CANADA LIFE OF AMERICA SERIES FUND, INC.
AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 1998
Ernst & Young LLP
Suite 2800
600 Peachtree Street
Atlanta, Georgia 30308-2215
Phone: 404 874 8300
Report Of Independent Auditors
Board of Directors and Shareholders
Canada Life of America Series Fund, Inc.
We have audited the accompanying statements of assets and
Liabilities, including the schedules of investments of Canada Life
of America Series Fund, Inc. (comprising, respectively, the Money
Market, Managed, Bond, Value Equity, Capital and International
Equity Series) as of December 31, 1998, and the related statements
of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights are
the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements and
financial highlights based on out audits.
We conducted your audits in accordance with generally accepted
auditing standards. Those standards requires that we plan and and
perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements
and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1998, by correspondence with the
custodian and brokers. 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 provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of each of the respective series constituting
the Canada Life of America Series Fund, Inc. at December 31, 1998,
the results of their operations for the year then ended, the changes
in their net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in
the period then ended, in conformity with generally accepted
accounting principles.
/s/ Ernst & Young LLP
Ernst & Young LLP
Atlanta, Georgia
January 27, 1999
Canada Life of America Series Fund, Inc.
Statements of Assets and Liabilities
-
December 31, 1998
Money
Market Managed
Series Series
Assets
Investments in securities, at market value
(Identified cost - See accompanying Schedules of
Investments - Series Portfolios) $12,152,274 $13,990,869
Cash 192,889 119,909
Receivables:
Dividends and interest 32,568 70,954
Due from brokers for investments sold - 643,317
Total assets 12,377,731 14,825,049
Liabilities
Cash Overdraft
Payables: - -
Investment advisory fees [Note 2] 6,087 6,114
Other accrued expenses 4,826 66,120
Directors' fees and expenses payable 3,531 10,338
Dividends declared 53,390 1,391,926
Due to brokers for investments
purchased 41,997
Total liabilities 67,834 1,516,495
Net assets $12,309,897 $13,308,554
Net assets consist of:
Capital shares $12,310 $11,232
Additional paid-in capital 12,297,587 12,429,371
Undistributed net investment loss - -
Net unrealized appreciation on investments
and foreign currencies - 867,951
Total net assets $12,309,897 $13,308,554
Shares authorized ($.01 par value) 20,000,000 20,000,000
Shares outstanding 1,230,990 1,123,226
Net asset value per share $10.00 $11.85
See accompanying notes.
Canada Life of America Series Fund, Inc.
Statements of Assets and Liabilities
-
December 31, 1998
Value
Bond Equity
Series Series
Assets
Investments in securities, at market value
(Identified cost - See accompanying Schedules of
Investments - Series Portfolios) $17,229,331 $17,651,449
Cash 136,264 8,630
Receivables:
Dividends and interest 217,232 14,460
Due from brokers for investments sold - 97,573
Total assets 17,582,827 17,772,112
Liabilities
Cash Overdraft - -
Payables:
Investment advisory fees [Note 2] 7,539 7,226
Other accrued expenses 34,939 55,814
Directors' fees and expenses payable 7,245 8,880
Dividends declared 827,486 774,864
Due to brokers for investments
purchased - 95,992
Total liabilities 877,209 942,776
Net assets $16,705,618 $16,829,336
Net assets consist of:
Capital shares $15,195 $11,643
Additional paid-in capital 16,322,429 15,133,088
Undistributed net investment loss - -
Net unrealized appreciation on investments
and foreign currencies 367,994 1,684,605
Total net assets $16,705,618 $16,829,336
Shares authorized ($.01 par value) 10,000,000 10,000,000
Shares outstanding 1,519,530 1,164,262
Net asset value per share $10.99 $14.45
See accompanying notes.
Canada Life of America Series Fund, Inc.
Statements of Assets and Liabilities
-
December 31, 1998
International
Capital Equity
Series Series
Assets
Investments in securities, at market value
(Identified cost - See accompanying Schedules of
Investments - Series Portfolios) $9,340,534 $6,249,839
Cash - 486,853
Receivables:
Dividends and interest 1,923 10,379
Due from brokers for investments sold 130,512 104,776
Total assets 9,472,969 6,851,847
Liabilities
Cash Overdraft 376,427 -
Payables:
Investment advisory fees [Note 2] 3,652 4,518
Other accrued expenses 44,087 15,243
Directors' fees and expenses payable 5,673 4,035
Dividends declared 595,585 470,983
Due to brokers for investments
purchased 39,812 98,011
Total liabilities 1,065,236 592,790
Net assets $8,407,733 $6,259,057
Net assets consist of:
Capital shares $5,291 $5,102
Additional paid-in capital 5,740,051 5,766,648
Undistributed net investment loss (34,768) -
Net unrealized appreciation on investments
and foreign currencies 2,697,159 487,307
Total net assets $8,407,733 $6,259,057
Shares authorized ($.01 par value) 20,000,000 10,000,000
Shares outstanding 529,080 510,203
Net asset value per share $15.89 $12.27
See accompanying notes.
Canada Life of America Series Fund, Inc.
Statements of Operations
-
Year ended December 31, 1998
Money
Market Managed
Series Series
Investment income:
Interest $761,483 $431,180
Dividends 73,617
Total investment income 761,483 504,797
Expenses:
Investment advisory fees [note 2] 70,576 78,437
Directors' fees and expenses 7,200 8,280
Custodian fees and expenses 20,513 20,594
Audit and legal fees 10,000 11,500
Accounting and administration [note 2] 24,000 27,600
Miscellaneous 2,000 2,300
Total expenses 134,289 148,711
Expense reimbursement [note 1] 28,425 7,524
Net expenses 105,864 141,187
Net investment income (loss) 655,619 363,610
Realized and unrealized gain (loss) on investments:
Net realized gain on investments and
foreign currencies - 1,028,316
Net change in unrealized appreciation (depreciation)
on investments and foreign
currencies - (635,803)
Net gain on investments - 392,513
Net increase in net assets resulting
from operations $655,619 $756,123
See accompanying notes.
Canada Life of America Series Fund, Inc.
Statements of Operations
-
Year ended December 31, 1998
Value
Bond Equity
Series Series
Investment income:
Interest $657,105 $33,687
Dividends 130,370
Total investment income 657,105 164,057
Expenses:
Investment advisory fees [note 2] 56,148 72,203
Directors' fees and expenses 5,760 7,560
Custodian fees and expenses 10,359 19,432
Audit and legal fees 8,000 10,500
Accounting and administration [note 2] 19,200 25,200
Miscellaneous 1,600 2,100
Total expenses 101,067 136,995
Expense reimbursement [note 1] - 4,076
Net expenses 101,067 132,919
Net investment income (loss) 556,038 31,138
Realized and unrealized gain (loss) on investments:
Net realized gain on investments and
foreign currencies 271,448 743,726
Net change in unrealized appreciation (depreciation)
on investments and foreign
currencies 181,674 (106,535)
Net gain on investments 453,122 637,191
Net increase in net assets resulting
from operations $1,009,160 $668,329
See accompanying notes.
Canada Life of America Series Fund, Inc.
Statements of Operations
-
Year ended December 31, 1998
International
Capital Equity
Series Series
Investment income:
Interest 5,871 $24,773
Dividends 40,005 68,165
Total investment income 45,876 92,938
Expenses:
Investment advisory fees [note 2] 41,541 44,562
Directors' fees and expenses 4,320 2,880
Custodian fees and expenses 13,183 17,863
Audit and legal fees 6,000 4,000
Accounting and administration [note 2] 14,400 9,600
Miscellaneous 1,200 800
Total expenses 80,644 79,705
Expense reimbursement [note 1] 12,861
Net expenses 80,644 66,844
Net investment income (loss) (34,768) 26,094
Realized and unrealized gain (loss) on investments:
Net realized gain on investments and
foreign currencies 595,585 444,889
Net change in unrealized appreciation (depreciation)
on investments and foreign
currencies 968,103 299,042
Net gain on investments 1,563,688 743,931
Net increase in net assets resulting
from operations $1,528,920 $770,025
See accompanying notes.
Canada Life of America Series Fund, Inc.
Statement of Changes in Net Assets
-
Money Market Series
Year ended December 31
1998 1997
Operations:
Net investment income $655,619 $514,195
Net increase in net assets resulting
from operations 655,619 514,195
Dividends to shareholders from:
Net investment income (655,619) (514,195)
Fund share transactions [note 4]: 3,160,504 1,550,180
Total increase in net assets 3,160,504 1,550,180
Net assets:
Beginning of year 9,149,393 7,599,213
End of year $12,309,897 $9,149,393
See accompanying notes.
Canada Life of America Series Fund, Inc.
Statement of Changes in Net Assets
-
Managed Series
Year ended December 31
1998 1997
Operations:
Net investment income $363,610 $443,878
Net realized gain on investments 1,028,316 1,310,166
Net change in unrealized appreciation (depreciation)
on investments (635,803) 863,708
Net increase in net assets resulting
from operations 756,123 2,617,752
Dividends to shareholders from:
Net investment income (363,610) (443,878)
Net realized gain on investments (1,028,316) (1,310,166)
Fund share transactions [note 4]: (1,333,210) (1,558,780)
Total decrease in net assets (1,969,013) (695,072)
Net assets:
Beginning of year 15,277,567 15,972,639
End of year $13,308,554 $15,277,567
See accompanying notes.
Canada Life of America Series Fund, Inc.
Statement of Changes in Net Assets
-
Bond Series
Year ended December 31
1998 1997
Operations:
Net investment income $556,038 $409,020
Net realized gain (loss) on
investments 271,448 (10,025)
Net change in unrealized appreciation
on investments 181,674 166,988
Net increase in net assets resulting
from operations 1,009,160 565,983
Dividends to shareholders from:
Net investment income (556,038) (409,020)
Net realized gain on investments (271,448) -
Fund share transactions [note 4]: 9,458,126 195,941
Total increase in net assets 9,639,800 352,904
Net assets:
Beginning of year 7,065,818 6,712,914
End of year $16,705,618 $7,065,818
See accompanying notes.
Canada Life of America Series Fund, Inc.
Statement of Changes in Net Assets
-
Value Equity Series
Year ended December 31
1998 1997
Operations:
Net investment income $31,138 $27,897
Net realized gain on investments 743,726 1,206,843
Net change in unrealized appreciation (depreciation)
on investments (106,535) 1,203,076
Net increase in net assets resulting
from operations 668,329 2,437,816
Dividends to shareholders from:
Net investment income (31,138) (27,897)
Net realized gain on investments (743,726) (1,206,843)
Fund share transactions [note 4]: 6,789,015 425,588
Total increase in net assets 6,682,480 1,628,664
Net assets:
Beginning of year 10,146,856 8,518,192
End of year $16,829,336 $10,146,856
See accompanying notes.
Canada Life of America Series Fund, Inc.
Statement of Changes in Net Assets
-
Capital Series
Year ended December 31
1998 1997
Operations:
Net investment income (loss) ($34,768) $1,911
Net realized gain on investments 595,585 1,261,318
Net change in unrealized appreciation
on investments 968,103 225,500
Net increase in net assets resulting
from operations 1,528,920 1,488,729
Dividends to shareholders from:
Net investment income (1,911)
Net realized gain on investments (595,585) (1,261,318)
Fund share transactions [note 4]: 980,340 (407,958)
Total increase (decrease) in net assets 1,913,675 (182,458)
Net assets:
Beginning of year 6,494,058 6,676,516
End of year $8,407,733 $6,494,058
See accompanying notes.
Canada Life of America Series Fund, Inc.
Statement of Changes in Net Assets
-
International Equity Series
Year ended December 31
1998 1997
Operations:
Net investment income $26,094 $25,190
Net realized gain on investments and f 444,889 261,050
Net change in unrealized appreciation (depreciation)
on investments and foreign
currencies 299,042 (229,603)
Net increase in net assets resulting
from operations 770,025 56,637
Dividends to shareholders from:
Net investment income (26,094) (25,190)
Net realized gain on investments and foreign currencies
Fund share transactions [note 4]: (444,889) (261,050)
1,188,893 1,695,535
Total increase in net assets 1,487,935 1,465,932
Net assets:
Beginning of year 4,771,122 3,305,190
End of year $6,259,057 $4,771,122
See accompanying notes.
3. Investment Transactions
The aggregate cost of purchases and proceeds from
sales (excluding short term investments)
for all Series, for the year ended December 31, 1998
are presented below:
-
Proceeds
Cost of from
Securities Securities
Purchased Sold
Managed Series
US Gov't & Its Agencies Bonds $5,212,717 $7,101,013
All other Investments 18,086,043 18,497,754
Total $23,298,760 $25,598,767
Bond Series
US Gov't & Its Agencies Bonds $17,147,338 $10,100,602
All other Investments 2,595,182 278,704
Total $19,742,520 $10,379,306
Value Equity Series
All other Investments $33,185,854 $26,778,768
Total $33,185,854 $26,778,768
Capital Series
All other Investments $10,410,722 $10,515,836
Total $10,410,722 $10,515,836
International Equity Series
All other Investments $7,409,758 $6,643,001
Total $7,409,758 $6,643,001
The information in the following table is presented
on the basis of cost for Fed. income tax purposes
as of December 31, 1998.
Identified
Cost of Gross
Securities Unrealized
Owned Appreciation
Money Market Series $12,152,274 $ -
Managed Series $13,122,918 $1,102,161
Bond Series $16,861,337 $383,181
Value Equity Series $15,966,844 $2,320,647
Capital Series $6,643,375 $2,710,996
International Equity Series $5,762,532 $751,735
Gross Net
Unrealized Unrealized
(Depreciation) Appreciation
Money Market Series $ $ -
Managed Series (234,210) 867,951
Bond Series (15,187) 367,994
Value Equity Series (636,042) 1,684,605
Capital Series (13,837) 2,697,159
International Equity Series (264,428) 487,307
4. Capital Share Transactions
Transactions in capital stock were as follows:
Year ended December 31
1998 1998
Shares Amount
Money Market Series
Shares sold 24,707,682 $247,076,818
Shares issued in reinvestment
of dividends 66,033 660,325
24,773,715 247,737,143
Shares redeemed (24,457,664) (244,576,639)
Net increase 316,051 $3,160,504
Managed Series
Shares sold 112,168 $1,426,456
Shares issued in reinvestment
of dividends 140,924 1,754,044
253,092 3,180,500
Shares redeemed (357,305) (4,513,710)
Net (decrease) (104,213) ($1,333,210)
Bonds Series
Shares sold 1,136,864 $12,695,548
Shares issued in reinvestment
of dividends 38,639 409,020
1,175,503 13,104,568
Shares redeemed (323,468) (3,646,442)
Net increase 852,035 $9,458,126
Value Equity Series
Shares sold 808,855 $11,378,457
Shares issued in reinvestment
of dividends 83,955 1,234,740
892,810 12,613,197
Shares redeemed (418,472) (5,824,182)
Net increase 474,338 $6,789,015
Capital Series
Shares sold 144,582 $2,149,583
Shares issued in reinvestment
of dividends 89,255 1,263,229
233,837 3,412,812
Shares redeemed (163,601) (2,432,472)
Net increase (decrease) 70,236 $980,340
International Equity Series
Shares sold 1,788,949 $21,110,448
Shares issued in reinvestment
of dividends 24,601 286,240
1,813,550 21,396,688
Shares redeemed (1,713,403) (20,207,795)
Net increase 100,147 $1,188,893
4. Capital Share Transactions
Transactions in capital stock were as follows:
Year ended December 31
1997 1997
Shares Amount
Money Market Series
Shares sold 12,923,152 $129,231,519
Shares issued in reinvestment
of dividends 52,194 521,937
12,975,346 129,753,456
Shares redeemed (12,820,328) (128,203,276)
Net increase 155,018 $1,550,180
Managed Series
Shares sold 271,028 $3,402,203
Shares issued in reinvestment
of dividends 146,936 1,733,625
417,964 5,135,828
Shares redeemed (544,308) (6,694,608)
Net (decrease) (126,344) ($1,558,780)
Bonds Series
Shares sold 155,402 $1,649,293
Shares issued in reinvestment
of dividends 36,305 376,138
191,707 2,025,431
Shares redeemed (172,144) (1,829,490)
Net increase 19,563 $195,941
Value Equity Series
Shares sold 179,856 $2,609,978
Shares issued in reinvestment
of dividends 73,088 949,877
252,944 3,559,855
Shares redeemed (218,446) (3,134,267)
Net increase 34,498 $425,588
Capital Series
Shares sold 85,047 $1,293,829
Shares issued in reinvestment
of dividends 44,978 627,720
130,025 1,921,549
Shares redeemed (149,567) (2,329,507)
Net increase (decrease) (19,542) ($407,958)
International Equity Series
Shares sold 1,381,876 $18,000,433
Shares issued in reinvestment
of dividends 5,428 64,171
1,387,304 18,064,604
Shares redeemed (1,256,820) (16,369,069)
Net increase 130,484 $1,695,535
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Money Market Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
-
Year ended December 31
1998 1997
Net asset value, beginning of period $10.00 $10.00
Income from investment operations:
Net investment income 0.46 0.48
Total from investment operations 0.46 0.48
Less distributions:
Dividends from net investment income (0.46) (0.48)
Total distributions (0.46) (0.48)
Net asset value, end of period $10.00 $10.00
Total return 4.77% 4.95%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $12,310 $9,149
Ratio of expenses to average net assets 0.75%* 0.75%
Ratio of net investment income to average net
assets 4.64% 4.78%
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 0.95% 1.16%
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Money Market Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
-
Year ended December 31
1996 1995
Net asset value, beginning of period $10.00 $10.00
Income from investment operations:
Net investment income 0.45 0.49
Total from investment operations 0.45 0.49
Less distributions:
Dividends from net investment income (0.45) (0.49)
Total distributions (0.45) (0.49)
Net asset value, end of period $10.00 $10.00
Total return 4.58% 4.95%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $7,599 $4,609
Ratio of expenses to average net assets 0.75% 0.75%
Ratio of net investment income to average net
assets 4.54% 4.98%
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 1.09% 1.14%
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Money Market Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
-
Year ended December 31
1994
Net asset value, beginning of period $10.00
Income from investment operations:
Net investment income 0.34
Total from investment operations 0.34
Less distributions:
Dividends from net investment income (0.34)
Total distributions (0.34)
Net asset value, end of period $10.00
Total return 3.40%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $5,057
Ratio of expenses to average net assets 0.75%
Ratio of net investment income to average net
assets 3.43%
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 1.11%
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Managed Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
Year ended December 31
1998** 1997
Net asset value, beginning of period $12.45 $11.80
Income from investment operations:
Net investment income 0.29 0.34
Net realized and unrealized
gain (loss) on investments 0.23 1.66
Total from investment operations 0.52 2.00
Less distributions:
Dividends from net investment income (0.29) (0.34)
Distributions from net realized gains (0.83) (1.01)
Total distributions (1.12) (1.35)
Net asset value, end of period $11.85 $12.45
Total return 5.15% 17.61%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $13,309 $15,278
Ratio of expenses to average net assets 0.90%* 0.90%
Ratio of net investment income to average net
assets 2.35% 2.74%
Portfolio turnover rate 167.95% 82.80%
Average commission rate paid $0.0448 $0.0570
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 0.96% 0.95%
** During 1998 the investment advisory services
changed from CL Capital Management Inc., ("Advisor")
to INDAGO Capital
Management, Inc. ("the Sub-Advisor") for
the equity portion of the fund.
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Managed Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
Year ended December 31
1996 1995
Net asset value, beginning of period $12.37 $12.01
Income from investment operations:
Net investment income 0.32 0.40
Net realized and unrealized
gain (loss) on investments 0.27 2.38
Total from investment operations 0.59 2.78
Less distributions:
Dividends from net investment income (0.32) (0.41)
Distributions from net realized gains (0.84) (2.01)
Total distributions (1.16) (2.42)
Net asset value, end of period $11.80 $12.37
Total return 5.75% 21.92%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $15,973 $17,033
Ratio of expenses to average net assets 0.90% 0.90%
Ratio of net investment income to average net
assets 2.53% 3.06%
Portfolio turnover rate 144.67% 145.14%
Average commission rate paid $0.0600 $0.0611
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 0.95% 1.03%
** During 1998 the investment advisory services changed
from CL Capital Management Inc., ("Advisor") to INDAGO Capital
Management, Inc. ("the Sub-Advisor") for the equity
portion of the fund.
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Managed Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
Year ended December 31
1994
Net asset value, beginning of period $12.77
Income from investment operations:
Net investment income 0.32
Net realized and unrealized
gain (loss) on investments (0.39)
Total from investment operations (0.07)
Less distributions:
Dividends from net investment income (0.32)
Distributions from net realized gains (0.37)
Total distributions (0.69)
Net asset value, end of period $12.01
Total return -0.25%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $15,192
Ratio of expenses to average net assets 0.97%
Ratio of net investment income to average net
assets 2.51%
Portfolio turnover rate 27.31%
Average commission rate paid $0.0735
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 0.98%
** During 1998 the investment advisory services changed
from CL Capital Management Inc., ("Advisor") to INDAGO Capital
Management, Inc. ("the Sub-Advisor") for the equity
portion of the fund.
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Bond Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
Year ended December 31
1998 1997
Net asset value, beginning of period $10.59 $10.36
Income from investment operations:
Net investment income 0.55 0.60
Net realized and unrealized
gain (loss) on investments 0.67 0.23
Total from investment operations 1.22 0.83
Less distributions:
Dividends from net investment income (0.55) (0.60)
Distributions from net realized gains (0.27) -
Distributions from paid-in capital - -
Total distributions (0.82) (0.60)
0.00 0.00
Net asset value, end of period $10.99 $10.59
Total return 9.00% 8.09%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $16,706 $7,066
Ratio of expenses to average net assets 0.90%* 0.90%
Ratio of net investment income to average net
assets 5.04% 5.70%
Portfolio turnover rate 105.90% 127.63%
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 0.92% 1.02%
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Bond Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
Year ended December 31
1996 1995
Net asset value, beginning of period $10.45 $9.75
Income from investment operations:
Net investment income 0.60 0.65
Net realized and unrealized
gain (loss) on investments (0.09) 1.09
Total from investment operations 0.51 1.74
Less distributions:
Dividends from net investment income (0.60) (0.64)
Distributions from net realized gains - (0.15)
Distributions from paid-in capital - (0.25)
Total distributions (0.60) (1.04)
Net asset value, end of period $10.36 $10.45
Total return 4.66% 16.77%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $6,713 $5,494
Ratio of expenses to average net assets 0.90% 0.88%
Ratio of net investment income to average net
assets 5.73% 6.06%
Portfolio turnover rate 284.11% 245.32%
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 1.08% 1.09%
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Bond Series
Year ended December 31
1994
Net asset value, beginning of period $10.74
Income from investment operations:
Net investment income 0.51
Net realized and unrealized
gain (loss) on investments (0.99)
Total from investment operations (0.48)
Less distributions:
Dividends from net investment income (0.51)
Distributions from net realized gains -
Distributions from paid-in capital -
Total distributions (0.51)
Net asset value, end of period $9.75
Total return -3.94%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $3,986
Ratio of expenses to average net assets 0.96%
Ratio of net investment income to average net
assets 5.01%
Portfolio turnover rate 43.89%
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 1.10%
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Value Equity Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
Year ended December 31
1998** 1997
Net asset value, beginning of period $14.71 $13.00
Income from investment operations:
Net investment income 0.03 0.04
Net realized and unrealized
gain on investments 0.49 3.44
Total from investment operations 0.52 3.48
Less distributions:
Dividends from net investment income (0.03) (0.04)
Distributions from net realized gains (0.75) (1.73)
Total distributions (0.78) (1.77)
Net asset value, end of period $14.45 $14.71
Total return 2.81% 26.93%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $16,829 $10,147
Ratio of expenses to average net assets 0.90%* 0.90%
Ratio of net investment income to average net
assets 0.22% 0.28%
Portfolio turnover rate 189.28% 50.97%
Average commission rate paid $0.0447 $0.0560
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 0.97% 1.01%
** During 1998 the investment advisory services changed
from CL Capital Management Inc., ("Advisor") to INDAGO Capital
Management, Inc. ("the Sub-Advisor").
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Value Equity Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
Year ended December 31
1996 1995
Net asset value, beginning of period $13.51 $13.46
Income from investment operations:
Net investment income 0.02 0.12
Net realized and unrealized
gain on investments 0.80 3.17
Total from investment operations 0.82 3.29
Less distributions:
Dividends from net investment income (0.02) (0.12)
Distributions from net realized gains (1.31) (3.12)
Total distributions (1.33) (3.24)
Net asset value, end of period $13.00 $13.51
Total return 6.94% 23.66%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $8,519 $8,245
Ratio of expenses to average net assets 0.90% 0.90%
Ratio of net investment income to average net
assets 0.17% 0.81%
Portfolio turnover rate 46.78% 103.07%
Average commission rate paid $0.0600 $0.0608
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 0.99% 1.07%
** During 1998 the investment advisory services changed
from CL Capital Management Inc., ("Advisor") to INDAGO Capital
Management, Inc. ("the Sub-Advisor").
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Value Equity Series
Year ended December 31
1994
Net asset value, beginning of period $13.60
Income from investment operations:
Net investment income 0.14
Net realized and unrealized
gain on investments 0.13
Total from investment operations 0.27
Less distributions:
Dividends from net investment income (0.14)
Distributions from net realized gains (0.27)
Total distributions (0.41)
Net asset value, end of period $13.46
Total return 2.03%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $7,379
Ratio of expenses to average net assets 0.96%
Ratio of net investment income to average net
assets 1.03%
Portfolio turnover rate 35.99%
Average commission rate paid $0.0738
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 0.97%
** During 1998 the investment advisory services changed
from CL Capital Management Inc., ("Advisor") to INDAGO Capital
Management, Inc. ("the Sub-Advisor").
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Capital Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
Year ended December 31
1998 1997
Net asset value, beginning of period $14.15 $13.96
Income from investment operations:
Net investment income (loss) (0.06) -
Net realized and unrealized
gain (loss) on investments 2.87 2.75
Total from investment operations 2.81 2.75
Less distributions:
Dividends from net investment income - -
Distributions from net realized gains (1.07) (2.56)
Total distributions (1.07) (2.56)
Net asset value, end of period $15.89 $14.15
Total return 20.23% 21.14%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $8,408 $6,494
Ratio of expenses to average net assets 0.90% 0.90%
Ratio of net investment income to average net
assets -0.43% 0.03%
Portfolio turnover rate 123.69% 84.39%
Average commission rate paid $0.0544 $0.0490
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 0.99% 0.99%
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Capital Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
Year ended December 31
1996 1995
Net asset value, beginning of period $13.55 $10.48
Income from investment operations:
Net investment income (loss) 0.03 0.02
Net realized and unrealized
gain (loss) on investments 1.68 3.56
Total from investment operations 1.71 3.58
Less distributions:
Dividends from net investment income (0.03) (0.01)
Distributions from net realized gains (1.27) (0.50)
Total distributions (1.30) (0.51)
Net asset value, end of period $13.96 $13.55
Total return 12.65% 33.99%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $6,677 $6,366
Ratio of expenses to average net assets 0.90% 0.88%
Ratio of net investment income to average net
assets 0.19% 0.11%
Portfolio turnover rate 54.11% 33.42%
Average commission rate paid $0.0564 $0.0562
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 0.99% 1.09%
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
-
Capital Series
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
Year ended December 31
1994
Net asset value, beginning of period $11.06
Income from investment operations:
Net investment income (loss) 0.01
Net realized and unrealized
gain (loss) on investments (0.46)
Total from investment operations (0.45)
Less distributions:
Dividends from net investment income (0.01)
Distributions from net realized gains (0.12)
Total distributions (0.13)
Net asset value, end of period $10.48
Total return -4.11%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $3,847
Ratio of expenses to average net assets 0.92%
Ratio of net investment income to average net
assets 0.09%
Portfolio turnover rate 55.99%
Average commission rate paid $0.0568
* Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 1.03%
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
International Equity Series
-
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
Year ended December 31
1998 1997
Net asset value, beginning of period $11.64 $11.82
Income from investment operations:
Net investment income 0.06 0.07
Net realized and unrealized gain
on investments 1.62 0.56
Total from investment operations 1.68 0.63
Less distributions:
Dividends from net investment income (0.06) (0.07)
Distributions from net realized gains (0.99) (0.74)
Total distributions (1.05) (0.81)
Net asset value, end of period $12.27 $11.64
Total return 13.37% 4.32%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $6,259 $4,771
Ratio of expenses to average net assets 1.20%* 1.20%
Ratio of net investment income to average net
assets 0.48% 0.57%
Portfolio turnover rate 119.77% 37.73%
Average commission rate paid $0.0474 $0.0380
*1995 amounts annualized from April 24, 1995.
-
** Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 1.47% 1.32%
See accompanying notes.
Canada Life of America Series Fund, Inc.
Financial Highlights
International Equity Series
-
The following financial highlights are computed
on the basis of a share outstanding throughout the period.
Year ended December 31
For the Period
April 24, 1995
(commencement
of operations) to
December 31
1996 1995
Net asset value, beginning of period $10.09 $10.00
Income from investment operations:
Net investment income 0.16 0.10
Net realized and unrealized gain
on investments 1.83 0.49
Total from investment operations 1.99 0.59
Less distributions:
Dividends from net investment income (0.16) (0.10)
Distributions from net realized gains (0.10) (0.40)
Total distributions (0.26) (0.50)
Net asset value, end of period $11.82 $10.09
Total return 19.44% 8.53% *
Ratios to average net assets/supplemental data:
Net assets, end of period (000's omitted) $3,305 $2,086
Ratio of expenses to average net assets 1.20% 1.20% *
Ratio of net investment income to average net
assets 1.44% 1.43% *
Portfolio turnover rate 56.28% 33.56%
Average commission rate paid $0.1961 $0.1951
*1995 amounts annualized from April 24, 1995.
** Ratio shown is after expense reimbursement.
Ratio of expenses to average net assets before
expense reimbursement 1.56% 1.06%
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Money Market Series Portfolio
December 31, 1998
Principal Market
Amount Value
U.S.Gov't & its Agencies - 64.5%
Fed.HomeLoanMtg.Corp.(4.900% due 02/18/99$ 1,350,000$ 1,341,098
Fed.HomeLoanMtg.Corp.(5.070% due 01/08/99) 1,100,000 1,098,898
Fed.HomeLoanMtg.Corp.(5.020% due 01/08/99) 1,000,000 999,000
Fed.Nat'lMtg.Assn.(5.080% due 01/05/99) 600,000 599,654
Fed.Nat'lMtg.Assn.(5.060% due 01/06/99) 3,900,000 3,897,217
7,935,867
Gov't of Canada - 2.2%
Canada Treas. Bills (5.080% due 03/18/99) 250,000 247,233
Canada Treas. Bills (4.850% due 03/18/99) 20,000 19,790
267,023
Promissory Note - 4.9%
Export Dev. Corp.(5.150% due 01/08/99) 600,000 599,384
Commercial Paper - 27.2%
AssociatesCorp of N.A.(5.290%due 01/07/99) 500,000 500,000
Exxon Asset Mgmt. Co.(5.340%due 01/08/99) 400,000 400,000
Ford Motor Credit Co.(5.159% due 01/08/99) 450,000 450,000
GE CapitalCorp.(5.164%due 01/15/99) 450,000 450,000
IBM Credit Corp. (5.136% due 01/25/99) 450,000 450,000
JohnDeereCapitalCorp.(5.187% due 01/25/99) 450,000 450,000
Norwest Financial Inc.(4.961%due 02/18/99) 300,000 300,000
Norwest Financial Inc.(4.910%due 02/22/99) 350,000 350,000
3,350,000
Total Securities
(identified cost - $12,152,274) 12,152,274
Other net assets - 1.2% 157,623
$ 12,309,897
See acCo.ing notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Managed Series Portfolio
December 31, 1998
Principal Market
Amount Value
SHORT TERM NOTES - 12.8%
Export Dev. Corp.(5.150% due 01/08/99) $ 300,000$ 299,693
Fed.HomeLoanBanks (4.300% due 01/04/99) 900,000 899,677
GE Capital Corp.(5.756% due 01/06/99) 500,000 500,000
Total Short Term Notes 1,699,370
BONDS - 37.4%
U.S.Gov't & its Agencies - 24.1%
U.S.Treas. Bonds (6.125% due 08/15/07) 200,000 218,625
U.S.Treas. Bonds (5.750% due 04/30/03) 260,000 270,563
Fed.HomeLoanBanks (6.500% due 01/07/08) 250,000 250,156
Fed.HomeLoanBanks (6.100% due 12/24/07) 200,000 200,500
Fed.HomeLoanBanks (7.024% due 09/10/07) 125,000 126,315
Fed.HomeLoanBanks (6.810% due 08/20/07) 50,000 50,351
Fed.HomeLoanMtg.Corp.(7.500% due 02/01/28) 73,809 75,862
Fed.HomeLoanMtg.Corp.(6.500% due 12/01/27) 365,468 368,209
Fed.HomeLoanMtg.Corp.(6.500% due 02/01/18) 91,779 92,927
Fed.HomeLoanMtg.Corp.(7.500% due 12/01/16) 75,100 77,195
Fed.HomeLoanMtg.Corp.(7.585% due 09/19/06) 150,000 158,844
Fed.Nat'l Mtg.Assn.(6.500% due 01/01/28) 234,269 235,879
Fed.Nat'l Mtg.Assn.(6.500% due 03/01/18) 94,163 95,252
Fed.Nat'l Mtg.Assn.(6.500% due 02/01/18) 89,742 90,780
Fed.Nat'l Mtg.Assn.(7.000% due 02/25/13) 48,000 47,947
Fed.Nat'l Mtg.Assn.(7.070% due 10/24/06) 100,000 104,313
Gov't Nat'l Mtg.Assn.(7.000% due 09/15/27) 91,210 93,404
Gov't Nat'l Mtg.Assn.(7.000% due 10/15/25) 338,145 346,281
Gov't Nat'l Mtg.Assn.(8.000% due 06/15/24) 76,767 79,838
Gov't Nat'l Mtg.Assn.(8.000% due 05/15/24) 130,816 136,048
Gov't Nat'l Mtg.Assn.(8.000% due 05/15/24) 88,691 92,239
3,211,528
Corporate - 13.3%
AmericanGen.Fin.Corp.(5.750%due11/01/03) 250,000 250,687
Coca-Cola Ent. Inc.(6.950% due 11/15/26) 150,000 160,066
Comdisco Inc.(6.130% due 08/01/01) 250,000 248,817
GTE North Inc.(6.375% due 02/15/10) 250,000 266,958
Johnson & JohnsonInc.(8.720%due 11/01/24) 225,000 264,078
Lafarge Corp.(6.375% due 07/15/05) 250,000 256,752
Pacific Bell (6.125% due 02/15/08) 150,000 157,601
Virginia Elec.&Power(7.625% due 07/01/07) 150,000 170,564
1,775,523
Total Bonds 4,987,051
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Managed Series Portfolio (Continued)
December 31, 1998
Market
Shares Value
COMMON STOCKS - 54.9%
Broadcasting & Publishing - 2.1%
Advertising - 1.2%
WPP Group PLC - sponsored ADR 2,700$ 166,725
T.V. Broadcasting - 0.9%
Belo (A.H.) Corp. 5,700 113,644
Total Broadcasting & Publishing 280,369
Energy - 4.2%
Oil & Gas - 4.2%
British Petroleum Co. PLC - sponsored ADR 1,132 102,729
Burlington Resources Inc. 5,200 186,225
Texaco Inc. 2,770 146,463
Unocal Corp. 4,400 128,425
563,842
Finance - 10.8%
Banks - 3.8%
BankAmerica Corp. 2,610 156,926
Chase Manhattan Corp. 2,600 184,600
First Union Corp. 2,610 158,721
500,247
Credit & Other Finance - 6.1%
American Express Co. 1,300 132,925
Associates First Capital Corp. 4,120 174,585
Citigroup Inc. 3,500 173,250
Fed. Home Loan Mtg. Corp. 1,600 103,100
First Data Corp. 7,100 224,981
808,841
Insurance - 0.9%
Washington Mutual Inc. 3,200 122,200
Total Finance 1,431,288
Health - 7.4%
Drugs & Pharmaceuticals - 5.0%
American Home Products Corp. 3,900 219,619
Elan Corporation PLC - sponsored ADR 1,200 83,475
Eli Lilly & Co. 1,500 133,313
Watson Pharmaceuticals Inc. 3,700 232,638
669,045
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Managed Series Portfolio (Continued)
December 31, 1998
Market
Shares Value
Medical Instruments - 1.0%
Medtronic Inc. 1,800 133,650
Medical - Nursing Homes - 1.4%
HCR Manor Care Inc. 6,500 190,938
Total Health 993,633
Manufacturing - 5.4%
Cosmetics & Toiletries - 2.5%
Gillette Co. 3,900 188,419
Unilever N V - sponsored ADR 1,640 136,017
324,436
Industrial Machinery & Equipment - 1.8%
Applied Materials Inc. 2,800 119,525
Lear Corp. 3,100 119,350
238,875
Paper & Related Products - 1.1%
Mead Corp. 5,100 149,494
Total Manufacturing 712,805
Media & Leisure - 1.5%
Entertainment - 1.5%
Carnival Corp. 4,200 201,600
Pollution Control - 1.2%
Waste Management Inc. 3,300 153,863
Retail & Wholesale - 7.6%
Retail & Wholesale, Miscellaneous - 7.6%
Boots Company PLC (THE) - unsponsored ADR 4,600 157,017
Federated Department Stores Inc. 3,000 130,688
Hasbro Inc. 4,500 162,562
Nabisco Holdings Corp. 3,700 153,550
Pepsico Inc. 4,300 176,031
Rite Aid Corp. 4,700 232,944
1,012,792
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Managed Series Portfolio (Continued)
December 31, 1998
Market
Shares Value
Services - 2.0%
Consulting Services - 1.0%
Gartner Group Inc. 6,500 $ 138,125
Oil - Field Services - 1.0%
Halliburton Co. 4,300 127,387
Total Services 265,512
Technology - 11.6%
Computer & Office Equipment - 4.6%
Altera Corp. 2,400 146,100
Compusa Inc. 3,800 49,637
EMC Corp-Mass 1,700 144,500
Hewlett-Packard Co. 1,900 129,793
Xerox Corp. 1,200 141,600
611,630
Communication Equipment - 2.4%
AT&T Corp. 1,300 97,825
MCI Worldcom Inc. 3,092 221,851
319,676
Computer Software - 2.0%
Compuware Corp. 1,500 117,188
J.D. Edwards & Co. 5,400 153,225
270,413
Electronics - 1.1%
Texas Instruments Inc. 1,700 145,456
Medical Information Systems - 1.5%
HBO & Co. 6,800 195,075
Total Technology 1,542,250
Transportation - 1.1%
Road Transportation - 1.1%
CNF Transportation Inc. 3,900 146,494
Total Common Stocks 7,304,448
Total Securities
(identified cost - $13,122,918 ) 13,990,869
Other net liabilities - (5.1)% (682,315)
Total net assets 13,308,554
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Bond Series Portfolio
December 31, 1998
Principal Market
Amount Value
SHORT TERM NOTES - 10.2%
Canada Treasury (5.080% due 03/18/99 ) 200,000 197,845
Canada Treasury (5.130% due 01/08/99 ) 150,000 149,847
Canada Treasury (5.150% due 01/06/99 ) 85,000 84,937
ExportDevelopmentCorp.(5.150%due 01/08/99) 75,000 74,923
ExportDevelopmentCorp.(5.150%due 01/08/99) 400,000 399,593
Fed.HomeLoanBanks(4.300% due 01/04/99 ) 500,000 499,821
Fed.HomeLoanMtg.Corp.(5.070%due 01/08/99 ) 300,000 299,700
Total Short Term Notes 1,706,666
BONDS - 92.9%
U.S. Gov't & its Agencies - 76.8%
UnitedStatesofAmerica(5.500%due 08/15/28) 1,000,000 1,048,438
UnitedStatesofAmerica(6.000%due 02/15/26) 1,400,000 1,528,188
UnitedStatesofAmerica(6.125%due 08/15/07) 2,700,000 2,951,438
UnitedStatesofAmerica(6.500%due 08/15/05) 2,400,000 2,631,000
Fed.HomeLoanBanks (6.500% due 01/07/08) 250,000 250,156
Fed.HomeLoanBanks (6.100% due 12/24/07) 200,000 200,500
Fed.HomeLoanBanks (7.024% due 09/10/07) 125,000 126,315
Fed.HomeLoanBanks (6.810% due 08/20/07) 50,000 50,350
Fed.HomeLoanBanks (6.515% due 10/01/02) 250,000 252,489
Fed.HomeLoanMtg.Corp.(7.500% due 02/01/28) 73,809 75,862
Fed.HomeLoanMtg.Corp.(6.500% due 12/01/27) 365,468 368,209
Fed.HomeLoanMtg.Corp.(6.500% due 02/01/18) 91,779 92,927
Fed.HomeLoanMtg.Corp.(7.500% due 12/01/16) 86,641 89,058
Fed.HomeLoanMtg.Corp.(7.585% due 09/19/06) 150,000 158,844
Fed.HomeLoanMtg.Corp.(6.690% due 08/14/01) 200,000 201,990
Fed.Nat'l Mtg.Assn.(6.500% due 01/01/28) 234,269 235,879
Fed.Nat'l Mtg.Assn.(6.500% due 03/01/18) 94,163 95,252
Fed.Nat'l Mtg.Assn.(6.500% due 02/01/18) 89,742 90,780
Fed.Nat'l Mtg.Assn.(7.000% due 02/25/13) 48,000 47,947
Fed.Nat'l Mtg.Assn.(7.070% due 10/24/06) 100,000 104,313
Fed.Nat'l Mtg.Assn.(5.750% due 06/15/05) 749,000 777,507
Fed.Nat'l Mtg.Assn.(5.750% due 04/15/03) 807,000 829,694
Gov't Nat'l Mtg.Assn.(7.000% due 09/15/27) 91,210 93,404
Gov't Nat'l Mtg.Assn.(7.000% due 10/15/25) 211,341 216,426
Gov't Nat'l Mtg.Assn.(8.000% due 06/15/24) 76,767 79,838
Gov't Nat'l Mtg.Assn.(8.000% due 05/15/24) 130,816 136,048
Gov't Nat'l Mtg.Assn.(8.000% due 05/15/24) 88,691 92,239
12,825,091
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Bond Series Portfolio (Continued)
December 31, 1998
Principal Market
Amount Value
Corporate - 16.1%
AmericanGen.Fin.Corp.(5.750% due 11/01/03) 250,000 $ 250,687
Coca-Cola Ent. Inc. (6.950% due 11/15/26) 150,000 160,066
Comdisco Inc. (6.130% due 08/01/01) 250,000 248,817
ComedTrans.FundingTrust(5.440%due03/25/07) 250,000 250,846
GE CapitalMtg.Serv.Inc.(6.500%due04/25/08) 175,397 175,397
GTE North Inc. (6.375% due 02/15/10) 250,000 266,958
Johnson & JohnsonInc.(8.720%due 11/01/24) 225,000 264,078
Lafarge Corp. (6.375% due 07/15/05) 250,000 256,752
Pacific Bell (6.125% due 02/15/08) 150,000 157,600
Service Corp. Int'l (6.000% due 12/15/05) 250,000 249,573
VirginiaElec.&PowerCo.(7.625%due 07/01/07) 150,000 170,564
Walt Disney Co. (4.200% due 03/15/01) 250,000 246,236
2,697,574
Total Bonds 15,522,665
Total Securities
(identified cost - $16,861,337 ) 17,229,331
Other net liabilities - (3.1)% (523,713)
Total net assets $ 16,705,618
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Value Equity Series Portfolio
December 31, 1998
Market
Shares Value
COMMON STOCKS - 104.8%
Broadcasting & Publishing - 4.1%
Advertising - 2.4%
WPP Group PLC - sponsored ADR 6,60 407,550
T.V. Broadcasting - 1.7%
Belo (A.H.) Corp. 14,500 289,094
Total Broadcasting & Publishing 696,644
Energy - 8.0%
Oil & Gas - 8.0%
British Petroleum Co. PLC - sponsored ADR 2,724 247,203
Burlington Resources Inc. 12,200 436,913
Texaco Inc. 6,780 358,493
Unocal Corp. 10,500 306,468
1,349,077
Finance - 20.5%
Banks - 7.1%
BankAmerica Corp. 6,220 373,977
Chase Manhattan Corp. 6,200 440,200
First Union Corp. 6,150 373,997
1,188,174
Credit & Other Finance - 11.7%
American Express Co. 3,120 319,020
Associates First Capital Corp. 9,900 419,513
Citigroup Inc. 8,700 430,650
Fed. Home Loan Mtg. Corp. 4,000 257,750
First Data Corp. 17,100 541,856
1,968,789
Insurance - 1.7%
Washington Mutual Inc. 7,800 297,863
Total Finance 3,454,826
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Value Equity Series Portfolio (Continued)
December 31, 1998
Market
Shares Value
Health - 14.5%
Drugs & Pharmaceuticals - 9.8%
American Home Products Corp. 9,800 $ 551,862
Elan Corporation PLC - sponsored ADR 3,000 208,687
Eli Lilly & Co. 3,500 311,063
Watson Pharmaceuticals Inc. 9,100 572,163
1,643,775
Medical Instruments - 2.0%
Medtronic Inc. 4,580 340,065
Medical - Nursing Homes - 2.7%
HCR Manor Care Inc. 15,700 461,188
Total Health 2,445,028
Manufacturing - 10.2%
Cosmetics & Toiletries - 4.6%
Gillette Co. 9,400 454,138
Unilever N V - sponsored ADR 3,880 321,797
775,935
Industrial Machinery & Equipment - 3.5%
Applied Materials Inc. 7,000 298,813
Lear Corp. 7,500 288,750
587,563
Paper & Related Products - 2.1%
Mead Corp. 12,200 357,613
Total Manufacturing 1,721,111
Media & Leisure - 3.0%
Entertainment - 3.0%
Carnival Corp. 10,400 499,200
Pollution Control - 2.2%
Waste Management Inc. 7,900 368,338
Retail & Wholesale - 14.8%
Retail & Wholesale, Miscellaneous - 14.8%
Boots Company PLC (THE) - unsponsored ADR 11,600 395,957
Federated Department Stores Inc. 7,200 313,650
Hasbro Inc. 11,000 397,375
Nabisco Holdings Corp. 8,300 344,450
Pepsico Inc. 10,730 439,259
Rite Aid Corp. 12,000 594,750
2,485,441
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Value Equity Series Portfolio ( Continued)
December 31, 1998
Market
Shares Value
Services - 3.7%
Consulting Services - 1.9%
Gartner Group Inc. 15,200$ 323,000
Oil-Field Services - 1.8%
Halliburton Co. 10,000 296,250
Total Services 619,250
Technology - 21.7%
Computer & Office Equipment - 9.1%
Altera Corp. 5,800 353,075
Compusa Inc. 10,900 142,381
EMC Corp-Mass 4,100 348,500
Hewlett-Packard Co. 5,100 348,394
Xerox Corp. 2,900 342,200
1,534,550
Communication Equipment - 4.2%
AT&T Corp. 2,200 165,550
MCI Worldcom Inc. 7,645 548,528
714,078
Computer Software - 3.3%
Compuware Corp. 2,600 203,125
J.D. Edwards & Co. 12,600 357,525
560,650
Electronics - 2.2%
Texas Instruments Inc. 4,270 365,351
Medical Information Systems - 2.9%
HBO & Co. 16,900 484,818
Total Technology 3,659,447
Transportation - 2.1%
Road Transportation - 2.1%
CNF Transportation Inc. 9,400 353,087
Total Common Stocks 17,651,449
Total Securities
(identified cost - $15,966,844 ) 17,651,449
Other net liabilities - (4.8)% (822,113)
Total net assets $ 16,829,336
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Capital Series Portfolio
December 31, 1998
Market
Shares Value
COMMON STOCKS - 111.1%
Aerospace & Defense - 2.0%
Aerospace & Defense - 2.0%
General Dynamics Corp. 2,900 $ 170,013
Basic Industries - 2.6%
Chemicals & Plastics - 2.6%
Crompton & Knowles Corp. 5,000 103,437
Minerals Technologies Inc. 2,800 114,625
218,062
Energy - 2.8%
Electricity - 1.2%
AES Corp. 2,100 99,487
Oil & Gas - 1.6%
Anadarko Pertoleum Corp. 3,000 92,625
Enron Oil & Gas Co. 2,500 43,125
135,750
Total Energy 235,237
Finance - 9.1%
Credit & Other Finance - 1.1%
Southtrust Corporation 2,550 94,190
Insurance - 8.0%
Alfac Inc. 3,600 158,400
Nationwide Financial Services Inc. 2,900 149,894
Old Republic International Corp. 5,800 130,500
Progressive Corp. 700 118,562
Provident Companies Inc. 2,800 116,200
673,556
Total Finance 767,746
Health - 9.3%
Drugs & Pharmaceuticals - 6.9%
Alza Corp. 2,300 120,175
Biogen Inc. 1,700 141,100
Cardinal Health Inc. 1,800 136,575
Covance Inc. 6,200 180,575
578,425
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Capital Series Portfolio (Continued)
December 31, 1998
Market
Shares Value
Medical Facilities Management - 2.4%
Universal Health Sevices Inc. 2,700 140,062
Wellpoint Health Networks 700 60,900
200,962
Total Health 779,387
Investment - 2.8%
Telecom -TCI Ventures Group 10,200 240,338
Manufacturing - 17.4%
Batteries - 1.6%
Rayovac Corp. 5,200 138,775
Electronic - 4.4%
Applied Materials Inc. 2,000 85,375
Applied Power Inc. 7,500 283,125
368,500
Electronic - 4.4%
Molex Inc. 5,400 205,875
Home Decoration Products - 3.8%
Leggett & Platt Inc. 5,500 121,000
Newell Co. 4,900 202,125
323,125
Networking Products - 1.4%
Ascend Communications Inc. 1,800 118,350
Miscellaneous - 3.7%
Lancaster Colony Corp. 3,200 102,800
Pall Corp. 8,100 205,031
307,831
Total Manufacturing 1,462,456
Media & Leisure - 9.3%
Leisure Durables & Toys - 1.6%
Harley Davidson Inc. 2,900 137,387
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Capital Series Portfolio (Continued)
December 31, 1998
Market
Shares Value
Radio & Television - 7.7%
CBS Corp. 7,500 245,625
Chancellor Media Corp. 2,900 138,838
Infinity Broadcasting Corp. 9,600 262,800
647,263
Total Media & Leisure 784,650
Non-durables - 3.6%
Household Products - 3.6%
Clorox Co. 1,200 140,175
Dial Corp. 5,600 161,700
301,875
Retail & Wholesale - 16.4%
Apparel Stores - 1.8%
TJX Companies Inc. 5,100 147,900
Building Products - 2.6%
Fastenal Co. 2,300 101,200
Lowes Companies Inc. 2,300 117,731
218,931
Health - Related Products - 1.5%
General Nutrition Companies 7,900 128,375
Retail - Consumer Electronics - 2.5%
Circuit City Stores Inc. 4,200 209,738
Retail & Wholesale, Miscellaneous - 8.0%
Office Depot Inc. 7,800 288,113
Kroger Company 4,100 248,050
Ticketmaster Online-City Search Inc. 400 22,800
Williams-Sonoma Inc. 2,900 116,906
675,869
Total Retail & Wholesale 1,380,813
Services - 9.4%
Advertising - 4.5%
Interpublic Group of Companies Inc. 3,350 267,162
Snyder Communications Inc. 3,200 108,000
375,162
Schools - 2.9%
ITT Educational Services Inc. 7,100 241,400
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - Capital Series Portfolio (Continued)
December 31, 1998
Market
Shares Value
Funeral Service & Related Items - 2.0%
Service Corp. International 4,500 171,281
Total Services 787,843
Technology - 17.8%
Computer Services & Software - 16.7%
Cadence Design Systems Inc. 3,400 101,150
Compuware Corp. 1,700 132,813
Electronics Arts Inc. 4,300 241,338
Deluxe Corp. 5,400 197,438
Fiserv Inc. 2,900 149,169
Network Associates Inc. 1,950 129,188
Parametric Technology Corp. 10,400 170,300
Sterling Commerce Inc. 3,200 144,000
Veritas Software Corp. 2,300 137,856
1,403,252
Electronics - 1.1%
Maxim Integrated Products Inc. 2,100 91,743
Total Technology 1,494,995
Telecommunication Equipment - 6.5%
Telecommunication - Equipment - %
Century Telephone Enterprise 5,500 371,250
General Instrument Corp. 5,100 173,081
544,331
Transportation - 2.1%
Road Transportation - 2.1%
CNF Transportation Inc. 4,600 172,788
Total Common Stocks 9,340,534
Total Securities
( identified cost - $6,643,375 ) 9,340,534
Other net liabilities - (11.1)% (932,801)
Total net assets $ 8,407,733
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - International Equity Series Portfolio
December 31, 1998
Principal Market
Amount Value
BONDS - 1.8%
Corporate Convertible Bonds - 1.8%
Japan - 0.2%
Sony Corp. (1.400% due 03/31/05 ) JPY 1,000,000$ 10,514
Netherlands - 1.6%
TelefonicaEuropeNV(2.000%due 07/15/02)NLG 69,000 101,948
Total Bonds 112,462
COMMON STOCKS - 98.1% Shares
Argentina - 1.0%
YPF Sociedad Anonima - sponsored ADR 2,200 61,463
Australia - 3.3%
E.R.G. Ltd. 31,700 19,832
National Australia Bank Ltd. 5,008 75,564
News Corp. Ltd. - sponsored ADR Pfd 4,400 108,625
204,021
Brazil - 2.7%
Companhia Vale Do Rio Doce-sponsored ADR 4,300 55,172
Embratel Participacoes - sponsored ADR 8,200 114,288
169,460
Finland - 1.5%
Nokia Corp. - sponsored ADR 800 96,350
France - 12.5%
Axa-Uap - sponsored ADR 2,630 190,018
Clarins 1,336 95,739
Clarins - rights 4 55
Dexia France 830 127,932
Elf Aquitaine - sponsored ADR 2,100 118,913
Societe Generale de Paris 790 127,989
STMicroelectronics N.V. 1,560 121,778
782,424
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - International Equity Series Portfolio (Continued)
December 31, 1998
Market
Shares Value
Germany - 5.4%
Depfa Bank 1,400 122,724
Prosieben Media AG 1,400 67,078
SGL Carbon AG 550 33,320
Veba AG 1,900 112,595
335,717
Hong Kong - 3.7%
Esprit Holdings Ltd. 252,000 108,971
HSBC Holdings PLC 2,627 65,446
Television Broadcasts Ltd. 21,600 55,763
230,180
Italy - 5.8%
Banca Popolare Di Bergamo 4,900 119,152
Ente Nazionale Idrocarburi SPA-spons. ADR 1,100 74,525
Telecom Italia Mobile SPA 35,300 166,538
360,215
Japan - 21.4%
Autobacs Seven Co. Ltd. 1,800 60,640
Canon Inc. 5,000 107,051
DDI Corp. 37 137,770
Honda Motor Co. 3,000 98,673
Nomura Securities Co. Ltd. 8,000 69,860
NTT Mobile Communications 40 164,898
Promise Co. Ltd. 2,000 104,258
Rohm Co. 1,500 136,839
Shimano Inc. 5,000 129,215
Sony Corp. 1,500 109,445
Sony Music Entertainment Inc. 3,500 161,352
Takefuji Corp. 800 58,512
1,338,513
Malaysia - 0.8%
Telekom Malaysia 19,400 51,187
Netherlands - 8.7%
Akzo Nobel N.V.- sponsored ADR 2,200 98,175
ING Groep N.V. 2,400 146,430
Philips Electronics N.V. 2,800 189,525
Unilever N.V. 1,300 107,818
541,948
Norway - 0.5%
Saga Petroleum - sponsored ADR 3,700 35,612
South Korea - 3.6%
Korea Fund Inc. 7,700 71,225
Pohang Iron & Steel Co. Ltd. 1,133 72,927
Samsung Electronics 1,200 80,532
224,684
See accompanying notes.
Canada Life of America Series Fund, Inc.
Schedule of Investments - International Equity Series Portfolio (Continued)
December 31, 1998
Market
Shares Value
Spain - 1.2%
Corporacion Bancaria De Espana SA 1,46 75,190
Sweden - 1.6%
Ericsson (LM) Tel - sponsored ADR 4,400 105,325
Switzerland - 2.4%
Novartis AG 75 147,435
United Kingdom - 22.0%
Amvescap PLC 9,900 76,799
Bank of Ireland 5,600 122,708
Billiton PLC 20,300 40,277
Boots Company PLC (THE) 2,688 45,774
British Petroleum Company PLC - spon. ADR 556 50,457
Cable & Wireless Communications 13,600 124,226
Elan Corporation PLC - sponsored ADR 2,100 146,081
Glaxo Wellcome PLC - sponsored ADR 1,100 76,450
Lloyds TSB Group 8,700 123,762
Next PLC 15,700 129,041
Pearson PLC 4,200 83,366
Rolls-Royce PLC 23,175 96,011
United Utilities 4,405 61,051
Vodafone Group PLC - sponsored ADR 600 96,675
WPP Group PLC - sponsored ADR 1,700 104,975
1,377,653
Total Common Stocks 6,137,377
Total Securities
(identified cost - $5,762,532 ) 6,249,839
Other net assets - 0.1% 9,218
Total net assets 6,259,057
See accompanying notes.
February 23, 1999
Dear VariFund Investor:
Enclosed you will find the 1998 Annual Report for the Canada Life of America
Series Fund, Inc., (the "Fund"), which provides six underlying investment
choices within your VariFund( Variable Annuity. This report includes a
schedule of investments for each of the six Series of the Fund (Money Market,
Managed, Bond, Value Equity, International Equity and Capital) and the
financial statements for the Fund.
Strong U.S. economic fundamentals were sustained throughout 1998. Gross
Domestic Product increased 3.7%. Impressively, inflation was very contained,
in spite of budding wage pressures and a 25-year low in unemployment. The
consensus view is that the tight labor market and rising wages will continue
to be negated by the disinflationary affect of all of the global uncertainty
and an expected slowdown in U.S. economic growth.
U.S. financial markets enjoyed a very good year. To the surprise of many,
equity returns exceeded 20% for an unprecedented fourth consecutive year.
Excellent corporate profitability combined with declining interest rates were
again the favorable factors propelling prices. Fixed income instruments
enjoyed solid, if less spectacular, high single digit returns. Importantly
for bonds, the biggest surprise of the year was the absence of inflation.
VariFund investment results were mixed. International equity performance,
which had been excellent, was affected by the global turmoil. The Bond Fund
return was quite acceptable on an absolute basis, given our low risk profile.
The Value Equity fund had a difficult year given its underweight in both large
capitalization and technology stocks. The Managed Fund returns were
negatively affected by the performance of the equity portfolio. With U.S.
financial prices seemingly priced for perfection, we are committed to managing
your capital with an emphasis on safety.
The Canada Life of America Series Fund, Inc., and the Fixed Account option
provide you with 7 of the 23 investment options available in the VariFund
Variable Annuity for your financial retirement goals.
Sincerely,
R.E. Beettam
President
REB:me
Encl.
Performance Update - $10,000 Over Life of Fund
Canada Life of America Series Fund, Inc.: International Equity Series
/GRAPH/
$10,000 Over Life of Fund: Assume $10,000 was invested in the International
Equity Series Fund at inception, April 24, 1995. By December 31, 1998, the
value of the fund with dividends would have grown to $14,944.33 - a 49.44%
increase.
Average Annual Total Returns for the period ended December 31, 1998
One Year Five Year Life of Fund
CLASF International Equity 113.37% NA 11.50%
MSCI EAFE Index 20.33% NA 8.76%
Manager's Discussion:
The International Equity Series Fund gained 13.37% for the year versus a
benchmark return of 20.33% for the Morgan Stanley EAFE Index. The EAFE Index
outperformed because of its lack of exposure to emerging markets. Most of
these declined sharply in the second quarter in a consequence of the Asian
flu and then third quarter performance was hindered by the fallout from the
Russian devaluation.
Looking forward, we do not expect a global recession to occur in the near
term. We do believe, however, that corporate profit momentum will continue
to slow as the effects of the Asian and Latin American flue work their way
through the system.
* The total return and the change in value of the portfolio shown above
reflect the advisory fee and all other portfolio expenses and include the
reinvestment of dividends and capital gains, they do not reflect the charges
against the corresponding subaccounts under the applicable annuity policy.
The index referred to above is unmanaged and is used as a general measure of
market performance; they assume reinvestment of dividends and capital gains
and do not include any management or investment expenses. Figures for more
than one year assume a steady compounded rate of return and are not the
fund's year-by-year results, which fluctuated over the periods shown. The
life of fund figures are from commencement of operations, April 24, 1995.
The portfolio's investment return and net asset value per share will
fluctuate. Past performance is not a guarantee of future results.
Performance Update - $10,000 Over Life of Fund
Canada Life of America Series Fund, Inc.: Capital Series
$10,000 Over Life of Fund: Assume $10,000 was invested in the Capital Series
Fund at inception, April 23, 1993. By December 31, 1998, the value of the
fund with dividends would have grown to $23,690.91 - a 136.91% increase.
Average Annual Total Returns for the period ended December 31, 1998
One Year Five Year Life of Fund
CLASF Capital 20.23% 16.82% 16.36%
S&P 500 Index 28.52% 24.10% 18.59%
Russell 2000 Index -2.60% 11.90% 13.23%
Manager's Discussion:
The economic expansion continued in 1998, supporting earnings and low
interest rates. While the financial markets responded reaching new highs,
large-capitalization and technology stocks were the primary beneficiaries of
the ideal economic background. Despite high valuations, investors moved more
assets into large-caps due to the liquidity found there. This trend was only
reinforced by the continuing global uncertainty. While mid-capitalization
stocks did not experience the same run-up in valuations as was found among
their large-cap counterparts, they still performed well for the year.
Going forward, the valuations and growth opportunities found in mid-cap
stocks still offer significant value relative to large-cap stocks. As mid-
cap companies tend to have a greater portion of operations linked to the
domestic markets, they are less exposed to the eventual repercussions of the
global financial crisis than large multinational companies. We believe that
this difference in international exposure, combined with more attractive
valuations and greater future earnings growth potential, could attract
investor attention to mid-cap stocks in 1999.
* The total return and the change in value of the portfolio shown above
reflect the advisory fee and all other portfolio expenses and include the
reinvestment of dividends and capital gains, they do not reflect the charges
against the corresponding subaccounts under the applicable annuity policy.
The indexes referred to above are unmanaged and are used as a general measure
of market performance; they assume reinvestment of dividends and capital
gains and do not include any management or investment expenses. Figures for
more than one year assume a steady compounded rate of return and are not the
fund's year-by-year results, which fluctuated over the periods shown. The
life of fund figures are from commencement of operations, April 23, 1993.
The portfolio's investment return and net asset value per share will
fluctuate. Past performance is not a guarantee of future results.
Performance Update - $10,000 Over Life of Fund
Canada Life of America Series Fund, Inc.: Value Equity Series
/GRAPH/
$10,000 Over Life of Fund: Assume $10,000 was invested in the Value Equity
Series Fund at inception, December 4, 1989. By December 31, 1998, the value
of the fund with dividends would have grown to $ 26,123.82- a 161.24%
increase.
Average Annual Total Returns for the period ended December 31, 1998
One Year Five Year Life of Fund
CLASF Value Equity 2.81% 11.98% 11.16%
S & P 500 Index 28.52% 24.10% 17.84%
Manager's Discussion:
In 1998, the Value Equity Series Fund returned 2.81% for the year. It was a
disappointing performance. Our investment approach of looking for high
quality middle capitalization companies could not keep up with the
performance of large capitalization stocks.
The S&P 500 continued to sell at unprecedented levels relative to dividends,
operating earnings, net asset value, and gross national product. We believe
that caution is warranted buying shares of companies selling at significant
discounts to intrinsic value should serve us well in such an environment.
* The total return and the change in value of the portfolio shown above
reflect the advisory fee and all other portfolio expenses and include the
reinvestment of dividends and capital gains, they do not reflect the charges
against the corresponding subaccounts under the applicable annuity policy.
The index referred to above is unmanaged and is used as a general measure of
market performance; they assume reinvestment of dividends and capital gains
and do not include any management or investment expenses. Figures for more
than one year assume a steady compounded rate of return and are not the
fund's year-by-year results, which fluctuated over the periods shown. The
life of fund figures are from commencement of operations, December 4, 1989.
The portfolio's investment return and net asset value per share will
fluctuate. Past performance is not a guarantee of future results.
Performance Update - $10,000 Over Life of Fund
Canada Life of America Series Fund, Inc.: Bond Series
/GRAPH/
$10,000 Over Life of Fund: Assume $10,000 was invested in the Bond Series
Fund at inception, December 4, 1989. By December 31, 1998, the value of the
fund with dividends would have grown to $19,924.36 - a 99.24% increase.
Average Annual Total Returns for the period ended December 31, 1998
One Year Five Year Life of Fund
CLASF Bond 9.00% 6.70% 7.89%
Lehman Brothers G/C Bond Index 9.47% 7.30% 8.74%
Manager's Discussion:
In 1998 total return for the Bond Series was 9.00%. This return lagged the
benchmark, Lehman Brothers Government Corporate Bond Index, which posted a
9.47% return for the twelve months ending December 31.
The year 1998 was dominated by volatility. As global events caused turmoil
in international and domestic equity markets, bonds performed well.
Disinflation and deflation were topics of discussion as problems in Indonesia
caused other Asian economies to falter. Other countries with persistent
problems throughout the year included Japan, Russia, Brazil, Venezuela and
China.
We continue to hold high quality liquid assets. These should outperform, in
either an economic slowdown or a liquidity flight to quality.
* The total return and the change in value of the portfolio shown above
reflect the advisory fee and all other portfolio expenses and include the
reinvestment of dividends and capital gains, they do not reflect the charges
against the corresponding subaccounts under the applicable annuity policy.
The index referred to above is unmanaged and is used as a general measure of
market performance; they assume reinvestment of dividends and capital gains
and do not include any management or investment expenses. Figures for more
than one year assume a steady compounded rate of return and are not the
fund's year-by-year results, which fluctuated over the periods shown. The
life of fund figures are from commencement of operations, December 4, 1989.
The portfolio's investment return and net asset value per share will
fluctuate. Past performance is not a guarantee of future results.
Performance Update - $10,000 Over Life of Fund
Canada Life of America Series Fund, Inc.: Managed Series
/GRAPH/
$10,000 Over Life of Fund: Assume $10,000 was invested in the Managed Series
Fund at inception, December 4, 1989. By December 31, 1998, the value of the
fund with dividends would have grown to $23,371.71 - a 133.72% increase.
Average Annual Total Returns for the period ended December 31, 1998
One Year Five Year Life of Fund
CLASF Managed 5.15% 9.72% 9.80%
S & P 500 Index 28.52% 24.10% 17.84%
Lehman Brothers G/C Bond Index 9.47% 7.30% 8.74%
Manager's Discussion:
During 1998, the Managed Series appreciated 5.15%, a modest result given our
low risk profile. To the surprise of most, U.S. equity returns exceeded 20%
for an unprecedented fourth consecutive year. Valuations appeared expensive
in early 1998 but continued to climb throughout the year. For the fourth
straight year big stocks topped small stocks.
Bonds enjoyed solid returns in 1998. Our equity performance was hurt by our
under exposure to large capitalization and technology stocks. We are neutral
vis-.-vis our benchmark.
* The total return and the change in value of the portfolio shown above
reflect the advisory fee and all other portfolio expenses and include the
reinvestment of dividends and capital gains, they do not reflect the charges
against the corresponding subaccounts under the applicable annuity policy.
The indexes referred to above are unmanaged and are used as a general measure
of market performance; they assume reinvestment of dividends and capital
gains and do not include any management or investment expenses. Figures for
more than one year assume a steady compounded rate of return and are not the
fund's year-by-year results, which fluctuated over the periods shown. The
life of fund figures are from commencement of operations, December 4, 1989.
The portfolio's investment return and net asset value per share will
fluctuate. Past performance is not a guarantee of future results.
