- ---------- Realized gain (loss) on investments ............................ (486,005) (246,473) (361,761) (713,114) Change in unrealized gain (loss) on investments ............................... 2,769,385 1,379,115 1,746,420 4,619,011 ------------ ---------- ---------- ---------- Net gain (loss) on investments ............... 2,283,380 1,132,642 1,384,659 3,905,897 ------------ ---------- ---------- ---------- Reinvested capital gains ........................ -- -- -- -- ------------ ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ....... $ 3,588,558 1,197,906 2,127,632 3,959,529 ============ ========== ========== ========== FidVIPInvGrB FidVIPGrOp FidVIPMCap FidVIPValStS ------------ ---------- ---------- ------------ Investment activity: Reinvested dividends ............................ -- 26,525 -- -- Mortality and expense risk charges (note 3) ..... (5) (11,228) (15) (926) --- -------- ------ ---------- Net investment income (loss) ................. (5) 15,297 (15) (926) --- -------- ------ ---------- Proceeds from mutual fund shares sold ........... 25 190,621 161 1,183,352 Cost of mutual fund shares sold ................. (25) (326,913) (155) (1,129,802) --- -------- ------ ---------- Realized gain (loss) on investments ............................ -- (136,292) 6 53,550 Change in unrealized gain (loss) on investments ............. ................. (13) 520,245 477 (3,897) --- -------- ------ ---------- Net gain (loss) on investments ............... (13) 383,953 483 49,653 --- -------- ------ ---------- Reinvested capital gains ........................ -- -- -- -- --- -------- ------ ---------- Net increase (decrease) in contract owners' equity resulting from operations ....... (18) 399,250 48,727 === ======== ====== ==========
FTVIPFRDiv FTVIPSmCpVal FTVIPFS GVITEmMrkts ---------- ------------ ------- ----------- Investment activity: Reinvested dividends ...................... $ 498 61 947 821 Mortality and expense risk charges (note 3) ............................... (33) (15) (32) (856) -------- --- ------- -------- Net investment income (loss) ........... 465 46 915 (35) -------- --- ------- -------- Proceeds from mutual fund shares sold ................................... 19,947 14 48,329 389,566 Cost of mutual fund shares sold ........... (20,239) (13) (46,169) (370,319) -------- --- ------- -------- Realized gain (loss) on investments ......................... (292) 1 2,160 19,247 Change in unrealized gain (loss) on investments ......................... (1,242) 445 (871) 20,427 -------- --- ------- -------- Net gain (loss) on investments ......... (1,534) 446 1,289 39,674 -------- --- ------- -------- Reinvested capital gains .................. 1,516 -- -- -- -------- --- ------- -------- Net increase (decrease) in contract owners' equity resulting from operations ........... $ 447 492 2,204 39,639 ======== === ======= ======== GVITGIFin GVITGIHlth GVITGITech GVITGlUtl --------- ---------- ---------- --------- Investment activity: Reinvested dividends ...................... -- -- -- 84 Mortality and expense risk charges (note 3) ............................... (402) (2,003) (1,132) (223) -------- -------- -------- -------- Net investment income (loss) ........... (402) (2,003) (1,132) (139) -------- -------- -------- -------- Proceeds from mutual fund shares sold ................................... 876,589 716,532 577,405 113,228 Cost of mutual fund shares sold ........... (865,868) (663,504) (557,851) (110,676) -------- -------- -------- -------- Realized gain (loss) on investments ......................... 10,721 53,028 19,554 2,552 Change in unrealized gain (loss) on investments ......................... 5,139 77,569 44,128 4,469 -------- -------- -------- -------- Net gain (loss) on investments ......... 15,860 130,597 63,682 7,021 -------- -------- -------- -------- Reinvested capital gains .................. -- -- -- -- -------- -------- -------- -------- Net increase (decrease) in contract owners' equity resulting from operations ........... 15,458 128,594 62,550 6,882 ======== ======== ======== ========
(Continued) 13 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF OPERATIONS, Continued Six Month Period Ended June 30, 2003 (UNAUDITED)
GVITGvtBd GVITGrowth GVITIDAgg GVITIDCon ------------ ----------- --------- --------- Investment activity: Reinvested dividends ................. $ 444,767 522 1,229 5,107 Mortality and expense risk charges (note 3) .................. (89,259) (50,867) (724) (1,292) ------------ ---------- ------ -------- Net investment income (loss) ...... 355,508 (50,345) 505 3,815 ------------ ---------- ------ -------- Proceeds from mutual fund shares sold .............................. 10,807,503 923,014 6,006 106,794 Cost of mutual fund shares sold ...... (10,696,716) (3,067,207) (6,399) (108,629) ------------ ---------- ------ -------- Realized gain (loss) on investments .................... 110,787 (2,144,193) (393) (1,835) Change in unrealized gain (loss) on investments .................... 136,543 4,139,784 20,334 14,995 ------------ ---------- ------ -------- Net gain (loss) on investments .... 247,330 1,995,591 19,941 13,160 ------------ ---------- ------ -------- Reinvested capital gains ............. 29,787 -- -- -- ------------ ---------- ------ -------- Net increase (decrease) in contract owners' equity resulting from operations ... $ 632,625 1,945,246 20,446 16,975 ============ ========== ====== ======== GVITIDMod GVITIDModAgg GVITIDModCon GVITIntGro --------- ------------ ------------ ---------- Investment activity: Reinvested dividends ................. 10,728 7,568 5,513 -- Mortality and expense risk charges (note 3) .................. (3,302) (3,563) (1,346) (209) -------- -------- ------- ------- Net investment income (loss) ...... 7,426 4,005 4,167 (209) -------- -------- ------- ------- Proceeds from mutual fund shares sold .............................. 102,932 192,926 51,210 88,498 Cost of mutual fund shares sold ...... (110,336) (222,750) (52,632) (90,451) -------- -------- ------- ------- Realized gain (loss) on investments .................... (7,404) (29,824) (1,422) (1,953) Change in unrealized gain (loss) on investments .................... 102,712 115,837 26,619 2,992 -------- -------- ------- ------- Net gain (loss) on investments .... 95,308 86,013 25,197 1,039 -------- -------- ------- ------- Reinvested capital gains ............. -- -- -- -- -------- -------- ------- ------- Net increase (decrease) in contract owners' equity resulting from operations ... 102,734 90,018 29,364 830 ======== ======== ======= =======
GVITMyMkt GVITLead GVITSmCapGr GVITSmCapVal ------------ -------- ----------- ------------ Investment activity: Reinvested dividends ................. $ 168,428 167 -- 53 Mortality and expense risk charges (note 3) .......................... (168,898) (283) (3,858) (32,200) ------------ ------- -------- ---------- Net investment income (loss) ...... (470) (116) (3,858) (32,147) ------------ ------- -------- ---------- Proceeds from mutual fund shares sold .............................. 22,794,588 53,892 661,053 7,469,380 Cost of mutual fund shares sold ...... (22,794,588) (58,441) (622,782) (8,002,205) ------------ ------- -------- ---------- Realized gain (loss) on investments .................... -- (4,549) 38,271 (532,825) Change in unrealized gain (loss) on investments .................... -- 8,386 106,190 2,205,190 ------------ ------- -------- ---------- Net gain (loss) on investments .... -- 3,837 144,461 1,672,365 ------------ ------- -------- ---------- Reinvested capital gains ............. -- -- -- -- ------------ ------- -------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ... $ (470) 3,721 140,603 1,640,218 ============ ======= ======== ========== GVITSmComp GVITTotRt GVITUSGro JanCapAp ---------- ---------- --------- -------- Investment activity: Reinvested dividends ................. -- 234,662 -- 3,652 Mortality and expense risk charges (note 3) .......................... (72,149) (229,323) (874) (7,965) ---------- ---------- -------- -------- Net investment income (loss) ...... (72,149) 5,339 (874) (4,313) ---------- ---------- -------- -------- Proceeds from mutual fund shares sold .............................. 1,780,636 1,890,213 519,183 411,513 Cost of mutual fund shares sold ...... (2,580,360) (3,192,326) (489,112) (460,180) ---------- ---------- -------- -------- Realized gain (loss) on investments .................... (799,724) (1,302,113) 30,071 (48,667) Change in unrealized gain (loss) on investments .................... 3,779,158 8,332,178 20,757 236,216 ---------- ---------- -------- -------- Net gain (loss) on investments .... 2,979,434 7,030,065 50,828 187,549 ---------- ---------- -------- -------- Reinvested capital gains ............. -- -- -- -- ---------- ---------- -------- -------- Net increase (decrease) in contract owners' equity resulting from operations ... 2,907,285 7,035,404 49,954 183,236 ========== ========== ======== ========
14 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF OPERATIONS, Continued Six Month Period Ended June 30, 2003 (UNAUDITED)
JanGITech JanIntGro JanRsLgCpCr MGVITMultiSec --------- --------- ----------- ------------- Investment activity: Reinvested dividends ................. $ -- 12,678 -- 45,875 Mortality and expense risk charges (note 3) .......................... (3,459) (5,500) -- (5,852) --------- -------- --- ---------- Net investment income (loss) ...... (3,459) 7,178 -- 40,023 --------- -------- --- ---------- Proceeds from mutual fund shares sold .............................. 368,503 240,250 -- 1,628,262 Cost of mutual fund shares sold ...... (620,216) (237,715) -- (1,552,323) --------- -------- --- ---------- Realized gain (loss) on investments .................... (251,713) 2,535 -- 75,939 Change in unrealized gain (loss) on investments .................... 429,860 74,279 (24) 452 --------- -------- --- ---------- Net gain (loss) on investments .... 178,147 76,814 (24) 76,391 --------- -------- --- ---------- Reinvested capital gains ............. -- -- -- -- --------- -------- --- ---------- Net increase (decrease) in contract owners' equity resulting from operations ... $ 174,688 83,992 (24) 116,414 ========= ======== === ========== MFSVITInvGrwI NBAMTBal NBAMTFas NBAMTGro ------------- -------- -------- ---------- Investment activity: Reinvested dividends ................. -- -- -- -- Mortality and expense risk charges (note 3) .......................... -- (189) (13) (52,201) ---- ------ ------- ---------- Net investment income (loss) ...... -- (189) (13) (52,201) --- ------ ------- ---------- Proceeds from mutual fund shares sold .............................. -- 1,179 22,178 2,718,593 Cost of mutual fund shares sold ...... -- (1,440) (21,694) (4,534,603) --- ------ ------- ---------- Realized gain (loss) on investments .................... -- (261) 484 (1,816,010) Change in unrealized gain (loss) on investments .................... (23) 3,876 -- 3,642,785 --- ------ ------- ---------- Net gain (loss) on investments .... (23) 3,615 484 1,826,775 --- ------ ------- ---------- Reinvested capital gains ............. -- -- -- -- --- ------ ------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ... (23) 3,426 471 1,774,574 === ====== ======= ==========
NBAMTGuard NBAMTLMat NBAMTMCGr NBAMTPart ----------- ---------- --------- ---------- Investment activity: Reinvested dividends ................. $ -- -- -- -- Mortality and expense risk charges (note 3) .......................... (5,675) (25,850) (1) (59,129) ----------- ---------- ----- ---------- Net investment income (loss) ...... (5,675) (25,850) (1) (59,129) ----------- ---------- ----- ---------- Proceeds from mutual fund shares sold .............................. 823,838 1,373,076 71 2,474,538 Cost of mutual fund shares sold ...... (1,124,088) (1,351,104) (68) (3,719,725) ----------- ---------- ----- ---------- Realized gain (loss) on investments .................... (300,250) 21,972 3 (1,245,187) Change in unrealized gain (loss) on investments .................... 526,375 107,092 1,413 4,149,848 ----------- ---------- ----- ---------- Net gain (loss) on investments .... 226,125 129,064 1,416 2,904,661 ----------- ---------- ----- ---------- Reinvested capital gains ............. -- -- -- -- ----------- ---------- ----- ---------- Net increase (decrease) in contract owners' equity resulting from operations ... $ 220,450 103,214 1,415 2,845,532 =========== ========== ===== ========== NBAMTSocRe OppAggGro OppBdFd OppCapAp ---------- ---------- ---------- ---------- Investment activity: Reinvested dividends ................. -- -- 780,526 48,384 Mortality and expense risk charges (note 3) .......................... (4) (4,789) (52,331) (44,639) --- ---------- ---------- ---------- Net investment income (loss) ...... (4) (4,789) 728,195 3,745 --- ---------- ---------- ---------- Proceeds from mutual fund shares sold .............................. 8 3,205,118 1,682,571 4,583,380 Cost of mutual fund shares sold ...... (8) (3,076,308) (1,619,380) (6,533,056) --- ---------- ---------- ---------- Realized gain (loss) on investments .................... -- 128,810 63,191 (1,949,676) Change in unrealized gain (loss) on investments .................... 33 61,671 (121,165) 3,276,197 -- ---------- ---------- ---------- Net gain (loss) on investments .... 33 190,481 (57,974) 1,326,521 --- ---------- ---------- ---------- Reinvested capital gains ............. -- -- -- -- --- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ... 29 185,692 670,221 1,330,266 === ========== ========== ==========
(Continued) 15 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF OPERATIONS, Continued Six Month Period Ended June 30, 2003 (UNAUDITED)
OppGlSec OppHiIncInt OppMSGrInc OppMaStSmCpI ----------- ----------- ---------- ------------ Investment activity: Reinvested dividends ................. $ 199,865 -- 11,048 -- Mortality and expense risk charges (note 3) .................. (89,541) (8) (3,624) (11) ----------- ----- -------- --- Net investment income (loss) ......................... 110,324 (8) 7,424 (11) ----------- ----- -------- --- Proceeds from mutual fund shares sold ....................... 3,047,748 150 335,667 99 Cost of mutual fund shares sold ...... (5,586,508) (145) (394,914) (96) ----------- ----- -------- --- Realized gain (loss) on investments .................... (2,538,760) 5 (59,247) 3 Change in unrealized gain (loss) on investments .................... 5,057,244 1,541 161,722 310 ----------- ----- -------- --- Net gain (loss) on investments .................... 2,518,484 1,546 102,475 313 ----------- ----- -------- --- Reinvested capital gains ............. -- -- -- -- ----------- ----- -------- --- Net increase (decrease) in contract owners' equity resulting from operations ... $ 2,628,808 1,538 109,899 302 =========== ===== ======== === OppMultStr PUTVTGrIncIB PUTVTIntlEqIB PUTVTVoyIB ---------- ------------ ------------- ---------- Investment activity: Reinvested dividends ................. 378,934 -- -- -- Mortality and expense risk charges (note 3) .................. (47,899) -- -- (1) --------- --- --- --- Net investment income (loss) ......................... 331,035 -- -- (1) --------- --- --- --- Proceeds from mutual fund shares sold ....................... 584,483 -- -- 1 Cost of mutual fund shares sold ...... (703,300) -- -- (1) --------- --- --- --- Realized gain (loss) on investments .................... (118,817) -- -- -- Change in unrealized gain (loss) on investments .................... 1,113,465 (24) (48) (39) --------- --- --- --- Net gain (loss) on investments .................... 994,648 (24) (48) (39) --------- --- --- --- Reinvested capital gains ............. -- -- -- -- --------- --- --- --- Net increase (decrease) in contract owners' equity resulting from operations ... 1,325,683 (24) (48) (40) ========= === === ===
SGVITMdCpGr StOpp2 StDisc2 StIntStk2 ----------- ---------- -------- ---------- Investment activity: Reinvested dividends ................. $ -- -- -- 22,645 Mortality and expense risk charges (note 3) .................. (6,671) (112,289) (23,047) (1,551) ---------- ---------- -------- ---------- Net investment income (loss) ...... (6,671) (112,289) (23,047) 21,094 ---------- ---------- -------- ---------- Proceeds from mutual fund shares sold ....................... 2,002,725 2,657,571 375,248 5,562,084 Cost of mutual fund shares sold ...... (1,823,503) (4,092,782) (414,907) (5,619,704) ---------- ---------- -------- ---------- Realized gain (loss) on investments .................... 179,222 (1,435,211) (39,659) (57,620) Change in unrealized gain (loss) on investments .................... 16,156 5,845,591 760,846 (7,327) ---------- ---------- -------- ---------- Net gain (loss) on investments .... 195,378 4,410,380 721,187 (64,947) ---------- ---------- -------- ---------- Reinvested capital gains ............. -- -- -- -- ---------- ---------- -------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ... $ 188,707 4,298,091 698,140 (43,853) ========== ========== ======== ========== TurnGVITGro VEWrldBd VEWrldEMkt VEWrldHAs ----------- ----------- ---------- ---------- Investment activity: Reinvested dividends ................. -- 86,806 4,618 19,918 Mortality and expense risk charges (note 3) .................. (1,389) (21,154) (11,921) (14,083) -------- ----------- ---------- ---------- Net investment income (loss) ...... (1,389) 65,652 (7,303) 5,835 -------- ----------- ---------- ---------- Proceeds from mutual fund shares sold ....................... 353,739 11,614,641 5,836,190 8,466,697 Cost of mutual fund shares sold ...... (364,760) (11,143,152) (5,503,137) (8,188,886) -------- ----------- ---------- ---------- Realized gain (loss) on investments .................... (11,021) 471,489 333,053 277,811 Change in unrealized gain (loss) on investments .................... 85,920 (57,872) 39,468 (38,681) -------- ----------- ---------- ---------- Net gain (loss) on investments .... 74,899 413,617 372,521 239,130 -------- ----------- ---------- ---------- Reinvested capital gains ............. -- -- -- -- -------- ----------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ... 73,510 479,269 365,218 244,965 ======== =========== ========== ==========
16 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF OPERATIONS, Continued Six Month Period Ended June 30, 2003 (UNAUDITED) Investment activity: VKEmMkt VKUSRealEst ----------- ----------- Reinvested dividends ................. $ -- -- Mortality and expense risk charges (note 3) .................. (6,726) (36,374) ----------- ---------- Net investment income (loss) ...... (6,726) (36,374) ----------- ---------- Proceeds from mutual fund shares sold ....................... 5,094,164 2,909,060 Cost of mutual fund shares sold ...... (4,872,409) (2,951,061) ----------- ---------- Realized gain (loss) on investments .................... 221,755 (42,001) Change in unrealized gain (loss) on investments .................... 101,439 1,322,803 ----------- ---------- Net gain (loss) on investments .... 323,194 1,280,802 ----------- ---------- Reinvested capital gains ............. -- -- ----------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ... $ 316,468 1,244,428 =========== ========== See accompanying notes to financial statements. 17 -------------------------------------------------------------------------------- NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
Total AIMCapAp AIMBVF AIMCDF -------------------------- ------------- ------------ ------------ 2003 2002 2003 2002 2003 2002 2003 2002 ------------ ----------- ------ ---- ----- ---- ----- ---- Investment activity: Net investment income (loss) $ 4,635,124 5,498,175 (21) -- (4) -- (10) -- Realized gain (loss) on investments ............ (27,045,055) (28,841,457) 2 -- 4 -- 572 -- Change in unrealized gain (loss) on investments ................................. 98,001,334 (67,093,660) 784 -- 260 -- -- -- Reinvested capital gains ....................... 31,303 2,865,705 -- -- -- -- -- -- ------------ ----------- ------ --- ----- --- ----- --- Net increase (decrease) in contract owners' equity resulting from operations ............................... 75,622,706 (87,571,237) 765 -- 260 -- 562 -- ------------ ----------- ------ --- ----- --- ----- --- Equity transactions: Purchase payments received from contract owners (note 6) ............................. 40,525,989 45,417,277 -- -- -- -- -- -- Transfers between funds ........................ -- -- 29,944 -- 4,391 -- (524) -- Surrenders (note 6) ............................ (30,434,515) (27,196,548) -- -- -- -- -- -- Death benefits (note 4) ........................ (1,330,862) (1,605,291) -- -- -- -- -- -- Policy loans (net of repayments) (note 5) ...... 2,728,052 (2,509,126) -- -- -- -- -- -- Deductions for surrender charges (note 2d) ..... (1,740,632) (1,667,356) -- -- -- -- -- -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................... (24,486,621) (23,226,937) (43) -- (42) -- (38) -- Asset charges (note 3): MSP contracts ............................... (166,624) (204,114) -- -- -- -- -- -- LSFP contracts .............................. (159,829) (173,852) -- -- -- -- -- -- ------------ ----------- ------ --- ----- --- ----- --- Net equity transactions (15,065,042) (11,165,947) 29,901 -- 4,349 -- (562) -- ------------ ----------- ------ --- ----- --- ----- --- Net change in contract owners' equity ............. 60,557,664 (98,737,184) 30,666 -- 4,609 -- -- -- Contract owners' equity beginning of period ....... 727,023,336 933,404,977 -- -- -- -- -- -- ------------ ----------- ------ --- ----- --- ----- --- Contract owners' equity end of period ............. $787,581,000 834,667,793 30,666 -- 4,609 -- -- -- ============ =========== ====== === ===== === ===== === CHANGES IN UNITS: Beginning units ................................ 43,194,768 44,510,163 -- -- -- -- -- -- ------------ ----------- ------ --- ----- --- ----- --- Units purchased ................................ 4,982,791 3,852,496 2,885 -- 421 -- 3 -- Units redeemed ................................. (5,441,337) (3,832,503) (4) -- (4) -- (3) -- ------------ ----------- ------ --- ----- --- ----- --- Ending units ................................... 42,736,222 44,530,156 2,881 -- 417 -- -- -- ============ =========== ====== === ===== === ===== ===
18 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
AllSmCpVal AllGroInc ACVPBal ACVPCapAp -------------- -------------- --------------------- ----------------------- 2003 2002 2003 2002 2003 2002 2003 2002 ------ ----- ------ ------ --------- --------- ---------- ---------- Investment activity: Net investment income (loss) ................. $ 12 -- 4 -- 111,138 110,916 (43,603) (59,358) Realized gain (loss) on investments .......... 1 -- -- -- (207,159) (89,681) (1,571,836) (2,449,740) Change in unrealized gain (loss) on investments ............................ (117) -- (69) -- 540,419 (354,737) 2,274,433 890,558 Reinvested capital gains ..................... -- -- -- -- -- -- -- -- ------ --- ----- --- --------- --------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ............................. (104) -- (65) -- 444,398 (333,502) 658,994 (1,618,540) ------ --- ----- --- --------- --------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) .................. -- -- -- -- 311,248 255,446 660,345 800,146 Transfers between funds ...................... 2,808 -- 2,462 -- 331,224 (15,928) (333,542) (880,824) Surrenders (note 6) .......................... -- -- -- -- (170,962) (110,065) (369,600) (426,204) Death benefits (note 4) ...................... -- -- -- -- (12,041) (2,796) (1,858) (60,371) Policy loans (net of repayments) (note 5) .... -- -- -- -- (23,658) (27,395) 90,280 (52,050) Deductions for surrender charges (note 2d) ... -- -- -- -- (9,778) (6,748) (21,138) (26,130) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ......................... (10) -- (6) -- (146,847) (132,762) (725,521) (426,717) Asset charges (note 3): MSP contracts ............................. -- -- -- -- (1,818) (2,267) (2,209) (3,261) LSFP contracts ............................ -- -- -- -- (723) (775) (899) (1,843) ------ --- ----- --- --------- --------- ---------- ---------- Net equity transactions ................ 2,798 -- 2,456 -- 276,645 (43,290) (704,142) (1,077,254) ------ --- ----- --- --------- --------- ---------- ---------- Net change in contract owners' equity ........... 2,694 -- 2,391 -- 721,043 (376,792) (45,148) (2,695,794) Contract owners' equity beginning of period .................................... -- -- -- -- 4,659,269 5,149,974 11,497,921 16,299,104 ------ --- ----- --- --------- --------- ---------- ---------- Contract owners' equity end of period ........... $2,694 -- 2,391 -- 5,380,312 4,773,182 11,452,773 13,603,310 ====== === ===== === ========= ========= ========== ========== CHANGES IN UNITS: Beginning units .............................. -- -- -- -- 277,290 275,968 839,237 945,180 ------ --- ----- --- --------- --------- ---------- ---------- Units purchased .............................. 249 -- 222 -- 37,356 15,531 61,436 54,840 Units redeemed ............................... (1) -- (1) -- (21,784) (18,177) (117,171) (122,670) ------ --- ----- --- --------- --------- ---------- ---------- Ending units ................................. 248 -- 221 -- 292,862 273,322 783,502 877,350 ====== === ===== === ========= ========= ========== ==========
(Continued) 19 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
ACVPIncGr ACVPInfPr ACVPInt ACVPUltra ---------------------- -------------- ----------------------- --------------- 2003 2002 2003 2002 2003 2002 2003 2002 ---------- --------- ------ ------ ---------- ---------- -------- ---- Investment activity: Net investment income (loss) .............. $ 31,638 25,588 (11) -- 40,952 48,508 (751) -- Realized gain (loss) on investments ....... (246,529) (134,816) -- -- (1,035,613) (1,851,150) 15,830 -- Change in unrealized gain (loss) on investments ............................ 530,918 (321,264) (501) -- 1,434,525 1,113,898 (6,718) -- Reinvested capital gains .................. -- -- -- -- -- -- -- -- ---------- --------- ------ --- ---------- ---------- -------- --- Net increase (decrease) in contract owners' equity resulting from operations .......................... 316,027 (430,492) (512) -- 439,864 (688,744) 8,361 -- ---------- --------- ------ --- ---------- ---------- -------- --- Equity transactions: Purchase payments received from contract owners (note 6) ............... 223,165 158,651 28 -- 649,932 658,048 40,023 -- Transfers between funds ................... 37,790 (246,181) 44,544 -- (399,907) (763,988) 523,443 -- Surrenders (note 6) ....................... (216,774) (106,271) -- -- (461,137) (316,927) (50,037) -- Death benefits (note 4) ................... (10,465) -- -- -- (20,086) -- -- -- Policy loans (net of repayments) (note 5) ............................... (6,748) (20,748) -- -- 2,222 (118,666) (206,117) -- Deductions for surrender charges (note 2d) .............................. (12,398) (6,515) -- -- (26,374) (19,430) (2,862) -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ...................... (88,042) (88,031) (48) -- (351,639) (304,639) (4,446) -- Asset charges (note 3): MSP contracts .......................... (986) (1,331) -- -- (1,527) (2,324) (63) -- LSFP contracts ......................... (978) (991) (3) -- (3,143) (3,794) (15) -- ---------- --------- ------ --- ---------- ---------- -------- --- Net equity transactions ............. (75,436) (311,417) 44,521 -- (611,659) (871,720) 299,926 -- ---------- --------- ------ --- ---------- ---------- -------- --- Net change in contract owners' equity ........ 240,591 (741,909) 44,009 -- (171,795) (1,560,464) 308,287 -- Contract owners' equity beginning of period ................................. 3,032,321 4,276,892 -- -- 10,472,740 14,630,605 86,100 -- ---------- --------- ------ --- ---------- ---------- -------- --- Contract owners' equity end of period ........ $3,272,912 3,534,983 44,009 -- 10,300,945 13,070,141 394,387 -- ========== ========= ====== === ========== ========== ======== === CHANGES IN UNITS: Beginning units ........................... 368,062 416,289 -- -- 860,438 950,787 10,760 -- ---------- --------- ------ --- ---------- ---------- -------- --- Units purchased ........................... 33,248 23,812 4,302 -- 65,627 54,472 64,811 -- Units redeemed ............................ (45,406) (55,271) (5) -- (117,184) (113,699) (31,262) -- ---------- --------- ------ --- ---------- ---------- -------- --- Ending units .............................. 355,904 384,830 4,297 -- 808,881 891,560 44,309 -- ========== ========= ====== === ========== ========== ======== ===
20 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
ACVPVal ComGVITVal CSGPVen CSIntEq ------------------------ ------------ --------------------- --------------------- 2003 2002 2003 2002 2003 2002 2003 2002 ----------- ---------- ----- ---- --------- --------- --------- --------- Investment activity: Net investment income (loss) ......... $ 82,342 57,416 9 -- (2,504) (4,830) (17,419) (24,438) Realized gain (loss) on investments .. (366,636) 255,473 -- -- 126,042 (265,426) (52,084) 242,385 Change in unrealized gain (loss) on investments .................... 1,209,311 (1,620,586) 26 -- 7,730 72,963 496,381 (280,110) Reinvested capital gains ............. -- 677,932 -- -- -- -- -- -- ----------- ---------- ----- --- --------- --------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations ..................... 925,017 (629,765) 35 -- 131,268 (197,293) 426,878 (62,163) ----------- ---------- ----- --- --------- --------- --------- --------- Equity transactions: Purchase payments received from contract owners (note 6) .......... 511,195 509,273 28 -- 34,065 79,022 309,146 358,513 Transfers between funds .............. (386,658) 1,290,478 3,313 -- (686,696) (471,761) (70,563) (220,881) Surrenders (note 6) .................. (370,508) (267,774) -- -- (46,219) (88,855) (152,540) (170,610) Death benefits (note 4) .............. (15,110) (6,357) -- -- -- -- (3,715) (13,727) Policy loans (net of repayments) (note 5) .......................... 162,137 (157,183) -- -- (1,733) 14,620 36,825 4,377 Deductions for surrender charges (note 2d) ......................... (21,190) (16,417) -- -- (2,643) (5,448) (8,724) (10,460) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ................. (273,049) (224,674) (7) -- (22,357) (31,510) (152,245) (167,529) Asset charges (note 3): MSP contracts ..................... (2,669) (4,086) -- -- (149) (231) (829) (2,270) LSFP contracts .................... (3,786) (3,778) -- -- (216) (288) (2,034) (2,261) ----------- ---------- ----- --- --------- --------- --------- --------- Net equity transactions ........ (399,638) 1,119,482 3,334 -- (725,948) (504,451) (44,679) (224,848) ----------- ---------- ----- --- --------- --------- --------- --------- Net change in contract owners' equity ... 525,379 489,717 3,369 -- (594,680) (701,744) 382,199 (287,011) Contract owners' equity beginning of period ............................ 10,890,722 12,303,843 -- -- 1,272,812 1,723,423 5,049,074 6,770,955 ----------- ---------- ----- --- --------- --------- --------- --------- Contract owners' equity end of period ... $11,416,101 12,793,560 3,369 -- 678,132 1,021,679 5,431,273 6,483,944 =========== ========== ===== === ========= ========= ========= ========= CHANGES IN UNITS: Beginning units ...................... 735,597 721,884 -- -- 174,334 154,238 637,322 679,600 ----------- ---------- ----- --- --------- --------- --------- --------- Units purchased ...................... 71,161 103,828 310 -- 5,710 9,434 60,951 37,421 Units redeemed ....................... (98,736) (42,646) (1) -- (101,710) (56,966) (66,039) (53,786) ----------- ---------- ----- --- --------- --------- --------- --------- Ending units ......................... 708,022 783,066 309 -- 78,334 106,706 632,234 663,235 =========== ========== ===== === ========= ========= ========= =========
(Continued) 21 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
CSSmCapGr DryIntVal DryMidCapIx DryEuroEq ------------------------ ------------- --------------------- -------------- 2003 2002 2003 2002 2003 2002 2003 2002 ----------- ---------- ------ ---- --------- --------- ---- ------- Investment activity: Net investment income (loss) ............. $ (38,806) (57,180) (18) -- (5,475) (9,367) -- (273) Realized gain (loss) on investments ...... (1,461,575) (3,369,946) 1 -- (177,513) 223,736 -- (1,620) Change in unrealized gain (loss) on investments ........................ 3,340,737 (365,279) 494 -- 615,137 (469,277) -- (2,189) Reinvested capital gains ................. -- -- -- -- -- 14,741 -- -- ----------- ---------- ------ --- --------- --------- --- ------- Net increase (decrease) in contract owners' equity resulting from operations ......................... 1,840,356 (3,792,405) 477 -- 432,149 (240,167) -- (4,082) ----------- ---------- ------ --- --------- --------- --- ------- Equity transactions: Purchase payments received from contract owners (note 6) .............. 679,946 881,239 -- -- 233,529 154,794 (2) 5,499 Transfers between funds .................. (332,005) (1,523,652) 23,969 -- 533,953 1,525,188 2 (27,953) Surrenders (note 6) ...................... (289,062) (459,347) -- -- (192,903) (100,167) -- -- Death benefits (note 4) .................. (27,111) (10,226) -- -- (8,369) (1,826) -- -- Policy loans (net of repayments) (note 5) .............................. 15,041 (96,812) -- -- (15,446) (10,308) -- (7) Deductions for surrender charges (note 2d) ............................. (16,532) (28,161) -- -- (11,033) (6,141) -- -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ..................... (369,097) (418,963) 2 -- (194,730) (88,581) -- (1,510) Asset charges (note 3): MSP contracts ......................... (1,170) (4,179) -- -- (1,279) (1,985) -- -- LSFP contracts ........................ (3,093) (3,881) -- -- (934) (846) -- (4) ----------- ---------- ------ --- --------- --------- --- ------- Net equity transactions ............ (343,083) (1,663,982) 23,971 -- 342,788 1,470,128 -- (23,975) ----------- ---------- ------ --- --------- --------- --- ------- Net change in contract owners' equity ....... 1,497,273 (5,456,387) 24,448 -- 774,937 1,229,961 -- (28,057) Contract owners' equity beginning of period ................................ 10,409,890 18,229,025 -- -- 3,842,211 3,340,634 -- 81,927 ----------- ---------- ------ --- --------- --------- --- ------- Contract owners' equity end of period ....... $11,907,163 12,772,638 24,448 -- 4,617,148 4,570,595 -- 53,870 =========== ========== ====== === ========= ========= === ======= CHANGES IN UNITS: Beginning units .......................... 932,671 1,084,722 -- -- 445,821 325,991 -- 12,374 ----------- ---------- ------ --- --------- --------- --- ------- Units purchased .......................... 71,674 61,929 2,245 -- 77,180 159,613 -- 584 Units redeemed ........................... (103,398) (177,777) -- -- (42,744) (20,754) -- (4,082) ----------- ---------- ------ --- --------- --------- --- ------- Ending units ............................. 900,947 968,874 2,245 -- 480,257 464,850 -- 8,876 =========== ========== ====== === ========= ========= === =======
22 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
DrySmCapIxS DrySRGro --------------- ---------------------- 2003 2002 2003 2002 -------- ---- --------- ---------- Investment activity: Net investment income (loss) ................ $ (817) -- (31,012) (44,891) Realized gain (loss) on investments ......... 535 -- (390,957) (351,762) Change in unrealized gain (loss) on investments ........................... 40,868 (1) 1,233,282 (1,889,801) Reinvested capital gains .................... -- -- -- -- -------- --- --------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 40,586 (1) 811,313 (2,286,454) -------- --- --------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 1,921 42 673,084 922,402 Transfers between funds ..................... 106,065 -- (229,356) (800,917) Surrenders (note 6) ......................... -- -- (285,621) (353,884) Death benefits (note 4) ..................... -- -- (35,567) (19,361) Policy loans (net of repayments) (note 5) ... (5,181) -- 19,772 (35,158) Deductions for surrender charges (note 2d) .. -- -- (16,336) (21,696) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ 167,073 4 (391,379) (435,154) Asset charges (note 3): MSP contracts ............................ (56) -- (1,261) -- LSFP contracts ........................... (13) -- (1,581) -- -------- --- --------- ---------- Net equity transactions ............... 269,809 46 (268,245) (743,768) -------- --- --------- ---------- Net change in contract owners' equity .......... 310,395 45 543,068 (3,030,222) Contract owners' equity beginning of period ................................... 110,730 -- 8,486,022 13,612,330 -------- --- --------- ---------- Contract owners' equity end of period .......... $421,125 45 9,029,090 10,582,108 ======== === ========= ========== CHANGES IN UNITS: Beginning units ............................. 14,471 -- 505,221 573,971 -------- --- --------- ---------- Units purchased ............................. 36,309 5 44,169 40,436 Units redeemed .............................. (1,703) -- (60,759) (73,722) -------- --- --------- ---------- Ending units ................................ 49,077 5 488,631 540,685 ======== === ========= ========== DryStkIx DryVIFApp ------------------------ --------------------- 2003 2002 2003 2002 ---------- ----------- --------- --------- Investment activity: Net investment income (loss) ................ 254,935 203,366 (19,614) (24,928) Realized gain (loss) on investments ......... (1,108,323) 22,855 (896,727) (37,083) Change in unrealized gain (loss) on investments ........................... 7,900,600 (12,050,908) 1,348,730 (577,554) Reinvested capital gains .................... -- -- -- -- ---------- ----------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 7,047,212 (11,824,687) 432,389 (639,565) ---------- ----------- --------- --------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 3,618,531 4,365,583 268,542 352,474 Transfers between funds ..................... 394,366 (1,894,516) (13,644) 247,170 Surrenders (note 6) ......................... (1,760,074) (2,750,577) (234,565) (94,718) Death benefits (note 4) ..................... (37,017) (56,450) (2,993) (10,587) Policy loans (net of repayments) (note 5) ... 87,680 36,815 (8,635) (17,487) Deductions for surrender charges (note 2d) .. (100,664) (168,631) (13,415) (5,807) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (2,348,428) (2,064,286) (158,222) (152,973) Asset charges (note 3): MSP contracts ............................ (12,628) (16,143) (750) (1,252) LSFP contracts ........................... (23,827) (27,686) (2,724) (3,074) ---------- ----------- --------- --------- Net equity transactions ............... (182,061) (2,575,891) (166,406) 313,746 ---------- ----------- --------- --------- Net change in contract owners' equity .......... 6,865,151 (14,400,578) 265,983 (325,819) Contract owners' equity beginning of period ................................... 63,819,155 88,822,689 5,733,185 6,748,865 ---------- ----------- --------- --------- Contract owners' equity end of period .......... 70,684,306 74,422,111 5,999,168 6,423,046 ========== =========== ========= ========= CHANGES IN UNITS: Beginning units ............................. 3,317,324 3,551,969 534,799 520,418 ---------- ----------- --------- --------- Units purchased ............................. 231,055 141,012 35,717 47,996 Units redeemed .............................. (240,047) (244,600) (53,223) (23,928) ---------- ----------- --------- --------- Ending units ................................ 3,308,332 3,448,381 517,293 544,486 ========== =========== ========= =========
(Continued) 23 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
DryDevLeadI DryVIFGrInc FedAmLdII FedCpApII -------------- --------------------- ----------------- -------------- 2003 2002 2003 2002 2003 2002 2003 2002 ------ ------ --------- --------- --------- ----- ------ ----- Investment activity: Net investment income (loss) ................ $ (2) -- 1,515 (2,225) -- -- -- -- Realized gain (loss) on investments ......... 1 -- (145,224) (15,841) -- -- -- -- Change in unrealized gain (loss) on investments ........................... 12 -- 338,825 (426,861) (23) -- (25) -- Reinvested capital gains .................... -- -- -- -- -- -- -- -- ------ --- --------- --------- ----- --- ----- --- Net increase (decrease) in contract owners' equity resulting from operations ............................ 11 -- 195,116 (444,927) (23) -- (25) -- ------ --- --------- --------- ----- --- ----- --- Equity transactions: Purchase payments received from contract owners (note 6) ................. 55 -- 109,894 117,641 -- -- -- -- Transfers between funds ..................... 4,235 -- (26,494) (11,837) 1,348 -- 1,348 -- Surrenders (note 6) ......................... -- -- (114,493) (53,600) -- -- -- -- Death benefits (note 4) ..................... -- -- -- (7,828) -- -- -- -- Policy loans (net of repayments) (note 5) ... -- -- (13,537) (5,710) -- -- -- -- Deductions for surrender charges (note 2d) .. -- -- (6,548) (3,286) -- -- -- -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (30) -- (67,960) (68,685) 2 -- 5 -- Asset charges (note 3): MSP contracts ............................ -- -- (911) (1,316) -- -- -- -- LSFP contracts ........................... -- -- (826) (964) -- -- -- -- ------ --- --------- --------- ----- --- ----- --- Net equity transactions ............... 4,260 -- (120,875) (35,585) 1,350 -- 1,353 -- ------ --- --------- --------- ----- --- ----- --- Net change in contract owners' equity .......... 4,271 -- 74,241 (480,512) 1,327 -- 1,328 -- Contract owners' equity beginning of period ................................... -- -- 2,056,526 2,888,177 -- -- -- -- ------ --- --------- --------- ----- --- ----- --- Contract owners' equity end of period .......... $4,271 -- 2,130,767 2,407,665 1,327 -- 1,328 -- ====== === ========= ========= ===== === ===== === CHANGES IN UNITS: Beginning units ............................. -- -- 208,582 217,273 -- -- -- -- ------ --- --------- --------- ----- --- ----- --- Units purchased ............................. 396 -- 18,735 10,054 122 -- 125 -- Units redeemed .............................. (3) -- (31,348) (12,820) -- -- -- -- ------ --- --------- --------- ----- --- ----- --- Ending units ................................ 393 -- 195,969 214,507 122 -- 125 -- ====== === ========= ========= ===== === ===== ===
24 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
FGVITHiInc FedQualBd --------------- ------------------- 2003 2002 2003 2002 ------- ------ --------- ------- Investment activity: Net investment income (loss) ................ $ 712 -- 63,088 (518) Realized gain (loss) on investments ......... -- -- 60,092 349 Change in unrealized gain (loss) on investments ........................... (233) -- (36,835) 7,065 Reinvested capital gains .................... -- -- -- -- ------- --- --------- ------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 479 -- 86,345 6,896 ------- --- --------- ------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 56 -- 104,501 1,364 Transfers between funds ..................... 73,506 -- 568,003 604,452 Surrenders (note 6) ......................... -- -- (100,328) (15,166) Death benefits (note 4) ..................... -- -- -- -- Policy loans (net of repayments) (note 5) ... -- -- (11,362) -- Deductions for surrender charges (note 2d) .. -- -- (5,738) (930) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (361) -- (54,666) (3,719) Asset charges (note 3): MSP contracts ............................ (10) -- (504) (2) LSFP contracts ........................... -- -- (412) (25) ------- --- --------- ------- Net equity transactions ............... 73,191 -- 499,494 585,974 ------- --- --------- ------- Net change in contract owners' equity .......... 73,670 -- 585,839 592,870 Contract owners' equity beginning of period ................................... -- -- 1,262,615 -- ------- --- --------- ------- Contract owners' equity end of period .......... $73,670 -- 1,848,454 592,870 ======= === ========= ======= CHANGES IN UNITS: Beginning units ............................. -- -- 117,678 -- ------- --- --------- ------- Units purchased ............................. 7,191 -- 64,241 60,619 Units redeemed .............................. (36) -- (16,876) (1,960) ------- --- --------- ------- Ending units ................................ 7,155 -- 165,043 58,659 ======= === ========= ======= FidVIPEI FidVIPGr ----------------------- ------------------------ 2003 2002 2003 2002 ---------- ---------- ---------- ----------- Investment activity: Net investment income (loss) ................ 911,747 913,581 (73,674) (179,946) Realized gain (loss) on investments ......... (1,154,032) (404,127) (3,865,875) (2,289,880) Change in unrealized gain (loss) on investments ........................... 6,192,747 (7,151,662) 13,555,755 (20,322,744) Reinvested capital gains .................... -- 1,645,146 -- -- ---------- ---------- ---------- ----------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 5,950,462 (4,997,062) 9,616,206 (22,792,570) ---------- ---------- ---------- ----------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 2,773,965 3,520,956 4,690,966 5,521,488 Transfers between funds ..................... (174,610) (136,493) (1,770,239) (3,236,387) Surrenders (note 6) ......................... (1,934,052) (2,132,618) (2,453,890) (2,843,328) Death benefits (note 4) ..................... (91,889) (303,680) (109,027) (96,620) Policy loans (net of repayments) (note 5) ... 160,066 (292,872) 584,467 (361,201) Deductions for surrender charges (note 2d) .. (110,614) (130,745) (140,345) (174,317) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (1,836,556) (1,840,578) (2,816,594) (2,921,416) Asset charges (note 3): MSP contracts ............................ (12,405) (18,864) (10,266) (17,677) LSFP contracts ........................... (10,144) (11,744) (11,759) (14,590) ---------- ---------- ---------- ----------- Net equity transactions ............... (1,236,239) (1,346,638) (2,036,687) (4,144,048) ---------- ---------- ---------- ----------- Net change in contract owners' equity .......... 4,714,223 (6,343,700) 7,579,519 (26,936,618) Contract owners' equity beginning of period ................................... 59,751,461 77,024,402 75,663,436 119,372,389 ---------- ---------- ---------- ----------- Contract owners' equity end of period .......... 64,465,684 70,680,702 83,242,955 92,435,771 ========== ========== ========== =========== CHANGES IN UNITS: Beginning units ............................. 2,146,294 2,285,562 2,922,853 3,226,113 ---------- ---------- ---------- ----------- Units purchased ............................. 133,000 108,621 225,315 173,874 Units redeemed .............................. (179,026) (151,068) (313,996) (300,497) ---------- ---------- ---------- ----------- Ending units ................................ 2,100,268 2,243,115 2,834,172 3,099,490 ========== ========== ========== ===========
(Continued) 25 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
FidVIPHI FidVIPOv ------------------------ ----------------------- 2003 2002 2003 2002 ----------- ---------- ---------- ---------- Investment activity: Net investment income (loss) ......... $ 1,305,178 1,672,884 65,264 56,514 Realized gain (loss) on investments ....................... (486,005) (3,043,228) (246,473) (5,400,554) Change in unrealized gain (loss) on investments ............. 2,769,385 582,359 1,379,115 4,898,918 Reinvested capital gains ............. -- -- -- -- ----------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ..................... 3,588,558 (787,985) 1,197,906 (445,122) ----------- ---------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) .......... 939,448 900,310 801,223 842,129 Transfers between funds .............. 1,470,849 (311,858) (63,249) 168,130 Surrenders (note 6) .................. (663,347) (568,572) (666,116) (476,718) Death benefits (note 4) .............. (262,635) (12,944) (43,059) (53,831) Policy loans (net of repayments) (note 5) .......................... (7,819) (15,710) 93,744 (31,133) Deductions for surrender charges (note 2d) ......................... (37,939) (34,858) (38,097) (29,226) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ................. (634,517) (457,632) (437,016) (380,645) Asset charges (note 3): MSP contracts ..................... (7,553) (6,452) (1,689) (2,460) LSFP contracts .................... (5,268) (4,071) (2,231) (2,629) ----------- ---------- ---------- ---------- Net equity transactions ........ 791,219 (511,787) (356,490) 33,617 ----------- ---------- ---------- ---------- Net change in contract owners' equity ... 4,379,777 (1,299,772) 841,416 (411,505) Contract owners' equity beginning of period ............................ 20,706,049 16,642,189 12,425,622 17,277,545 ----------- ---------- ---------- ---------- Contract owners' equity end of period ... $25,085,826 15,342,417 13,267,038 16,866,040 =========== ========== ========== ========== CHANGES IN UNITS: Beginning units ...................... 1,206,230 1,017,739 968,581 1,067,775 ----------- ---------- ---------- ---------- Units purchased ...................... 143,655 31,670 70,803 55,729 Units redeemed ....................... (89,275) (68,655) (102,996) (51,117) ----------- ---------- ---------- ---------- Ending units ......................... 1,260,610 980,754 936,388 1,072,387 =========== ========== ========== ========== FidVIPAM FidVIPCon ----------------------- ----------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- Investment activity: Net investment income (loss) ......... 742,973 866,262 53,632 218,509 Realized gain (loss) on investments .. (361,761) (125,745) (713,114) (163,378) Change in unrealized gain (loss) on investments ....................... 1,746,420 (3,028,636) 4,619,011 (642,454) Reinvested capital gains ............. -- -- -- -- ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ..................... 2,127,632 (2,288,119) 3,959,529 (587,323) ---------- ---------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) .......... 904,308 916,490 2,015,792 2,372,565 Transfers between funds .............. 260,332 (406,455) 19,682 (1,706,431) Surrenders (note 6) .................. (919,543) (552,750) (1,006,044) (1,106,419) Death benefits (note 4) .............. (140,052) (19,130) (70,806) (21,782) Policy loans (net of repayments) (note 5) .......................... 80,703 (64,667) (64,522) (173,771) Deductions for surrender charges (note 2d) ......................... (52,591) (33,888) (57,539) (67,832) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ................. (590,125) (557,750) (1,506,399) (1,260,885) Asset charges (note 3): MSP contracts ..................... (3,331) (4,869) (6,680) (12,729) LSFP contracts .................... (1,771) (1,634) (10,288) (11,117) ---------- ---------- ---------- ---------- Net equity transactions ........ (462,070) (724,653) (686,804) (1,988,401) ---------- ---------- ---------- ---------- Net change in contract owners' equity ... 1,665,562 (3,012,772) 3,272,725 (2,575,724) Contract owners' equity beginning of period ............................ 22,343,721 26,615,885 44,077,392 52,593,790 ---------- ---------- ---------- ---------- Contract owners' equity end of period ... 24,009,283 23,603,113 47,350,117 50,018,066 ========== ========== ========== ========== CHANGES IN UNITS: Beginning units ...................... 1,013,935 1,094,419 2,364,387 2,539,821 ---------- ---------- ---------- ---------- Units purchased ...................... 61,874 48,008 140,367 122,070 Units redeemed ....................... (88,069) (76,769) (178,236) (217,710) ---------- ---------- ---------- ---------- Ending units ......................... 987,740 1,065,658 2,326,518 2,444,181 ========== ========== ========== ==========
26 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
FidVIPInvGrB FidVIPGrOp FidVIPMCap FidVIPValStS -------------- ---------------------- -------------- --------------- 2003 2002 2003 2002 2003 2002 2003 2002 ------ ----- --------- ---------- ------ ----- -------- ---- Investment activity: Net investment income (loss) ................. $ (5) -- 15,297 24,582 (15) -- (926) -- Realized gain (loss) on investments .......... -- -- (136,292) (153,287) 6 -- 53,550 -- Change in unrealized gain (loss) on investments ............................ (13) -- 520,245 (426,960) 477 -- (3,897) -- Reinvested capital gains ..................... -- -- -- -- -- -- -- -- ------ --- --------- ---------- ------ --- -------- --- Net increase (decrease) in contract owners' equity resulting from operations ............................. (18) -- 399,250 (555,665) 468 -- 48,727 -- ------ --- --------- ---------- ------ --- -------- --- Equity transactions: Purchase payments received from contract owners (note 6) .................. 85 -- 253,138 336,231 243 -- 8,680 -- Transfers between funds ...................... 6,229 -- 65,817 (218,867) 21,929 -- 948,565 -- Surrenders (note 6) .......................... -- -- (57,753) (59,759) -- -- (41,159) -- Death benefits (note 4) ...................... -- -- (3,161) (4,698) -- -- -- -- Policy loans (net of repayments) (note 5) .... -- -- 3,873 (11,061) -- -- (110,875) -- Deductions for surrender charges (note 2d) ... -- -- (3,303) (3,664) -- -- (2,354) -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ......................... (32) -- (108,448) (110,796) (165) -- (5,173) -- Asset charges (note 3): MSP contracts ............................. -- -- (679) (984) -- -- (317) -- LSFP contracts ............................ -- -- (1,116) (1,202) -- -- (33) -- ------ --- --------- ---------- ------ --- -------- --- Net equity transactions ................ 6,282 -- 148,368 (74,800) 22,007 -- 797,334 -- ------ --- --------- ---------- ------ --- -------- --- Net change in contract owners' equity ........... 6,264 -- 547,618 (630,465) 22,475 -- 846,061 -- Contract owners' equity beginning of period .................................... -- -- 3,035,034 4,129,080 -- -- 95,798 -- ------ --- --------- ---------- ------ --- -------- --- Contract owners' equity end of period ........... $6,264 -- 3,582,652 3,498,615 22,475 -- 941,859 -- ====== === ========= ========== ====== === ======== === CHANGES IN UNITS: Beginning units .............................. -- -- 398,008 420,111 -- -- 12,826 -- ------ --- --------- ---------- ------ --- -------- --- Units purchased .............................. 620 -- 47,531 39,967 2,048 -- 110,417 -- Units redeemed ............................... (3) -- (28,612) (48,266) (15) -- (19,241) -- ------ --- --------- ---------- ------ --- -------- --- Ending units ................................. 617 -- 416,927 411,812 2,033 -- 104,002 -- ====== === ========= ========== ====== === ======== ===
(Continued) 27 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
FTVIPFRDiv FTVIPSmCpVal FTVIPFS GVITEmMrkts --------------- -------------- -------------- -------------------- 2003 2002 2003 2002 2003 2002 2003 2002 -------- ------ ------ ------ ------ ------ -------- --------- Investment activity: Net investment income (loss) ................ $ 465 -- 46 -- 915 -- (35) (1,901) Realized gain (loss) on investments ......... (292) -- 1 -- 2,160 -- 19,247 23,005 Change in unrealized gain (loss) on investments ........................... (1,242) -- 445 -- (871) -- 20,427 (45,284) Reinvested capital gains .................... 1,516 -- -- -- -- -- -- -- ------- --- ------ --- ------ --- -------- --------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 447 -- 492 -- 2,204 -- 39,639 (24,180) ------- --- ------ --- ------ --- -------- --------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 18 -- 4 -- 10,000 -- 70,663 21,508 Transfers between funds ..................... 36,945 -- 19,130 -- 37,740 -- 96,583 824,849 Surrenders (note 6) ......................... -- -- -- -- -- -- (124,517) (5,931) Death benefits (note 4) ..................... -- -- -- -- -- -- -- (1,829) Policy loans (net of repayments) (note 5) ... -- -- -- -- -- -- (7,179) (34,566) Deductions for surrender charges (note 2d) .. -- -- -- -- -- -- (7,121) (364) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (87) -- -- -- (24) -- (7,167) (9,689) Asset charges (note 3): MSP contracts ............................ -- -- -- -- (15) -- (187) (309) LSFP contracts ........................... -- -- -- -- -- -- (30) (87) ------- --- ------ --- ------ --- -------- --------- Net equity transactions ............... 36,876 -- 19,134 -- 47,701 -- 21,045 793,582 ------- --- ------ --- ------ --- -------- --------- Net change in contract owners' equity .......... 37,323 -- 19,626 -- 49,905 -- 60,684 769,402 Contract owners' equity beginning of period ................................... -- -- -- -- -- -- 273,867 427,577 ------- --- ------ --- ------ --- -------- --------- Contract owners' equity end of period .......... $37,323 -- 19,626 -- 49,905 -- 334,551 1,196,979 ======= === ====== === ====== === ======== ========= CHANGES IN UNITS: Beginning units .......................... -- -- -- -- -- -- 39,708 52,012 ------- --- ------ --- ------ --- -------- --------- Units purchased .......................... 3,552 -- 1,778 -- 4,638 -- 12,166 104,783 Units redeemed ........................... (8) -- -- -- (4) -- (9,977) (6,039) ------- --- ------ --- ------ --- -------- --------- Ending units ............................. 3,544 -- 1,778 -- 4,634 -- 41,897 150,756 ======= === ====== === ====== === ======== =========
28 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
GVITGIFin GVITGIHlth GVITGITech GVITGlUtl ---------------- ---------------- ------------------ --------------- 2003 2002 2003 2002 2003 2002 2003 2002 -------- ----- -------- ----- ------- -------- ------- ----- Investment activity: Net investment income (loss) ................ $ (402) (1) (2,003) (5) (1,132) 450 (139) (5) Realized gain (loss) on investments ......... 10,721 (49) 53,028 (143) 19,554 (97,067) 2,552 (121) Change in unrealized gain (loss) on investments ........................... 5,139 (5) 77,569 (303) 44,128 (35,900) 4,469 (70) Reinvested capital gains .................... -- -- -- -- -- -- -- -- -------- ----- -------- ----- ------- -------- ------- ----- Net increase (decrease) in contract owners' equity resulting from operations ............................ 15,458 (55) 128,594 (451) 62,550 (132,517) 6,882 (196) -------- ----- -------- ----- ------- -------- ------- ----- Equity transactions: Purchase payments received from contract owners (note 6) ................. 3,587 -- 10,981 99 5,549 26,131 217 75 Transfers between funds ..................... 27,674 1,222 559,414 5,324 361,446 29,613 78,110 1,318 Surrenders (note 6) ......................... (17,923) -- (147,999) -- (39,244) (51,948) -- -- Death benefits (note 4) ..................... -- -- -- -- -- -- -- -- Policy loans (net of repayments) (note 5) ... 156 (997) (6,602) (965) (2,598) 24,960 2,636 -- Deductions for surrender charges (note 2d) .. (1,025) -- (8,465) -- (2,244) (3,185) -- -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (1,886) 2 (8,502) (12) (12,350) (12,898) (835) (14) Asset charges (note 3): MSP contracts ............................ (16) -- (60) -- (156) (107) (13) -- LSFP contracts ........................... (2) -- (28) -- (9) -- (46) -- -------- ----- -------- ----- ------- -------- ------- ----- Net equity transactions ............... 10,565 227 398,739 4,446 310,394 12,566 80,069 1,379 -------- ----- -------- ----- ------- -------- ------- ----- Net change in contract owners' equity .......... 26,023 172 527,333 3,995 372,944 (119,951) 86,951 1,183 Contract owners' equity beginning of period ................................... 64,491 -- 155,708 -- 261,090 349,973 35,904 -- -------- ----- -------- ----- ------- -------- ------- ----- Contract owners' equity end of period .......... $ 90,514 172 683,041 3,995 634,034 230,022 122,855 1,183 ======== ===== ======== ===== ======= ======== ======= ===== CHANGES IN UNITS: Beginning units ............................. 7,495 -- 18,805 -- 134,649 102,616 4,164 -- -------- ----- -------- ----- ------- -------- ------- ----- Units purchased ............................. 4,270 125 63,220 570 146,457 26,384 8,848 129 Units redeemed .............................. (2,475) (107) (16,446) (120) (20,478) (29,579) (118) (2) -------- ----- -------- ----- ------- -------- ------- ----- Ending units ................................ 9,290 18 65,579 450 260,628 99,421 12,894 127 ======== ===== ======== ===== ======= ======== ======= =====
(Continued) 29 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
GVITGvtBd GVITGrowth ------------------------ ----------------------- 2003 2002 2003 2002 ----------- ---------- ---------- ---------- Investment activity: Net investment income (loss) ................ $ 355,508 347,225 (50,345) (64,011) Realized gain (loss) on investments ......... 110,787 (11,902) (2,144,193) (874,267) Change in unrealized gain (loss) on investments ........................... 136,543 330,669 4,139,784 (2,342,672) Reinvested capital gains .................... 29,787 18,684 -- -- ----------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 632,625 684,676 1,945,246 (3,280,950) ----------- ---------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 809,176 521,267 1,496,958 1,882,826 Transfers between funds ..................... (816,840) 1,379,921 (308,050) (560,635) Surrenders (note 6) ......................... (1,310,863) (1,193,939) (652,153) (419,757) Death benefits (note 4) ..................... (16,462) (32,722) (48,434) (47,039) Policy loans (net of repayments) (note 5) ... 12,456 (242,031) 111,750 29,641 Deductions for surrender charges (note 2d) .. (74,972) (73,197) (37,299) (25,734) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (658,063) (367,780) (713,809) (716,452) Asset charges (note 3): MSP contracts ............................ (9,144) (8,101) (2,089) (2,941) LSFP contracts ........................... (5,268) (3,819) (3,363) (4,588) ----------- ---------- ---------- ---------- Net equity transactions ............... (2,069,980) (20,401) (156,489) 135,321 ----------- ---------- ---------- ---------- Net change in contract owners' equity .......... (1,437,355) 664,275 1,788,757 (3,145,629) Contract owners' equity beginning of period ................................... 22,381,392 18,686,828 13,411,563 18,678,345 ----------- ---------- ---------- ---------- Contract owners' equity end of period .......... $20,944,037 19,351,103 15,200,320 15,532,716 =========== ========== ========== ========== CHANGES IN UNITS: Beginning units ............................. 1,024,071 940,162 1,170,029 1,157,307 ----------- ---------- ---------- ---------- Units purchased ............................. 66,166 94,039 136,342 128,412 Units redeemed .............................. (163,853) (94,147) (149,416) (121,142) ----------- ---------- ---------- ---------- Ending units ................................ 926,384 940,054 1,156,955 1,164,577 =========== ========== ========== ========== GVITIDAgg GVITIDCon ----------------- ----------------- 2003 2002 2003 2002 ------- ------- ------- ------- Investment activity: Net investment income (loss) ................ 505 277 3,815 533 Realized gain (loss) on investments ......... (393) (57) (1,835) (12) Change in unrealized gain (loss) on investments ........................... 20,334 (6,795) 14,995 (1,278) Reinvested capital gains .................... -- 22 -- 1 ------- ------- ------- ------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 20,446 (6,553) 16,975 (756) ------- ------- ------- ------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 18,179 12,117 19,088 33 Transfers between funds ..................... 65,872 121,807 113,571 127,002 Surrenders (note 6) ......................... 1 (6,363) -- -- Death benefits (note 4) ..................... -- -- -- -- Policy loans (net of repayments) (note 5) ... 971 (2,139) (3,030) (687) Deductions for surrender charges (note 2d) .. -- (390) -- -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (9,590) (3,503) (9,592) (465) Asset charges (note 3): MSP contracts ............................ -- -- (212) -- LSFP contracts ........................... -- -- (142) (23) ------- ------- ------- ------- Net equity transactions ............... 75,433 121,529 119,683 125,860 ------- ------- ------- ------- Net change in contract owners' equity .......... 95,879 114,976 136,658 125,104 Contract owners' equity beginning of period ................................... 146,457 -- 317,556 -- ------- ------- ------- ------- Contract owners' equity end of period .......... 242,336 114,976 454,214 125,104 ======= ======= ======= ======= CHANGES IN UNITS: Beginning units ............................. 17,710 -- 31,754 -- ------- ------- ------- ------- Units purchased ............................. 10,115 13,659 16,141 13,039 Units redeemed .............................. (1,291) (1,511) (4,017) (509) ------- ------- ------- ------- Ending units ................................ 26,534 12,148 43,878 12,530 ======= ======= ======= =======
30 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
GVITIDMod GVITIDModAgg -------------------- ------------------- 2003 2002 2003 2002 ---------- ------- --------- ------- Investment activity: Net investment income (loss) ................ $ 7,426 375 4,005 1,445 Realized gain (loss) on investments ......... (7,404) (3) (29,824) 107 Change in unrealized gain (loss) on investments ........................... 102,712 (3,809) 115,837 (24,319) Reinvested capital gains .................... -- -- -- 21 ---------- ------- --------- ------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 102,734 (3,437) 90,018 (22,746) ---------- ------- --------- ------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 78,616 3,075 70,789 6,455 Transfers between funds ..................... 728,807 106,540 39,285 467,183 Surrenders (note 6) ......................... (22,574) -- (15,939) -- Death benefits (note 4) ..................... -- -- -- -- Policy loans (net of repayments) (note 5) ... (23,646) (129) 23,759 (128) Deductions for surrender charges (note 2d) .. (1,291) -- (912) -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (36,360) (823) (51,013) (5,374) Asset charges (note 3): MSP contracts ............................ (657) -- (289) -- LSFP contracts ........................... (56) -- (205) -- ---------- ------- --------- ------- Net equity transactions ............... 722,839 108,663 65,475 468,136 ---------- ------- --------- ------- Net change in contract owners' equity .......... 825,573 105,226 155,493 445,390 Contract owners' equity beginning of period ................................... 543,695 -- 942,689 -- ---------- ------- --------- ------- Contract owners' equity end of period .......... $1,369,268 105,226 1,098,182 445,390 ========== ======= ========= ======= CHANGES IN UNITS: Beginning units ............................. 59,819 -- 109,211 -- ---------- ------- --------- ------- Units purchased ............................. 88,406 10,986 23,070 47,278 Units redeemed .............................. (7,944) (95) (15,616) (708) ---------- ------- --------- ------- Ending units ................................ 140,281 10,891 116,665 46,570 ========== ======= ========= ======= GVITIDModCon GVITIntGro ---------------- ----------------- 2003 2002 2003 2002 ------- ------ ------- ------- Investment activity: Net investment income (loss) ................ 4,167 87 (209) (85) Realized gain (loss) on investments ......... (1,422) -- (1,953) 1,791 Change in unrealized gain (loss) on investments ........................... 26,619 (397) 2,992 (1,930) Reinvested capital gains .................... -- -- -- -- ------- ------ ------- ------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 29,364 (310) 830 (224) ------- ------ ------- ------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 24,388 471 26,982 1,100 Transfers between funds ..................... 327,026 20,129 (24,149) 7,252 Surrenders (note 6) ......................... -- -- (23,594) (37,956) Death benefits (note 4) ..................... -- -- -- -- Policy loans (net of repayments) (note 5) ... (15) (16) 81 (1,376) Deductions for surrender charges (note 2d) .. -- -- (1,349) (2,327) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (12,873) (301) (1,349) (1,070) Asset charges (note 3): MSP contracts ............................ (431) -- -- -- LSFP contracts ........................... (75) -- (2) -- ------- ------ ------- ------- Net equity transactions ............... 338,020 20,283 (23,380) (34,377) ------- ------ ------- ------- Net change in contract owners' equity .......... 367,384 19,973 (22,550) (34,601) Contract owners' equity beginning of period ................................... 268,892 -- 55,057 55,253 ------- ------ ------- ------- Contract owners' equity end of period .......... 636,276 19,973 32,507 20,652 ======= ====== ======= ======= CHANGES IN UNITS: Beginning units ............................. 28,027 -- 11,233 8,456 ------- ------ ------- ------- Units purchased ............................. 36,300 2,073 1,896 1,405 Units redeemed .............................. (1,426) (41) (6,813) (6,431) ------- ------ ------- ------- Ending units ................................ 62,901 2,032 6,316 3,430 ======= ====== ======= =======
(Continued) 31 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
GVITMyMkt GVITLead ------------------------ ---------------- 2003 2002 2003 2002 ----------- ---------- ------- ------ Investment activity: Net investment income (loss) ................ $ (470) 127,148 (116) (49) Realized gain (loss) on investments ......... -- -- (4,549) (651) Change in unrealized gain (loss) on investments ........................... -- -- 8,386 (1,738) Reinvested capital gains .................... -- -- -- -- ----------- ---------- ------- ------ Net increase (decrease) in contract owners' equity resulting from operations ............................ (470) 127,148 3,721 (2,438) ----------- ---------- ------- ------ Equity transactions: Purchase payments received from contract owners (note 6) ................. 2,261,719 2,205,112 7,674 254 Transfers between funds ..................... (1,137,238) 3,630,194 (44,049) 75,842 Surrenders (note 6) ......................... (4,379,433) (4,416,703) -- -- Death benefits (note 4) ..................... (2,723) (64,949) -- -- Policy loans (net of repayments) (note 5) ... (78,834) 610,291 (1,094) -- Deductions for surrender charges (note 2d) .. (250,468) (270,777) -- -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (1,113,184) (1,005,152) (2,273) (306) Asset charges (note 3): MSP contracts ............................ (23,555) (22,750) (31) (15) LSFP contracts ........................... (11,398) (21,596) -- -- ----------- ---------- ------- ------ Net equity transactions ............... (4,735,114) 643,670 (39,773) 75,775 ----------- ---------- ------- ------ Net change in contract owners' equity .......... (4,735,584) 770,818 (36,052) 73,337 Contract owners' equity beginning of period ................................... 46,764,573 51,650,867 115,036 -- ----------- ---------- ------- ------ Contract owners' equity end of period .......... $42,028,989 52,421,685 78,984 73,337 =========== ========== ======= ====== CHANGES IN UNITS: Beginning units ............................. 3,181,070 3,540,015 13,679 -- ----------- ---------- ------- ------ Units purchased ............................. 271,608 310,646 620 7,591 Units redeemed .............................. (607,628) (259,330) (5,493) (34) ----------- ---------- ------- ------ Ending units ................................ 2,845,050 3,591,331 8,806 7,557 =========== ========== ======= ====== GVITSmCapGr GVITSmCapVal --------------------- ----------------------- 2003 2002 2003 2002 --------- --------- ---------- ---------- Investment activity: Net investment income (loss) ................ (3,858) (4,822) (32,147) (57,391) Realized gain (loss) on investments ......... 38,271 (41,401) (532,825) (289,903) Change in unrealized gain (loss) on investments ........................... 106,190 (245,642) 2,205,190 (2,161,092) Reinvested capital gains .................... -- -- -- 308,760 --------- --------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 140,603 (291,865) 1,640,218 (2,199,626) --------- --------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 170,306 51,482 491,342 643,105 Transfers between funds ..................... (244,331) 182,815 54,656 203,698 Surrenders (note 6) ......................... (36,075) (69,171) (497,302) (427,008) Death benefits (note 4) ..................... -- (1,609) (62,896) -- Policy loans (net of repayments) (note 5) ... (33,462) (4,514) 40,169 (102,594) Deductions for surrender charges (note 2d) .. (2,063) (4,241) (28,442) (26,179) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (39,024) (37,193) (241,087) (321,858) Asset charges (note 3): MSP contracts ............................ (131) (332) (2,882) (4,082) LSFP contracts ........................... (304) (320) (4,518) (5,491) --------- --------- ---------- ---------- Net equity transactions ............... (185,084) 116,917 (250,960) (40,409) --------- --------- ---------- ---------- Net change in contract owners' equity .......... (44,481) (174,948) 1,389,258 (2,240,035) Contract owners' equity beginning of period ................................... 1,258,941 1,332,775 9,270,589 15,781,967 --------- --------- ---------- ---------- Contract owners' equity end of period .......... 1,214,460 1,157,827 10,659,847 13,541,932 ========= ========= ========== ========== CHANGES IN UNITS: Beginning units ............................. 265,763 186,280 838,299 1,034,902 --------- --------- ---------- ---------- Units purchased ............................. 22,365 31,850 67,723 87,764 Units redeemed .............................. (65,680) (16,267) (94,617) (107,294) --------- --------- ---------- ---------- Ending units ................................ 222,448 201,863 811,405 1,015,372 ========= ========= ========== ==========
32 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
GVITSmComp GVITTotRt ------------------------ ----------------------- 2003 2002 2003 2002 ----------- ---------- ---------- ---------- Investment activity: Net investment income (loss) ................ $ (72,149) (90,859) 5,339 (46,705) Realized gain (loss) on investments ......... (799,724) (1,482,234) (1,302,113) (792,044) Change in unrealized gain (loss) on investments ........................... 3,779,158 308,144 8,332,178 (3,976,829) Reinvested capital gains .................... -- -- -- -- ----------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 2,907,285 (1,264,949) 7,035,404 (4,815,578) ----------- ---------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 910,228 1,200,595 4,229,059 4,775,662 Transfers between funds ..................... (254,972) 110,233 (848,690) (598,722) Surrenders (note 6) ......................... (416,180) (452,213) (1,678,442) (1,756,483) Death benefits (note 4) ..................... (5,221) (39,732) (117,268) (276,546) Policy loans (net of repayments) (note 5) ... (76,444) (158,114) 173,163 (405,060) Deductions for surrender charges (note 2d) .. (23,803) (27,724) (95,995) (107,686) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (621,563) (640,008) (2,786,609) (2,780,239) Asset charges (note 3): MSP contracts ............................ (5,466) (7,618) (11,890) (15,325) LSFP contracts ........................... (4,823) (5,568) (7,742) (9,578) ----------- ---------- ---------- ---------- Net equity transactions ............... (498,244) (20,149) (1,144,414) (1,173,977) ----------- ---------- ---------- ---------- Net change in contract owners' equity .......... 2,409,041 (1,285,098) 5,890,990 (5,989,555) Contract owners' equity beginning of period ................................... 20,084,696 25,607,027 60,325,564 77,220,609 ----------- ---------- ---------- ---------- Contract owners' equity end of period .......... $22,493,737 24,321,929 66,216,554 71,231,054 =========== ========== ========== ========== CHANGES IN UNITS: Beginning units ............................. 1,090,705 1,141,976 2,622,768 2,758,504 ----------- ---------- ---------- ---------- Units purchased ............................. 62,585 66,895 193,427 175,140 Units redeemed .............................. (89,303) (69,962) (248,763) (216,532) ----------- ---------- ---------- ---------- Ending units ................................ 1,063,987 1,138,909 2,567,432 2,717,112 =========== ========== ========== ========== GVITUSGro JanCapAp ---------------- --------------------- 2003 2002 2003 2002 -------- ------ --------- --------- Investment activity: Net investment income (loss) ................ (874) (1) (4,313) (4,326) Realized gain (loss) on investments ......... 30,071 (1) (48,667) (249,592) Change in unrealized gain (loss) on investments ........................... 20,757 (208) 236,216 51,696 Reinvested capital gains .................... -- -- -- -- -------- ----- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 49,954 (210) 183,236 (202,222) -------- ----- --------- --------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 2,677 -- 157,672 167,283 Transfers between funds ..................... 578,694 3,249 62,506 64,696 Surrenders (note 6) ......................... (32,076) -- (73,926) (105,465) Death benefits (note 4) ..................... -- -- -- -- Policy loans (net of repayments) (note 5) ... (132,577) -- 11,817 (7,769) Deductions for surrender charges (note 2d) .. (1,834) -- (4,228) (6,466) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ 2,733 (28) (79,351) (80,599) Asset charges (note 3): MSP contracts ............................ -- -- (669) (760) LSFP contracts ........................... (23) -- (604) (657) -------- ----- --------- --------- Net equity transactions ............... 417,594 3,221 73,217 30,263 -------- ----- --------- --------- Net change in contract owners' equity .......... 467,548 3,011 256,453 (171,959) Contract owners' equity beginning of period ................................... 80,915 -- 2,253,876 2,628,238 -------- ----- --------- --------- Contract owners' equity end of period .......... 548,463 3,011 2,510,329 2,456,279 ======== ===== ========= ========= CHANGES IN UNITS: Beginning units ............................. 9,894 -- 440,390 428,785 -------- ----- --------- --------- Units purchased ............................. 60,299 345 46,606 54,818 Units redeemed .............................. (17,226) (3) (33,731) (50,892) -------- ----- --------- --------- Ending units ................................ 52,967 342 453,265 432,711 ======== ===== ========= =========
(Continued) 33 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
JanGITech JanIntGro ---------------------- --------------------- 2003 2002 2003 2002 ---------- --------- --------- --------- Investment activity: Net investment income (loss) ................ $ (3,459) (5,468) 7,178 (2,132) Realized gain (loss) on investments ......... (251,713) (91,434) 2,535 (52,226) Change in unrealized gain (loss) on investments ........................... 429,860 (429,139) 74,279 (143,252) Reinvested capital gains .................... -- -- -- -- ---------- --------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 174,688 (526,041) 83,992 (197,610) ---------- --------- --------- --------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 102,465 131,177 195,658 110,316 Transfers between funds ..................... 125,614 (218,951) (40,413) 887,468 Surrenders (note 6) ......................... (32,148) (121,466) (109,497) (80,115) Death benefits (note 4) ..................... -- -- -- (2,290) Policy loans (net of repayments) (note 5) ... (6,451) 20,275 (6,235) 8,220 Deductions for surrender charges (note 2d) .. (1,839) (7,447) (6,262) (4,912) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (72,983) (43,200) (45,396) (54,216) Asset charges (note 3): MSP contracts ............................ (377) (548) (335) (472) LSFP contracts ........................... (306) (318) (455) (569) ---------- --------- --------- --------- Net equity transactions ............... 113,975 (240,478) (12,935) 863,430 ---------- --------- --------- --------- Net change in contract owners' equity .......... 288,663 (766,519) 71,057 665,820 Contract owners' equity beginning of period ................................... 879,767 1,884,814 1,481,877 1,951,169 ---------- --------- --------- --------- Contract owners' equity end of period .......... $1,168,430 1,118,295 1,552,934 2,616,989 ========== ========= ========= ========= CHANGES IN UNITS: Beginning units ............................. 357,176 449,115 334,648 324,749 ---------- --------- --------- --------- Units purchased ............................. 83,737 (13,425) 34,607 183,703 Units redeemed .............................. (38,485) (55,781) (38,301) (10,381) ---------- --------- --------- --------- Ending units ................................ 402,428 379,909 330,954 498,071 ========== ========= ========= ========= JanRsLgCpCr MGVITMultiSec -------------- ------------------- 2003 2002 2003 2002 ------ ------ --------- ------- Investment activity: Net investment income (loss) ................ -- -- 40,023 16,973 Realized gain (loss) on investments ......... -- -- 75,939 2,108 Change in unrealized gain (loss) on investments ........................... (24) -- 452 (10,232) Reinvested capital gains .................... -- -- -- -- ----- --- --------- ------- Net increase (decrease) in contract owners' equity resulting from operations ............................ (24) -- 116,414 8,849 ----- --- --------- ------- Equity transactions: Purchase payments received from contract owners (note 6) ................. -- -- 75,698 23,513 Transfers between funds ..................... 1,328 -- 70,319 56,066 Surrenders (note 6) ......................... -- -- (80,123) (12,428) Death benefits (note 4) ..................... -- -- -- -- Policy loans (net of repayments) (note 5) ... -- -- 5,598 (1,370) Deductions for surrender charges (note 2d) .. -- -- (4,582) (762) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ 1 -- (32,664) (10,615) Asset charges (note 3): MSP contracts ............................ -- -- (373) (177) LSFP contracts ........................... -- -- (390) (51) ----- --- --------- ------- Net equity transactions ............... 1,329 -- 33,483 54,176 ----- --- --------- ------- Net change in contract owners' equity .......... 1,305 -- 149,897 63,025 Contract owners' equity beginning of period ................................... -- -- 1,348,659 624,691 ----- --- --------- ------- Contract owners' equity end of period .......... 1,305 -- 1,498,556 687,716 ===== === ========= ======= CHANGES IN UNITS: Beginning units ............................. -- -- 117,430 57,879 ----- --- --------- ------- Units purchased ............................. 123 -- 30,274 4,783 Units redeemed .............................. -- -- (26,163) (120) ----- --- --------- ------- Ending units ................................ 123 -- 121,541 62,542 ===== === ========= =======
34 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
MFSVITInvGrwI NBAMTBal NBAMTFas NBAMTGro --------------- --------------- ------------- ----------------------- 2003 2002 2003 2002 2003 2002 2003 2002 ------ ------ ------ ------ ----- ------ ---------- ---------- Investment activity: Net investment income (loss) ................ $ -- -- (189) 1,049 (13) -- (52,201) (73,036) Realized gain (loss) on investments ......... -- -- (261) (70) 484 -- (1,816,010) (2,731,368) Change in unrealized gain (loss) on investments ........................... (23) -- 3,876 (5,265) -- -- 3,642,785 (1,528,126) Reinvested capital gains .................... -- -- -- -- -- -- -- -- ------ --- ------ ------ ---- --- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ............................ (23) -- 3,426 (4,286) 471 -- 1,774,574 (4,332,530) ------ --- ------ ------ ---- --- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) ................. -- -- 647 423 -- -- 851,887 1,151,862 Transfers between funds ..................... 1,328 -- 5,392 37,230 254 -- 100,624 (3,210,445) Surrenders (note 6) ......................... -- -- -- -- (641) -- (1,197,804) (402,065) Death benefits (note 4) ..................... -- -- -- -- -- -- (16,319) (29,924) Policy loans (net of repayments) (note 5) ... -- -- 21 21 -- -- 733,940 (108,923) Deductions for surrender charges (note 2d) .. -- -- -- -- (37) -- (68,506) (24,650) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ 4 -- (1,092) (732) (47) -- (631,417) (564,898) Asset charges (note 3): MSP contracts ............................ -- -- -- -- -- -- (1,082) (4,696) LSFP contracts ........................... -- -- -- -- -- -- (2,531) (3,523) ------ --- ------ ------ ---- --- ---------- ---------- Net equity transactions ............... 1,332 -- 4,968 36,942 (471) -- (231,208) (3,197,262) ------ --- ------ ------ ---- --- ---------- ---------- Net change in contract owners' equity .......... 1,309 -- 8,394 32,656 -- -- 1,543,366 (7,529,792) Contract owners' equity beginning of period ................................... -- -- 46,040 14,268 -- -- 12,997,531 23,714,762 ------ --- ------ ------ ---- --- ---------- ---------- Contract owners' equity end of period .......... $1,309 -- 54,434 46,924 -- -- 14,540,897 16,184,970 ====== === ====== ====== ==== === ========== ========== CHANGES IN UNITS: Beginning units ............................. -- -- 2,497 636 -- -- 866,555 1,114,641 ------ --- ------ ------ ---- --- ---------- ---------- Units purchased ............................. 123 -- 309 1,764 4 -- 84,378 12,237 Units redeemed .............................. -- -- (60) (35) (4) -- (99,825) (185,096) ------ --- ------ ------ ---- --- ---------- ---------- Ending units ................................ 123 -- 2,746 2,365 -- -- 851,108 941,782 ====== === ====== ====== ==== === ========== ==========
(Continued) 35 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
NBAMTGuard NBAMTLMat ---------------------- ---------------------- 2003 2002 2003 2002 ---------- --------- ---------- --------- Investment activity: Net investment income (loss) ................ $ (5,675) 8,384 (25,850) 264,424 Realized gain (loss) on investments ......... (300,250) (84,123) 21,972 (11,686) Change in unrealized gain (loss) on investments ........................... 526,375 (216,009) 107,092 (159,987) Reinvested capital gains .................... -- -- -- -- ---------- --------- ---------- --------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 220,450 (291,748) 103,214 92,751 ---------- --------- ---------- --------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 83,006 169,055 215,039 193,222 Transfers between funds ..................... 129,122 (88,140) 376,043 1,485,359 Surrenders (note 6) ......................... (47,070) (28,778) (1,200,851) (295,292) Death benefits (note 4) ..................... -- -- (397) (23,504) Policy loans (net of repayments) (note 5) ... (7,424) (10,118) 640,512 55,146 Deductions for surrender charges (note 2d) .. (2,692) (1,764) (68,680) (18,104) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (49,802) (55,741) (165,902) (108,598) Asset charges (note 3): MSP contracts ............................ (526) (917) (3,557) (2,769) LSFP contracts ........................... (832) (974) (816) (602) ---------- --------- ---------- --------- Net equity transactions ............... 103,782 (17,377) (208,609) 1,284,858 ---------- --------- ---------- --------- Net change in contract owners' equity .......... 324,232 (309,125) (105,395) 1,377,609 Contract owners' equity beginning of period ................................... 1,605,837 2,584,522 6,741,521 4,952,976 ---------- --------- ---------- --------- Contract owners' equity end of period .......... $1,930,069 2,275,397 6,636,126 6,330,585 ========== ========= ========== ========= CHANGES IN UNITS: Beginning units ............................. 210,005 247,137 390,323 298,490 ---------- --------- ---------- --------- Units purchased ............................. 27,525 7,648 41,572 107,909 Units redeemed .............................. (15,389) (9,061) (54,995) (31,597) ---------- --------- ---------- --------- Ending units ................................ 222,141 245,724 376,900 374,802 ========== ========= ========== ========= NBAMTMCGr NBAMTPart -------------- ----------------------- 2003 2002 2003 2002 ------ ------ ---------- ---------- Investment activity: Net investment income (loss) ................ (1) -- (59,129) 28,973 Realized gain (loss) on investments ......... 3 -- (1,245,187) (541,550) Change in unrealized gain (loss) on investments ........................... 1,413 -- 4,149,848 (1,816,119) Reinvested capital gains .................... -- -- -- -- ------ ---- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 1,415 -- 2,845,532 (2,328,696) ------ ---- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 46 -- 1,015,885 1,302,590 Transfers between funds ..................... 26,485 -- (337,255) (904,618) Surrenders (note 6) ......................... -- -- (1,270,570) (492,999) Death benefits (note 4) ..................... -- -- (16,181) (46,288) Policy loans (net of repayments) (note 5) ... -- -- 625,546 (83,490) Deductions for surrender charges (note 2d) .. -- -- (72,668) (30,225) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (90) -- (598,356) (620,764) Asset charges (note 3): MSP contracts ............................ -- -- (4,998) (7,070) LSFP contracts ........................... (33) -- (6,742) (7,469) ------ ---- ---------- ---------- Net equity transactions ............... 26,408 -- (665,339) (890,333) ------ ---- ---------- ---------- Net change in contract owners' equity .......... 27,823 -- 2,180,193 (3,219,029) Contract owners' equity beginning of period ................................... -- -- 16,750,853 23,648,159 ------ ---- ---------- ---------- Contract owners' equity end of period .......... 27,823 -- 18,931,046 20,429,130 ====== ==== ========== ========== CHANGES IN UNITS: Beginning units ............................. -- -- 990,334 1,050,337 ------ ---- ---------- ---------- Units purchased ............................. 2,587 -- 69,423 59,963 Units redeemed .............................. (12) -- (102,078) (97,355) ------ ---- ---------- ---------- Ending units ................................ 2,575 -- 957,679 1,012,945 ====== ==== ========== ==========
36 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
NBAMTSocRe OppAggGro ------------- --------------------- 2003 2002 2003 2002 ------ ---- --------- --------- Investment activity: Net investment income (loss) ................ $ (4) -- (4,789) 3,705 Realized gain (loss) on investments ......... -- -- 128,810 (297,367) Change in unrealized gain (loss) on investments ........................... 33 -- 61,671 (20,997) Reinvested capital gains .................... -- -- -- -- ------ --- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 29 -- 185,692 (314,659) ------ --- --------- --------- Equity transactions: Purchase payments received from contract owners (note 6) ................. -- -- 137,859 148,956 Transfers between funds ..................... 5,727 -- (24,536) (149,005) Surrenders (note 6) ......................... -- -- (41,203) (95,373) Death benefits (note 4) ..................... -- -- -- (3,005) Policy loans (net of repayments) (note 5) ... -- -- 4,366 (16,747) Deductions for surrender charges (note 2d) .. -- -- (2,356) (5,847) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (17) -- (67,370) (57,689) Asset charges (note 3): MSP contracts ............................ -- -- (224) (469) LSFP contracts ........................... -- -- 1 (82) ------ --- --------- --------- Net equity transactions ............... 5,710 -- 6,537 (179,261) ------ --- --------- --------- Net change in contract owners' equity .......... 5,739 -- 192,229 (493,920) Contract owners' equity beginning of period ................................... -- -- 1,158,339 1,793,749 ------ --- --------- --------- Contract owners' equity end of period .......... $5,739 -- 1,350,568 1,299,829 ====== === ========= ========= CHANGES IN UNITS: Beginning units ............................. -- -- 304,625 337,769 ------ --- --------- --------- Units purchased ............................. 537 -- 45,655 34,526 Units redeemed .............................. (2) -- (36,674) (75,246) ------ --- --------- --------- Ending units ................................ 535 -- 313,606 297,049 ====== === ========= ========= OppBdFd OppCapAp ----------------------- ----------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- Investment activity: Net investment income (loss) ................ 728,195 933,747 3,745 31,746 Realized gain (loss) on investments ......... 63,191 (233,868) (1,949,676) (2,231,054) Change in unrealized gain (loss) on investments ........................... (121,165) (438,389) 3,276,197 (1,224,277) Reinvested capital gains -- -- -- -- ---------- ---------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 670,221 261,490 1,330,266 (3,423,585) ---------- ---------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 532,729 592,409 661,691 917,521 Transfers between funds ..................... (18,733) 336,367 382,482 308,728 Surrenders (note 6) ......................... (488,941) (285,698) (352,593) (389,865) Death benefits (note 4) ..................... (14,915) (51,845) (7,722) (3,010) Policy loans (net of repayments) (note 5) ... (32,348) (62,420) (71,771) (77,375) Deductions for surrender charges (note 2d) .. (27,964) (17,515) (20,166) (23,902) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (392,862) (299,771) (648,492) (422,643) Asset charges (note 3): MSP contracts ............................ (4,277) (5,110) (2,200) (3,721) LSFP contracts ........................... (3,060) (2,132) (2,369) (3,446) ---------- ---------- ---------- ---------- Net equity transactions ............... (450,371) 204,285 (61,140) 302,287 ---------- ---------- ---------- ---------- Net change in contract owners' equity .......... 219,850 465,775 1,269,126 (3,121,298) Contract owners' equity beginning of period ................................... 14,009,310 13,096,929 11,617,305 16,694,310 ---------- ---------- ---------- ---------- Contract owners' equity end of period .......... 14,229,160 13,562,704 12,886,431 13,573,012 ========== ========== ========== ========== CHANGES IN UNITS: Beginning units ............................. 685,876 691,900 1,030,433 1,073,994 ---------- ---------- ---------- ---------- Units purchased ............................. 49,567 51,013 96,554 96,121 Units redeemed .............................. (70,681) (39,276) (106,492) (84,916) ---------- ---------- ---------- ---------- Ending units ................................ 664,762 703,637 1,020,495 1,085,199 ========== ========== ========== ==========
(Continued) 37 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
OppGlSec OppHiIncInt OppMSGrInc OppMaStSmCpI ------------------------ -------------- ------------------- ------------- 2003 2002 2003 2002 2003 2002 2003 2002 ----------- ---------- ------ ----- --------- ------- ------ ---- Investment activity: Net investment income (loss) ................ $ 110,324 37,535 (8) -- 7,424 2,889 (11) -- Realized gain (loss) on investments ......... (2,538,760) 250,417 5 -- (59,247) (20,905) 3 -- Change in unrealized gain (loss) on investments ........................... 5,057,244 (2,701,365) 1,541 -- 161,722 (57,507) 310 -- Reinvested capital gains .................... -- -- -- -- -- -- -- -- ----------- ---------- ------ --- --------- ------- ------ --- Net increase (decrease) in contract owners' equity resulting from operations ............................ 2,628,808 (2,413,413) 1,538 -- 109,899 (75,523) 302 -- ----------- ---------- ------ --- --------- ------- ------ --- Equity transactions: Purchase payments received from contract owners (note 6) ................. 1,112,140 1,309,186 18 -- 51,310 43,098 18 -- Transfers between funds ..................... (205,600) (768,577) 73,888 -- 113,872 153,761 18,867 -- Surrenders (note 6) ......................... (790,373) (779,829) -- -- (43,267) (5,714) -- -- Death benefits (note 4) ..................... (37,079) (31,780) -- -- -- -- -- -- Policy loans (net of repayments) (note 5) ... 17,944 (97,581) -- -- 3,264 3,976 -- -- Deductions for surrender charges (note 2d) .. (45,204) (47,809) -- -- (2,475) (350) -- -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (777,243) (733,977) (137) -- (25,462) (18,635) (91) -- Asset charges (note 3): MSP contracts ............................ (4,359) (6,468) (46) -- (552) (360) -- -- LSFP contracts ........................... (3,199) (3,777) -- -- (349) (426) -- -- ----------- ---------- ------ --- --------- ------- ------ --- Net equity transactions ............... (732,973) (1,160,612) 73,723 -- 96,341 175,350 18,794 -- ----------- ---------- ------ --- --------- ------- ------ --- Net change in contract owners' equity .......... 1,895,835 (3,574,025) 75,261 -- 206,240 99,827 19,096 -- Contract owners' equity beginning of period ................................... 23,978,747 33,331,326 -- -- 1,000,092 855,113 -- -- ----------- ---------- ------ --- --------- ------- ------ --- Contract owners' equity end of period .......... $25,874,582 29,757,301 75,261 -- 1,206,332 954,940 19,096 -- =========== ========== ====== === ========= ======= ====== === CHANGES IN UNITS: Beginning units ............................. 1,190,779 1,278,705 -- -- 154,096 106,340 -- -- ----------- ---------- ------ --- --------- ------- ------ --- Units purchased ............................. 72,188 55,881 7,291 -- 31,197 25,438 1,722 -- Units redeemed .............................. (108,320) (99,124) (18) -- (16,183) (3,607) (8) -- ----------- ---------- ------ --- --------- ------- ------ --- Ending units ................................ 1,154,647 1,235,462 7,273 -- 169,110 128,171 1,714 -- =========== ========== ====== === ========= ======= ====== ===
38 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
OppMultStr PUTVTGrIncIB PUTVTIntlEqIB PUTVTVoyIB ------------------------ -------------- --------------- ------------- 2003 2002 2003 2002 2003 2002 2003 2002 ----------- ---------- ------ ------ ------ ------ ------ ----- Investment activity: Net investment income (loss) ................ $ 331,035 426,440 -- -- -- -- (1) -- Realized gain (loss) on investments ......... (118,817) (182,363) -- -- -- -- -- -- Change in unrealized gain (loss) on investments ........................... 1,113,465 (1,514,156) (24) -- (48) -- (39) -- Reinvested capital gains -- 200,398 -- -- -- -- -- -- ----------- ---------- ----- --- ----- --- ----- --- Net increase (decrease) in contract owners' equity resulting from operations ............................ 1,325,683 (1,069,681) (24) -- (48) -- (40) -- ----------- ---------- ----- --- ----- --- ----- --- Equity transactions: Purchase payments received from contract owners (note 6) ................. 565,555 666,244 -- -- -- -- -- -- Transfers between funds ..................... (10,897) 300,674 1,328 -- 1,393 -- 2,554 -- Surrenders (note 6) ......................... (289,509) (466,024) -- -- -- -- -- -- Death benefits (note 4) ..................... (8,892) (168,251) -- -- -- -- -- -- Policy loans (net of repayments) (note 5) ... (16,180) (76,779) -- -- -- -- -- -- Deductions for surrender charges (note 2d) .. (16,558) (28,571) -- -- -- -- -- -- Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (374,950) (343,803) (1) -- (5) -- (1) -- Asset charges (note 3): MSP contracts ............................ (3,894) (4,315) -- -- -- -- -- -- LSFP contracts ........................... (1,603) (1,559) -- -- -- -- -- -- ----------- ---------- ----- --- ----- --- ----- --- Net equity transactions ............... (156,928) (122,384) 1,327 -- 1,388 -- 2,553 -- ----------- ---------- ----- --- ----- --- ----- --- Net change in contract owners' equity .......... 1,168,755 (1,192,065) 1,303 -- 1,340 -- 2,513 -- Contract owners' equity beginning of period ................................... 12,259,254 14,587,018 -- -- -- -- -- -- ----------- ---------- ----- --- ----- --- ----- --- Contract owners' equity end of period .......... $13,428,009 13,394,953 1,303 -- 1,340 -- 2,513 -- =========== ========== ===== === ===== === ===== === CHANGES IN UNITS: Beginning units ............................. 543,407 574,816 -- -- -- -- -- -- ----------- ---------- ----- --- ----- --- ----- --- Units purchased ............................. 30,967 42,830 120 -- 127 -- 239 -- Units redeemed .............................. (38,276) (47,523) -- -- -- -- -- -- ----------- ---------- ----- --- ----- --- ----- --- Ending units ................................ 536,098 570,123 120 -- 127 -- 239 -- =========== ========== ===== === ===== === ===== ===
(Continued) 39 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
SGVITMdCpGr StOpp2 ---------------------- ----------------------- 2003 2002 2003 2002 ---------- --------- ---------- ---------- Investment activity: Net investment income (loss) ................ $ (6,671) (3,798) (112,289) (161,346) Realized gain (loss) on investments ......... 179,222 (164,971) (1,435,211) 7,623 Change in unrealized gain (loss) on investments ........................... 16,156 (130,691) 5,845,591 (6,356,406) Reinvested capital gains .................... -- -- -- -- ---------- --------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 188,707 (299,460) 4,298,091 (6,510,129) ---------- --------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 198,098 81,113 1,375,183 1,709,137 Transfers between funds ..................... 426,309 429,244 (819,703) (921,611) Surrenders (note 6) ......................... (95,887) (26,266) (1,128,122) (856,399) Death benefits (note 4) ..................... -- (3,297) (37,183) (52,056) Policy loans (net of repayments) (note 5) ... (263,712) (24,525) 118,503 (239,489) Deductions for surrender charges (note 2d) .. (5,484) (1,610) (64,521) (52,504) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ 676,969 (32,013) (851,760) (978,756) Asset charges (note 3): MSP contracts ............................ (185) -- (2,679) -- LSFP contracts ........................... (280) -- (2,826) -- ---------- --------- ---------- ---------- Net equity transactions ............... 935,828 422,646 (1,413,108) (1,391,678) ---------- --------- ---------- ---------- Net change in contract owners' equity .......... 1,124,535 123,186 2,884,983 (7,901,807) Contract owners' equity beginning of period ................................... 1,178,178 925,125 28,600,889 43,130,976 ---------- --------- ---------- ---------- Contract owners' equity end of period .......... $2,302,713 1,048,311 31,485,872 35,229,169 ========== ========= ========== ========== CHANGES IN UNITS: Beginning units ............................. 335,821 164,872 1,014,316 1,109,407 ---------- --------- ---------- ---------- Units purchased ............................. 343,440 98,503 61,676 28,221 Units redeemed .............................. (140,954) (17,466) (111,302) (62,905) ---------- --------- ---------- ---------- Ending units ................................ 538,307 245,909 964,690 1,074,723 ========== ========= ========== ========== StDisc2 StIntStk2 --------------------- ---------------------- 2003 2002 2003 2002 --------- --------- ---------- --------- Investment activity: Net investment income (loss) ................ (23,047) (27,740) 21,094 70,500 Realized gain (loss) on investments ......... (39,659) (43,174) (57,620) (311,189) Change in unrealized gain (loss) on investments ........................... 760,846 (277,306) (7,327) 94,523 Reinvested capital gains .................... -- -- -- -- --------- --------- ---------- --------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 698,140 (348,220) (43,853) (146,166) --------- --------- ---------- --------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 255,419 300,075 33,352 130,281 Transfers between funds ..................... (93,572) 81,040 (1,543,340) (14,902) Surrenders (note 6) ......................... (198,147) (242,166) (27,809) (97,505) Death benefits (note 4) ..................... (13,590) (10) (570) (3,476) Policy loans (net of repayments) (note 5) ... 8,726 77,784 450 13,659 Deductions for surrender charges (note 2d) .. (11,333) (14,847) (1,590) (5,978) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (166,731) (165,046) (16,562) (58,904) Asset charges (note 3): MSP contracts ............................ (735) -- (75) -- LSFP contracts ........................... (298) -- (295) -- --------- --------- ---------- --------- Net equity transactions ............... (220,261) 36,830 (1,556,439) (36,825) --------- --------- ---------- --------- Net change in contract owners' equity .......... 477,879 (311,390) (1,600,292) (182,991) Contract owners' equity beginning of period ................................... 5,757,577 6,864,441 1,600,292 2,291,785 --------- --------- ---------- --------- Contract owners' equity end of period .......... 6,235,456 6,553,051 -- 2,108,794 ========= ========= ========== ========= CHANGES IN UNITS: Beginning units ............................. 313,582 327,117 285,304 297,754 --------- --------- ---------- --------- Units purchased ............................. 22,712 19,724 102,663 18,834 Units redeemed .............................. (34,984) (19,428) (387,967) (24,289) --------- --------- ---------- --------- Ending units ................................ 301,310 327,413 -- 292,299 ========= ========= ========== =========
40 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
TurnGVITGro VEWrldBd ------------------- --------------------- 2003 2002 2003 2002 -------- -------- --------- --------- Investment activity: Net investment income (loss) ................ $ (1,389) (808) 65,652 (10,165) Realized gain (loss) on investments ......... (11,021) (91,891) 471,489 129,520 Change in unrealized gain (loss) on investments ........................... 85,920 (37,487) (57,872) 121,514 Reinvested capital gains .................... -- -- -- -- -------- -------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 73,510 (130,186) 479,269 240,869 -------- -------- --------- --------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 15,565 15,846 195,717 71,573 Transfers between funds ..................... 393,608 34,952 448,768 684,563 Surrenders (note 6) ......................... (13,655) (497) (221,067) (74,247) Death benefits (note 4) ..................... -- -- (8,086) (3,389) Policy loans (net of repayments) (note 5) ... 783 279 (12,040) 27,797 Deductions for surrender charges (note 2d) .. (781) (30) (12,643) (4,552) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (12,683) 18,096 (144,759) (49,861) Asset charges (note 3): MSP contracts ............................ (95) -- (1,187) -- LSFP contracts ........................... (185) -- (1,239) -- -------- -------- --------- --------- Net equity transactions ............... 382,557 68,646 243,464 651,884 -------- -------- --------- --------- Net change in contract owners' equity .......... 456,067 (61,540) 722,733 892,753 Contract owners' equity beginning of period ................................... 208,618 203,826 4,601,070 2,245,571 -------- -------- --------- --------- Contract owners' equity end of period .......... $664,685 142,286 5,323,803 3,138,324 ======== ======== ========= ========= CHANGES IN UNITS: Beginning units ............................. 96,110 53,240 291,343 170,193 -------- -------- --------- --------- Units purchased ............................. 166,489 6,388 41,206 54,617 Units redeemed .............................. (11,719) (2,106) (26,274) (8,184) -------- -------- --------- --------- Ending units ................................ 250,880 57,522 306,275 216,626 ======== ======== ========= ========= VEWrldEMkt VEWrldHAs --------------------- --------------------- 2003 2002 2003 2002 --------- --------- --------- --------- Investment activity: Net investment income (loss) ................ (7,303) (9,359) 5,835 10,707 Realized gain (loss) on investments ......... 333,053 555,030 277,811 384,355 Change in unrealized gain (loss) on investments ........................... 39,468 (429,627) (38,681) (120,504) Reinvested capital gains .................... -- -- -- -- --------- --------- --------- --------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 365,218 116,044 244,965 274,558 --------- --------- --------- --------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 402,009 201,467 174,983 143,087 Transfers between funds ..................... (336,763) 1,507,675 (819,533) 658,288 Surrenders (note 6) ......................... (293,052) (130,445) (117,729) (52,402) Death benefits (note 4) ..................... (7,825) (2,468) (904) (7,889) Policy loans (net of repayments) (note 5) ... 135,543 3,938 (42,269) (54,845) Deductions for surrender charges (note 2d) .. (16,760) (7,997) (6,733) (3,213) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (109,554) (113,229) (111,024) (102,991) Asset charges (note 3): MSP contracts ............................ (1,074) -- (1,129) -- LSFP contracts ........................... (1,590) -- (449) -- --------- --------- --------- --------- Net equity transactions ............... (229,066) 1,458,941 (924,787) 580,035 --------- --------- --------- --------- Net change in contract owners' equity .......... 136,152 1,574,985 (679,822) 854,593 Contract owners' equity beginning of period ................................... 3,809,216 3,614,378 4,465,156 3,298,337 --------- --------- --------- --------- Contract owners' equity end of period .......... 3,945,368 5,189,363 3,785,334 4,152,930 ========= ========= ========= ========= CHANGES IN UNITS: Beginning units ............................. 609,125 558,293 345,490 247,470 --------- --------- --------- --------- Units purchased ............................. 65,573 201,559 32,033 44,862 Units redeemed .............................. (101,511) (6,241) (93,209) (1,894) --------- --------- --------- --------- Ending units ................................ 573,187 753,611 284,314 290,438 ========= ========= ========= =========
(Continued) 41 NATIONWIDE VLI SEPARATE ACCOUNT-2 STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY, Continued Six Month Periods Ended June 30, 2003 and 2002 (UNAUDITED)
VKEmMkt VKUSRealEst ---------------------- ----------------------- 2003 2002 2003 2002 ---------- --------- ---------- ---------- Investment activity: Net investment income (loss) ................ $ (6,726) (5,023) (36,374) (37,573) Realized gain (loss) on investments ......... 221,755 19,465 (42,001) 116,274 Change in unrealized gain (loss) on investments ........................... 101,439 (17,695) 1,322,803 847,863 Reinvested capital gains .................... -- -- -- -- ---------- --------- ---------- ---------- Net increase (decrease) in contract owners' equity resulting from operations ............................ 316,468 (3,253) 1,244,428 926,564 ---------- --------- ---------- ---------- Equity transactions: Purchase payments received from contract owners (note 6) ................. 140,755 41,687 440,305 414,483 Transfers between funds ..................... 1,452,640 307,862 (409,370) 1,842,953 Surrenders (note 6) ......................... (41,899) (32,728) (327,592) (230,981) Death benefits (note 4) ..................... -- -- (13,234) (6,169) Policy loans (net of repayments) (note 5) ... (15,943) (44,902) 34,575 (89,337) Deductions for surrender charges (note 2d) .. (2,396) (2,006) (18,736) (14,161) Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c) ........................ (51,901) (30,107) (293,227) (255,651) Asset charges (note 3): MSP contracts ............................ (760) -- (2,273) -- LSFP contracts ........................... (1,428) -- (2,100) -- ---------- --------- ---------- ---------- Net equity transactions ............... 1,479,068 239,806 (591,652) 1,661,137 ---------- --------- ---------- ---------- Net change in contract owners' equity .......... 1,795,536 236,553 652,776 2,587,701 Contract owners' equity beginning of period ................................... 1,468,419 1,275,908 9,666,432 8,867,642 ---------- --------- ---------- ---------- Contract owners' equity end of period .......... $3,263,955 1,512,461 10,319,208 11,455,343 ========== ========= ========== ========== CHANGES IN UNITS: Beginning units ............................. 123,689 116,821 469,840 425,269 ---------- --------- ---------- ---------- Units purchased ............................. 120,101 29,996 33,993 99,945 Units redeemed .............................. (7,742) (7,573) (62,469) (25,614) ---------- --------- ---------- ---------- Ending units ................................ 236,048 139,244 441,364 499,600 ========== ========= ========== ==========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 42 -------------------------------------------------------------------------------- NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS June 30, 2003 and 2002 (UNAUDITED) (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: Funds of the AIM Variable Insurance Fund (AIMVIF); AIM VIF - AIM V.I. Capital Appreciation Fund - Series I (AIMCapAp) AIM VIF Basic Value Fund - Series I (AIMBVF) *AIM VIF Capital Development Fund - Series I (AIMCDF) Alliance Bernstein VPS Small Cap Value Portfolio - Class A (AllSmCpVal) Alliance VPS Growth & Income Portfolio - Class A (AllGroInc) 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 Inflation Protection Fund - Class II (ACVPInfPr) American Century VP International Fund - Class I (ACVPInt) American Century VP Ultra Fund - Class I (ACVPUltra) American Century VP Value Fund - Class I (ACVPVal) Comstock GVIT Value Fund - Class I (ComGVITVal) 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 International Value Fund - Class I (DryIntVal) 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 - Developing Leaders Portfolio - Initial Shares (DryDevLeadI) Dreyfus VIF - Growth and Income Portfolio - Initial Shares (DryVIFGrInc) Portfolios of Federated Insurance Series; Federated American Leaders Fund II - Primary Shares (FedAmLdII) Federated Capital Appreciation Fund II - Primary Shares (FedCpApII) Federated GVIT High Income Bond Fund - Class I (FGVITHiInc) Federated Quality Bond Fund II - Primary Shares (FedQualBd) (Continued) 43 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued 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 Portfolio: Initial Class (FidVIPAM) Fidelity(R) VIP II - Contrafund Portfolio: Initial Class (FidVIPCon) Fidelity(R) VIP II - Investment Grade Bond Portfolio: Service Class (FidVIPInvGrB) 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 - Mid Cap Portfolio: Service Class (FidVIPMCap) Fidelity(R) VIP III - Value Strategies Portfolio: Service Class (FidVIPValStS) Funds of the Franklin Templeton Variable Insurance Products (Franklin Templeton VIP); Franklin Templeton VIP - Franklin Rising Dividends Securities Fund - Class I (FTVIPFRDiv) Franklin Templeton VIP - Franklin Small Cap Value Securities Fund - Class I (FTVIPSmCpVal) Franklin Templeton VIPT - Templeton Foreign Securities Fund - Class I (FTVIPFS) 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) Janus AS - Risk-Managed Large Cap Core Portfolio - Service Shares (JanRsLgCpCr) MAS GVIT (formerly Nationwide(R) SAT) Multi Sector Bond Fund - Class I (MGVITMultiSec) MFS VIT - MFS Investors Growth Stock Series - Initial Class (MFSVITInvGrwI) Portfolios of the Neuberger Berman Advisers Management Trust (Neuberger Berman AMT); Neuberger Berman AMT - Balanced Portfolio (NBAMTBal) *Neuberger Berman AMT - Fasciano Portfolio (NBAMTFas) Neuberger Berman AMT - Growth Portfolio (NBAMTGro) Neuberger Berman AMT - Guardian Portfolio (NBAMTGuard) Neuberger Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat) Neuberger Berman AMT - Mid Cap Growth Portfolio - Class S (NBAMTMCGr) Neuberger Berman AMT - Partners Portfolio (NBAMTPart) Neuberger Berman AMT - Socially Responsive Portfolio (NBAMTSocRe) 44 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 High Income Fund/VA - Initial Class (OppHiIncInt) Oppenheimer Main Street(R) Growth & Income Fund/VA - Initial Class (OppMSGrInc) Oppenheimer Main Street(R) Small Cap Fund/VA - Initial Class (OppMaStSmCpI) Oppenheimer Multiple Strategies Fund/VA - Initial Class (OppMultStr) Funds of the Putnam Variable Trust (Putnam VT); Putnam VT Growth & Income Fund - IB Shares (PUTVTGrIncIB) Putnam VT International Equity Fund - IB Shares (PUTVTIntlEqIB) Putnam VT Voyager Fund - IB Shares (PUTVTVoyIB) 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) 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 June 30, 2003, 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 June 30, 2003. 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. (Continued) 45 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued (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. (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. 46 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. 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%. (Continued) 47 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued The following table provides mortality, expense and administration charges by contract type for the period ended June 30, 2003:
Total AIMCapAp AIMBVF AIMCDF AllSmCpVal ---------- -------- ------ ------ ---------- Single Premium contracts issued prior to April 16,1990 ......... $ 2,760 -- -- -- -- Single Premium contracts issued on or after April 16, 1990 ..... 445,913 -- -- -- -- Multiple Payment and Flexible Premium contracts .............. 2,308,827 21 4 10 1 ---------- --- --- --- --- Total ....................... $2,757,500 21 4 10 1 ========== === === === ===
AllGroInc ACVPBal ACVPCapAp ACVPIncGr ACVPInfPr --------- ------- --------- --------- --------- Single Premium contracts issued prior to April 16,1990 ......... $-- -- 156 -- -- Single Premium contracts issued on or after April 16, 1990 ..... -- 4,171 7,452 1,087 -- Multiple Payment and Flexible Premium contracts .............. 1 14,403 35,995 9,432 12 ---- ------ ------ ------ ---- Total ....................... $ 1 18,574 43,603 10,519 12 ==== ====== ====== ====== ====
ACVPInt ACVPUltra ACVPVal ComGVITVal CSGPVen ------- --------- ------- ---------- ------- Single Premium contracts issued prior to April 16,1990 ......... $ -- -- -- -- -- Single Premium contracts issued on or after April 16, 1990 ..... 4,429 56 9,625 -- 226 Multiple Payment and Flexible Premium contracts .............. 31,305 695 30,066 2 2,278 ------- ---- ------ ---- ----- Total ....................... $35,734 751 39,691 2 2,504 ======= ==== ====== ==== =====
CSIntEq CSSmCapGr DryIntVal DryMidCapIx DryEuroEq ------- --------- --------- ----------- --------- Single Premium contracts issued prior to April 16,1990 ......... $ -- -- -- -- -- Single Premium contracts issued on or after April 16, 1990 ..... 2,482 3,740 -- 2,908 -- Multiple Payment and Flexible Premium contracts .............. 14,937 35,066 18 11,989 -- -------- ------ --- ------ --- Total ....................... $17,419 38,806 18 14,897 -- ======== ====== === ====== ===
DrySmCapIxS DrySRGro DryStkIx DryVIFApp DryDevLeadI ----------- -------- -------- --------- ----------- Single Premium contracts issued prior to April 16,1990 ......... $ -- -- 57 -- -- Single Premium contracts issued on or after April 16, 1990 ..... 348 1,324 21,771 4,962 -- Multiple Payment and Flexible Premium contracts .............. 473 30,215 208,510 15,987 2 ---- ------ ------- ------ --- Total ....................... $821 31,539 230,338 20,949 2 ==== ====== ======= ====== ===
DryVIFGrInc FedAmLdII FedCpApII FGVITHiInc FedQualBd ----------- --------- --------- ---------- --------- Single Premium contracts issued prior to April 16,1990 ......... $ -- -- -- -- -- Single Premium contracts issued on or after April 16, 1990 ..... 793 -- -- -- 1,009 Multiple Payment and Flexible Premium contracts .............. 5,850 -- -- 26 6,142 ------ --- --- --- ----- Total ....................... $6,643 -- -- 26 7,151 ====== === === === =====
48
FidVIPEI FidVIPGr FidVIPHI FidVIPOv FidVIPAM -------- -------- -------- -------- -------- Single Premium contracts issued prior to April 16,1990 ......... $ 256 286 234 95 75 Single Premium contracts issued on or after April 16, 1990 ..... 44,546 41,384 20,623 9,458 26,930 Multiple Payment and Flexible Premium contracts .............. 183,335 255,154 64,392 37,935 68,398 -------- ------- ------ ------ ------ Total ....................... $228,137 296,824 85,249 47,488 95,403 ======== ======= ====== ====== ======
FidVIPCon FidVIPInvGrB FidVIPGrOp FidVIPValStS FidVIPMCap --------- ------------ ---------- ------------ ---------- Single Premium contracts issued prior to April 16,1990 ......... $ -- -- 23 -- -- Single Premium contracts issued on or after April 16, 1990 ..... 23,816 -- 684 177 -- Multiple Payment and Flexible Premium contracts .............. 141,644 5 10,521 749 15 -------- --- ------ --- --- Total ....................... $165,460 5 11,228 926 15 ======== === ====== === ===
FTVIPFRDiv FTVIPSmCpVal FTVIPFS GVITEmMrkts GVITGIFin ---------- ------------ ------- ----------- --------- Single Premium contracts issued prior to April 16,1990 ......... $-- -- -- -- -- Single Premium contracts issued on or after April 16, 1990 ..... -- -- -- 67 183 Multiple Payment and Flexible Premium contracts .............. 33 15 32 789 219 ---- --- --- --- --- Total ....................... $33 15 32 856 402 ==== === === === ===
GVITGIHlth GVITGITech GVITGlUtl GVITGvtBd GVITGrowth ---------- ---------- --------- --------- ---------- Single Premium contracts issued prior to April 16,1990 ......... $ -- -- -- 90 -- Single Premium contracts issued on or after April 16, 1990 ..... 1,427 93 115 31,916 2,286 Multiple Payment and Flexible Premium contracts .............. 576 1,039 108 57,253 48,581 ------ ----- --- ------ ------ Total ....................... $2,003 1,132 223 89,259 50,867 ====== ===== === ====== ======
GVITIDAgg GVITIDCon GVITIDMod GVITIDModAgg GVITIDModCon --------- --------- --------- ------------ ------------ Single Premium contracts issued prior to April 16,1990 ......... $ -- -- -- -- -- Single Premium contracts issued on or after April 16, 1990 ..... -- -- 9 -- 5 Multiple Payment and Flexible Premium contracts .............. 724 1,292 3,293 3,563 1,341 ---- ----- ----- ----- ----- Total ....................... $724 1,292 3,302 3,563 1,346 ==== ===== ===== ===== =====
GVITIntGro GVITMyMkt GVITLead GVITSmCapGr GVITSmCapVal ---------- --------- -------- ----------- ------------ Single Premium contracts issued prior to April 16,1990 ......... $ -- 334 -- -- 50 Single Premium contracts issued on or after April 16, 1990 ..... 95 56,506 2 314 6,833 Multiple Payment and Flexible Premium contracts .............. 114 112,058 281 3,544 25,317 ----- ------- ---- ------ ------- Total ....................... $209 168,898 283 3,858 32,200 ===== ======= ==== ====== =======
(Continued) 49 NATIONWIDE VLI SEPARATE ACCOUNT-2 NOTES TO FINANCIAL STATEMENTS, Continued
GVITSmComp GVITTotRt GVITUSGro JanCapAp JanGITech ---------- --------- --------- -------- --------- Single Premium contracts issued prior to April 16,1990 ......... $ 36 43 -- -- -- Single Premium contracts issued on or after April 16, 1990 ..... 4,564 11,842 160 384 498 Multiple Payment and Flexible Premium contracts .............. 67,549 217,438 714 7,581 2,961 ------- ------- --- ----- ----- Total ....................... $72,149 229,323 874 7,965 3,459 ======= ======= === ===== =====
JanIntGro JanRsLgCpCr MGVITMultiSec MFSVITInvGrwI NBAMTBal --------- ----------- ------------- ------------- -------- Single Premium contracts issued prior to April 16,1990 ......... $ -- -- -- -- -- Single Premium contracts issued on or after April 16, 1990 ..... 1,641 -- 976 -- -- Multiple Payment and Flexible Premium contracts .............. 3,859 -- 4,876 -- 189 ------ --- ----- --- --- Total ....................... $5,500 -- 5,852 -- 189 ====== === ===== === ===
NBAMTFas NBAMTGro NBAMTGuard NBAMTLMat NBAMTMCGr -------- -------- ---------- --------- --------- Single Premium contracts issued prior to April 16,1990 ......... $-- 143 -- 99 -- Single Premium contracts issued on or after April 16, 1990 ..... -- 7,169 377 9,423 -- Multiple Payment and Flexible Premium contracts .............. 13 44,889 5,298 16,328 1 --- ------ ----- ------ --- Total ....................... $13 52,201 5,675 25,850 1 === ====== ===== ====== ===
NBAMTPart NBAMTSocRe OppAggGro OppBdFd OppCapAp --------- ---------- --------- ------- -------- Single Premium contracts issued prior to April 16,1990 ......... $ -- -- -- -- 43 Single Premium contracts issued on or after April 16, 1990 ..... 4,899 -- 349 9,543 5,925 Multiple Payment and Flexible Premium contracts .............. 54,230 4 4,440 42,788 38,671 ------- --- ----- ------ ------ Total ....................... $59,129 4 4,789 52,331 44,639 ======= === ===== ====== ======
OppGlSec OppHiIncInt OppMSGrInc OppMaStSmCpI OppMultStr -------- ----------- ---------- ------------ ---------- Single Premium contracts issued prior to April 16,1990 ......... $ -- -- -- -- -- Single Premium contracts issued on or after April 16, 1990 ..... 9,114 -- 573 -- 9,238 Multiple Payment and Flexible Premium contracts .............. 80,427 8 3,051 11 38,661 ------- --- ----- --- ------ Total ....................... $89,541 8 3,624 11 47,899 ======= === ===== === ======
PUTVTGrIncIB PUTVTIntlEqIB PUTVTVoyIB SGVITMdCpGr StOpp2 ------------ ------------- ---------- ----------- ------- Single Premium contracts issued prior to April 16,1990 ......... $-- -- -- -- 34 Single Premium contracts issued on or after April 16, 1990 ..... -- -- -- 385 13,839 Multiple Payment and Flexible Premium contracts .............. -- -- 1 6,286 98,416 --- --- --- ----- ------- Total ....................... $-- -- 1 6,671 112,289 === === === ===== =======
50
StDisc2 StIntStk2 TurnGVITGro VEWrldBd VEWrldEMkt ------- --------- ----------- -------- ---------- Single Premium contracts issued prior to April 16,1990 ......... $ -- -- -- 382 127 Single Premium contracts issued on or after April 16, 1990 ..... 2,997 279 104 5,579 941 Multiple Payment and Flexible Premium contracts .............. 20,050 1,272 1,285 15,193 10,853 ------- ----- ----- ------ ------ Total ....................... $23,047 1,551 1,389 21,154 11,921 ======= ===== ===== ====== ======
VEWrldHAs VKEmMkt VKUSRealEst --------- ------- ----------- Single Premium contracts issued prior to April 16,1990 ......... $ 39 116 42 Single Premium contracts issued on or after April 16, 1990 ..... 3,422 1,568 6,272 Multiple Payment and Flexible Premium contracts .............. 10,622 5,042 30,060 ------- ----- ------ Total ....................... $14,083 6,726 36,374 ======= ===== ======
(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, shareholder communications, preparation, postage, fund transfer agency and various other record keeping and customer service functions. These fees are paid to an affiliate of the Company. 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 periods ended June 30, 2003 and 2002, total transfers to the Account from the fixed account were $14,820,462 and $8,868,560 respectively, and total transfers from the Account to the fixed account were $14,763,767 and $14,192,287, 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) 51 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 six-month period indicated, and the contract expense rate, investment income ratio and total return for each period in the five year period ended June 30, 2003.
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 2003 ............................... 0.00% 41,858 $15.028804 $ 629,076 2.66% 9.71% 2002 ............................... 0.00% 46,315 14.217236 658,471 2.59% -0.06% 2001 ............................... 0.00% 48,216 15.444900 744,691 2.76% -1.64% 2000 ............................... 0.00% 47,420 16.328246 774,285 2.40% 1.23% 1999 ............................... 0.00% 43,044 15.259861 656,845 1.85% 4.12% American Century VP Capital Appreciation Fund - Class I 2003 ............................... 0.00% 81,065 9.340849 757,216 0.00% 6.43% 2002 ............................... 0.00% 104,676 10.009120 1,047,715 0.00% -0.10% 2001 ............................... 0.00% 118,164 13.276196 1,568,768 0.00% -14.25% 2000 ............................... 0.00% 119,957 16.670308 1,999,720 0.00% 17.39% 1999 ............................... 0.00% 57,027 10.018665 571,334 0.00% 16.08% American Century VP Income & Growth Fund - Class I 2003 ............................... 0.00% 54,276 9.536995 517,630 1.39% 12.03% 2002 ............................... 0.00% 52,619 9.470053 498,305 1.01% -0.10% 2001 ............................... 0.00% 48,345 11.081323 535,727 0.84% -3.81% 2000 ............................... 0.00% 59,764 12.427941 742,743 0.56% -3.58% 1999 ............................... 0.00% 75,882 11.986560 909,564 0.02% 9.76% American Century VP Inflation Protection Fund - Class II 2003 ............................... 0.00% 503 10.253921 5,158 0.02% 2.54% 04/30/03 American Century VP International Fund - Class I 2003 ............................... 0.00% 98,262 12.258509 1,204,546 0.78% 4.95% 2002 ............................... 0.00% 103,301 14.011596 1,447,412 0.74% -0.04% 2001 ............................... 0.00% 126,254 16.537895 2,087,975 0.09% -20.15% 2000 ............................... 0.00% 149,003 23.402561 3,487,052 0.56% -6.01% 1999 ............................... 0.00% 102,991 16.294312 1,678,167 0.02% 7.35% American Century VP Ultra Fund - Class I 2003 ............................... 0.00% 9,055 8.968086 81,206 0.00% 11.56% American Century VP Value Fund - Class I 2003 ............................... 0.00% 99,509 16.941478 1,685,830 1.14% 9.42% 2002 ............................... 0.00% 109,514 17.025602 1,864,542 0.81% -0.04% 2001 ............................... 0.00% 75,899 16.837281 1,277,933 1.22% 7.21% 2000 ............................... 0.00% 50,041 12.761585 638,602 1.15% -4.00% 1999 ............................... 0.00% 45,649 15.169848 692,488 0.92% 13.15% Credit Suisse Trust - Global Post-Venture Capital Portfolio 2003 ............................... 0.00% 11,535 9.064192 104,555 0.00% 18.59% 2002 ............................... 0.00% 11,620 9.971802 115,872 0.00% -0.14% 2001 ............................... 0.00% 19,342 13.076798 252,931 0.00% -19.60% 2000 ............................... 0.00% 19,146 21.065694 403,324 0.00% 4.98% 1999 ............................... 0.00% 8,208 13.835438 113,561 0.00% 12.73%
52
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Credit Suisse Trust - International Focus Portfolio 2003 ............................... 0.00% 117,138 $ 7.880748 $ 923,135 0.00% 8.83% 2002 ............................... 0.00% 116,785 8.899722 1,039,354 0.00% -0.02% 2001 ............................... 0.00% 120,894 9.777766 1,182,073 0.00% -15.94% 2000 ............................... 0.00% 119,654 14.323822 1,713,903 0.00% -8.74% 1999 ............................... 0.00% 122,336 10.937511 1,338,051 0.00% 6.92% Credit Suisse Trust - Small Cap Growth Portfolio 2003 ............................... 0.00% 128,520 10.118181 1,300,389 0.00% 18.84% 2002 ............................... 0.00% 148,964 10.054023 1,497,687 0.00% -0.22% 2001 ............................... 0.00% 175,688 13.215947 2,321,883 0.00% -13.55% 2000 ............................... 0.00% 190,573 19.117425 3,643,265 0.00% 2.40% 1999 ............................... 0.00% 172,011 11.786201 2,027,356 0.00% 6.75% Dreyfus GVIT Mid Cap Index Fund - Class I 2003 ............................... 0.00% 67,784 9.842833 667,187 0.23% 11.96% 2002 ............................... 0.00% 57,282 9.995389 572,556 0.14% -0.04% 2001 ............................... 0.00% 27,429 10.586100 290,366 0.34% 0.66% 2000 ............................... 0.00% 795 9.878967 7,854 0.32% -1.21% 05/01/00 Dreyfus IP - European Equity Portfolio 2002 ............................... 0.00% 157 6.181671 971 0.00% -0.08% 2000 ............................... 0.00% 275 9.778327 2,689 0.00% -2.22% 05/01/00 Dreyfus IP - Small Cap Stock Index Portfolio - Service Class 2003 ............................... 0.00% 15,334 8.644856 132,560 0.00% 12.63% Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares 2003 ............................... 0.00% 54,380 13.043062 709,282 0.01% 10.27% 2002 ............................... 0.00% 68,412 13.794889 943,736 0.01% -0.17% 2001 ............................... 0.00% 78,212 18.464812 1,444,170 0.01% -14.12% 2000 ............................... 0.00% 84,024 24.782180 2,082,298 0.02% 2.55% 1999 ............................... 0.00% 69,241 20.950998 1,450,668 0.00% 12.77% Dreyfus Stock Index Fund 2003 ............................... 0.00% 600,646 16.268864 9,771,828 0.75% 11.64% 2002 ............................... 0.00% 593,396 16.269771 9,654,417 0.61% -0.13% 2001 ............................... 0.00% 609,261 19.912624 12,131,985 0.51% -6.83% 2000 ............................... 0.00% 586,479 23.430492 13,741,492 0.46% -0.55% 1999 ............................... 0.00% 582,226 21.906606 12,754,596 0.57% 12.14% Dreyfus VIF - Appreciation Portfolio - Initial Shares 2003 ............................... 0.00% 80,147 12.117460 971,178 0.02% 8.50% 2002 ............................... 0.00% 78,422 12.244454 960,235 0.01% -0.09% 2001 ............................... 0.00% 76,280 13.860162 1,057,253 0.01% -6.26% 2000 ............................... 0.00% 66,953 15.297533 1,024,216 0.00% 2.79% 1999 ............................... 0.00% 46,565 14.355616 668,469 0.01% 7.51% Dreyfus VIF - Growth and Income Portfolio - Initial Shares 2003 ............................... 0.00% 36,352 11.364775 413,132 0.41% 10.73% 2002 ............................... 0.00% 40,878 11.648154 476,153 0.25% -0.15% 2001 ............................... 0.00% 48,590 14.574708 708,185 0.22% -0.16% 2000 ............................... 0.00% 49,262 15.037439 740,774 0.28% -0.89% 1999 ............................... 0.00% 43,020 14.419552 620,329 0.45% 11.08% Federated GVIT High Income Bond Fund - Class I 2003 ............................... 0.00% 662 10.308656 6,824 5.57% 3.09% 05/01/03
(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*** -------- ------- ---------- -------------- ---------- --------- Federated Quality Bond Fund II - Primary Shares 2003 ............................... 0.00% 13,827 $11.302681 $ 156,282 3.67% 4.82% 2002 ............................... 0.00% 2,234 10.119701 22,607 0.00% 0.01% 05/01/02 Fidelity(R) VIP - Equity-Income Portfolio: Initial Class 2003 ............................... 0.00% 407,800 15.545035 6,339,265 1.92% 10.71% 2002 ............................... 0.00% 424,953 15.866389 6,742,470 1.60% -0.06% 2001 ............................... 0.00% 425,712 17.627522 7,504,248 1.66% -0.90% 2000 ............................... 0.00% 413,346 15.968906 6,600,683 1.72% -2.67% 1999 ............................... 0.00% 447,629 17.389656 7,784,114 1.41% 12.70% Fidelity(R) VIP - Growth Portfolio: Initial Class 2003 ............................... 0.00% 392,773 14.376191 5,646,580 0.29% 13.46% 2002 ............................... 0.00% 439,476 14.638347 6,433,202 0.23% -0.19% 2001 ............................... 0.00% 477,163 19.891877 9,491,668 0.08% -9.64% 2000 ............................... 0.00% 478,061 25.992229 12,425,871 0.11% 5.11% 1999 ............................... 0.00% 428,834 20.586833 8,828,334 0.16% 14.42% Fidelity(R) VIP - High Income Portfolio: Initial Class 2003 ............................... 0.00% 305,185 10.939264 3,338,499 6.15% 17.19% 2002 ............................... 0.00% 252,300 8.626036 2,176,349 10.31% -0.04% 2001 ............................... 0.00% 244,958 9.488213 2,324,214 12.28% -7.19% 2000 ............................... 0.00% 297,846 12.547483 3,737,218 6.88% -4.85% 1999 ............................... 0.00% 325,625 13.163135 4,286,246 8.97% 7.96% Fidelity(R) VIP - Overseas Portfolio: Initial Class 2003 ............................... 0.00% 94,127 10.736597 1,010,604 0.93% 10.35% 2002 ............................... 0.00% 100,251 11.900161 1,193,003 0.73% -0.02% 2001 ............................... 0.00% 108,663 13.707690 1,489,519 5.04% -11.45% 2000 ............................... 0.00% 118,731 18.168170 2,157,125 1.39% -5.07% 1999 ............................... 0.00% 116,931 14.506855 1,696,301 1.45% 8.11% Fidelity(R) VIP II - Asset Manager Portfolio: Initial Class 2003 ............................... 0.00% 78,508 15.744012 1,236,031 3.69% 10.14% 2002 ............................... 0.00% 98,018 14.350268 1,406,585 3.81% -0.08% 2001 ............................... 0.00% 97,486 15.747408 1,535,152 4.17% -3.56% 2000 ............................... 0.00% 96,392 16.879963 1,627,093 3.17% -0.69% 1999 ............................... 0.00% 95,742 16.104513 1,541,878 3.22% 5.26% Fidelity(R) VIP II - Contrafund Portfolio: Initial Class 2003 ............................... 0.00% 272,233 18.360032 4,998,207 0.50% 9.58% 2002 ............................... 0.00% 304,109 18.337852 5,576,706 0.79% -0.01% 2001 ............................... 0.00% 320,134 18.969439 6,072,762 0.80% -9.93% 2000 ............................... 0.00% 327,799 22.259280 7,296,570 0.34% -1.31% 1999 ............................... 0.00% 322,250 20.195445 6,507,982 0.46% 11.25% Fidelity(R) VIP III - Growth Opportunities Portfolio: Initial Class 2003 ............................... 0.00% 57,829 8.956654 517,954 0.82% 12.98% 2002 ............................... 0.00% 54,513 8.800905 479,764 0.99% -0.13% 2001 ............................... 0.00% 59,583 10.813727 644,314 0.37% -8.76% 2000 ............................... 0.00% 68,886 13.769984 948,559 1.18% -3.65% 1999 ............................... 0.00% 71,703 14.594106 1,046,441 0.91% 6.48% Fidelity(R) VIP III - Value Strategies Portfolio: Service Class 2003 ............................... 0.00% 25,652 9.125472 234,087 0.00% 21.52%
54
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Franklin Templeton VIPT - Templeton Foreign Securities Fund - Class I 2003 ............................... 0.00% 970 $10.780481 $ 10,457 6.29% 7.80% 05/01/03 Gartmore GVIT Emerging Markets Fund - Class I 2003 ............................... 0.00% 6,641 8.136486 54,034 0.31% 16.19% 2002 ............................... 0.00% 10,343 8.054883 83,312 0.02% -0.02% 2001 ............................... 0.00% 2,317 8.887131 20,591 0.62% 2.01% Gartmore GVIT Global Financial Services Fund - Class I 2003 ............................... 0.00% 430 9.843572 4,233 0.00% 13.62% Gartmore GVIT Global Health Sciences Fund - Class I 2003 ............................... 0.00% 4,094 10.539719 43,150 0.00% 26.37% Gartmore GVIT Global Technology and Communications Fund - Class I 2003 ............................... 0.00% 26,274 2.483881 65,261 0.00% 25.94% 2002 ............................... 0.00% 7,763 2.343594 18,193 0.61% -0.32% 2001 ............................... 0.00% 2,566 4.265563 10,945 0.00% -29.12% Gartmore GVIT Global Utilities Fund - Class I 2003 ............................... 0.00% 2,770 9.626639 26,666 0.13% 10.86% Gartmore GVIT Government Bond Fund - Class I 2003 ............................... 0.00% 170,960 17.207184 2,941,740 1.94% 3.13% 2002 ............................... 0.00% 198,842 15.662750 3,114,413 2.27% 0.04% 2001 ............................... 0.00% 155,160 14.357776 2,227,753 2.49% 2.43% 2000 ............................... 0.00% 119,026 12.957514 1,542,281 2.82% 4.03% 1999 ............................... 0.00% 137,934 12.477250 1,721,037 2.78% -2.18% Gartmore GVIT Growth Fund - Class I 2003 ............................... 0.00% 158,389 9.161234 1,451,039 0.00% 15.03% 2002 ............................... 0.00% 167,624 9.256234 1,551,567 0.00% -0.17% 2001 ............................... 0.00% 167,680 12.232208 2,051,097 0.00% -21.32% 2000 ............................... 0.00% 211,056 21.321758 4,500,085 0.16% 0.76% 1999 ............................... 0.00% 234,456 22.714734 5,325,606 0.28% 11.93% Gartmore GVIT ID Conservative Fund 2003 ............................... 0.00% 8,096 10.448478 84,591 1.26% 3.96% 2002 ............................... 0.00% 3,566 10.008384 35,690 0.59% 0.00% 01/25/02 Gartmore GVIT ID Moderate Fund 2003 ............................... 0.00% 16,210 9.860653 159,841 1.10% 7.88% Gartmore GVIT ID Moderately Aggressive Fund 2003 ............................... 0.00% 6,845 9.514882 65,129 0.75% 9.52% Gartmore GVIT ID Moderately Conservative Fund 2003 ............................... 0.00% 11,851 10.209725 120,995 1.23% 5.88% Gartmore GVIT International Growth Fund - Class I 2003 ............................... 0.00% 271 5.256150 1,424 0.00% 4.94% Gartmore GVIT Money Market Fund - Class I 2003 ............................... 0.00% 522,247 13.404162 7,000,283 0.37% 0.37% 2002 ............................... 0.00% 824,238 13.276178 10,942,730 0.62% 0.01% 2001 ............................... 0.00% 735,937 13.030757 9,589,816 2.26% 2.32% 2000 ............................... 0.00% 700,085 12.350501 8,646,400 2.80% 2.82% 1999 ............................... 0.00% 880,464 11.719723 10,318,794 2.26% 2.30% Gartmore GVIT Nationwide(R) Leaders Fund - Class I 2003 ............................... 0.00% 810 9.045593 7,327 0.21% 7.02% 2002 ............................... 0.00% 1,969 9.715302 19,129 0.00% -0.03% 05/01/02
(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 Growth Fund - Class I 2003 ............................... 0.00% 22,012 $ 5.594416 $ 123,144 0.00% 15.84% 2002 ............................... 0.00% 16,995 5.829385 99,070 0.00% -0.19% 2001 ............................... 0.00% 13,913 7.709185 107,258 0.00% -5.05% 2000 ............................... 0.00% 3,672 10.186918 37,406 0.00% 1.87% 05/01/00 Gartmore GVIT Small Cap Value Fund - Class I 2003 ............................... 0.00% 146,025 13.629546 1,990,254 0.00% 19.27% 2002 ............................... 0.00% 159,343 13.751897 2,191,269 0.00% -0.12% 2001 ............................... 0.00% 120,684 16.026367 1,934,126 0.00% 31.03% 2000 ............................... 0.00% 91,907 12.209617 1,122,149 0.00% 11.01% 1999 ............................... 0.00% 52,987 10.639972 563,780 0.00% 23.67% Gartmore GVIT Small Company Fund - Class I 2003 ............................... 0.00% 157,094 17.381922 2,730,596 0.00% 15.18% 2002 ............................... 0.00% 174,945 17.460266 3,054,586 0.00% -0.04% 2001 ............................... 0.00% 216,157 19.301282 4,172,107 0.10% -1.35% 2000 ............................... 0.00% 242,770 19.335974 4,694,194 0.03% 7.62% 1999 ............................... 0.00% 174,358 13.425636 2,340,867 0.00% 7.62% Gartmore GVIT Total Return Fund - Class I 2003 ............................... 0.00% 325,043 14.980767 4,869,393 0.38% 12.28% 2002 ............................... 0.00% 366,071 15.180371 5,557,094 0.31% -0.06% 2001 ............................... 0.00% 374,783 16.863350 6,320,097 0.37% -7.89% 2000 ............................... 0.00% 385,864 19.333470 7,460,090 0.26% 3.36% 1999 ............................... 0.00% 401,741 19.370171 7,781,792 0.39% 10.75% Gartmore GVIT U.S. Growth Leaders Fund - Class I 2003 ............................... 0.00% 1,623 10.457006 16,972 0.00% 27.12% Janus AS - Capital Appreciation Portfolio - Service Shares 2003 ............................... 0.00% 55,955 5.663510 316,902 0.16% 8.62% 2002 ............................... 0.00% 54,396 5.764512 313,566 0.19% -0.07% 2001 ............................... 0.00% 50,763 6.854604 347,960 0.66% -13.60% 2000 ............................... 0.00% 23,552 9.321768 219,546 0.12% -6.78% 05/01/00 Janus AS - Global Technology Portfolio - Service Shares 2003 ............................... 0.00% 69,946 2.968259 207,618 0.00% 18.26% 2002 ............................... 0.00% 57,324 2.989090 171,347 0.00% -0.30% 2001 ............................... 0.00% 52,094 5.020002 261,512 0.52% -25.95% 2000 ............................... 0.00% 21,370 10.102880 215,899 0.00% 1.03% 05/01/00 Janus AS - International Growth Portfolio - Service Shares 2003 ............................... 0.00% 44,061 4.806847 211,794 0.88% 6.34% 2002 ............................... 0.00% 42,357 5.348305 226,538 0.29% -0.12% 2001 ............................... 0.00% 29,028 6.716810 194,976 0.51% -15.53% 2000 ............................... 0.00% 13,731 9.744920 133,807 0.00% -2.55% 05/01/00 MAS GVIT (formerly Nationwide(R) SAT) Multi Sector Bond Fund - Class I 2003 ............................... 0.00% 19,227 12.623984 242,721 2.87% 7.71% 2002 ............................... 0.00% 10,998 11.157538 122,711 3.26% 0.02% 2001 ............................... 0.00% 8,373 10.572779 88,526 3.93% 0.76% 2000 ............................... 0.00% 7,461 10.178281 75,940 4.25% 1.78% 05/01/00
56
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Neuberger Berman AMT - Growth Portfolio 2003 ............................... 0.00% 99,474 $10.715891 $1,065,953 0.00% 14.38% 2002 ............................... 0.00% 144,864 10.928551 1,583,154 0.00% -0.20% 2001 ............................... 0.00% 190,439 15.878888 3,023,960 0.00% -18.75% 2000 ............................... 0.00% 172,782 25.276267 4,367,284 0.00% 14.26% 1999 ............................... 0.00% 205,077 15.153921 3,107,721 0.00% 3.02% Neuberger Berman AMT - Guardian Portfolio 2003 ............................... 0.00% 39,869 8.990099 358,426 0.00% 14.02% 2002 ............................... 0.00% 44,419 9.520671 422,899 0.68% -0.11% 2001 ............................... 0.00% 36,105 11.056776 399,205 0.42% 1.59% 2000 ............................... 0.00% 26,365 11.164108 294,342 0.55% 3.73% 1999 ............................... 0.00% 22,025 10.979618 241,826 0.32% 17.25% Neuberger Berman AMT - Limited Maturity Bond Portfolio 2003 ............................... 0.00% 72,879 14.775642 1,076,834 0.00% 1.93% 2002 ............................... 0.00% 64,149 14.045458 901,002 4.89% 0.02% 2001 ............................... 0.00% 54,873 13.240737 726,559 6.18% 4.66% 2000 ............................... 0.00% 58,782 12.075395 709,816 6.79% 1.93% 1999 ............................... 0.00% 66,075 11.712912 773,931 5.69% 0.33% Neuberger Berman AMT - Mid Cap Growth Portfolio - Class S 2003 ............................... 0.00% 2,312 10.806451 24,985 0.00% 8.06% 05/01/03 Neuberger Berman AMT - Partners Portfolio 2003 ............................... 0.00% 215,722 14.727194 3,176,980 0.00% 17.72% 2002 ............................... 0.00% 216,835 14.869856 3,224,305 0.48% -0.10% 2001 ............................... 0.00% 212,506 16.863278 3,583,548 0.37% -0.64% 2000 ............................... 0.00% 222,492 16.761738 3,729,353 0.76% -0.54% 1999 ............................... 0.00% 233,081 17.780231 4,144,234 1.17% 13.27% Oppenheimer Aggressive Growth Fund/VA - Initial Class 2003 ............................... 0.00% 11,638 4.416042 51,394 0.00% 13.72% 2002 ............................... 0.00% 13,342 4.450581 59,380 0.60% -0.17% 2001 ............................... 0.00% 37,932 5.711965 216,666 0.78% -27.00% 2000 ............................... 0.00% 14,777 10.684355 157,883 0.00% 6.84% 05/01/00 Oppenheimer Bond Fund/VA - Initial Class 2003 ............................... 0.00% 125,604 16.050294 2,015,981 5.49% 5.19% 2002 ............................... 0.00% 126,046 14.320237 1,805,009 7.33% 0.02% 2001 ............................... 0.00% 112,418 13.676394 1,537,473 7.21% 5.38% 2000 ............................... 0.00% 114,550 12.470236 1,428,466 7.84% 1.95% 1999 ............................... 0.00% 103,651 12.210918 1,265,674 4.64% -1.69% Oppenheimer Capital Appreciation Fund/VA - Initial Class 2003 ............................... 0.00% 101,517 13.211953 1,341,238 0.41% 12.38% 2002 ............................... 0.00% 96,612 12.989022 1,254,895 0.57% -0.19% 2001 ............................... 0.00% 121,307 17.488940 2,121,531 0.60% -4.88% 2000 ............................... 0.00% 104,751 20.164467 2,112,248 0.12% 9.42% 1999 ............................... 0.00% 57,756 15.067640 870,247 0.27% 15.82% Oppenheimer Global Securities Fund/VA - Initial Class 2003 ............................... 0.00% 105,893 19.285921 2,042,244 0.85% 11.71% 2002 ............................... 0.00% 113,124 20.580050 2,328,098 0.50% -0.07% 2001 ............................... 0.00% 113,027 23.093523 2,610,192 0.70% -8.38% 2000 ............................... 0.00% 115,342 26.551339 3,062,485 0.25% 10.70% 1999 ............................... 0.00% 90,112 17.222212 1,551,928 1.15% 13.80%
(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 High Income Fund/VA - Initial Class 2003 ............................... 0.00% 5,867 $10.350649 $ 60,727 0.00% 3.51% 05/01/03 Oppenheimer Main Street(R) Growth & Income Fund/VA - Initial Class 2003 ............................... 0.00% 32,688 7.289296 238,273 1.03% 10.35% 2002 ............................... 0.00% 23,831 7.562794 180,229 0.64% -0.07% 2001 ............................... 0.00% 24,522 8.515881 208,826 0.45% -5.95% 2000 ............................... 0.00% 6,639 9.944637 66,022 0.00% -0.55% 05/01/00 Oppenheimer Multiple Strategies Fund/VA - Initial Class 2003 ............................... 0.00% 80,799 16.598326 1,341,128 3.02% 11.38% 2002 ............................... 0.00% 85,766 15.468895 1,326,705 3.38% -0.07% 2001 ............................... 0.00% 81,606 17.140288 1,398,750 3.76% 5.34% 2000 ............................... 0.00% 81,287 16.311041 1,325,876 4.44% 6.69% 1999 ............................... 0.00% 53,059 14.832298 786,987 3.39% 8.47% Strong GVIT Mid Cap Growth Fund - Class I 2003 ............................... 0.00% 25,769 4.380581 112,883 0.00% 22.43% 2002 ............................... 0.00% 18,205 4.332856 78,880 0.00% -0.24% 2001 ............................... 0.00% 18,505 7.028654 130,065 0.00% -13.77% 2000 ............................... 0.00% 11,711 10.117813 118,490 0.00% 1.18% 05/01/00 Strong Opportunity Fund II, Inc. 2003 ............................... 0.00% 92,881 18.052697 1,676,753 0.00% 16.15% 2002 ............................... 0.00% 106,006 18.017088 1,909,919 0.00% -0.15% 2001 ............................... 0.00% 99,399 22.064106 2,193,150 0.22% 0.04% 2000 ............................... 0.00% 98,876 21.534013 2,129,197 0.00% 4.08% 1999 ............................... 0.00% 86,553 18.357658 1,588,910 0.00% 19.70% Strong VIF - Strong Discovery Fund II 2003 ............................... 0.00% 19,284 13.419800 258,787 0.00% 13.11% 2002 ............................... 0.00% 20,216 12.870986 260,200 0.00% -0.05% 2001 ............................... 0.00% 28,539 14.216886 405,736 0.68% 9.73% 2000 ............................... 0.00% 21,902 13.872055 303,826 0.00% 11.78% 1999 ............................... 0.00% 18,493 11.167443 206,520 0.00% -5.44% Strong VIF - Strong International Stock Fund II 2002 ............................... 0.00% 54,087 6.865525 371,336 3.62% -0.06% 2001 ............................... 0.00% 52,188 8.063633 420,825 0.00% -13.98% 2000 ............................... 0.00% 61,659 13.653266 841,847 0.00% -11.91% 1999 ............................... 0.00% 40,497 9.212641 373,084 0.39% 11.27% Turner GVIT Growth Focus Fund - Class I 2003 ............................... 0.00% 43,229 2.699253 116,686 0.00% 22.12% 2002 ............................... 0.00% 2,235 2.507967 5,605 0.00% -0.35% 2001 ............................... 0.00% 8,432 4.622739 38,979 0.00% -27.14% Van Eck WIT - Worldwide Bond Fund 2003 ............................... 0.00% 40,987 14.525018 595,337 1.62% 10.35% 2002 ............................... 0.00% 14,821 11.876210 176,017 0.00% 0.10% 2001 ............................... 0.00% 15,128 10.566846 159,855 4.49% -7.31% 2000 ............................... 0.00% 15,835 11.169513 176,869 4.81% -0.20% 1999 ............................... 0.00% 18,439 11.285697 208,097 4.14% -7.05%
58
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Van Eck WIT - Worldwide Emerging Markets Fund 2003 ............................... 0.00% 95,264 $ 7.193852 $ 685,315 0.13% 10.41% 2002 ............................... 0.00% 105,895 7.168258 759,083 0.15% 0.07% 2001 ............................... 0.00% 96,271 6.784682 653,168 0.00% -0.72% 2000 ............................... 0.00% 93,401 10.296557 961,709 0.00% -12.41% 1999 ............................... 0.00% 84,687 8.565350 725,374 0.00% 45.93% Van Eck WIT - Worldwide Hard Assets Fund 2003 ............................... 0.00% 49,294 8.537476 420,846 0.52% 6.64% 2002 ............................... 0.00% 43,441 9.008769 391,350 0.63% 0.09% 2001 ............................... 0.00% 34,310 8.887024 304,914 1.07% -3.41% 2000 ............................... 0.00% 35,691 8.583053 306,338 1.10% 3.92% 1999 ............................... 0.00% 26,833 8.070502 216,556 1.50% 18.24% Van Kampen UIF - Emerging Markets Debt Portfolio 2003 ............................... 0.00% 43,304 14.399383 623,551 0.00% 17.54% 2002 ............................... 0.00% 33,930 11.232525 381,120 0.00% 0.00% 2001 ............................... 0.00% 41,317 10.673931 441,015 0.00% 4.78% 2000 ............................... 0.00% 24,985 9.741623 243,394 0.00% 6.51% 1999 ............................... 0.00% 24,520 7.984920 195,790 0.00% 12.95% Van Kampen UIF - U.S. Real Estate Portfolio 2003 ............................... 0.00% 50,855 22.573299 1,147,965 0.00% 14.03% 2002 ............................... 0.00% 66,125 22.033448 1,456,962 0.00% 0.10% 2001 ............................... 0.00% 60,142 19.632270 1,180,724 0.00% 8.08% 2000 ............................... 0.00% 49,904 16.209760 808,932 4.52% 14.28% 1999 ............................... 0.00% 55,129 15.927748 878,081 6.49% 8.50% Single Premium contracts issued prior to April 16, 1990 (policy years 11 and thereafter) American Century VP Balanced Fund - Class I 2003 ............................... 0.50% 4,989 19.249601 96,036 2.66% 9.44% 2002 ............................... 0.50% 1,027 18.301887 18,796 2.59% -0.06% American Century VP Capital Appreciation Fund - Class I 2003 ............................... 0.50% 22,718 23.724153 538,965 0.00% 6.17% 2002 ............................... 0.50% 8,276 25.549711 211,449 0.00% -0.10% 2001 ............................... 0.50% 7,395 34.059179 251,868 0.00% -14.47% 2000 ............................... 0.50% 6,415 42.980416 275,719 0.00% 17.10% 1999 ............................... 0.50% 6,408 25.808976 165,384 0.00% 15.53% American Century VP Income & Growth Fund - Class I 2003 ............................... 0.50% 10,220 9.293802 94,983 1.39% 11.75% 2002 ............................... 0.50% 8,020 9.275118 74,386 1.01% -0.11% American Century VP International Fund - Class I 2003 ............................... 0.50% 22,213 12.979947 288,324 0.78% 4.69% 2002 ............................... 0.50% 3,864 14.911074 57,616 0.74% -0.05% 2000 ............................... 0.50% 4,913 25.154705 123,585 0.12% -6.25% 1999 ............................... 0.50% 2,471 17.499558 43,241 0.00% 6.85% American Century VP Ultra Fund - Class I 2003 ............................... 0.50% 950 8.915975 8,470 0.00% 11.29% American Century VP Value Fund - Class I 2003 ............................... 0.50% 14,744 16.308702 240,456 1.14% 9.15%
(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*** -------- ------- ---------- -------------- ---------- --------- Credit Suisse Trust - Global Post-Venture Capital Portfolio 2003 ............................... 0.50% 1,736 $ 8.725374 $ 15,147 0.00% 18.30% 2002 ............................... 0.50% 1,219 9.647487 11,760 0.00% -0.14% 2000 ............................... 0.50% 4,755 20.585314 97,883 0.00% 4.72% Credit Suisse Trust - International Focus Portfolio 2003 ............................... 0.50% 16,491 8.885803 146,536 0.00% 8.56% 1999 ............................... 0.50% 373 12.508445 4,666 0.00% 6.41% Credit Suisse Trust - Small Cap Growth Portfolio 2003 ............................... 0.50% 14,876 13.926520 207,171 0.00% 18.54% 2002 ............................... 0.50% 3,052 13.908030 42,447 0.00% -0.22% Dreyfus GVIT Mid Cap Index Fund - Class I 2003 ............................... 0.50% 11,871 9.688288 115,010 0.23% 11.68% 2002 ............................... 0.50% 4,940 9.888073 48,847 0.14% -0.04% Dreyfus IP - Small Cap Stock Index Portfolio - Service Class 2003 ............................... 0.50% 4,785 8.594614 41,125 0.00% 12.35% Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares 2003 ............................... 0.50% 3,997 19.360643 77,384 0.01% 10.00% 2000 ............................... 0.50% 1,694 37.342400 63,258 0.02% 2.30% 1999 ............................... 0.50% 1,707 31.543164 53,844 0.00% 12.24% Dreyfus Stock Index Fund 2003 ............................... 0.50% 35,270 22.777109 803,349 0.75% 11.36% 2002 ............................... 0.50% 1,451 22.893261 33,218 0.61% -0.14% 2001 ............................... 0.50% 1,124 28.159457 31,651 0.51% -7.07% 2000 ............................... 0.50% 6,380 33.299785 212,453 0.46% -0.80% 1999 ............................... 0.50% 16,400 31.108111 510,173 0.57% 11.61% Dreyfus VIF - Appreciation Portfolio - Initial Shares 2003 ............................... 0.50% 13,415 11.726680 157,313 0.02% 8.23% 2002 ............................... 0.50% 5,901 11.909342 70,277 0.01% -0.09% 1999 ............................... 0.50% 871 14.090891 12,273 0.01% 7.01% Dreyfus VIF - Growth and Income Portfolio - Initial Shares 2003 ............................... 0.50% 3,531 10.940217 38,630 0.41% 10.45% Fidelity(R) VIP - Equity-Income Portfolio: Initial Class 2003 ............................... 0.50% 44,524 41.412842 1,843,865 1.92% 10.43% 2002 ............................... 0.50% 4,187 42.482122 177,873 1.60% -0.06% 2001 ............................... 0.50% 3,210 47.433835 152,263 1.66% -1.15% 2000 ............................... 0.50% 5,011 43.184959 216,400 1.72% -2.91% 1999 ............................... 0.50% 5,292 46.987954 248,660 1.41% 12.17% Fidelity(R) VIP - Growth Portfolio: Initial Class 2003 ............................... 0.50% 58,389 45.554879 2,659,904 0.29% 13.18% 2002 ............................... 0.50% 6,779 46.619621 316,034 0.23% -0.19% 2001 ............................... 0.50% 3,378 63.668369 215,072 0.08% -9.86% 2000 ............................... 0.50% 4,311 83.609959 360,443 0.11% 4.85% 1999 ............................... 0.50% 3,186 66.167130 210,808 0.16% 13.88%
60
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Fidelity(R) VIP - High Income Portfolio: Initial Class 2003 ............................... 0.50% 18,741 $23.820063 $ 446,412 6.15% 16.90% 2002 ............................... 0.50% 2,111 18.877641 39,851 10.31% -0.05% 2001 ............................... 0.50% 1,791 20.868381 37,375 12.28% -7.42% 2000 ............................... 0.50% 1,958 27.734873 54,305 6.88% -5.08% 1999 ............................... 0.50% 2,147 29.071395 62,416 8.97% 7.46% Fidelity(R) VIP - Overseas Portfolio: Initial Class 2003 ............................... 0.50% 25,530 19.045013 486,219 0.93% 10.08% 2002 ............................... 0.50% 3,145 21.215531 66,723 0.73% -0.03% 2001 ............................... 0.50% 2,285 24.560357 56,120 5.04% -11.67% 2000 ............................... 0.50% 2,412 32.714959 78,908 1.39% -5.30% 1999 ............................... 0.50% 4,362 26.100226 113,849 1.45% 7.61% Fidelity(R) VIP II - Asset Manager Portfolio: Initial Class 2003 ............................... 0.50% 23,783 28.229717 671,387 3.69% 9.87% 2002 ............................... 0.50% 1,806 25.860364 46,704 3.81% -0.09% 2001 ............................... 0.50% 1,174 28.520109 33,483 4.17% -3.80% 2000 ............................... 0.50% 1,181 30.723922 36,285 3.17% -0.93% 1999 ............................... 0.50% 1,189 29.288050 34,823 3.22% 4.77% Fidelity(R) VIP II - Contrafund Portfolio: Initial Class 2003 ............................... 0.50% 20,202 20.940643 423,043 0.50% 9.31% 2002 ............................... 0.50% 311 21.020812 6,537 0.79% -0.01% 1999 ............................... 0.50% 680 23.362825 15,887 0.46% 10.73% Fidelity(R) VIP III - Growth Opportunities Portfolio: Initial Class 2003 ............................... 0.50% 13,333 8.667677 115,566 0.82% 12.70% 2002 ............................... 0.50% 2,644 8.559903 22,632 0.99% -0.13% 2001 ............................... 0.50% 1,213 10.570275 12,822 0.37% -8.99% 2000 ............................... 0.50% 1,352 13.527261 18,289 1.18% -3.89% 1999 ............................... 0.50% 1,480 14.324962 21,201 0.91% 5.98% Gartmore GVIT Global Financial Services Fund - Class I 2003 ............................... 0.50% 637 9.786402 6,234 0.00% 13.33% Gartmore GVIT Global Health Sciences Fund - Class I 2003 ............................... 0.50% 1,555 10.478483 16,294 0.00% 26.06% Gartmore GVIT Global Technology and Communications Fund - Class I 2003 ............................... 0.50% 3,610 2.449919 8,844 0.00% 25.63% Gartmore GVIT Government Bond Fund - Class I 2003 ............................... 0.50% 12,441 30.783735 382,980 1.94% 2.87% 2002 ............................... 0.50% 1,238 28.161889 34,864 2.27% 0.04% 2001 ............................... 0.50% 1,295 25.944499 33,598 2.49% 2.18% 2000 ............................... 0.50% 1,508 23.531059 35,485 2.82% 3.77% 1999 ............................... 0.50% 2,177 22.639946 49,287 2.78% -2.64% Gartmore GVIT Growth Fund - Class I 2003 ............................... 0.50% 6,943 13.890133 96,439 0.00% 14.75% 2000 ............................... 0.50% 56 32.817208 1,838 0.16% 0.51% 1999 ............................... 0.50% 3,526 34.932181 123,171 0.28% 11.40% Gartmore GVIT Money Market Fund - Class I 2003 ............................... 0.50% 56,083 18.569517 1,041,434 0.37% 0.12% 2002 ............................... 0.50% 7,097 18.485144 131,189 0.62% 0.00% 2001 ............................... 0.50% 10,640 18.234356 194,014 2.26% 2.06% 2000 ............................... 0.50% 14,924 17.368940 259,214 2.80% 2.56% 1999 ............................... 0.50% 13,690 16.464706 225,402 2.26% 1.81%
(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*** -------- ------- ---------- -------------- ---------- --------- Gartmore GVIT Small Cap Growth Fund - Class I 2003 ............................... 0.50% 2,943 $ 5.506478 $ 16,206 0.00% 15.55% Gartmore GVIT Small Cap Value Fund - Class I 2003 ............................... 0.50% 15,934 13.281917 211,634 0.00% 18.97% 2002 ............................... 0.50% 1,777 13.468753 23,934 0.00% -0.13% 2001 ............................... 0.50% 19,957 15.775047 314,823 0.00% 30.71% 2000 ............................... 0.50% 2,015 12.078102 24,337 0.00% 10.73% 1999 ............................... 0.50% 2,649 10.522940 27,875 0.00% 23.09% Gartmore GVIT Small Company Fund - Class I 2003 ............................... 0.50% 24,146 22.089319 533,369 0.00% 14.90% 2002 ............................... 0.50% 1,750 22.300778 39,026 0.00% -0.05% 2001 ............................... 0.50% 750 24.775621 18,582 0.10% -1.59% 2000 ............................... 0.50% 836 24.944101 20,853 0.03% 7.36% 1999 ............................... 0.50% 1,185 17.304978 20,506 0.00% 7.11% Gartmore GVIT Total Return Fund - Class I 2003 ............................... 0.50% 7,459 33.672722 251,165 0.38% 12.00% 2002 ............................... 0.50% 1,159 34.293466 39,746 0.31% -0.06% 2001 ............................... 0.50% 1,164 38.286155 44,565 0.37% -8.12% 2000 ............................... 0.50% 1,312 44.113476 57,877 0.26% 3.10% 1999 ............................... 0.50% 4,620 44.160435 204,021 0.39% 10.23% Janus AS - Capital Appreciation Portfolio - Service Shares 2003 ............................... 0.50% 15,480 5.574534 86,294 0.16% 8.36% Janus AS - Global Technology Portfolio - Service Shares 2003 ............................... 0.50% 7,370 2.921563 21,532 0.00% 17.96% Janus AS - International Growth Portfolio - Service Shares 2003 ............................... 0.50% 21,429 4.731322 101,387 0.88% 6.07% MAS GVIT (formerly Nationwide(R) SAT) Multi Sector Bond Fund - Class I 2003 ............................... 0.50% 2,379 12.425992 29,561 2.87% 7.44% 2000 ............................... 0.50% 352 10.169951 3,580 4.25% 1.70% 05/01/00 Neuberger Berman AMT - Growth Portfolio 2003 ............................... 0.50% 13,628 25.964665 353,846 0.00% 14.09% 2002 ............................... 0.50% 3,207 26.613541 85,350 0.00% -0.20% 2001 ............................... 0.50% 3,141 38.862698 122,068 0.00% -18.96% 2000 ............................... 0.50% 3,943 62.172211 245,145 0.00% 13.97% 1999 ............................... 0.50% 3,178 37.242929 118,358 0.00% 2.54% Neuberger Berman AMT - Guardian Portfolio 2003 ............................... 0.50% 10,485 8.760855 91,858 0.00% 13.74% 1999 ............................... 0.50% 430 10.858910 4,669 0.32% 16.70% Neuberger Berman AMT - Limited Maturity Bond Portfolio 2003 ............................... 0.50% 8,361 22.315058 186,576 0.00% 1.67% 2002 ............................... 0.50% 2,488 21.319161 53,042 4.89% 0.02% 2001 ............................... 0.50% 6,022 20.198124 121,633 6.18% 4.40% 2000 ............................... 0.50% 6,133 18.512380 113,536 6.79% 1.67% 1999 ............................... 0.50% 6,045 17.941662 108,457 5.69% -0.14% Neuberger Berman AMT - Partners Portfolio 2003 ............................... 0.50% 8,372 21.506858 180,055 0.00% 17.43%
62
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Oppenheimer Aggressive Growth Fund/VA - Initial Class 2003 ............................... 0.50% 4,539 $ 4.346636 $ 19,729 0.00% 13.44% Oppenheimer Bond Fund/VA - Initial Class 2003 ............................... 0.50% 7,374 24.688973 182,056 5.49% 4.93% 2002 ............................... 0.50% 209 22.138719 4,627 7.33% 0.02% 2001 ............................... 0.50% 47 21.249016 999 7.21% 5.12% Oppenheimer Capital Appreciation Fund/VA - Initial Class 2003 ............................... 0.50% 18,164 12.785669 232,239 0.41% 12.10% 2002 ............................... 0.50% 1,529 12.633325 19,316 0.57% -0.19% 2001 ............................... 0.50% 8,520 17.095272 145,652 0.60% -5.12% 2000 ............................... 0.50% 5,374 19.809088 106,454 0.12% 9.15% Oppenheimer Global Securities Fund/VA - Initial Class 2003 ............................... 0.50% 14,961 23.005849 344,191 0.85% 11.44% 2000 ............................... 0.50% 2,125 32.151658 68,322 0.25% 10.43% Oppenheimer Main Street(R) Growth & Income Fund/VA - Initial Class 2003 ............................... 0.50% 8,831 7.174840 63,361 1.03% 10.08% 2002 ............................... 0.50% 2,503 7.481589 18,726 0.64% -0.07% Oppenheimer Multiple Strategies Fund/VA - Initial Class 2003 ............................... 0.50% 11,466 27.854333 319,378 3.02% 11.10% Strong GVIT Mid Cap Growth Fund - Class I 2003 ............................... 0.50% 32,366 4.311709 139,553 0.00% 22.13% Strong Opportunity Fund II, Inc. 2003 ............................... 0.50% 20,648 34.590844 714,232 0.00% 15.86% 2002 ............................... 0.50% 1,462 34.696726 50,727 0.00% -0.15% 2001 ............................... 0.50% 3,843 42.703183 164,108 0.22% -0.21% 2000 ............................... 0.50% 449 41.885259 18,806 0.00% 3.82% 1999 ............................... 0.50% 451 35.677181 16,090 0.00% 19.14% Strong VIF - Strong Discovery Fund II 2003 ............................... 0.50% 9,363 21.438827 200,732 0.00% 12.83% Turner GVIT Growth Focus Fund - Class I 2003 ............................... 0.50% 18,106 2.662368 48,205 0.00% 21.81% Van Eck WIT - Worldwide Bond Fund 2003 ............................... 0.50% 10,142 19.525217 198,025 1.62% 10.08% 2002 ............................... 0.50% 1,069 16.044956 17,152 0.00% 0.10% 2001 ............................... 0.50% 1,088 14.347291 15,610 4.49% -7.54% 2000 ............................... 0.50% 1,213 15.241310 18,488 4.81% -0.44% 1999 ............................... 0.50% 1,327 15.386983 20,419 4.14% -7.48% Van Eck WIT - Worldwide Emerging Markets Fund 2003 ............................... 0.50% 15,793 6.924864 109,364 0.13% 10.13% 2002 ............................... 0.50% 23,305 6.935060 161,622 0.15% 0.07% 2000 ............................... 0.50% 6,248 10.061576 62,865 0.00% -12.63% 1999 ............................... 0.50% 465 8.362842 3,889 0.00% 45.24% Van Eck WIT - Worldwide Hard Assets Fund 2003 ............................... 0.50% 7,896 12.273309 96,910 0.52% 6.37% 2002 ............................... 0.50% 7,012 13.016136 91,269 0.63% 0.09% 2001 ............................... 0.50% 4 12.904508 52 1.07% -3.65% 2000 ............................... 0.50% 5 12.525276 63 1.10% 3.67% 1999 ............................... 0.50% 7 11.767408 82 1.50% 17.69%
(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*** -------- ------- ---------- -------------- ---------- --------- Van Kampen UIF - Emerging Markets Debt Portfolio 2003 ............................... 0.50% 12,685 $13.934870 $ 176,764 0.00% 17.25% 2002 ............................... 0.50% 1,225 10.924930 13,383 0.00% 0.00% 2001 ............................... 0.50% 1,247 10.433533 13,011 0.00% 4.51% 2000 ............................... 0.50% 1,389 9.569746 13,292 0.00% 6.25% 1999 ............................... 0.50% 1,520 7.837393 11,913 0.00% 12.42% Van Kampen UIF - U.S. Real Estate Portfolio 2003 ............................... 0.50% 9,878 23.860787 235,697 0.00% 13.75% 2002 ............................... 0.50% 3,911 23.407544 91,547 0.00% 0.10% 2001 ............................... 0.50% 3,060 20.960920 64,140 0.00% 7.81% Multiple Payment contracts and Flexible Premium contracts AIM VIF - AIM V.I. Capital Appreciation Fund - Series I 2003 ............................... 0.80% 2,881 10.644133 30,666 0.00% 6.44% 05/01/03 Aim VIF Basic Value Fund - Series I 2003 ............................... 0.80% 417 11.051655 4,609 0.00% 10.52% 05/01/03 Alliance Bernstein VPS Small Cap Value Portfolio - Class A 2003 ............................... 0.80% 248 10.861075 2,694 3.02% 8.61% 05/01/03 Alliance VPS Growth & Income Portfolio - Class A 2003 ............................... 0.80% 221 10.818107 2,391 1.46% 8.18% 05/01/03 American Century VP Balanced Fund - Class I 2003 ............................... 0.80% 201,016 19.112583 3,841,935 2.66% 9.28% 2002 ............................... 0.80% 200,648 18.226523 3,657,115 2.59% -0.07% 2001 ............................... 0.80% 199,859 19.959158 3,989,017 2.76% -2.03% 2000 ............................... 0.80% 207,595 21.269538 4,415,450 2.40% 0.83% 1999 ............................... 0.80% 222,079 20.037687 4,449,949 1.85% 3.71% American Century VP Capital Appreciation Fund - Class I 2003 ............................... 0.80% 599,345 14.905623 8,933,611 0.00% 6.01% 2002 ............................... 0.80% 677,262 16.101158 10,904,702 0.00% -0.10% 2001 ............................... 0.80% 786,433 21.528185 16,930,475 0.00% -14.60% 2000 ............................... 0.80% 783,810 27.248563 21,357,696 0.00% 16.93% 1999 ............................... 0.80% 640,120 16.507627 10,566,862 0.00% 15.62% American Century VP Income & Growth Fund - Class I 2003 ............................... 0.80% 264,249 9.150870 2,418,108 1.39% 11.58% 2002 ............................... 0.80% 285,356 9.160073 2,613,882 1.01% -0.11% 2001 ............................... 0.80% 308,475 10.804620 3,332,955 0.84% -4.20% 2000 ............................... 0.80% 255,946 12.214588 3,126,275 0.56% -3.96% 1999 ............................... 0.80% 612,387 17.628910 10,795,715 0.02% 6.92% 1999 ............................... 0.80% 206,901 11.875525 2,457,058 0.02% 9.32% American Century VP Inflation Protection Fund - Class II 2003 ............................... 0.80% 3,794 10.240166 38,851 0.02% 2.40% 04/30/03 American Century VP International Fund - Class I 2003 ............................... 0.80% 627,282 12.844593 8,057,182 0.78% 4.54% 2002 ............................... 0.80% 707,507 14.800223 10,471,261 0.74% -0.05% 2001 ............................... 0.80% 749,019 17.608849 13,189,362 0.09% -20.46% 2000 ............................... 0.80% 747,558 25.117659 18,776,907 0.12% -6.39% American Century VP Ultra Fund - Class I 2003 ............................... 0.80% 32,845 8.884853 291,823 0.00% 11.12%
64
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- American Century VP Value Fund - Class I 2003 ............................... 0.80% 480,378 $16.080795 $ 7,724,860 1.14% 8.99% 2002 ............................... 0.80% 574,223 16.291245 9,354,808 0.81% -0.04% 2001 ............................... 0.80% 377,207 16.240238 6,125,931 1.22% 6.78% 2000 ............................... 0.80% 152,146 12.407385 1,887,734 1.15% -4.38% 1999 ............................... 0.80% 144,236 14.867552 2,144,436 0.92% 12.70% Comstock GVIT Value Fund - Class I 2003 ............................... 0.80% 309 10.904290 3,369 1.44% 9.04% 05/01/03 Credit Suisse Trust - Global Post-Venture Capital Portfolio 2003 ............................... 0.80% 60,246 8.603345 518,317 0.00% 18.12% 2002 ............................... 0.80% 87,826 9.541324 837,976 0.00% -0.14% 2001 ............................... 0.80% 136,614 12.612769 1,723,081 0.00% -19.92% 2000 ............................... 0.80% 118,658 20.481233 2,430,262 0.00% 4.57% 1999 ............................... 0.80% 56,513 13.559677 766,298 0.00% 12.29% Credit Suisse Trust - International Focus Portfolio 2003 ............................... 0.80% 450,240 8.780987 3,953,552 0.00% 8.40% 2002 ............................... 0.80% 493,976 9.996529 4,938,045 0.00% -0.02% 2001 ............................... 0.80% 559,443 11.070894 6,193,534 0.00% -16.27% 2000 ............................... 0.80% 526,717 16.348137 8,610,842 0.00% -9.11% 1999 ............................... 0.80% 571,690 12.583549 7,193,889 0.00% 6.49% Credit Suisse Trust - Small Cap Growth Portfolio 2003 ............................... 0.80% 709,581 13.762087 9,765,315 0.00% 18.37% 2002 ............................... 0.80% 757,344 13.785369 10,440,266 0.00% -0.22% 2001 ............................... 0.80% 919,136 18.266351 16,789,261 0.00% -13.89% 2000 ............................... 0.80% 871,755 26.635120 23,219,299 0.00% 2.00% 1999 ............................... 0.80% 714,703 16.552974 11,830,460 0.00% 6.32% Dreyfus GVIT International Value Fund - Class I 2003 ............................... 0.80% 2,245 10.890009 24,448 0.00% 8.90% 05/01/03 Dreyfus GVIT Mid Cap Index Fund - Class I 2003 ............................... 0.80% 337,394 9.596744 3,237,884 0.23% 11.52% 2002 ............................... 0.80% 342,673 9.824246 3,366,504 0.14% -0.04% 2001 ............................... 0.80% 183,997 10.488313 1,929,818 0.34% 0.26% 2000 ............................... 0.80% 13,930 9.866027 137,434 0.32% -1.34% 05/01/00 Dreyfus IP - European Equity Portfolio 2002 ............................... 0.80% 7,557 6.075769 45,915 0.00% -0.08% 2001 ............................... 0.80% 8,203 7.376033 60,506 0.12% -20.72% 2000 ............................... 0.80% 2,248 9.765505 21,953 0.00% -2.34% 05/01/00 Dreyfus IP - Small Cap Stock Index Portfolio - Service Class 2003 ............................... 0.80% 17,424 8.564616 149,230 0.00% 12.19% 2002 ............................... 0.80% 5 9.068428 45 0.00% -0.09% 05/01/02 Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares 2003 ............................... 0.80% 418,430 19.182147 8,026,386 0.01% 9.84% 2002 ............................... 0.80% 448,808 20.451852 9,178,955 0.01% -0.17% 2001 ............................... 0.80% 495,429 27.595119 13,671,422 0.01% -14.46% 2000 ............................... 0.80% 499,932 37.333022 18,663,972 0.02% 2.14% 1999 ............................... 0.80% 416,431 31.815264 13,248,862 0.00% 12.33%
(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*** -------- --------- ---------- -------------- ---------- --------- Dreyfus Stock Index Fund 2003 ............................. 0.80% 2,485,115 $22.567635 $56,083,168 0.75% 11.20% 2002 ............................. 0.80% 2,661,145 22.751285 60,544,468 0.61% -0.14% 2001 ............................. 0.80% 2,637,014 28.068843 74,017,932 0.51% -7.21% 2000 ............................. 0.80% 2,632,727 33.292046 87,648,868 0.46% -0.94% 1999 ............................. 0.80% 2,452,036 31.377050 76,937,656 0.57% 11.70% Dreyfus VIF - Appreciation Portfolio - Initial Shares 2003 ............................. 0.80% 350,757 11.553166 4,052,354 0.02% 8.07% 2002 ............................. 0.80% 380,519 11.768590 4,478,172 0.01% -0.09% 2001 ............................. 0.80% 355,687 13.428340 4,776,286 0.01% -6.63% 2000 ............................. 0.80% 389,447 14.939512 5,818,148 0.00% 2.38% 1999 ............................. 0.80% 410,137 14.132362 5,796,205 0.01% 7.09% Dreyfus VIF - Developing Leaders Portfolio - Initial Shares 2003 ............................. 0.80% 393 10.868782 4,271 0.00% 8.69% 05/01/03 Dreyfus VIF - Growth and Income Portfolio - Initial Shares 2003 ............................. 0.80% 142,379 10.787308 1,535,886 0.41% 10.29% 2002 ............................. 0.80% 161,431 11.145653 1,799,254 0.25% -0.16% 2001 ............................. 0.80% 169,392 14.057896 2,381,295 0.22% -0.56% 2000 ............................. 0.80% 151,182 14.620238 2,210,317 0.28% -1.28% 1999 ............................. 0.80% 133,383 14.132230 1,884,999 0.45% 10.65% Federated American Leaders Fund II - Primary Shares 2003 ............................. 0.80% 122 10.876214 1,327 0.00% 8.76% 05/01/03 Federated Capital Appreciation Fund II - Primary Shares 2003 ............................. 0.80% 125 10.626215 1,328 0.00% 6.26% 05/01/03 Federated GVIT High Income Bond Fund - Class I 2003 ............................. 0.80% 6,493 10.295120 66,846 5.57% 2.95% 05/01/03 Federated Quality Bond Fund II - Primary Shares 2003 ............................. 0.80% 133,738 11.197939 1,497,590 3.67% 4.41% 2002 ............................. 0.80% 54,467 10.106848 550,490 0.00% 0.01% 05/01/02 Fidelity(R) VIP - Equity-Income Portfolio: Initial Class 2003 ............................. 0.80% 1,419,111 34.446806 48,883,841 1.92% 10.27% 2002 ............................. 0.80% 1,548,774 35.443061 54,893,291 1.60% -0.07% 2001 ............................. 0.80% 1,574,413 39.693047 62,493,249 1.66% -1.30% 2000 ............................. 0.80% 1,599,715 36.245575 57,982,590 1.72% -3.06% 1999 ............................. 0.80% 1,769,777 39.787906 70,415,721 1.41% 12.25% Fidelity(R) VIP - Growth Portfolio: Initial Class 2003 ............................. 0.80% 2,143,626 31.599913 67,738,395 0.29% 13.01% 2002 ............................. 0.80% 2,388,682 32.436262 77,479,915 0.23% -0.20% 2001 ............................. 0.80% 2,555,355 44.431230 113,537,566 0.08% -10.00% 2000 ............................. 0.80% 2,673,456 58.522458 156,457,216 0.11% 4.69% 1999 ............................. 0.80% 2,565,538 46.724607 119,873,755 0.16% 13.97% Fidelity(R) VIP - High Income Portfolio: Initial Class 2003 ............................. 0.80% 788,928 22.619093 17,844,836 6.15% 16.73% 2002 ............................. 0.80% 632,119 17.979964 11,365,477 10.31% -0.05% 2001 ............................. 0.80% 671,286 19.935654 13,382,525 12.28% -7.56% 2000 ............................. 0.80% 640,788 26.574602 17,028,686 6.88% -5.22% 1999 ............................. 0.80% 678,337 28.102779 19,063,155 8.97% 7.54%
66
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- --------- ---------- -------------- ---------- --------- Fidelity(R) VIP - Overseas Portfolio: Initial Class 2003 ............................. 0.80% 695,244 $14.641844 $10,179,654 0.93% 9.92% 2002 ............................. 0.80% 820,407 16.359879 13,421,759 0.73% -0.03% 2001 ............................. 0.80% 842,797 18.996016 16,009,785 5.04% -11.81% 2000 ............................. 0.80% 882,638 25.378931 22,400,409 1.39% -5.44% 1999 ............................. 0.80% 874,384 20.427325 17,861,326 1.45% 7.69% Fidelity(R) VIP II - Asset Manager Portfolio: Initial Class 2003 ............................. 0.80% 715,658 24.639881 17,633,728 3.69% 9.71% 2002 ............................. 0.80% 795,307 22.640014 18,005,762 3.81% -0.09% 2001 ............................. 0.80% 834,426 25.043415 20,896,877 4.17% -3.95% 2000 ............................. 0.80% 888,836 27.059327 24,051,304 3.17% -1.08% 1999 ............................. 0.80% 963,059 26.023875 25,062,527 3.22% 4.84% Fidelity(R) VIP II - Contrafund Portfolio: Initial Class 2003 ............................. 0.80% 1,831,877 20.693731 37,908,370 0.50% 9.15% 2002 ............................. 0.80% 1,931,817 20.835755 40,250,866 0.79% -0.01% 2001 ............................. 0.80% 2,025,215 21.726199 44,000,224 0.80% -10.29% 2000 ............................. 0.80% 2,148,148 25.698199 55,203,535 0.34% -1.70% 1999 ............................. 0.80% 2,079,761 23.503049 48,880,725 0.46% 10.81% Fidelity(R) VIP II - Investment Grade Bond Portfolio: Service Class 2003 ............................. 0.80% 617 10.151814 6,264 0.00% 1.52% 05/01/03 Fidelity(R) VIP III - Growth Opportunities Portfolio: Initial Class 2003 ............................. 0.80% 331,890 8.539361 2,834,129 0.82% 12.53% 2002 ............................. 0.80% 336,807 8.458687 2,848,945 0.99% -0.14% 2001 ............................. 0.80% 346,993 10.476643 3,635,322 0.37% -9.13% 2000 ............................. 0.80% 429,757 13.447601 5,779,201 1.18% -4.03% 1999 ............................. 0.80% 367,838 14.367127 5,284,775 0.91% 6.06% Fidelity(R) VIP III - Mid Cap Portfolio: Service Class 2003 ............................. 0.80% 2,033 11.055036 22,475 0.00% 10.55% 05/01/03 Fidelity(R) VIP III - Value Strategies Portfolio: Service Class 2003 ............................. 0.80% 67,428 9.040791 609,602 0.00% 21.04% Franklin Templeton VIP - Franklin Rising Dividends Securities Fund - Class I 2003 ............................. 0.80% 3,544 10.531356 37,323 5.21% 5.31% 05/01/03 Franklin Templeton VIP - Franklin Small Cap Value Securities Fund - Class I 2003 ............................. 0.80% 1,778 11.038390 19,626 1.54% 10.38% 05/01/03 Franklin Templeton VIPT - Templeton Foreign Securities Fund - Class I 2003 ............................. 0.80% 3,664 10.766336 39,448 6.29% 7.66% 05/01/03 Gartmore GVIT Emerging Markets Fund - Class I 2003 ............................. 0.80% 34,247 7.959663 272,595 0.31% 15.73% 2002 ............................. 0.80% 115,622 7.943512 918,445 0.02% -0.03% 2001 ............................. 0.80% 19,740 8.834628 174,396 0.62% 1.60% Gartmore GVIT Global Financial Services Fund - Class I 2003 ............................. 0.80% 5,661 9.752246 55,207 0.00% 13.17% 2002 ............................. 0.80% 18 9.534187 172 0.00% -0.05% 05/01/02 Gartmore GVIT Global Health Sciences Fund - Class I 2003 ............................. 0.80% 23,875 10.441927 249,301 0.00% 25.87% 2002 ............................. 0.80% 450 8.878693 3,995 0.00% -0.11% 05/01/02
(Continued) 67 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 Global Technology and Communications Fund - Class I 2003 ............................. 0.80% 208,770 $ 2.429787 $ 507,267 0.00% 25.44% 2002 ............................. 0.80% 91,658 2.311084 211,829 0.61% -0.32% 2001 ............................. 0.80% 76,277 4.240225 323,432 0.00% -29.40% Gartmore GVIT Global Utilities Fund - Class I 2003 ............................. 0.80% 3,505 9.537327 33,428 0.13% 10.42% 2002 ............................. 0.80% 127 9.314008 1,183 0.05% -0.07% 05/01/02 Gartmore GVIT Government Bond Fund - Class I 2003 ............................. 0.80% 579,204 23.531886 13,629,762 1.94% 2.72% 2002 ............................. 0.80% 483,307 21.592689 10,435,898 2.27% 0.04% 2001 ............................. 0.80% 401,161 19.952103 8,004,006 2.49% 2.02% 2000 ............................. 0.80% 325,686 18.150229 5,911,275 2.82% 3.62% 1999 ............................. 0.80% 424,621 17.618074 7,481,004 2.78% -2.56% Gartmore GVIT Growth Fund - Class I 2003 ............................. 0.80% 961,600 13.790896 13,261,326 0.00% 14.58% 2002 ............................. 0.80% 964,532 14.046556 13,548,353 0.00% -0.17% 2001 ............................. 0.80% 950,361 18.711696 17,782,866 0.00% -21.64% 2000 ............................. 0.80% 975,154 32.877948 32,061,063 0.16% 0.36% 1999 ............................. 0.80% 1,098,675 35.307745 38,791,737 0.28% 11.49% Gartmore GVIT ID Aggressive Fund 2003 ............................. 0.80% 26,534 9.133032 242,336 0.67% 10.44% 2002 ............................. 0.80% 12,148 9.464596 114,976 0.65% -0.05% 01/25/02 Gartmore GVIT ID Conservative Fund 2003 ............................. 0.80% 35,782 10.329848 369,623 1.26% 3.55% 2002 ............................. 0.80% 8,964 9.974658 89,413 0.59% 0.00% 01/25/02 Gartmore GVIT ID Moderate Fund 2003 ............................. 0.80% 122,651 9.748649 1,195,682 1.10% 7.45% 2002 ............................. 0.80% 10,891 9.661735 105,226 1.09% -0.03% 01/25/02 Gartmore GVIT ID Moderately Aggressive Fund 2003 ............................. 0.80% 109,820 9.406780 1,033,053 0.75% 9.09% 2002 ............................. 0.80% 46,570 9.563890 445,390 0.85% -0.04% 01/25/02 Gartmore GVIT ID Moderately Conservative Fund 2003 ............................. 0.80% 50,954 10.093792 514,319 1.23% 5.46% 2002 ............................. 0.80% 2,032 9.829082 19,973 1.32% -0.02% 01/25/02 Gartmore GVIT International Growth Fund - Class I 2003 ............................. 0.80% 6,045 5.141908 31,083 0.00% 4.52% 2002 ............................. 0.80% 3,430 6.020906 20,652 0.00% -0.08% 2001 ............................. 0.80% 1,328 7.394189 9,819 0.18% -19.91% Gartmore GVIT Money Market Fund - Class I 2003 ............................. 0.80% 1,776,625 15.030909 26,704,289 0.37% -0.03% 2002 ............................. 0.80% 1,972,798 15.008113 29,607,975 0.62% 0.00% 2001 ............................. 0.80% 1,868,735 14.849147 27,749,121 2.26% 1.91% 2000 ............................. 0.80% 2,105,080 14.186996 29,864,762 2.80% 2.41% 1999 ............................. 0.80% 2,224,003 13.571142 30,182,261 2.26% 1.89% Gartmore GVIT Nationwide(R) Leaders Fund - Class I 2003 ............................. 0.80% 7,996 8.961648 71,657 0.21% 6.59% 2002 ............................. 0.80% 4,013 9.702946 38,938 0.00% -0.03% 05/01/02
68
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- --------- ---------- -------------- ---------- --------- Gartmore GVIT Small Cap Growth Fund - Class I 2003 ............................. 0.80% 173,083 $ 5.454384 $ 944,061 0.00% 15.38% 2002 ............................. 0.80% 177,905 5.729418 1,019,292 0.00% -0.20% 2001 ............................. 0.80% 186,975 7.637837 1,428,085 0.00% -5.43% 2000 ............................. 0.80% 13,584 10.173586 138,198 0.00% 1.74% 05/01/00 Gartmore GVIT Small Cap Value Fund - Class I 2003 ............................. 0.80% 543,690 13.077651 7,110,188 0.00% 18.80% 2002 ............................. 0.80% 721,785 13.301699 9,600,967 0.00% -0.13% 2001 ............................. 0.80% 494,959 15.626161 7,734,309 0.00% 30.51% 2000 ............................. 0.80% 228,209 11.999870 2,738,478 0.00% 10.57% 1999 ............................. 0.80% 85,419 10.541317 900,429 0.00% 23.18% Gartmore GVIT Small Company Fund - Class I 2003 ............................. 0.80% 845,497 21.818723 18,447,665 0.00% 14.73% 2002 ............................. 0.80% 919,483 22.094179 20,315,222 0.00% -0.05% 2001 ............................. 0.80% 977,323 24.619785 24,061,482 0.10% -1.74% 2000 ............................. 0.80% 1,019,044 24.861403 25,334,864 0.03% 7.20% 1999 ............................. 0.80% 867,898 17.400870 15,102,180 0.00% 7.19% Gartmore GVIT Total Return Fund - Class I 2003 ............................. 0.80% 2,163,462 27.324527 59,115,576 0.38% 11.83% 2002 ............................. 0.80% 2,269,016 27.912371 63,333,616 0.31% -0.06% 2001 ............................. 0.80% 2,325,959 31.255650 72,699,360 0.37% -8.26% 2000 ............................. 0.80% 2,427,549 36.120724 87,684,827 0.26% 2.95% 1999 ............................. 0.80% 2,643,756 36.480415 96,445,316 0.39% 10.31% Gartmore GVIT U.S. Growth Leaders Fund - Class I 2003 ............................. 0.80% 44,147 10.360010 457,363 0.00% 26.61% 2002 ............................. 0.80% 342 8.802699 3,011 0.00% -0.12% 05/01/02 Janus AS - Capital Appreciation Portfolio - Service Shares 2003 ............................. 0.80% 367,209 5.521833 2,027,667 0.16% 8.19% 2002 ............................. 0.80% 366,548 5.665727 2,076,761 0.19% -0.07% 2001 ............................. 0.80% 353,225 6.791205 2,398,823 0.66% -13.94% 2000 ............................. 0.80% 94,611 9.309560 880,787 0.12% -6.90% 05/01/00 Janus AS - Global Technology Portfolio - Service Shares 2003 ............................. 0.80% 290,721 2.893913 841,321 0.00% 17.79% 2002 ............................. 0.80% 299,365 2.937775 879,467 0.00% -0.30% 2001 ............................. 0.80% 293,913 4.973466 1,461,766 0.52% -26.24% 2000 ............................. 0.80% 92,673 10.089666 935,040 0.00% 0.90% 05/01/00 Janus AS - International Growth Portfolio - Service Shares 2003 ............................. 0.80% 206,221 4.686571 966,469 0.88% 5.91% 2002 ............................. 0.80% 365,845 5.256647 1,923,118 0.29% -0.13% 2001 ............................. 0.80% 219,984 6.654685 1,463,924 0.51% -15.87% 2000 ............................. 0.80% 43,691 9.732155 425,208 0.00% -2.68% 05/01/00 Janus AS - Risk-Managed Large Cap Core Portfolio - Service Shares 2003 ............................. 0.80% 123 10.606142 1,305 0.00% 6.06% 05/01/03 MAS GVIT (formerly Nationwide(R) SAT) Multi Sector Bond Fund - Class I 2003 ............................. 0.80% 80,278 12.308694 988,117 2.87% 7.28% 2002 ............................. 0.80% 49,317 10.966680 540,844 3.26% 0.02% 2001 ............................. 0.80% 24,647 10.475151 258,181 3.93% 0.36% 2000 ............................. 0.80% 1,326 10.164955 13,479 4.25% 1.65% 05/01/00 MFS VIT - MFS Investors Growth Stock Series - Initial Class 2003 ............................. 0.80% 123 10.638476 1,309 0.00% 6.38% 05/01/03
(Continued) 69 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*** -------- --------- ---------- -------------- ---------- --------- Neuberger Berman AMT - Balanced Portfolio 2003 ............................. 0.80% 2,746 $19.823084 $ 54,434 0.00% 7.51% 2002 ............................. 0.80% 2,365 19.841017 46,924 2.76% -0.12% Neuberger Berman AMT - Growth Portfolio 2003 ............................. 0.80% 663,756 17.812450 11,823,121 0.00% 13.92% 2002 ............................. 0.80% 719,241 18.312808 13,171,322 0.00% -0.20% 2001 ............................. 0.80% 810,125 26.821840 21,729,043 0.00% -19.08% 2000 ............................. 0.80% 777,780 43.038224 33,474,270 0.00% 13.80% 1999 ............................. 0.80% 668,108 26.010144 17,377,585 0.00% 2.61% Neuberger Berman AMT - Guardian Portfolio 2003 ............................. 0.80% 162,388 8.626108 1,400,776 0.00% 13.57% 2002 ............................. 0.80% 194,282 9.209055 1,789,154 0.68% -0.12% 2001 ............................. 0.80% 190,704 10.780683 2,055,919 0.42% 1.18% 2000 ............................. 0.80% 164,010 10.972407 1,799,584 0.55% 3.32% 1999 ............................. 0.80% 159,097 10.877878 1,730,638 0.32% 16.79% Neuberger Berman AMT - Limited Maturity Bond Portfolio 2003 ............................. 0.80% 223,250 18.143350 4,050,503 0.00% 1.52% 2002 ............................. 0.80% 214,239 17.385988 3,724,757 4.89% 0.02% 2001 ............................. 0.80% 138,736 16.521105 2,292,072 6.18% 4.25% 2000 ............................. 0.80% 153,168 15.187538 2,326,245 6.79% 1.52% 1999 ............................. 0.80% 172,383 14.850110 2,559,907 5.69% -0.07% Neuberger Berman AMT - Mid Cap Growth Portfolio - Class S 2003 ............................. 0.80% 263 10.792270 2,838 0.00% 7.92% 05/01/03 Neuberger Berman AMT - Partners Portfolio 2003 ............................. 0.80% 692,095 21.282460 14,729,484 0.00% 17.25% 2002 ............................. 0.80% 747,555 21.662321 16,193,776 0.48% -0.10% 2001 ............................. 0.80% 776,103 24.763505 19,219,031 0.37% -1.03% 2000 ............................. 0.80% 890,741 24.811256 22,100,403 0.76% -0.94% 1999 ............................. 0.80% 1,040,775 26.530639 27,612,426 1.17% 12.83% Neuberger Berman AMT - Socially Responsive Portfolio 2003 ............................. 0.80% 535 10.727381 5,739 0.00% 7.27% 05/01/03 Oppenheimer Aggressive Growth Fund/VA - Initial Class 2003 ............................. 0.80% 280,545 4.305523 1,207,893 0.00% 13.27% 2002 ............................. 0.80% 271,804 4.374263 1,188,942 0.60% -0.18% 2001 ............................. 0.80% 287,206 5.659052 1,625,314 0.78% -27.29% 2000 ............................. 0.80% 96,402 10.670421 1,028,650 0.00% 6.70% 05/01/00 Oppenheimer Bond Fund/VA - Initial Class 2003 ............................. 0.80% 464,188 22.567162 10,475,406 5.49% 4.77% 2002 ............................. 0.80% 510,658 20.297202 10,364,929 7.33% 0.02% 2001 ............................. 0.80% 458,542 19.539865 8,959,849 7.21% 4.96% 2000 ............................. 0.80% 472,868 17.959057 8,492,263 7.84% 1.54% 1999 ............................. 0.80% 525,968 17.727061 9,323,867 4.64% -2.08% Oppenheimer Capital Appreciation Fund/VA - Initial Class 2003 ............................. 0.80% 808,688 12.596440 10,186,590 0.41% 11.93% 2002 ............................. 0.80% 909,784 12.483988 11,357,733 0.57% -0.20% 2001 ............................. 0.80% 850,766 16.943942 14,415,330 0.60% -5.26% 2000 ............................. 0.80% 729,049 19.692541 14,356,827 0.12% 8.98% 1999 ............................. 0.80% 328,553 14.833265 4,873,514 0.27% 15.36%
70
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- --------- ---------- -------------- ---------- --------- Oppenheimer Global Securities Fund/VA - Initial Class 2003 ............................. 0.80% 963,181 $22.794401 $21,955,134 0.85% 11.27% 2002 ............................. 0.80% 1,035,345 24.520597 25,387,278 0.50% -0.08% 2001 ............................. 0.80% 1,085,883 27.736138 30,118,201 0.70% -8.74% 2000 ............................. 0.80% 1,107,837 32.144397 35,610,752 0.25% 10.26% 1999 ............................. 0.80% 974,688 21.017527 20,485,531 1.15% 13.35% Oppenheimer High Income Fund/VA - Initial Class 2003 ............................. 0.80% 1,406 10.337055 14,534 0.00% 3.37% 05/01/03 Oppenheimer Main Street(R) Growth & Income Fund/VA - Initial Class 2003 ............................. 0.80% 108,808 7.107036 773,302 1.03% 9.91% 2002 ............................. 0.80% 89,306 7.433293 663,838 0.64% -0.07% 2001 ............................. 0.80% 61,871 8.437202 522,018 0.45% -6.32% 2000 ............................. 0.80% 11,659 9.931623 115,793 0.00% -0.68% 05/01/00 Oppenheimer Main Street(R) Small Cap Fund/VA - Initial Class 2003 ............................. 0.80% 1,714 11.141198 19,096 0.00% 11.41% 05/01/03 Oppenheimer Multiple Strategies Fund/VA - Initial Class 2003 ............................. 0.80% 387,815 26.575719 10,306,462 3.02% 10.94% 2002 ............................. 0.80% 411,276 24.967418 10,268,500 3.38% -0.07% 2001 ............................. 0.80% 416,306 27.886972 11,609,514 3.76% 4.92% 2000 ............................. 0.80% 432,518 26.750095 11,569,898 4.44% 6.27% 1999 ............................. 0.80% 436,991 24.520578 10,715,272 3.39% 8.04% Putnam VT Growth & Income Fund - IB Shares 2003 ............................. 0.80% 120 10.856460 1,303 0.00% 8.56% 05/01/03 Putnam VT International Equity Fund - IB Shares 2003 ............................. 0.80% 127 10.553848 1,340 0.00% 5.54% 05/01/03 Putnam VT Voyager Fund - IB Shares 2003 ............................. 0.80% 239 10.515856 2,513 0.00% 5.16% 05/01/03 Strong GVIT Mid Cap Growth Fund - Class I 2003 ............................. 0.80% 472,969 4.270889 2,019,998 0.00% 21.95% 2002 ............................. 0.80% 222,291 4.258510 946,628 0.00% -0.24% 2001 ............................. 0.80% 97,151 6.963570 676,518 0.00% -14.12% 2000 ............................. 0.80% 24,669 10.104589 249,270 0.00% 1.05% 05/01/00 Strong Opportunity Fund II, Inc. 2003 ............................. 0.80% 777,720 34.343499 26,709,626 0.00% 15.69% 2002 ............................. 0.80% 877,959 34.552780 30,335,924 0.00% -0.16% 2001 ............................. 0.80% 893,798 42.653716 38,123,806 0.22% -0.36% 2000 ............................. 0.80% 909,850 41.961900 38,179,035 0.00% 3.67% 1999 0.80% 850,948 36.059910 30,685,108 0.00% 19.22% Strong VIF - Strong Discovery Fund II 2003 ............................. 0.80% 248,597 21.285491 5,291,509 0.00% 12.66% 2002 ............................. 0.80% 278,510 20.579978 5,731,730 0.00% -0.05% 2001 ............................. 0.80% 286,621 22.914443 6,567,761 0.68% 9.30% 2000 ............................. 0.80% 287,247 22.537617 6,473,863 0.00% 11.33% 1999 ............................. 0.80% 315,862 18.289393 5,776,924 0.00% -5.81% Strong VIF - Strong International Stock Fund II 2002 ............................. 0.80% 207,912 7.324360 1,522,822 3.62% -0.06% 2001 ............................. 0.80% 212,994 8.671573 1,846,993 0.00% -14.32% 2000 ............................. 0.80% 285,882 14.800344 4,231,152 0.00% -12.26% 1999 ............................. 0.80% 146,319 10.066830 1,472,968 0.39% 10.83%
(Continued) 71 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*** -------- ------- ---------- -------------- ---------- --------- Turner GVIT Growth Focus Fund - Class I 2003 ............................... 0.80% 170,251 $ 2.640481 $ 449,545 0.00% 21.63% 2002 ............................... 0.80% 52,769 2.473186 130,508 0.00% -0.35% 2001 ............................... 0.80% 24,390 4.595277 112,079 0.00% -27.43% Van Eck WIT - Worldwide Bond Fund 2003 ............................... 0.80% 215,278 17.673856 3,804,792 1.62% 9.91% 2002 ............................... 0.80% 159,687 14.567433 2,326,230 0.00% 0.09% 2001 ............................... 0.80% 123,779 13.065112 1,617,186 4.49% -7.68% 2000 ............................... 0.80% 130,953 13.920782 1,822,968 4.81% -0.59% 1999 ............................... 0.80% 145,716 14.178734 2,066,068 4.14% -7.41% Van Eck WIT - Worldwide Emerging Markets Fund 2003 ............................... 0.80% 440,505 6.828009 3,007,772 0.13% 9.97% 2002 ............................... 0.80% 549,308 6.858743 3,767,562 0.15% 0.06% 2001 ............................... 0.80% 514,834 6.543823 3,368,983 0.00% -1.12% 2000 ............................... 0.80% 599,413 10.010672 6,000,527 0.00% -12.76% 1999 ............................... 0.80% 384,147 8.394502 3,224,723 0.00% 45.35% Van Eck WIT - Worldwide Hard Assets Fund 2003 ............................... 0.80% 182,904 14.736980 2,695,453 0.52% 6.22% 2002 ............................... 0.80% 190,240 15.676162 2,982,233 0.63% 0.09% 2001 ............................... 0.80% 186,647 15.588349 2,909,519 1.07% -3.79% 2000 ............................... 0.80% 205,673 15.175472 3,121,185 1.10% 3.51% 1999 ............................... 0.80% 203,079 14.384055 2,921,100 1.50% 17.77% Van Kampen UIF - Emerging Markets Debt Portfolio 2003 ............................... 0.80% 159,361 13.728750 2,187,827 0.00% 17.07% 2002 ............................... 0.80% 82,260 10.795827 888,065 0.00% 0.00% 2001 ............................... 0.80% 66,847 10.341124 691,273 0.00% 4.36% 2000 ............................... 0.80% 61,089 9.513376 581,163 0.00% 6.09% 1999 ............................... 0.80% 40,988 7.860506 322,186 0.00% 12.50% Van Kampen UIF - U.S. Real Estate Portfolio 2003 ............................... 0.80% 337,831 23.579453 7,965,870 0.00% 13.58% 2002 ............................... 0.80% 354,628 23.201445 8,227,882 0.00% 0.10% 2001 ............................... 0.80% 310,318 20.838647 6,466,607 0.00% 7.65% 2000 ............................... 0.80% 240,991 17.343368 4,179,596 4.52% 13.82% 1999 ............................... 0.80% 261,395 17.178756 4,490,441 6.49% 8.07% Single Premium contracts issued on or after April 16, 1990 American Century VP Balanced Fund - Class I 2003 ............................... 1.30% 44,999 18.072950 813,265 2.66% 9.01% 2002 ............................... 1.30% 25,332 17.321966 438,800 2.59% -0.07% 2001 ............................... 1.30% 30,910 19.063534 589,254 2.76% -2.27% 2000 ............................... 1.30% 31,996 20.416546 653,248 2.40% 0.58% 1999 ............................... 1.30% 37,211 19.330632 719,312 1.85% 3.46% American Century VP Capital Appreciation Fund - Class I 2003 ............................... 1.30% 80,374 15.216131 1,222,981 0.00% 5.75% 2002 ............................... 1.30% 87,136 16.519515 1,439,444 0.00% -0.11% 2001 ............................... 1.30% 113,737 22.198223 2,524,759 0.00% -14.81% 2000 ............................... 1.30% 142,303 28.237153 4,018,232 0.00% 16.64% 1999 ............................... 1.30% 117,946 17.192298 2,027,763 0.00% 15.33%
72
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- American Century VP Income & Growth Fund - Class I 2003 ............................... 1.30% 27,159 $ 8.917541 $ 242,191 1.39% 11.31% 2002 ............................... 1.30% 38,835 8.971541 348,410 1.01% -0.11% 2001 ............................... 1.30% 44,804 10.635234 476,501 0.84% -4.43% 2000 ............................... 1.30% 47,586 12.083124 574,988 0.56% -4.20% 1999 ............................... 1.30% 90,616 11.806665 1,069,873 0.02% 9.05% American Century VP International Fund - Class I 2003 ............................... 1.30% 61,124 12.284746 750,893 0.78% 4.28% 2002 ............................... 1.30% 76,888 14.226566 1,093,852 0.74% -0.05% 2001 ............................... 1.30% 113,925 17.011077 1,937,987 0.09% -20.66% 2000 ............................... 1.30% 139,070 24.386291 3,391,401 0.12% -6.62% 1999 ............................... 1.30% 129,891 17.201371 2,234,303 0.00% 6.66% American Century VP Ultra Fund - Class I 2003 ............................... 1.30% 1,459 8.833231 12,888 0.00% 10.85% American Century VP Value Fund - Class I 2003 ............................... 1.30% 113,391 15.565216 1,764,955 1.14% 8.72% 2002 ............................... 1.30% 99,329 15.848439 1,574,210 0.81% -0.05% 2001 ............................... 1.30% 87,193 15.877872 1,384,439 1.22% 6.52% 2000 ............................... 1.30% 28,446 12.191012 346,786 1.15% -4.62% 1999 ............................... 1.30% 35,828 14.681670 526,015 0.92% 12.42% Credit Suisse Trust - Global Post-Venture Capital Portfolio 2003 ............................... 1.30% 4,817 8.327280 40,113 0.00% 17.83% 2002 ............................... 1.30% 6,041 9.281753 56,071 0.00% -0.15% 2001 ............................... 1.30% 9,762 12.331142 120,377 0.00% -20.12% 2000 ............................... 1.30% 11,622 20.124199 233,883 0.00% 4.31% 1999 ............................... 1.30% 18,635 13.390123 249,525 0.00% 12.01% Credit Suisse Trust - International Focus Portfolio 2003 ............................... 1.30% 48,365 8.436880 408,050 0.00% 8.13% 2002 ............................... 1.30% 52,474 9.653251 506,545 0.00% -0.02% 2001 ............................... 1.30% 72,406 10.744265 777,949 0.00% -16.48% 2000 ............................... 1.30% 73,372 15.945187 1,169,930 0.00% -9.33% 1999 ............................... 1.30% 146,495 12.334941 1,807,007 0.00% 6.23% Credit Suisse Trust - Small Cap Growth Portfolio 2003 ............................... 1.30% 47,970 13.222590 634,288 0.00% 18.07% 2002 ............................... 1.30% 59,514 13.311792 792,238 0.00% -0.22% 2001 ............................... 1.30% 71,783 17.727257 1,272,516 0.00% -14.11% 2000 ............................... 1.30% 122,065 25.978527 3,171,069 0.00% 1.74% 1999 ............................... 1.30% 99,269 16.225912 1,610,730 0.00% 6.06% Dreyfus GVIT Mid Cap Index Fund - Class I 2003 ............................... 1.30% 63,208 9.446061 597,067 0.23% 11.24% 2002 ............................... 1.30% 59,955 9.718758 582,688 0.14% -0.04% 2001 ............................... 1.30% 19,053 10.427656 198,678 0.34% 0.01% 2000 ............................... 1.30% 857 9.857951 8,448 0.32% -1.42% 05/01/00 Dreyfus IP - European Equity Portfolio 2002 ............................... 1.30% 1,162 6.010482 6,984 0.00% -0.09% 2001 ............................... 1.30% 3,896 7.333323 28,571 0.12% -20.92% Dreyfus IP - Small Cap Stock Index Portfolio - Service Class 2003 ............................... 1.30% 11,534 8.514847 98,210 0.00% 11.91%
(Continued) 73 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 Socially Responsible Growth Fund, Inc. - Initial Shares 2003 ............................... 1.30% 11,824 $18.271137 $ 216,038 0.01% 9.56% 2002 ............................... 1.30% 23,465 19.578839 459,417 0.01% -0.18% 2001 ............................... 1.30% 33,256 26.549559 882,932 0.01% -14.67% 2000 ............................... 1.30% 31,163 36.098124 1,124,926 0.02% 1.89% 1999 ............................... 1.30% 27,001 30.917208 834,796 0.00% 12.05% Dreyfus Stock Index Fund 2003 ............................... 1.30% 187,301 21.494604 4,025,961 0.75% 10.92% 2002 ............................... 1.30% 192,389 21.778831 4,190,008 0.61% -0.14% 2001 ............................... 1.30% 244,163 27.003672 6,593,298 0.51% -7.44% 2000 ............................... 1.30% 277,642 32.188665 8,936,925 0.46% -1.19% 1999 ............................... 1.30% 358,680 30.489368 10,935,927 0.57% 11.42% Dreyfus VIF - Appreciation Portfolio - Initial Shares 2003 ............................... 1.30% 72,974 11.213896 818,323 0.02% 7.81% 2002 ............................... 1.30% 79,644 11.480614 914,362 0.01% -0.09% 2001 ............................... 1.30% 75,662 13.165318 996,114 0.01% -6.86% 2000 ............................... 1.30% 70,600 14.720022 1,039,234 0.00% 2.13% 1999 ............................... 1.30% 98,278 13.994585 1,375,360 0.01% 6.82% Dreyfus VIF - Growth and Income Portfolio - Initial Shares 2003 ............................... 1.30% 13,707 10.441343 143,119 0.41% 10.01% 2002 ............................... 1.30% 12,198 10.842635 132,258 0.25% -0.16% 2001 ............................... 1.30% 20,832 13.744213 286,319 0.22% -0.81% 2000 ............................... 1.30% 13,358 14.365377 191,893 0.28% -1.53% 1999 ............................... 1.30% 9,057 13.955563 126,396 0.45% 10.37% Federated Quality Bond Fund II - Primary Shares 2003 ............................... 1.30% 17,478 11.132949 194,582 3.67% 4.15% 2002 ............................... 1.30% 1,958 10.098821 19,773 0.00% 0.01% 05/01/02 Fidelity(R) VIP - Equity-Income Portfolio: Initial Class 2003 ............................... 1.30% 228,833 32.332370 7,398,713 1.92% 10.00% 2002 ............................... 1.30% 265,201 33.435275 8,867,068 1.60% -0.07% 2001 ............................... 1.30% 302,317 37.631978 11,376,787 1.66% -1.54% 2000 ............................... 1.30% 332,455 34.534901 11,481,301 1.72% -3.30% 1999 ............................... 1.30% 433,048 38.100394 16,499,299 1.41% 11.98% Fidelity(R) VIP - Growth Portfolio: Initial Class 2003 ............................... 1.30% 239,384 30.069159 7,198,076 0.29% 12.73% 2002 ............................... 1.30% 264,553 31.020701 8,206,620 0.23% -0.20% 2001 ............................... 1.30% 313,470 42.705157 13,386,786 0.08% -10.22% 2000 ............................... 1.30% 340,648 56.530281 19,256,927 0.11% 4.43% 1999 ............................... 1.30% 392,416 45.360460 17,800,170 0.16% 13.68% Fidelity(R) VIP - High Income Portfolio: Initial Class 2003 ............................... 1.30% 147,756 23.390450 3,456,079 6.15% 16.44% 2002 ............................... 1.30% 94,224 18.686746 1,760,740 10.31% -0.05% 2001 ............................... 1.30% 98,801 20.822981 2,057,331 12.28% -7.79% 2000 ............................... 1.30% 103,845 27.896133 2,896,874 6.88% -5.46% 1999 ............................... 1.30% 127,548 29.648402 3,781,594 8.97% 7.27%
74
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Fidelity(R) VIP - Overseas Portfolio: Initial Class 2003 ............................... 1.30% 121,487 $13.092438 $1,590,561 0.93% 9.64% 2002 ............................... 1.30% 148,584 14.702494 2,184,555 0.73% -0.03% 2001 ............................... 1.30% 162,607 17.157071 2,789,860 5.04% -12.03% 2000 ............................... 1.30% 207,291 23.036637 4,775,288 1.39% -5.68% 1999 ............................... 1.30% 249,480 18.635018 4,649,064 1.45% 7.42% Fidelity(R) VIP II - Asset Manager Portfolio: Initial Class 2003 ............................... 1.30% 169,791 26.315509 4,468,137 3.69% 9.44% 2002 ............................... 1.30% 170,527 24.301499 4,144,062 3.81% -0.09% 2001 ............................... 1.30% 204,315 27.015782 5,519,729 4.17% -4.18% 2000 ............................... 1.30% 203,672 29.336240 5,974,971 3.17% -1.33% 1999 ............................... 1.30% 221,072 28.355264 6,268,555 3.22% 4.58% Fidelity(R) VIP II - Contrafund Portfolio: Initial Class 2003 ............................... 1.30% 202,206 19.883174 4,020,497 0.50% 8.88% 2002 ............................... 1.30% 207,944 20.120594 4,183,957 0.79% -0.01% 2001 ............................... 1.30% 232,338 21.085483 4,898,959 0.80% -10.52% 2000 ............................... 1.30% 269,074 25.064937 6,744,323 0.34% -1.95% 1999 ............................... 1.30% 310,369 23.038947 7,150,575 0.46% 10.54% Fidelity(R) VIP III - Growth Opportunities Portfolio: Initial Class 2003 ............................... 1.30% 13,875 8.288477 115,003 0.82% 12.26% 2002 ............................... 1.30% 17,848 8.251573 147,274 0.99% -0.14% 2001 ............................... 1.30% 50,383 10.271304 517,499 0.37% -9.35% 2000 ............................... 1.30% 17,982 13.249937 238,260 1.18% -4.27% 1999 ............................... 1.30% 31,721 14.227045 451,296 0.91% 5.80% Fidelity(R) VIP III - Value Strategies Portfolio: Service Class 2003 ............................... 1.30% 10,922 8.988265 98,170 0.00% 20.74% Gartmore GVIT Emerging Markets Fund - Class I 2003 ............................... 1.30% 1,009 7.851110 7,922 0.31% 15.44% 2002 ............................... 1.30% 24,791 7.874705 195,222 0.02% -0.03% Gartmore GVIT Global Financial Services Fund - Class I 2003 ............................... 1.30% 2,562 9.695592 24,840 0.00% 12.89% Gartmore GVIT Global Health Sciences Fund - Class I 2003 ............................... 1.30% 36,055 10.381258 374,296 0.00% 25.56% Gartmore GVIT Global Technology and Communications Fund - Class I 2003 ............................... 1.30% 21,974 2.396573 52,662 0.00% 25.13% 2001 ............................... 1.30% 20,117 4.224462 84,984 0.00% -29.58% Gartmore GVIT Global Utilities Fund - Class I 2003 ............................... 1.30% 6,619 9.481927 62,761 0.13% 10.15% Gartmore GVIT Government Bond Fund - Class I 2003 ............................... 1.30% 163,779 24.359383 3,989,555 1.94% 2.47% 2002 ............................... 1.30% 256,667 22.464624 5,765,928 2.27% 0.04% 2001 ............................... 1.30% 187,491 20.861508 3,911,345 2.49% 1.77% 2000 ............................... 1.30% 195,239 19.072199 3,723,637 2.82% 3.36% 1999 ............................... 1.30% 267,958 18.605935 4,985,609 2.78% -2.80% Gartmore GVIT Growth Fund - Class I 2003 ............................... 1.30% 30,023 13.040536 391,516 0.00% 14.29% 2002 ............................... 1.30% 32,421 13.349275 432,797 0.00% -0.18% 2001 ............................... 1.30% 42,013 17.871929 750,853 0.00% -21.83% 2000 ............................... 1.30% 46,646 31.559777 1,472,137 0.16% 0.11% 1999 ............................... 1.30% 102,409 34.062359 3,488,292 0.28% 11.21%
(Continued) 75 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 ID Moderate Fund 2003 ............................... 1.30% 1,420 $ 9.679293 $ 13,745 1.10% 7.19% Gartmore GVIT ID Moderately Conservative Fund 2003 ............................... 1.30% 96 10.021990 962 1.23% 5.20% Gartmore GVIT Money Market Fund - Class I 2003 ............................... 1.30% 490,095 14.860350 7,282,983 0.37% -0.28% 2002 ............................... 1.30% 787,198 14.913390 11,739,791 0.62% 0.00% 2001 ............................... 1.30% 722,364 14.829972 10,712,638 2.26% 1.65% 2000 ............................... 1.30% 914,797 14.240158 13,026,854 2.80% 2.15% 1999 ............................... 1.30% 886,332 13.691097 12,134,857 2.26% 1.64% Gartmore GVIT Nationwide(R) Leaders Fund - Class I 2002 ............................... 1.30% 1,575 9.695229 15,270 0.00% -0.03% 05/01/02 Gartmore GVIT Small Cap Growth Fund - Class I 2003 ............................... 1.30% 24,410 5.368660 131,049 0.00% 15.09% 2002 ............................... 1.30% 6,963 5.667815 39,465 0.00% -0.20% 2001 ............................... 1.30% 29,330 7.593588 222,720 0.00% -5.66% 2000 ............................... 1.30% 30 10.165270 305 0.00% 1.65% 05/01/00 Gartmore GVIT Small Cap Value Fund - Class I 2003 ............................... 1.30% 105,756 12.744155 1,347,771 0.00% 18.50% 2002 ............................... 1.30% 132,467 13.027866 1,725,762 0.00% -0.13% 2001 ............................... 1.30% 282,090 15.381160 4,338,871 0.00% 30.19% 2000 ............................... 1.30% 255,813 11.870653 3,036,667 0.00% 10.29% 1999 ............................... 1.30% 33,987 10.480137 356,188 0.00% 22.87% Gartmore GVIT Small Company Fund - Class I 2003 ............................... 1.30% 37,250 20.996160 782,107 0.00% 14.45% 2002 ............................... 1.30% 42,731 21.368456 913,095 0.00% -0.05% 2001 ............................... 1.30% 77,149 23.930338 1,846,202 0.10% -1.99% 2000 ............................... 1.30% 90,057 24.285896 2,187,115 0.03% 6.93% 1999 ............................... 1.30% 52,294 17.083318 893,355 0.00% 6.93% Gartmore GVIT Total Return Fund - Class I 2003 ............................... 1.30% 71,468 27.710584 1,980,420 0.38% 11.56% 2002 ............................... 1.30% 80,866 28.449510 2,300,598 0.31% -0.07% 2001 ............................... 1.30% 98,370 32.016607 3,149,474 0.37% -8.49% 2000 ............................... 1.30% 110,742 37.184928 4,117,933 0.26% 2.70% 1999 ............................... 1.30% 124,060 37.743760 4,682,491 0.39% 10.04% Gartmore GVIT U.S. Growth Leaders Fund - Class I 2003 ............................... 1.30% 7,197 10.299831 74,128 0.00% 26.30% Janus AS - Capital Appreciation Portfolio - Service Shares 2003 ............................... 1.30% 14,621 5.435093 79,466 0.16% 7.93% 2002 ............................... 1.30% 11,767 5.604845 65,952 0.19% -0.08% 2001 ............................... 1.30% 20,999 6.751870 141,783 0.66% -14.16% 2000 ............................... 1.30% 13,594 9.301931 126,450 0.12% -6.98% 05/01/00 Janus AS - Global Technology Portfolio - Service Shares 2003 ............................... 1.30% 34,391 2.848385 97,959 0.00% 17.50% 2002 ............................... 1.30% 23,220 2.906145 67,481 0.00% -0.30% 2001 ............................... 1.30% 69,962 4.944600 345,934 0.52% -26.43% 2000 ............................... 1.30% 13,066 10.081425 131,724 0.00% 0.81% 05/01/00
76
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Janus AS - International Growth Portfolio - Service Shares 2003 ............................... 1.30% 59,243 $ 4.612936 $ 273,284 0.88% 5.65% 2002 ............................... 1.30% 89,869 5.200156 467,333 0.29% -0.13% 2001 ............................... 1.30% 75,824 6.616144 501,663 0.51% -16.08% 2000 ............................... 1.30% 18,723 9.724184 182,066 0.00% -2.76% 05/01/00 MAS GVIT (formerly Nationwide(R) SAT) Multi Sector Bond Fund - Class I 2003 ............................... 1.30% 19,657 12.115625 238,157 2.87% 7.02% 2002 ............................... 1.30% 2,227 10.849040 24,161 3.26% 0.01% 2001 ............................... 1.30% 2,913 10.414583 30,338 3.93% 0.11% 2000 ............................... 1.30% 4,246 10.156626 43,125 4.25% 1.57% Neuberger Berman AMT - Growth Portfolio 2003 ............................... 1.30% 74,250 17.481166 1,297,977 0.00% 13.64% 2002 ............................... 1.30% 74,470 18.062896 1,345,144 0.00% -0.20% 2001 ............................... 1.30% 117,196 26.588515 3,116,068 0.00% -19.28% 2000 ............................... 1.30% 138,090 42.877597 5,920,967 0.00% 13.52% 1999 ............................... 1.30% 156,644 26.043027 4,079,484 0.00% 2.36% Neuberger Berman AMT - Guardian Portfolio 2003 ............................... 1.30% 9,399 8.406131 79,009 0.00% 13.29% 2002 ............................... 1.30% 7,023 9.019483 63,344 0.68% -0.12% 2001 ............................... 1.30% 4,912 10.611623 52,124 0.42% 0.93% 2000 ............................... 1.30% 2,851 10.854257 30,945 0.55% 3.07% 1999 ............................... 1.30% 11,315 10.814767 122,369 0.32% 16.50% Neuberger Berman AMT - Limited Maturity Bond Portfolio 2003 ............................... 1.30% 72,410 18.260082 1,322,213 0.00% 1.27% 2002 ............................... 1.30% 93,926 17.586016 1,651,784 4.89% 0.01% 2001 ............................... 1.30% 59,034 16.794687 991,458 6.18% 3.99% 2000 ............................... 1.30% 58,879 15.516072 913,571 6.79% 1.27% 1999 ............................... 1.30% 70,857 15.247492 1,080,392 5.69% -0.32% Neuberger Berman AMT - Partners Portfolio 2003 ............................... 1.30% 41,490 20.354950 844,527 0.00% 16.96% 2002 ............................... 1.30% 48,555 20.822766 1,011,049 0.48% -0.10% 2001 ............................... 1.30% 57,864 23.923000 1,384,280 0.37% -1.28% 2000 ............................... 1.30% 67,575 24.088791 1,627,800 0.76% -1.18% 1999 ............................... 1.30% 76,840 25.887457 1,989,192 1.17% 12.55% Oppenheimer Aggressive Growth Fund/VA - Initial Class 2003 ............................... 1.30% 16,884 4.237844 71,552 0.00% 12.99% 2002 ............................... 1.30% 11,903 4.327222 51,507 0.60% -0.18% 2001 ............................... 1.30% 15,481 5.626229 87,100 0.78% -27.47% 2000 ............................... 1.30% 3,519 10.661721 37,519 0.00% 6.62% 05/01/00 Oppenheimer Bond Fund/VA - Initial Class 2003 ............................... 1.30% 67,596 23.014925 1,555,717 5.49% 4.51% 2002 ............................... 1.30% 66,724 20.804198 1,388,139 7.33% 0.02% 2001 ............................... 1.30% 68,571 20.128041 1,380,200 7.21% 4.70% 2000 ............................... 1.30% 61,865 18.591992 1,150,194 7.84% 1.29% 1999 ............................... 1.30% 70,103 18.443963 1,292,977 4.64% -2.32% Oppenheimer Capital Appreciation Fund/VA - Initial Class 2003 ............................... 1.30% 92,126 12.226341 1,126,364 0.41% 11.66% 2002 ............................... 1.30% 77,274 12.178328 941,068 0.57% -0.20% 2001 ............................... 1.30% 96,056 16.611937 1,595,676 0.60% -5.50% 2000 ............................... 1.30% 88,420 19.403178 1,715,629 0.12% 8.71% 1999 ............................... 1.30% 47,258 14.688618 694,155 0.27% 15.08%
(Continued) 77 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 Global Securities Fund/VA - Initial Class 2003 ............................... 1.30% 70,612 $21.710374 $1,533,013 0.85% 11.00% 2002 ............................... 1.30% 86,993 23.472293 2,041,925 0.50% -0.08% 2001 ............................... 1.30% 102,954 26.683323 2,747,155 0.70% -8.97% 2000 ............................... 1.30% 107,956 31.078774 3,355,140 0.25% 9.99% 1999 ............................... 1.30% 85,908 20.422626 1,754,467 1.15% 13.07% Oppenheimer Main Street(R) Growth & Income Fund/VA - Initial Class 2003 ............................... 1.30% 18,783 6.995458 131,396 1.03% 9.64% 2002 ............................... 1.30% 12,531 7.353489 92,147 0.64% -0.08% 2001 ............................... 1.30% 5,834 8.388404 48,938 0.45% -6.56% 2000 ............................... 1.30% 62 9.923502 615 0.00% -0.76% 05/01/00 Oppenheimer Multiple Strategies Fund/VA - Initial Class 2003 ............................... 1.30% 56,018 26.081642 1,461,041 3.02% 10.66% 2002 ............................... 1.30% 73,081 24.626760 1,799,748 3.38% -0.08% 2001 ............................... 1.30% 94,582 27.644148 2,614,639 3.76% 4.66% 2000 ............................... 1.30% 112,906 26.649552 3,008,894 4.44% 6.01% 1999 ............................... 1.30% 102,500 24.551015 2,516,479 3.39% 7.77% Strong GVIT Mid Cap Growth Fund - Class I 2003 ............................... 1.30% 7,203 4.203720 30,279 0.00% 21.64% 2002 ............................... 1.30% 5,413 4.212682 22,803 0.00% -0.24% 2001 ............................... 1.30% 26,284 6.923187 181,969 0.00% -14.33% 2000 ............................... 1.30% 7,955 10.096335 80,316 0.00% 0.96% 05/01/00 Strong Opportunity Fund II, Inc. 2003 ............................... 1.30% 73,441 32.478601 2,385,261 0.00% 15.40% 2002 ............................... 1.30% 89,296 32.841320 2,932,599 0.00% -0.16% 2001 ............................... 1.30% 98,895 40.744102 4,029,388 0.22% -0.60% 2000 ............................... 1.30% 111,976 40.283344 4,510,768 0.00% 3.41% 1999 ............................... 1.30% 109,977 34.791123 3,826,223 0.00% 18.93% Strong VIF - Strong Discovery Fund II 2003 ............................... 1.30% 24,066 20.129155 484,428 0.00% 12.38% 2002 ............................... 1.30% 28,687 19.560107 561,121 0.00% -0.05% 2001 ............................... 1.30% 41,683 21.887975 912,356 0.68% 9.02% 2000 ............................... 1.30% 33,969 21.635577 734,939 0.00% 11.06% 1999 ............................... 1.30% 41,321 17.645494 729,129 0.00% -6.05% Strong VIF - Strong International Stock Fund II 2002 ............................... 1.30% 30,300 7.083696 214,636 3.62% -0.07% 2001 ............................... 1.30% 29,998 8.428633 252,842 0.00% -14.53% 2000 ............................... 1.30% 83,030 14.457718 1,200,424 0.00% -12.48% 1999 ............................... 1.30% 31,725 9.883060 313,540 0.39% 10.55% Turner GVIT Growth Focus Fund - Class I 2003 ............................... 1.30% 19,294 2.604390 50,249 0.00% 21.33% 2002 ............................... 1.30% 2,518 2.451686 6,173 0.00% -0.36% 2001 ............................... 1.30% 5,597 4.578197 25,624 0.00% -27.61% Van Eck WIT - Worldwide Bond Fund 2003 ............................... 1.30% 39,868 18.201293 725,649 1.62% 9.64% 2002 ............................... 1.30% 41,049 15.077703 618,925 0.00% 0.09% 2001 ............................... 1.30% 29,871 13.590319 405,956 4.49% -7.91% 2000 ............................... 1.30% 32,914 14.552700 478,988 4.81% -0.84% 1999 ............................... 1.30% 41,814 14.896779 622,894 4.14% -7.64%
78
Contract Investment Expense Unit Contract Income Total Rate* Units Fair Value Owners' Equity Ratio** Return*** -------- ------- ---------- -------------- ---------- --------- Van Eck WIT - Worldwide Emerging Markets Fund 2003 ............................... 1.30% 21,625 $ 6.608879 $ 142,917 0.13% 9.70% 2002 ............................... 1.30% 75,103 6.672120 501,096 0.15% 0.06% 2001 ............................... 1.30% 51,579 6.397651 329,984 0.00% -1.37% 2000 ............................... 1.30% 52,529 9.836053 516,678 0.00% -12.98% 1999 ............................... 1.30% 77,991 8.289473 646,504 0.00% 44.99% Van Eck WIT - Worldwide Hard Assets Fund 2003 ............................... 1.30% 44,220 12.938152 572,125 0.52% 5.95% 2002 ............................... 1.30% 49,745 13.832106 688,078 0.63% 0.09% 2001 ............................... 1.30% 53,370 13.823463 737,758 1.07% -4.03% 2000 ............................... 1.30% 63,127 13.524434 853,757 1.10% 3.26% 1999 ............................... 1.30% 80,704 12.883474 1,039,748 1.50% 17.48% Van Kampen UIF - Emerging Markets Debt Portfolio 2003 ............................... 1.30% 20,698 13.325567 275,813 0.00% 16.78% 2002 ............................... 1.30% 21,829 10.531555 229,893 0.00% 0.00% 2001 ............................... 1.30% 3,246 10.138402 32,909 0.00% 4.10% 2000 ............................... 1.30% 10,926 9.373441 102,414 0.00% 5.83% 1999 ............................... 1.30% 6,578 7.783728 51,201 0.00% 12.23% Van Kampen UIF - U.S. Real Estate Portfolio 2003 ............................... 1.30% 42,800 22.655983 969,676 0.00% 13.30% 2002 ............................... 1.30% 74,936 22.405151 1,678,952 0.00% 0.10% 2001 ............................... 1.30% 57,251 20.224083 1,157,849 0.00% 7.38% 2000 ............................... 1.30% 57,612 16.915844 974,556 4.52% 13.54% 1999 ............................... 1.30% 52,871 16.839423 890,317 6.49% 7.80% -------------- Contract Owners' Equity Total By Year 2003 ................................................................. $ 787,581,000 ============== 2002 ................................................................. $ 834,667,793 ============== 2001 ................................................................. $ 992,071,963 ============== 2000 ................................................................. $1,170,595,750 ============== 1999 ................................................................. $1,020,153,905 ==============
* This represents the contract expense rate of the variable account for the six-month 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 six-month period indicated, excluding distributions of capital gains, received by the sub-account from the underlying mutual fund, net of management fees assessed by the fund manager, divided by average monthly 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 six-month 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 six-month period indicated or from the effective date through the end of the six-month period. -------------------------------------------------------------------------------- 79 NATIONWIDE LIFE INSURANCE COMPANY HOME OFFICE: ONE NATIONWIDE PLAZA . COLUMBUS, OHIO 43215-2220 --------------- PRSRT STD U.S. POSTAGE PAID LANCASTER, PA PERMIT NO. 1793 --------------- Nationwide(R) is a registered federal service mark of Nationwide Mutual Insurance Company