1
Supplement dated February 10, 2000 to the Prospectus dated September 13, 1999
for the Guardian Investor Retirement Asset Manager.
The following information should be read in conjunction with the
Prospectus dated September 13, 1999 for 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." This Supplement should
be retained with the Prospectus for future reference.
<PAGE>
2
The following replaces the information entitled "Annual Expenses of the Funds on
page 4 and 5 of the Prospectus"
ANNUAL EXPENSES OF THE FUNDS(3)
(as a percentage of average net assets after expense reimbursements)
Total fund
Management Other operating
fees expenses expenses
================================================================================
The Guardian Cash Fund .50% .03% .53%
- --------------------------------------------------------------------------------
The Guardian Bond Fund .50% .05% .55%
- --------------------------------------------------------------------------------
The Guardian Stock Fund .50% .02% .52%
- --------------------------------------------------------------------------------
The Guardian Small Cap Stock Fund .75% .14% .89%
- --------------------------------------------------------------------------------
The Guardian VC 500 Index Fund(4) .25% .07% .32%
- --------------------------------------------------------------------------------
The Guardian VC Asset Allocation Fund(4) .50% .20% .70%
- --------------------------------------------------------------------------------
The Guardian VC High Yield Bond Fund(4) .60% .40% 1.00%
- --------------------------------------------------------------------------------
Baillie Gifford International Fund .80% .18% .98%
- --------------------------------------------------------------------------------
Baillie Gifford Emerging Markets Fund 1.00% .49% 1.49%
- --------------------------------------------------------------------------------
Value Line Centurion Fund .50% .09% .59%
- --------------------------------------------------------------------------------
Value Line Strategic Asset Management Trust .50% .08% .58%
- --------------------------------------------------------------------------------
Gabelli Capital Asset Fund 1.00% .12% 1.12%
- --------------------------------------------------------------------------------
AIM V.I. Capital Appreciation Fund .62% .05% .67%
- --------------------------------------------------------------------------------
AIM V.I. Global Utilities Fund .65% .46% 1.11%
- --------------------------------------------------------------------------------
AIM V.I. Value Fund .61% .05% .66%
- --------------------------------------------------------------------------------
Davis Financial Portfolio(4) .75% .30% 1.05%
- --------------------------------------------------------------------------------
Davis Real Estate Portfolio(4) .75% .30% 1.05%
- --------------------------------------------------------------------------------
Davis Value Portfolio(4) .75% .30% 1.05%
================================================================================
(1) After the first contract year, you may withdraw in each contract year,
without a deferred sales charge, the greater of: (i) the excess of the
accumulation value on the date of withdrawal over the aggregate net
premium payments that have not been previously withdrawn, or (ii) 10% of
the total premium payments made, minus the aggregate amount of all prior
partial withdrawals made in such contract year. For contracts issued in
Section 1035 exchanges, trustee-to-trustee transfers, in certain IRA
transfers or rollovers, or to Charitable Remainder Trusts, this privilege
may also be exercised in the first contract year.
(2) Where required by state law, this fee may be lower.
(3) These percentages reflect the actual fees and expenses incurred by each
Fund during the year ended December 31, 1998 except for new Funds, whose
expenses are estimated for the year ending December 31, 1999. The
percentages for Value Line Centurion Fund and Value Line Strategic Asset
Management Trust include (as part of "Other Expenses" and "Total Fund
Operating Expenses") amounts paid to GIAC pursuant to arrangements under
which these Funds reimburse GIAC for certain administrative and
shareholder servicing expenses incurred by GIAC on their behalf.
(4) Because this is the first year of operations for The Guardian VC 500 Index
Fund, The Guardian VC Asset Allocation Fund, The Guardian VC High Yield
Bond Fund, Davis Financial Portfolio, Davis Real Estate Portfolio and
Davis Value Portfolio, the amounts shown under "Other expenses" and "Total
fund operating expenses" in the table reflect estimated annualized
expenses for these Funds' first year of operations.
<PAGE>
3
Total fund
Management Other operating
fees expenses expenses
================================================================================
Fidelity VIP II Contrafund Portfolio(5) .59% .16% .75%
- --------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio(5) .49% .18% .67%
- --------------------------------------------------------------------------------
Fidelity VIP III Growth Opportunities
Portfolio(5) .59% .20% .79%
- --------------------------------------------------------------------------------
Fidelity VIP III Mid Cap Portfolio(5) .59% .51% 1.10%
- --------------------------------------------------------------------------------
Janus Aggressive Growth Portfolio .65% .03% .75%
- --------------------------------------------------------------------------------
Janus Capital Appreciation Portfolio(6) .70% .22% .92%
- --------------------------------------------------------------------------------
Janus Growth Portfolio(6) .65% .03% .68%
- --------------------------------------------------------------------------------
Janus Worldwide Growth Portfolio(6) .65% .07% .72%
- --------------------------------------------------------------------------------
MFS Emerging Growth Series .75% .10% .85%
- --------------------------------------------------------------------------------
MFS Growth With Income Series(7) .75% .20% .95%
- --------------------------------------------------------------------------------
MFS New Discovery Series(8) .90% .25% 1.17%
- --------------------------------------------------------------------------------
MFS Research Series .75% .11% .86%
- --------------------------------------------------------------------------------
MFS Total Return Series .75% .16% .91%
================================================================================
(5) The expenses shown for Fidelity VIP II Contrafund Portfolio, Fidelity VIP
Equity-Income Portfolio, Fidelity VIP III Growth Opportunities Portfolio
and Fidelity VIP III Mid Cap Portfolio reflect varying arrangements
between these Funds and third parties who have either paid or reduced a
portion of the Funds' expenses. The management fees for each of the Funds
consist of a group fee rate and an individual fee rate. The fee shown in
the table adds these components and multiplies the result by each Fund's
average net assets. Please see the Fidelity prospectuses for a complete
explanation of the Fund's fees and expenses.
(6) The "Total fund operating expenses" shown for Janus Capital Appreciation
Portfolio, Janus Growth Portfolio and Janus Worldwide Growth Portfolio
reflect contractual waivers and fee reductions by the Funds' adviser. Fee
reductions by the adviser reduce the management fees to the level of the
corresponding Janus retail fund. The other waivers are applied first
against the management fee and then against "Other expenses". Without
these waivers and fee reductions, total expenses for Janus Capital
Appreciation Portfolio, Janus Growth Portfolio and Janus Worldwide Growth
Portfolio would have been 0.97%, 0.75% and 0.74%, respectively. Janus has
agreed to continue these waivers and fee reductions until at least the
next annual renewal of the Funds' advisory agreement.
(7) Prior to October 2, 1998, the Adviser of MFS Growth With Income Series
agreed to bear expenses for 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. The Adviser agreed to this
arrangement on the condition that it would be reimbursed over time for the
expenses advanced. Since the Series' expenses for 1998 were less than the
maximum of 0.25% under the agreement, the Series reimbursed the Adviser
for expenses it had advanced in previous years. This resulted in higher
expenses for the Series in 1998 then it would have incurred absent the
agreement with the Adviser. Absent the agreement, "Other Expenses" and
"Total Operating Expenses" would have been .13% and .88%, respectively.
(8) The expenses shown for MFS New Discovery Series reflect an agreement by
the Fund's adviser to bear expenses, subject to reimbursement by the Fund,
such that the Fund's "Other expenses" will not exceed 0.25% of the Fund's
average daily net assets during 1999. The Fund has an expense offset
arrangement which reduces the custodian fee based upon the amount of cash
maintained by the Fund with its custodian. The "Total fund operating
expenses" in the table do not take into account this expense reduction
and are therefore higher than the actual expenses of the Fund.
Reimbursement by the Fund will be accomplished by the payment of an
expense reimbursement fee by the Fund to the adviser, subject to the
maximum of 0.25% described above. The adviser's obligation to bear part of
the Fund's expenses under this arrangement terminates on the earlier of
the date the Fund has reimbursed all expenses borne by the adviser, or May
1, 2001. Please see the Fund's prospectus for a complete explanation of
the Fund's fees and expenses.
<PAGE>
4
The following replaces the information entitled "Comparison of contract
expenses among underlying funds" found on pages 6 and 7 of the Prospectus and
pages 2 and 3 of the Supplement dated December 20, 1999:
BC = Basic Contract
CAEDB = Contract Anniversary Enhanced Death Benefit
LB = Living Benefit
CAEDB plus LB = Contract Anniversary Enhanced Death Benefit plus Living Benefit
If you surrender your contract at the end of the applicable time period, you
would pay the following expenses on a $1,000 investment, assuming a 5% annual
return on assets.
<TABLE>
<CAPTION>
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
===================== ===================== ===================== =====================
CAEDB CAEDB CAEDB CAEDB CAEDB CAEDB CAEDB CAEDB
BC OR LB plus LB BC OR LB plus LB BC OR LB plus LB BC OR LB plus LB
======================================== ===== ===== ======= ===== ===== ======= ===== ===== ======= ===== ===== =======
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
The Guardian Cash Fund 90 92 95 110 118 126 134 147 160 225 252 278
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
The Guardian Bond Fund 90 92 95 111 119 127 135 148 162 227 254 280
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
The Guardian Stock Fund 89 92 95 110 118 126 133 147 160 224 251 277
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
The Guardian Small Cap Stock Fund 93 96 99 122 130 138 153 166 179 263 290 315
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
The Guardian VC 500 Index Fund 87 90 93 104 112 120 123 136 149 201 229 256
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
The Guardian VC Asset Allocation Fund 91 94 97 116 124 132 143 156 169 243 270 296
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
The Guardian VC High Yield Bond Fund 94 97 100 125 133 141 159 172 185 275 301 326
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Baillie Gifford International Fund 94 97 100 125 133 140 158 171 184 273 299 324
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Baillie Gifford Emerging Markets Fund 100 102 105 141 149 156 184 197 210 325 350 374
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Value Line Centurion Fund 90 93 95 112 120 128 137 150 164 231 258 284
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Value Line Strategic Asset Management
Trust 90 93 95 112 120 128 137 150 163 230 257 283
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Gabelli Capital Asset Fund 96 98 101 129 137 145 165 178 191 288 313 338
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
AIM V.I. Capital Appreciation Fund 91 94 96 115 123 131 141 155 168 240 267 293
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
AIM V.I. Global Utilities Fund 96 98 101 129 137 144 165 178 191 287 312 337
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
AIM V.I. Value Fund 91 94 96 115 123 130 141 154 167 239 266 292
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Davis Financial Portfolio 95 98 100 127 135 143 162 175 187 280 306 331
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Davis Real Estate Portfolio 95 98 100 127 135 143 162 175 187 280 306 331
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Davis Value Portfolio 95 98 100 127 135 143 162 175 187 280 306 331
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Fidelity VIP II Contrafund Portfolio 92 94 97 117 125 133 146 159 172 249 275 301
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Fidelity VIP Equity-Income Portfolio 91 94 96 115 123 131 141 155 168 240 267 293
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Fidelity VIP III Growth Opportunities
Portfolio 92 95 98 119 127 134 148 161 174 253 279 305
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Fidelity VIP III Mid Cap Portfolio 96 98 101 129 136 144 164 177 190 285 311 336
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Janus Aggressive Growth Portfolio 92 94 97 117 125 133 146 159 172 249 275 301
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Janus Capital Appreciation Portfolio 94 96 99 123 131 139 155 168 181 267 293 318
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Janus Growth Portfolio 91 94 96 115 123 131 142 155 168 241 268 294
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Janus Worldwide Growth Portfolio 92 94 97 117 124 132 144 157 170 245 272 298
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
MFS Emerging Growth Series 93 96 98 121 129 136 151 164 177 259 285 311
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
MFS Growth With Income Series 94 97 99 124 132 139 156 169 182 270 296 321
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
MFS New Discovery Series 96 99 102 131 139 146 168 181 194 293 318 343
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
MFS Research Series 93 96 98 121 129 137 152 165 178 260 287 312
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
MFS Total Return Series 94 96 99 123 130 138 154 167 180 266 292 317
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
</TABLE>
<PAGE>
5
If you do not surrender your contract at the end of the applicable time period,
you would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on assets.
<TABLE>
<CAPTION>
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
===================== ===================== ===================== =====================
CAEDB CAEDB CAEDB CAEDB CAEDB CAEDB CAEDB CAEDB
BC OR LB plus LB BC OR LB plus LB BC OR LB plus LB BC OR LB plus LB
======================================== ===== ===== ======= ===== ===== ======= ===== ===== ======= ===== ===== =======
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
The Guardian Cash Fund 20 22 25 60 68 76 104 117 130 225 252 278
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
The Guardian Bond Fund 20 22 25 61 69 77 105 118 132 227 254 280
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
The Guardian Stock Fund 19 22 25 60 68 76 103 117 130 224 251 277
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
The Guardian Small Cap Stock Fund 23 26 29 72 80 88 123 136 149 263 290 315
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
The Guardian VC 500 Index Fund 17 20 23 54 62 70 93 106 119 201 229 256
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
The Guardian VC Asset Allocation Fund 21 24 27 66 74 82 113 126 139 243 270 296
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
The Guardian VC High Yield Bond Fund 24 27 30 75 83 91 129 142 155 275 301 326
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Baillie Gifford International Fund 24 27 30 75 83 90 128 141 154 273 299 324
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Baillie Gifford Emerging Markets Fund 30 32 35 91 99 106 154 167 180 325 350 374
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Value Line Centurion Fund 20 23 25 62 70 78 107 120 134 231 258 284
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Value Line Strategic Asset Management
Trust 20 23 25 62 70 78 107 120 133 230 257 283
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Gabelli Capital Asset Fund 26 28 31 79 87 95 135 148 161 288 313 338
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
AIM V.I. Capital Appreciation Fund 21 24 26 65 73 81 111 125 138 240 267 293
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
AIM V.I. Global Utilities Fund 26 28 31 79 87 94 135 148 161 287 312 337
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
AIM V.I. Value Fund 21 24 26 65 73 80 111 124 137 239 266 292
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Davis Financial Portfolio 25 28 30 77 85 93 132 145 157 280 306 331
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Davis Real Estate Portfolio 25 28 30 77 85 93 132 145 157 280 306 331
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Davis Value Portfolio 25 28 30 77 85 93 132 145 157 280 306 331
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Fidelity VIP II Contrafund Portfolio 22 24 27 67 75 83 116 129 142 249 275 301
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Fidelity VIP Equity-Income Portfolio 21 24 26 65 73 81 111 125 138 240 267 293
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Fidelity VIP III Growth Opportunities
Portfolio 22 25 28 69 77 84 118 131 144 253 279 305
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Fidelity VIP III Mid Cap Portfolio 26 28 31 79 86 94 134 147 160 285 311 336
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Janus Aggressive Growth Portfolio 22 24 27 67 75 83 116 129 142 249 275 301
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Janus Capital Appreciation Portfolio 24 26 29 73 81 89 125 138 151 267 293 318
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Janus Growth Portfolio 21 24 26 65 73 81 112 125 138 241 268 294
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
Janus Worldwide Growth Portfolio 22 24 27 67 74 82 114 127 140 245 272 298
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
MFS Emerging Growth Series 23 26 28 71 79 86 121 134 147 259 285 311
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
MFS Growth With Income Series 24 27 29 74 82 89 126 139 152 270 296 321
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
MFS New Discovery Series 26 29 32 81 89 96 138 151 164 293 318 343
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
MFS Research Series 23 26 28 71 79 87 122 135 148 260 287 312
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
MFS Total Return Series 24 26 29 73 80 88 124 137 150 266 292 317
- ---------------------------------------- ----- ----- ------- ----- ----- ------- ----- ----- ------- ----- ----- -------
</TABLE>
