A Word From Charles R. Schwab
Dear Schwab Select AnnuityTM Investor:
I am pleased to provide you with this semi-annual report for the Schwab Select
Annuity. Inside you'll find individual semi-annual reports for the portfolios in
the Schwab Select Annuity, developed by the investment companies that manage the
portfolios.1
The past six months were an exciting, though occasionally volatile, period for
investors. While it's true that volatility can test the resolve of any investor,
we encourage you to stay focused on your long-term goals and not be swayed by
the market's natural fluctuations over the short term. Even investment
professionals who have been investing for many years or even decades find that
trying to call the market's highs and lows is a difficult, if not impossible,
task. Time and again, we've seen investors sell when the market is down only to
miss out when it later rebounds.
As you may know, tax-deferred investment vehicles such as the Schwab Select
Annuity can be a valuable component of a consistent, long-term investment plan.
To help you become more familiar with the terms you're likely to encounter as
you go through the process of selecting, contributing to and receiving payouts
from your Schwab Select Annuity, this report features an informative,
easy-to-read guide to the unique language of variable annuities.
We hope you'll find this report a useful tool as you review your financial
situation and plan for the future. If you have any questions, please don't
hesitate to call one of our licensed representative at 1-800-838-0650 (New York
residents, call 1-800-838-0649).
Thank you for investing with us.
Sincerely,
Charles R. Schwab
ChairmanVariable annuity contracts, J434, are issued by Great-West Life &
Annuity Insurance Company (in New York State by First Great-West Life & Annuity
Insurance Company) and distributed by Charles Schwab & Co., Inc.
1When you invest in the Schwab SelectAnnuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great- West Life & Annuity
Insurance Company (First Great-West Life @ Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity. Please read the prospectus carefully before investing.Table of
ContentsIntroduction Spotlight Article
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Portfolio Fact Sheets A Review of Each Portfolio
Investment Category*
Money Market Schwab Money Market Portfolio
Intermediate Government Bond Federated Fund for U.S. Government Securities II
Intermediate Corporate Bond Janus Aspen Series Flexible Income Portfolio
High Yield Bond INVESCO VIF - High Yield Fund
Domestic Hybrid Schwab MarketTrack Growth Portfolio II
Large Value Dreyfus Variable Investment Fund, Growth and Income Portfolio
Federated American Leaders Fund II
Prudential Series Fund Equity Class II Portfolio
SAFECO Resource Series Trust Equity Portfolio
Scudder Variable Life Investment Fund Growth and Income Portfolio
Large Blend Dreyfus Variable Investment Fund, Appreciation Portfolio
(formerly Dreyfus Variable Investment Fund Capital Appreciation Portfolio)
INVESCO VIF - Equity Income Fund
Schwab S&P 500 Portfolio
Scudder Variable Life Investment Fund Capital Growth Portfolio
Large Growth Alger American Growth Portfolio
Janus Aspen Series Growth Portfolio
Mid-Cap Value Montgomery Variable Series: Growth Fund
Strong Shafer Value Fund II
World Stock Janus Aspen Series Worldwide Growth Portfolio
Foreign Stock American Century VP International Fund
Deutsche Asset Management VIT EAFE(R) Equity Index Fund
(formerly BT Insurance Funds Trust EAFE(R)Equity Index Fund)
Janus Aspen Series International Growth Portfolio
Small Blend Deutsche Asset Management VIT Small Cap Index Fund
(formerly BT Insurance Funds Trust Small Cap Index Fund)
SAFECO Resource Series Trust Growth Opportunities Portfolio
(formerly SAFECOResource Series Trust Growth Portfolio)
Small Growth Baron Capital Asset Fund: Insurance Shares
Berger IPT - Small Company Growth Fund
Specialty Federated Utility Fund II
INVESCO VIF - Technology Fund
Van Kampen Life Investment Trust Morgan Stanley Real Estate Securities Portfolio Class I Shares
(formerly Van Kampen LIT Morgan Stanley Real Estate Securities Portfolio)
</TABLE>
* Reflects Morningstar Categories as of 6/30/2000.Schwab Select Annuity(TM)
Learning the Language of Variable Annuities
A Glossary for Investors
Variable annuities can be a great way to supplement retirement savings, but they
have a language all their own. Even experienced investors can find terms like
"surrender charge," "death benefit" and "annuitant" confusing. The following
hypothetical example defines terms you're likely to encounter as you go through
the process of selecting, contributing to and receiving payouts from a variable
annuity.
Step 1: Considering the Features of a Variable Annuity
Let's say that a hypothetical investor, who we'll call John Q. Investor, has
contributed the maximum amount the IRS allows to his IRA and 401(k). To help
prepare for retirement, he has also been contributing to a nonqualified variable
annuity, an account that is separate from his qualified retirement plans like
his IRA and 401(k).
John is considering transferring assets from his current variable annuity to one
that offers him lower cost and more flexibility. One of the many advantages of
variable annuities is that investors can exchange one annuity contract for
another, tax free, in what the Internal Revenue Service calls a 1035 Exchange.
Whether making a 1035 Exchange or investing in an annuity for the first time,
investors like John have a number of factors--and terms--to bear in mind as they
consider their choices. First, John will have to consider whether his current
annuity imposes a surrender charge, which is a fee investors may have to pay
when they withdraw money before a specified date. Many variable annuities charge
a surrender fee of as much as 9% or more that declines incrementally over the
course of several years. So it might not be cost-effective for John to transfer
now if his current annuity's surrender charge is still in effect. Investors
should also find out whether the annuity they're
planning to transfer money into imposes a surrender charge. Some variable
annuities, including the Schwab Select Annuity,(TM) do not impose any surrender
charge. Investors can learn about the fees and expenses annuities may charge in
the annuity product prospectus.
Next, John should consider the selection and type of individual investment
choices 1 a variable annuity includes, since a broad selection representing
various asset classes gives investors like John the flexibility to help him meet
his investment goals. Technically, these investment choices are known as
subaccounts, which then invest in underlying portfolios, that are sometimes
modeled after publicly traded mutual funds. The annuity account value varies
according to the performance of these portfolios. Do the investment choices
cover a broad range of investment objectives? What fund families are
represented?
In addition, John should also compare other fees and charges that may be imposed
by the variable annuity contract. These can vary considerably among variable
annuities. For example, he will probably want an annuity with a low mortality
and expense (M&E) risk charge, which is a percentage of an annuity account's
assets that the insurance company charges to cover the costs of providing the
annuity's insurance benefits. The industry average M&E is 1.27%2, considerably
higher than the Schwab Select Annuity's M&E of just 0.85%. Within each annuity,
some investment choices may also impose a load, or sales charge, while others
are no load. For example, the Schwab Select Annuity offers 29 no-load investment
choices. Finally, John might consider additional factors that distinguish one
variable annu- ity from another. The Schwab Select Annuity, for example, offers
day and night touch-tone and online account access as well as phone
representative access from 6:00 am to 4:30 pm Pacific time.
--------------------------------------------------------------------------------
1 The investment choices include 29 subaccounts offered through the Schwab
Select Annuity . When you invest in a variable annuity, you do not invest
directly in the portfolios, you invest in subaccounts of a separate account
established by the issuing insurance company that, in turn, invests in the
portfolios. 2 Source: 6/30/00 Morningstar Variable Annuities/Life; 402 variable
annuities surveyed. See prospectus for details on expenses applicable to the
underlying portfolios and contract fees.
Step 2: The Application
Once John has chosen his new annuity, he then moves on to the next stage:
completing the application.
One of the first terms John might encounter is annuitant, the person named on
the application upon whose life the payout of an annuity is based and who will
receive annuity payouts during his or her lifetime. Generally speaking, the
annuitant is also the owner of the annuity contract, unless the owner specifies
otherwise. The owner is entitled to exercise all rights and privileges under the
annuity contract.
At this stage, John will also choose how he wants his annuity assets invested.
In addition to investment choices that provide access to various segments of the
stock, bond and money markets, he might consider a guaranteed period fund (also
known as a fixed interest choice), which pays a stated rate of interest for a
specified time period. The Schwab Select Annuity(TM) offers 10 guaranteed period
funds.3
Step 3: The Accumulation Period
The contract is now in the accumulation period, a time in which John's annuity
assets may grow, tax deferred.4 During this phase, John invests or deposits
money, called contributions, in his annuity. The date on which his first
contribution is credited to his annuity account is known as the effective date.
After the effective date, John can look over the contract, free of obligation,
for at least 10 days (or longer, depending on his state's laws). This is known
as the free look period. At any time during this period, he can cancel his
contract without owing any insurance or surrender charge.
During the accumulation period, John can implement his long-term investment
strategy. One simple way he might consider building assets over time is called
dollar cost averaging, which allows periodic investments over time.
This can allow the investor to buy more units (a standard measure of investment
in an annuity) when their price is low and fewer units when their price is high.
Over time, the average cost per unit may be less than if the investor invested
all of his or her money at one time. Dollar cost averaging does not, however,
assure a profit nor protect against loss in a declining market.
The accumulation period may continue for years or even decades. If the owner or
annuitant dies at any time during this phase, his or her beneficiaries will
receive what is known as a guaranteed death benefit--either the amount of money
the annuitant contributed to the plan or the contract's current value, at the
time of his or her death, whichever is greater.
Key Terms
when considering a variable annuity
Mortality & Expense Fee (M&E) The percentage of an annuity account's assets
that the insurance company charges to cover costs for providing the
annuity's insurance benefits.
Surrender Charge
The fee annuity investors may have to pay when they withdraw money from
their annuity before a specified date. (Not all annuities impose this
fee).
1035 Exchange
A tax-free transfer of annuity assets (as permitted under the Internal
Revenue Code, Section 1035) from one variable annuity to another.3 Early
withdrawals from the fixed interest choices are subject to a market value
adjustment, which may reduce the value of amounts held in these certificates
below the amount of your contribution.
4 Under current tax laws, earnings are not taxable until withdrawn. Earnings
withdrawn before 59 1/2 may be subject to a 10% IRS penalty.
Step 4: Receiving Payouts
The annuity commencement date is when the contract stops accumulating and John's
annuity income payments start. The time in which he receives payments is the
annuity payout period or distribution period; it continues until all annuity
payouts have been made under the terms of the contract. With the Schwab Select
Annuity,(TM) if John did not indicate an annuity commencement date on his
application or in the interim, annuity payouts would begin on the first day of
the month of his 91st birthday.
When John does decide to start taking assets out of his annuity, he can elect to
receive payouts in a number of different ways. Fixed annuity payout, based on a
fixed rate of return, generates a guaranteed stream of equal payments.5 Variable
annuity payout lets his assets remain allocated among the underlying portfolios,
which can be a smart way to keep his long-term investment growing. The payments
he receives will fluctuate in response to changes in the market value of the
portfolios he selected.
Most annuities offer a few different ways to receive payouts:
o Life Annuity guarantees payments for his lifetime.
o Period Certain Annuity guarantees a schedule of payments for as long as
he would like, so he can plan for income during a specific number of
years. (This choice is not available with variable payout.) o Life
Annuity with Period Certain combines the advantages of the Life Annuity
and the Period Certain Annuity plans by guaranteeing a payout during a
set period or for his lifetime, whichever is longer. o Lump-sum payment
or periodic payouts: With a lump-sum withdrawal, John can receive his
entire annuity balance in a single payment. Periodic withdrawals would
give him complete control over the amount and timing of each withdrawal,
providing him with the flexibility to withdraw money only when he needs
it.
The advantage of having choices like these is one good reason to become familiar
with the unique language of variable annuities. If you have further questions,
we encourage you to call our licensed insurance representatives at
1-800-838-0650 (in New York State, 1-800-838-0649).
Visit the Online Schwab Annuity Center
It's easy for annuity customers to get to the online Schwab Annuity Center. You
can either go directly to www.schwab.com/annuity or link to the Annuity Center
from the main Schwab home page at www.schwab.com. From there, simply click on
the "Investments" tab and then "Annuities", log in and you are ready to go.
We'll send you a prospectus containing more complete information including fees
and expenses. Please read the prospectus carefully before you invest or send
money.
5 The guarantees of the payout choices depend on the claims-paying ability of
the insurance company. The Schwab Select Annuity is issued by Great-West Life &
Annuity Insurance Company (in New York State by First Great-West Life & Annuity
Insurance Company) and distributed by Charles Schwab & Co., Inc. 6 Investments
in high tech stock portfolios are subject to increased volatility and
potentially rapid obsolescence.
<PAGE>
Portfolio Fact Sheets
A quick snapshot of all the portfolios available in the Schwab Select Annuity.TM
These fact sheets have been grouped by Morningstar category.
Information for these portfolio fact sheets was received from what we believe to
be reliable sources, but we can't absolutely guarantee accuracy, completeness or
suitability for any purpose. The information on the fact sheets is as of the
date stated and is not an indication of future portfolio holdings, composition
or performance. Data are unaudited.
Annuity contracts, J434, are issued by Great-West Life & Annuity Insurance
Company (in New York State, by First Great-West Life & Annuity Insurance
Company) and distributed by Charles Schwab & Co., Inc.Schwab Select
Annuity(TM)
<PAGE>
Schwab Money Market Portfolio
For period ending December 31,1998
For period ending
June 30, 2000
Fund Inception Date: May 3, 1994
MORNINGSTAR CATEGORY: MONEY MARKET
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELDBOND BALANCED LARGE-CAP MID-CAP FOREIGN
SMALL-CAP SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Charles Schwab Investment Management, Inc.
Portfolio Manager
Karen Wiggan
Investment Orientation
The Portfolio seeks maximum current income consistent with liquidity and
stability of capital by investing in high-quality, short-term debt securities.
An investment in the Portfolio is not insured or guaranteed by the FDIC or any
other government agency. Although the Portfolio seeks to preserve the value of
your investment at $1.00 per share, it is possible to lose money by investing in
this Portfolio.
Who is Most Likely to Choose This Portfolio?*
Investors who are looking for preservation of capital and a high degree of
stability in their investments. This person's time horizon is generally less
than 5 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Maturity
As of June 30, 2000
0-15 Days 28.5%
16-30 Days 14.2%
31-60 Days 17.1%
61-90 Days 26.6%
91-120 Days 5.6%
Over 120 Days 8.0%
Average Maturity 50 Days
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
Portfolio Composition
As of June 30, 2000
U.S. Government Securities/Discount Notes 86%
Repurchase Agreements 14%
100%
Other Information
Operating Expenses** 0.50%
Total Portfolio Net Assets $137.5
($millions)
Charles Schwab Investment Management, Inc.Schwab Select Annuity(TM)
Federated Fund for U.S. Government Securities II
For period ending
June 30, 2000
Fund Inception Date: March 28, 1994
MORNINGSTAR CATEGORY: INTERMEDIATE GOVERNMENT BOND
LOW RISK HIGH
MONEYMARKET BOND HIGH-YIELDBOND BALANCED LARGE-CAP MID-CAP FOREIGN
SMALL-CAP SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Federated Investment Management Company
Portfolio Managers
Kathleen M. Foody-Malus
Todd A. Abraham, CFA
Investment Orientation
Seeks current income by investing in fixed-income securities which are
obligations guaranteed by the United States government, its agencies or
instrumentalities, and in certain collateralized mortgage obligations and
repurchase agreements.
The government "guarantees" applies to the payment of principal and interest on
the underlying securities and not to shares of the portfolio itself.
Who is Most Likely to Choose This Portfolio?*
Investors who are looking for moderate returns and stability, and are less
concerned about increasing the value of their investments. This person's time
horizon is generally less than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
FHLMC 6.5% due 1/1/29 7.5%
FNMA 6.5% due 7/1/29 7.0%
FHLMC 7.0% due 2/1/29 5.6%
FNMA 8.0% due 4/1/30 5.4%
FHLMC 7.5%% due 10/1/29 5.2%
FNMA 7.0% due 3/1/29 5.0%
GNMA 6.5% due 6/15/27 4.3%
GNMA 7.0% due 9/15/28 3.9%
GNMA II 8.0% due 6/20/28 3.8%
GNMA 7.5% due 9/15/29 3.3%
Total 51.0%
*When you invest in the Schwab Select Annuity, you do not invest
directly in the annuity portfolios. You invest in sub-accounts of Great-West
Life & Annuity Insurance Company (First Great-West Life & Annuity Insurance
Company in New York State) that, in turn, invest in the annuity portfolios
you've selected. Your account is then credited with variable accumulation units
in that sub-account. The fees and charges associated with the sub-accounts and
the terms and conditions of your investment are detailed in the prospectus for
the Schwab Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
Portfolio Composition
As of June 30, 2000
FNMA
FHLMC
GNMA
U.S. Treasury's
U.S. Government Agency Debentures
Repurchase Agreements
29%25%17%14%14% 1%100%
Other Information
Average Duration 4.5 years
Operating Expenses** 0.80%
Total Portfolio Net Assets $133.55
($millions)
Federated Investment Management CompanySchwab Select Annuity(TM)
Janus Aspen Series Flexible Income Portfolio
For period ending
June 30, 2000
Fund Inception Date: September 13, 1993
MORNINGSTAR CATEGORY: INTERMEDIATE CORPORATE BOND
LOW RISK HIGH
MONEYMARKET BOND HIGH-YIELDBOND BALANCED LARGE-CAP MID-CAP FOREIGN
SMALL-CAP SPECIALTY DEVELOPING/EMERGING MARKETS
Funds invested in below investment grade bonds are more risky than investment
grade bond portfolios. For illustrative purposes only.
Investment Adviser
Janus
Portfolio Manager
Ronald V. Speaker
Investment Orientation
Seeks to maximize total return, consistent with preservation of capital, from a
combination of income and capital appreciation, although income will normally be
the dominant component of total return. The portfolio invests in many types of
income producing securities and may have substantial holdings of debt securities
rated below investment-grade.
Who is Most Likely to Choose This Portfolio?*
Investors who are looking for moderate returns and stability, and are less
concerned about increasing the value of their investments. This person's time
horizon is generally less than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
U.S. Treasury Bonds/Notes 10.77%
General Electric Capital Corp. 3.74%
Ford Motor Credit Corp. 2.73%
Electronic Data Systems Corp. 2.19%
Stone Container Corp. 1.99%
Wal-Mart Stores, Inc. 1.96%
Procter & Gamble Co. 1.95%
Qwest Communications Intl., Inc. 1.94%
Kroger Co. 1.74%
GEGlobal Insurance Corp. 1.73%
Total 30.74%
Portfolio Composition
As of June 30, 2000
Consumer Cyclical
Financial
Technology
Consumer, Non-cyclical
Utilities
Industrial
Energy
Other
21%20%16%14% 8% 3% 3%15%100%
Other Information
Operating Expenses** 0.78%
Total Portfolio Net Assets $199.4
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
Janus Schwab Select Annuity(TM)
INVESCOVIF-High Yield Fund
For period ending
June 30, 2000
Fund Inception Date: May 27, 1994
MORNINGSTAR CATEGORY: HIGH YIELD BOND
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN
SMALL-CAP SPECIALTY DEVELOPING/EMERGING MARKETS
Funds invested in below investment grade bonds are more risky than investment
grade bond portfolios. For illustrative purposes only.
Investment Adviser
INVESCOFunds Group, Inc.
Portfolio Manager
D. Jerry Paul, CFA, CPA
Investment Orientation
Seeks a high level of current income by investing substantially all of its
assets in lower-rated bonds and other debt securities and in preferred stock.
Potential capital appreciation is a factor in the selection of investments, but
is secondary to the Fund's primary objectives.
Who is Most Likely to Choose This Portfolio?*
Investors who are looking for higher returns than offered by an investment grade
bond portfolio and are willing to accept less stability. These funds invest in
below investment grade bonds and are more risky than investment grade bond
portfolios. This person's time horizon is generally greater than 5 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
Level 3 Communications 5.40%
MetroNet Communications 4.13%
Chancellor Media of Los Angeles 4.05%
Esat Holdings, Ltd. 3.26%
NEXTLINK Communications 2.15%
United Rentals 2.12%
United Pan-Europe Communications 2.11%
TXU Electric Capital 2.00%
TVGuide 2.00%
Metromedia Fiber Network 1.97%
Total 29.19%
Portfolio Composition
As of June 30, 2000
Fixed Income
Communication Services
Cash & Cash Equivalents
Other
86% 9% 3% 2%100%
Other Information
Average Maturity 7.84 years
Average Duration 5.19 years
Operating Expenses** 1.05%
Total Portfolio Net Assets $62.37
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
INVESCO Funds Group, Inc.Schwab Select Annuity(TM)
Schwab MarketTrack Growth Portfolio II
For period ending
June 30, 2000
Fund Inception Date: November 1, 1996
MORNINGSTAR CATEGORY: DOMESTIC HYBRID
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN
SMALL-CAP SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Charles Schwab Investment Management, Inc.
Portfolio Managers
Geri Hom
Kimon Daifotis
Investment Orientation
Seeks to provide high capital growth with less volatility than an all-stock
portfolio. Target mix of 80% stocks, 15% bonds, 5% cash equivalents.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for reasonable but relatively stable growth.
Some fluctuations are tolerable, but they generally want less risk than the
overall stock market. This person's time horizon is generally greater than 5
years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
Schwab Small Cap Index- Select Shares 20.18%
Schwab International Index-
Select Shares 20.02%
Schwab Total Bond Market Index 15.13%
Schwab Value Advantage MM 3.85%
General Electric Co. 1.63%
Intel Corp. 1.42%
Cisco Systems, Inc. 1.38%
Microsoft Corp. 1.31%
Pfizer, Inc. 0.98%
Exxon Mobil Corp. 0.85%
Total 66.75%
Portfolio Composition
As of June 30, 2000
Business Machines & Software
Electronics
Health Care/Drugs & Medicine
Telephone
Retail
Miscellaneous Finance
Other
7% 5% 5% 3% 2% 2%76%100%
Other Information
Operating Expenses** 0.50%
Total Portfolio Net Assets $20.5
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
Charles Schwab Investment Management, Inc.Schwab Select Annuity(TM)
Dreyfus Variable Investment Fund, Growth and Income
Portfolio
For period ending
June 30, 2000
Fund Inception Date: May 2, 1994
MORNINGSTAR CATEGORY: LARGE VALUE
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
The Dreyfus Corporation
Portfolio Manager
Douglas D. Ramos
Investment Orientation
Seeks long-term capital growth, current income and growth of income consistent
with reasonable investment risk. To pursue this goal, it invests in stocks,
bonds and money market instruments of domestic and foreign issuers.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for growth. A fair amount of risk is
acceptable in exchange for potentially higher returns. This person's time
horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
General Electric 4.26%
Intel 3.87%
Citigroup 2.45%
HCA-Healthcare 2.04%
Merck & Co. 2.02%
Exxon Mobil 1.91%
Royal Dutch Petroleum, ADR 1.88%
IBM 1.68%
Coastal 1.60%
Pfizer 1.58%
Total 23.29%
Portfolio Composition
As of June 30, 2000
Electronic Technology
Finance
Utilities
Health Technology
Producer Manufacturing
Technology Services
Consumer Services
Energy Minerals
Consumer Non-Durables
Health Services
Other
18%15%10%10% 7% 7% 6% 6% 5% 3%13%100%
Other Information
Operating Expenses** 0.78%
Total Portfolio Net Assets $461.90
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity. **Total annualized operating expenses as a percentage of average
net assets as of 6/30/2000. Actual expenses may vary. In some cases the expenses
have been adjusted to reflect voluntary expense caps..
The Dreyfus Corporation Schwab Select Annuity(TM)
Federated American Leaders Fund II
For period ending
June 30, 2000
Fund Inception Date: February 10, 1994
MORNINGSTAR CATEGORY: LARGE VALUE
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Federated Investment Management Company
Portfolio Managers
Michael P. Donnelly, CFA
Arthur J. Barry ,CFA
Investment Orientation
Seeks long-term growth of capital by investing typically at least 65% of assets
in common stock of "blue chip" companies. The Fund utilizes a relative value
investment decision-making process and may also invest in convertibles and other
securities.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for growth. A fair amount of risk is
acceptable in exchange for potentially higher returns. This person's time
horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
Sun Microsystems, Inc. 2.8%
News Corp. Ltd., PFD ADR 2.3%
Viacom, Inc., Class B 2.2%
Koninklijke (Royal) Philips Electronics 2.1%
First Data Corp. 2.0%
ABB AB, ADR, 144A . 1.7%
Exxon Mobil Corp. 1.7%
U.S. West, Inc. 1.7%
GTE Corp. 1.7%
Boeing Co. 1.7%
Total 19.9%
Portfolio Composition
As of June 30, 2000
Financials
Technology
Consumer Staples
Consumer Cyclicals
Health Care
Capital Goods
Energy
Other
17%16%12%10%10%10% 8%17%100%
Other Information
Operating Expenses** 0.88%
Total Portfolio Net Assets $457.71
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
Federated Investment Management Company Schwab Select Annuity(TM)
Prudential Series Fund Equity Class II Portfolio
For period ending
June 30, 2000
Fund Inception Date: May 4, 1999
MORNINGSTAR CATEGORY: LARGE VALUE
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Prudential Investment Corporation
Portfolio Managers
Tom Jackson
Phil Schettewi
Investment Orientation The portfolio seeks capital appreciation through
investment primarily in stocks of major, established corporations as well as
stocks of smaller companies. The Portfolio consists mainly of common
stocks of major, established corporations whose valuations appear to offer
opportunities for above-average appreciation. Its objective is to provide a
total return greater than that of the broad-based stock market indices such as
S&P 500.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for growth. A fair amount of risk is
acceptable in exchange for potentially higher returns. This person's time
horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
--------------
Eastman Kodak Co. 3.7%
Tenet Healthcare 3.6%
Well Point Health Networks 3.4%
HCA-The Healthcare Company 3.2%
Unitedhealth Group, Inc. 3.0%
Total Fina. Elf S.A. 2.9%
Chubb Corp. 2.5%
Darden Restaurants, Inc. 2.4%
Compaq Computer Corp. 2.1%
Alcoa, Inc. 2.0%
Total 28.8%
Portfolio Composition
As of June 30, 2000
Consumer Growth/Stable
Industrial
Cash & Equiv.
Finance
Consumer Cyclical
Technology
Energy
Utility
28%16%16%14% 8% 7% 6% 5%100%
Other Information
Operating Expenses** 0.87%
Total Portfolio Net Assets $0.6
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
Prudential Investment Corporation Schwab Select Annuity(TM)
SAFECO Resource Series Trust Equity Portfolio
For period ending
June 30, 2000
Fund Inception Date: April 3, 1987
MORNINGSTAR CATEGORY: LARGE VALUE
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
SAFECO Asset Management Company
Portfolio Manager
Richard D. Meagley
Investment Orientation
Seeks long-term growth of capital and reasonable current income. The Portfolio
invests principally in common stocks or securities convertible into common
stocks. In selecting stocks for the portfolio, the fund manager looks for
companies that have demonstrated consistent earnings growth as well as
attractive dividend income.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for growth. A fair amount of risk is
acceptable in exchange for potentially higher returns. This person's time
horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
--------------
Washigton Mutual, Inc. 5.4%
General Electric Co. 5.2%
Microsoft Corp. 4.8%
Intel Corp. 4.8%
Johnson & Johnson 3.4%
Citigroup, Inc. 2.7%
American Int'l Group 2.6%
Pfizer, Inc. 2.6%
Lucent Technology 2.6%
Exxon Mobil Corp. 2.6%
Total 36.7%
Portfolio Composition
As of June 30, 2000
Technology
Financials
Capital Goods
Health Care
Consumer Staples
Communication Services
Consumer Cyclicals
Other
25%17%13%12%10%10% 5% 8%100%
Other Information
Operating Expenses** 0.79%
Total Portfolio Net Assets $595.62
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity. **Total annualized operating expenses as a percentage of average
net assets as of 6/30/2000. Actual expenses may vary. In some cases the expenses
have been adjusted to reflect voluntary expense caps.
SAFECO Asset Management Company Schwab Select Annuity(TM)
Scudder Variable Life Investment Fund Growth and
Income Portfolio
For period ending
June 30, 2000
Fund Inception Date: May 2, 1994
MORNINGSTAR CATEGORY: LARGE VALUE
MORNINGSTAR CATEGORY: LARGE VALUE
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Scudder Kemper Investments, Inc.
Portfolio Managers
Kathleen T. Millard, (Lead) Gregory Adams
Investment Orientation
Seeks long-term growth of capital, current income and growth of income. The
Portfolio seeks to reduce risk by diversifying widely among industries and
companies. The Portfolio also invests primarily in dividend-paying stocks, whose
prices have historically tended to fall less in down markets.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for growth. A fair amount of risk is
acceptable in exchange for potentially higher returns. This person's time
horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets. Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
Corning, Inc. 5.4%
Intel Corp. 5.2%
Oracle Systems Corp. 3.8%
Exxon Mobil Corp. 2.9%
General Electric Co. 2.8%
Citigroup, Inc. 2.7%
American Home Products Corp. 2.7%
PepsiCo, Inc. 2.5%
American International Group, Inc. 2.4%
Marsh & McLennan Companies, Inc. 2.4%
Total 32.8%
Portfolio Composition
As of June 30, 2000
Technology
Financial
Health
Manufacturing
Energy
Communications
Consumer Staples
Other
20%17%12%11% 9% 8% 7%16%100%
Other Information
Operating Expenses** 0.54%
Total Portfolio Net Assets $189.4
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
Scudder Kemper Investments, Inc. Schwab Select Annuity(TM)
Dreyfus Variable Investment Fund, Appreciation Portfolio
(Formerly Dreyfus VIF Capital
Appreciation Portfolio)
For period ending
June 30, 2000
Fund Inception Date: April 5, 1993
MORNINGSTAR CATEGORY: LARGE BLEND
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
The Dreyfus Corporation
Portfolio Manager
Fayez Sarofim Co.
Investment Orientation
The Portfolio seeks long-term capital growth consistent with the preservation of
capital; current income is a secondary goal. To pursue these goals, the
portfolio invests in common stocks focusing on "blue chip" companies with total
market values of more than $5 billion at the time of purchase.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for growth. A fair amount of risk is
acceptable in exchange for potentially higher returns. This person's time
horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
Intel 8.48%
Pfizer 6.09%
General Electric 5.04%
Cisco Systems 4.17%
Merck & Co. 3.25%
Johnson & Johnson 2.93%
Citigroup 2.73%
Microsoft 2.73%
Hewlett-Packard 2.68%
Exxon Mobil 2.61%
Total 40.71%
Portfolio Composition
As of June 30, 2000
Health Care
Technology
Electronics
Finance-Misc.
Capital Goods
Food Beverage & Tobacco
Energy
Communication Service & Manufacturing
Household Products-Misc.
Banking
Other
16%13%10% 8% 8% 7% 6% 4% 4% 4%20%100%
Other Information
Operating Expenses** 0.77%
Total Portfolio Net Assets $1,024.41
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity. **Total annualized operating expenses as a percentage of average
net assets as of 6/30/2000. Actual expenses may vary. In some cases the expenses
have been adjusted to reflect voluntary expense caps.
The Dreyfus Corporation Schwab Select Annuity(TM)
INVESCO VIF-Equity Income Fund
For period ending
June 30, 2000
Fund Inception Date: August 10, 1994
MORNINGSTAR CATEGORY: LARGE BLEND
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
INVESCOFunds Group, Inc.
Portfolio Managers
Charles P. Mayer (co-manager)
D. Jerry Paul, CFA, CPA (co-manager)
Investment Orientation
Seeks capital appreciation with high current income as a secondary goal.
Normally invests at least 65% of its total assets in dividend-paying common
stocks and a portion of total assets may be invested in equity securities that
do not pay regular dividends. Remaining assets are invested in other
income-producing securities, such as corporate bonds.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for growth. A fair amount of risk is
acceptable in exchange for potentially higher returns. This person's time
horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
Kansas City Southern Industries 3.03%
Allmerica Financial 2.69%
Target Corp. 2.52%
Cisco Systems 2.28%
General Electric 2.01%
General Motors Class H Shrs 1.94%
RadioShack Corp. 1.82%
SBC Communications 1.79%
Colgate-Palmolive Co. 1.76%
U.S. West 1.73%
Total 21.57%
Portfolio Composition
As of June 30, 2000
Finance
Consumer Staples
Fixed Income Securities
Communication Services
Technology
Consumer Cyclicals
Energy
Other
16%12%11% 9% 9% 9% 8%26%100%
Other Information
Operating Expenses** 1.05%
Total Portfolio Net Assets $117.24
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
INVESCO Funds Group, Inc. Schwab Select Annuity(TM)
Schwab S&P 500 Portfolio
For period ending
June 30, 2000
Fund Inception Date: November 1, 1996
MORNINGSTAR CATEGORY: LARGE BLEND
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Charles Schwab Investment Management, Inc.
Portfolio Manager
Geri Hom
Investment Orientation
Tracks the price and dividend performance (total return) of common stocks of
U.S. companies as represented by the S&P 500 Index.
Who is Most Likely to ChooseThis Portfolio?*
Long-term investors who are looking for growth. A fair amount of risk is
acceptable in exchange for potentially higher returns. This person's time
horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
-------- --------------
General Electric Co. 3.92%
Intel Corp. 3.34%
Cisco Systems, Inc. 3.30%
Microsoft Corp. 3.16%
Pfizer, Inc. 2.27%
Exxon Mobil Corp. 2.05%
Wal-Mart Stores, Inc. 1.93%
Oracle Corp. 1.79%
Citigroup, Inc. 1.52%
Nortel Networks Corp. 1.52%
Total 24.80%
Portfolio Composition
As of June 30, 2000
Business Machines & Software
Electronics
Health Care/Drugs & Medicine
Telephone
Retail
Miscellaneous Finance
Producer Goods & Manufacturing
Other
16%12%11% 6% 5% 5% 5%40%100%
Other Information
Operating Expenses** 0.28%
Total Portfolio Net Assets $128.8
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity. **Total annualized operating expenses as a percentage of average
net assets as of 6/30/2000. Actual expenses may vary. In some cases the expenses
have been adjusted to reflect voluntary expense caps.
Charles Schwab Investment Management, Inc. Schwab Select Annuity(TM)
Scudder Variable Life Investment Fund Capital Growth Portfolio
For period ending
June 30, 2000
Fund Inception Date: July 16, 1985
MORNINGSTAR CATEGORY: LARGE BLEND
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Scudder Kemper Investments, Inc.
Portfolio Managers
William F. Gadsden, Co-lead
Bruce F. Beaty, Co-lead
Investment Orientation
Seeks to maximize long-term capital growth through a broad and flexible
investment program. The Portfolio invests in marketable securities, principally
common and preferred stocks and consistent with its objective of long-term
capital growth.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for growth. A fair amount of risk is
acceptable in exchange for potentially higher returns. This person's time
horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
Intel Corp. 4.5%
General Electric Co. 4.3%
Pfizer, Inc. 4.0%
Microsoft Corp. 3.8%
Cisco Systems, Inc. 3.7%
EMC Corp. 2.9%
American Express Co. 2.5%
Oracle Corp. 2.3%
PepsiCo, Inc. 2.3%
Merck & Co., Inc. 2.2%
Total 32.5%
Portfolio Composition
As of June 30, 2000
Technology
Health
Financial
Consumer Staples
Communications
Media
Manufacturing
Other
31%17% 9% 8% 8% 7% 7%13%100%
Other Information
Operating Expenses** 0.48%
Total Portfolio Net Assets $1303.7
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity. **Total annualized operating expenses as a percentage of average
net assets as of 6/30/2000. Actual expenses may vary. In some cases the expenses
have been adjusted to reflect voluntary expense caps.
Scudder Kemper Investments, Inc. Schwab Select Annuity(TM)
Alger American Growth Portfolio
For period ending
June 30, 2000
Fund Inception Date: January 9, 1989MORNINGSTAR CATEGORY: LARGE GROWTH
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Fred Alger Management, Inc.
Portfolio Managers
David D. Alger
Ronald Tartaro
Investment Orientation
Seeks long-term capital appreciation by focusing on growing companies that
generally have broad product lines, markets, financial resources and depth of
management. Under normal circumstances, the portfolio invests primarily in the
equity securities of large companies. The portfolio considers a large company to
have a market capitalization of $1 billion or greater.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for growth. A fair amount of risk is
acceptable in exchange for potentially higher returns. This person's time
horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
--------------
Pfizer, Inc. 4.7%
Applied Materials, Inc. 3.6%
Halliburton Co. 3.6%
Microsoft Corp. 3.6%
Amgen, Inc. 3.6%
Intel Corp. 3.6%
Cisco Systems, Inc. 3.5%
American Home Products Corp. 3.2%
Corning, Inc. 3.0%
Dell Computer Corp. 3.0%
Total 35.4%
Portfolio Composition As of June 30, 2000
Semiconductors
Communication Equipment
Pharmaceuticals
Retailing
Financial Services
Computer Related & Business Equipment
Computer Software
Other 12%10% 8% 8% 6% 6% 5%45%100%
Other Information
Operating Expenses** 0.79%
Total Portfolio Net Assets $3,745.1
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
Fred Alger Management, Inc. Schwab Select Annuity(TM)
Janus Aspen Series Growth Portfolio
For period ending
June 30, 2000
Fund Inception Date: September 13, 1993
MORNINGSTAR CATEGORY: LARGE GROWTH
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Janus
Portfolio Manager
Blaine Rollins
Investment Orientation
A diversified portfolio that seeks long-term growth of capital, in a manner
consistent with the preservation of capital, by investing primarily in common
stocks of a large number of issuers of any size, it generally invests in larger,
more established companies.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for growth. A fair amount of risk is
acceptable in exchange for potentially higher returns. This person's time
horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
Time Warner, Inc. 7.15%
Comcast Corp. 4.29%
Cisco Systems, Inc. 3.32%
Linear Technology Corp. 2.98%
Enron Corp. 2.91%
Texas Instruments, Inc. 2.89%
Viacom, Inc. - Class B 2.85%
Maxim Integrated Products, Inc. 2.79%
General Electric Co. 2.78%
Nokia Oyj 2.74%
Total 34.70%
Portfolio Composition As of June 30, 2000
Technology
Consumer, Cyclical
Financial
Industrial
Energy
Diversified
Consumer, Non-cyclical
Utilities 34%32%15% 7% 4% 3% 3% 2%100%
Other Information
Operating Expenses** 0.67%
Total Portfolio Net Assets $3,910.7
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets
as of 6/30/2000. Actual expenses may vary. In some cases the expenses have
been adjusted to reflect voluntary expense caps.
Janus Schwab Select Annuity(TM)
Montgomery Variable Series: Growth Fund
For period ending
June 30, 2000
Fund Inception Date: February 9, 1996
MORNINGSTAR CATEGORY: MID-CAP VALUE
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Montgomery Asset Management, LLC
Portfolio Manager
Andy Pratt
Investment Orientation
Seeks capital appreciation by investing primarily in companies having market
capitalization of $1 billion or more, and seeks companies with accelerating
revenues and earnings growth. The Fund seeks growth at a reasonable value.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for high growth. Substantial year-to-year
volatility in value is acceptable in exchange for a potentially high long-term
return. This person's time horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
General Electric 3.9%
Intel Corp.. 3.6%
Cisco Systems 3.5%
Microsoft Corp. 3.3%
Exxon Mobil Corp. 2.5%
Oracle Systems Corp. 2.1%
Wal-Mart Stores, Inc. 2.1%
Nortel Networks Corporation 2.0%
Citigroup, Inc. 1.9%
Pfizer, Inc. 1.9%
Total 26.8 %
Portfolio Composition
As of June 30, 2000
Technology
Finance
Health Care
Consumer Services
Capital Goods
Telecommunication
Energy
Other
31%14%11%10% 8% 7% 5%14%100%
Other Information
Operating Expenses** 1.25%
Total Portfolio Net Assets $22.83
($millions)*When you invest in the Schwab Select Annuity, you do not invest
directly in the annuity portfolios. You invest in sub-accounts of Great-West
Life & Annuity Insurance Company (First Great-West Life & Annuity Insurance
Company in New York State) that, in turn, invest in the annuity portfolios
you've selected. Your account is then credited with variable accumulation units
in that sub-account. The fees and charges associated with the sub-accounts and
the terms and conditions of your investment are detailed in the prospectus for
the Schwab Select Annuity.
**Total annualized operating expenses as a percentage of average net assets
as of 6/30/2000. Actual expenses may vary. In some cases the expenses have
been adjusted to reflect voluntary expense caps.
Montgomery Asset Management, LLC Schwab Select AnnuityTM
Janus Aspen Series International Growth Portfolio
For period ending
June 30, 2000
Fund Inception Date: May 2, 1994
MORNINGSTAR CATEGORY: FOREIGN STOCK
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Janus
Portfolio Managers
Helen Young Hayes
Laurence Chang
Investment Orientation
A diversified portfolio that seeks long-term growth of capital by investing
primarily in the common stocks of foreign issuers of any size. The Portfolio
normally invests at least 65% of its total assets in issuers from at least five
different countries, excluding the United States.
Investments in international stock portfolios are subject not only to the usual
market volatility, but may also be affected by other risks, including foreign
taxes, differences in financial standards, currency fluctuations and political
and economic instability.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for high growth. Substantial year-to-year
volatility in value is acceptable in exchange for a potentially high long-term
return. This person's time horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
--------------
Nokia Oyj 5.03%
China Telecom, Ltd. 3.27%
Telefonos de Mexico S.A. (ADR) 2.94%
Vodafone AirTouch PLC 2.91%
NTT DoCoMo, Inc. 2.80%
Nortel Networks Corp. 2.59%
Check Point Software Tech., Ltd. 1.93%
Sony Corp. 1.93%
Total Fina Elf S.A. 1.91%
Koninklijke (Royal) Philips Electronics N.V. 1.86%
Total 27.17%
Portfolio Composition
As of June 30, 2000
Japan
United Kingdom
France
Canada
Hong Kong
Finland
Netherlands
Other
14%11% 8% 7% 7% 7% 6%40%100%
Other Information
Operating Expenses** 0.72%
Total Portfolio Net Assets $1,307.8
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
Janus Schwab Select Annuity(TM)
Deutsche Asset Management VIT Small Cap Index Fund
(formerly BT Insurance Funds Trust
Small Cap Index Fund)
For period ending
June 30, 2000
Fund Inception Date: August 25, 1997
MORNINGSTAR CATEGORY: SMALL BLEND
MORNINGSTAR CATEGORY: FOREIGN STOCK
LOW RISK HIGH
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Bankers Trust Company
Portfolio Manager
James Creighton
Investment Orientation
Seeks to match the performance, before expenses, of the Russell 2000(R)
Index***.
Small company stocks are generally subject to greater volatility than stocks of
large, blue chip corporations.
***The Russell 2000(R) Index is a trademark of the Frank Russell Company and has
been licensed for use by the Fund's investment adviser.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for high growth. Substantial year-to-year
volatility in value is acceptable in exchange for a potentially high long-term
return. This person's time horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
MRV Communications, Inc. .33%
Digital Island, Inc. .31%
ADCTelecommunications, Inc. .24%
Coherent, Inc. .20%
MGC Communications, Inc. .20%
Plexus Corp. .19%
Netro Corp. .19%
Informatica Corp. .19%
Varian Semiconductor Equip. Assoc., Inc. .19%
Plantronics, Inc. .18%
Total 2.22%
Portfolio Composition
As of June 30, 2000
Technology
Financial Services
Consumer Discretionary
Health Care
Producer Durables
Materials & Processing
Utilities
Other
21%18%16%12% 9% 8% 7% 9%100%
Other Information
Operating Expenses** 0.45%
Total Portfolio Net Assets $87.75
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
Bankers Trust Company Schwab Select Annuity(TM)
SAFECO Resource Series Trust Growth Opportunities Portfolio
(formerly SAFECO RSTGrowth Portfolio)
For period ending
June 30, 2000
Fund Inception Date: January 7, 1993
MORNINGSTAR CATEGORY: SMALL BLEND
Low Risk High
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
SAFECO Asset Management Company
Portfolio Manager
Thomas M. Maguire
Investment Orientation
Seeks growth of capital and the increased income that ordinarily follows from
such growth. Invests primarily in common stocks selected for appreciation
potential.
Small company stocks are generally subject to greater volatility than stocks of
large, blue chip corporations. Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for high growth. Substantial year-to-year
volatility in value is acceptable in exchange for a potentially high long-term
return. This person's time horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
NCO Group, Inc. 5.8%
Rent-Way 5.8%
Rent-a-Center, Inc. 5.5%
PolyMedica Corp. 5.3%
United Stationers, Inc. 4.8%
S3, Inc. 3.3%
Intranet Solutions 2.8%
J D Edwards & Co. 2.5%
AMFM, Inc. 2.4%
Damark International, Inc. 2.2%
Total 40.4%
Portfolio Composition
As of June 30, 2000
Consumer Cyclicals
Technology
Health Care
Consumer Staples
Capital Goods
Finance
Communication Serices
30%24%20%11% 7% 4% 4%100%
Other Information
Operating Expenses** 0.79%
Total Portfolio Net Assets $399.00
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity. **Total annualized operating expenses as a percentage of average
net assets as of 6/30/2000. Actual expenses may vary. In some cases the expenses
have been adjusted to reflect voluntary expense caps.
SAFECO Asset Management Company Schwab Select Annuity(TM)
Baron Capital Asset Fund: Insurance Shares
For period ending
June 30, 2000
Fund Inception Date: October 1, 1998
MORNINGSTAR CATEGORY: SMALL GROWTH
Low Risk High
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
BAMCO, Inc.
Portfolio Manager
Ronald Baron
Investment Orientation
Capital appreciation through investments in securities of small and medium sized
companies with undervalued assets or favorable growth prospects.
Small company stocks are generally subject to greater volatility than stocks of
large, blue chip corporations.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for high growth. Substantial year-to-year
volatility in value is acceptable in exchange for a potentially high long-term
return. This person's time horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
Charles Schwab Corp. 5.5%
ChoicePoint, Inc. 4.0%
NTL, Inc. 3.7%
Apollo Group, Inc. 3.5%
Citizen Communications. 3.2%
Flextronics International, Ltd. 3.2%
Southern Union Co. 3.1%
Ethan Allen Interiors, Inc. 3.0%
Rural Cellular Corp. 3.0%
DeVry, Inc. 2.9%
Total 35.1%
Portfolio Composition
As of June 30, 2000
Communications
Media & Entertainment
Retail Stores & Restaurants
Education
Business Services
Financial
Amusements & Recreation
Other
21%13%10% 8% 7% 7% 6%28%100%
Other Information
Operating Expenses** 1.50%
Total Portfolio Net Assets $60.5
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
BAMCO, Inc. Schwab Select Annuity(TM)
Berger IPT - Small Company Growth Fund
For period ending
June 30, 2000
Fund Inception Date: May 1, 1996
MORNINGSTAR CATEGORY: SMALL GROWTH
Low Risk High
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Berger LLC
Portfolio Managers
Interim: Mark Sunderhuse
Jay W. Tracey, CFA
Investment Orientation
The investment objective of the Fund is capital appreciation. It invests
primarily in equity securities of small companies whose market capitalization,
at the time of initial purchase, is less than the 12-month average of the
maximum market capitalization for companies included in the Russell 2000 Index.
Small-company stocks are generally subject to greater volatility than stocks of
large, blue chip corporations.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who are looking for high growth. Substantial year-to-year
volatility in value is acceptable in exchange for a potentially high long-term
return. This person's time horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
Forrester Research, Inc. 2.8%
Cephalon, Inc. 2.7%
The Corporate Executive Board Co. 2.3%
Tollgrade Communications, Inc. 2.1%
Cox Radio, Inc. 2.1%
Dupont Photomasks, Inc. 2.0%
PRI Automation, Inc. 2.0%
Onyx Software Corporation 2.0%
Newport Corp. 1.9%
Universal Electronics, Inc. 1.9%
Total 21.8%
Portfolio Composition
As of June 30, 2000
Technology
Health Care
Capital Equipment
Cash & Equivalents
Energy
Consumer Cyclicals
Retail
Financial
42%20% 9% 9% 8% 7% 3% 2%100%
Other Information
Operating Expenses** 1.01%
Total Portfolio Net Assets $83.8
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
Berger LLC Schwab Select Annuity(TM)
Federated Utility Fund II
For period ending
June 30, 2000
Fund Inception Date: February 10, 1994
MORNINGSTAR CATEGORY: SPECIALTY-UTILITIES
Low Risk High
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Federated Investment Management Company
Portfolio Managers
Steven J. Lehman, CFA
Linda A. Duessel, CFA, CPA
Richard J. Lazarchic, CFA
Investment Orientation
Seeks moderate capital appreciation and high current income by investing in a
diversified portfolio of the equity and debt securities of utility companies.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who want a narrowly focused investment. Portfolios in this
category invest in companies from a narrowly defined industry or segment of the
market and carry substantially more risk than a broadly diversified equity
portfolio. This person's time horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
El Paso Energy Corp. 3.9%
Cox Communications, Inc. 3.6%
Coastal Corp. 3.3%
Enron Corp. 2.9%
Williams Companies, Inc. 2.7%
Sprint Corp. (FON Group) 2.4%
Vodafone Airtouch 2.4%
Alltel Corp. 2.3%
GTE Corp. 2.1%
Apache Corp. 2.0%
Total 27.6%
Portfolio Composition
As of June 30, 2000
Telecommunications
Electrics/Natural Gas
Non-Utility
Cash
48%29%19% 4%100%
Other Information
Operating Expenses** 0.94%
Total Portfolio Net Assets $188.59
($millions)*When you invest in the Schwab Select Annuity, you do not invest
directly in the annuity portfolios. You invest in sub-accounts of Great-West
Life & Annuity Insurance Company (First Great-West Life & Annuity Insurance
Company in New York State) that, in turn, invest in the annuity portfolios
you've selected. Your account is then credited with variable accumulation units
in that sub-account. The fees and charges associated with the sub-accounts and
the terms and conditions of your investment are detailed in the prospectus for
the Schwab Select Annuity.
**Total annualized operating expenses as a percentage of average net assets
as of 6/30/2000. Actual expenses may vary. In some cases the expenses have
been adjusted to reflect voluntary expense caps.
Federated Investment Management Company Schwab Select Annuity(TM)
INVESCO VIF-Technology Fund
For period ending
June 30, 2000
Fund Inception Date: May 21, 1997
MORNINGSTAR CATEGORY: SPECIALTY-TECHNOLOGY
Low Risk High
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
INVESCO Funds Group, Inc.
Portfolio Manager
William R. Keithler, CFA
Investment Orientation
The Fund seeks capital appreciation and invests primarily in the equity
securities of companies engaged in technology-related industries.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who want a narrowly focused investment. Portfolios in this
category invest in companies from a narrowly defined industry or segment of the
market and carry substantially more risk than a broadly diversified equity
portfolio. This person's time horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
Cisco Systems 1.95%
SDL,Inc. 1.93%
CIENA Corp. 1.74%
Siebel Systems 1.53%
Nokia Corp. Sponsored ADR Ord Shrs 1.51%
PMC-Sierra, Inc. 1.42%
EMC Corp. 1.42%
Altera Corp. 1.41%
Brocade Communications Systems 1.38%
E-Tek Dynamics 1.36%
Total 15.65%
Portfolio Composition
As of June 30, 2000
Electronics- Semiconductors
Computer Software & Service
Cash & Cash Equivalents
Comm-Equip/Mfg
Equipment-Semiconductor
Computers-Networking
Other
21%19%10% 9% 6% 5%30%100%
Other Information
Operating Expenses** 1.31%
Total Portfolio Net Assets $486.71
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity.
**Total annualized operating expenses as a percentage of average net assets as
of 6/30/2000. Actual expenses may vary. In some cases the expenses have been
adjusted to reflect voluntary expense caps.
INVESCO Funds Group, Inc. Schwab Select Annuity(TM)
Van Kampen Life Inv. Trust Morgan Stanley Real Estate Securities Portfolio
Class I (Formerly Van Kampen LIT Morgan Stanley Real Estate Securities
Portfolio)
For period ending
June 30, 2000
Fund Inception Date: July 3, 1995
MORNINGSTAR CATEGORY: SPECIALTY-REAL ESTATE
Low Risk High
MONEY MARKET BOND HIGH-YIELD BOND BALANCED LARGE-CAP MID-CAP FOREIGN SMALL-CAP
SPECIALTY DEVELOPING/EMERGING MARKETS
For illustrative purposes only.
Investment Adviser
Van Kampen Asset Management, Inc.
Portfolio Managers
Theodore R. Bigman
Douglas Funke
Investment Orientation
Primarily seeks long-term growth of capital, and secondarily seeks current
income, from a portfolio of companies operating in the real estate industry.
Who is Most Likely to Choose This Portfolio?*
Long-term investors who want a narrowly focused investment. Portfolios in this
category invest in companies from a narrowly defined industry or segment of the
market and carry substantially more risk than a broadly diversified equity
portfolio. This person's time horizon is generally greater than 10 years.
Please note that this portfolio type could also play an important role in an
overall asset allocation plan which contains multiple portfolios representing
various asset classes. For example, a conservative asset allocation plan may
include a portion in higher risk asset classes like foreign and small-cap, and
an aggressive plan may include a portion in lower risk asset classes like bond
portfolios and money markets.
Top 10 Holdings
As of June 30, 2000 % of Portfolio
---------------
Starwood Hotels & Resorts Worlwide 5.53%
Essex Property Trust, Inc. 5.10%
Equity Office Properties Trust 4.89%
Arden Realty Group, Inc. 4.77%
Public Storage 4.76%
Avalon Bay Communities 4.71%
Boston Properties, Inc. 4.36%
Chateau Communities 4.31%
Simon Property 4.16%
Taubman Centers, Inc. 4.11%
Total 51.06%
Portfolio Composition
As of June 30, 2000
Office
Apartments
Regional Malls
Diversified
Lodging
Other
30%19% 8% 8% 7%28%100%
Other Information
Operating Expenses** 1.09%
Total Portfolio Net Assets $185.25
($millions)
*When you invest in the Schwab Select Annuity, you do not invest directly in the
annuity portfolios. You invest in sub-accounts of Great-West Life & Annuity
Insurance Company (First Great-West Life & Annuity Insurance Company in New York
State) that, in turn, invest in the annuity portfolios you've selected. Your
account is then credited with variable accumulation units in that sub-account.
The fees and charges associated with the sub-accounts and the terms and
conditions of your investment are detailed in the prospectus for the Schwab
Select Annuity. **Total annualized operating expenses as a percentage of average
net assets as of 6/30/2000. Actual expenses may vary. In some cases the expenses
have been adjusted to reflect voluntary expense caps.
Van Kampen Asset Management, Inc.Schwab Select Annuity(TM)
<PAGE>
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Variable Annuity-1 Series Account
Semi- Annual Report Form N-30D
File Nos. 333-01153, 811-07549
The information required to be contained in this report for the period ending
June 30, 2000 includes the attached letter to contract holders and the following
previously filed semi-annual reports for the underlying funds of the
above-referenced Registrant which incorporated herein by reference:
Alger American Fund
File No. 811-05550
Form N-30D
Filed via EDGAR and accepted on August 30, 2000
Accession No. 0000930413-00-001157.
American Century Variable Portfolios, Inc.
File No. 811-05188
Form N-30D
Filed via EDGAR and accepted on August 31, 2000
Accession No. 0000814680-00-000010.
Baron Capital Asset Fund: Insurance Shares
File No. 811-08505
Form N-30D
Filed via EDGAR and accepted on August 15, 2000
Accession No. 0000950116-00-002022.
Berger IPT-Small Company Growth Fund
File No. 811-07367
Form N-30D
Filed via EDGAR and accepted on August 30, 2000
Accession No. 0001035704-00-000680.
Deutsche Asset Management Variable Insurance Trust
File No. 811-07507
Form N-30D
Filed via EDGAR and accepted on August 18, 2000
Accession No. 0000950169-00-001073.
Dreyfus Variable Investment Fund
File No. 811-05125
Form N-30D
Filed via EDGAR and accepted on August 21, 2000
Accession No. 0000813383-00-000022.
Federated Insurance Series
File No. 811-08042
Form N-30D
Filed via EDGAR and accepted on August 21, 2000
Accession No. 0000912577-00-000019.
INVESCO Variable Investment Funds, Inc.
File No. 811-08038
Form N-30D
Filed via EDGAR and accepted on August 28, 2000
Accession No. 0000912744-00-000011.
Janus Aspen Series
File No. 811-07736
Form N-30D
Filed via EDGAR and accepted on August 23, 2000
Accession No. 0001012709-00-000754.
Montgomery Funds III: Montgomery Variable Series-Growth Fund
File No. 811-08782
Form N-30D
Filed via EDGAR and accepted on September 11, 2000
Accession No. 0000912057-00-004829.
The Prudential Series Fund, Inc.
File No. 811-03623
Form N-30D
Filed via EDGAR and accepted on September 1, 2000
Accession No. 0000950130-00-004829.
SAFECO Resource Series Trust
File No. 811-04717
Form N-30D
Filed via EDGAR and accepted on August 31, 2000
Accession No. 0000912057-00-039707.
Schwab Annuity Portfolios
File No. 811-08314
Form N-30D
Filed via EDGAR and accepted on September 8, 2000
Accession No. 0000912057-00-040347.
Scudder Variable Life Investment Fund
File No. 811-04257
Form N-30D
Filed via EDGAR and accepted on August 23, 2000
Accession No. 0000088053-00-000931.
Strong Variable Insurance Funds, Inc.: Schafer Value Fund II
File No. 811-06553
Form N-30D
Filed via EDGAR and accepted on September 11, 2000
Accession No. 0000950131-00-005228.
Van Kampen Life Investment Trust
File No. 811-04424
Form N-30D
Filed via EDGAR and accepted on August 30, 2000
Accession No. 0000950137-00-003904.