<PAGE>
Value Equity, Managed, and International Equity Portfolios of
Canada Life of America Series Fund, Inc.
Supplement dated March 12, 1999
to
Prospectus dated May 1, 1998
The following information supplements and amends the nonfundamental investment
policies of International Equity Portfolio (the "Portfolio") as described in
"Investment Objectives, Policies And Risks" in the prospectus:
In seeking to limit risks, the Portfolio limits its exposure:
. to a single industry group to 25% of its total assets
. to a single country, excluding the United Kingdom and Japan, to 25% of
its total assets
. by normally holding investments in at least 4 countries and at least 40
different companies
. by investing in a minimum of at least 5 to 8 different industry groups
as defined by Morgan Stanley
The following information supplements and amends the information in "Investment
Objectives, Policies And Risks--Managed Portfolio", "--Value Equity Portfolio",
and "--International Equity Portfolio" in the prospectus:
Effective March 5, 1999, Laketon Investment Management Ltd. ("Laketon") has
merged with INDAGO Capital Management Inc. ("INDAGO") and, subject to
shareholder approval, will provide investment subadvisory services for
Value Equity, International Equity and the equity portion of Managed
Portfolios under the same terms and at the same fee rate as the current
subadvisory agreements with INDAGO. Until that time, the Board of
Directors has approved Laketon to provide subadvisory services for the
Portfolios and will reimburse Laketon for its marginal cost in providing
such services.
Lance Speck, CFA, is a principal and portfolio manager of Laketon. In his
position as Global Equity Team Leader, Mr. Speck is responsible for the
day-to-day investment management of Value Equity, International Equity and
the equity portion of Managed Portfolios, as well as other global equity
specialist accounts and the global equities managed on behalf of balanced
accounts managed by Laketon. Other portfolio managers on the Global Equity
Team include Mary Throop, CFA and Peter Walter, CFA.
The following information supplements and amends the information in "Investment
Objectives, Policies And Risks-- Value Equity Portfolio, Managed Portfolio and
International Equity Portfolio Sub-Adviser" in the prospectus:
Value Equity Portfolio, Managed Portfolio and International Equity
Portfolio Sub-Adviser
Effective March 5, 1999, Laketon has merged with INDAGO and serves as the
Subadviser of Value Equity, International Equity and the equity portion of
Managed Portfolios. Laketon's address is 130 Adelaide Street West, Suite
3000, Toronto, Ontario, Canada, M5H 3P5. Under subadvisory agreements with
the Investment Adviser, Laketon's 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.
Subject to shareholder approval of the subadvisory agreements, Laketon will
be entitled to advisory fees at the effective annual rates of 0.25% of the
average daily net assets of Value Equity Portfolio and the equity portion
of Managed Portfolio and 0.30% of the average daily net assets of
International Equity.
Laketon was incorporated on September 14, 1979. Laketon also serves as
manager of assets of The Canada Life Assurance Company, the aggregate
assets of which were approximately US $3.9 billion as of December 31, 1998.
Laketon also provides investment management to individual and institutional
accounts having a December 31, 1998 value of approximately US $1.9 billion.
