August 29, 1997
VIA EDGAR
From:
Beverly A. Byrne
Great-West Variable Annuity Account A
8515 E. Orchard Road
Englewood, CO 80111
To:
Securities and Exchange Commission
RE: Great-West Variable Annuity Account A - N-30D
File No. 811-1737
Dear Filing Desk:
The following document is the N-30D for the Great-West Variable Annuity
Account A.
If there should be any questions regarding this filing, please contact me
at (303) 689-3817 or my Legal Assistant, Susan Sellenberg, at (303)689-3822.
Sincerely,
/s/
Beverly A. Byrne
Secretary
<PAGE>
Dear VAAA Participant:
We are please to provide you with this semi-annual report for the period ending
June 30, 1997.
The U.S. stock market continued its bull run through the first half of 1997. The
broad-based Standard & Poor's 500 Index provided a 20.2% total return over the
six months ended 6/30/1997. Moderate economic growth and low inflation served as
a back drop to support strong corporate earnings growth, which translated into
higher stock prices. Once again, the large capitalization stocks of U.S.
corporate giants paced the market's advance. While showing more signs of life
than over the previous two years, the small capitalization sector of the U.S.
stock market continued to lag relative to large caps.
The U.S. stock market drew support from solid economic growth accompanied by low
inflation and stable interest rates. The yield on the 30 year U.S. Treasury bond
was rather flat over the first six months of the year, rising from 6.64% at
year-end 1996 to 6.78% on 6/30/1997. In this environment, most bond index
returns were once again tied to their income component.
The international equity markets also produced strong gains during the first
half of 1997, with the Morgan Stanley EAFE international index rising 10.3% on a
price-only basis. As has been the case over the past several years, the Japanese
stock market was again a culprit in holding down international equity market
returns versus the United States market. At least the Japanese market was able
to produce a positive return of approximately 6% during the first half of this
year. Without Japan however, the EAFE index would have gained 12.9% on a
price-only basis over the same time period. International equity market returns
during the first half of 1997 were supported by low inflation and low interest
rates around the globe.
The investment adviser for Variable Annuity Account A is G W Capital Management,
Inc.
Sincerely,
/s/ James D. Motz
James D. Motz
Chairman and President
<PAGE>
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
Financial Statements for the Six Months Ended
June 30, 1997 and 1996
<PAGE>
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at value:
Common stock (cost - $6,449,119) $ 7,297,439
Short-term investment (cost - $578,917) 578,917
Investment income due and accrued 16,363
Cash 100,722
Due from broker 117,002
-------------------------
Total Assets 8,110,443
Liabilities:
Due to Great-West Life & Annuity Insurance Company 2,878
Contract benefits payable 50,000
-------------------------
Total Liabilities 52,878
-------------------------
Net Assets $ 8,057,565
=========================
Net Assets Represented By (Units at 9.8748)
Accumulation units - 763,087 $ 7,535,325
Reserves for annuities in course of payment - 2850 units 522,240
-------------------------
Net Assets $ 8,057,565
=========================
See notes to financial statements.
</TABLE>
<PAGE>
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividends $ 86,878
Interest 28,930
------------------------
115,808
Expenses:
Administration 10,969
Mortality risks 14,833
Investment management and advisory services 17,878
Expense risks 2,637
------------------------
46,317
------------------------
Net Investment Income 69,491
------------------------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments 1,538,845
Net change in unrealized (depreciation) on investments (749,305)
------------------------
Net Realized and Unrealized Gain on Investments 789,540
------------------------
Net Increase in Net Assets Resulting from Operations $ 859,031
========================
See notes to financial statements.
</TABLE>
<PAGE>
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
From Operations: 1997 1996
--------------------- ---------------------
Net investment income $ 69,491 $ 26,053
Net realized gains 1,538,845 596,438
Net change in unrealized appreciation (depreciation) (749,305) (67,098)
--------------------- ---------------------
Increase in net assets resulting
from operations 859,031 555,393
From Unit Share Transactions:
Surrenders (341,739) (97,894)
Annuity payments (61,087) (57,234)
Death payments (165,662) (36,562)
Transfer in respect of mortality guarantees 27,161 (15,469)
--------------------- ---------------------
Decrease in net assets derived from unit
share transactions (541,327) (207,159)
--------------------- ---------------------
Net increase in net assets 317,704 348,234
Net Assets:
Beginning of period 7,739,861 6,990,140
---------------------
---------------------
End of period $ 8,057,565 $ 7,338,374
===================== =====================
See notes to financial statements.
</TABLE>
<PAGE>
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
FINANCIAL HIGHLIGHTS
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Selected data for an accumulation unit for the six months ended June 30, 1997
and years ended December 31, 1996, 1995, 1994, and 1993, were as follows:
Six Months
Ended
June 30, Years Ended December 31,
-------------------------------------------------------------------------------------
1997 1996 1995 1994 1993
--------------- --------------- -------------- -------------- -----------
Unit Value, Beginning of Period $ 8.767 $ 7.501 $ 6.070 $ 6.245 $ 5.397
Income From Investment Operations:
Net investment income .088 .053 .089 .073 .048
Net gains (losses) on investments
(realized and unrealized) 1.020 1.213 1.342 (.248) .800
--------------- --------------- -------------- -------------- -----------
Total From Investment
Operations (Note A) 1.108 1.266 1.431 (.175) .848
--------------- --------------- -------------- -------------- -----------
Unit Value, End of Period $ 9.875 $ 8.767 $ 7.501 $ 6.070 $ 6.245
=============== =============== ============== ============== ===========
Total Return 19.77% * 15.90% 23.56% (2.80)% 15.71%
Net Assets, End of Period $ 8,057,565 $ 7,739,861 $ 6,990,140 $ 6,076,943 $ 7,235,935
Average broker commission paid
per share bought or sold $ 0.0600 $ 0.0692
Ratio of Expenses to Average
Net Assets 1.28% * 1.25% 1.18% 1.24% 1.19%
Ratio of Net Investment Income
to Average Net Assets 1.94% * 1.89% 2.49% 2.42% 2.02%
Portfolio Turnover Rate 99.2% 64.4% 62.2% 30.2% 23.4%
*Annualized
Note A - Net investment income and realized and unrealized gains (losses) are
reflected in the value of the accumulation units. Dividends are not declared
from income and capital gains are not distributed.
</TABLE>
<PAGE>
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
NOTE 1 - HISTORY
Great-West Variable Annuity Account A (Variable Annuity Account A) is a separate
and distinct investment fund established by The Great-West Life Assurance
Company (Great-West Life). On December 31, 1991, Variable Annuity Account A was
transferred to and the variable annuity contracts were reinsured by Great-West
Life & Annuity Insurance Company (GWL&A), a wholly owned subsidiary of
Great-West Life. Variable Annuity Account A is registered as an open-end
diversified management investment company under the Investment Company Act of
1940, and the registration under the Securities Act of 1933 of the group
variable annuity contracts funded by Variable Annuity Account A became effective
on November 27, 1968. Purchase payments were first placed in Variable Annuity
Account A on January 3, 1969.
Effective April 16, 1984, Great-West Life ceased issuing new variable annuity
contracts. Effective May 1, 1987, Great-West Life has not allowed new
participants to be enrolled under existing variable annuity contracts and,
effective May 1, 1989, no additional contributions under existing variable
annuity contracts are being accepted.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Actual
results could differ from those estimates.
The cost of securities sold is determined on the basis of specific
identification.
Securities traded on national exchanges are valued daily at the closing price of
the securities on these exchanges, and securities traded on over-the-counter
markets are valued daily at the average between bid and asked prices. Short-term
securities are valued at amortized cost which approximates market value.
Security transactions are recorded at the earlier of trade date or the date a
commitment is made to buy or sell the related investment.
Dividend income is accrued as of the ex-dividend date and interest income is
recorded daily.
NOTE 3 - CHARGES UNDER THE CONTRACTS
GWL&A provides administrative, investment management, and advisory services to
Variable Annuity Account A and has assumed mortality and expense risks of the
contracts. A daily deduction of .003285% (an effective annual rate of 1.2064%)
is made from the gross investment income of Variable Annuity Account A. This
deduction, expressed on an annual basis, is broken down as follows: .2857% for
administrative expenses, .3863% for mortality risks, .0688% for expense risks,
and .4656% for investment management and advisory services. Effective November
1, 1996 a wholly owned subsidiary of Great-West Life & Annuity Insurance
Company, GW Capital Management, Inc., serves as investment advisor.
<PAGE>
NOTES TO FINANCIAL STATEMENTS - Continued
NOTE 4 - INVESTMENTS
The aggregate purchase of investments and the aggregate proceeds from sales of
investments were (excluding short-term securities) as follows:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1997 1996
------------------ ------------------
Common Stock
Purchases $ 6,800,509 $ 1,924,717
Proceeds from sales 7,441,603 2,335,994
</TABLE>
NOTE 5 - FEDERAL INCOME TAXES
The Variable Annuity Account A investment income is applied to increase
accumulation unit values. Under existing federal income tax law, Variable
Annuity Account A investment income is not taxed to the extent that it is
applied to increase accumulation unit values. GWL&A reserves the right to charge
the Variable Annuity Account A if such taxes are imposed in the future.
NOTE 6 - ACCUMULATION UNITS
A summary of the transactions in accumulation units follows:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1997 1996
----------------- -----------------
Outstanding - January 1 819,044 848,519
Redeemed during the year
Surrender (38,119) (12,369)
Death (17,838) (4,504)
----------------- -----------------
(55,957) (16,873)
----------------- -----------------
Outstanding - June 30 763,087 831,646
================= =================
</TABLE>
Net investment income and realized and unrealized gains are reflected in the
value of the accumulation units. Dividends are not declared from income and
gains are not distributed.
<PAGE>
NOTES TO FINANCIAL STATEMENTS - Continued
NOTE 7 - ACCUMULATION UNIT VALUES - (Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
ACCUMULATION ACCUMULATION
VALUATION DATE UNIT VALUE VALUATION DATE UNIT VALUE
- ------------------------------- -------------------------------- ------------------------------- ---------------------------
January 3, 1969 $ 1.00000000 September 30, 1980 $ 1.24125856
March 28, 1969 $ 1.07468400 December 31, 1980 $ 1.34937658
June 27, 1969 $ 1.07583259 March 31, 1981 $ 1.34420316
September 30, 1969 $ 1.04319336 June 30, 1981 $ 1.31151501
December 31, 1969 $ 1.05956294 September 30, 1981 $ 1.21957549
March 31, 1970 $ 1.05322327 December 31, 1981 $ 1.34034823
June 30, 1970 $ .86337212 March 31, 1982 $ 1.22060069
September 30, 1970 $ .98057690 June 30, 1982 $ 1.21747890
December 31, 1970 $ 1.08416020 September 30, 1982 $ 1.32107048
March 31, 1971 $ 1.28783953 December 31, 1982 $ 1.54829628
June 30, 1971 $ 1.31417688 March 31, 1983 $ 1.72492408
September 30, 1971 $ 1.34600160 June 30, 1983 $ 1.88999803
December 31, 1971 $ 1.40624309 September 30, 1983 $ 1.85391985
March 31, 1972 $ 1.50937876 December 31, 1983 $ 1.86959830
June 30, 1972 $ 1.46441659 March 31, 1984 $ 1.77987261
September 29, 1972 $ 1.41141921 June 30, 1984 $ 1.74123169
December 31, 1972 $ 1.43641768 September 30, 1984 $ 1.89436321
March 30, 1973 $ 1.14518173 December 31, 1984 $ 1.94021457
June 29, 1973 $ .94975920 March 31, 1985 $ 2.11639231
September 28, 1973 $ 1.12752636 June 30, 1985 $ 2.31593116
December 31, 1973 $ .98798465 September 30, 1985 $ 2.17502453
March 29, 1974 $ .92504974 December 31, 1985 $ 2.50415588
June 28, 1974 $ .84636772 March 31, 1986 $ 2.92575544
September 30, 1974 $ .69582357 June 30, 1986 $ 3.12894373
December 31, 1974 $ .76438983 September 30, 1986 $ 2.79849885
March 31, 1975 $ .85484991 December 31, 1986 $ 2.92996949
June 30, 1975 $ .94523691 March 31, 1987 $ 3.45357315
September 30, 1975 $ .86720026 June 30, 1987 $ 3.47692861
December 31, 1975 $ .89703274 September 30, 1987 $ 3.58107036
March 31, 1976 $ 1.02654318 December 31, 1987 $ 2.90927633
June 30, 1976 $ 1.04254066 March 31, 1988 $ 3.03211290
September 30, 1976 $ 1.02175714 June 30, 1988 $ 3.14170371
December 31, 1976 $ 1.06312535 September 30, 1988 $ 3.19555027
March 31, 1977 $ .96668709 December 31, 1988 $ 3.24632490
June 30, 1977 $ .97779837 March 31, 1989 $ 3.40048089
September 30, 1977 $ .91543186 June 30, 1989 $ 3.66057985
December 31, 1977 $ .91330430 September 30, 1989 $ 4.03595925
March 31, 1978 $ .88025820 December 31, 1989 $ 4.16667314
June 30, 1978 $ .94981303 March 31, 1990 $ 4.10420565
September 30, 1978 $ 1.02175412 June 30, 1990 $ 4.40575331
December 31, 1978 $ .94566769 September 30, 1990 $ 3.95067300
March 31, 1979 $ 1.03700469 December 31, 1990 $ 4.09586804
June 30, 1979 $ 1.03384794 March 31, 1991 $ 4.67731834
September 30, 1979 $ 1.07966980 June 30, 1991 $ 4.46997251
December 31, 1979 $ 1.09861144 September 30, 1991 $ 4.70629835
March 31, 1980 $ 1.02778990 December 31, 1991 $ 5.17489662
June 30, 1980 $ 1.15888482
</TABLE>
<PAGE>
ACCUMULATION UNIT VALUES - (Unaudited) - Concluded
ACCUMULATION
VALUATION DATE UNIT VALUE
- ------------------------------- --------------------------------
March 31, 1992 $ 5.00089395
June 30, 1992 $ 4.90045709
September 30, 1992 $ 4.94334533
December 31, 1992 $ 5.39680799
March 31, 1993 $ 5.70268053
June 30, 1993 $ 5.91443136
September 30, 1993 $ 6.20352631
December 31, 1993 $ 6.24551098
March 31, 1994 $ 6.07099873
June 30, 1994 $ 5.98373289
September 30, 1994 $ 6.21184797
December 31, 1994 $ 6.07070336
March 31, 1995 $ 6.43386353
June 30, 1995 $ 6.93539739
September 30, 1995 $ 7.34349110
December 31, 1995 $ 7.50058268
March 31, 1996 $ 7.97167430
June 30, 1996 $ 8.16277408
September 30, 1996 $ 8.36088935
December 31, 1996 $ 8.76699327
March 31, 1997 $ 9.10319430
June 30, 1997 $ 9.87479147
