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SUPPLEMENT DATED JULY 27, 1998
TO THE PROSPECTUS DATED MAY 1, 1998 FOR
CANADA LIFE OF AMERICA SERIES FUND, INC.
Effective July 27, 1998, the Prospectus dated May 1, 1998 for Canada Life of
America Series Fund, Inc. is amended as set forth below.
The section of the Prospectus captioned Money Market Portfolio in the Investment
Objectives, Policies and Risks section is amended to include the following:
PORTFOLIO MANAGER
Henry A. Rachfalowski, LLB, MBA, President of CL Capital Management, Inc.
("CLCM"), is responsible for setting overall investment policies, client
communication, and determination of the asset mix and the day-to-day investment
management of the Money Market Portfolio. Mr. Rachfalowski is also responsible
for the management of the Value Equity Portfolio, Managed Portfolio, Capital
Portfolio and the International Equity Portfolio. Mr. Rachfalowski joined The
Canada Life Assurance Company in 1996; he has fifteen years of investment
management and portfolio management experience, most recently as Investment Vice
President, U.S. Investments.
The section of the Prospectus captioned "Portfolio Manager" under Bond Portfolio
in the Investment Objectives, Policies and Risks section is amended to include
the following:
PORTFOLIO MANAGER
George N. Isaac, CFA, Senior Portfolio Manager of CLCM, is responsible for the
day-to-day investment management and trading activities of the Bond Portfolio.
Mr. Isaac is also responsible for the management of the bond portion of the
Managed Portfolio. Mr. Isaac has been the Portfolio Manager for the Fixed Income
Portfolio of the General Funds of The Canada Life Assurance Company, U.S.
Division since 1980.
The section of the Prospectus captioned "Portfolio Manager" under Value Equity
Portfolio in the Investment Objectives, Policies and Risks section is amended to
include the following:
PORTFOLIO MANAGER
Henry A. Rachfalowski, LLB, MBA, President of CLCM, is responsible for setting
overall investment policies, client communication, and determination of the
asset mix and the day-to-day investment management of the Value Equity
Portfolio. Mr. Rachfalowski is also responsible for the management of the Money
Market Portfolio, Managed Portfolio, Capital Portfolio and the International
Equity Portfolio. The Value Equity Portfolio is also sub-advised by INDAGO
Capital Management Inc. ("INDAGO").
SUB-ADVISER PORTFOLIO MANAGER
Diane Haflidson, BA, MBA, is responsible for the Sub-Adviser's day-to-day
investment management of the Value Equity Portfolio. Ms. Haflidson joined INDAGO
as Vice President and Portfolio Manager, Foreign Equities in August, 1996. Ms.
Haflidson has fourteen years of investment management experience. Ms. Haflidson
is also responsible for the Sub-Adviser's management of the equity portion of
the Managed Portfolio.
The section of the Prospectus captioned "Portfolio Manager" under Managed
Portfolio in the Investment Objectives, Policies and Risks section is amended to
include the following:
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PORTFOLIO MANAGER
Henry A. Rachfalowski, LLB, MBA, President of CLCM, is responsible for setting
overall investment policies, client communication, and determination of the
asset mix and the day-to-day investment management of the equity portion of the
Managed Portfolio. Mr.Rachfalowski is also responsible for the management of the
Money Market Portfolio, Value Equity Portfolio, Capital Portfolio and the
International Equity Portfolio. The equity portion of the Managed Portfolio is
also sub-advised by INDAGO.
George N. Isaac, CFA, Senior Portfolio Manager of CLCM, is responsible for the
day-to-day investment management and trading activities of the bond portion of
the Managed Portfolio. Mr. Isaac is also responsible for the management of the
Bond Portfolio. Mr. Isaac has been the Portfolio Manager for the Fixed Income
Portfolio of the General Funds of The Canada Life Assurance Company, U.S.
Division, since 1980.
SUB-ADVISER PORTFOLIO MANAGER
Diane Haflidson, BA, MBA, is responsible for the Sub-Adviser's day-to-day
investment management of the equity portion of the Managed Portfolio. Ms.
Haflidson joined INDAGO as Vice President and Portfolio Manager, Foreign
Equities in August, 1996. Ms. Haflidson has fourteen years of investment
management experience. Ms. Haflidson is also responsible for the Sub-Adviser's
management of the Value Equity Portfolio.
The section of the Prospectus captioned "Portfolio Manager" under Capital
Portfolio in the Investment Objectives, Policies and Risks section is amended to
include the following:
PORTFOLIO MANAGER
Henry A. Rachfalowski, LLB, MBA, President of CLCM, is responsible for setting
overall investment policies, client communication, and determination of the
asset mix and the day-to-day investment management of the Capital Portfolio.
Mr. Rachfalowski is also responsible for the management of the Money Market
Portfolio, Value Equity Portfolio, Managed Portfolio and the International
Equity Portfolio. The Capital Portfolio is also sub-advised by J.& W. Seligman &
Co. Incorporated.
The section of the Prospectus captioned "Portfolio Manager" under International
Equity Portfolio in the Investment Objectives, Policies and Risks section is
amended to include the following:
PORTFOLIO MANAGER
Henry A. Rachfalowski, LLB, MBA, President of CLCM, is responsible for setting
overall investment policies, client communication, and determination of the
asset mix and the day-to-day investment management of the International Equity
Portfolio. Mr.Rachfalowski is also responsible for the management of the Money
Market Portfolio, Value Equity Portfolio, Managed Portfolio and the Capital
Portfolio. The International Equity Portfolio is also sub-advised by INDAGO.
The second paragraph in the section of the Prospectus captioned "Investment
Adviser" in the Management of the Fund section is revised as follows:
INVESTMENT ADVISER
The Adviser was incorporated on March 1, 1989 and began rendering investment
advisory services on behalf of the Fund on May 1, 1995. Personnel providing
investment advisory services for the Adviser also manage the U.S. assets of
Canada Life. Canada life is one of the largest life insurance companies in North
America, with consolidated assets as of December 31, 1997 of approximately $27.7
billion (U.S. dollars), of which in excess of $5.3 billion is in U.S. assets.
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The section of the Prospectus captioned "International Equity Portfolio
Sub-Adviser" in the Management of the Fund section is amended to include the
following:
VALUE EQUITY PORTFOLIO, MANAGED PORTFOLIO AND INTERNATIONAL EQUITY PORTFOLIO
SUB-ADVISER
The Sub-Adviser for the Value Equity Portfolio, the International Equity
Portfolio and the equity portion of the Managed Portfolio is INDAGO Captial
Management Inc. ("INDAGO"). The address of INDAGO is 130 Adelaide Street West,
Suite 3000, Toronto, Ontario, Canada, M5H 3P5. Pursuant to Sub-Advisory
agreements between the Investment Adviser and INDAGO, INDAGO provides investment
advisory services to the Value Equity Portfolio, Managed Portfolio and the
International Equity Portfolio. The investment advisory services include
providing these portfolios with investment research, advice and supervision,
continuously furnishing an investment program, and determining from time to time
which securities shall be purchased, sold, or exchanged.
Effective July 15, 1997, INDAGO changed its name from Canada Life Investment
Management Limited to INDAGO Capital Management Inc. The name change was
executed in connection with the sale of fifty percent of INDAGO's outstanding
common stock to certain of its executive employees (the "Executive Employees").
INDAGO is jointly owned by the Executive Employees and The Canada Life Assurance
Company.
INDAGO was incorporated on February 24, 1977. INDAGO also serves as manager of
assets of The Canada Life Assurance Company, the aggregate assets of which were
approximately Canadian $5.5 billion at December 31, 1997. INDAGO also provides
investment management to individual and institutional accounts having a December
31, 1997 value of approximately Canadian $1.1 billion.
The section of the Prospectus captioned "Advisory Fees And Expenses" in the
Management of the Fund section is amended to include the following:
ADVISORY FEES AND EXPENSES
The Fund pays the Adviser, as full compensation for all facilities and services
it provides to the Fund, a monthly fee computed for each portfolio on a daily
basis, at an annual rate of 0.50% of the net assets of the portfolio except the
International Equity Portfolio which has an annual rate of 0.80%*. With respect
to the Capital Portfolio, the Adviser in turn pays the Capital Portfolio Sub-
Adviser, as full compensation for investment advisory services to the Capital
Portfolio, a monthly fee computed on a daily basis, at an annual effective rate
of 0.25% of the net assets of the Capital Portfolio. With respect to the
International Equity Portfolio, the Adviser in turn pays the International
Equity Portfolio Sub-Adviser, as full compensation for investment advisory
services to the International Equity Portfolio, a monthly fee computed on a
daily basis, at an annual effective rate of 0.30% of the net assets of the
International Equity Portfolio. With respect to the Value Equity Portfolio, the
Adviser in turn pays the Value Equity Portfolio Sub-Adviser, as full
compensation for investment advisory services to the Value Equity Portfolio, a
monthly fee computed on a daily basis, at an annual effective rate of 0.25% of
the net assets of the Value Equity Portfolio. With respect to the equity portion
of the Managed Portfolio, the Adviser in turn pays the Managed Portfolio Sub-
Adviser, as full compensation for investment advisory services to the Managed
Portfolio, a monthly fee computed on a daily basis, at an annual effective rate
of 0.25% of the net assets of the Managed Portfolio. The Fund incurs certain
operating and general administrative expenses in addition to the Adviser's fee.
These expenses, which are accrued daily, include but are not limited to: taxes;
expenses for legal and auditing services; costs of printing; charges for
custodial services, transfer agent fees, if any; expenses of redemption of
shares; Securities and Exchange Commission fees; expenses of registering shares
under federal and state securities laws; accounting costs; insurance; interest;
brokerage costs; and other expenses properly payable by the Fund. Certain
expenses are paid by the particular portfolio that incurs them, while other
expenses are allocated among the portfolios on the basis of the assets size of
the respective portfolio, or by the Board of Directors as appropriate. At the
current time, Canada Life Insurance Company of America (CLICA) is reimbursing
the Fund for expenses (other than advisory fees) that exceed 0.40% of the
Managed, Bond, Value Equity, Capital, and International Equity Portfolio, and
0.25% of the Money Market Portfolio. However, CLICA reserves the right to
discontinue this reimbursement at any time.
* The investment advisory fee for the International Equity Portfolio exceeds
the industry average of investment advisory fees for domestic funds but does not
exceed the industry average of advisory fees for international funds.
