Great-West Variable Annuity Account A
Financial Statements and Financial Highlights for
the Six Months Ended June 30, 2000 and the Year Ended December 31, 1999
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
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GREAT-WEST VARIABLE ANNUITY ACCOUNT A
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STATEMENT OF ASSETS AND LIABILITIES
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JUNE 30, 2000
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UNAUDITED
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ASSETS:
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Investments in securities, market value (1) $ 7,014,102
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Cash 414,260
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Dividends and interest receivable 19,825
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Receivable for investments sold 63,697
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Total assets 7,511,884
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LIABILITIES:
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Due to Great-West Life & Annuity Insurance Company 41,126
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Redemptions payable 2,137
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Contract benefits payable (Note 2) 45,896
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Total liabilities 89,159
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NET ASSETS $ 7,422,725
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NET ASSETS REPRESENTED BY:
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Accumulation units - 572,919 units at $12.2486 $ 7,017,448
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Reserves for annuities in course of payment 405,277
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NET ASSETS $ 7,422,725
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SHARES OF CAPITAL STOCK OUTSTANDING: 572,919
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(1) Cost of investments in securities: $ 7,281,266
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See notes to financial statements.
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GREAT-WEST VARIABLE ANNUITY ACCOUNT A
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STATEMENT OF OPERATIONS
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SIX MONTHS ENDED JUNE 30, 2000
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UNAUDITED
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INVESTMENT INCOME:
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Interest $ 16,419
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Dividends 87,595
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Total income 104,014
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EXPENSES:
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Administration 10,722
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Mortality risks 14,497
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Investment management and advisory services 17,472
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Expense risks (4,327)
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Total expenses 38,364
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NET INVESTMENT INCOME 65,650
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
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Net realized gain on investments 474,731
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Change in net unrealized depreciation on investments (666,907)
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Net realized and unrealized loss on investments (192,176)
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NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (126,526)
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See notes to financial statements.
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GREAT-WEST VARIABLE ANNUITY ACCOUNT A
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STATEMENT OF CHANGES IN NET ASSETS
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SIX MONTHS ENDED JUNE 30, 2000 AND YEAR ENDED DECEMBER 31, 1999
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2000 1999
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UNAUDITED
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OPERATIONS:
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Net investment income $ 65,650 $ 71,615
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Net realized gain on investments 474,731 1,577,058
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Change in net unrealized appreciation (depreciation) on investments (666,907) (1,435,350)
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Net increase (decrease) in net assets resulting from operations (126,526) 213,323
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SHARE TRANSACTIONS:
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Surrenders (451,703) (1,246,308)
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Annuity payments (74,408) (145,991)
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Death payments (39,343)
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Transfer in respect of mortality guarantees 0 5,529
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Net decrease in net assets resulting from share transactions (526,111) (1,426,113)
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Capital contribution from Great-West Life & Annuity Insurance Company 0 52,222
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Total decrease in net assets (652,637) (1,160,568)
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NET ASSETS:
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Beginning of period 8,075,362 9,235,930
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End of period (1) $ 7,422,725 $ 8,075,362
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0
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OTHER INFORMATION:
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SHARES:
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Redeemed during the year: 0
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Surrender (39,527) (101,487)
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Death (3,557)
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Net decrease (39,527) (105,044)
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See notes to financial statements.
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GREAT-WEST VARIABLE ANNUITY ACCOUNT A
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FINANCIAL HIGHLIGHTS
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Selected data for an accumulation unit for the six months ended June 30, 2000
and the years ended December 31, 1999, 1998, 1997,
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1996 and 1995 were as follows:
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Six Months Ended Year Ended December 31,
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June 30, 2000 1999 1998 1997 1996 1995
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UNAUDITED
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Unit Value, Beginning of Period $ 12.4020 $ 11.9530 $ 10.6610 $ 8.7670 $ 7.5010 $ 6.0700
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Income from Investment Operations
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Net investment income 0.1315 0.1170 0.0840 0.1670 0.0530 0.0890
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Net realized and unrealized gain (loss) (0.2849) 0.3320 1.2080 1.7270 1.2130 1.3420
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Total Income (Loss) From
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Investment Operations ^ (0.1534) 0.4490 1.2920 1.8940 1.2660 1.4310
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Unit Value, End of Period $ 12.2486 $ 12.4020 $ 11.9530 $ 10.6610 $ 8.7670 $ 7.5010
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0.0000
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Total Return (1.24%) 3.76% 12.12% 20.27% 15.90% 23.56%
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Net Assets, End of Period $ 7,422,725 $ 8,075,362 $ 9,235,930 $ 8,473,159 $ 7,739,861 $ 6,990,140
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Ratio of Expense to
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Average Net Assets 1.20% * 1.22% 1.03% 1.27% 1.25% 1.18%
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Ratio of Net Investment Income to
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Average Net Assets 1.74% * 0.82% 0.77% 1.74% 1.89% 2.49%
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Portfolio Turnover Rate 15.80% 76.26% 51.93% 151.40% 64.40% 62.20%
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^ Net investment income and realized and unrealized gains (losses) are reflected
in the value of the accumulation units.
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Dividends are not declared from income and capital gains are not distributed.
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*Annualized
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</TABLE>
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
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UNAUDITED
1. ORGANIZATION & SIGNIFICANT ACCOUNTING POLICIES
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 6, 1984, Great-West Life ceased issuing 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.
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 following is a summary of the significant accounting policies, which
are in accordance with generally accepted accounting principles in the
investment company industry:
Security Valuation
Short-term and money market securities are valued at amortized cost
which approximates market value. Equity securities listed on an
established exchange or on the NASDAQ National Market System are valued
at the last sale price as of the close of business. Fixed income and
other securities are valued by independent pricing services approved by
the Board of Directors. Securities for which market quotations are not
readily available are valued at fair value as determined in good faith
by or under the direction of the Board of Directors.
Security Transactions
Security transactions are accounted for on the date the security is
purchased or sold (trade date). The cost of investments sold is
determined on the basis of specific identification.
Dividend income is accrued as of the ex-dividend date and interest
income, including amortization of discounts and premiums, is recorded
daily.
Federal Income Taxes
The Variable Annuity Account A investment income is applied to increase
accumulation unit values. Under existing federal income tax, 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.
<PAGE>
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
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: 0.2857% for administrative
expenses, 0.3863% for mortality risks, 0.0688% for expense risks, and
0.4656% for investment management and advisory services. Effective
November 1, 1996, a wholly-owned subsidiary of Great-West Life & Annuity
Insurance Company, GW Capital Management, LLC, serves as investment
advisor.
Contract benefit payments are advanced by GWL&A to contract holders on
behalf of Variable Annuity Account A. Variable Annuity Account A
reimburses GWL&A for these payments periodically.
3. PURCHASES AND SALES OF INVESTMENT SECURITIES
For the six months ended June 30, 2000, the aggregate cost of purchases
and proceeds from sales of investment securities (excluding all U.S.
Government securities and short-term securities) were $1,156,043 and
$1,987,656, respectively. For the six months ended June 30, 2000, there
were no purchases or sales of U.S. Government securities.
4. ACCUMULATION UNIT VALUES
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
VALUATION ACCUMULATION VALUATION ACCUMULATION
DATE UNIT VALUE DATE UNIT VALUE
-------------------------- -------------------------- ------------------------ ---------------------------
January 3, 1969 $ 1.00000000 June 30, 1976 $ 1.04254066
March 28, 1969 $ 1.07468400 September 30, 1976 $ 1.02175714
June 27, 1969 $ 1.07583259 December 31, 1976 $ 1.06312535
September 30, 1969 $ 1.04319336 March 31, 1977 $ .96668709
December 31, 1969 $ 1.05956294 June 30, 1977 $ .97779837
March 31, 1970 $ 1.05322327 September 30, 1977 $ .91543186
June 30, 1970 $ .86337212 December 31, 1977 $ .91330430
September 30, 1970 $ .98057690 March 31, 1978 $ .88025820
December 31, 1970 $ 1.08416020 June 30, 1978 $ .94981303
March 31, 1971 $ 1.28783953 September 30, 1978 $ 1.02175412
June 30, 1971 $ 1.31417688 December 31, 1978 $ .94566769
September 30, 1971 $ 1.34600160 March 31, 1979 $ 1.03700469
December 31, 1971 $ 1.40624309 June 30, 1979 $ 1.03384794
March 31, 1972 $ 1.50937876 September 30, 1979 $ 1.07966980
June 30, 1972 $ 1.46441659 December 31, 1979 $ 1.09861144
September 29, 1972 $ 1.41141921 March 31, 1980 $ 1.02778990
December 31, 1972 $ 1.43641768 June 30, 1980 $ 1.15888482
March 30, 1973 $ 1.14518173 September 30, 1980 $ 1.24125856
June 29, 1973 $ .94975920 December 31, 1980 $ 1.34937658
September 28, 1973 $ 1.12752636 March 31, 1981 $ 1.34420316
December 31, 1973 $ .98798465 June 30, 1981 $ 1.31151501
March 29, 1974 $ .92504974 September 30, 1981 $ 1.21957549
June 28, 1974 $ .84636772 December 31, 1981 $ 1.34034823
September 30, 1974 $ .69582357 March 31, 1982 $ 1.22060069
December 31, 1974 $ .76438983 June 30, 1982 $ 1.21747890
March 31, 1975 $ .85484991 September 30, 1982 $ 1.32107048
June 30, 1975 $ .94523691 December 31, 1982 $ 1.54829628
September 30, 1975 $ .86720026 March 31, 1983 $ 1.72492408
December 31, 1975 $ .89703274 June 30, 1983 $ 1.88999803
March 31, 1976 $ 1.02654318 September 30, 1983 $ 1.85391985
(Continued)
</TABLE>
4. ACCUMULATION UNIT VALUES (Continued)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
VALUATION ACCUMULATION VALUATION ACCUMULATION
DATE UNIT VALUE DATE UNIT VALUE
-------------------------- -------------------------- ------------------------ ---------------------------
December 31, 1983 $ 1.86959830 June 30, 1996 $ 8.16277408
March 31, 1984 $ 1.77987261 September 30, 1996 $ 8.36088935
June 30, 1984 $ 1.74123169 December 31, 1996 $ 8.76699327
September 30, 1984 $ 1.89436321 March 31, 1997 $ 9.10319430
December 31, 1984 $ 1.94021457 June 30, 1997 $ 9.87479147
March 31, 1985 $ 2.11639231 September 30, 1997 $ 10.11055595
June 30, 1985 $ 2.31593116 December 31, 1997 $ 10.66148379
September 30, 1985 $ 2.17502453 March 31, 1998 $ 10.99141808
December 31, 1985 $ 2.50415588 June 30, 1998 $ 11.46520474
March 31, 1986 $ 2.92575544 September 30, 1998 $ 9.63105524
June 30, 1986 $ 3.12894373 December 31, 1998 $ 11.95317612
September 30, 1986 $ 2.79849885 March 31, 1999 $ 12.29221948
December 31, 1986 $ 2.92996949 June 30, 1999 $ 13.52815376
March 31, 1987 $ 3.45357315 September 30, 1999 $ 12.49689723
June 30, 1987 $ 3.47692861 December 31, 1999 $ 12.40218931
September 30, 1987 $ 3.58107036 March 31, 2000 $ 12.53233074
December 31, 1987 $ 2.90927633 June 30, 2000 $ 12.24858685
March 31, 1988 $ 3.03211290
June 30, 1988 $ 3.14170371
September 30, 1988 $ 3.19555027
December 31, 1988 $ 3.24632490
March 31, 1989 $ 3.40048089
June 30, 1989 $ 3.66057985
September 30, 1989 $ 4.03595925
December 31, 1989 $ 4.16667314
March 31, 1990 $ 4.10420565
June 30, 1990 $ 4.40575331
September 30, 1990 $ 3.95067300
December 31, 1990 $ 4.09586804
March 31, 1991 $ 4.67731834
June 30, 1991 $ 4.46997251
September 30, 1991 $ 4.70629835
December 31, 1991 $ 5.17489662
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 (Concluded)
</TABLE>
Variable Annuity Account
COMMON STOCK
AEROSPACE & DEFENSE --- 3.3%
5,300 Lockheed Martin Corp 131,504
3,200 Rockwell International Corp 100,800
$232,304
BANKS --- 10.7%
7,600 BancWest Corp 124,921
4,040 Bank One Corp 107,310
2,900 Bank of America Corp 124,700
3,700 First Union Corp 91,804
6,000 Huntington Bancshares Inc 94,872
5,500 Regions Financial Corp 109,313
4,300 SouthTrust Corp 97,288
$750,208
BUILDING MATERIALS --- 2.1%
3,500 Vulcan Materials Co 149,405
$149,405
CHEMICALS --- 1.6%
2,500 PPG Industries Inc 110,780
$110,780
COMMUNICATIONS - EQUIP --- 2.1%
4,300 Andrew Corp* 144,317
$144,317
COMPUTER HARDWARE & SYST --- 3.9%
4,600 Compaq Computer Corp 117,585
4,000 NCR Corp* 155,748
$273,333
COMPUTER SOFTWARE & SVCS --- 1.4%
3,700 Equifax Inc 97,125
$97,125
ELECTRIC COMPANIES --- 4.4%
4,300 Consolidated Edison Inc 127,388
5,500 Constellation Energy Group 179,091
$306,479
ELECTRONIC INSTR & EQUIP --- 1.6%
5,700 Thomas & Betts Corp 109,013
$109,013
FOOD & BEVERAGES --- 2.1%
3,000 Hershey Foods Corp 145,500
$145,500
GOLD, METALS & MINING --- 1.6%
6,200 USX-US Steel Group 115,084
$115,084
HEALTH CARE RELATED --- 2.1%
2,500 Bristol-Myers Squibb Co 145,625
$145,625
HEAVY TRUCKS & PARTS --- 1.3%
4,400 Dana Corp 93,223
$93,223
HOUSEHOLD GOODS --- 3.4%
2,900 Kimberly-Clark Corp 166,388
4,500 Leggett & Platt Inc 74,250
$240,638
INSURANCE RELATED --- 14.1%
6,700 Allstate Corp 149,075
4,300 Arthur J Gallagher & Co 180,600
4,100 Hartford Financial Services Group Inc 229,338
3,800 Lincoln National Corp 137,275
3,300 MGIC Investment Corp 150,150
5,800 Torchmark Corp 143,185
$989,623
LEISURE & ENTERTAINMENT --- 1.5%
6,300 Brunswick Corp 104,341
$104,341
MANUFACTURING --- 1.9%
2,600 Johnson Controls Inc 133,411
$133,411
OIL & GAS --- 16.6%
2,800 Coastal Corp 170,450
2,112 Exxon Mobil Corp 165,792
3,300 Halliburton Co 155,717
4,600 Helmerich & Payne Inc 171,925
4,600 NICOR Inc 150,075
2,100 Schlumberger Ltd 156,713
5,600 Sunoco Inc 164,847
542 Transocean Sedco Forex Inc 28,963
$1,164,482
PAPER & FOREST PRODUCTS --- 1.1%
2,900 Willamette Industries Inc 79,025
$79,025
PHARMACEUTICALS --- 5.3%
2,400 Merck & Co Inc 183,900
3,500 Watson Pharmaceuticals Inc* 188,125
$372,025
POLLUTION CONTROL --- 1.2%
4,500 Waste Management Inc 85,500
$85,500
PRINTING & PUBLISHING --- 1.8%
2,100 Gannett Co Inc 125,605
$125,605
RESTAURANTS --- 1.8%
4,400 Brinker International Inc* 128,700
$128,700
RETAIL --- 3.8%
7,700 Dillard's Inc Class A 94,325
5,300 Sears Roebuck & Co 172,913
$267,238
SPECIALIZED SERVICES --- 0.8%
2,900 National Service Industries Inc 56,550
$56,550
TELEPHONE & TELECOMM --- 4.4%
2,500 SBC Communications Inc 108,125
4,300 WorldCom Inc* 197,263
$305,388
TELEPHONE & TELECOMMUNICATIONS --- 1.8%
2,500 Verizon Communications 127,030
$127,030
TEXTILES --- 2.3%
4,600 Liz Claiborne Inc 162,150
$162,150
TOTAL COMMON STOCK --- 100.0% $7,014,102
(Cost $7,281,266)
TOTAL VARIABLE ANNUITY ACCOUNT --- 100.0% $7,014,102
(Cost $7,281,266)
