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August 1998
Dear VariFund(TM) Policyowner:
Enclosed for your review are the Semi-Annual Reports for the Canada Life of
America Series Fund, the Fidelity Investment Variable Insurance Products Fund,
the Fidelity Investments Variable Insurance Products II, the Fidelity
Investments Variable Insurance Products Fund III, the Seligman Portfolios Inc.,
the Dreyfus Variable Investment Fund, the Montgomery Variable Funds III , the
Berger/BIAM Fund and the Alger American Fund for the period ending June 30,
1998. We encourage you to review this information and refer to it as needed
throughout the year.
Also, we are pleased to provide you with enclosed supplements, dated July 27,
1998, to the Canada Life of America Series Fund, Inc. prospectus contained
within the prospectus for your VariFund variable annuity. This supplement
provides information pertaining to CL Capital Management, Inc., the Investment
Adviser for the Canada Life of America Series Fund Inc.
We are also enclosing a supplement dated July 27, 1998, to your Canada Life of
America Variable Annuity Account 1 prospectus. This supplement provides
information pertaining to a change in portfolio manager for the Dreyfus Socially
Responsible Growth Fund Inc.
For your convenience, the tear-off form below is provided to allow you to add
additional payments to your VariFund policy. A postage paid envelope is also
enclosed.
Sincerely,
Ronald E. Beettam, President
Canada Life Insurance Company of America
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Policyowner(s):__________________________________Policy Number__________________
If you are changing allocation, please complete the following
______ This payment only
______ This payment and all future payments
______ Re-allocate all current assets
___% Money Market ___% Fidelity VIP Overseas
___% Managed ___% Fidelity VIP II Asset Manager
___% Bond ___% Fidelity Index 500
___% Value Equity ___% Fidelity Contrafund
___% Capital ___% Fidelity Growth Opportunities
___% International Equity ___% Dreyfus Growth & Income
___% Berger/BIAM IPT International ___% Dreyfus Socially Responsible
___% Berger Small Company Growth ___% Dreyfus Capital Appreciation
___% Seligman Frontier ___% Alger Small Cap
___% Seligman Communication & Information ___% Alger Growth
___% Fidelity VIP Growth ___% Alger MidCap
___% Fidelity VIP High Income ___% Alger Leveraged AllCap
___% Fixed Account ___% Montgomery Emerging Markets
(Specify 1, 3, 5, 7 or 10 Years*) ___% Montgomery Growth
*3, 5, 7 and 10 Years are subject to state approvals
Total must equal 100%. Please make checks payable to Canada Life Insurance
Company of America.
____________________ _______________________________________
Date Policyowner Signature
Variable annuity policies issued by Canada Life Insurance Company of America
Offered by Canada Life of America Financial Services, Inc., Member, NASD
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The attached are incorporated by reference herein to the semi-annual reports
filed by and on behalf of the following:
The Alger American Fund, filed August 18, 1998
Portfolios which include: Alger American Small Capitalization; Alger
American Growth; Alger American MidCap Growth; and Alger American Leveraged
AllCap
Berger Institutional Products Trust, filed August 26, 1998
Portfolios which include: Berger/BIAM IPT-International Fund
Canada Life of America Series Fund, Inc., filed August 26, 1998
Portfolios which include: Money Market; Managed; Bond; Value Equity,
International Equity; and Capital
Dreyfus Variable Investment Fund, filed August 25, 1998
Portfolios which include: Dreyfus Growth and Income
The Dreyfus Socially Responsible Growth Fund, Inc., filed August 25, 1998
Portfolios which include: Dreyfus Socially Responsible
Fidelity Investments Variable Insurance Products Fund, filed August 20, 1998
Portfolios which include: Fidelity VIP Growth
Fidelity Investments Variable Insurance Products Fund, filed August 21, 1998
Portfolios which include: Fidelity VIP High Income
Fidelity Investments Variable Insurance Products Fund, filed August 21, 1998
Portfolios which include: Fidelity VIP Overseas
Fidelity Investments Variable Insurance Products Fund II, filed August 21, 1998
Portfolios which include: Fidelity VIP II Asset Manager
Fidelity Investments Variable Insurance Products Fund II, filed August 20, 1998
Portfolios which include: Fidelity VIP II Index 500
Seligman Portfolios, Inc., filed August 28, 1998
Portfolios which include: Communications and Information; and Frontier
The Montgomery Funds III, filed August 26, 1998
Portfolios which include: Montgomery Variable Series Emerging Markets Fund;
and Montgomery Variable Series Growth Fund
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<CAPTION>
V A R I F U N D (TM) A N N U I T Y
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VARIABLE SUB-ACCOUNT PERFORMANCE Average Annual Total Returns For Periods Ending June 30, 1998
Assuming Contract Continues
PORTFOLIO TYPE PORTFOLIO ONE THREE FIVE TEN SINCE INCEPTION
YTD YEAR YEAR YEAR YEAR INCEPTION DATE
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Equity Portfolios Alger American Growth 26.11% 35.41% 23.60% 22.08% N/A 19.61% 01/08/89
Alger American Leveraged AllCap 24.71% 31.21% 24.89% N/A N/A 34.94% 01/25/95
Alger American MidCap Growth 19.63% 27.55% 19.01% N/A N/A 22.40% 05/03/93
Alger American Small Capitalization 12.49% 23.58% 11.25% 14.29% N/A 17.98% 09/20/88
Berger Small Company Growth 12.04% 29.24% N/A N/A N/A 31.87% 05/01/96
CLASF Capital 15.00% 24.66% 19.56% 16.03% N/A 15.54% 04/23/93
CLASF Value Equity 5.45% 21.48% 15.29% 12.22% N/A 10.75% 12/04/89
Dreyfus Capital Appreciation 19.83% 26.11% 28.43% N/A N/A 20.31% 03/31/93
Dreyfus Growth & Income 5.71% 11.63% 19.53% N/A N/A 20.61% 05/02/94
Dreyfus Socially Responsible 17.52% 28.79% 26.33% N/A N/A 21.61% 10/07/93
Fidelity VIP II Contrafund 15.64% 27.66% 23.38% N/A N/A 27.42% 01/03/95
Fidelity VIP Growth 18.26% 27.33% 20.87% 17.83% 15.86% 14.91% 10/09/86
Montgomery Growth 7.69% 18.08% N/A N/A N/A 25.71% 02/09/96
Fidelity VIP II Index 500 16.57% 27.73% 27.93% 20.92% N/A 19.58% 08/27/92
Fidelity VIP III Growth Opportunities 10.36% 23.31% 22.50% N/A N/A 24.56% 01/03/95
Seligman Frontier 7.63% 13.11% 19.83% N/A N/A 21.75% 10/11/94
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International Berger-IPT International 15.29% 10.20% N/A N/A N/A 10.11% 05/01/97
CLASF International Equity 12.31% (1.12)% 12.01% N/A N/A 11.69% 04/24/95
Fidelity VIP Overseas 15.11% 9.46% 13.37% 11.82% 9.46% 7.66% 01/28/87
Montgomery Emerging Markets (26.57)% (40.10)% N/A N/A N/A (10.89)% 02/02/96
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Specialty Portfolio Seligman Communications & Information 12.31% 26.44% 12.31% N/A N/A 21.31% 10/11/94
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Balanced CLASF Managed 3.56% 14.00% 10.71% 8.90% N/A 8.79% 12/04/89
Fidelity VIP II Asset Manager 8.49% 16.83% 16.79% 11.39% N/A 11.47% 09/06/89
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Fixed Income Portfolios CLASF Bond 2.44% 7.18% 5.87% 4.67% N/A 6.20% 12/04/89
Fidelity VIP High Income 4.03% 12.81% 13.15% 10.78% 10.80% 10.73% 09/19/85
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Money Market CLASF Money Market 1.67% 3.48% 3.27% 2.82% N/A 2.97% 12/04/89
CLASF Money Market Portfolio current yield (annualized yield for a seven day period ended June 30, 1998) is 5.51%. VariFund Fixed
Account MVA 1 year rate was 4.50% as of July 1, 1998. The performance data quoted is after the deduction of all fees and charges,
except for possible surrender charges. For performance figures after the deduction of all fees and charges, including the maximum
possible surrender charge, please see the reverse side. Performance data represents past performance and is not a guarantee of
future results. Investment returns and principal value may fluctuate so that an investor's shares, when redeemed, may be more or
less than his or her original cost. Performance figures for portfolios with inception dates prior to December 4, 1989 reflect
performance if VariFund existed at the inception of those portfolios. Contact your registered representative or call Canada Life
Insurance Company of America at (800) 905-1959 for a Prospectus containing full details including information on fees and charges.
Please read the prospectus carefully before investing or sending money.
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<TABLE>
<CAPTION>
Variable Sub-Account Performance
--------------------------------
Average Annual Total Returns For Periods Ending June 30, 1998 * Assuming Contract Is Surrendered At End Of Period
PORTFOLIO TYPE PORTFOLIO ONE THREE FIVE TEN SINCE INCEPTION
YTD YEAR YEAR YEAR YEAR INCEPTION DATE
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Equity Portfolios Alger American Growth 20.71% 30.01% 22.61% 21.83% N/A 19.61% 01/08/89
Alger American Leveraged AllCap 19.31% 25.81% 23.92% N/A N/A 34.30% 01/25/95
Alger American MidCap Growth 14.23% 22.15% 17.94% N/A N/A 22.18% 05/03/93
Alger American Small Capitalization 7.09% 18.18% 10.02% 13.97% N/A 17.98% 09/20/88
Berger Small Company Growth 6.64% 23.84% N/A N/A N/A 27.37% 05/01/96
CLASF Capital 9.60% 19.26% 18.50% 15.73 N/A 15.25% 04/23/93
CLASF Value Equity 0.05% 16.08% 14.15% 11.87% N/A 10.75% 12/04/89
Dreyfus Capital Appreciation 14.43% 20.71% 27.51% N/A N/A 20.07% 03/31/93
Dreyfus Growth & Income 0.31% 6.23% 18.47% N/A N/A 20.13% 05/02/94
Dreyfus Socially Responsible 12.12% 23.29% 25.38% N/A N/A 21.24% 10/07/93
Fidelity VIP II Contrafund 10.24% 22.96% 22.39% N/A N/A 26.71% 01/03/95
Fidelity VIP Growth 12.86% 21.93% 19.83% 17.65% 15.86% 14.91% 10/09/86
Montgomery Growth 2.29% 12.68% N/A N/A N/A 24.33% 02/09/96
Fidelity VIP II Index 500 11.17% 22.33% 27.01% 20.67% N/A 19.39% 08/27/92
Fidelity VIP III Growth Opportunities 4.96% 17.91% 21.49% N/A N/A 23.81% 01/03/95
Seligman Frontier 2.23% 7.71% 18.77% N/A N/A 21.04% 10/11/94
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International Berger-IPT International 9.89% 4.92% N/A N/A N/A 5.53% 05/01/97
CLASF International Equity 6.91% (6.52)% 10.29% N/A N/A 10.57% 04/24/95
Fidelity VIP Overseas 9.71% 4.06% 12.19% 11.47% 9.46% 7.66% 01/28/87
Montgomery Emerging Markets (31.97)% (45.50)% N/A N/A N/A (13.12)% 02/02/96
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Specialty Portfolio Seligman Communications & Information 6.91% 21.04% 11.11% N/A N/A 20.59% 10/11/94
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Balanced CLASF Managed (1.84)% 8.60% 9.47% 8.52% N/A 8.79% 12/04/89
Fidelity VIP II Asset Manager 3.09% 11.43% 15.68% 11.03% N/A 11.38% 09/06/89
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Fixed Income Portfolios CLASF Bond (2.96)% 1.78% 4.52% 4.22% N/A 6.20% 12/04/89
Fidelity VIP High Income (1.37)% 7.41% 11.97% 10.42% 10.80% 10.73% 09/19/85
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Money Market CLASF Money Market (3.73)% (1.92)% 1.84% 2.33% N/A 2.97% 12/04/89
The above figures are SEC required "standardized" performance resources which include the deduction of all fees and charges,
including the maximum possible sales charge. These figures may not be applicable to your contract, since you may not have to pay
these early withdrawal charges. Please see the prospectus for more details. CLASF refers to Canada Life of America Series Fund, Inc.
Fidelity VIP and Fidelity VIP II refer to Fidelity Investments Variable Insurance Products Fund and Fidelity Variable Insurance
Products Fund II.
Annuities are not deposits of, obligations of, or guaranteed by any depository institution. They are not insured by FDIC or any
federal agency, and as such are subject to investment risk including possible loss of principal invested. The FIXED account portions
of a variable annuity (NOT the separate accounts) are backed by the issuing insurance company.
Issued By: Canada Life Company of America, 6201 Powers Ferry Road, N.W. Atlanta, GA 30339
Distributed By: Canada Life of America Financial Services, Inc. 6201 Powers Ferry Road, N.W., Atlanta, GA 30339 July, 1998
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