<PAGE>
As filed with the Securities and Exchange Commission on June 27, 2000
File No. 333-43329
File No. 811-08581
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [_]
Pre-Effective Amendment No.__ [_]
Post-Effective Amendment No. 5 [X]
REGISTRATION STATEMENT UNDER
THE INVESTMENT COMPANY ACT OF 1940 [_]
Amendment No. 15 [X]
THE SAGE VARIABLE ANNUITY ACCOUNT A
(Exact Name of Registrant)
SAGE LIFE ASSURANCE OF AMERICA, INC.
(Name of Depositor)
300 Atlantic Street
Stamford, CT 06901
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number: (203) 602-6500
James F. Bronsdon
Sage Life Assurance of America, Inc.
300 Atlantic Street
Stamford, CT 06901
(Name and Address of Agent for Service of Process)
Copy to:
Stephen E. Roth
Sutherland Asbill & Brennan LLP
1275 Pennsylvania Avenue, N.W.
Washington, D.C. 20004-2415
It is proposed that this filing become effective:
immediately upon filing pursuant to paragraph (b) of Rule 485;
__ on ___________ pursuant to paragraph (b) of Rule 485;
X 60 days after filing pursuant to paragraph (a)(1) of Rule 485;
__ on _______ pursuant to paragraph (a)(1) of Rule 485;
__ 75 days after filing pursuant to paragraph (a)(2) of Rule 485; or
__ on _______ pursuant to paragraph (a)(2) of Rule 485.
Title of Securities: Interests in a separate account under flexible payment
deferred combination fixed and variable annuity contracts.
<PAGE>
Profile and Prospectus Supplement
Dated September __, 2000
Supplement to the Profile and Prospectus
dated May 1, 2000 for
Flexible Payment Deferred Combination Fixed and
Variable Annuity Contracts
Issued by
The Sage Variable Annuity Account A and
Sage Life Assurance of America, Inc.
--------------------------------------------------------------------------------
You should keep this supplement with your Profile and Prospectus.
Since May 1, 2000, we have made two important enhancements to your
Contracts. We now offer two optional benefits --- a guaranteed minimum income
benefit and an enhanced death benefit. We describe these enhancements below.
We drafted the descriptions of the benefits as replacements or supplements
to certain information contained in the Profile and Prospectus, and provided
references to where these descriptions should be inserted.
* * *
Profile Supplement
Under "What Are The Contracts?" on page P-1, please add the following after
"Access to Amounts Invested."
Optional Riders. Subject to state availability and for an additional
charge, you may elect either or both optional riders offering a guaranteed
minimum income benefit and an enhanced death benefit. These riders can
provide additional benefits that we discuss under "What Are My Income
Payment Options" and "Does the Contract Have A Death Benefit."
Under "What Are My Income Payment Options?" on page P-2, please add the
following after the last paragraph.
Optional Guaranteed Minimum Income Benefit. Subject to availability in
your state, at issue, if you are 80 or younger, you may ensure that
guaranteed minimum lifetime income payments are available on your Income
Date by electing the Guaranteed
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<PAGE>
Minimum Income Benefit. You must satisfy the conditions set forth in the
rider to receive the benefit, and there are charges associated with the
benefit. Once you elect the Guaranteed Minimum Income Benefit, you cannot
cancel it.
Under "What Are The Expenses Under A Contract?" on page P-3, please
add the following after "Purchase Payment Tax Charge."
If you choose to purchase one or both of the optional benefit riders
we offer, we will deduct a separate charge on the Contract Date and monthly
thereafter. We deduct the rider charges proportionately from the Variable
and Fixed Sub-Accounts in which you are invested. On an annual basis, the
charge for the Guaranteed Minimum Income Benefit is 0.25% of Account Value.
On an annual basis, the charge for the Enhanced Death Benefit is 0.30% of
Account Value.
Please add the following chart after the chart on page P-5. This chart is
designed to help you understand what your expenses under the Contract would be
if you elected both the Guaranteed Minimum Income Benefit and the Enhanced Death
Benefit. The only change from the expenses shown in the prior chart is that the
column "Total Annual Insurance Charges" includes the charges for the Guaranteed
Minimum Income Benefit and the Enhanced Death Benefit.
<TABLE>
<CAPTION>
With Maximum Rider Charges
--------------------------------------------------------------------
Examples of
Total Total Examples of Total
Annual Annual Total Total Expenses Expenses as
Insurance Fund Annual Paid at the End Paid at the End
Fund Charges Charges Charges of 1 Year Of 10 Years
---- ---------- -------- -------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
AIM Variable Insurance Funds:
AIM V.I. Government Securities Fund 2.08% 0.90% 2.98% $101 $381
AIM V.I. Growth and Income Fund 2.08 0.77 2.85 99 364
AIM V.I. International Equity Fund 2.08 0.97 3.05 101 390
AIM V.I. Value Fund 2.08 0.76 2.84 99 363
The Alger American Fund:
Alger American MidCap Growth Portfolio 2.08 0.85 2.93 100 374
Alger American Income and Growth Portfolio 2.08 0.70 2.78 98 355
Alger American Small Capitalization Portfolio 2.08 0.90 2.98 101 381
Liberty Variable Investment Trust:
Colonial High Yield Securities Fund, Variable Series 2.08 0.80 2.88 100 368
Colonial Small Cap Value Fund, Variable Series 2.08 1.00 3.08 102 394
Colonial Strategic Income Fund, Variable Series 2.08 0.75 2.83 99 361
Colonial U.S. Growth and Income Fund, Variable Series
2.08 0.88 2.96 100 378
Liberty All-Star Equity Fund, Variable Series 2.08 0.95 3.03 101 387
Newport Tiger Fund, Variable Series 2.08 1.21 3.29 104 421
Stein Roe Global Utilities Fund, Variable Series 2.08 0.77 2.85 99 364
SteinRoe Variable Investment Trust:
Stein Roe Growth Stock Fund, Variable Series 2.08 0.67 2.75 98 351
Stein Roe Balanced Fund, Variable Series 2.08 0.62 2.70 98 345
MFS(R) Variable Insurance Trust(SM):
MFS Growth With Income Series 2.08 0.88 2.96 100 378
MFS High Income Series 2.08 0.91 2.99 101 382
MFS Research Series 2.08 0.86 2.94 100 376
MFS Total Return Series 2.08 0.90 2.98 101 381
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
With Maximum Rider Charges
----------------------------------------------------------------
Examples of
Total Total Examples of Total
Annual Annual Total Total Expenses Expenses as
Insurance Fund Annual Paid at the End Paid at the End
Fund Charges Charges Charges of 1 Year Of 10 Years
---- ---------- -------- -------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
MFS Capital Opportunities Series 2.08 0.91 2.99 101 382
The Universal Institutional Funds, Inc.:
The Global Equity Portfolio 2.08 1.15 3.23 103 413
The Mid Cap Value Portfolio 2.08 1.05 3.13 102 400
The Value Portfolio 2.08 0.85 2.93 100 374
Oppenheimer Variable Account Funds:
Oppenheimer Bond Fund/VA 2.08 0.73 2.81 99 359
Oppenheimer Capital Appreciation Fund/VA 2.08 0.70 2.78 98 355
Oppenheimer Small Cap Growth Fund/VA 2.08 1.34 3.42 105 437
Sage Life Investment Trust:
EAFE(R) Equity Index Fund 2.08 0.90 2.98 101 381
S&P 500 Equity Index Fund 2.08 0.55 2.63 97 336
Money Market Fund 2.08 0.65 2.73 98 349
T. Rowe Price Equity Series, Inc.:
T. Rowe Price Equity Income Portfolio 2.08 0.85 2.93 100 374
T. Rowe Price Mid-Cap Growth Portfolio 2.08 0.85 2.93 100 374
T. Rowe Price Personal Strategy Balanced Portfolio 2.08 0.90 2.98 101 381
</TABLE>
Under "How Is Contract Performance Presented" on page P-7, please replace
the first paragraph with the following.
The value of your Contract depends upon the Funds you choose. The
following chart shows average annual total return for each Fund for the
period from when assets were first put into the Variable Sub-Account on
________________, 1999 through December 31, 1999. These numbers reflect
the deduction of the asset-based charges and the annual administration
charge. If you surrender your Contract or withdraw some of your money, we
may assess surrender charges that would reduce your performance. Please
remember that past performance is not a guarantee of future results.
[Chart to be added in 485(b) filing].
The following chart also shows average annual total return for each Fund
for the period from when assets were first put into the Variable Sub-
Account on ______________ through December 31, 1999, but reflects the
charges for the optional benefits. The numbers in the chart reflect the
deduction of the asset-based charges, the annual administration charge, and
the maximum optional benefit charges. If you surrender your Contract or
withdraw some of your money, we may assess surrender charges that would
reduce your performance. Please remember that past performance is not a
guarantee of future results.
[Chart to be added in 485(b) filing].
Under "Does the Contract Have A Death Benefit?" on page P-7, please add the
following after the last paragraph.
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Optional Enhanced Death Benefit. Subject to availability in your state, at
issue, if you are 79 or younger, you may supplement the basic death benefit
by electing the Enhanced Death Benefit. You must satisfy the conditions
set forth in the rider to receive the benefit, and there are charges
associated with the benefit. Once you elect the Enhanced Death Benefit,
you may not cancel it.
Prospectus Supplement
The date of the Statement of Additional Information listed on the
Prospectus cover page is September __, 2000.
Under "Fee Table" on page 3, please add the following. After "Variable
Account Annual Expenses" add:
Optional Rider Annual Expenses
Maximum Guaranteed Minimum Income Benefit Charge................. 0.25%
(deducted monthly as a percentage of Account Value)
Maximum Enhanced Death Benefit Charge............................ 0.30%
(deducted monthly as a percentage of Account Value)
At the end of the paragraph before the Examples on page 7, please add the
following.
To the extent the examples reflect the charges for the optional
Guaranteed Minimum Income Benefit ("GMIB") and the optional Enhanced Death
Benefit ("EDB"), the examples assume the maximum charges apply.
Please add the following examples to the end of the Examples.
<TABLE>
<CAPTION>
With Maximum Rider Charges
-----------------------------------------------------------------------
1. If you surrender your Contract 2. If you do not surrender your
or you annuitize at the end Contract at the end
Fund of each time period of each time period
---- ------------------- -------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ----- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
AIM Variable Insurance Funds:
AIM V.I. Government Securities Fund..................... $101 $156 $208 $381 $31 $ 96 $168 $381
AIM V.I. Growth and Income Fund......................... 99 152 201 364 29 92 161 364
AIM V.I. International Equity Fund...................... 101 158 212 390 31 98 172 390
AIM V.I. Value Fund..................................... 99 152 200 363 29 92 160 363
The Alger American Fund:
Alger American MidCap Growth Portfolio.................. 100 154 205 374 30 94 165 374
Alger American Income and Growth Portfolio.............. 98 150 197 355 28 90 157 355
Alger American Small Capitalization Portfolio........... 101 156 208 381 31 96 168 381
Liberty Variable Investment Trust:
Colonial High Yield Securities Fund, Variable Series.... 100 153 202 368 30 93 162 368
Colonial Small Cap Value Fund, Variable Series.......... 102 159 214 394 32 99 174 394
Colonial Strategic Income Fund, Variable Series......... 99 151 200 361 29 91 160 361
Colonial U.S. Growth and Income Fund, Variable Series... 100 155 207 378 30 95 167 378
Liberty All-Star Equity Fund, Variable Series........... 101 158 211 387 31 98 171 387
Newport Tiger Fund, Variable Series..................... 104 166 226 421 34 106 186 421
Stein Roe Global Utilities Fund, Variable Series........ 99 152 201 364 29 92 161 364
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
With Maximum Rider Charges
-----------------------------------
1. If you surrender your Contract
or you annuitize at the end
Fund of each time period
---- ----------------------------------
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
<S> <C> <C> <C> <C>
SteinRoe Variable Investment Trust:
Stein Roe Growth Stock Fund, Variable Series................. 98 149 195 351
Stein Roe Balanced Fund, Variable Series..................... 98 147 192 345
MFS(R) Variable Insurance Trust(SM)
MFS Growth With Income Series................................ 100 155 207 378
MFS High Income Series....................................... 101 156 209 382
MFS Research Series.......................................... 100 155 206 376
MFS Total Return Series...................................... 101 156 208 381
MFS Capital Opportunities Series............................. 101 156 209 382
The Universal Institutional Funds, Inc.:
The Global Equity Portfolio.................................. 103 164 222 413
The Mid Cap Value Portfolio.................................. 102 161 217 400
The Value Portfolio.......................................... 100 154 205 374
Oppenheimer Variable Account Funds:
Oppenheimer Bond Fund/VA..................................... 99 151 198 359
Oppenheimer Capital Appreciation Fund/VA..................... 98 150 197 355
Oppenheimer Small Cap Growth Fund/VA......................... 105 170 233 437
Sage Life Investment Trust:
EAFE(R) Equity Index Fund................................... 101 156 208 381
S&P 500 Equity Index Fund.................................... 97 145 188 336
Money Market Fund............................................ 98 148 194 349
T. Rowe Price Equity Series, Inc.:
T. Rowe Price Equity Income Portfolio........................ 100 154 205 374
T. Rowe Price Mid-Cap Growth Portfolio....................... 100 154 205 374
T. Rowe Price Personal Strategy Balanced Portfolio........... 101 156 208 381
<CAPTION>
With Maximum Rider Charges
------------------------------------------
2. If you do not surrender your Contract
at the end
Fund of each time period
---- -----------------------------------------
1 Year 3 Years 5 Years 10 Years
------- --------- --------- ----------
<S> <C> <C> <C> <C>
SteinRoe Variable Investment Trust:
Stein Roe Growth Stock Fund, Variable Series................. 28 89 155 351
Stein Roe Balanced Fund, Variable Series..................... 28 87 152 345
MFS(R) Variable Insurance Trust(SM)
MFS Growth With Income Series................................ 30 95 167 378
MFS High Income Series....................................... 31 96 169 382
MFS Research Series.......................................... 30 95 166 376
MFS Total Return Series...................................... 31 96 168 381
MFS Capital Opportunities Series............................. 31 96 169 382
The Universal Institutional Funds, Inc.:
The Global Equity Portfolio.................................. 33 104 182 413
The Mid Cap Value Portfolio.................................. 32 101 177 400
The Value Portfolio.......................................... 30 94 165 374
Oppenheimer Variable Account Funds:
Oppenheimer Bond Fund/VA..................................... 29 91 158 359
Oppenheimer Capital Appreciation Fund/VA..................... 28 90 157 355
Oppenheimer Small Cap Growth Fund/VA......................... 35 110 193 437
Sage Life Investment Trust:
EAFE(R) Equity Index Fund.................................. 31 96 168 381
S&P 500 Equity Index Fund.................................... 27 85 148 336
Money Market Fund............................................ 28 88 154 349
T. Rowe Price Equity Series, Inc.:
T. Rowe Price Equity Income Portfolio........................ 30 94 165 374
T. Rowe Price Mid-Cap Growth Portfolio....................... 30 94 165 374
T. Rowe Price Personal Strategy Balanced Portfolio........... 31 96 168 381
</TABLE>
Under "What Are The Contracts?" on page 7, please add the following after
the fourth paragraph.
We also offer you two optional benefits for an additional charge -- the
GMIB and EDB. These riders can provide additional benefits that we discuss
in "What Are My Income Payment Options" and "Does the Contract Have A Death
Benefit."
Under "What Are My Income Payment Options?" on page 8 please add the
following after the subsection entitled "Variable Income Payments."
Optional Guaranteed Minimum Income Benefit Rider - The GMIB is an
optional rider that ensures, if you satisfy the rider's conditions, the
availability of guaranteed minimum lifetime income payments on the Income
Date. Regardless of investment experience, this rider guarantees that you
will never receive income payments that are less than the GMIB. For a
particular Income Plan and frequency of payment, we determine the GMIB by
multiplying (a) by (b) where:
a) is the Highest Anniversary Value determined on the Income Date;
and
b) is the applicable Monthly Income Payment rate per $1,000 shown in
the Income Tables in your Contract Schedule.
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<PAGE>
We then compare the GMIB to what we would pay you if you had not
elected the GMIB rider. We determine this amount by applying your current
Account Value to our then current monthly income rate per $1,000 (the
current monthly income rates may be more favorable than the guaranteed
rates shown in the Contract to calculate the GMIB). We will pay you the
amount that results in higher income payments.
The Highest Anniversary Value is the greatest anniversary value
attained in the following manner. We will calculate an anniversary value
for each Contract Anniversary before your Income Date, excluding, however,
Contract Anniversaries that come after you attain age 80 or before the
effective date of the GMIB rider. An anniversary value for a Contract
Anniversary equals:
. the Account Value on that Contract Anniversary;
. increased by the dollar amount of any purchase payments made since
that Contract Anniversary; and
. reduced for any withdrawals taken since that anniversary. This
reduction will be made in proportion to the reduction of Account
Value that results from the withdrawal.
We show an example of how the GMIB works in Appendix D.
Contract Continuation Option. An Owner's surviving spouse who is
eligible to continue the Contract under the Contract Continuation Option,
may also be eligible to continue this rider. To do so, the surviving spouse
must give our Customer Service Center notice within 30 days of the Business
Day we receive proof of the Owner's death. If the spouse is eligible under
our then existing rules, we will continue the rider and assess charges
based on the spouse's attained age and our then current charges. The
rider's effective date for purposes of reviewing Contract Anniversaries to
determine the Highest Anniversary Value will be the Business Day the new
Owner elects to continue the rider. All of the other terms and conditions
of the rider will continue as before.
When may you elect the GMIB? You may take income payments using the
GMIB on any Contract Anniversary, or the thirty-day period that follows,
after (a) the Contract has been in effect for seven years, and (b) the
Annuitant has attained age 60.
Income Plans Available with the GMIB. You may elect to use the GMIB
with the following Income Plans in your Contract:
. Income Plan 1. Fixed Life Annuity;
. Income Plan 2. Fixed Life Annuity with 10 or 20 Years Certain; and
. Income Plan 3. Fixed Joint and Last Survivor Annuity.
You may also elect any other Income Plan we offer on the Income Date
for which you and the Annuitant are then eligible and we then make
available for use with the GMIB.
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<PAGE>
Other GMIB Terms and Conditions.
. The GMIB must be elected at time of application;
. The Annuitant must be age 80 or younger at the time your Contract
is issued;
. Election of the GMIB as an optional benefit is irrevocable and
charges for the GMIB will remain in force for as long as your
Contract remains in force, or until your Income Date if sooner.
Important Considerations Regarding the GMIB. While a GMIB does provide a
guaranteed income, a GMIB may not be appropriate for all investors. You should
understand the GMIB completely and analyze it thoroughly before you elect the
GMIB.
. A GMIB does not in any way guarantee the performance of any Fund,
or any other investment option under your Contract.
. Once elected, the GMIB is irrevocable. This means that before the
Income Date if current monthly income payment rates per $1,000 and
the investment performance of the Funds are such as would result in
higher income payments than would be the case under the GMIB using
guaranteed monthly income payment rates, the GMIB charges will
still be assessed.
. The GMIB in no way restricts or limits your rights to take income
payments at other times permitted under your Contract ---
therefore, you should consider the GMIB as an income payment
"floor."
. Please take advantage of the guidance of a qualified financial
adviser in evaluating the GMIB options, as well as all other
aspects of your Contract.
. The GMIB may not be approved in all states.
Under "What Are The Expenses Under A Contract?" on page 20, please add the
following after "Purchase Payment Tax Charge."
Optional Benefits Charges.
Guaranteed Minimum Income Benefit. If you elect the optional
Guaranteed Minimum Income Benefit, we will deduct an additional charge
equal on an annual basis to 0.25% of your Account Value on the date of
deduction during the Accumulation Phase. We calculate this charge as a
percentage of your Account Value on the date of deduction, and deduct it
proportionately from the Fixed and Variable Sub-Accounts in which you are
invested. Charges are deducted on your Contract Date and monthly
thereafter. These charges will continue while your Contract is in force
unless (a) you apply all of your Account Value to an Income Plan or income
payments cease for any reason, (b) the death benefit is paid or has begun
to be paid, or (c) the Covered Person dies and an eligible surviving spouse
chooses not to continue this rider even though he or she continues the
Contract.
Enhanced Death Benefit. If you elect the optional Enhanced Death
Benefit, we will deduct an additional charge equal on an annual basis to
0.30% of your Account Value on the date of deduction during the
Accumulation Phase. We calculate this charge
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<PAGE>
as a percentage of your Account Value on the date of deduction, and deduct
it proportionately from the Fixed and Variable Sub-Accounts in which you
are invested. Charges are deducted on your Contract Date and monthly
thereafter. These charges will continue while your Contract is in force
unless (a) you apply the Account Value to an Income Plan, (b) the death
benefit is paid or has begun to be paid, or (c) the Covered Person dies and
an eligible surviving spouse chooses not to continue this rider even though
he or she continues the Contract.
Under "How Is Contract Performance Presented?" on page 26, please add the
following before the second to last sentence under "Total Return."
We show standard performance that reflects no charges for the optional
benefits and that reflects the charges for the optional benefits.
Under "Does The Contract Have A Death Benefit?" on page 27, please add the
following before "Proof of Death."
Optional Enhanced Death Benefit Rider
You may enhance the Contract's basic death benefit by electing the
optional Enhanced Death Benefit rider. The Enhanced Death Benefit rider may
provide an additional death benefit if the Owner dies before the Income
Date (or the Annuitant, if the Owner is not a natural person). We
determine the Enhanced Death Benefit on the Business Day we receive proof
of death by subtracting (b) from (a), and then multiplying by (c), where:
a) is your Account Value on the date of calculation;
b) is the Net Purchase Amount; and
c) is the Benefit Rate.
The Enhanced Death Benefit will not exceed the Maximum Benefit Amount as
shown in your Contract Schedule. The Maximum Benefit Amount is guaranteed
not to be less than 100% of your Net Purchase Amount.
On the Contract Date, the Net Purchase Amount is equal to your Initial
Purchase Payment. Thereafter, the Net Purchase Amount is increased by any
additional purchase payments you make; and is reduced in proportion to the
reduction in Account Value that results from withdrawals you make.
The Benefit Rate is 40.0% for issue ages 69 and under, and 25.0% for
issue ages 70 through 79.
We will pay the Enhanced Death Benefit to your Beneficiary or
surviving joint Owner upon receipt of written proof of death. Please note
that if your Account Value
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<PAGE>
has declined such that it is less than the Net Purchase Amount, no Enhanced
Death Benefit will be payable.
We show examples of the Enhanced Death Benefit in Appendix E.
Contract Continuation Option. An Owner's surviving spouse who is
eligible to continue the Contract under the Contract Continuation Option,
may also be eligible to continue this rider. To do so, the surviving spouse
must give our Customer Service Center notice within 30 days of the Business
Day we receive proof of the Owner's death. If the spouse is eligible under
our then existing rules, we will continue the rider based on our then
current charges for the new Owner's attained age. The rider's effective
date for purposes of calculating the Net Purchase Amount will be the
Business Day the new Owner elects to continue the rider. On this date the
Net Purchase Amount will be equal to the Account Value. After that, the Net
Purchase Amount will be increased by any additional purchase payments the
new Owner makes, and will be reduced in proportion to the reduction in
Account Value that results from withdrawals the new Owner makes. All of the
other terms and conditions of the rider will continue as before.
Other Enhanced Death Benefit Terms and Conditions.
. You can only elect the Enhanced Death Benefit at time of
application;
. You must be age 79 or younger at the time the Contract is issued;
. If you elect the Enhanced Death Benefit as an optional benefit it
is irrevocable and charges for it will remain in force during the
Accumulation Phase (unless not renewed by a surviving spouse who
continues the Contract under the Contract Continuation Option).
Important Considerations Regarding the Enhanced Death Benefit Option.
. The Enhanced Death Benefit rider does not guarantee that any
amounts under the rider will become payable upon death. Market
declines resulting in your Account Value at death being less than
the Net Purchase Amount will result in no Enhanced Death Benefit
being payable.
. Once elected, the Enhanced Death Benefit is irrevocable. This
means that even if the investment performance of the Funds are
such as would result in a basic death benefit that is sufficient
for your needs, the Enhanced Death Benefit charges will still be
assessed.
. Please take advantage of the guidance of a qualified financial
adviser in evaluating the Enhanced Death Benefit option, as well
as all other aspects of the Contract.
. The Enhanced Death Benefit may not be available in all states.
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<PAGE>
APPENDIX D
GUARANTEED MINIMUM INCOME BENEFIT
Below is an example of how the GMIB will work. The example assumes the
following:
. you are a male whose age last birthday is 55;
. you purchase a Contract with the GMIB rider;
. you do not make any additional purchase payments nor any withdrawals;
. you elect to receive income from the Contract 10 years later, at
attained age 65; and
. you elect a Life Annuity with 10 Year Certain, which is an eligible
Income Plan under the GMIB rider.
Assume your Account Value is $200,000 and that your Highest Anniversary
Value ("HAV") is $250,000.
Calculate the GMIB:
1. Your guaranteed Monthly Income Payment rate per $1,000 (as shown in
your Contract Schedule) is $5.42.
2. Your HAV is $250,000.
3. The GMIB = $1,355 [$5.42 x $250,000 / $1,000].
Therefore, under this Income Plan, we guarantee that your monthly income
payment will not be less than $1,355.00.
Different guaranteed minimum Monthly Income Payment rates per $1,000 will
apply for females, for males who begin income payments at ages other than the
age shown above, or for income payments under different Income Plans. In these
cases, the GMIB will be different.
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APPENDIX E
ENHANCED DEATH BENEFIT
Below are examples of how the Enhanced Death Benefit will work. All
examples assume the following:
. The Owner is a male whose age last birthday is 55;
. The Owner purchases a Contract with the Enhanced Death Benefit rider;
. The Owner makes an initial purchase payment of $150,000;
. The Owner does not make any additional purchase payments nor any
withdrawals;
Example 1.
Assume the Account Value is $200,000, the Highest Anniversary Value ("HAV")
is $175,000 and the Owner dies of natural causes.
Calculate the basic Death Benefit:
1. The Account Value determined as of the Business Day we receive proof of
the Owner's death is $200,000.
2. The sum of all purchase payments made is $150,000.
3. The HAV is $175,000.
4. The basic Death Benefit is $200,000 [the greatest of (1), (2) and (3)].
Calculate the Enhanced Death Benefit:
5. The Benefit Rate for an issue age of 55 is 40.0%.
6. The Net Purchase Amount is $150,000.
7. The Maximum Benefit Amount is $60,000 ($150,000 x .40).
8. The Enhanced Death Benefit is $20,000 ([.40 x [$200,000 - $150,000] =
$20,000, but not in excess of $60,000).
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We will pay the Owner's Beneficiary the basic Death Benefit of $200,000 and
the Enhanced Death Benefit of $20,000, for a total payment of $220,000.
Example 2.
Assume the Account Value is $500,000, the HAV is $300,000 and the Owner
dies of natural causes.
Calculate the basic Death Benefit:
1. The Account Value determined as of the Business Day we receive proof of
the Owner's death is $500,000.
2. The sum of all purchase payments made is $150,000.
3. The HAV is $300,000.
4. The basic Death Benefit is $500,000 [the greatest of (1), (2) and (3)].
Calculate the Enhanced Death Benefit:
5. The Benefit Rate for an issue age of 55 is 40.0%.
6. The Net Purchase Amount is $150,000.
7. The Maximum Benefit Amount is $60,000 ($150,000 x .40).
8. The Enhanced Death Benefit is $60,000 ([.40 x [$500,000 - $150,000] =
$140,000, but not in excess of $60,000).
We will pay the Owner's Beneficiary the basic Death Benefit of $500,000 and
the Enhanced Death Benefit of $60,000, for a total payment of $560,000.
Example 3.
Assume the Account Value is $100,000, the HAV is $175,000 and the Owner
dies of natural causes.
Calculate the basic Death Benefit:
1. The Account Value determined as of the Business Day we receive proof of
the Owner's death is $100,000.
2. The sum of all purchase payments made is $150,000.
3. The HAV is $175,000.
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4. The basic Death Benefit is $175,000 [the greatest of (1), (2) and (3)].
Calculate the Enhanced Death Benefit:
5. The Benefit Rate for an issue age of 55 is 40.0%.
6. The Net Purchase Amount is $150,000.
7. The Maximum Benefit Amount is $60,000 ($150,000 x .40).
8. The Enhanced Death Benefit is $0 ([.40 x [$100,000 - $150,000] = $0,
but not in excess of $60,000).
We will pay the Owner's Beneficiary the basic Death Benefit of $175,000 and
the Enhanced Death Benefit of $0, for a total payment of $175,000.
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<PAGE>
Part A of Post-Effective Amendment No. 4 filed May 1, 2000 is incorporated
herein by reference.
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<PAGE>
Statement of Additional Information
Dated September __, 2000
Flexible Payment Deferred Combination Fixed and Variable Annuity
Contracts
issued by:
The Sage Variable Annuity Account A and Sage Life Assurance of
America, Inc.
Customer Service Center:
P.O. Box 290680
Wethersfield, CT 06129-0680
Telephone: (877) 835-7243
(Toll Free)
This Statement of Additional Information expands upon subjects we discussed in
the current Prospectus for the Flexible Payment Deferred Combination Fixed and
Variable Annuity Contracts (the "Contracts" offered by Sage Life Assurance of
America, Inc. ("we," "us," "our," "Sage Life," or the "Company"). You may obtain
a copy of the Prospectus dated May 1, 2000 by calling 1-877-835-7243 (Toll Free)
or by writing to our Customer Service Center at the above address. You may also
obtain a copy of the Prospectus by accessing the Securities and Exchange
Commission's website at http://www.sec.gov. The terms we used in the current
Prospectus for the Contracts are incorporated into and made a part of this
Statement of Additional Information.
This Statement of Additional Information is not a prospectus and
should be read only in conjunction with the Prospectus for
the Contracts and the prospectuses for the Trusts.
<PAGE>
Statement of Additional Information
Table of Contents
Page
----
Assignment................................................................ 1
Change of Owner, Beneficiary, or Annuitant................................ 1
Misstatement and Proof of Age, Sex or Survival............................ 1
Incontestability.......................................................... 1
Participation............................................................. 1
Beneficiary Designation................................................... 1
Tax Status of the Contracts............................................... 2
Diversification Requirements......................................... 2
Owner Control........................................................ 2
Required Distribution from Non-Qualified Contracts................... 2
Qualified Contracts....................................................... 3
Taxation of Withdrawals.............................................. 3
Individual Retirement Accounts (IRAs)................................ 3
SIMPLE IRAs.......................................................... 3
Roth IRAs............................................................ 3
Calculation of Historical Performance Data................................ 3
Money Market Sub-Account Yields...................................... 4
Other Variable Sub-Account Yields.................................... 5
Average Annual Total Returns......................................... 6
Other Total Returns.................................................. 7
Effect of the Annual Administration Charge on Performance Data....... 7
Use of Indexes....................................................... 7
Other Information.................................................... 7
Income Payment Provisions................................................. 8
Amount of Fixed Income Payments...................................... 8
Amount of Variable Income Payments................................... 8
Income Units......................................................... 8
Income Unit Value.................................................... 9
Exchange of Income Units............................................ 10
Safekeeping of Account Assets............................................ 10
Legal Matters............................................................ 11
Other Information........................................................ 11
Financial Statements..................................................... 11
<PAGE>
Assignment
You may assign your Contract at any time before the Income Date. No
assignment will be binding on us unless we receive Satisfactory Notice. We will
not be liable for any payments made or actions we take before we accept the
assignment. An absolute assignment will revoke the interest of any revocable
Beneficiary. We are not responsible for the validity of any assignment. An
assignment may be a taxable event.
Change of Owner, Beneficiary, or Annuitant
During your lifetime and while your Contract is in force, you can transfer
ownership of your Contract, change the Beneficiary, or change the Annuitant.
However, you cannot change the Annuitant after the Income Date. To make any of
these changes, you must send us Satisfactory Notice. If accepted, any change in
Owner, Beneficiary, or Annuitant will take effect on the date you signed the
notice. Any of these changes will not affect any payment made or action we took
before our acceptance. A change in Owner may be a taxable event and may also
affect the amount of death benefit payable under your Contract.
Misstatement and Proof of Age, Sex or Survival
We may require proof of age, sex, or survival of any person upon whose age,
sex, or survival any payments depend. If the age or sex of the Annuitant has
been misstated, or if the age of the Owner has been misstated, the benefits will
be those that the Account Value applied would have provided for the correct age
and sex. If we have made incorrect income payments, we will pay the amount of
any underpayments. We will deduct the amount of any overpayment from future
income payments.
Incontestability
Your Contract is incontestable from its Contract Date.
Participation
The Contracts do not participate in our surplus or profits, and we do not
pay dividends on the Contracts.
Beneficiary Designation
This is as shown in the application. It includes the name of the
Beneficiary and the order and method of payment. If you name "estate" as a
Beneficiary, it means the executors or administrators of your estate. If you
name "children" of a person as a Beneficiary, only children born to or legally
adopted by that person as of an Owner's date of death will be included.
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<PAGE>
We may rely on an affidavit as to the ages, names, and other facts about
all Beneficiaries. We will incur no liability if we act on such affidavit.
Tax Status of the Contracts
Tax law imposes several requirements that variable annuities must satisfy
in order to receive the tax treatment normally accorded to annuity contracts.
Diversification Requirements. The Internal Revenue Code (Code) requires
that the investments of each investment division of the separate account
underlying the Contracts be "adequately diversified" in order for the Contracts
to be treated as annuity contracts for federal income tax purposes. It is
intended that each investment division, through the fund in which it invests,
will satisfy these diversification requirements.
Owner Control. In certain circumstances, owners of variable annuity
contracts have been considered for Federal income tax purposes to be the owners
of the assets of the separate account supporting their contracts due to their
ability to exercise investment control over those assets. When this is the case,
the contract owners have been currently taxed on income and gains attributable
to the variable account assets. There is little guidance in this area, and some
features of our Contracts, such as the flexibility of an owner to allocate
premium payments and transfer amounts among the investment divisions of the
separate account, have not been explicitly addressed in published rulings. While
we believe that the Contracts do not give Owners investment control over
separate account assets, we reserve the right to modify the Contracts as
necessary to prevent an Owner from being treated as the Owner of the separate
account assets supporting the Contract.
Required Distributions from Non-Qualified Contracts. In order to be treated
as an annuity contract for Federal income tax purposes, section 72(s) of the
Code requires any Non-Qualified Contract to contain certain provisions
specifying how your interest in the Contract will be distributed in the event of
the death of an owner of the Contract. Specifically, section 72(s) requires that
(a) if any owner dies on or after the annuity starting date, but prior to the
time the entire interest in the contract has been distributed, the entire
interest in the contract will be distributed at least as rapidly as under the
method of distribution being used as of the date of such owner's death; and (b)
if any owner dies prior to the annuity starting date, the entire interest in the
contract will be distributed within five years after the date of such owner's
death. These requirements will be considered satisfied as to any portion of an
owner's interest which is payable to or for the benefit of a designated
beneficiary and which is distributed over the life of such designated
beneficiary or over a period not extending beyond the life expectancy of that
beneficiary, provided that such distributions begin within one year of the
owner's death. The designated beneficiary refers to a natural person designated
by the owner as a beneficiary and to whom ownership of the contract passes by
reason of death. However, if the designated beneficiary is the surviving spouse
of the deceased owner, the contract may be continued with the surviving spouse
as the new owner.
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<PAGE>
The Non-Qualified Contracts contain provisions that are intended to comply
with these Code requirements, although no regulations interpreting these
requirements have yet been issued. We intend to review such provisions and
modify them if necessary to assure that they comply with the applicable
requirements when such requirements are clarified by regulation or otherwise.
Qualified Contracts
Taxation of Withdrawals. When you take a withdrawal from a Qualified
Contract, a pro-rata portion of the amount you receive is taxable. This portion
is based on the ratio of your investment in the contract (such as non-deductible
purchase payments or other consideration paid for the Contract) to your total
accrued benefit balance under the retirement plan. As a result, the investment
in the contract for a Qualified Contract can be zero. Special tax rules apply to
distributions from a Roth IRA.
Individual Retirement Accounts (IRAs). IRAs are defined in Section 408 of
the Code and permit individuals to make annual contributions of up to the lesser
of $2,000 or the amount of compensation includible in the individual's gross
income for the year. The contributions may be deductible in whole or in part,
depending on the individual's income. Distributions from certain pension plans
may be "rolled over" into an IRA on a tax-deferred basis without regard to these
limits. Amounts in the IRA (other than nondeductible contributions) are taxed
when distributed from the IRA. A 10% penalty tax generally applies to
distributions made before age 59, unless certain exceptions apply.
SIMPLE IRAs. SIMPLE IRAs permit certain small employers to establish SIMPLE
plans as provided by Section 408(p) of the Code, under which employees may elect
to defer to a SIMPLE IRA a percentage of compensation up to $6,000 (as increased
for cost of living adjustments). The sponsoring employer is required to make
matching or non-elective contributions on behalf of employees. Distributions
from SIMPLE IRAs are subject to the same restrictions that apply to IRA
distributions and are taxed as ordinary income. Subject to certain exceptions,
premature distributions prior to age 59 are subject to a 10 percent penalty
tax, which is increased to 25 percent if the distribution occurs within the
first two years after the commencement of the employee's participation in the
plan.
Roth IRAs. Roth IRAs are described in Code section 408A. They permit
certain eligible individuals to contribute to make non-deductible contributions
to a Roth IRA in cash or as a rollover or transfer from another Roth IRA or
other IRA. A rollover from or conversion of an IRA to a Roth IRA is generally
subject to tax and other special rules apply. The Owner may wish to consult a
tax adviser before combining any converted amounts with any other Roth IRA
contributions, including any other conversion amounts from other tax years.
Distributions from a Roth IRA generally are not taxed, except that, once
aggregate distributions exceed contributions to the Roth IRA, income tax and a
10% penalty tax may apply to distributions made (1) before age 59 (subject
to certain exceptions) or (2) during the five taxable years starting with the
year in which the first
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<PAGE>
contribution is made to any Roth IRA. A 10% penalty tax may apply to amounts
attributable to a conversion from an IRA if they are distributed during the five
taxable years beginning with the year in which the conversion was made.
Calculation of Historical Performance Data
From time to time, we may disclose yields, total returns, and other
performance data of the Variable Sub-Accounts and the Funds. Such performance
data will be computed, or accompanied by performance data computed, in
accordance with the standards defined by the SEC.
Money Market Sub-Account Yields
From time to time, advertisements and sales literature may quote the
current annualized yield of the Variable Sub-Account investing in the Money
Market Fund (the "Money Market Sub-Account") of the Sage Life Investment Trust
for a seven-day period in a manner that does not take into consideration any
realized or unrealized gains or losses on shares of the Money Market Fund.
We compute the current annualized yield by determining the net change
(exclusive of realized gains and losses on the sale of securities and unrealized
appreciation and depreciation) at the end of the seven-day period in the value
of a hypothetical account under a Contract having a balance of one Accumulation
Unit of the Money Market Sub-Account at the beginning of the period, dividing
such net change in Account Value by the value of the hypothetical account at the
beginning of the period to determine the base period return, and annualizing
this quotient on a 365-day basis. The net change in Account Value reflects (1)
net income from the Money Market Fund attributable to the hypothetical account;
and (2) charges and deductions imposed under a Contract which are attributable
to the hypothetical account. The charges and deductions include the per unit
charges for the hypothetical account for the annual administration charge and
the Asset-Based Charges. For purposes of calculating current yields for a
Contract, an average per unit annual administration charge is used based on the
$40 Annual Administration Charge. We calculate current yield according to the
following formula:
Current Yield = ((NCS - ES)/UV)(365/7)
Where:
NCS = the net change in the value of the
Money Market Fund (exclusive of realized
gains or losses on the sale of
securities, unrealized appreciation and
depreciation, and income other than
investment income) for the seven-day
period attributable to a hypothetical
account having a balance of one
Accumulation Unit.
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<PAGE>
ES = per unit expenses attributable to the hypothetical
account for the seven-day period.
UV = the unit value for the first day of the seven-day
period.
Effective Yield = (1+((NCS - ES)/UV))/(365/7)/-1
Where:
NCS = the net change in the value of the
Money Market Fund (exclusive of realized
gains or losses on the sale of
securities, unrealized appreciation and
depreciation and income other than
investment income) for the seven-day
period attributable to a hypothetical
account having a balance of one Accumulation Unit.
ES = per unit expenses attributable to the
hypothetical account for the seven-day period.
UV = the unit value for the first day of the
seven-day period.
Because of the charges and deductions imposed under the Contracts, the
yield for the Money Market Sub-Account is lower than the yield for the Money
Market Fund. Yield calculations do not take into account the surrender charge
that we assess on certain withdrawals and surrender of Account Value.
The current and effective yields on amounts held in the Money Market
Sub-Account normally fluctuate on a daily basis. Therefore, the disclosed yield
for any given past period is not an indication or representation of future
yields or rates of return. The Money Market Sub-Account's actual yield is
affected by changes in interest rates on money market securities, average
portfolio maturity of the Money Market Fund, the types and quality of portfolio
securities held by the Money Market Fund and the Money Market Fund's operating
expenses. Yields on amounts held in the Money Market Sub-Account may also be
presented for periods other than a seven-day period.
As of December 31, 1999 the current yield for the Money Market Sub-Account
was ____________, and the effective yield for the Money Market Sub-Account was
____________.
Other Variable Sub-Account Yields
We compute the yield by: 1) dividing the net investment income of the Fund
attributable to the Variable Sub-Account units less expenses allocated to a
Variable Sub-Account for the period; by 2) the maximum offering price per unit
on the last day of the period times the daily average number of Accumulation
Units outstanding for the period; and then 3) compounding that yield for a
six-month period; and then 4) multiplying that result by two (2). Expenses
allocated to a Variable Sub-Account include the Annual Administration Charge and
the Asset-Based Charges. The yield calculation assumes an annual administration
charge of $40 per Contract deducted at the end of each Contract Year on the
Contract Anniversary. For purposes of calculating the 30-day or one-month
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<PAGE>
yield, we use an average administration cost charge based on the average Account
Value in the Variable Sub-Account to determine the amount of the charge
attributable to the Variable Sub-Account for the 30-day or one-month period. We
calculate the 30-day or one-month yield according to the following formula:
Yield = 2 x ((((NI - ES)/(U x UV)) + 1)/6/-1)
Where:
NI = net income of the portfolio for the 30-day
or one-month period attributable to the Variable
Sub-Account's units.
ES = expenses of the Variable Sub-Account for the
30-day or one-month period.
U = the average number of units outstanding.
UV = the unit value at the close (highest) of the last
day in the 30-day or one-month period.
Because of the charges and deductions imposed under the Contracts, the
yield for the Variable Sub-Account is lower than the yield for the corresponding
Fund.
The yield on amounts invested in the Variable Sub-Accounts normally
fluctuates over time. Therefore, the disclosed yield for any given past period
is not an indication or representation of future yields or rates of return. A
Variable Sub-Account's actual yield is affected by the types and quality of
securities held by the corresponding Fund and that Fund's operating expenses.
Yield calculations do not take into account the surrender charge that is
assessed on certain withdrawals and surrenders of Account Value.
Average Annual Total Returns
From time to time, sales literature or advertisements may also quote
average annual total returns for one or more of the Variable Sub-Accounts for
various periods of time.
When a Variable Sub-Account or Fund has been in operation for 1, 5, and 10
years, respectively, the average annual total return for these periods will be
provided. Otherwise, average annual total return will be shown from inception of
the Variable Sub-Account. Average annual total returns for other periods of time
may, from time to time, also be disclosed.
Standard average annual total returns represent the average annual
compounded rates of return that would equate an initial investment of $1,000
under a Contract to the Surrender Value of that investment as of the last day of
each of the periods. The ending
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<PAGE>
date for each period for which total return quotations are provided will be for
the most recent calendar quarter-end practicable, considering the type of the
communication and the media through which it is communicated.
We calculate standard average annual total returns using Variable Sub-
Account unit values which we calculate on each Business Day based on the
performance of the Variable Sub-Account's underlying Fund. The calculation
assumes that annual Asset-Based Charges of 1.40% during the first seven Contract
Years (decreasing to 1.25% during Contract Years 8 and later) are deducted
monthly beginning on the Contract Date. The calculation also assumes that the
Annual Administration Charge is $40 per year per Contract deducted at the end of
each Contract Year during the first seven Contract Years and that the maximum
optional benefit changes are deducted. For purposes of calculating average
annual total return, we use an average per-dollar per-day annual administration
charge attributable to the hypothetical account for the period. The calculation
also assumes surrender of Account Value at the end of the period for the return
quotation, taking into account any applicable Free Withdrawal Amount. We may
also include standard average annual total return without the optional benefit
charges when we show standard average annual total return with the optional
benefit charges. We calculate the total return according to the following
formula:
TR = (ESV/P)1/N-1
Where:
TR = the average annual total return for the period.
ESV = the Surrender Value of the hypothetical account at
the end of the period.
P = a hypothetical initial payment of $1,000.
N = the number of years in the period.
[Charts to be added in 485 (b) filing].
We may also show non-standard average annual total returns, calculated
the same way as standard average annual total returns, except that the Annual
Administration Charge and the surrender charge are not included in the
calculations. The following chart shows the non-standard average annual total
returns for the period from ____ 1999 through December 31, 1999.
[Chart added to 485(b) filing.]
Other Total Returns
We may disclose cumulative total returns in conjunction with the standard
formats described above. We will calculate the cumulative total returns using
the following formula:
CTR = (ESV/P) - 1
Where:
CTR = The cumulative total return for the period.
ESV = The ending Surrender Value of the hypothetical
investment at the end of the period net of
recurring charges.
P = A hypothetical single payment of $1,000.
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<PAGE>
Effect of the Annual Administration Charge on Performance Data
The Contracts provide for a $40 Annual Administration Charge (waived for
Contracts with Account Value of at least $50,000, or beginning on and after the
eighth Contract Year) that is deducted from the Sub-Accounts proportionately.
For purposes of reflecting the Annual Administration Charge in yield and total
return quotations, the average Account Value is assumed to be $30,000, so that
the annual administration charge is .1333%.
Use of Indexes
From time to time, we may present the performance of certain historical
indexes in advertisements or sales literature. We may compare the performance of
these indexes to the performance of certain Variable Sub-Accounts or Funds, or
we may present without such a comparison.
Other Information
The following is a partial list of those publications which we may note in the
Funds' sales literature and/or shareholder materials which contain articles
describing investment results or other data relative to one or more of the
Variable Sub-Accounts. We also may cite other publications.
Broker World Financial World
Across the Board Advertising Age
American Banker Barron's
Best's Review Business Insurance
Business Month Business Week
Changing Times Consumer Reports
The Economist Financial Planning
Forbes Fortune
Inc. Institutional Investor
Insurance Forum Insurance Sales
Insurance Week Journal of Accountancy
Journal of Financial Service Professionals Journal of Commerce
Life Insurance Selling Life Association News
MarketFacts Manager's Magazine
National Underwriter Money
Morningstar, Inc. Nation's Business
New Choices (formerly 50 Plus) The New York Times
Pension World Pensions & Investments
Rough Notes Round the Table
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<PAGE>
U.S. Banker VARDs
The Wall Street Journal Working Woman
Income Payment Provisions
Amount of Fixed Income Payments. On the Income Date, the amount you have
chosen to apply to provide fixed income payments will be applied under the
income plan you have chosen. The monthly income payment factor in effect on the
Income Date times that amount and then divided by $1,000 will be the dollar
amount of each monthly payment. Each of these payments are guaranteed and remain
level throughout the period you selected.
The monthly income payment factor used to determine the amount of the fixed
income payments will not be less than the guaranteed minimum monthly income
payment factor shown in your Contract.
Amount of Variable Income Payments. These payments will vary in amount. The
dollar amount of each payment attributable to each Variable Sub-Account is the
number of Income Units for each Variable Sub-Account times the Income Unit value
of that Sub-Account. The sum of the dollar amounts for each Variable Sub-Account
is the amount of the total variable income payment. We will determine the Income
Unit values for each payment no earlier than five Business Days preceding the
due date of the variable income payment (except for Income Payment Option 4,
which we determine on the due date). We guarantee the payment will not vary due
to changes in mortality or expenses.
Income Units. On the Income Date, the number of Income Units for an
applicable Variable Sub-Account is determined by multiplying (1) by (2),
dividing the result by (3), and then dividing that result by (4) where:
(1) is the amount you have chosen to allocate to that Variable Sub-Account;
(2) is the monthly income payment factor for the income plan chosen;
(3) is $1,000; and
(4) is the Income Unit value for the Variable Sub-Account for the Valuation
Period ending on that date.
Income Unit Value. We calculate the value of an Income Unit at the same
time that the value of an Accumulation Unit is calculated and is based on the
same values for Fund shares and other assets and liabilities. The Income Unit
value for a Variable Sub-Account's first Business Day was set at $10. After
that, we determine the Income Unit value for every Business Day by multiplying
(a) by (b), and then dividing by (c) where:
(a) is the Income Unit value for the immediately preceding Valuation
Period;
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(b) is the "net investment factor" for the Variable Sub-Account for the
Valuation Period for which the value is being determined; and
(c) is the daily equivalent of the assumed investment rate that you have
selected and that is shown in your Contract for the number of days in
the Valuation Period.
After the Income Date, we calculate the net investment factor slightly
differently than before the Income Date. Before the Income Date, we calculate
Asset-Based Charges as a percentage of the Variable Account Value on the date of
deduction. These charges are equal on an annual basis to 1.40%, decreasing to
1.25% after the seventh Contract Year. However, on and after the Income Date, we
call these charges Variable Sub-Account Charges and deduct them from the assets
in each Variable Sub-Account on a daily basis. Therefore, the "net investment
factor" in (b), above, is determined by dividing (i) by (ii), and then
subtracting (iii) where:
(i) is the Accumulation Unit value for the current Valuation Period;
(ii) is the Accumulation Unit value for the immediately preceding
Valuation Period; and
(iii) is the daily Variable Sub-Account Charges (adjusted for the number of
days in the Valuation Period).
Illustration of Calculation of Income Unit Value
<TABLE>
<S> <C>
1. Accumulation Unit value for current Valuation Period.....................................10.0026116
2. Accumulation Unit value for immediately preceding Valuation
Period...................................................................................10.0000000
3. Net Investment Factor prior to the Income date (1)/(2)...................................1.00026116
4. Adjustment for Variable Sub-Account Charges.............................................0.000038626
5. Net Investment Factor on and after the Income Date (3)-(4)...............................1.00022253
6. Income Unit value for the immediately preceding Valuation
Period.................................................................................10.00000000
7. Daily equivalent of the assumed investment rate for the
number of days in the Valuation Period (assuming you
select 3%)=(1.031/365)...................................................................1.00008099
8. Income Unit value for current Valuation Period
[(5) x (6)]/(7).........................................................................10.00141533
</TABLE>
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Illustration of Variable Income Payments
<TABLE>
<S> <C>
1. Number of Accumulation Units....................................................................1,000
2. Accumulation Unit value....................................................................10.0026116
3. Account Value (1) x (2).....................................................................10,002.61
4. Minimum monthly income payment factor per $1,000 applied........................................10.50
5. First monthly variable income payment [(3) x (4)]/$1,000.......................................105.03
6. Income Unit value.........................................................................10.00141533
7. Number of Income Units (5)/(6)...............................................................10.50151
8. Assume Income Unit value at the end of the second month is......................................10.05
9. Second monthly variable income payment (7) x (8)...............................................105.54
10. Assume Income Unit value at the end of the third month is......................................10.10
11. Third monthly variable income payment (7) x (10)..............................................106.07
</TABLE>
Exchange of Income Units. After the Income Date, if there is an exchange of
value of a designated number of Income Units of particular Variable Sub-Accounts
into other Income Units, the value will be such that the dollar amount of the
income payment made on the date of exchange will be unaffected by the exchange.
Safekeeping of Account Assets
We hold the title to the assets of the Variable Account. The assets are
kept physically segregated and held separate and apart from our General Account
assets and from the assets in any other separate account.
We maintain records of all purchases and redemptions of Fund shares held by
each of the Variable Sub-Accounts.
A fidelity bond in the amount of approximately $10 million per occurrence
covering the Company's directors, officers, and employees has been issued by
Lloyd's of London.
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Legal Matters
All matters relating to Delaware law pertaining to the Contracts, including
the validity of the Contracts and the Company's authority to issue the
Contracts, have been passed upon by James F. Bronsdon, the Company's Vice
President, Legal and Compliance. Sutherland Asbill & Brennan LLP has provided
advice on certain matters relating to the federal securities laws.
Other Information
A registration statement has been filed with the SEC under the Securities
Act of 1933, as amended, with respect to the Contracts discussed in this
Statement of Additional Information. Not all the information set forth in the
registration statement, amendments and exhibits thereto has been included in
this Statement of Additional Information. Statements contained in this Statement
of Additional Information concerning the content of the Contracts and other
legal instruments are intended to be summaries. For a complete statement of the
terms of these documents, reference should be made to the instruments filed with
the SEC.
Financial Statements
The Variable Account began operations on February 19, 1999, and financial
statements for the Variable Account from February 19, 1999 through the period
ended December 31, 1999 are provided. Financial statements of the Company are
presented in the Prospectus.
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Sage Life
Assurance of America, Inc.
The Sage Variable Annuity Account A
For the period from February 19, 1999 (commencement
of operations) through December 31, 1999
<PAGE>
Independent Auditor's Report
To the Contractowners of
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A and the
Board of Directors and Shareholder of
Sage Life Assurance of America, Inc.
Stamford, Connecticut
We have audited the accompanying statement of assets and contractowners' equity
of The Sage Variable Annuity Account A, as of December 31, 1999, the related
statement of operations and statement of changes in net assets for the period
from February 19, 1999 (commencement of operations) to December 31, 1999. These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of The Sage Variable Annuity
Account at December 31, 1999 and the results of its operations and the changes
in its net assets for the period from February 19, 1999 (commencement of
operations) to December 31, 1999 in conformity with accounting principles
generally accepted in the United States.
February 24, 2000
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Assets and Contractowners' Equity
As of December 31, 1999
<TABLE>
<CAPTION>
-----------------------------------------------------------------------
Assets
Investment in mutual funds at market value:
<S> <C>
Sage Advisors - Money Market - 4,983 shares (cost:$4,983) $ 4,983
AIM - Government Securities - 159 shares (cost:$1,755) 1,686
AIM - Growth & Income - 24 shares (cost:$695) 772
AIM - International Equity - 342 shares (cost:$7,397) 10,012
AIM - Value - 42 shares (cost:$1,243) 1,405
Alger - Income & Growth - 91 shares (cost:$1,236) 1,592
Alger - MidCap Growth - 57 shares (cost:$1,601) 1,824
Alger - Small Cap - 14 shares (cost:$664) 788
Colonial - US Growth & Income - 108 shares (cost:2,140) 2,153
Colonial - Growth & Income - 56 shares (cost:$912) 738
Colonial - Small Cap Value - 218 shares (cost:$1,743) 1,986
Colonial - Strategic Income - 252 shares (cost:$2,811) 2,633
Liberty - All Star Equity - 162 shares (cost:$1,980) 2,023
Stein Roe - Global Utilities - 45 shares (cost:$708) 775
MFS - Total Return - 42 shares (cost:$749) 738
MFS - Growth & Income - 118 shares (cost:$2,413) 2,511
MFS - High Income - 48 shares (cost:$559) 547
MFS - Research - 33 shares (cost:$700) 765
MFS - Capital Opportunities - 36 shares (cost:$685) 774
Morgan Stanley - Large Value - 69 shares (cost:$757) 739
Morgan Stanley - MidCap Value - 120 shares (cost:$1,833) 1,880
Morgan Stanley - Global Equity - 98 shares (cost:$1,284) 1,255
Oppenheimer - Bond - 291 shares (cost:$3,390) 3,357
Oppenheimer - Capital Appreciation - 31 shares (cost:$1,222) 1,525
Oppenheimer - Small Cap - 176 shares (cost:$1,695) 2,471
State Street - S&P 500 Index - 2,696 shares (cost:$28,490) 31,701
State Street - EAFE Index - 445 shares (cost:$4,722) 5,443
Stein Roe - Growth Stock - 13 shares (cost:$689) 772
Stein Roe - Balanced - 40 shares (cost:$653) 797
T. Rowe Price - Equity Income - 88 shares (cost:$1,737) 1,648
T. Rowe Price - MidCap Growth - 110 shares (cost:$1,638) 1,913
T. Rowe Price - Personal Strategy - 50 shares (cost:$813) 803
---------
Total Invested Assets $93,009
=========
-----------------------------------------------------------------------
<CAPTION>
Contractowners' Equity
Unit
Units Value
---------------
<S> <C> <C> <C>
Sage Advisors - Money Market 479 $10.40 $ 4,983
AIM - Government Securities 170 9.94 1,686
AIM - Growth & Income 69 11.21 772
AIM - International Equity 625 16.01 10,012
AIM - Value 115 12.27 1,405
Alger - Income & Growth 115 13.90 1,592
Alger - MidCap Growth 144 12.65 1,824
Alger - Small Cap 66 11.86 788
Colonial - US Growth & Income 198 10.89 2,153
Colonial - Growth & Income 75 9.82 738
Colonial - Small Cap Value 161 12.34 1,986
Colonial - Strategic Income 261 10.09 2,633
Liberty - All Star Equity 186 10.86 2,023
Stein Roe - Global Utilities 69 11.30 775
MFS - Total Return 75 9.84 738
MFS - Growth & Income 240 10.48 2,511
MFS - High Income 54 10.15 547
MFS - Research 70 10.93 765
MFS - Capital Opportunities 69 11.30 774
Morgan Stanley - Large Value 75 9.86 739
Morgan Stanley - MidCap Value 150 12.58 1,880
Morgan Stanley - Global Equity 116 10.86 1,255
Oppenheimer - Bond 340 9.86 3,357
Oppenheimer - Capital Appreciation 111 13.79 1,525
Oppenheimer - Small Cap 155 15.93 2,471
State Street - S&P 500 Index 2,692 11.78 31,701
State Street - EAFE Index 430 12.66 5,443
Stein Roe - Growth Stock 69 11.20 772
Stein Roe - Balanced 65 12.20 797
T. Rowe Price - Equity Income 159 10.36 1,648
T. Rowe Price - MidCap Growth 152 12.59 1,913
T. Rowe Price - Personal Strategy 78 10.25 803
-------
Total Contractowners' Equity $93,009
-------
Total Liabilities and Contractowners' Equity $93,009
=======
-----------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-2
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Operations
For the Period From February 19 (commencement of operations) to
December 31, 1999
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
AIM AIM AIM
Sage Advisors Government Growth & International AIM
Total Money Mkt. Securities Income Equity Value
--------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C> <C> <C>
Income
Dividends $ 2,951 $ 1,076 $ 59 $ 7 $ 327 $21
Expenses
Policy charges (net of breakage) (533) (513) (3) (1) 24 (3)
--------------------------------------------------------------------------
Net Investment Income 2,418 563 56 6 351 18
--------------------------------------------------------------------------
Realized Gain (Loss) on Investments
Proceeds from Sales 280,432 244,864 1,064 12 2,385 -
Cost of Securities Sold 278,894 244,864 1,064 11 2,153 -
--------------------------------------------------------------------------
Net Realized Gain (Loss) 1,537 - - 1 232 -
--------------------------------------------------------------------------
Unrealized Gain (Loss) on Investments:
Beginning of period - - - - - -
End of period 9,112 - (69) 77 2,615 162
--------------------------------------------------------------------------
Net Unrealized Gain (Loss) 9,112 - (69) 77 2,615 162
--------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 13,067 $ 563 $ (13) $84 $3,198 $180
==========================================================================
---------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-3
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Operations
For the Period From February 19 (commencement of operations) to December 31,
1999
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Alger Alger Colonial Colonial Colonial
Income & Mid-Cap Alger US Growth & Growth & Small Cap
Growth Growth Small Cap Income Income Value
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Income
Dividends $ 14 $130 $ - $ 113 $ 162 $ 3
Expenses
Policy charges (net of breakage) (3) 6 (2) (3) - 4
---------------------------------------------------------------------------
Net Investment Income (Expense) 11 136 (2) 110 162 7
---------------------------------------------------------------------------
Realized Gain on Investments
Proceeds from Sales - 882 42 1,221 1 834
Cost of Securities Sold - 904 35 1,205 1 822
---------------------------------------------------------------------------
Net Realized Gain (Loss) - (22) 7 16 - 12
---------------------------------------------------------------------------
Unrealized Gain (Loss) on Investments:
Beginning of period - - - - - -
End of period 356 223 124 13 (174) 243
---------------------------------------------------------------------------
Net Unrealized Gain (Loss) 356 223 124 13 (174) 243
---------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $367 $337 $129 $ 139 $ (12) $262
===========================================================================
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-4
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Operations
For the Period From February 19 (commencement of operations) to December 31,
1999
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
Colonial Liberty Stein Roe MFS MFS MFS
Strategic All-Star Global Total Return Growth & High
Income Equity Utilities Income Income
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Income
Dividends $ 188 $ 63 $23 $ - $ 8 $ 27
Expenses
Policy charges (net of breakage) (5) 15 - (1) (5) -
----------------------------------------------------------------------
Net Investment Income (Expense) 183 78 23 (1) 3 27
----------------------------------------------------------------------
Realized Gain on Investments
Proceeds from Sales 1,706 309 16 1 1,588 425
Cost of Securities Sold 1,699 310 15 1 1,584 433
----------------------------------------------------------------------
Net Realized Gain (Loss) 7 (1) 1 - 4 (8)
----------------------------------------------------------------------
Unrealized Gain (Loss) on Investments:
Beginning of period - - - - - -
End of period (178) 43 67 (11) 98 (12)
----------------------------------------------------------------------
Net Unrealized Gain (Loss) (178) 43 67 (11) 98 (12)
----------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 12 $120 $91 $(12) $ 105 $ 7
======================================================================
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-5
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Operations
For the Period From February 19 (commencement of operations) to December 31,
1999
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Morgan Morgan Morgan
MFS Stanley Stanley Stanley
MFS Capital Large MidCap Global Oppenheimer
Research Opportunities Value Value Equity Bond
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Income
Dividends $ - $ - $ 8 $204 $ 60 $ -
Expenses
Policy charges (net of breakage) (1) (1) - 7 (1) (9)
------------------------------------------------------------------------------------
Net Investment Income (Expense) (1) (1) 8 211 59 (9)
------------------------------------------------------------------------------------
Realized Gain on Investments
Proceeds from Sales 1 16 1 844 - 2,127
Cost of Securities Sold 1 14 1 828 - 2,129
------------------------------------------------------------------------------------
Net Realized Gain (Loss) - 2 - 16 - (2)
------------------------------------------------------------------------------------
Unrealized Gain (Loss) on Investments:
Beginning of period - - - - - -
End of period 65 89 (18) 47 (29) (33)
------------------------------------------------------------------------------------
Net Unrealized Gain (Loss) 65 89 (18) 47 (29) (33)
------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $64 $90 $(10) $274 $ 30 $ (44)
====================================================================================
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-6
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Operations
For the Period From February 19 (commencement of operations) to December 31,
1999
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
Oppenheimer State Street State Street Stein Roe
Capital Oppenheimer S&P 500 EAFE Growth Stein Roe
Appreciation Small Cap Index Index Stock Balanced
-----------------------------------------------------------------------------
Investment Income:
Income
<S> <C> <C> <C> <C> <C> <C>
Dividends $ - $ - $ 299 $ 39 $ - $ -
Expenses
Policy charges (net of breakage) (3) 12 (43) 23 (1) -
-----------------------------------------------------------------------------
Net Investment Income (Expense) (3) 12 256 63 (1) -
-----------------------------------------------------------------------------
Realized Gain on Investments
Proceeds from Sales - 906 15,743 2,507 12 57
Cost of Securities Sold - 878 14,704 2,405 11 47
Net Realized Gain (Loss) - 28 1,039 102 1 10
Unrealized Gain (Loss) on Investments:
Beginning of period - - - - - -
End of period 303 776 3,211 721 83 144
-----------------------------------------------------------------------------
Net Unrealized Gain (Loss) 303 776 3,211 721 83 144
-----------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $300 $816 $ 4,506 $ 885 $83 $154
=============================================================================
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-7
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Operations
For the Period From February 19 (commencement of operations) to December 31,
1999
<TABLE>
<CAPTION>
T. Rowe Price T. Rowe Price T. Rowe Price
Equity MidCap Personal Newport
Income Growth Strategy Tiger
--------------------------------------------------------
Investment Income:
Income
<S> <C> <C> <C> <C>
Dividends $ 79 $ 18 $ 23 $ -
Expenses
Policy charges (net of breakage) (3) 5 (1) (27)
--------------------------------------------------------
Net Investment Income (Expense) 76 23 22 (27)
--------------------------------------------------------
Realized Gain on Investments
Proceeds from Sales 1,003 848 250 767
Cost of Securities Sold 987 838 249 702
--------------------------------------------------------
Net Realized Gain (Loss) 16 10 1 65
--------------------------------------------------------
Unrealized Gain (Loss) on Investments:
Beginning of period - - - -
End of period (89) 275 (10) -
--------------------------------------------------------
Net Unrealized Gain (Loss) (89) 275 (10) -
--------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from
Operations $ 3 $308 $ 13 $ 38
========================================================
----------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-8
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Changes in Net Assets
For the Period From February 19 (commencement of operations) to December 31,
1999
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
Sage Advisors AIM AIM AIM
Money Market Government Growth & International AIM
Total Securities Income Equity Value
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase in Net Assets:
Operations:
Net Investment Income $ 2,418 $ 563 $ 56 $ 6 $ 351 $ 18
Net Realized Gain (Loss) 1,537 - - 1 232 -
Net Unrealized Gain (Loss) 9,112 - (69) 77 2,615 162
----------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations 13,067 563 (13) 84 3,198 180
----------------------------------------------------------------------------------
Capital Share Transactions:
Transfers of Annuity Fund Deposits 79,942 4,420 1,699 688 6,814 1,225
----------------------------------------------------------------------------------
Net Increase in Net Assets from
Capital Share Transactions 79,942 4,420 1,699 688 6,814 1,225
----------------------------------------------------------------------------------
Total Increase in Net Assets 93,009 4,893 1,686 772 10,012 1,405
----------------------------------------------------------------------------------
Net Assets:
Beginning of Period - - - - - -
----------------------------------------------------------------------------------
End of Period $93,009 $4,983 $1,686 $772 $10,012 $1,405
==================================================================================
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-9
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Changes in Net Assets
For the Period From February 19 (commencement of operations)
to December 31, 1999
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
Alger Alger Colonial Colonial Colonial
Income & MidCap Alger US Growth Growth & Small Cap
Growth Growth Small Cap & Income Income Value
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase in Net Assets:
Operations:
Net Investment Income $ 11 $ 136 $ (2) $ 110 $ 162 $ 7
Net Realized Gain (Loss) - (22) 7 16 - 12
Net Unrealized Gain (Loss) 356 223 124 13 (174) 243
---------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 367 337 129 139 (12) 262
---------------------------------------------------------------------------
Capital Share Transactions:
Transfers of Annuity Fund Deposits 1,225 1,487 659 2,014 750 1,724
---------------------------------------------------------------------------
Net Increase in Net Assets from
Capital Share Transactions 1,225 1,487 659 2,014 750 1,724
---------------------------------------------------------------------------
Total Increase in Net Assets 1,592 1,824 788 2,153 738 1,986
---------------------------------------------------------------------------
Net Assets:
Beginning of Period - - - - - -
---------------------------------------------------------------------------
End of Period $1,592 $1,824 $788 $2,153 $ 738 $1,986
===========================================================================
-------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-10
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Changes in Net Assets
For the Period From February 19 (commencement of operations)
to December 31, 1999
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
Colonial Liberty Stein Roe MFS MFS MFS
Strategic All-Star Global Total Growth & High
Income Equity Utilities Return Income Income
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase in Net Assets:
Operations:
Net Investment Income $ 183 $ 78 $ 23 $ (1) $ 3 $ 27
Net Realized Gain (Loss) 7 (1) 1 - 4 (8)
Net Unrealized Gain (Loss) (178) 43 67 (11) 98 (12)
-----------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 12 120 91 (12) 105 7
-----------------------------------------------------------------------
Capital Share Transactions:
Transfers of Annuity Fund Deposits 2,621 1,903 684 750 2,406 540
-----------------------------------------------------------------------
Net Increase in Net Assets from
Capital Share Transactions 2,621 1,903 684 750 2,406 540
-----------------------------------------------------------------------
Total Increase in Net Assets 2,633 2,023 775 738 2,511 547
-----------------------------------------------------------------------
Net Assets:
Beginning of Period - - - - - -
-----------------------------------------------------------------------
End of Period $2,633 $2,023 $775 $738 $2,511 $547
=======================================================================
---------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-11
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Changes in Net Assets
For the Period From February 19 (commencement of operations)
to December 31, 1999
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
Morgan Morgan Morgan
MFS Stanley Stanley Stanley
MFS Capital Large MidCap Global Oppenheimer
Research Opportunities Value Value Equity Bond
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase in Net Assets:
Operations:
Net Investment Income $ (1) $ (1) $ 8 $ 211 $ 59 $ (9)
Net Realized Gain (Loss) - 2 - 16 - (2)
Net Unrealized Gain (Loss) 65 89 (18) 47 (29) (33)
------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 64 90 (10) 274 30 (44)
------------------------------------------------------------------------------------
Capital Share Transactions:
Transfers of Annuity Fund Deposits 701 684 749 1,606 1,225 3,401
------------------------------------------------------------------------------------
Net Increase in Net Assets from
Capital Share Transactions 701 684 749 1,606 1,225 3,401
------------------------------------------------------------------------------------
Total Increase in Net Assets 765 774 739 1,880 1,255 3,357
------------------------------------------------------------------------------------
Net Assets:
Beginning of Period - - - - - -
------------------------------------------------------------------------------------
End of Period $765 $774 $739 $1,880 $1,255 $3,357
====================================================================================
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-12
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Changes in Net Assets
For the Period From February 19 (commencement of operations)
to December 31, 1999
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Oppenheimer State Street State Street Stein Roe
Capital Oppenheimer S&P 500 EAFE Growth Stein Roe
Appreciation Small Cap Index Index Stock Balanced
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase in Net Assets:
Operations:
Net Investment Income $ (3) $ 12 $ 256 $ 62 $ (1) $ -
Net Realized Gain (Loss) - 28 1,039 102 1 10
Net Unrealized Gain (Loss) 303 776 3,211 721 83 144
-----------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 300 816 4,506 885 83 154
-----------------------------------------------------------------------------------------
Capital Share Transactions:
Transfers of Annuity Fund Deposits 1,225 1,655 27,195 4,558 689 643
-----------------------------------------------------------------------------------------
Net Increase in Net Assets from
Capital Share Transactions 1,225 1,655 27,195 4,558 689 643
-----------------------------------------------------------------------------------------
Total Increase in Net Assets 1,525 2,471 31,701 5,443 772 797
-----------------------------------------------------------------------------------------
Net Assets:
Beginning of Period - - - - - -
-----------------------------------------------------------------------------------------
End of Period $1,525 $2,471 $31,701 $5,443 $772 $797
=========================================================================================
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-13
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Statement of Changes in Net Assets
For the Period From February 19 (commencement of operations) to December 31,
1999
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
T. Rowe Price T. Rowe Price T. Rowe Price
Equity MidCap Personal Newport
Income Growth Strategy Tiger
<S> <C> <C> <C> <C>
Increase in Net Assets:
Operations:
Net Investment Income $ 76 $ 23 $ 22 $(27)
Net Realized Gain (Loss) 16 10 1 65
--------------------------------------------------------------
Net Unrealized Gain (Loss) (89) 275 (10) -
Net Increase (Decrease) in Net Assets
Resulting from Operations 3 308 13 38
--------------------------------------------------------------
Capital Share Transactions:
Transfers of Annuity Fund Deposits 1,645 1,605 790 (38)
--------------------------------------------------------------
Net Increase in Net Assets from
Capital Share Transactions 1,645 1,605 790 (38)
--------------------------------------------------------------
Total Increase in Net Assets 1,648 1,913 803 -
--------------------------------------------------------------
Net Assets:
Beginning of Period - - -
--------------------------------------------------------------
End of Period $1,648 $1,913 $803 $ -
==============================================================
--------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements
SAF-14
<PAGE>
Operations
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Notes to Financial Statements
December 31, 1999
1. Organization
Sage Life Assurance of America Variable Account A (the "Account") is a separate
investment account of Sage Life Assurance of America, Inc. (the "Company"). The
Account is registered with the SEC under the Investment Company Act of 1940 as a
unit investment trust. The annuity products of the Company are distributed
through Sage Distributors, Inc., an affiliated broker/dealer. The Account
commenced operations February 19, 1999.
As of December 31, 1999, the Account consisted of thirty-three sub-accounts,
each of which invests only in a single corresponding portfolio offered by
various fund managers. The Account and each portfolio are administered and
accounted for as part of the business of the Company, but the investment income
and capital gains and losses of each portfolio are identified with the assets
held for that portfolio in accordance with the terms of the Contracts, without
regard to investment income and capital gains and losses arising out of any
other business the Company may conduct.
Substantially all of the funds in the Account at December 31, 1999 were held in
respect to contracts purchased by Directors and Officers of the Company and/or
their immediate family members.
2. Valuation of Investments
The market value of the investments in the sub-accounts is based on the net
asset values of the fund shares held at the end of the current period.
Transactions are accounted for on the trade date and dividend income is
recognized on an accrual basis. Realized gains and losses on sales of
investments are determined on a specific identification basis.
3. Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires that management make estimates
and assumptions that management make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
4. Income Taxes
The Company does not expect to incur any federal income tax liability on
earnings, or realized capital gains attributable to the Account, therefore, no
charges for federal income taxes are currently deducted from the Account. If
the Company incurs income taxes attributable to the Account, or determines that
such taxes will be incurred, it may make a charge for such taxes against the
Account.
5. Diversification Requirements
Section 817(h) of the Internal Revenue Code provides that a variable annuity
contract, in order to qualify as an annuity, must have an "adequately
diversified" segregated asset account (including investments in a mutual fund by
the segregated asset account of the insurance companies). If the
diversification requirements under the Internal Revenue Code are not met and the
annuity is not treated as an annuity, the taxpayer will be subject to income tax
on the annual gain in the contract. The Treasury Department's regulations
prescribe the diversification requirements for variable annuity contracts. The
Company believes the underlying mutual fund portfolios have complied with the
terms of these regulations.
6. Contract Charges
The following contract charges are paid to the Company for providing
administrative services to the Account:
Administration Charges - Charged $40 annually for the first seven contract
periods for all contract owners whose account value is less than $50,000.
Mortality and Expense Risk Charges - Charged daily against the Account at an
annual rate of 1.40% of the net assets.
SAF-15
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Notes to Financial Statements
December 31, 1999
7. Changes in Units Outstanding
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Sage AIM AIM AIM Alger
Advisors Government Growth & International AIM Income &
Money Mkt. Securities Income Equity Value Growth
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Period - - - - - -
Units purchased 27,451 105 46 195 - -
Units transferred between Sub-Accounts (2,794) 65 23 432 115 115
Units sold (24,178) - - (2) - -
--------------------------------------------------------------------
Units Outstanding End of Period 479 170 69 625 115 115
====================================================================
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Alger Colonial Colonial Colonial Colonial
Mid-Cap Alger US Growth Growth & Small Cap Strategic
Growth Small Cap & Income Income Value Income
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Period - - - - - -
Units purchased 82 45 104 47 81 168
Units transferred between Sub-Accounts 63 21 95 28 80 94
Units sold - - (1) - - (1)
--------------------------------------------------------------------
Units Outstanding End of Period 144 66 198 75 161 261
====================================================================
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Liberty Stein Roe MFS MFS MFS
All-Star Global Total Growth & High MFS
Equity Utilities Return Income Income Research
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Period - - - - - -
Units purchased 104 46 46 126 42 46
Units transferred between Sub-Accounts 83 23 29 115 12 25
Units sold (1) - - (1) - -
--------------------------------------------------------------------
Units Outstanding End of Period 186 69 75 240 54 70
====================================================================
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Morgan Morgan
MFS Morgan Stanley Stanley Oppenheimer
Capital Stanley MidCap Global Oppenheimer Capital
Opportunities Value Balue Equity Bond Appreciation
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Period - - - - - -
Units purchased 45 46 81 - 210 -
Units transferred between Sub-Accounts 24 29 69 116 131 111
Units sold - - - - (1) -
----------------------------------------------------------------------
Units Outstanding End of Period 69 75 150 116 340 111
======================================================================
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SAF-16
<PAGE>
Sage Life Assurance of America, Inc.
The Sage Variable Annuity Account A
Notes to Financial Statements
December 31, 1999
7. Changes in Units Outstanding (continued)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
State Street State Street Stein Roe T. Rowe Price
Oppenheimer S&P 500 EAFE Growth Stein Roe Equity
Small Cap Index Index Stock Balanced Income
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Period - - - - - -
Units purchased 79 2,350 263 46 45 83
Units transferred between Sub-Accounts 77 354 168 23 27 77
Units sold - (12) (1) - - -
--------------------------------------------------------------------------------
Units Outstanding End of Period 155 2,692 430 69 65 159
================================================================================
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
T. Rowe Price T. Rowe Price
MidCap Personal Newport
Growth Strategy Tiger
-----------------------------------------------------
<S> <C> <C> <C>
Units Outstanding Beginning of Period - - -
Units purchased 81 51 24
Units transferred between Sub-Accounts 71 28 -
Units sold - (1) (24)
-----------------------------------------------------
Units Outstanding End of Period 152 78 -
=====================================================
-----------------------------------------------------------------------------------------------------
</TABLE>
SAF-17
<PAGE>
Part C
Other Information
Item 24. Financial Statements and Exhibits
(a) Financial Statements
All required financial statements are included in Part A. Financial
statements for The Sage Variable Annuity Account A (the "Variable Account") are
included in Part B.
(b) Exhibits
(1)(a) Resolutions of the Board of Directors of Sage Life Assurance
of America, Inc. establishing The Sage Variable Annuity
Account A./1/
(2) Not Applicable.
(3) Form of Distribution Agreement with Sage Distributors, Inc.
and Form of Selling Agreement./2/
(4)(a)(i)(B) Amended Form of Individual Contract./3/
(i)(C) Second Amended Form of Individual Contract./15/
(ii)(B) Amended Form of Individual Contract with Interest Account./4/
(ii)(C) Second Amended Form of Individual Contract with Interest
Account./15/
(iii)(B) Amended Form of Group Contract./3/
(iii)(C) Second Amended Form of Group Contract./15/
(iv)(B) Amended Form of Group Certificate./3/
(iv)(C) Second Amended Form of Group Certificate./15/
(b)(i)(B) Amended Form of Individual IRA Rider./3/
(ii)(B) Amended Form of Group IRA Rider./3/
(iii)(B) Amended Form of Individual SIMPLE IRA Rider./3/
(iv)(B) Amended Form of Group SIMPLE IRA Rider./3/
(v)(A) Form of Individual Roth IRA Rider./5/
(vi)(A) Form of Group Roth IRA Rider./5/
PC-1
<PAGE>
(vii) Form of Individual Waiver of Surrender Charge Rider./5/
(viii) Form of Group Waiver of Surrender Charge Rider./5/
(ix)(A) Form of Individual Accidental Death Benefit Rider./5/
(ix)(B) Amended Form of Individual Accidental Death Benefit
Rider./15/
(x)(A) Form of Group Accidental Death Benefit Rider./5/
(x)(B) Amended Form of Group Accidental Death Benefit
Rider./15/
(xi)(A) Form of Individual Enhanced Death Benefit Rider.*
(xi)(B) Form of Group Enhanced Death Benefit Rider.*
(xii)(A) Form of Individual Guaranteed Minimum Income Benefit Rider.*
(xii)(B) Form of Group Guaranteed Minimum Income Benefit Rider*
(5) (i) Form of Individual Contract Application./6/
(ii) Form of Group Certificate Application./7/
(6)(a) Articles of Incorporation of the Company./8/
(b) By-Laws of the Company./8/
(7) Not Applicable.
(8)(a)(i) Form of Participation Agreement with AIM Variable Insurance
Funds./9/
(ii) Form of Participation Agreement with The Alger American
Fund./9/
(iii) Form of Participation Agreement with Liberty Variable
Investment Trust./10/
(iv) Form of Participation Agreement with MFS(R) Variable
Insurance Trust(SM)./9/
(v) Form of Participation Agreement with Morgan Stanley The
Universal Institutional Funds, Inc./10/
(vi) Form of Participation Agreement with Oppenheimer Variable
Account Funds./10/
(vii) Form of Participation Agreement with Sage Life Investment
Trust./9/
(viii) Form of Participation Agreement with SteinRoe Variable
Investment Trust./10/
(ix) Form of Participation Agreement with T. Rowe Price Equity
Series, Inc./10/
(b) Form of Services Agreement with Financial Administration
Services, Inc./10/
(9) (i) Opinion and Consent of James F. Bronsdon.**
(ii) Consent of Sutherland Asbill & Brennan.**
(10) Consent of Ernst & Young LLP.**
PC-2
<PAGE>
(11) Not Applicable.
(12) Not Applicable.
(13) Not Applicable.
(14)(a) Power of Attorney for Paul C. Meyer./11/
(14)(b) Power of Attorney for Ronald S. Scowby./12/
(14)(c) Power of Attorney for Richard D. Starr./12/
(14)(d) Power of Attorney for H. Louis Shill./13/
(14)(e) Power of Attorney for Mitchell R. Katcher./13/
(14)(f) Power of Attorney for Robin I. Marsden./14/
(14)(g) Power of Attorney for Paul C. Meyer, Ronald S. Scowby, Richard D.
Starr, H. Louis Shill and Meyer Feldberg./16/
* Filed herewith.
**To be filed.
_______________________
/1/ This exhibit was previously filed in Exhibit 1 to the Registration Statement
on Form N-4 dated December 24, 1997 (File No. 333-43329) and is incorporated
herein by reference.
/2/ This exhibit was previously filed in Exhibit No. 3 to Pre-Effective
Amendment No. 1 to the Registration Statement on Form N-4 (File No. 333-43329)
dated December 31, 1998, and is incorporated herein by reference.
/3/ This exhibit was previously filed in Exhibit No. 4 to Pre-Effective
Amendment No. 1 to the Registration Statement on Form N-4 (File No. 333-43329)
dated December 31, 1998, and is incorporated herein by reference.
/4/ This exhibit was previously filed in Exhibit No. 4 to Pre-Effective
Amendment No. 1 to the Registration Statement on Form N-4 (File No. 333-43329)
dated January 28, 1999, and is incorporated herein by reference.
/5/ This exhibit was previously filed in Exhibit No. 4 to the Registration
Statement on Form N-4 (File No. 333-43329) dated December 24, 1997, and is
incorporated herein by reference.
/6/ This exhibit was previously filed in Exhibit No. 5 to Pre-Effective
Amendment No. 1 to the Registration Statement filed on Form N-4 (File No. 333-
43329) dated December 31, 1998, and is incorporated herein by reference.
/7/ This exhibit was previously filed in Exhibit No. 5 to the Registration
Statement filed on Form N-4 (File No. 333-43329) dated December 24, 1997, and is
incorporated herein by reference.
/8/ This exhibit was previously filed in Exhibit No. 6 to the Registration
Statement filed on Form N-4 (File No. 333-43329) dated December 24, 1997, and is
incorporated herein by reference.
PC-3
<PAGE>
/9/ This exhibit was previously filed in Exhibit No. 8 to Pre-Effective
Amendment No. 1 to the Registration Statement filed on Form N-4 (File No. 333-
43329) dated December 31, 1998, and is incorporated herein by reference.
/10/ This exhibit was previously filed in Exhibit No. 8 to Pre-Effective
Amendment No. 2 to the Registration Statement on Form N-4 (File No. 333-43329)
dated January 28, 1999, and is incorporated herein by reference.
/11/ This exhibit was previously filed in Exhibit No. 14(a) to Pre-Effective
Amendment No. 1 to the Registration Statement filed on Form N-4 (File No. 333-
44751) dated January 12, 1999, and is incorporated herein by reference.
/12/ This exhibit was previously filed in Exhibit No. 14 to Pre-Effective
Amendment No. 2 to the Registration Statement on Form N-4 (File No. 333-43329)
dated January 28, 1999, and is incorporated herein by reference.
/13/ This exhibit was previously filed in Exhibit No. 14 to Pre-Effective
Amendment No. 2 to the Registration Statement on Form N-4 (File No. 333-44751)
dated February 10, 1999, and is incorporated herein by reference.
/14/ This exhibit was previously filed in Exhibit No. 14 to Post-Effective
Amendment No. 1 to the Registration Statement on Form N-4 (File No. 333-43329)
dated February 26, 1999, and is incorporated herein by reference.
/15/ This exhibit was previously filed in Exhibit No. 4 to Post-Effective
Amendment No. 3 to the Registration Statement on Form N-4 (File No. 333-43329)
dated February 29, 2000.
/16/ This exhibit was previously filed in Exhibit No. 14 to Post-Effective
Amendment No. 3 to the Registration Statement on Form N-4 (File No. 333-43329)
dated February 29, 2000.
Item 25. Directors and Officers of the Depositor
Incorporated herein by reference to the section titled "Directors and
Executive Officers" of the Prospectus filed as Part A of this Registration
Statement.
Item 26. Persons Controlled by or under Common Control with the Depositor or
Registrant
The registrant is a segregated asset account of the Company and therefore
is owned and controlled by the Company. The Company is a stock life insurance
company of which all the voting securities are owned by Sage Life Holdings of
America, Inc., a Delaware corporation, ("Sage Life Holdings"), all of the voting
securities of which are owned by Sage Insurance Group Inc., a Delaware
corporation. (The Company in turn owns all of the voting securities of Sage
Life Assurance Company of New York, a New York domiciled company which is
pursuing a license to conduct insurance business in that state.) In addition to
Sage Life Holdings, Sage Insurance Group also owns all of the voting securities
of Sage Distributors, Inc. (a broker-dealer), Sage Advisors, Inc. (a registered
investment adviser), and Finplan Holdings, Inc. (a financing company), all of
which are Delaware corporations, and Sage Re (Bermuda) Ltd. (an insurer), a
Bermudian corporation. All the voting securities of Sage Insurance Group Inc.
are owned by Sage Insurance
PC-4
<PAGE>
Holdings, Inc, a Delaware corporation. Sage Insurance Holdings, Inc. is a wholly
owned subsidiary of Sage Holdings (USA), Inc., a Delaware corporation. (Sage
Holdings (USA), Inc. also owns all of the voting securities of Sage Properties
(USA), Inc., a Virginia corporation whose principal assets are real estate.)
Sage Holdings (USA), Inc. is a wholly owned subsidiary of Sage Life Holdings
Limited, a South African corporation. The nature of the business of the
companies listed above is insurance and financial services. Sage Life Holdings
is 100% owned by Sage Group Limited, a South African corporation that is the
ultimate holding company. Sage Group Limited is a controlling company operating
in life insurance, mutual funds and investment management. Various companies and
other entities controlled by Sage Group Limited may be considered to be under
common control with the registrant or the Company. Such other companies and
entities and the nature of their businesses are set forth below. These companies
are incorporated in South Africa and are wholly owned subsidiaries unless
otherwise noted.
Sage Life Holdings was formed pursuant to a letter of intent between Sage
Group Limited and Swiss Re Life and Health America, Inc. ("Swiss Re"). Swiss
Re's ultimate parent company is Swiss Reinsurance Company, Switzerland, one of
the world's largest life and health reinsurance groups. Under the letter of
intent, Swiss Re made an equity investment into Sage Life Holdings. The
arrangements contemplated by the letter of intent may be subject to regulatory
approval.
<TABLE>
<CAPTION>
Direct and Indirect Subsidiaries of Sage Group Limited
-----------------------------------------------------
<S> <C>
COMPANY NAME PRINCIPAL BUSINESS
Bentley Office Park (Pty) Ltd Property development & investment
Blackreef Properties (Pty) Ltd Property holding
Consumer Classics (Pty) Ltd Manufacturing & distribution
Edenston Properties (Pty) Ltd Property development
Educational Information Services (Pty) Ltd Publishing
Ensiklopedie Afrikana (Edms) Beperk Publishing
Estromin Properties & Investments (Pty) Ltd Property investment
Everest Construction (Pty) Ltd Construction
FPS (South Vaal) Investments (Pty) Ltd Property investment
FPS (Vaal) Investments (Pty) Ltd Investment holding
FPS Investment Holdings Ltd Investment holding
FPS Investments (Pty) Ltd Investment holding
FPS Ltd Investment consultants
Fraser Street Registrars (Pty) Ltd Transfer secretaries
Hatfield Primary Square (Pty) Ltd. Property investment
Hatfield Properties (Block A) (Pty) Ltd Property investment
Hatfield Properties (Block B) (Pty) Ltd Property investment
Hatfield Properties (Block C) (Pty) Ltd Property investment
Hatfield Properties (Block D) (Pty) Ltd Property investment
Highrise Home Investments (Pty) Ltd Property investment
Home Mortgage Investments (Pty) Ltd (50% owner) Financing
J van Streepen (Kempton Park) (Pty) Ltd (51% owner) Property development
Kemparkto (Pty) Ltd Property investment & development
Lakeview Management Properties (Pty) Ltd (75% owner) Property management
Marlands Flats (Pty) Ltd Property holding
Meumann & Heyneke (Pty) Ltd Retail merchants
Nedrep Investments Ltd Investment holding
</TABLE>
PC-5
<PAGE>
<TABLE>
<S> <C>
New Smal Construction Co. (Pty) Ltd Construction
Palmiet Townships (Pty) Ltd Property development
R/E 105 Rosebank (Pty) Ltd Investment holding
Residential Mortgage Investments (Pty) Ltd Financing
S A Cultural Holdings (Pty) Ltd Investment
S A Kultuur Beleggings (Edms) Beperk Investment
S.B. Plant Hire (Pty) Ltd Plant hire
SACI Finance (Pty) Ltd Finance company
Sage Structured Options (Eight) (Pty) Ltd Investment holding
Sage Structured Options (Five) (Pty) Ltd Investment holding
Sage Structured Options (Four) (Pty) Ltd Investment holding
Sage Structured Options (Nine) (Pty) Ltd Investment holding
Sage Structured Options (One) (Pty) Ltd Investment holding
Sage Structured Options (Seven) (Pty) Ltd Investment holding
Sage Structured Options (Six) (Pty) Ltd Investment holding
Sage Structured Options (Three) (Pty) Ltd Investment holding
Sage Structured Options (Two) (Pty) Ltd Investment holding
Sage Centre (Pty) Ltd Investment holding
Sage Corporate Services (Pty) Ltd Investment holding
Sage Family Benefits (Pty) Ltd Insurance consultants
Sage Holdings Ltd Financial, investment & management
Sage Investment Trust Ltd Insurance & investment
Sage Land Finance (Pty) Ltd Financiers
Sage Land Holdings (Pty) Ltd Investment holding
Sage Library Gardens Ltd Investment holding
Sage Life Holdings Ltd Investment holding
Sage Life Ltd Life insurance
Sage Management Services (Pty) Ltd Management
Sage Parking (Pty) Ltd Own & operate parking garages
Sage Personal Investment Marketing (Pty) Ltd Investment consultants
Sage Properties (549 Sandown) (Pty) Ltd Property holding
Sage Properties (Menlyn) (Pty) Ltd Property investment
Sage Properties (Rivonia Four) (Pty) Ltd Property holding
Sage Properties (Sunnyside) (Pty) Ltd Property holding
Sage Properties Ltd Investment holding
Sage Property Holdings Ltd Property holding
Sage Property Management Services (Pty) Ltd Property management
Sage Property Trust Managers, Ltd. (77.2% owner) Management of unit trusts
Sage Schachat Developments (Pty) Ltd Builders
Sage Schachat Ltd Investment holding
Sage Selections (Pty) Ltd Investment
Sage Specialized Insurances Ltd Short term insurance
Sage Strategic Investments (Pty) Ltd Investment holding
Sage Trustees (Pty) Ltd Trustees
Sage Unit Trusts Ltd Management of unit trusts
Sagemed (Pty) Ltd Health & medical insurance
SAK Holdings (Pty) Ltd Investment holding
Sandhurst Properties (Block A) (Pty) Ltd Property investment & management
Sandhurst Properties (Block C) (Pty) Ltd Property investment & management
</TABLE>
PC-6
<PAGE>
<TABLE>
<S> <C>
Sandhurst Properties (Block D) (Pty) Ltd Property investment & management
Sandhurst Properties (Block E) (Pty) Ltd Property investment & management
Sandhurst Properties (Block F) (Pty) Ltd Property investment & management
Sandhurst Properties (Block G) (Pty) Ltd Property investment & management
Sandown Development Holdings (Pty) Ltd Property holding
Sandown Developments (Pty) Ltd Property development
Schachat Ciskei (Pty) Ltd Property development
Schachat Construction (Pty) Ltd Construction
Schachat Cullum (Pty) Ltd Property development & management
Schachat Finance Company (Pty) Ltd Financiers
Schachat Land Resources (Pty) Ltd Investment holding
Schachat Natal (Pty) Ltd Farming & other
Schalab Townships (Pty) Ltd (51% owner) Property development
Sectional Title (Pty) Ltd Property development
SLR Land Development (Pty) Ltd Building contractors
SMH Land Development (Pty) Ltd Property investment
SPTM Holdings (Pty) Ltd Investment holding
SSI Securities (Pty) Ltd Financiers
Stonehouse Investments (Pty) Ltd Property investment
Sunnyside Erf 26 (Block D) (Pty) Ltd Property investment & management
Table Classics (Pty) Ltd Deal in tableware products
The Gold Jewelry Corporation (Pty) Ltd Manufacture & sale of coins & jewelry
Townhomes (Pty) Ltd Building contractors
Von Brandis Square Development Co. (Pty) Ltd Property development
Wereldspekium (Edms) Beperk Distributors & publishers of books
Witch Construction Company (Pty) Ltd Property investment & development
Witch Construction Company (Transvaal) (Pty) Ltd Property investment & development
Sage International B.V. (Netherlands corporation) Holding
Sage International Assets Ltd (BVI corporation) Holding
Sage Management Services (USA), Inc.
(New York corporation) Management services
</TABLE>
Item 27. Number of Contract Owners
As of April 18, 2000, the Registrant had 13 Contract Owners.
Item 28. Indemnification
Sage Life's Articles of Incorporation provide that a director of the
Company shall not be personally liable to the Company or its stockholders for
monetary damages for breach of fiduciary duty as a director, except that (i) for
any breach of the director's duty of loyalty to the Company or its stockholders,
(ii) for acts or omissions not in good faith or which would involve intentional
misconduct or a knowing violation of law, (iii) under Section 174 of the
Delaware General Corporation Law, or (iv) for any transaction from which the
director derived any personal benefit. Notwithstanding the foregoing, the
Articles provide that if the Delaware General Corporation Law is amended to
authorize further limitations of the liability of a director or a corporation,
then a director of the Company, in addition to circumstances in which a director
is not personally liable as set forth in the preceding sentence, shall be held
free from liability to the fullest extent permitted by the Delaware General
Corporation Law as amended.
PC-7
<PAGE>
Sage Life's Bylaws provide that the Company shall indemnify its officers,
directors, employees and agents to the extent permitted by the General
Corporation Law of Delaware.
Further, Section 145 of Delaware General Corporation Law provides that a
corporation shall have power to indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit, or proceeding, whether civil, criminal, administrative or investigative
(other than an action by or in the right of the corporation) by reason of the
fact that he is or was a director, officer, employee or agent of the
corporation, or is or was serving at the request of the corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust, or other enterprise, against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by him in connection with such action, suit, or proceeding if he acted
in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the corporation, and, with respect to any criminal action
or proceeding, had no reasonable cause to believe his conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction, or upon a plea of nolo contendere or its equivalent, shall not, of
itself, create a presumption that the person did not act in good faith and in a
manner which he reasonably believed to be in or not opposed to the best
interests of the corporation, and, with respect to any criminal action or
proceeding, had a reasonable cause to believe that his conduct was not unlawful.
Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
Item 29. Principal Underwriter
(a) Sage Distributors, Inc. ("Sage Distributors") is the registrant's
principal underwriter.
(b) Officers and Directors of Sage Distributors
The principal business address of all of the persons listed below is 300
Atlantic Street, Stamford, CT 06901.
<TABLE>
<CAPTION>
Name and Principal Business Address Positions and Offices With Sage Distributors
----------------------------------- --------------------------------------------
<S> <C>
Robin I. Marsden Director
Mitchell R. Katcher Director
</TABLE>
PC-8
<PAGE>
<TABLE>
<S> <C>
James F. Bronsdon President, Chief Executive Officer, Chief Legal Officer
James F. Renz Chief Financial Officer, Treasurer, Assistant Secretary
Lincoln B. Yersin Senior Vice-President, National Sales Manager
</TABLE>
Item 30. Location of Books and Records
All of the accounts, books, records or other documents required to be kept
by Section 31(a) of the Investment Company Act of 1940 and rules thereunder, are
maintained at our Customer Service Center.
Item 31. Management Services
All management contracts are discussed in Part A or Part B of this
registration statement.
Item 32. Undertakings and Representations
(a) The registrant undertakes that it will file a post-effective
amendment to this registration statement as frequently as is
necessary to ensure that the audited financial statements in the
statement are never more than 16 months old for as long as
purchase payments under the Contracts offered herein are being
accepted.
(b) The registrant undertakes that it will include either (1) as part
of any application to purchase a Contract offered by the
prospectus, a space that an applicant can check to request a
Statement of Additional Information, or (2) a post card or
similar written communication affixed to or included in the
prospectus that the applicant can remove and send to the Company
for a Statement of Additional Information.
Additional Information.
(c) The registrant undertakes to deliver any Statement of Additional
Information and any financial statements required to be made
available under this Form N-4 promptly upon written or oral
request to the Company at the address or phone number listed in
the prospectus.
(d) The Company represents that the fees and charges under the
Contracts, in the aggregate, are reasonable in relation to the
services rendered, the expenses expected to be incurred, and the
risks assumed by the Company.
PC-9
<PAGE>
Signatures
As required by the Securities Act of 1933, and the Investment Company Act
of 1940, the registrant has caused this Registration Statement to be signed on
its behalf, in the City of Stamford, in the State of Connecticut, on this 23rd
day of June 2000.
The Sage Variable Annuity Account A
(Registrant)
By: Sage Life Assurance of America, Inc.
Attest:
/s/ James F. Bronsdon By: /s/ Robin I. Marsden
--------------------------- --------------------------------------
James F. Bronsdon Robin I. Marsden
Director, President, Chief Executive
Officer
By: Sage Life Assurance of America, Inc.
(Depositor)
Attest:
/s/ James F. Bronsdon By: /s/ Robin I. Marsden
--------------------- ---------------------------------------
James F. Bronsdon Robin I. Marsden
Director, President, Chief Executive
Officer
<PAGE>
As required by the Securities Act of 1933, this Post-Effective Amendment to
the Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
Signature Title Date
--------- ---------------- ----
/s/ Ronald S. Scowby* Chairman June 23, 2000
----------------------
Ronald S. Scowby
/s/ H. Louis Shill* Director June 23, 2000
-----------------------
H. Louis Shill
/s/ Paul C. Meyer* Director June 23, 2000
----------------------
Paul C. Meyer
/s/ Richard D. Starr* Director June 23, 2000
-----------------------
Richard D. Starr
/s/ Mitchell R. Katcher Director, June 23, 2000
------------------------ Senior Executive Vice
Mitchell R. Katcher President, Chief Financial
Officer, Chief Actuary
/s/ Meyer Feldberg* Director June 23, 2000
-------------------
Meyer Feldberg
/s/ John A. Benning Director June 23, 2000
-------------------
John A. Benning
*By: /s/ Mitchell R. Katcher
------------------------
Mitchell R. Katcher
As Attorney-In-Fact pursuant to a Power of Attorney dated below.
Director Date
-------- -----
Meyer Feldberg February 28, 2000
Ronald S. Scowby February 24, 2000
H. Louis Shill February 25, 2000
Paul C. Meyer February 23, 2000
Richard D. Starr February 25, 2000
<PAGE>
EXHIBIT INDEX
4(xi)(A) Form of Individual Enhanced Death Benefit Rider
4(xi)(B) Form of Group Enhanced Death Benefit Rider
4(xii)(A) Form of Individual Guaranteed Minimum Benefit Rider
4(xii)(B) Form of Group Individual Guaranteed Minimum Benefit Rider
