<PAGE>
August, 1998
Dear Valued Trillium(R) Policyowner:
Enclosed for your review is the Trillium Semi-Annual Report for the period
ending June 30, 1998. We encourage you to review this information and refer to
it as needed throughout the year.
For your convenience, please use the "tear-off" below to make additional
payments to your Trillium policy. For other information, please contact your
registered representative.
Thank you for selecting Trillium.
Sincerely,
Ronald E. Beettam, President
Canada Life Insurance Company of America
- --------------------------------------------------------------------------------
POLICYOWNER(S): ____________________________ POLICY NUMBER: _______________
(PRINT NAME(S))
IF YOU ARE CHANGING YOUR ALLOCATION, PLEASE COMPLETE THE FOLLOWING:
_____ THIS PAYMENT ONLY
_____ THIS PAYMENT AND ALL FUTURE PAYMENTS
---
_____ RE-ALLOCATE ALL CURRENT ASSETS
<TABLE>
<S> <C>
(21) Cash Management ____% (22) INCOME ____%
(23) Bond ____% (24) COMMON STOCK ____%
(25) Capital ____% (26) INTERNATIONAL ____%
(27) Communication & Information ____% (28) GLOBAL GROWTH OPPORTUNITY ____%
(29) Global Smaller Companies ____% (41) FRONTIER ____%
(42) High Yield Bond ____% (43) GLOBAL TECHNOLOGY ____%
(44) Small-Cap Value ____% (45) LARGE-CAP VALUE ____%
(201) Fixed Account (1 year)* ____% (203) FIXED ACCOUNT (3 YEAR)* ____%
(205) Fixed Account (5 year)* ____% (207) FIXED ACCOUNT (7 YEAR)* ____%
(210) Fixed Account (10 year)* ____%
</TABLE>
* PLEASE CHECK FOR STATE AVAILABILITY.
TOTAL MUST EQUAL 100%. PLEASE MAKE CHECKS PAYABLE TO CANADA LIFE INSURANCE
COMPANY OF AMERICA.
DATE: _______________ POLICYOWNER'S SIGNATURE:_________________________
Variable annuity policies issued by Canada Life Insurance Company of
America. Offered by Canada Life of America Financial Services, Inc., Member,
NASD
<PAGE>
MID-YEAR REPORT
TRILLIUM
A VARIABLE ANNUITY
June 30, 1998
<PAGE>
TOTAL RETURNS*
For the Six Months Ended June 30, 1998
SUB-ACCOUNTS:
<TABLE>
<S> <C>
Bond ................................................................. 3.09%
Capital .............................................................. 13.13
Cash Management ...................................................... 1.97
Common Stock ......................................................... 12.36
Communications and Information ....................................... 12.36
Frontier ............................................................. 7.68
Global Growth Opportunities .......................................... 18.49
Global Smaller Companies ............................................ 15.37
Global Technology .................................................... 20.69
International ........................................................ 17.28
High-Yield Bond ...................................................... 5.08
Income ............................................................... 4.92
Large-Cap Value ...................................................... (1.03)**
Small-Cap Value ...................................................... (8.72)**
</TABLE>
- -------------
* Total returns of the Sub-Accounts are based on the performance of the
Seligman Portfolios, Inc., the underlying investment vehicle for the Canada
Life of America Variable Annuity Account 2 (Variable Annuity Account 2),
less current fees and charges. The returns exclude any contingent deferred
sales charge ("CDSC") applicable to the Variable Annuity Account 2, and are
not annualized.
** From commencement of operations, May 1, 1998.
<PAGE>
SELIGMAN PORTFOLIOS, INC.
THE UNDERLYING INVESTMENT VEHICLE FOR
TRILLIUM
A VARIABLE
ANNUITY
July 31, 1998
Dear Contract Owner:
J. & W. Seligman & Co. Incorporated, as Manager of Seligman Portfolios,
Inc. ("the Fund"), the underlying investment vehicle for your Trillium Variable
Annuity, and Canada Life Insurance Company of America, as issuer of The Canada
Life of America Variable Annuity Account 2 (the "Variable Account"), are pleased
to provide the enclosed unaudited financial statements and accompanying
information for the six months ended June 30, 1998.
The US economy continued to grow throughout the first half of the year,
bringing the expansion into an unprecedented eighth year. Inflation remained
low, wages rose, consumer spending was strong, and the labor market remained
tight. Further, the supply of consumer goods kept pace with demand, which helped
the economic expansion remain balanced.
Within the US equity market, the dominant investment trend in the first
half of 1998 continued to be a "flight to quality." Investors stressed the
importance of quality, liquidity, and safety. Consequently, the market remained
"narrow," with demand for large-capitalization growth stocks far outpacing
demand for their value counterparts, as well as for small-capitalization and
mid-capitalization stocks. The market effectively became two-tiered, as the 30
largest companies in the S&P 500 accounted for more than half of its gains.
Within the fixed-income markets, the Asian financial crisis began to favorably
impact the bond market, as both foreign and domestic investors sought the safety
and quality of US Treasury securities. This sent yields down and prices up.
Further, the potential for slower economic growth, coupled with the Asian
crisis, effectively caused the Federal Reserve Board to leave short-term
interest rates unchanged in the first half of the year. The 30-year US Treasury
bond yield finished the period at 5.63% on June 30, down from 5.92% on December
31, 1997.
Looking ahead, while the Asian financial crisis only modestly affected the
US economy in the first half of 1998, we believe its full impact is yet to come.
This leads us to believe that the current benign business environment could
become less stable. Some early warning economic indicators started flashing
cautionary signals toward the end of the second quarter as the economy began to
decelerate. US corporate profits were being pressured. Although the basic
fundamental case remains positive, investor expectations, at least for the short
term, seem to be on the high side.
Internationally, the most important factor influencing the markets has
been the Asian financial crisis. Thus far, events in the region have not
impacted the global economy to the degree that was originally anticipated.
Growth continues to be strong in Europe and in select emerging markets. Some
industrialized nations have even derived unexpected benefits from the crisis in
the form of less expensive imported goods. However, the Asian crisis is not over
and, more important, Japan has experienced no economic growth this year --
though there is hope that the announced government stimulus package will be
effective. Nonetheless, we believe the steps being taken by the governments
should, in the long run, restore their countries' financial health, and that the
economies and stock markets should return to growth in the longer term.
Thank you for your continued interest in Trillium. We look forward to
serving your investment needs in the many years to come.
Respectfully,
/s/ Ronald E. Beettam /s/ William C. Morris
Ronald E. Beettam William C. Morris
President Chairman
Canada Life Insurance Company of America J. & W. Seligman & Co. Incorporated
1
<PAGE>
CANADA LIFE OF AMERICA VARIABLE ANNUITY ACCOUNT 2
- ----------------------------------------------------------------------------
STATEMENT OF NET ASSETS (unaudited) June 30, 1998
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH COMMON COMMUNICATIONS
BOND CAPITAL MANAGEMENT STOCK AND INFORMATION FRONTIER
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS:
Investment in Seligman Portfolios, Inc.,
at market value (see Note 3 for
cost values)........................ $4,660,171 $17,650,679 $7,740,076 $39,022,162 $84,490,413 $38,292,847
Due to Canada Life Insurance
Company of America (Note 6)......... (8,858) (37,358) (91,715) (80,863) (51,970) (80,363)
---------- ----------- ---------- ---------- ----------- -----------
NET ASSETS............................. $4,651,313 $17,613,321 $7,648,361 $38,941,299 $84,438,443 $38,292,847
========== =========== ========== =========== =========== ===========
NET ASSETS ATTRIBUTABLE TO:
Policyholders' liability reserve....... $4,651,313 $17,613,321 $7,648,361 $38,941,299 $84,438,443 $38,212,484
---------- ----------- ---------- ---------- ----------- -----------
NET ASSETS............................. $4,651,313 $17,613,321 $7,648,361 $38,941,299 $84,438,443 $38,212,484
========== =========== ========== =========== =========== ===========
NUMBER OF UNITS OUTSTANDING............ 276,231 505,357 5,375,570 1,058,190 4,116,619 1,837,121
========== =========== ========== =========== =========== ===========
NET ASSET VALUE PER UNIT............... $16.8385 $34.8532 $1.4228 $36.7999 $20.5116 $20.8002
========== =========== ========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL GLOBAL
GROWTH SMALLER GLOBAL HIGH-YIELD
OPPORTUNITIES COMPANIES TECHNOLOGY INTERNATIONAL BOND INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS:
Investment in Seligman Portfolios, Inc.,
at market value (see Note 3 for
cost values)........................ $7,324,119 $22,305,160 $4,643,560 $10,160,494 $29,965,761 $9,041,763
Due to Canada Life Insurance
Company of America (Note 6)......... (15,434) (46,148) (10,056) (21,092) (60,754) (18,265)
---------- ----------- ---------- ---------- ----------- -----------
NET ASSETS............................. $7,308,685 $22,259,012 $4,633,504 $10,139,402 $29,905,007 $9,023,498
---------- ----------- ---------- ----------- ----------- -----------
NET ASSETS ATTRIBUTABLE TO:
Policyholders' liability reserve....... $7,308,685 $22,259,012 $4,633,504 $10,139,402 $29,905,007 $9,023,498
---------- ----------- ---------- ----------- ----------- -----------
NET ASSETS............................. $7,308,685 $22,259,012 $4,633,504 $10,139,402 $29,905,007 $9,023,498
========== =========== ========== =========== =========== ===========
NUMBER OF UNITS OUTSTANDING............ 566,837 1,361,782 316,960 623,169 2,093,748 400,966
========== =========== ========== =========== =========== ===========
NET ASSET VALUE PER UNIT............... $12.8938 $16.3455 $14.6186 $16.2707 $14.2830 $22.5044
========== =========== ========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
LARGE-CAP SMALL-CAP
VALUE VALUE SUB-ACCOUNTS
SUB-ACCOUNT SUB-ACCOUNT COMBINED
----------- ----------- -----------
<S> <C> <C> <C>
NET ASSETS:
Investment in Seligman Portfolios, Inc.,
at market value (see Note 3 for
cost values)......................... $972,487 $846,595 $277,116,287
Due to Canada Life Insurance
Company of America (Note 6)......... (7,131) (950) (530,957)
-------- -------- ------------
NET ASSETS............................. $965,356 $845,645 $276,585,330
======== ======== ============
NET ASSETS ATTRIBUTABLE TO:
Policyholders' liability reserve....... $965,356 $845,645 $276,585,330
-------- -------- ------------
NET ASSETS............................. $965,356 $845,645 $276,585,330
======== ======== ============
NUMBER OF UNITS OUTSTANDING............ 97,543 92,638 18,722,731
======== ======== ============
NET ASSET VALUE PER UNIT............... $9.8967 $9.1285
======== ========
</TABLE>
- ----------------------
See accompanying notes.
2
<PAGE>
----------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited) For the Six Months Ended June 30, 1998
----------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH COMMON COMMUNICATIONS
BOND CAPITAL MANAGEMENT STOCK AND INFORMATION FRONTIER
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Dividend and capital
gain distributions.................. $ -- $ -- $213,363 $ -- $ -- $ --
Less mortality and expense risk
charges (Note 6).................... 32,004 112,583 55,998 252,344 568,286 260,968
-------- ---------- -------- ---------- ---------- ----------
NET INVESTMENT INCOME (LOSS)........... (32,004) (112,583) 157,365 (252,344) (568,286) (260,968)
-------- ---------- -------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments 16,646 528,909 -- 95,365 121,752 648,623
Net unrealized appreciation (depreciation)
of investments...................... 163,273 1,575,246 -- 4,273,113 9,761,483 2,239,378
-------- ---------- -------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS...................... 179,919 2,104,155 -- 4,368,478 9,883,235 2,888,001
-------- ---------- -------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS.... $147,915 $1,991,572 $157,365 $4,116,134 $9,314,949 $2,627,033
======== ========== ======== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL GLOBAL
GROWTH SMALLER GLOBAL HIGH-YIELD
OPPORTUNITIES COMPANIES TECHNOLOGY INTERNATIONAL BOND INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Dividend and capital
gain distributions.................. $ -- $ -- $ -- $ -- $ -- $ --
Less mortality and expense risk
charges (Note 6).................... 41,966 149,404 28,091 67,202 185,366 60,988
-------- ---------- -------- ---------- ---------- --------
NET INVESTMENT INCOME (LOSS)........... (41,966) (149,404) (28,091) (67,202) (185,366) (60,988)
-------- ---------- -------- ---------- ---------- --------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments 648,623 90,527 235,725 79,726 180,233 158,283
Net unrealized appreciation
(depreciation) of investments. 865,912 2,866,912 642,364 1,386,090 1,292,467 446,877
-------- ---------- -------- ---------- ---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS...................... 956,439 3,102,637 722,090 1,566,323 1,450,750 464,191
-------- ---------- -------- ---------- ---------- --------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS... $914,473 $2,953,233 $693,999 $1,499,121 $1,265,384 $403,203
======== ========== ======== ========== ========== ========
</TABLE>
<TABLE>
<CAPTION>
LARGE-CAP SMALL-CAP
VALUE VALUE SUB-ACCOUNTS
SUB-ACCOUNT SUB-ACCOUNT COMBINED
----------- ----------- -----------
<S> <C> <C> <C>
NET INVESTMENT INCOME:
Dividend and capital
gain distributions.................. $ -- $ -- $ 213,363
Less mortality and expense risk
charges (Note 6).................... 1,120 1,000 1,817,320
------- -------- -----------
NET INVESTMENT INCOME (LOSS)........... (1,120) (1,000) (1,603,957)
------- -------- -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments 9 (509) 2,172,603
Net unrealized appreciation (depreciation)
of investments...................... (3,652) (34,322) 25,475,141
------- -------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS...................... (3,643) (34,831) 27,647,744
------- -------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS.... $(4,763) $(35,831) $26,043,787
======= ======== ===========
</TABLE>
- --------------------------------------------------------------------------------
* For the period May 1, 1998 (commencement of operations) to June 30, 1998.
See accompanying notes.
3
<PAGE>
CANADA LIFE OF AMERICA VARIABLE ANNUITY ACCOUNT 2
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOND CAPITAL CASH MANAGEMENT
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------- ------------------------- ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)........ $ (32,004) $ 194,351 $ (112,583) $ 798,930 $ 157,365 $ 304,525
Net realized gain (loss)
on investments .................. 16,646 8,066 528,909 458,289 -- --
Net unrealized appreciation/
depreciation of investments...... 163,273 66,018 1,575,246 899,608 -- --
---------- ---------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS........ 147,915 268,435 1,991,572 2,156,827 157,365 304,525
---------- ---------- ----------- ----------- ---------- ----------
CAPITAL TRANSACTIONS:
Net increase (decrease) from
unit transactions (Note 5)....... (450,541) 2,029,015 635,839 3,428,077 107,429 (1,162,636)
---------- ---------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE)
IN NET ASSETS ARISING FROM
CAPITAL TRANSACTIONS............. (450,541) 2,029,015 635,839 3,428,077 107,429 (1,162,636)
---------- ---------- ----------- ----------- ---------- ----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.................... (302,626) 2,297,450 2,627,411 5,584,904 264,794 (858,111)
Net Assets, Beginning of Period..... 4,953,939 2,656,489 14,985,910 9,401,006 7,383,567 8,241,678
---------- ---------- ----------- ----------- ---------- ----------
NET ASSETS, END OF PERIOD........... $4,651,313 $4,953,939 $17,613,321 $14,985,910 $7,648,361 $7,383,567
========== ========== =========== =========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
COMMUNICATIONS AND
COMMON STOCK INFORMATION
SUB-ACCOUNT SUB-ACCOUNT
----------------------- ---------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)........ $ (252,344) $ 4,565,796 $ (568,286) $17,976,778
Net realized gain (loss)
on investments .................. 95,365 488,619 121,752 2,491,942
Net unrealized appreciation/
depreciation of investments...... 4,273,113 (535,131) 9,761,483 (8,926,535)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS........ 4,116,134 4,519,284 9,314,949 11,542,185
----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Net increase (decrease) from
unit transactions (Note 5)....... 2,316,972 7,593,933 1,123,546 8,108,126
----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS ARISING FROM
CAPITAL TRANSACTIONS............. 2,316,972 7,593,933 1,123,546 8,108,126
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.................... 6,433,106 12,113,217 10,438,495 19,650,311
Net Assets, Beginning of Period..... 32,508,193 20,394,976 73,999,948 54,349,637
----------- ----------- ----------- -----------
NET ASSETS, END OF PERIOD........... $38,941,299 $32,508,193 $84,438,443 $73,999,948
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL GROWTH
FRONTIER OPPORTUNITIES
SUB-ACCOUNT SUB-ACCOUNT
----------------------- -------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97
---------- ---------- --------- ----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)........ $ (260,968) $ 2,671,617 $ (41,966) $ 2,289
Net realized gain (loss)
on investments .................. 648,623 878,611 90,527 77,328
Net unrealized appreciation/
depreciation of investments...... 2,239,378 500,110 865,912 153,700
----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS........ 2,627,033 4,050,338 914,473 233,317
----------- ----------- ---------- ----------
CAPITAL TRANSACTIONS:
Net increase (decrease) from
unit transactions (Note 5)....... 697,326 4,928,379 1,634,854 3,233,258
----------- ----------- ---------- ----------
NET INCREASE (DECREASE)
IN NET ASSETS ARISING FROM
CAPITAL TRANSACTIONS............. 697,326 4,928,379 1,634,854 3,233,258
----------- ----------- ---------- ----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS.................... 3,324,359 8,978,717 2,549,327 3,466,575
Net Assets, Beginning of Period..... 34,888,125 25,909,408 4,759,358 1,292,783
----------- ----------- ---------- ----------
NET ASSETS, END OF PERIOD........... $38,212,484 $34,888,125 $7,308,685 $4,759,358
=========== =========== ========== ==========
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
GLOBAL SMALLER GLOBAL
COMPANIES TECHNOLOGY INTERNATIONAL
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------ ------------------------ -------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
6/30/98 ENDED 6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97 (unaudited) 12/31/97
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)........ $ (149,404) $ 180,288 $ (28,091) $ 412,115 $ (67,202) $ 179,009
Net realized gain (loss)
on investments .................. 235,725 265,007 79,726 190,061 180,233 251,193
Net unrealized appreciation/
depreciation of investments...... 2,866,912 (90,117) 642,364 (324,750) 1,386,090 73,912
----------- ----------- ---------- ---------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS........ 2,953,233 355,178 693,999 277,426 1,499,121 504,114
----------- ----------- ---------- ---------- ----------- ----------
CAPITAL TRANSACTIONS:
Net increase (decrease) from
unit transactions (Note 5)....... (245,526) 2,874,836 646,005 1,899,573 (165,176) 1,173,767
----------- ----------- ---------- ---------- ----------- ----------
NET INCREASE (DECREASE)
IN NET ASSETS ARISING FROM
CAPITAL TRANSACTIONS............. (245,526) 2,874,836 646,005 1,899,573 (165,176) 1,173,767
----------- ----------- ---------- ---------- ----------- ----------
TOTAL INCREASE IN NET ASSETS........ 2,707,707 3,230,014 1,340,004 2,176,999 1,333,945 1,677,881
Net Assets, Beginning of Period..... 19,551,305 16,321,291 3,293,500 1,116,501 8,805,457 7,127,576
----------- ----------- ---------- ---------- ----------- ----------
NET ASSETS, END OF PERIOD........... $22,259,012 $19,551,305 $4,633,504 $3,293,500 $10,139,402 $8,805,457
=========== =========== ========== ========== =========== ==========
</TABLE>
- -----------------------------
* Commencement of operations.
See accompanying notes.
<TABLE>
<CAPTION>
HIGH-YIELD BOND INCOME
SUB-ACCOUNT SUB-ACCOUNT
------------------------ ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
6/30/98 ENDED 6/30/98 ENDED
(unaudited) 12/31/97 (unaudited) 12/31/97
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)........ $ (185,366) $ 1,492,267 $ (60,988) $ 690,186
Net realized gain (loss)
on investments .................. 158,283 390,673 17,314 77,550
Net unrealized appreciation/
depreciation of investments...... 1,292,467 176,658 446,877 165,357
----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS........ 1,265,384 2,059,598 403,203 933,093
----------- ----------- ---------- ----------
CAPITAL TRANSACTIONS:
Net increase (decrease) from
unit transactions (Note 5)....... 5,923,800 9,388,102 339,766 (747,332)
----------- ----------- ---------- ----------
NET INCREASE (DECREASE)
IN NET ASSETS ARISING FROM
CAPITAL TRANSACTIONS............. 5,923,800 9,388,102 339,766 (747,332)
----------- ----------- ---------- ----------
TOTAL INCREASE IN NET ASSETS........ 7,189,184 11,447,700 742,969 185,761
Net Assets, Beginning of Period..... 22,715,823 11,268,123 8,280,529 8,094,768
----------- ----------- ---------- ----------
NET ASSETS, END OF PERIOD........... $29,905,007 $22,715,823 $9,023,498 $8,280,529
=========== =========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
LARGE-CAP SMALL-CAP
VALUE VALUE SUB-ACCOUNTS
SUB-ACCOUNT SUB-ACCOUNT COMBINED
------------ ----------- --------------------------
5/1/98* 5/1/98* SIX MONTHS
TO TO ENDED YEAR
6/30/98 6/30/98 6/30/98 ENDED
(unaudited) (unaudited) (unaudited) 12/31/97
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)........ $ (1,120) $ (1,000) $ (1,603,957) $ 29,468,151
Net realized gain (loss)
on investments .................. 9 (509) 2,172,603 5,577,339
Net unrealized appreciation/
depreciation of investments...... (3,652) (34,322) 25,475,141 (7,841,170)
--------- -------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS........ (4,763) (35,831) 26,043,787 27,204,320
--------- -------- ------------ ------------
CAPITAL TRANSACTIONS:
Net increase (decrease) from
unit transactions (Note 5)....... 970,119 881,476 14,415,889 42,747,098
--------- -------- ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS ARISING FROM
CAPITAL TRANSACTIONS............. 970,119 881,476 14,415,889 42,747,098
--------- -------- ------------ ------------
TOTAL INCREASE IN NET ASSETS........ 965,356 845,645 40,459,676 69,951,418
Net Assets, Beginning of Period..... -- -- 236,125,654 166,174,236
--------- -------- ------------ ------------
NET ASSETS, END OF PERIOD........... $965,356 $845,645 $276,585,330 $236,125,654
========= ======== ============ ============
</TABLE>
5
<PAGE>
CANADA LIFE OF AMERICA VARIABLE ANNUITY ACCOUNT 2
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
- -----------------------------------------------------------------------------
1. ORGANIZATION
Canada Life of America Variable Annuity Account 2 ("Variable Annuity Account 2")
was established on February 26, 1993, as a separate investment account of Canada
Life Insurance Company of America ("CLICA") to receive and invest premium
payments under variable annuity policies issued by CLICA. Variable Annuity
Account 2 is registered as a unit investment trust under the Investment Company
Act of 1940, as amended. The assets of Variable Annuity Account 2 are invested
in the shares of Seligman Portfolios, Inc. (the "Fund"), a diversified,
open-end, management investment company. Variable Annuity Account 2 has fourteen
sub-accounts, each of which invests only in the shares of the corresponding
portfolio of the Fund.
The assets of Variable Annuity Account 2 are the property of CLICA. The
portion of Variable Annuity Account 2 assets applicable to the policies will not
be charged with liabilities arising out of any other business CLICA may conduct.
2. SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
Investments in shares of the Fund are valued at the reported net asset values of
the respective portfolios. Realized gains and losses are computed on the basis
of average cost. The difference between cost and current market value of
investments owned is recorded as an unrealized gain or loss on investments.
DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS
Dividends and capital gain distributions are recorded on the ex-dividend date
and reflect the dividends declared by the Fund from their accumulated net
investment income and net realized investment gains. Except for the Cash
Management Portfolio, whose dividends are declared daily and paid monthly,
dividends and capital gain distributions are declared and paid annually.
Dividends and capital gain distributions paid to the Variable Annuity Account 2
are reinvested in additional shares of the respective portfolio of the Fund at
the net asset value per share.
FEDERAL INCOME TAXES
Variable Annuity Account 2 is not taxed separately because the operations of
Variable Annuity Account 2 will be included in the federal income tax return of
CLICA, which is taxed as a "life insurance company" under the provisions of the
Internal Revenue Code.
3. INVESTMENTS
The investment by Variable Annuity Account 2 in the individual portfolios of the
Fund at June 30, 1998, is as follows:
<TABLE>
<CAPTION>
NUMBER OF SHARES MARKET PRICE MARKET VALUE COST
--------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Bond 438,398 $10.63 $ 4,660,171 $ 4,514,148
Capital 855,998 20.62 17,650,679 15,079,457
Cash Management 7,740,076 1.00 7,740,076 7,740,076
Common Stock 2,118,467 18.42 39,022,162 35,967,186
Communications and Information 5,704,957 14.01 84,490,413 81,762,812
Frontier 2,238,039 17.11 38,292,047 34,724,211
Global Growth Opportunities 556,544 13.16 7,324,119 6,294,381
Global Smaller Companies 1,479,122 15.08 22,305,160 19,439,803
Global Technology 360,805 12.87 4,643,560 4,271,453
International 635,428 15.99 10,160,494 8,376,816
High-Yield Bond 2,385,809 12.56 29,965,761 28,411,735
Income 792,442 11.41 9,041,763 8,722,310
Large-Cap Value 98,033 9.92 972,487 976,139
Small-Cap Value 92,524 9.15 846,595 880,917
------------ ------------
$277,116,287 $257,161,444
============ ============
</TABLE>
4. SECURITY PURCHASES AND SALES
The aggregate cost of purchases and the proceeds from sales of investments are
presented below:
<TABLE>
<CAPTION>
AGGREGATE COST OF PURCHASES PROCEEDS FROM SALES
--------------------------- -------------------
<S> <C> <C>
Bond $ 950,748 $ 1,452,502
Capital 5,696,172 5,133,208
Cash Management 11,595,877 11,147,007
Common Stock 5,111,273 2,869,539
Communications and Information 10,118,146 9,191,201
Frontier 6,917,273 6,097,500
Global Growth Opportunities 2,457,108 663,646
Global Smaller Companies 2,208,997 2,517,361
Global Technology 2,186,081 1,506,602
International 1,056,771 1,190,470
High-Yield Bond 2,536,273 3,498,603
Income 1,028,238 732,430
Large-Cap Value 983,201 7,071
Small-Cap Value 896,080 14,654
----------- -----------
$60,742,238 $46,021,794
=========== ===========
</TABLE>
6
<PAGE>
CANADA LIFE OF AMERICA VARIABLE ANNUITY ACCOUNT 2
5. SUMMARY OF CHANGES FROM UNIT TRANSACTIONS
The following table represents a summary of changes from unit transactions
attributable to contract holders for the periods indicated. The Large-Cap Value
and Small-Cap Value Sub-Accounts commenced operations on May 1, 1998.
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1998 YEAR ENDED DECEMBER 31, 1997
------------------------------- ------------------------------
UNITS AMOUNT UNITS AMOUNT
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
BOND SUB-ACCOUNT
Accumulation Units:
Contract purchases and net transfers in 115,433 $ 1,897,761 261,683 $ 4,117,039
Terminated contracts and net transfers out (142,498) (2,348,302) (132,913) (2,088,024)
---------- ---------- ---------- -----------
(27,065) (450,541) 128,770 2,029,015
---------- ---------- ---------- -----------
CAPITAL SUB-ACCOUNT
Accumulation Units:
Contract purchases and net transfers in 212,453 6,946,981 304,990 8,703,658
Terminated contracts and net transfers out (193,541) (6,311,142) (183,032) (5,275,581)
---------- ---------- ---------- ----------
18,912 635,839 121,958 3,428,077
---------- ---------- ---------- ----------
CASH MANAGEMENT SUB-ACCOUNT
Accumulation Units:
Contract purchases and net transfers in 11,740,921 16,544,830 28,517,454 39,834,422
Terminated contracts and net transfers out (11,657,093) (16,437,401) (29,363,850) (40,997,058)
---------- ---------- ---------- ----------
83,828 107,429 (846,396) (1,162,636)
---------- ---------- ---------- ----------
COMMON STOCK SUB-ACCOUNT
Accumulation Units:
Contract purchases and net transfers in 229,934 8,094,647 511,179 15,875,524
Terminated contracts and net transfers out (164,324) (5,777,675) (262,447) (8,281,591)
---------- ---------- ---------- ----------
65,610 2,316,972 248,732 7,593,933
---------- ---------- ---------- ----------
COMMUNICATIONS AND INFORMATION SUB-ACCOUNT
Accumulation Units:
Contract purchases and net transfers in 635,573 12,665,414 1,120,831 31,154,764
Terminated contracts and net transfers out (572,435) (11,541,868) (650,150) (23,046,638)
---------- ---------- ---------- ----------
63,138 1,123,546 470,681 8,108,126
---------- ---------- ---------- ----------
FRONTIER SUB-ACCOUNT
Accumulation Units:
Contract purchases and net transfers in 452,899 9,616,397 1,123,395 17,074,867
Terminated contracts and net transfers out (421,853) (8,919,071) (853,657) (12,146,488)
---------- ---------- ---------- ----------
31,046 697,326 269,738 4,928,379
---------- ---------- ---------- ----------
GLOBAL GROWTH OPPORTUNITIES SUB-ACCOUNT
Accumulation Units:
Contract purchases and net transfers in 311,204 3,855,415 482,602 5,012,445
Terminated contracts and net transfers out (181,724) (2,220,561) (176,920) (1,779,187)
---------- ---------- ---------- ----------
129,480 1,634,854 305,682 3,233,258
---------- ---------- ---------- ----------
GLOBAL SMALLER COMPANIES SUB-ACCOUNT
Accumulation Units:
Contract purchases and net transfers in 259,008 4,060,967 992,939 8,591,113
Terminated contracts and net transfers out (277,256) (4,306,493) (786,157) (5,716,277)
---------- ---------- ---------- ----------
(18,248) (245,526) 206,782 2,874,836
---------- ---------- ---------- ----------
GLOBAL TECHNOLOGY SUB-ACCOUNT
Accumulation Units:
Contract purchases and net transfers in 192,778 2,713,764 332,006 3,909,248
Terminated contracts and net transfers out (147,725) (2,067,759) (168,582) (2,009,675)
---------- ---------- ---------- ----------
45,053 646,005 163,424 1,899,573
---------- ---------- ---------- ----------
INTERNATIONAL SUB-ACCOUNT
Accumulation Units:
Contract purchases and net transfers in 120,393 1,868,402 107,800 4,319,259
Terminated contracts and net transfers out (131,916) (2,033,578) (21,223) (3,145,492)
---------- ---------- ---------- ----------
(11,523) (165,176) 86,577 1,173,767
---------- ---------- ---------- ----------
</TABLE>
7
<PAGE>
-------------------------------------------------------------------------
CANADA LIFE OF AMERICA VARIABLE ANNUITY ACCOUNT 2
-------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1998 YEAR ENDED DECEMBER 31, 1997
------------------------------- ------------------------------
UNITS AMOUNT UNITS AMOUNT
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
HIGH-YIELD BOND SUB-ACCOUNT
Accumulation Units:
Contract purchases and net transfers in 766,442 $10,767,736 1,917,673 $19,330,600
Terminated contracts and net transfers out (343,909) (4,843,936) (1,185,914) (9,942,498)
---------- ---------- ---------- ----------
422,533 5,923,800 731,759 9,388,102
---------- ---------- ---------- ----------
INCOME SUB-ACCOUNT
Accumulation Units:
Contract purchases and net transfers in 68,152 1,509,286 156,332 3,156,221
Terminated contracts and net transfers out (53,228) (1,169,520) (193,980) (3,903,553)
---------- ---------- ---------- ----------
14,924 339,766 (37,648) (747,332)
---------- ---------- ---------- ----------
LARGE-CAP VALUE SUB-ACCOUNT*
Accumulation Units:
Contract purchases and net transfers in 98,246 977,158
Terminated contracts and net transfers out (703) (7,039)
---------- ----------
97,543 970,119
---------- ----------
SMALL-CAP VALUE SUB-ACCOUNT*
Accumulation Units:
Contract purchases and net transfers in 93,514 889,993
Terminated contracts and net transfers out (876) (8,517)
---------- -----------
92,638 881,476
---------- -----------
Net increase from unit transactions $14,415,889 $42,747,098
=========== ===========
</TABLE>
- ------------------
* From commencement of operations.
6. MORTALITY AND EXPENSE RISK (M AND E) CHARGES
CLICA assumes mortality and expense risks related to the operations of Variable
Annuity Account 2 and deducts a charge equal to an effective annual rate of
1.25% of the net asset value of each Sub-Account at each valuation period. In
addition, at each valuation period an effective annual rate of 0.15% of the net
asset value of each Sub-Account is deducted as daily administration fees.
7. NET ASSETS
Net assets at June 30, 1998, consisted of the following:
<TABLE>
<CAPTION>
NET
ACCUMULATED NET UNREALIZED
INVESTMENT REALIZED APPRECIATION
ACCUMULATED INCOME GAIN (LOSS) (DEPRECIATION) COMBINED
UNIT M AND E AND CAPITAL ON OF NET
SUB-ACCOUNT TRANSACTIONS CHARGES GAINS INVESTMENTS INVESTMENTS ASSETS
- ------------ ------------ ------------ ------------ ------------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Bond $ 4,071,059 $ (141,921) $ 551,480 $ 34,664 $ 146,023 $ 4,651,313
Capital 12,376,755 (468,100) 2,010,505 1,122,939 2,571,222 17,613,321
Cash Management 6,860,955 (403,123) 1,190,529 -- -- 7,648,361
Common Stock 26,817,796 (964,824) 9,237,074 796,277 3,054,976 38,941,299
Communications and Information 61,173,056 (2,481,645) 21,311,676 1,707,755 2,727,601 84,438,443
Frontier 27,480,885 (1,033,162) 6,306,959 1,889,166 3,568,636 38,212,484
Global Growth Opportunities 6,152,994 (95,298) 52,198 169,053 1,029,738 7,308,685
Global Smaller Companies 17,527,177 (607,885) 1,772,811 701,552 2,865,357 22,259,012
Global Technology 3,603,000 (70,385) 455,101 273,681 372,107 4,633,504
International 7,541,212 (311,734) 575,495 550,751 1,783,678 10,139,402
High-Yield Bond 25,648,921 (568,082) 2,569,531 700,611 1,554,026 29,905,007
Income 6,992,819 (354,159) 1,995,271 70,114 319,453 9,023,498
Large-Cap Value 970,119 (1,120) -- 9 (3,652) 965,356
Small-Cap Value 881,476 (1,000) -- (509) (34,322) 845,645
------------ ----------- ----------- ---------- ----------- ------------
$208,098,224 $(7,502,438) $48,028,638 $8,006,063 $19,954,843 $276,585,330
============ =========== =========== ========== =========== ============
</TABLE>
8. UNIT VALUES
Unit Values as reported are calculated by dividing total net assets by total
units for each Sub-Account.
8
<PAGE>
The attached are incorporated by reference herein to the semi-annual reports
filed by and on behalf of the following:
Seligman Portfolios, Inc., filed August 28, 1998
Portfolios which include: Seligman Capital; Seligman Cash Management;
Seligman Common Stock; Seligman Bond; Seligman Income; Seligman Henderson
International; Seligman Communications and Information; Seligman Frontier;
Seligman Henderson Global Smaller Companies; Seligman High-Yield Bond;
Seligman Henderson Global Technology; Seligman Henderson Global Growth
Opportunities; Seligman Large-Cap, Seligman Small-Cap
<PAGE>
[TRILLIUM LOGO APPEARS HERE]
VARIABLE ACCOUNT 2 PERFORMANCE
------------------------------
Average Annual Total Returns for Periods Ending June 30, 1998
Assuming Contract Continues
<TABLE>
<CAPTION>
Year- Since Inception
PORTFOLIOS to-Date* 1 Year 3 Year 5 Year 10 Year Inception Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
SELIGMAN COMMUNICATIONS AND INFORMATION
PORTFOLIO 12.32% 26.39% 12.16% -- -- 21.11% 10/4/94
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO 20.65 31.37 -- -- -- 19.10 5/1/96
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO 7.64 13.06 19.66 -- -- 21.55 10/4/94
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN SMALL-CAP VALUE PORTFOLIO (NEW PORTFOLIO) (8.72)* 5/1/98
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER
COMPANIES PORTFOLIO 15.33 7.95 14.88 -- -- 13.97 10/4/94
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO 13.09 24.74 19.42 14.02% 13.26% -- 6/21/88
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL GROWTH
OPPORTUNITIES PORTFOLIO 18.45 16.42 -- -- -- 12.39 5/1/96
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN LARGE-CAP VALUE PORTFOLIO (NEW PORTFOLIO) (1.03)* 5/1/98
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO 12.32 18.58 20.60 15.73 13.88 -- 6/21/88
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO 17.24 10.21 12.71 10.81 -- 9.82 5/3/93
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO 4.88 10.75 9.29 6.35 8.40 -- 6/21/88
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO 5.04 13.36 12.48 -- -- 11.84 5/1/95
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN BOND PORTFOLIO 3.24 8.87 5.20 4.34 5.32 -- 6/21/88
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN CASH MANAGEMENT PORTFOLIO 1.93 3.91 3.79 3.10 3.54 -- 6/21/88
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Not annualized.
SELIGMAN CASH MANAGEMENT PORTFOLIO'S current yield, annualized for the seven-day
period ending June 30, 1998, was 3.94%. TRILLIUM FIXED ACCOUNT'S rate for the
one year Guarantee Period was 4.50% as of June 30, 1998. Rates for each
Guarantee Period will be different, and are subject to change on a monthly
basis. The 3, 5, 7, and 10 year Guarantee Periods are currently not approved in
all states. Please call 800-221-2783 for state approval and the current rates on
these Guarantee Periods.
Performance quoted represents past performance, and the investment return and
principal value of an investment will fluctuate so that units, when surrendered,
may be worth more or less than their original cost. Performance of the variable
portfolios reflects the performance of Seligman Portfolios, Inc., the underlying
investment vehicle for the Trillium Variable Account, adjusted for the current
fees and charges (excluding CDSC) associated with Trillium. For performance
figures with CDSC, please see reverse side. The variable account commenced
operations on 5/3/93. The fixed account is held in the general account of Canada
Life Insurance Company of America (CLICA) and provides a guarantee, by CLICA,
against loss of principal, and guarantees payment of a specified current rate of
interest. Please contact your financial advisor or call Seligman Financial
Services at 800-221-2783 for a prospectus containing full details including
information on fees and charges. Please read the prospectus carefully before
investing or sending money.
There are specific risks associated with global technology investing, such as
currency fluctuations, foreign taxation, differences in financial reporting
practices, and changes in political conditions. A portfolio that concentrates
its investments in one sector of the economy may be subject to greater share
price fluctuations than a more diversified portfolio. There are specific risks
associated with global investing, such as currency fluctuations, foreign
taxation, differences in financial reporting practices, and changes in political
conditions. A portfolio with fewer holdings may be subject to greater volatility
than a portfolio with a greater number of holdings. The securities in which the
Seligman High-Yield Bond Portfolio invests are subject to a greater risk of loss
of principal and interest than higher-rated investment grade bonds. Purchasers
should carefully assess the risks associated with an investment in the
portfolio.
<PAGE>
VARIABLE ACCOUNT PERFORMANCE
----------------------------
Average Annual Total Returns for Periods Ending June 30, 1998
Assuming Contract Is Surrendered at end of Period
<TABLE>
<CAPTION>
Since Inception
1 YEAR 3 YEAR 5 YEAR 10 YEAR Inception Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SELIGMAN COMMUNICATIONS AND INFORMATION
PORTFOLIO 20.99% 10.95% -- -- 20.39% 10/4/94
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL TECHNOLOGY PORTFOLIO 25.97 -- -- -- 17.39 5/1/96
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN FRONTIER PORTFOLIO 7.66 18.60 -- -- 20.83 10/4/94
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN SMALL-CAP VALUE PORTFOLIO (NEW PORTFOLIO) (14.13)* 5/1/98
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL SMALLER
COMPANIES PORTFOLIO 2.55 13.74 -- -- 13.12 10/4/94
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN CAPITAL PORTFOLIO 19.34 18.35 13.70% 13.26% -- 6/21/88
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN HENDERSON GLOBAL GROWTH
OPPORTUNITIES PORTFOLIO 11.02 -- -- -- 10.55 5/1/96
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN LARGE-CAP VALUE PORTFOLIO (NEW PORTFOLIO) (6.45)* 5/1/98
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN COMMON STOCK PORTFOLIO 13.18 19.56 15.43 13.88 -- 6/21/88
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN HENDERSON INTERNATIONAL PORTFOLIO 4.81 11.51 9.81 -- 9.47 5/3/93
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN INCOME PORTFOLIO 5.35 8.02 5.92 8.40 -- 6/21/88
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN HIGH-YIELD BOND PORTFOLIO 7.96 11.28 -- -- 10.72 5/1/95
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN BOND PORTFOLIO 3.47 3.83 3.88 5.32 -- 6/21/88
- -----------------------------------------------------------------------------------------------------------------------------------
SELIGMAN CASH MANAGEMENT PORTFOLIO (1.49) 2.37 2.62 3.54 -- 6/21/88
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Not annualized
Issued by: Canada LIfe Insurance Company of America, 6201 Powers Ferry Road,
N.W., Atlanta, GA 30339
Distributed by: Seligman Financial Services, Inc., 100 Park Avenue, New York, NY
10017 . (800) 221-2783
SELIGMAN CASH MANAGEMENT PORTFOLIO'S current yield, annualized for the seven-day
period ending June 30, 1998, was 3.94%. TRILLIUM FIXED ACCOUNT'S rate for the
one year Guarantee Period was 4.50% as of June 30, 1998. Rates for each
Guarantee Period will be different, and are subject to change on a monthly
basis. The 3, 5, 7, and 10 year Guarantee Periods are currently not approved in
all states. Please call 800-221-2783 for state approval and the current rates on
these Guarantee Periods.
Performance quoted represents past performance and the investment return and
principal value of an investment will fluctuate so that units, when surrendered,
may be worth more or less than their original cost. Performance of the variable
portfolios reflects the performance of Seligman Portfolios, Inc., the underlying
investment vehicle for the Trillium Variable Account, and is adjusted for
Trillium's current fees and charges including the maximum CDSC of 6%. Trillium's
CDSC for current premiums (premiums paid during the current and previous six
policy years) starts at 6% and decreases in steps, depending on the number of
policy years since the premium was paid, as follows: less than two years, 6%; at
least two, but less than four, 5%; at least four, but less than five, 4%; at
least five, but less than six, 3% at least six, but less than seven, 2%; at
least seven, no charge. The variable account commenced operations on 5/3/93. The
fixed account is held in the general account of Canada Life Insurance Company of
America (CLICA) and provides a guarantee by CLICA against loss of principal, and
guarantees payment of specified current rate of interest. Please contact your
financial advisor or call Seligman Financial Service at 800-221-2763 for a
prospectus containing full details including information on fees and charges.
Please read the prospectus carefully before investing or sending money.
