-----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, UfS5YjaRJUlpGHMtH+5fiyMudjM5/ISGkJ/eSqWGTIwXbq87HC8zqQjeeIMNLpRG OfLBWPKNwVOMVKMa9yhNjA== 0001021408-99-000444.txt : 19990311 0001021408-99-000444.hdr.sgml : 19990311 ACCESSION NUMBER: 0001021408-99-000444 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990310 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: 99562290 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 CANADA LIFE OF AMERICA - TRILLIUM [LETTERHEAD OF CANADA LIFE INSURANCE COMPANY OF AMERICA APPEARS HERE] February, 1999 Dear Trillium(R) Policyholder: Enclosed for your review is the Trillium Annual Report for the period ending December 31, 1998. We encourage you to review this information and refer to it as needed throughout the year. Thank you for selecting Trillium for your financial needs. Sincerely, /s/ Ronald E. Beettam Ronald E. Beettam Encl. [LETTERHEAD OF CANADA LIFE INSURANCE COMPANY OF AMERICA APPEARS HERE] TRILLIUM(R) A Variable Annuity ADDITIONAL PREMIUM PAYMENT FORM Please complete the following information: OWNER:_______________________ AMOUNT OF PREMIUM PAYMENT: ANNUITANT:___________________ $____________ POLICY NO.:__________________ OWNER'S SSN/TIN:_____________ IF YOU ARE CHANGING ALLOCATION PLEASE COMPLETE THE FOLLOWING: ________ THIS PAYMENT ONLY ________ THIS PAYMENT AND ALL FUTURE PYMTS ________ RE-ALLOCATE ALL CURRENT ASSETS
CASH MGMT (21) ___% INCOME (22) ___% SMALL-CAP VALUE (44) ___% BOND (23) ___% COM STOCK (24) ___% LARGE-CAP VALUE (45) ___% CAPITAL (25) ___% INTERNATIONAL (26) ___% COMM & INFO (27) ___% GBL GROWTH OPP (28) ___% GBL SMLR CO (29) ___% FRONTIER (41) ___% HIGH YLD BOND (42) ___% GLOBAL TECH (43) ___%
- ------------------------------------------------------------------------------------------------------ FIXED ACCOUNT OPTIONS* ___% 1 Yr. (002) ___% 3 Yr. (303) ___% 5 Yr. (305) ___% 7 Yr. (307) ___% 10 Yr. (310) *The Fixed Accounts and/or the Guarantee Periods may not be available in all states. - ------------------------------------------------------------------------------------------------------
Total allocation must equal 100% OWNER'S SIGNATURE _______________________ DATE _______________ JOINT OWNER'S SIGNATURE _______________________ DATE _______________ PLEASE MAKE CHECKS PAYABLE TO CANADA LIFE INSURANCE COMPANY OF AMERICA INFORMATION FOR QUALIFIED POLICY CONTRIBUTIONS (THIS SECTION MUST BE COMPLETED) IS THIS A ROLLOVER? _____YES _____NO IF YES, WHAT TYPE? _____________________ PLEASE NOTE: CONTRIBUTIONS FOR PRIOR TAX YEAR CANNOT BE MADE CONTRIBUTION $___________ FOR __________ AFTER APRIL 15TH OF THE CURRENT TAX YEAR. CONTRIBUTION $___________ FOR __________ PLEASE DIRECT ANY QUESTIONS REGARDING YOUR POLICY TO YOUR REGISTERED REPRESENTATIVE OR TO OUR VARIABLE ANNUITY DEPARTMENT AT (800) 905-1959. OUR VARIABLE ANNUITY ADMINISTRATORS CAN NOT ADVISE YOU ON THE SUITABILITY OF YOUR PAYMENT. PLEASE CONTACT YOUR REGISTERED REPRESENTATIVE TO DISCUSS SUITABILITY ISSUES PRIOR TO SUBMITTING YOUR ADDITIONAL PREMIUM PAYMENT. Variable Annuities are issued by Canada Life Insurance Company of America and offered through its subsidiary, Canada Life of America Financial Services, Inc. (member NASD). TRILLIUM A VARIABLE ANNUITY VARIABLE ACCOUNT PERFORMANCE ---------------------------- Average Annual Total Returns for Periods Ending December 31, 1998 Assuming Contract Continues
Since Inception 1 Year 3 Year 5 Year 10 Year Inception Date - ------------------------------------------------------------------------------------------------------------------------- Seligman Communications and Information Portfolio 34.50% 20.08% -- -- 23.53% 10/4/94 - ------------------------------------------------------------------------------------------------------------------------- Seligman Henderson Global Technology Portfolio 34.81 -- -- -- 20.13 5/1/96 - ------------------------------------------------------------------------------------------------------------------------- Seligman Frontier Portfolio (2.90) 10.65 -- -- 15.91 10/4/94 - ------------------------------------------------------------------------------------------------------------------------- Seligman Small-Cap Value Portfolio (new portfolio) (17.83)* 5/1/98 - ------------------------------------------------------------------------------------------------------------------------- Seligman Henderson Global Smaller Companies Portfolio 5.02 7.64 -- -- 9.77 10/4/94 - ------------------------------------------------------------------------------------------------------------------------- Seligman Capital Portfolio 20.41 17.42 13.54% 14.00% 13.20 6/21/88 - ------------------------------------------------------------------------------------------------------------------------- Seligman Henderson Global Growth Opportunities Portfolio 19.82 -- -- -- 10.41 5/1/96 - ------------------------------------------------------------------------------------------------------------------------- Seligman Large-Cap Value Portfolio (new portfolio) (1.25)* 5/1/98 - ------------------------------------------------------------------------------------------------------------------------- Seligman Common Stock Portfolio 22.35 19.93 16.37 14.75 14.04 6/21/88 - ------------------------------------------------------------------------------------------------------------------------- Seligman Henderson International Portfolio 14.12 8.61 6.86 -- 8.39 5/3/93 - ------------------------------------------------------------------------------------------------------------------------- Seligman Income Portfolio 6.18 7.67 6.00 8.51 8.08 6/21/88 - ------------------------------------------------------------------------------------------------------------------------- Seligman High-Yield Bond Portfolio (0.46) 8.31 -- -- 8.53 5/1/95 - ------------------------------------------------------------------------------------------------------------------------- Seligman Bond Portfolio 6.62 4.01 4.64 5.53 5.35 6/21/88 - ------------------------------------------------------------------------------------------------------------------------- Seligman Cash Management Portfolio 3.89 3.79 3.44 3.58 3.53 6/21/88 - ------------------------------------------------------------------------------------------------------------------------- *Not annualized.
Seligman Cash Management Portfolio's current yield, annualized for the seven-day period ending December 31, 1998, was 3.31%. Trillium Fixed Account's rate for the one year Guarantee Period was 4.50% as of December 31, 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 Advisors 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. 4 VARIABLE ACCOUNT PERFORMANCE ---------------------------- Average Annual Total Returns for Periods Ending December 31, 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 29.10% 19.03% -- -- 23.10% 10/4/94 - ----------------------------------------------------------------------------------------------------------------------- Seligman Henderson Global Technology Portfolio 29.41 -- -- -- 18.88 5/1/96 - ----------------------------------------------------------------------------------------------------------------------- Seligman Frontier Portfolio (8.30) 9.41 -- -- 15.38 10/4/94 - ----------------------------------------------------------------------------------------------------------------------- Seligman Small-Cap Value Portfolio (new portfolio) (23.23)* 5/1/98 - ----------------------------------------------------------------------------------------------------------------------- Seligman Henderson Global Smaller Companies Portfolio (0.38) 6.33 -- -- 9.13 10/4/94 - ----------------------------------------------------------------------------------------------------------------------- Seligman Capital Portfolio 15.01 16.32 13.21% 14.00% 13.20 6/21/88 - ----------------------------------------------------------------------------------------------------------------------- Seligman Henderson Global Growth Opportunities Portfolio 14.42 -- -- -- 8.97 5/1/96 - ----------------------------------------------------------------------------------------------------------------------- Seligman Large-Cap Value Portfolio (new portfolio) (6.65)* 5/1/98 - ----------------------------------------------------------------------------------------------------------------------- Seligman Common Stock Portfolio 16.95 18.88 16.07 14.75 14.04 6/21/88 - ----------------------------------------------------------------------------------------------------------------------- Seligman Henderson International Portfolio 8.72 7.32 6.44 -- 8.07 5/3/93 - ----------------------------------------------------------------------------------------------------------------------- Seligman Income Portfolio 0.78 6.36 5.57 8.51 8.08 6/21/88 - ----------------------------------------------------------------------------------------------------------------------- Seligman High-Yield Bond Portfolio (5.86) 7.01 -- -- 7.54 5/1/95 - ----------------------------------------------------------------------------------------------------------------------- Seligman Bond Portfolio 1.22 2.61 4.19 5.53 5.35 6/21/88 - ----------------------------------------------------------------------------------------------------------------------- Seligman Cash Management Portfolio (1.51) 2.38 2.96 3.58 3.53 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 Advisors, 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 December 31, 1998, was 3.31% Trillium Fixed Account's rate for the one year Guarantee Period was 4.50% as of December 31, 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 a specified current rate of interest. Please contact your financial advisor or call Seligman Advisors 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. 5 - ------------------------------------------------------------------------------- A N N U A L R E P O R T - ------------------------------------------------------------------------------- TRILLIUM A VARIABLE ANNUITY December 31, 1998 Total Returns* For the Year Ended December 31, 1998 Sub-Accounts: Bond............................................. 6.70% Capital.......................................... 20.49 Cash Management.................................. 3.96 Common Stock..................................... 22.43 Communications and Information................... 34.59 Frontier......................................... (2.83) Global Growth Opportunities...................... 19.91 Global Smaller Companies......................... 5.10 Global Technology................................ 34.89 International.................................... 14.20 High-Yield Bond.................................. (0.38) Income........................................... 6.26 Large-Cap Value.................................. (1.20)** Small-Cap Value.................................. (17.78)** - ------------------------- * 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. ** From commencement of operations, May 1, 1998. Seligman Portfolios, Inc. the underlying investment vehicle for -------------------------------------- TRILLIUM A Variable Annuity -------------------------------------- February 5, 1999 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 audited financial statements and accompanying information for the year ended December 31, 1998. In 1998, for the eighth straight year, the US economy expanded, with real domestic growth of 3.9%. Once again, large-cap US stocks responded to this favorable environment with strong performance. The market, as measured by the Standard & Poor's 500 Composite Stock Price Index (S&P 500), rose 28.58% -- the first time in history that this widely watched index returned more than 20% for four years in a row. Although 1998 will certainly be recorded as another stellar year for equities, the market gave investors a bumpy ride along the way. In fact, such wide market swings haven't been seen since 1987. A number of factors contributed to this volatility -- some domestic, many international. The global economic background in 1998 was one of steadily deteriorating conditions as the financial crisis, originally limited to a few Asian countries, spread throughout other regions. The global turmoil continued when Russia defaulted on its debt and devalued its currency, and investors everywhere feared that Brazil and other Latin American countries would follow. In addition to high volatility, last year's market was notable for being extremely narrow, with the exceptional performances of a few stocks distorting the total picture. In fact, 197 stocks, representing 39% of the S&P 500, actually lost market value during the last 12 months. Investment results between market caps were also more widely dispersed than usual. The disparity was almost unprecedented. For example, the large-capitalization-dominated S&P 500 rose 28.58%, while the Russell 2000 Index of smaller-capitalization stocks actually declined 2.55%. International markets began the year with generally strong performances, fueled by expectations of lower inflation and falling interest rates. Beginning in mid-July, however, the combination of the Russian debt default, speculative attacks against emerging market currencies, and a worse-than-expected economic impact from Asia on the rest of the world led to sharp market corrections. Then, in October, markets recovered as interest rates were cut in many parts of the world and a coordinated program of support for the world's financial system was implemented. Fixed-income markets posted strong returns for the year but, as in the equity markets, some segments performed notably better than others. US Treasury bonds, in particular, benefitted from a confluence of events that drove prices higher and yields to 30-year lows. US government-backed bonds, which carry the highest credit quality, were in great demand as the global financial turmoil produced a "flight to quality" around the world. Further boosting the US government bond market was the Federal Reserve Board's lowering of the federal-funds rate, and a federal budget surplus which caused the overall supply of bonds to decrease. In 1999, we believe gross domestic product (GDP) should slow to about 2.5 percent. We expect a challenging financial market environment with ongoing economic uncertainties and continued high volatility. Nonetheless, we see moderately positive returns for the year in line with our lower growth projections. In addition, low inflation, falling or stable interest rates, improving prospects in Asia, and a Federal Reserve leading the fight against global recession should all provide support for US markets. We expect that the equity market, which began to show signs of broadening in the fourth quarter of 1998, will continue to broaden in 1999. If this trend continues, small- and mid- cap stocks should begin to benefit from the favorable equity environment to a greater extent. Thank you for your continued support of Trillium. We look forward to continuing to serve your investment needs in 1999. Respectfully, /s/ Ronald E. Beettam /s/ William C. Morris Ronald E. Beettam William C. Morris President 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 December 31, 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: Investments in Seligman Portfolios, Inc., at market value (see Note 3 for cost values)........................ $ 5,304,699 $18,116,104 $9,046,059 $42,120,381 $98,001,344 $31,812,968 Due to Canada Life Insurance Company of America (Note 6)......... (31,787) (98,494) (83,149) (255,427) (620,386) (194,791) ----------- ----------- ---------- ----------- ----------- ----------- NET ASSETS............................... $ 5,272,912 $18,017,610 $8,962,910 $41,864,954 $97,380,958 $31,618,177 =========== =========== ========== =========== =========== =========== NET ASSETS ATTRIBUTABLE TO: Policyholders' liability reserve......... $ 5,272,912 $18,017,610 $8,962,910 $41,864,954 $97,380,958 $31,618,177 ----------- ------------ ---------- ----------- ----------- ----------- NET ASSETS............................... $ 5,272,912 $18,017,610 $8,962,910 $41,864,954 $97,380,958 $31,618,177 =========== =========== ========== =========== =========== =========== NUMBER OF UNITS OUTSTANDING.............. 302,558 485,399 6,178,761 1,044,087 3,963,361 1,684,443 =========== =========== ========== =========== =========== =========== NET ASSET VALUE PER UNIT................. $ 17.4278 $ 37.192 $ 1.4506 $ 40.0972 $ 24.5703 $ 18.7707 =========== =========== ========== =========== =========== ===========
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)......................... $7,928,657 $19,631,895 $5,303,774 $9,437,165 $31,040,970 $9,042,491 Due to Canada Life Insurance Company of America (Note 6).......... (41,683) (125,413) (32,739) (69,676) (175,769) (56,377) ---------- ----------- ---------- ----------- ----------- ---------- NET ASSETS................................ $7,886,974 $19,506,482 $5,271,035 $9,367,489 $30,865,201 $8,986,114 ========== =========== ========== =========== =========== ========== NET ASSETS ATTRIBUTABLE TO: Policyholders' liability reserve.......... $7,886,974 $19,506,482 $5,271,035 $9,367,489 $30,865,201 $8,986,114 ========== =========== ========== =========== =========== ========== NET ASSETS................................ $7,886,974 $19,506,482 $5,271,035 $9,367,489 $30,865,201 $8,986,114 ========== =========== ========== =========== =========== ========== NUMBER OF UNITS OUTSTANDING............... 604,445 1,310,083 322,591 591,251 2,279,540 394,266 ========== =========== ========== =========== =========== ========== NET ASSET VALUE PER UNIT.................. $ 13.0483 $ 14.8895 $ 16.3397 $ 15.8435 $ 13.5401 $ 22.7920 ========== =========== ========== =========== =========== ==========
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)......................... $ 3,594,158 $ 2,216,575 $ 292,597,240 Due to Canada Life Insurance Company of America (Note 6).......... (15,732) (7,378) (1,808,801) ----------- ----------- ------------- NET ASSETS................................ $ 3,578,426 $ 2,209,197 $ 290,788,439 =========== =========== ============= NET ASSETS ATTRIBUTABLE TO: Policyholders' liability reserve.......... $ 3,578,426 $ 2,209,197 $ 290,788,439 ----------- ----------- ------------- NET ASSETS................................ $ 3,578,426 $ 2,209,197 $ 290,788,439 =========== =========== ============= NUMBER OF UNITS OUTSTANDING............... 362,174 268,697 19,791,656 =========== =========== ============= NET ASSET VALUE PER UNIT.................. $ 9.8804 $ 8.2219 =========== ===========
- ----------------------------- See accompanying notes. --2 and 3-- Canada Life of America Variable Annuity Account 2 - ------------------------------------------------------------------------------- Statement of Operations For the Year Ended December 31, 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..................... $328,609 $1,017,743 $461,985 $3,199,922 $3,856,403 $ -- Less mortality and expense risk charges (Note 6)....................... 67,355 255,069 122,773 520,906 1,131,906 477,598 ----------- ----------- ----------- ----------- ----------- ----------- NET INVESTMENT INCOME (LOSS)............. 261,254 792,674 339,212 2,679,016 2,724,807 (477,598) ----------- ----------- ----------- ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments.. 75,857 640,187 -- 737,506 (9,244) (30,358) Net unrealized appreciation (depreciation) of investments.......... (24,918) 1,474,942 -- 4,133,708 22,974,473 (588,267) ----------- ----------- ----------- ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 50,939 2,115,129 -- 4,871,214 22,965,229 (618,625) ----------- ----------- ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $312,193 $2,907,803 $339,212 $7,550,230 $25,690,036 $(1,096,223) =========== =========== =========== =========== =========== ===========
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..................... $ 46,683 $ 289,542 $ 228,760 $ 185,677 $ 2,625,999 $ 482,672 Less mortality and expense risk charges (Note 6)....................... 91,916 286,855 59,926 133,412 384,444 124,492 ----------- ----------- ----------- ----------- ----------- ----------- NET INVESTMENT INCOME (LOSS)............. (45,233) 2,687 168,834 52,265 2,241,555 358,180 ----------- ----------- ----------- ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments.. 170,051 237,916 119,124 302,886 242,702 48,543 Net unrealized appreciation (depreciation) of investments.......... 921,826 664,912 960,333 852,183 (2,787,854) 120,665 ----------- ----------- ----------- ----------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 1,091,877 902,828 1,079,457 1,155,069 (2,545,152) 169,208 ----------- ----------- ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ 1,046,644 $ 905,515 $ 1,248,291 $1,207,334 $ (303,597) $ 527,388 =========== =========== =========== =========== =========== ===========
LARGE-CAP SMALL-CAP VALUE VALUE SUB-ACCOUNTS SUB-ACCOUNT SUB-ACCOUNT COMBINED ----------- ----------- ----------- NET INVESTMENT INCOME: Dividend and capital gain distributions........................ $ 107,743 $242,054 $13,073,792 ----------- ---------- ----------- Less mortality and expense risk charges (Note 6).......................... 14,518 9,588 3,650,448 ----------- ---------- ----------- NET INVESTMENT INCOME (LOSS)................ 93,225 232,466 9,423,344 ----------- ---------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments..... (39,349) (82,801) 2,413,020 Net unrealized appreciation (depreciation) of investments............. 109,072 (34,480) 28,776,595 ----------- ---------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS............................ 69,723 (117,281) 31,189,615 ----------- ---------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.......... $ 162,948 $115,185 $40,612,959 =========== ========== ===========
- ------------------------------------------------------------------------------ * For the period May 1, 1998 (commencement of operations) to December 31, 1998. See accompanying notes. -- 2 and 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 ---------------------- ----------------------- ------------------------- Year Ended Year Ended Year Ended December 31, December 31, December 31, ---------------------- ----------------------- ------------------------- 1998 1997 1998 1997 1998 1997 ---------- ---------- --------- ---------- ---------- ---------- OPERATIONS: Net investment income (loss)........... $ 261,254 $ 194,351 $ 792,674 $ 798,930 $ 339,212 $ 304,525 Net realized gain (loss) on investments....................... 75,857 8,066 640,187 458,289 -- -- Net unrealized appreciation/ depreciation of investments.......... (24,918) 66,018 1,474,942 899,608 -- -- ---------- ---------- ----------- ----------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............ 312,193 268,435 2,907,803 2,156,827 339,212 304,525 ---------- ---------- ----------- ----------- ---------- ---------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)........... 6,780 2,029,015 123,897 3,428,077 1,240,131 (1,162,636) ---------- ---------- ----------- ----------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS ARISING FROM CAPITAL TRANSACTIONS................. 6,780 2,029,015 123,897 3,428,077 1,240,131 (1,162,636) ---------- ---------- ----------- ----------- ---------- ---------- TOTAL INCREASE (DECREASE) IN NET ASSETS........................ 318,973 2,297,450 3,031,700 5,584,904 1,579,343 (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.............. $5,272,912 $4,953,939 $18,017,610 $14,985,910 $8,962,910 $7,383,567 ========== ========== =========== =========== ========== ==========
Communications and Common Stock Information Sub-Account Sub-Account ------------------------ ------------------------ Year Ended Year Ended December 31, December 31, ------------------------ ------------------------ 1998 1997 1998 1997 ----------- ----------- ----------- ----------- OPERATIONS: Net investment income (loss)........... $ 2,679,016 $ 4,565,796 $ 2,724,807 $17,976,778 Net realized gain (loss) on investments....................... 737,506 488,619 (9,244) 2,491,942 Net unrealized appreciation/ depreciation of investments.......... 4,133,708 (535,131) 22,974,473 (8,926,535) ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............ 7,550,230 4,519,284 25,690,036 11,542,185 ----------- ----------- ----------- ----------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)........... 1,806,531 7,593,933 (2,309,026) 8,108,126 ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS ARISING FROM CAPITAL TRANSASCTIONS................ 1,806,531 7,593,933 (2,309,026) 8,108,126 ----------- ----------- ----------- ----------- TOTAL INCREASE (DECREASE) IN NET ASSETS........................ 9,356,761 12,113,217 23,381,010 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.............. $41,864,954 $32,508,193 $97,380,958 $73,999,948 =========== =========== =========== ===========
Global Growth Frontier Opportunities Sub-Account Sub-Account ------------------------ ------------------------- Year Ended Year Ended December 31, December 31, ------------------------ ------------------------- 1998 1997 1998 1997 ----------- ----------- ----------- ----------- OPERATIONS: Net investment income (loss)........... $ (477,598) $ 2,671,617 $ (45,233) $ 2,289 Net realized gain (loss) on investments....................... (30,358) 878,611 170,051 77,328 Net unrealized appreciation/ depreciation of investments.......... (588,267) 500,110 921,826 153,700 ----------- ----------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............ (1,096,223) 4,050,338 1,046,644 233,317 ----------- ----------- ---------- ---------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5)........... (2,173,725) 4,928,379 2,080,972 3,233,258 NET INCREASE (DECREASE) IN NET ASSETS ARISING FROM CAPITAL TRANSASCTIONS................ (2,173,725) 4,928,379 2,080,972 3,233,258 ----------- ----------- ---------- ---------- TOTAL INCREASE (DECREASE) IN NET ASSETS........................ (3,269,948) 8,978,717 3,127,616 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.............. $31,618,177 $34,888,125 $7,886,974 $4,759,358 =========== =========== ========== ==========
--4 and 5--
Global Smaller Global Companies Technology International Sub-Account Sub-Account Sub-Account ----------------------- ---------------------- ------------------- Year Ended Year Ended Year Ended December 31, December 31, December 31, ----------------------- ---------------------- ------------------- 1998 1997 1998 1997 1998 1997 --------- --------- ---------- --------- -------- ------- OPERATIONS: Net investment income (loss)............................... $ 2,687 $ 180,288 $ 168,834 $ 412,115 $ 52,265 $ 179,009 Net realized gain (loss) on investments.................... 237,916 265,007 119,124 190,061 302,886 251,193 Net unrealized appreciation/depreciation of investments.... 664,912 (90,117) 960,333 (324,750) 852,183 73,912 ----------- ----------- ---------- ---------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............................................ 905,515 355,178 1,248,291 277,426 1,207,334 504,114 ----------- ----------- ---------- ---------- ---------- ---------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5).... (950,338) 2,874,836 729,244 1,899,573 (645,302) 1,173,767 ----------- ----------- ---------- ---------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS ARISING FROM CAPITAL TRANSACTIONS.......................................... (950,338) 2,874,836 729,244 1,899,573 (645,302) 1,173,767 ----------- ----------- ---------- ---------- ---------- ---------- TOTAL INCREASE IN NET ASSETS............................... (44,823) 3,230,014 1,977,535 2,176,999 562,032 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.................................. $19,506,482 $19,551,305 $5,271,035 $3,293,500 $9,367,489 $8,805,457 =========== =========== ========== ========== ========== ==========
- --------------------- * Commencement of operations. See accompanying notes.
High-Yield Bond Income Sub-Account Sub-Account ------------------------ ------------------------ Year Ended Year Ended December 31, December 31, ------------------------ ------------------------ 1998 1997 1998 1997 ----------- ----------- ---------- ------------ OPERATIONS: Net investment income (loss)............................... $ 2,241,555 $ 1,492,267 $ 358,180 $ 690,186 Net realized gain (loss) on investments.................... 242,702 390,673 48,543 77,550 Net unrealized appreciation/depreciation of investments.... (2,787,854) 176,658 120,665 165,357 ----------- ----------- ---------- ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............................................ (303,597) 2,059,598 527,388 933,093 ----------- ----------- ---------- ------------ CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5).... 8,452,975 9,388,102 178,197 (747,332) ----------- ----------- ---------- ------------ NET INCREASE (DECREASE) IN NET ASSETS ARISING FROM CAPITAL TRANSACTIONS.......................................... 8,452,975 9,388,102 178,197 (747,332) ----------- ----------- ---------- ------------ TOTAL INCREASE IN NET ASSETS............................... 8,149,378 11,447,700 705,585 185,761 Net Assets, Beginning of Period............................ 22,715,823 11,268,123 8,280,529 8,094,768 ----------- ----------- ---------- ------------ NET ASSETS, END OF PERIOD.................................. $30,865,201 $22,715,823 $8,986,114 $ 8,280,529 =========== =========== ========== ============
Large-Cap Small-Cap Value Value Sub-Accounts Sub-Account Sub-Account Combined ------------------------ -------------------------- Year Ended Year Ended December 31, December 31, ------------------------ -------------------------- 1998 1997 1998 1997 ----------- ----------- ----------- ------------- OPERATIONS: Net investment income (loss)............................... $ 93,225 $ 232,466 $ 9,423,344 $ 29,468,151 Net realized gain (loss) on investments.................... (39,349) (82,801) 2,413,020 5,577,339 Net unrealized appreciation/depreciation of investments.... 109,072 (34,480) 28,776,595 (7,841,170) ----------- ----------- ------------ ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............................................ 162,948 115,185 40,612,959 27,204,320 ----------- ----------- ------------ ------------- CAPITAL TRANSACTIONS: Net increase (decrease) from unit transactions (Note 5).... 3,415,478 2,094,012 14,049,826 42,747,098 ----------- ----------- ------------ ------------- NET INCREASE (DECREASE) IN NET ASSETS ARISING FROM CAPITAL TRANSACTIONS.......................................... 3,415,478 2,094,012 14,049,826 42,747,098 ----------- ----------- ------------ ------------- TOTAL INCREASE IN NET ASSETS............................... 3,578,426 2,209,197 54,662,785 69,951,418 Net Assets, Beginning of Period............................ -- -- 236,125,654 166,174,236 ----------- ----------- ------------ ------------- NET ASSETS, END OF PERIOD.................................. $ 3,578,426 $ 2,209,197 $209,788,439 $236,125,654 =========== =========== ============ =============
-- 4 and 5 -- Canada Life of America Variable Annuity Account 2 - ------------------------------------------------------------------------------- Notes to Financial Statements - ------------------------------------------------------------------------------- 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 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 December 31, 1998, is as follows:
Number of Shares Market Price Market Value Cost ---------------- ------------ ------------ ----------- Bond 511,050 $10.38 $5,304,699 $ 5,346,867 Capital 870,548 20.81 18,116,104 15,645,186 Cash Management 9,046,059 1.00 9,046,059 9,046,059 Common Stock 2,260,890 18.63 42,120,381 39,204,810 Communications and Information 5,717,698 17.14 98,001,344 82,060,753 Frontier 2,045,850 15.55 31,812,968 31,071,977 Global Growth Opportunities 594,798 13.33 7,928,657 6,843,005 Global Smaller Companies 1,441,402 13.62 19,631,895 18,968,538 Global Technology 382,944 13.85 5,303,774 4,613,698 International 613,999 15.37 9,437,165 8,187,394 High-Yield Bond 2,855,655 10.87 31,040,970 33,567,265 Income 821,298 11.01 9,042,491 9,049,250 Large-Cap Value 372,066 9.66 3,594,158 3,485,086 Small-Cap Value 303,225 7.31 2,216,575 2,251,055 ------------ ------------ $292,597,240 $269,340,943 ============ ============
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 $ 2,894,321 $ 2,622,567 Capital 13,272,251 12,254,836 Cash Management 30,487,925 28,733,072 Common Stock 17,671,343 12,834,126 Communications and Information 24,700,513 23,344,631 Frontier 12,796,277 14,949,757 Global Growth Opportunities 4,265,606 2,003,044 Global Smaller Companies 4,045,388 4,827,208 Global Technology 4,705,868 3,723,542 International 2,101,903 2,547,677 High-Yield Bond 21,196,350 10,087,569 Income 2,688,848 2,097,329 Large-Cap Value 4,631,642 1,107,207 Small-Cap Value 3,252,108 918,252 ------------ ------------ $148,710,343 $122,050,817 ============ ============
-- 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.
Year Ended December 31, 1998 Year Ended December 31, 1997 ------------------------------ ------------------------------ Units Amount Units Amount ----------- ------------- ----------- ------------- Bond Sub-Account Accumulation Units: Contract purchases and net transfers in 290,989 $ 4,955,129 261,683 $ 4,117,039 Terminated contracts and net transfers out (291,727) (4,948,349) (132,913) (2,088,024) ----------- ------------ ----------- ------------ (738) 6,780 128,770 2,029,015 ----------- ------------ ----------- ------------ Capital Sub-Account Accumulation Units: Contract purchases and net transfers in 476,675 15,080,911 304,990 8,703,658 Terminated contracts and net transfers out (477,721) (14,957,014) (183,032) (5,275,581) ----------- ------------ ----------- ------------ (1,046) 123,897 121,958 3,428,077 ----------- ------------ ----------- ------------ Cash Management Sub-Account Accumulation Units: Contract purchases and net transfers in 28,701,853 40,888,881 28,517,454 39,834,422 Terminated contracts and net transfers out (27,814,834) (39,648,750) (29,363,850) (40,997,058) ----------- ------------ ----------- ------------ 887,019 1,240,131 (846,396) (1,162,636) ----------- ------------ ----------- ------------ Common Stock Sub-Account Accumulation Units: Contract purchases and net transfers in 584,818 21,245,552 511,179 15,875,524 Terminated contracts and net transfers out (533,311) (19,439,021) (262,447) (8,281,591) ----------- ------------ ----------- ------------ 51,507 1,806,531 248,732 7,593,933 ----------- ------------ ----------- ------------ Communications and Information Sub-Account Accumulation Units: Contract purchases and net transfers in 1,336,799 26,057,001 1,120,831 31,154,764 Terminated contracts and net transfers out (1,426,919) (28,366,027) (650,150) (23,046,638) ----------- ------------ ----------- ------------ (90,120) (2,309,026) 470,681 8,108,126 ----------- ------------ ----------- ------------ Frontier Sub-Account Accumulation Units: Contract purchases and net transfers in 920,590 17,444,970 1,123,395 17,074,867 Terminated contracts and net transfers out (1,042,222) (19,618,695) (853,657) (12,146,488) ----------- ------------ ----------- ------------ (121,632) (2,173,725) 269,738 4,928,379 ----------- ------------ ----------- ------------ Global Growth Opportunities Sub-Account Accumulation Units: Contract purchases and net transfers in 601,646 7,353,393 482,602 5,012,445 Terminated contracts and net transfers out (434,558) (5,272,421) (176,920) (1,779,187) ----------- ------------ ----------- ------------ 167,088 2,080,972 305,682 3,233,258 ----------- ------------ ----------- ------------ Global Smaller Companies Sub-Account Accumulation Units: Contract purchases and net transfers in 479,301 7,291,622 992,939 8,591,113 Terminated contracts and net transfers out (549,248) (8,241,960) (786,157) (5,716,277) ----------- ------------ ----------- ------------ (69,947) (950,338) 206,782 2,874,836 ----------- ------------ ----------- ------------ Global Technology Sub-Account Accumulation Units: Contract purchases and net transfers in 406,018 5,711,409 332,006 3,909,248 Terminated contracts and net transfers out (355,334) (4,982,165) (168,582) (2,009,675) ----------- ------------ ----------- ------------ 50,684 729,244 163,424 1,899,573 ----------- ------------ ----------- ------------ International Sub-Account Accumulation Units: Contract purchases and net transfers in 234,066 3,590,169 107,800 4,319,259 Terminated contracts and net transfers out (277,507) (4,235,471) (21,223) (3,145,492) ----------- ------------ ----------- ------------ (43,441) (645,302) 86,577 1,173,767 ----------- ------------ ----------- ------------
-- 7 -- Canada Life of America Variable Annuity Account 2 - ------------------------------------------------------------------------------- Notes to Financial Statements (continued) - -------------------------------------------------------------------------------
Year Ended December 31, 1998 Year Ended December 31, 1997 ---------------------------- ---------------------------- Units Amount Units Amount --------- ----------- ---------- ----------- High-Yield Bond Sub-Account Accumulation Units: Contract purchases and net transfers in 1,589,267 $ 22,003,390 1,917,673 $ 19,330,600 Terminated contracts and net transfers out (980,942) (13,550,415) (1,185,914) (9,942,498) ---------- ----------- ---------- ------------ 608,325 8,452,975 731,759 9,388,102 ---------- ----------- ---------- ------------ Income Sub-Account Accumulation Units: Contract purchases and net transfers in 145,220 3,209,039 156,332 3,156,221 Terminated contracts and net transfers out (136,996) (3,030,842) (193,980) (3,903,553) ---------- ----------- ---------- ------------ 8,224 178,197 (37,648) (747,332) ---------- ----------- ---------- ------------ Large-Cap Value Sub-Account* Accumulation Units: Contract purchases and net transfers in 470,789 4,426,163 Terminated contracts and net transfers out (108,615) (1,010,685) ---------- ----------- 362,174 3,415,478 ---------- ----------- Small-Cap Value Sub-Account* Accumulation Units: Contract purchases and net transfers in 362,710 2,860,882 Terminated contracts and net transfers out (94,013) (766,870) ---------- ----------- 268,697 2,094,012 ---------- ----------- Net increase from unit transactions $14,049,826 $ 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 December 31, 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 Transactions charges Gains Investments Investments Assets ------------- ------------ ------------ ------------ --------------- ------------ Bond $ 4,528,380 $ (177,272) $ 880,097 $ 83,875 $ (42,168) $ 5,272,912 Capital 11,864,813 (580,586) 3,028,248 1,234,217 2,470,918 18,017,610 Cash Management 7,993,657 (469,898) 1,439,151 -- -- 8,962,910 Common Stock 26,307,355 (1,233,386) 12,436,996 1,438,418 2,915,571 41,864,954 Communications and Information 57,740,484 (3,044,955) 25,168,079 1,576,759 15,940,591 97,380,958 Frontier 24,609,834 (1,249,792) 6,306,959 1,210,185 740,991 31,618,177 Global Growth Opportunities 6,599,112 (145,248) 98,881 248,577 1,085,652 7,886,974 Global Smaller Companies 16,822,365 (745,336) 2,062,353 703,743 663,357 19,506,482 Global Technology 3,686,239 (102,220) 683,861 313,079 690,076 5,271,035 International 7,061,086 (377,944) 761,172 673,404 1,249,771 9,367,489 High-Yield Bond 28,178,096 (767,160) 5,195,530 785,030 (2,526,295) 30,865,201 Income 6,831,250 (417,663) 2,477,943 101,343 (6,759) 8,986,114 Large-Cap Value 3,415,478 (14,518) 107,743 (39,349) 109,072 3,578,426 Small-Cap Value 2,094,012 (9,588) 242,054 (82,801) (34,480) 2,209,197 ------------- ------------ ------------ ------------ --------------- ------------ $ 207,732,161 $ (9,335,566) $ 60,889,067 $ 8,246,480 $ 23,256,297 $290,788,439 ============= ============= ============ ============ =============== ============
8. Unit Values Unit Values as reported are calculated by dividing total net assets by total units for each Sub-Account. -- 8 -- Canada Life of America Variable Annuity Account 2 - ------------------------------------------------------------------------------- Report of Independent Auditors - ------------------------------------------------------------------------------- Board of Directors of Canada Life Insurance Company of America and Contract Owners of Canada Life of America Variable Annuity Account 2 We have audited the accompanying statement of net assets of Canada Life of America Variable Annuity Account 2 (comprising, respectively, the Bond, Capital, Cash Management, Common Stock, Communications and Information, Frontier, Global Growth Opportunities, Global Smaller Companies, Global Technology, International, High-Yield Bond, Income, Large-Cap Value and Small-Cap Value Sub- Accounts) as of December 31, 1998, and the related statements of operations and changes in net assets for the periods indicated therein. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 1998, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the respective sub- accounts constituting the Canada Life of America Variable Annuity Account 2 at December 31, 1998, and the results of their operations and the changes in their net assets for each of the periods indicated therein in conformity with generally accepted accounting principles. Ernst & Young LLP Atlanta, Georgia February 5, 1999 -- 9 -- The attached are incorporated by reference herein to the annual reports filed by and on behalf of the following: Seligman Portfolios, Inc., filed March 4, 1999 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, Value; and Seligman Small-Cap Value -----END PRIVACY-ENHANCED MESSAGE-----