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The Guardian Investor
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Retirement Asset Manager(SM)
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This brochure contains supplements to the prospectuses for (i) the Individual
Flexible Premium Deferred Variable Annuity Contracts issued by The Guardian
Insurance & Annuity Company, Inc. ("GIAC") through The Guardian Separate Account
E and marketed under the name "The Guardian Investor Retirement Asset Manager,"
(ii) the prospectus for The Guardian Small Cap Stock Fund, and (iii) MFS Growth
with Income Series, a series of MFS Variable Insurance Trust. Additionally, set
forth below the Table of Contents are replacement paragraphs for certain of the
retirement planning materials that are printed with the prospectuses for The
Guardian Retirement Asset Manager and its Variable investment options. This
Supplement should be retained with the Prospectus for future reference.
Table of Contents
Supplement Dated December 22, 1997 to Prospectus Dated September 2, 1997
For The Guardian Investor Retirement Asset Manager ....................... 2
Supplement Dated November 13, 1997 to Prospectus Dated May 1, 1997
For The Guardian Small Cap Fund .......................................... 4
Supplement Dated November 15, 1997 to Prospectus Dated May 1, 1997
For MFS Growth With Income Series ........................................ 4
The first three paragraphs appearing on page 14 of the retirement planning
material at the front of this brochure should correctly appear as shown below.
The Standard Death Benefit
For contractowners who purchase contract having an annuitant who is age 75 or
younger on the issue date, The Guardian Insurance & Annuity Company, Inc.
("GIAC") will pay your designated beneficiaries the greater of (i) the total of
all your purchase payments (all that you have invested) less any amounts you
have previously withdrawn, any applicable charges and any applicable annuity
taxes, or (ii) the accumulation value of the contract at the time we are
notified of the annuitant's death, less any applicable annuity taxes. The
standard guarantee of a death benefit at least equal to the total amount of all
premium payments that have not been previously withdrawn allows you, the
contractowner, the ability to take appropriate investment risks as you plan for
retirement, while not having to worry about the amount that may be paid to your
heirs in the event of the annuitant's death.
If the annuitant is over age 75 at the time the contract is issued, GIAC will
pay the beneficiary the accumulation value at the time we are notified, less any
applicable annuity taxes.
The Enhanced Death Benefit
At the time of issue, you may select the enhanced death benefit rider to the
contract which, in addition to the protections offered under the standard death
benefit, provides a death benefit on the death of the annuitant that "locks in"
any contract accumulation value gains as of the most recent seventh anniversary
of your contract. This feature is available for an additional annual charge for
contracts having an annuitant who is under age 75 at time of issue. The enhanced
death benefit rider provides a death benefit that is equal to the greater of (i)
the standard death benefit, or (ii) the accumulation value of the contract as of
the reset date immediately preceding the annuitant's date of death, plus the
amount of any premiums paid since the reset date, less the amount of all partial
withdrawals and any applicable taxes. A reset date occurs every seven years on
the contract's anniversary date. The rider expires no later than the date of the
annuitant's 85th birthday.
1
<PAGE>
Supplement dated December 22, 1997 to Prospectus dated September 2, 1997 for The
Guardian Investor Retirement Asset Manager. The following information supercedes
and replaces pages 6 and 7 of the prospectus for The Guardian Investor
Retirement Asset Manager.
Expense Table
Contractowner Transaction Expenses
Sales Charge Imposed on Purchases: ................................. None
Exchange Fee: ...................................................... None
Contingent Deferred Sales Charge:
The following charges will be assessed upon amounts withdrawn that have been in
the Contract for less than seven Contract years:
Number of Contract Years Contingent
Completed from Date of Deferred Sales Charge
the Premium Payment Percentage*
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0............................................... 7%
1............................................... 6%
2............................................... 5%
3............................................... 4%
4............................................... 3%
5............................................... 2%
6............................................... 1%
7............................................... 0%
and thereafter
The maximum contingent sales charge will be equal to 7% of the lesser of (1) the
total of all premium payments made within 7 contract years (84 months) prior to
the date of request for withdrawal or surrender; or (2) the amount withdrawn or
surrendered.
Annual Contract Fee: $35.00**
<TABLE>
<CAPTION>
Separate Account Level Annual Expenses:
(as a percentage of daily net asset For Contracts Without For Contracts With
value) Enhanced Death Benefit Enhanced Death Benefit
- --------------------------------------- ---------------------- ----------------------
<S> <C> <C>
Mortality and Expense Risk Charge 1.05% 1.05%
Administrative Charges and Expenses .20% .20%
Enhanced Death Benefit Charge 0% .20%
----- -----
Total Separate Account Annual Expenses 1.25% 1.45%
</TABLE>
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* After the first Contract year, the greater of excess of the Accumulation
Value on the date of withdrawal over the aggregate premium payments that
have not been previously withdrawn or 10% of the total premium payments
made, minus the aggregate amount of all prior partial withdrawals made in
such Contract year, can be withdrawn annually without charge. For
Contracts issued in Section 1035 exchanges, trustee to trustee transfers,
in certain IRA transfers or rollovers, or to Charitable Remainder Trusts,
this no-charge withdrawal privilege may also be exercised in the first
Contract year.
** Where required by state law, this fee may be lower.
2
<PAGE>
Investment Division Level Annual Expenses:+
(as a percentage of average net assets after expense reimbursements)
<TABLE>
<CAPTION>
Total Fund
Management Other Operating
Fees Expenses Expenses
---------- -------- ----------
<S> <C> <C> <C>
The Guardian Cash Fund .50% .04% .54%
The Guardian Bond Fund .50% .04% .54%
The Guardian Stock Fund .50% .03% .53%
The Guardian Small Cap Stock Fund .75% .55% 1.30%
Baillie Gifford International Fund .80% .18% .98%
Baillie Gifford Emerging Markets Fund 1.00% .15% 1.53%
Value Line Centurion Fund .50% .10% .60%
Value Line Strategic Asset Management Trust .50% .08% .58%
Gabelli Capital Asset Fund 1.00% .31% 1.31%
MFS Growth With Income Series++ .75% .25% 1.00%
</TABLE>
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+ These percentages reflect the actual fees and expenses incurred by each
Fund during the year ended December 31, 1996, except that the percentages
for The Guardian Small Cap Stock Fund are estimated, since the Fund has
not yet commenced operations. The percentages for Value Line Centurion
Fund and Value Line Strategic Asset Management Trust reflect (as part of
"Other Expenses" and "Total Fund Operating Expenses") the effects of
expense reimbursement arrangements pursuant to which each of these Funds
reimburses GIAC for certain administrative and shareholder servicing
expenses incurred by GIAC on their behalf.
++ The Adviser of MFS Growth With Income Series has agreed to bear expenses
for the Series, subject to reimbursement by the Series, such that the
Series' "Other Expenses" shall not exceed 0.25% of the average daily net
assets of the Series during the current fiscal year. Otherwise, "Other
Expenses" and "Total Operating Expenses" for the Series would be 1.32% and
2.07%, respectively.
The preceding tables are designed to assist the Contractowner in understanding
the various costs and expenses of the Separate Account and its underlying Funds.
(See "Charges and Deductions" and see the accompanying Fund prospectuses for a
more complete description of the various costs and expenses.)
Comparison of Contract Expenses Among Underlying Funds
(EDB = With Enhanced Death Benefit/BC = Basic Contract)
<TABLE>
<CAPTION>
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If you do not surrender or you
annuitize at the end of the
If you surrender your contract at the applicable time period: You
end of the applicable time period: would pay the following
You would pay the following expenses expenses on a $1,000 investment,
on a $1,000 investment, assuming a 5% assuming a 5% annual return on
annual return on assets: assets:
-----------------------------------------------------------------------
1 Yr. 3 Yrs. 1 Yr. 3 Yrs.
EDB BC EDB BC EDB BC EDB BC
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
The Guardian Cash Fund 90 92 111 117 20 22 61 67
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The Guardian Bond Fund 90 92 111 117 20 22 61 67
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The Guardian Stock Fund 90 92 110 117 20 22 60 67
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The Guardian Small Cap Stock Fund 98 100 135 141 28 30 85 91
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Baillie Gifford International Fund 94 96 125 131 24 26 75 81
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Baillie Gifford Emerging Markets Fund 100 102 142 148 30 32 92 98
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Value Line Centurion Fund 90 92 113 119 20 22 63 69
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Value Line Strategic Asset Management Trust 90 92 112 118 20 22 62 68
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Gabelli Capital Asset Fund 98 100 135 141 28 30 85 91
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MFS Growth With Income Series 94 97 125 132 24 27 75 82
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</TABLE>
This expense comparison assumes that the expenses reported in the tables above
will be the expenses incurred during the periods shown above. This comparison is
not a representation of past or future expenses. Actual expenses may be higher
or lower than those shown. The effect of the annual contract administration fee
was calculated by: (1) dividing the estimated total amount of such fees by the
total average net assets; (2) adding this percentage to annual expenses; and (3)
calculating the dollar amounts. Annuity taxes ranging from approximately 0.50%
to 3.5% are currently imposed by certain states and municipalities on premium
payments made under the Contract. Where applicable, such taxes reduce the amount
of each premium payment available for allocation under the Contract. See
"Charges and Deductions -- Annuity Taxes."
3
<PAGE>
The MFS Growth With Income Series
Supplement to Current Prospectus
The section of the Series' Prospectus entitled "Information Concerning Shares of
Each Series -- Purchases and Redemptions" is hereby amended to add after the
first paragraph the following:
At the sole discretion of the Trust, the Series may pay redemptions either
totally or partially by a distribution in kind of securities (instead of cash)
from the Series' portfolio. The securities distributed in such a distribution
would be valued at the same amount as that assigned to them in calculating the
net asset value for the shares being sold. Securities distributed by a Fund will
be selected by the Adviser in light of the Fund's objective and may not
generally represent a pro rata distribution of each security held in the Fund's
portfolio. If a shareholder received a distribution in-kind, the shareholder
could incur brokerage or transaction charges when converting the securities to
cash.
The date of this Supplement is November 15, 1997.
The Guardian Small Cap Stock Fund
Supplement dated November 13, 1997 to Prospectus dated May 1, 1997
Financial Highlights
The following table provides information about the financial history of The
Guardian Small Cap Stock Fund (the "Small Cap Fund"). It is based on a single
share of the Small Cap Fund outstanding for the period ended September 30, 1997.
The table is part of the Small Cap Fund's financial statements for the period
ended September 30, 1997, included in the Statement of Additional Information.
The Statement of Additional Information is incorporated by reference in the
Prospectus. The information in the table is unaudited.
Period from
April 2, 1997+ to
September 30, 1997
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Net asset value, beginning of period .......................... $ 10.00
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Income from investment operations Net investment
income/(loss) .............................................. 0.02
Net realized and unrealized gain/(loss) on investments ...... 4.21
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Net increase/(decrease) from investment operations .......... 4.23
=======
Distributions to shareholders
Dividends from net investment income ........................ --
Distributions in excess of net investment income ............ --
Distributions from net realized gain on investments ......... --
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Net asset value, end of period ................................ $ 14.23
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Total return* ................................................. 17.60%
=======
Ratios/supplemental data:
Net assets, end of period (000's omitted) ................... $62,122
Ratio of expenses to average net assets ..................... 0.98%(a)
Ratio of net investment income to average net assets ........ 0.54%(a)
Portfolio turnover .......................................... 11%
Average rate of commissions paid ............................ $ 0.039
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+ Commencement of operations.
* Total returns do not reflect the effects of charges deducted pursuant to
the terms of variable contracts issued by The Guardian Insurance & Annuity
Company, Inc. Inclusion of such charges would reduce the total return for
the period shown.
(a) Annualized.
4
