<PAGE>
[LOGO] CANADA LIFE
RONALD E. BEETTAM, F.S.A., F.C.I.A.
President
Canada Life Insurance Company
of America
P.O. Box 105662
Atlanta, GA 30348-5662
(770) 953-1959, x2861
(800) 905-1959
FAX: (888) 670-4836
August, 2000
Dear Varifund(R) Policyholder:
Enclosed is the Varifund Semi-Annual Report for the period ending June 30, 2000.
We encourage you to review this information and to refer to it as needed
throughout the year.
Please call your Registered Representative or Canada Life if you have any
questions.
Thank you for selecting Varifund for your financial needs.
Sincerely,
/s/ Ronald E. Beettam
---------------------------
Ronald E. Beettam
Encl.
6201 Powers Ferry Road, N.W. Atlanta, Georgia 30339
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<TABLE>
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[LOGO OF CANADA LIFE'S PRESTIGE SERIES]
V A R I F U N D(R)
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V A R I A B L E S U B - A C C O U N T P E R F O R M A N C E
A N N U I T Y
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Average Annual Total Returns For Periods Ending June 30, 2000
Assuming Contract is Surrendered At End Of Period
One Three Five
Portfolio Type Portfolio YTD Year Year Year
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Equity Portfolios Alger American Growth (2.65)% 12.20 % 27.62 % N/A
Alger American Leveraged AllCap (9.11)% 30.19 % 39.63 % N/A
Alger American MidCap Growth 8.42 % 26.55 % 25.60 % N/A
Alger American Small Capitalization (6.13)% 19.31 % 19.61 % N/A
Berger Small Company Growth 12.72 % 88.63 % N/A N/A
Dreyfus Capital Appreciation (3.34)% (0.37)% N/A N/A
Dreyfus Growth & Income (7.00)% (2.61)% 8.43 % N/A
Dreyfus Socially Responsible (3.58)% 11.19 % 21.19 % N/A
Fidelity VIP II Contrafund (7.42)% 3.24 % N/A N/A
Fidelity VIP Growth (1.04)% 19.05 % 27.01 % 23.55 %
Montgomery Growth (3.63)% (3.00)% 9.23 % N/A
Fidelity VIP II Index 500 (6.69)% (0.01)% 16.48 % N/A
Fidelity VIP III Growth Opportunities (9.74)% (12.41)% N/A N/A
Seligman Frontier (2.06)% 21.91 % 5.29 % 12.70 %
---------------------------------------------------------------------------------------------------
International Berger-IPT International (8.76)% 13.11 % 9.77 % N/A
Fidelity VIP Overseas (11.15)% 18.04 % 10.68 % 12.96 %
Montgomery Emerging Markets (11.79)% 11.30 % (10.42)% N/A
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Speciality Portfolio Seligman Communications & Information (1.32)% 53.36 % 41.67 % 26.29 %
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Balanced Fidelity VIP II Asset Manager (6.80)% (2.09)% 8.40 % 12.13 %
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Fixed Income Portfolios Fidelity Investment Grade Bond (1.78)% (2.99)% 1.93 % 3.65 %
Fidelity VIP High Income (10.93)% (11.45)% (0.51)% 5.33 %
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Money Market Fidelity Money Market (3.41)% (1.81)% 1.91 % 2.80 %
</TABLE>
<TABLE>
<CAPTION>
Since Sub-Account
Ten Sub-Acct Inception
Year Inception Date
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Equity Portfolios Alger American Growth N/A 25.25 % 05/01/96
Alger American Leveraged AllCap N/A 30.11 % 05/01/96
Alger American MidCap Growth N/A 19.81 % 05/01/96
Alger American Small Capitalization N/A 12.28 % 05/01/96
Berger Small Company Growth N/A 36.40 % 05/01/98
Dreyfus Capital Appreciation N/A 10.42 % 05/01/98
Dreyfus Growth & Income N/A 10.43 % 05/01/96
Dreyfus Socially Responsible N/A 22.41 % 05/01/96
Fidelity VIP II Contrafund N/A 14.23 % 05/01/98
Fidelity VIP Growth N/A 23.22 % 05/01/94
Montgomery Growth N/A 13.14 % 05/01/97
Fidelity VIP II Index 500 N/A 20.91 % 05/01/96
Fidelity VIP III Growth Opportunities N/A 3.67 % 05/01/98
Seligman Frontier N/A 13.13 % 05/01/95
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International Berger-IPT International N/A 9.78 % 05/01/97
Fidelity VIP Overseas N/A 10.62 % 05/01/94
Montgomery Emerging Markets N/A (2.41)% 05/01/96
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Speciality Portfolio Seligman Communications & Information N/A 29.87 % 05/01/95
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Balanced Fidelity VIP II Asset Manager N/A 10.36 % 05/01/94
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Fixed Income Portfolios Fidelity Investment Grade Bond 5.66 % 5.31 % 12/04/89
Fidelity VIP High Income N/A 6.24 % 05/01/94
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Money Market Fidelity Money Market 2.91 % 3.05 % 12/04/89
</TABLE>
The above figures are SEC required "standardized" performance returns 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 including the Money Market sub-account 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. Although the Money Market
Fund seeks to preserve the value of your investment at $1.00 per share, it is
still possible to lose money by investing in the fund. The FIXED account
portions of a variable annuity (NOT the separate accounts) are backed by the
issuing insurance company. As of May 1, 2000, the Fidelity VIP Money market and
Fidelity VIP II Investment Grade Bond sub-accounts were substituted for the
CLASF Money Market and Bond sub-accounts. Standardized performance reflects the
performance of the CLASF Money Market and Bond sub-accounts through April 28,
2000 and the Fidelity VIP Money Market and Fidelity VIP II Investment Grade Bond
sub-accounts thereafter.
Issued By: Canada Life of America, 6201 Powers Ferry Road, N.W. Atlanta, GA
30339 and distributed by its subsidiary Canada Life of America Financial
Services, Inc., 6201 Powers Ferry Road, N.W. Atlanta, GA 30339.
Date of first use June 30, 2000
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[CANADA LIFE'S PRESTIGE SERIES LOGO]
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V A R I F U N D
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V A R I A B L E S U B - A C C O U N T P E R F O R M A N C E
A N N U I T Y
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Average Annual Total Returns For Periods Ending June 30, 2000
Assuming Contract Continues
One
Portfolio Type Portfolio YTD Year
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Equity Portfolios Alger American Growth 2.75 % 17.60 %
Alger American Leveraged AllCap (3.71)% 35.59 %
Alger American MidCap Growth 13.82 % 31.95 %
Alger American Small Capitalization (0.73)% 24.71 %
Berger Small Company Growth 18.12 % 94.03 %
Dreyfus Capital Appreciation 2.06 % 5.03 %
Dreyfus Growth & Income (1.60)% 2.79 %
Dreyfus Socially Responsible 1.82 % 16.59 %
Fidelity VIP II Contrafund (2.02)% 8.64 %
Fidelity VIP Growth 4.36 % 24.45 %
Montgomery Growth 1.77 % 2.40 %
Fidelity VIP II Index 500 (1.29)% 5.39 %
Fidelity VIP III Growth Opportunities (4.34)% (7.01)%
Seligman Frontier 3.34 % 27.31 %
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International Berger-IPT International (3.36)% 18.51 %
Fidelity VIP Overseas (5.75)% 23.44 %
Montgomery Emerging Markets (6.39)% 16.70 %
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Speciality Portfolio Seligman Communications & Information 4.08 % 58.76 %
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Balanced Fidelity VIP II Asset Manager (1.40)% 3.31 %
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Fixed Income Portfolios Fidelity Investment Grade Bond 3.00 % 2.93 %
Fidelity VIP High Income (5.53)% (6.05)%
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Money Market Fidelity Money Market 2.24 % 4.22 %
</TABLE>
<TABLE>
<CAPTION>
Three Five Ten
Portfolio Type Portfolio Year Year Year
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<S> <C> <C> <C> <C>
Equity Portfolios Alger American Growth 28.53 % 24.26 % 20.38 %
Alger American Leveraged AllCap 40.40 % 32.68 % N/A
Alger American MidCap Growth 26.54 % 21.79 % N/A
Alger American Small Capitalization 20.64 % 14.38 % 14.78 %
Berger Small Company Growth 37.21 % N/A N/A
Dreyfus Capital Appreciation 14.84 % 20.55 % N/A
Dreyfus Growth & Income 9.69 % 15.10 % N/A
Dreyfus Socially Responsible 22.21 % 23.38 % N/A
Fidelity VIP II Contrafund 19.21 % 20.06 % N/A
Fidelity VIP Growth 27.93 % 23.78 % 18.38 %
Montgomery Growth 10.47 % N/A N/A
Fidelity VIP II Index 500 17.58 % 21.67 % N/A
Fidelity VIP III Growth Opportunities 10.46 % 14.99 % N/A
Seligman Frontier 6.63 % 13.04 % N/A
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International Berger-IPT International 11.00 % N/A N/A
Fidelity VIP Overseas 11.89 % 13.29 % 8.27 %
Montgomery Emerging Markets (8.59)% N/A N/A
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Speciality Portfolio Seligman Communications & Information 42.42 % 26.50 % N/A
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Balanced Fidelity VIP II Asset Manager 9.66 % 12.47 % 11.01 %
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Fixed Income Portfolios Fidelity Investment Grade Bond 4.32 % 4.45 % 5.71 %
Fidelity VIP High Income 0.99 % 5.76 % 10.40 %
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Money Market Fidelity Money Market 3.98 % 3.99 % 3.69 %
</TABLE>
<TABLE>
<CAPTION>
Since Fund
Fund Inception
Portfolio Type Portfolio Inception Date
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Equity Portfolios Alger American Growth 20.58 % 01/08/89
Alger American Leveraged AllCap 38.64 % 01/25/95
Alger American MidCap Growth 23.42 % 05/03/93
Alger American Small Capitalization 18.20 % 09/20/88
Berger Small Company Growth 26.20 % 05/01/96
Dreyfus Capital Appreciation 17.26 % 03/31/93
Dreyfus Growth & Income 16.63 % 05/02/94
Dreyfus Socially Responsible 20.85 % 10/07/93
Fidelity VIP II Contrafund 22.83 % 01/03/95
Fidelity VIP Growth 16.78 % 10/09/86
Montgomery Growth 16.74 % 02/09/96
Fidelity VIP II Index 500 17.83 % 08/27/92
Fidelity VIP III Growth Opportunities 16.87 % 01/03/95
Seligman Frontier 15.13 % 10/11/94
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International Berger-IPT International 10.93 % 05/01/97
Fidelity VIP Overseas 8.48 % 01/28/87
Montgomery Emerging Markets (0.76)% 02/02/96
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Speciality Portfolio Seligman Communications & Information 31.09 % 10/11/94
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Balanced Fidelity VIP II Asset Manager 10.50 % 09/06/89
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Fixed Income Portfolios Fidelity Investment Grade Bond 5.93 % 12/05/88
Fidelity VIP High Income 8.57 % 09/19/85
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Money Market Fidelity Money Market 5.18 % 04/01/82
</TABLE>
Fidelity Money Market Portfolio current yield (annualized yield for a seven day
period ended June 30, 2000) is 6.41%. VariFund Fixed Account 1 year rate was
4.95% as of July 1, 2000. The Money Market Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Fund seeks to preserve the value of your investment at $10.00 per
share, it is possible to lose money by investing in the Fund. 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.
(Not valid without accompanying "standardized" performance returns.)
Date of first use July 12, 2000
<PAGE>
VARIFUND(R) [LOGO] CANADA LIFE
A Variable Annuity INSURANCE COMPANY OF AMERICA
P.O. Box 105662
Atlanta, GA 30348-5662
(800) 905-1959
ADDITIONAL PREMIUM PAYMENT FORM
Please complete the following information:
OWNER: AMOUNT OF PREMIUM PAYMENT:
--------------------------------
ANNUITANT: $____________
----------------------------
POLICY NO.:
---------------------------
OWNER'S SSN/TIN: IF YOU ARE CHANGING ALLOCATION
---------------------- PLEASE COMPLETE THE FOLLOWING:
____ THIS PAYMENT ONLY
____ THIS PAYMENT AND ALL FUTURE PYMTS
____ RE-ALLOCATE ALL CURRENT ASSETS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ALGER GROWTH 83/93 ____% FIDELITY ASSET MGR 16/36 ____% MONTGOMERY EMERG MKT 86/96 ____ %
ALGER LEVER ALLCAP 85/95 ____% FIDELITY CONTRAFUND 52/72 ____% MONTGOMERY GROWTH 87/97 ____ %
ALGER MIDCAP 84/94 ____% FIDELITY GROWTH 17/37 ____% SELIGMAN COMM & INFO 50/70 ____ %
ALGER SMALL CAP 82/92 ____% FIDELITY GROWTH OPPS 53/73 ____% SELIGMAN FRONTIER 51/71 ____ %
BERGER IPT INTERN'L 88/98 ____% FIDELITY HIGH INC 18/38 ____%
BERGER/BIAM SM CO GR 89/99 ____% FIDELITY INDEX 500 20/40 ____%
DREYFUS CAP APPR 46/47 ____% FIDELITY INV GR BOND 55/75 ____%
DREYFUS GROWTH & INC 80/90 ____% FIDELITY MONEY MKT 54/74 ____%
DREYFUS SOCIAL RESPON 81/91 ____% FIDELITY OVERSEAS 19/39 ____%
</TABLE>
Fixed Account Options*
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
____% 1 Yr. (301) ____% 3 Yr. (303) ____% 5 Yr. (305) ____% 7 Yr. (307) ____% 10 Yr. (310)
* The Fixed Accounts and/or the Guarantee Periods may not be available in all states.
</TABLE>
Total allocation must equal 100%
OWNER'S SIGNATURE ___________________________ DATE _______________
JOINT OWNER'S SIGNATURE ___________________________ DATE _______________
PLEASE MAKE CHECKS PAYABLE TO CANADA LIFE INSURANCE COMPANY OF AMERICA
INFORMATION FOR QUALIFIED POLICY CONTRIBUTIONS
(THIS SECTION MUST BE COMPLETED)
IS THIS A ROLLOVER? _____YES _____NO
IF YES, WHAT TYPE? ___________________ PLEASE NOTE: CONTRIBUTIONS FOR PRIOR
TAX YEAR CANNOT BE MADE
CONTRIBUTION $___________ FOR ________ AFTER APRIL 15TH OF THE
CURRENT TAX YEAR.
CONTRIBUTION $___________ FOR ________
PLEASE DIRECT ANY QUESTIONS REGARDING YOUR POLICY TO YOUR REGISTERED
REPRESENTATIVE OR TO OUR VARIABLE ANNUITY DEPARTMENT AT (800) 905-1959.
Our Variable Annuity Administrators can not advise you on the suitability of
your payment. Please contact your Registered Representative to discuss
suitability issues prior to submitting your additional premium payment.
Variable Annuities are issued by Canada Life Insurance Company of America
and offered through its subsidiary, Canada Life of
America Financial Services, Inc. (member NASD).
5/1/00
<PAGE>
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 29, 2000
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 29, 2000
Portfolios which include: Berger/BIAM IPT-International Fund; Small Company
Growth
Dreyfus Variable Investment Fund, filed August 18, 2000
Portfolios which include: Dreyfus Growth and Income; Dreyfus Capital
Appreciation
The Dreyfus Socially Responsible Growth Fund, Inc., filed August 18, 2000
Portfolios which include: Dreyfus Socially Responsible
Fidelity Investments Variable Insurance Products Fund, filed June 30, 2000
Portfolios which include: Fidelity VIP Growth
Fidelity Investments Variable Insurance Products Fund, filed June 30, 2000
Portfolios which include: Fidelity VIP High Income
Fidelity Investments Variable Insurance Products Fund, filed June 30, 2000
Portfolios which include: Fidelity VIP Overseas
Fidelity Investments Variable Insurance Products Fund, filed June 30, 2000
Portfolios which include: Fidelity Investment Grade Bond, Fidelity Money
Market
Fidelity Investments Variable Insurance Products Fund II, filed June 30, 2000
Portfolios which include: Fidelity VIP II Asset Manager
Fidelity Investments Variable Insurance Products Fund II, filed June 30, 2000
Portfolios which include: Fidelity VIP II Index 500; Fidelity VIP II
Contrafund
Fidelity Investments Variable Insurance Products Fund III, filed June 30, 2000
Portfolios which include: Fidelity VIP III Growth Opportunities
Seligman Portfolios, Inc., filed August 31, 2000
Portfolios which include: Communications and Information; and Frontier
The Montgomery Funds III, filed August 8, 2000
Portfolios which include: Montgomery Variable Series Emerging Markets Fund;
and Montgomery Variable Series Growth Fund
