-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P5jj9TbZTuKftpFnlguKV8fFj4N7gU5o3WCG1zcm7cX7LGjLp/1k6y8EypJmBHVH C8xwD8HQ6UwRMWmUXdlx1w== 0000931763-98-002373.txt : 19980907 0000931763-98-002373.hdr.sgml : 19980907 ACCESSION NUMBER: 0000931763-98-002373 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980904 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CANADA LIFE OF AMERICA VARIABLE ANNUITY ACCOUNT 2 CENTRAL INDEX KEY: 0000895360 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 382816473 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07350 FILM NUMBER: 98704369 BUSINESS ADDRESS: STREET 1: 6201 POWERS FERRY ROAD NW CITY: ATLANTA STATE: GA ZIP: 30339 BUSINESS PHONE: 7709531959 MAIL ADDRESS: STREET 1: 6201 POWERS FERRY ROAD, NW CITY: ATLANTA STATE: GA ZIP: 30339 N-30D 1 TRILLIUM SEMI-ANNUAL REPORT August, 1998 Dear Valued Trillium(R) Policyowner: Enclosed for your review is the Trillium Semi-Annual Report for the period ending June 30, 1998. We encourage you to review this information and refer to it as needed throughout the year. For your convenience, please use the "tear-off" below to make additional payments to your Trillium policy. For other information, please contact your registered representative. Thank you for selecting Trillium. Sincerely, Ronald E. Beettam, President Canada Life Insurance Company of America - -------------------------------------------------------------------------------- POLICYOWNER(S): ____________________________ POLICY NUMBER: _______________ (PRINT NAME(S)) IF YOU ARE CHANGING YOUR ALLOCATION, PLEASE COMPLETE THE FOLLOWING: _____ THIS PAYMENT ONLY _____ THIS PAYMENT AND ALL FUTURE PAYMENTS --- _____ RE-ALLOCATE ALL CURRENT ASSETS (21) Cash Management ____% (22) INCOME ____% (23) Bond ____% (24) COMMON STOCK ____% (25) Capital ____% (26) INTERNATIONAL ____% (27) Communication & Information ____% (28) GLOBAL GROWTH OPPORTUNITY ____% (29) Global Smaller Companies ____% (41) FRONTIER ____% (42) High Yield Bond ____% (43) GLOBAL TECHNOLOGY ____% (44) Small-Cap Value ____% (45) LARGE-CAP VALUE ____% (201) Fixed Account (1 year)* ____% (203) FIXED ACCOUNT (3 YEAR)* ____% (205) Fixed Account (5 year)* ____% (207) FIXED ACCOUNT (7 YEAR)* ____% (210) Fixed Account (10 year)* ____%
* PLEASE CHECK FOR STATE AVAILABILITY. TOTAL MUST EQUAL 100%. PLEASE MAKE CHECKS PAYABLE TO CANADA LIFE INSURANCE COMPANY OF AMERICA. DATE: _______________ POLICYOWNER'S SIGNATURE:_________________________ Variable annuity policies issued by Canada Life Insurance Company of America. Offered by Canada Life of America Financial Services, Inc., Member, NASD MID-YEAR REPORT TRILLIUM A VARIABLE ANNUITY June 30, 1998 TOTAL RETURNS* For the Six Months Ended June 30, 1998 SUB-ACCOUNTS: Bond ................................................................. 3.09% Capital .............................................................. 13.13 Cash Management ...................................................... 1.97 Common Stock ......................................................... 12.36 Communications and Information ....................................... 12.36 Frontier ............................................................. 7.68 Global Growth Opportunities .......................................... 18.49 Global Smaller Companies ............................................ 15.37 Global Technology .................................................... 20.69 International ........................................................ 17.28 High-Yield Bond ...................................................... 5.08 Income ............................................................... 4.92 Large-Cap Value ...................................................... (1.03)** Small-Cap Value ...................................................... (8.72)**
- ------------- * Total returns of the Sub-Accounts are based on the performance of the Seligman Portfolios, Inc., the underlying investment vehicle for the Canada Life of America Variable Annuity Account 2 (Variable Annuity Account 2), less current fees and charges. The returns exclude any contingent deferred sales charge ("CDSC") applicable to the Variable Annuity Account 2, and are not annualized. ** From commencement of operations, May 1, 1998. SELIGMAN PORTFOLIOS, INC. THE UNDERLYING INVESTMENT VEHICLE FOR TRILLIUM A VARIABLE ANNUITY July 31, 1998 Dear Contract Owner: J. & W. Seligman & Co. Incorporated, as Manager of Seligman Portfolios, Inc. ("the Fund"), the underlying investment vehicle for your Trillium Variable Annuity, and Canada Life Insurance Company of America, as issuer of The Canada Life of America Variable Annuity Account 2 (the "Variable Account"), are pleased to provide the enclosed unaudited financial statements and accompanying information for the six months ended June 30, 1998. The US economy continued to grow throughout the first half of the year, bringing the expansion into an unprecedented eighth year. Inflation remained low, wages rose, consumer spending was strong, and the labor market remained tight. Further, the supply of consumer goods kept pace with demand, which helped the economic expansion remain balanced. Within the US equity market, the dominant investment trend in the first half of 1998 continued to be a "flight to quality." Investors stressed the importance of quality, liquidity, and safety. Consequently, the market remained "narrow," with demand for large-capitalization growth stocks far outpacing demand for their value counterparts, as well as for small-capitalization and mid-capitalization stocks. The market effectively became two-tiered, as the 30 largest companies in the S&P 500 accounted for more than half of its gains. Within the fixed-income markets, the Asian financial crisis began to favorably impact the bond market, as both foreign and domestic investors sought the safety and quality of US Treasury securities. This sent yields down and prices up. Further, the potential for slower economic growth, coupled with the Asian crisis, effectively caused the Federal Reserve Board to leave short-term interest rates unchanged in the first half of the year. The 30-year US Treasury bond yield finished the period at 5.63% on June 30, down from 5.92% on December 31, 1997. Looking ahead, while the Asian financial crisis only modestly affected the US economy in the first half of 1998, we believe its full impact is yet to come. This leads us to believe that the current benign business environment could become less stable. Some early warning economic indicators started flashing cautionary signals toward the end of the second quarter as the economy began to decelerate. US corporate profits were being pressured. Although the basic fundamental case remains positive, investor expectations, at least for the short term, seem to be on the high side. Internationally, the most important factor influencing the markets has been the Asian financial crisis. Thus far, events in the region have not impacted the global economy to the degree that was originally anticipated. Growth continues to be strong in Europe and in select emerging markets. Some industrialized nations have even derived unexpected benefits from the crisis in the form of less expensive imported goods. However, the Asian crisis is not over and, more important, Japan has experienced no economic growth this year -- though there is hope that the announced government stimulus package will be effective. Nonetheless, we believe the steps being taken by the governments should, in the long run, restore their countries' financial health, and that the economies and stock markets should return to growth in the longer term. Thank you for your continued interest in Trillium. We look forward to serving your investment needs in the many years to come. Respectfully, /s/ Ronald E. Beettam /s/ William C. Morris Ronald E. Beettam William C. Morris President Chairman Canada Life Insurance Company of America J. & W. Seligman & Co. Incorporated 1 CANADA LIFE OF AMERICA VARIABLE ANNUITY ACCOUNT 2 - ---------------------------------------------------------------------------- STATEMENT OF NET ASSETS (unaudited) June 30, 1998 - ----------------------------------------------------------------------------
CASH COMMON COMMUNICATIONS BOND CAPITAL MANAGEMENT STOCK AND INFORMATION FRONTIER SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------- ----------- ----------- ----------- ----------- ----------- NET ASSETS: Investment in Seligman Portfolios, Inc., at market value (see Note 3 for cost values)........................ $4,660,171 $17,650,679 $7,740,076 $39,022,162 $84,490,413 $38,292,847 Due to Canada Life Insurance Company of America (Note 6)......... (8,858) (37,358) (91,715) (80,863) (51,970) (80,363) ---------- ----------- ---------- ---------- ----------- ----------- NET ASSETS............................. $4,651,313 $17,613,321 $7,648,361 $38,941,299 $84,438,443 $38,292,847 ========== =========== ========== =========== =========== =========== NET ASSETS ATTRIBUTABLE TO: Policyholders' liability reserve....... $4,651,313 $17,613,321 $7,648,361 $38,941,299 $84,438,443 $38,212,484 ---------- ----------- ---------- ---------- ----------- ----------- NET ASSETS............................. $4,651,313 $17,613,321 $7,648,361 $38,941,299 $84,438,443 $38,212,484 ========== =========== ========== =========== =========== =========== NUMBER OF UNITS OUTSTANDING............ 276,231 505,357 5,375,570 1,058,190 4,116,619 1,837,121 ========== =========== ========== =========== =========== =========== NET ASSET VALUE PER UNIT............... $16.8385 $34.8532 $1.4228 $36.7999 $20.5116 $20.8002 ========== =========== ========== =========== =========== ===========
GLOBAL GLOBAL GROWTH SMALLER GLOBAL HIGH-YIELD OPPORTUNITIES COMPANIES TECHNOLOGY INTERNATIONAL BOND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------- ----------- ----------- ----------- ----------- ----------- NET ASSETS: Investment in Seligman Portfolios, Inc., at market value (see Note 3 for cost values)........................ $7,324,119 $22,305,160 $4,643,560 $10,160,494 $29,965,761 $9,041,763 Due to Canada Life Insurance Company of America (Note 6)......... (15,434) (46,148) (10,056) (21,092) (60,754) (18,265) ---------- ----------- ---------- ---------- ----------- ----------- NET ASSETS............................. $7,308,685 $22,259,012 $4,633,504 $10,139,402 $29,905,007 $9,023,498 ---------- ----------- ---------- ----------- ----------- ----------- NET ASSETS ATTRIBUTABLE TO: Policyholders' liability reserve....... $7,308,685 $22,259,012 $4,633,504 $10,139,402 $29,905,007 $9,023,498 ---------- ----------- ---------- ----------- ----------- ----------- NET ASSETS............................. $7,308,685 $22,259,012 $4,633,504 $10,139,402 $29,905,007 $9,023,498 ========== =========== ========== =========== =========== =========== NUMBER OF UNITS OUTSTANDING............ 566,837 1,361,782 316,960 623,169 2,093,748 400,966 ========== =========== ========== =========== =========== =========== NET ASSET VALUE PER UNIT............... $12.8938 $16.3455 $14.6186 $16.2707 $14.2830 $22.5044 ========== =========== ========== =========== =========== ===========
LARGE-CAP SMALL-CAP VALUE VALUE SUB-ACCOUNTS SUB-ACCOUNT SUB-ACCOUNT COMBINED ----------- ----------- ----------- NET ASSETS: Investment in Seligman Portfolios, Inc., at market value (see Note 3 for cost values)......................... $972,487 $846,595 $277,116,287 Due to Canada Life Insurance Company of America (Note 6)......... (7,131) (950) (530,957) -------- -------- ------------ NET ASSETS............................. $965,356 $845,645 $276,585,330 ======== ======== ============ NET ASSETS ATTRIBUTABLE TO: Policyholders' liability reserve....... $965,356 $845,645 $276,585,330 -------- -------- ------------ NET ASSETS............................. $965,356 $845,645 $276,585,330 ======== ======== ============ NUMBER OF UNITS OUTSTANDING............ 97,543 92,638 18,722,731 ======== ======== ============ NET ASSET VALUE PER UNIT............... $9.8967 $9.1285 ======== ========
- ---------------------- See accompanying notes. 2 ---------------------------------------------------------------------------- STATEMENT OF OPERATIONS (unaudited) For the Six Months Ended June 30, 1998 ----------------------------------------------------------------------------
CASH COMMON COMMUNICATIONS BOND CAPITAL MANAGEMENT STOCK AND INFORMATION FRONTIER SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------- ----------- ----------- ----------- ------------ ----------- NET INVESTMENT INCOME: Dividend and capital gain distributions.................. $ -- $ -- $213,363 $ -- $ -- $ -- Less mortality and expense risk charges (Note 6).................... 32,004 112,583 55,998 252,344 568,286 260,968 -------- ---------- -------- ---------- ---------- ---------- NET INVESTMENT INCOME (LOSS)........... (32,004) (112,583) 157,365 (252,344) (568,286) (260,968) -------- ---------- -------- ---------- ---------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments 16,646 528,909 -- 95,365 121,752 648,623 Net unrealized appreciation (depreciation) of investments...................... 163,273 1,575,246 -- 4,273,113 9,761,483 2,239,378 -------- ---------- -------- ---------- ---------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 179,919 2,104,155 -- 4,368,478 9,883,235 2,888,001 -------- ---------- -------- ---------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.... $147,915 $1,991,572 $157,365 $4,116,134 $9,314,949 $2,627,033 ======== ========== ======== ========== ========== ==========
GLOBAL GLOBAL GROWTH SMALLER GLOBAL HIGH-YIELD OPPORTUNITIES COMPANIES TECHNOLOGY INTERNATIONAL BOND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------- ----------- ----------- ----------- ----------- ----------- NET INVESTMENT INCOME: Dividend and capital gain distributions.................. $ -- $ -- $ -- $ -- $ -- $ -- Less mortality and expense risk charges (Note 6).................... 41,966 149,404 28,091 67,202 185,366 60,988 -------- ---------- -------- ---------- ---------- -------- NET INVESTMENT INCOME (LOSS)........... (41,966) (149,404) (28,091) (67,202) (185,366) (60,988) -------- ---------- -------- ---------- ---------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments 648,623 90,527 235,725 79,726 180,233 158,283 Net unrealized appreciation (depreciation) of investments. 865,912 2,866,912 642,364 1,386,090 1,292,467 446,877 -------- ---------- -------- ---------- ---------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 956,439 3,102,637 722,090 1,566,323 1,450,750 464,191 -------- ---------- -------- ---------- ---------- -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS... $914,473 $2,953,233 $693,999 $1,499,121 $1,265,384 $403,203 ======== ========== ======== ========== ========== ========
LARGE-CAP SMALL-CAP VALUE VALUE SUB-ACCOUNTS SUB-ACCOUNT SUB-ACCOUNT COMBINED ----------- ----------- ----------- NET INVESTMENT INCOME: Dividend and capital gain distributions.................. $ -- $ -- $ 213,363 Less mortality and expense risk charges (Note 6).................... 1,120 1,000 1,817,320 ------- -------- ----------- NET INVESTMENT INCOME (LOSS)........... (1,120) (1,000) (1,603,957) ------- -------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments 9 (509) 2,172,603 Net unrealized appreciation (depreciation) of investments...................... (3,652) (34,322) 25,475,141 ------- -------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (3,643) (34,831) 27,647,744 ------- -------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.... $(4,763) $(35,831) $26,043,787 ======= ======== ===========
- -------------------------------------------------------------------------------- * For the period May 1, 1998 (commencement of operations) to June 30, 1998. See accompanying notes. 3 CANADA LIFE OF AMERICA VARIABLE ANNUITY ACCOUNT 2 - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
BOND CAPITAL CASH MANAGEMENT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- ------------------------- ------------------------ SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97 --------- --------- --------- --------- --------- --------- OPERATIONS: Net investment income (loss)........ $ (32,004) $ 194,351 $ (112,583) $ 798,930 $ 157,365 $ 304,525 Net realized gain (loss) on investments .................. 16,646 8,066 528,909 458,289 -- -- Net unrealized appreciation/ depreciation of investments...... 163,273 66,018 1,575,246 899,608 -- -- ---------- ---------- ----------- ----------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........ 147,915 268,435 1,991,572 2,156,827 157,365 304,525 ---------- ---------- ----------- ----------- ---------- ---------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)....... (450,541) 2,029,015 635,839 3,428,077 107,429 (1,162,636) ---------- ---------- ----------- ----------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS ARISING FROM CAPITAL TRANSACTIONS............. (450,541) 2,029,015 635,839 3,428,077 107,429 (1,162,636) ---------- ---------- ----------- ----------- ---------- ---------- TOTAL INCREASE (DECREASE) IN NET ASSETS.................... (302,626) 2,297,450 2,627,411 5,584,904 264,794 (858,111) Net Assets, Beginning of Period..... 4,953,939 2,656,489 14,985,910 9,401,006 7,383,567 8,241,678 ---------- ---------- ----------- ----------- ---------- ---------- NET ASSETS, END OF PERIOD........... $4,651,313 $4,953,939 $17,613,321 $14,985,910 $7,648,361 $7,383,567 ========== ========== =========== =========== ========== ==========
COMMUNICATIONS AND COMMON STOCK INFORMATION SUB-ACCOUNT SUB-ACCOUNT ----------------------- --------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 ---------- ---------- ---------- ---------- OPERATIONS: Net investment income (loss)........ $ (252,344) $ 4,565,796 $ (568,286) $17,976,778 Net realized gain (loss) on investments .................. 95,365 488,619 121,752 2,491,942 Net unrealized appreciation/ depreciation of investments...... 4,273,113 (535,131) 9,761,483 (8,926,535) ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........ 4,116,134 4,519,284 9,314,949 11,542,185 ----------- ----------- ----------- ----------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)....... 2,316,972 7,593,933 1,123,546 8,108,126 ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS ARISING FROM CAPITAL TRANSACTIONS............. 2,316,972 7,593,933 1,123,546 8,108,126 ----------- ----------- ----------- ----------- TOTAL INCREASE (DECREASE) IN NET ASSETS.................... 6,433,106 12,113,217 10,438,495 19,650,311 Net Assets, Beginning of Period..... 32,508,193 20,394,976 73,999,948 54,349,637 ----------- ----------- ----------- ----------- NET ASSETS, END OF PERIOD........... $38,941,299 $32,508,193 $84,438,443 $73,999,948 =========== =========== =========== ===========
GLOBAL GROWTH FRONTIER OPPORTUNITIES SUB-ACCOUNT SUB-ACCOUNT ----------------------- ------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 ---------- ---------- --------- ---------- OPERATIONS: Net investment income (loss)........ $ (260,968) $ 2,671,617 $ (41,966) $ 2,289 Net realized gain (loss) on investments .................. 648,623 878,611 90,527 77,328 Net unrealized appreciation/ depreciation of investments...... 2,239,378 500,110 865,912 153,700 ----------- ----------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........ 2,627,033 4,050,338 914,473 233,317 ----------- ----------- ---------- ---------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)....... 697,326 4,928,379 1,634,854 3,233,258 ----------- ----------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS ARISING FROM CAPITAL TRANSACTIONS............. 697,326 4,928,379 1,634,854 3,233,258 ----------- ----------- ---------- ---------- TOTAL INCREASE (DECREASE) IN NET ASSETS.................... 3,324,359 8,978,717 2,549,327 3,466,575 Net Assets, Beginning of Period..... 34,888,125 25,909,408 4,759,358 1,292,783 ----------- ----------- ---------- ---------- NET ASSETS, END OF PERIOD........... $38,212,484 $34,888,125 $7,308,685 $4,759,358 =========== =========== ========== ==========
4
GLOBAL SMALLER GLOBAL COMPANIES TECHNOLOGY INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ ------------------------ ------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97 --------- --------- --------- --------- --------- --------- OPERATIONS: Net investment income (loss)........ $ (149,404) $ 180,288 $ (28,091) $ 412,115 $ (67,202) $ 179,009 Net realized gain (loss) on investments .................. 235,725 265,007 79,726 190,061 180,233 251,193 Net unrealized appreciation/ depreciation of investments...... 2,866,912 (90,117) 642,364 (324,750) 1,386,090 73,912 ----------- ----------- ---------- ---------- ----------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........ 2,953,233 355,178 693,999 277,426 1,499,121 504,114 ----------- ----------- ---------- ---------- ----------- ---------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)....... (245,526) 2,874,836 646,005 1,899,573 (165,176) 1,173,767 ----------- ----------- ---------- ---------- ----------- ---------- NET INCREASE (DECREASE) IN NET ASSETS ARISING FROM CAPITAL TRANSACTIONS............. (245,526) 2,874,836 646,005 1,899,573 (165,176) 1,173,767 ----------- ----------- ---------- ---------- ----------- ---------- TOTAL INCREASE IN NET ASSETS........ 2,707,707 3,230,014 1,340,004 2,176,999 1,333,945 1,677,881 Net Assets, Beginning of Period..... 19,551,305 16,321,291 3,293,500 1,116,501 8,805,457 7,127,576 ----------- ----------- ---------- ---------- ----------- ---------- NET ASSETS, END OF PERIOD........... $22,259,012 $19,551,305 $4,633,504 $3,293,500 $10,139,402 $8,805,457 =========== =========== ========== ========== =========== ==========
- ----------------------------- * Commencement of operations. See accompanying notes.
HIGH-YIELD BOND INCOME SUB-ACCOUNT SUB-ACCOUNT ------------------------ ------------------------ SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR 6/30/98 ENDED 6/30/98 ENDED (unaudited) 12/31/97 (unaudited) 12/31/97 --------- --------- --------- --------- OPERATIONS: Net investment income (loss)........ $ (185,366) $ 1,492,267 $ (60,988) $ 690,186 Net realized gain (loss) on investments .................. 158,283 390,673 17,314 77,550 Net unrealized appreciation/ depreciation of investments...... 1,292,467 176,658 446,877 165,357 ----------- ----------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........ 1,265,384 2,059,598 403,203 933,093 ----------- ----------- ---------- ---------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)....... 5,923,800 9,388,102 339,766 (747,332) ----------- ----------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS ARISING FROM CAPITAL TRANSACTIONS............. 5,923,800 9,388,102 339,766 (747,332) ----------- ----------- ---------- ---------- TOTAL INCREASE IN NET ASSETS........ 7,189,184 11,447,700 742,969 185,761 Net Assets, Beginning of Period..... 22,715,823 11,268,123 8,280,529 8,094,768 ----------- ----------- ---------- ---------- NET ASSETS, END OF PERIOD........... $29,905,007 $22,715,823 $9,023,498 $8,280,529 =========== =========== ========== ==========
LARGE-CAP SMALL-CAP VALUE VALUE SUB-ACCOUNTS SUB-ACCOUNT SUB-ACCOUNT COMBINED ------------ ----------- -------------------------- 5/1/98* 5/1/98* SIX MONTHS TO TO ENDED YEAR 6/30/98 6/30/98 6/30/98 ENDED (unaudited) (unaudited) (unaudited) 12/31/97 ----------- ----------- ----------- ---------- OPERATIONS: Net investment income (loss)........ $ (1,120) $ (1,000) $ (1,603,957) $ 29,468,151 Net realized gain (loss) on investments .................. 9 (509) 2,172,603 5,577,339 Net unrealized appreciation/ depreciation of investments...... (3,652) (34,322) 25,475,141 (7,841,170) --------- -------- ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........ (4,763) (35,831) 26,043,787 27,204,320 --------- -------- ------------ ------------ CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)....... 970,119 881,476 14,415,889 42,747,098 --------- -------- ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS ARISING FROM CAPITAL TRANSACTIONS............. 970,119 881,476 14,415,889 42,747,098 --------- -------- ------------ ------------ TOTAL INCREASE IN NET ASSETS........ 965,356 845,645 40,459,676 69,951,418 Net Assets, Beginning of Period..... -- -- 236,125,654 166,174,236 --------- -------- ------------ ------------ NET ASSETS, END OF PERIOD........... $965,356 $845,645 $276,585,330 $236,125,654 ========= ======== ============ ============
5 CANADA LIFE OF AMERICA VARIABLE ANNUITY ACCOUNT 2 - ----------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (unaudited) - ----------------------------------------------------------------------------- 1. ORGANIZATION Canada Life of America Variable Annuity Account 2 ("Variable Annuity Account 2") was established on February 26, 1993, as a separate investment account of Canada Life Insurance Company of America ("CLICA") to receive and invest premium payments under variable annuity policies issued by CLICA. Variable Annuity Account 2 is registered as a unit investment trust under the Investment Company Act of 1940, as amended. The assets of Variable Annuity Account 2 are invested in the shares of Seligman Portfolios, Inc. (the "Fund"), a diversified, open-end, management investment company. Variable Annuity Account 2 has fourteen sub-accounts, each of which invests only in the shares of the corresponding portfolio of the Fund. The assets of Variable Annuity Account 2 are the property of CLICA. The portion of Variable Annuity Account 2 assets applicable to the policies will not be charged with liabilities arising out of any other business CLICA may conduct. 2. SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS Investments in shares of the Fund are valued at the reported net asset values of the respective portfolios. Realized gains and losses are computed on the basis of average cost. The difference between cost and current market value of investments owned is recorded as an unrealized gain or loss on investments. DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS Dividends and capital gain distributions are recorded on the ex-dividend date and reflect the dividends declared by the Fund from their accumulated net investment income and net realized investment gains. Except for the Cash Management Portfolio, whose dividends are declared daily and paid monthly, dividends and capital gain distributions are declared and paid annually. Dividends and capital gain distributions paid to the Variable Annuity Account 2 are reinvested in additional shares of the respective portfolio of the Fund at the net asset value per share. FEDERAL INCOME TAXES Variable Annuity Account 2 is not taxed separately because the operations of Variable Annuity Account 2 will be included in the federal income tax return of CLICA, which is taxed as a "life insurance company" under the provisions of the Internal Revenue Code. 3. INVESTMENTS The investment by Variable Annuity Account 2 in the individual portfolios of the Fund at June 30, 1998, is as follows:
NUMBER OF SHARES MARKET PRICE MARKET VALUE COST --------------- ----------- ----------- ----------- Bond 438,398 $10.63 $ 4,660,171 $ 4,514,148 Capital 855,998 20.62 17,650,679 15,079,457 Cash Management 7,740,076 1.00 7,740,076 7,740,076 Common Stock 2,118,467 18.42 39,022,162 35,967,186 Communications and Information 5,704,957 14.01 84,490,413 81,762,812 Frontier 2,238,039 17.11 38,292,047 34,724,211 Global Growth Opportunities 556,544 13.16 7,324,119 6,294,381 Global Smaller Companies 1,479,122 15.08 22,305,160 19,439,803 Global Technology 360,805 12.87 4,643,560 4,271,453 International 635,428 15.99 10,160,494 8,376,816 High-Yield Bond 2,385,809 12.56 29,965,761 28,411,735 Income 792,442 11.41 9,041,763 8,722,310 Large-Cap Value 98,033 9.92 972,487 976,139 Small-Cap Value 92,524 9.15 846,595 880,917 ------------ ------------ $277,116,287 $257,161,444 ============ ============
4. SECURITY PURCHASES AND SALES The aggregate cost of purchases and the proceeds from sales of investments are presented below:
AGGREGATE COST OF PURCHASES PROCEEDS FROM SALES --------------------------- ------------------- Bond $ 950,748 $ 1,452,502 Capital 5,696,172 5,133,208 Cash Management 11,595,877 11,147,007 Common Stock 5,111,273 2,869,539 Communications and Information 10,118,146 9,191,201 Frontier 6,917,273 6,097,500 Global Growth Opportunities 2,457,108 663,646 Global Smaller Companies 2,208,997 2,517,361 Global Technology 2,186,081 1,506,602 International 1,056,771 1,190,470 High-Yield Bond 2,536,273 3,498,603 Income 1,028,238 732,430 Large-Cap Value 983,201 7,071 Small-Cap Value 896,080 14,654 ----------- ----------- $60,742,238 $46,021,794 =========== ===========
6 CANADA LIFE OF AMERICA VARIABLE ANNUITY ACCOUNT 2 5. SUMMARY OF CHANGES FROM UNIT TRANSACTIONS The following table represents a summary of changes from unit transactions attributable to contract holders for the periods indicated. The Large-Cap Value and Small-Cap Value Sub-Accounts commenced operations on May 1, 1998.
SIX MONTHS ENDED JUNE 30, 1998 YEAR ENDED DECEMBER 31, 1997 ------------------------------- ------------------------------ UNITS AMOUNT UNITS AMOUNT ---------- ---------- ---------- ---------- BOND SUB-ACCOUNT Accumulation Units: Contract purchases and net transfers in 115,433 $ 1,897,761 261,683 $ 4,117,039 Terminated contracts and net transfers out (142,498) (2,348,302) (132,913) (2,088,024) ---------- ---------- ---------- ----------- (27,065) (450,541) 128,770 2,029,015 ---------- ---------- ---------- ----------- CAPITAL SUB-ACCOUNT Accumulation Units: Contract purchases and net transfers in 212,453 6,946,981 304,990 8,703,658 Terminated contracts and net transfers out (193,541) (6,311,142) (183,032) (5,275,581) ---------- ---------- ---------- ---------- 18,912 635,839 121,958 3,428,077 ---------- ---------- ---------- ---------- CASH MANAGEMENT SUB-ACCOUNT Accumulation Units: Contract purchases and net transfers in 11,740,921 16,544,830 28,517,454 39,834,422 Terminated contracts and net transfers out (11,657,093) (16,437,401) (29,363,850) (40,997,058) ---------- ---------- ---------- ---------- 83,828 107,429 (846,396) (1,162,636) ---------- ---------- ---------- ---------- COMMON STOCK SUB-ACCOUNT Accumulation Units: Contract purchases and net transfers in 229,934 8,094,647 511,179 15,875,524 Terminated contracts and net transfers out (164,324) (5,777,675) (262,447) (8,281,591) ---------- ---------- ---------- ---------- 65,610 2,316,972 248,732 7,593,933 ---------- ---------- ---------- ---------- COMMUNICATIONS AND INFORMATION SUB-ACCOUNT Accumulation Units: Contract purchases and net transfers in 635,573 12,665,414 1,120,831 31,154,764 Terminated contracts and net transfers out (572,435) (11,541,868) (650,150) (23,046,638) ---------- ---------- ---------- ---------- 63,138 1,123,546 470,681 8,108,126 ---------- ---------- ---------- ---------- FRONTIER SUB-ACCOUNT Accumulation Units: Contract purchases and net transfers in 452,899 9,616,397 1,123,395 17,074,867 Terminated contracts and net transfers out (421,853) (8,919,071) (853,657) (12,146,488) ---------- ---------- ---------- ---------- 31,046 697,326 269,738 4,928,379 ---------- ---------- ---------- ---------- GLOBAL GROWTH OPPORTUNITIES SUB-ACCOUNT Accumulation Units: Contract purchases and net transfers in 311,204 3,855,415 482,602 5,012,445 Terminated contracts and net transfers out (181,724) (2,220,561) (176,920) (1,779,187) ---------- ---------- ---------- ---------- 129,480 1,634,854 305,682 3,233,258 ---------- ---------- ---------- ---------- GLOBAL SMALLER COMPANIES SUB-ACCOUNT Accumulation Units: Contract purchases and net transfers in 259,008 4,060,967 992,939 8,591,113 Terminated contracts and net transfers out (277,256) (4,306,493) (786,157) (5,716,277) ---------- ---------- ---------- ---------- (18,248) (245,526) 206,782 2,874,836 ---------- ---------- ---------- ---------- GLOBAL TECHNOLOGY SUB-ACCOUNT Accumulation Units: Contract purchases and net transfers in 192,778 2,713,764 332,006 3,909,248 Terminated contracts and net transfers out (147,725) (2,067,759) (168,582) (2,009,675) ---------- ---------- ---------- ---------- 45,053 646,005 163,424 1,899,573 ---------- ---------- ---------- ---------- INTERNATIONAL SUB-ACCOUNT Accumulation Units: Contract purchases and net transfers in 120,393 1,868,402 107,800 4,319,259 Terminated contracts and net transfers out (131,916) (2,033,578) (21,223) (3,145,492) ---------- ---------- ---------- ---------- (11,523) (165,176) 86,577 1,173,767 ---------- ---------- ---------- ----------
7 ------------------------------------------------------------------------- CANADA LIFE OF AMERICA VARIABLE ANNUITY ACCOUNT 2 ------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
SIX MONTHS ENDED JUNE 30, 1998 YEAR ENDED DECEMBER 31, 1997 ------------------------------- ------------------------------ UNITS AMOUNT UNITS AMOUNT ---------- ---------- ---------- ---------- HIGH-YIELD BOND SUB-ACCOUNT Accumulation Units: Contract purchases and net transfers in 766,442 $10,767,736 1,917,673 $19,330,600 Terminated contracts and net transfers out (343,909) (4,843,936) (1,185,914) (9,942,498) ---------- ---------- ---------- ---------- 422,533 5,923,800 731,759 9,388,102 ---------- ---------- ---------- ---------- INCOME SUB-ACCOUNT Accumulation Units: Contract purchases and net transfers in 68,152 1,509,286 156,332 3,156,221 Terminated contracts and net transfers out (53,228) (1,169,520) (193,980) (3,903,553) ---------- ---------- ---------- ---------- 14,924 339,766 (37,648) (747,332) ---------- ---------- ---------- ---------- LARGE-CAP VALUE SUB-ACCOUNT* Accumulation Units: Contract purchases and net transfers in 98,246 977,158 Terminated contracts and net transfers out (703) (7,039) ---------- ---------- 97,543 970,119 ---------- ---------- SMALL-CAP VALUE SUB-ACCOUNT* Accumulation Units: Contract purchases and net transfers in 93,514 889,993 Terminated contracts and net transfers out (876) (8,517) ---------- ----------- 92,638 881,476 ---------- ----------- Net increase from unit transactions $14,415,889 $42,747,098 =========== ===========
- ------------------ * From commencement of operations. 6. MORTALITY AND EXPENSE RISK (M AND E) CHARGES CLICA assumes mortality and expense risks related to the operations of Variable Annuity Account 2 and deducts a charge equal to an effective annual rate of 1.25% of the net asset value of each Sub-Account at each valuation period. In addition, at each valuation period an effective annual rate of 0.15% of the net asset value of each Sub-Account is deducted as daily administration fees. 7. NET ASSETS Net assets at June 30, 1998, consisted of the following:
NET ACCUMULATED NET UNREALIZED INVESTMENT REALIZED APPRECIATION ACCUMULATED INCOME GAIN (LOSS) (DEPRECIATION) COMBINED UNIT M AND E AND CAPITAL ON OF NET SUB-ACCOUNT TRANSACTIONS CHARGES GAINS INVESTMENTS INVESTMENTS ASSETS - ------------ ------------ ------------ ------------ ------------ ------------ ---------- Bond $ 4,071,059 $ (141,921) $ 551,480 $ 34,664 $ 146,023 $ 4,651,313 Capital 12,376,755 (468,100) 2,010,505 1,122,939 2,571,222 17,613,321 Cash Management 6,860,955 (403,123) 1,190,529 -- -- 7,648,361 Common Stock 26,817,796 (964,824) 9,237,074 796,277 3,054,976 38,941,299 Communications and Information 61,173,056 (2,481,645) 21,311,676 1,707,755 2,727,601 84,438,443 Frontier 27,480,885 (1,033,162) 6,306,959 1,889,166 3,568,636 38,212,484 Global Growth Opportunities 6,152,994 (95,298) 52,198 169,053 1,029,738 7,308,685 Global Smaller Companies 17,527,177 (607,885) 1,772,811 701,552 2,865,357 22,259,012 Global Technology 3,603,000 (70,385) 455,101 273,681 372,107 4,633,504 International 7,541,212 (311,734) 575,495 550,751 1,783,678 10,139,402 High-Yield Bond 25,648,921 (568,082) 2,569,531 700,611 1,554,026 29,905,007 Income 6,992,819 (354,159) 1,995,271 70,114 319,453 9,023,498 Large-Cap Value 970,119 (1,120) -- 9 (3,652) 965,356 Small-Cap Value 881,476 (1,000) -- (509) (34,322) 845,645 ------------ ----------- ----------- ---------- ----------- ------------ $208,098,224 $(7,502,438) $48,028,638 $8,006,063 $19,954,843 $276,585,330 ============ =========== =========== ========== =========== ============
8. UNIT VALUES Unit Values as reported are calculated by dividing total net assets by total units for each Sub-Account. 8 The attached are incorporated by reference herein to the semi-annual reports filed by and on behalf of the following: Seligman Portfolios, Inc., filed August 28, 1998 Portfolios which include: Seligman Capital; Seligman Cash Management; Seligman Common Stock; Seligman Bond; Seligman Income; Seligman Henderson International; Seligman Communications and Information; Seligman Frontier; Seligman Henderson Global Smaller Companies; Seligman High-Yield Bond; Seligman Henderson Global Technology; Seligman Henderson Global Growth Opportunities; Seligman Large-Cap, Seligman Small-Cap [TRILLIUM LOGO APPEARS HERE] VARIABLE ACCOUNT 2 PERFORMANCE ------------------------------ Average Annual Total Returns for Periods Ending June 30, 1998 Assuming Contract Continues
Year- Since Inception PORTFOLIOS to-Date* 1 Year 3 Year 5 Year 10 Year Inception Date - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO 12.32% 26.39% 12.16% -- -- 21.11% 10/4/94 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO 20.65 31.37 -- -- -- 19.10 5/1/96 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO 7.64 13.06 19.66 -- -- 21.55 10/4/94 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN SMALL-CAP VALUE PORTFOLIO (NEW PORTFOLIO) (8.72)* 5/1/98 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO 15.33 7.95 14.88 -- -- 13.97 10/4/94 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO 13.09 24.74 19.42 14.02% 13.26% -- 6/21/88 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO 18.45 16.42 -- -- -- 12.39 5/1/96 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO (NEW PORTFOLIO) (1.03)* 5/1/98 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO 12.32 18.58 20.60 15.73 13.88 -- 6/21/88 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO 17.24 10.21 12.71 10.81 -- 9.82 5/3/93 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO 4.88 10.75 9.29 6.35 8.40 -- 6/21/88 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO 5.04 13.36 12.48 -- -- 11.84 5/1/95 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN BOND PORTFOLIO 3.24 8.87 5.20 4.34 5.32 -- 6/21/88 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN CASH MANAGEMENT PORTFOLIO 1.93 3.91 3.79 3.10 3.54 -- 6/21/88 - -----------------------------------------------------------------------------------------------------------------------------------
* Not annualized. SELIGMAN CASH MANAGEMENT PORTFOLIO'S current yield, annualized for the seven-day period ending June 30, 1998, was 3.94%. TRILLIUM FIXED ACCOUNT'S rate for the one year Guarantee Period was 4.50% as of June 30, 1998. Rates for each Guarantee Period will be different, and are subject to change on a monthly basis. The 3, 5, 7, and 10 year Guarantee Periods are currently not approved in all states. Please call 800-221-2783 for state approval and the current rates on these Guarantee Periods. Performance quoted represents past performance, and the investment return and principal value of an investment will fluctuate so that units, when surrendered, may be worth more or less than their original cost. Performance of the variable portfolios reflects the performance of Seligman Portfolios, Inc., the underlying investment vehicle for the Trillium Variable Account, adjusted for the current fees and charges (excluding CDSC) associated with Trillium. For performance figures with CDSC, please see reverse side. The variable account commenced operations on 5/3/93. The fixed account is held in the general account of Canada Life Insurance Company of America (CLICA) and provides a guarantee, by CLICA, against loss of principal, and guarantees payment of a specified current rate of interest. Please contact your financial advisor or call Seligman Financial Services at 800-221-2783 for a prospectus containing full details including information on fees and charges. Please read the prospectus carefully before investing or sending money. There are specific risks associated with global technology investing, such as currency fluctuations, foreign taxation, differences in financial reporting practices, and changes in political conditions. A portfolio that concentrates its investments in one sector of the economy may be subject to greater share price fluctuations than a more diversified portfolio. There are specific risks associated with global investing, such as currency fluctuations, foreign taxation, differences in financial reporting practices, and changes in political conditions. A portfolio with fewer holdings may be subject to greater volatility than a portfolio with a greater number of holdings. The securities in which the Seligman High-Yield Bond Portfolio invests are subject to a greater risk of loss of principal and interest than higher-rated investment grade bonds. Purchasers should carefully assess the risks associated with an investment in the portfolio. VARIABLE ACCOUNT PERFORMANCE ---------------------------- Average Annual Total Returns for Periods Ending June 30, 1998 Assuming Contract Is Surrendered at end of Period
Since Inception 1 YEAR 3 YEAR 5 YEAR 10 YEAR Inception Date - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN COMMUNICATIONS AND INFORMATION PORTFOLIO 20.99% 10.95% -- -- 20.39% 10/4/94 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO 25.97 -- -- -- 17.39 5/1/96 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN FRONTIER PORTFOLIO 7.66 18.60 -- -- 20.83 10/4/94 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN SMALL-CAP VALUE PORTFOLIO (NEW PORTFOLIO) (14.13)* 5/1/98 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL SMALLER COMPANIES PORTFOLIO 2.55 13.74 -- -- 13.12 10/4/94 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN CAPITAL PORTFOLIO 19.34 18.35 13.70% 13.26% -- 6/21/88 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN HENDERSON GLOBAL GROWTH OPPORTUNITIES PORTFOLIO 11.02 -- -- -- 10.55 5/1/96 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN LARGE-CAP VALUE PORTFOLIO (NEW PORTFOLIO) (6.45)* 5/1/98 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN COMMON STOCK PORTFOLIO 13.18 19.56 15.43 13.88 -- 6/21/88 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO 4.81 11.51 9.81 -- 9.47 5/3/93 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN INCOME PORTFOLIO 5.35 8.02 5.92 8.40 -- 6/21/88 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN HIGH-YIELD BOND PORTFOLIO 7.96 11.28 -- -- 10.72 5/1/95 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN BOND PORTFOLIO 3.47 3.83 3.88 5.32 -- 6/21/88 - ----------------------------------------------------------------------------------------------------------------------------------- SELIGMAN CASH MANAGEMENT PORTFOLIO (1.49) 2.37 2.62 3.54 -- 6/21/88 - -----------------------------------------------------------------------------------------------------------------------------------
* Not annualized Issued by: Canada LIfe Insurance Company of America, 6201 Powers Ferry Road, N.W., Atlanta, GA 30339 Distributed by: Seligman Financial Services, Inc., 100 Park Avenue, New York, NY 10017 . (800) 221-2783 SELIGMAN CASH MANAGEMENT PORTFOLIO'S current yield, annualized for the seven-day period ending June 30, 1998, was 3.94%. TRILLIUM FIXED ACCOUNT'S rate for the one year Guarantee Period was 4.50% as of June 30, 1998. Rates for each Guarantee Period will be different, and are subject to change on a monthly basis. The 3, 5, 7, and 10 year Guarantee Periods are currently not approved in all states. Please call 800-221-2783 for state approval and the current rates on these Guarantee Periods. Performance quoted represents past performance and the investment return and principal value of an investment will fluctuate so that units, when surrendered, may be worth more or less than their original cost. Performance of the variable portfolios reflects the performance of Seligman Portfolios, Inc., the underlying investment vehicle for the Trillium Variable Account, and is adjusted for Trillium's current fees and charges including the maximum CDSC of 6%. Trillium's CDSC for current premiums (premiums paid during the current and previous six policy years) starts at 6% and decreases in steps, depending on the number of policy years since the premium was paid, as follows: less than two years, 6%; at least two, but less than four, 5%; at least four, but less than five, 4%; at least five, but less than six, 3% at least six, but less than seven, 2%; at least seven, no charge. The variable account commenced operations on 5/3/93. The fixed account is held in the general account of Canada Life Insurance Company of America (CLICA) and provides a guarantee by CLICA against loss of principal, and guarantees payment of specified current rate of interest. Please contact your financial advisor or call Seligman Financial Service at 800-221-2763 for a prospectus containing full details including information on fees and charges. Please read the prospectus carefully before investing or sending money. -----END PRIVACY-ENHANCED MESSAGE-----