The prospectus containing information for the American Express Signature
Variable Annuity(SM) filed electronically in Registrant's Post-Effective
Amendment No. 2 to Registration Statement No. 333-74865 on Form N-4, filed on or
about April 28, 2000, is incorporated by reference.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
for
AMERICAN EXPRESS SIGNATURE VARIABLE ANNUITYSM
AMERICAN ENTERPRISE VARIABLE ANNUITY ACCOUNT
May 1, 2000
Revised as of July 21, 2000
American Enterprise Variable Annuity Account is a separate account established
and maintained by American Enterprise Life Insurance Company (American
Enterprise Life).
This Statement of Additional Information (SAI) is not a prospectus. It should be
read together with the prospectus dated the same date as this SAI which you can
obtain from your sales representative or by writing or calling us at the address
or telephone number below. The prospectus is incorporated into this SAI by
reference.
American Enterprise Life Insurance Company
829 AXP Financial Center
Minneapolis, MN 55474
1-800-333-3437
<PAGE>
TABLE OF CONTENTS
Performance Information....................................................p. 3
Calculating Annuity Payouts................................................p.14
Rating Agencies...........................................................p. 15
Principal Underwriter.....................................................p. 16
Independent Auditors......................................................p. 16
Financial Statements
<PAGE>
PERFORMANCE INFORMATION
The subaccounts may quote various performance figures to illustrate past
performance. We base total return and current yield quotations (if applicable)
on standardized methods of computing performance as required by the Securities
and Exchange Commission (SEC). An explanation of the methods used to compute
performance follows below.
Average Annual Total Return
We will express quotations of average annual total return for the subaccounts in
terms of the average annual compounded rate of return of a hypothetical
investment in the contract over a period of one, five and ten years (or, if
less, up to the life of the subaccounts), calculated according to the following
formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the period, at the
end of the period (or fractional portion thereof)
We calculated the following performance figures on the basis of historical
performance of each fund. We show actual performance from the date the
subaccounts began investing in the funds. For some subaccounts, we do not
provide any performance information because they are new and have not had any
activity to date. We also show performance from the commencement date of the
funds as if the contract existed at that time, which it did not. Although we
base performance figures on historical earnings, past performance does not
guarantee future results.
<PAGE>
<TABLE>
<CAPTION>
Average Annual Total Return For Annuities Without Withdrawal For Periods Ending Dec. 31. 1999
Performance Since
Commencement of the Performance Since
Subaccount Commencement of the Fund**
Since Since
Subaccount Investing In: 1 Year Commencement 1 Year 5 Years 10 Years Commencement
---------- ------------- ------ ------------ ------ ------- -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
AXPSM VARIABLE PORTFOLIO -
EVB Blue Chip Advantage Fund (5/00;9/99)* --% --% --% --% --% 10.81%
ESI Bond Fund (2/95;10/81) 0.22 6.09 0.22 6.41 6.54 9.03
ECR Capital Resource Fund (2/95;10/81) 21.96 18.97 21.96 19.55 13.76 14.22
EMS Cash Management Fund (2/95;10/81) 3.21 3.49 3.21 3.51 3.29 4.94
EVD Diversified Equity Income Fund (5/00;9/99) -- -- -- -- -- 2.37
EIA Extra Income Fund (8/99;5/96) -- 0.36 4.28 -- -- 3.87
EVF Federal Income Fund (5/00;9/99) -- -- -- -- -- 0.04
EVG Growth Fund (5/00;9/99) -- -- -- -- -- 17.72
EMG Managed Fund (2/95;4/86) 13.18 16.23 13.18 16.46 11.82 11.16
EGD New Dimensions Fund(R)(10/97;5/96) 30.10 28.33 30.10 -- -- 24.50
EVS Small Cap Advantage Fund (5/00;9/99) -- -- -- -- -- 12.18
AIM V.I.
ECA Capital Appreciation Fund (8/99;5/93) -- 32.97 42.56 23.78 -- 20.56
ECD Capital Development Fund (9/99;5/98) -- 28.68 27.23 -- -- 9.57
EVA Value Fund (10/97;5/93) 28.03 28.33 28.03 25.36 -- 21.22
ALLIANCE VP
EPP Premier Growth Portfolio (Class B) -- 19.00 30.25 34.05 -- 24.49
(9/99;6/92)
ETC Technology Portfolio (Class B) (9/99;1/96) -- 47.96 72.18 -- -- 33.75
EHG U.S. Government/High Grade Securities -- -0.54 -4.05 5.42 -- 3.72
Portfolio (Class B) (9/99;9/92)
BARON FUNDS
EAS Baron Capital Asset Fund (9/99;10/98) -- 19.38 33.89 -- -- 59.30
FIDELITY VIP
EFG III Growth & Income Portfolio (Service -- 6.87 6.26 -- -- 19.78
Class) (9/99;12/96)
EFM III Mid Cap Portfolio (Service Class) -- 27.26 46.63 -- -- 50.65
(9/99;12/98)
EFO Overseas Portfolio (Service Class) -- 24.71 40.35 15.62 9.79 9.18
(9/99;1/87)
FRANKLIN TEMPLETON VIP TRUST
ERE Franklin Real Estate Fund - Class 2 -- -0.50 -7.72 6.41 7.42 7.08
(9/99;1/89)***
EMU Mutual Shares Securities Fund - Class 2 -- 8.50 11.95 -- -- 9.24
(9/99;11/96)***
EIS Templeton International Smaller Companies -- 5.28 22.15 -- -- 3.70
Fund - Class 2 (9/99;5/96) ***
GOLDMAN SACHS VARIABLE INSURANCE TRUST (VIT)
JCG Capital Growth Fund (9/99;4/98) -- 16.96 25.30 -- -- 22.68
JUS COREsm U.S. Equity Fund (9/99;2/98)**** -- 12.43 22.51 -- -- 18.98
JGL Global Income Fund (9/99;1/98) -- 0.09 -2.46 -- -- 2.08
JIF International Equity Fund (9/99;1/98) -- 21.29 29.96 -- -- 24.49
EIT Internet Tollkeeper Fund (5/00;4/00)+ -- -- -- -- -- --
Janus Aspen Series
EJA Aggressive Growth Portfolio: Service -- -- 120.19 -- -- 32.08
Shares (5/00;9/93)+
EJT Global Technology Portfolio: Service -- -- -- -- -- --
Shares (5/00; 1/00)+
EJG Growth Portfolio: Service Shares -- -- 41.01 -- -- 21.37
(5/00;9/93)+
EJI International Growth Portfolio: Service -- -- 77.07 -- -- 26.70
Shares (5/00;5/94)+
*(Commencement date of the subaccount; Commencement date of the fund)
**Current applicable charges deducted from fund performance include a $30 annual
contract administrative charge, a 1.25% mortality and expense risk fee and
a 0.15% variable account administrative charge. Premium taxes are not
reflected in these total returns.
***Class 2 shares were issued Jan. 6, 1999. Prior to Jan. 6, 1999, Class 2
performance represents the historical performance results of Class 1
shares. Performance of Class 2 shares for periods after its Jan. 6, 1999
inception reflect Class 2's additional 12b-1 fee expense, which also
affects all future performance. Figures assume reinvestment of dividends
and capital gains. +Had not commenced operations as of Dec. 31, 1999.
<PAGE>
Average Annual Total Return For Annuities Without Withdrawal For Periods Ending Dec. 31. 1999 (continued)
Performance Since
Commencement of the Performance Since
Subaccount Commencement of the Fund**
Since Since
Subaccount Investing In: 1 Year Commencement 1 Year 5 Years 10 Years Commencement
---------- ------------- ------ ------------ ------ ------- -------- ------------
J.P. MORGAN SERIES TRUST II
EDE J.P. Morgan U.S. Disciplined Equity --% 8.60% 16.85% 22.73% --% 22.71%
Portfolio (9/99;12/94)*
LAZARD RETIREMENT SERIES
ERQ Equity Portfolio (9/99;3/98) -- 3.57 6.42 -- -- 9.00
ERI International Equity Portfolio (9/99;9/98) -- 9.38 19.67 -- -- 24.42
MFS (R)
END New Discovery Series (9/99;4/98) -- 51.86 70.96 -- -- 38.74
ERS Research Series (9/99;7/95) -- 17.90 22.26 -- -- 21.17
EUT Utilities Series (9/99;1/95) -- 21.18 28.93 -- -- 24.65
PUTNAM VARIABLE TRUST
EPG Putnam VT Growth and Income Fund - Class -0.01 14.33 -0.01 17.46 12.10 13.27
IB Shares (10/98;2/88)+
EPL Putnam VT International Growth Fund - -- 36.35 57.89 -- -- 28.28
Class IB Shares (9/99;1/97)+
EPN Putnam VT International New Opportunities -- 59.44 100.08 -- -- 30.85
Fund - Class IB Shares (9/99;1/97)+
ROYCE CAPITAL FUND
EMC Micro-Cap Portfolio (9/99;12/96) -- 15.85 26.30 -- -- 15.64
EPR Premier Portfolio (9/99;12/96) -- 9.14 6.65 -- -- 9.70
THIRD AVENUE VARIABLE SERIES TRUST
ETV Value Portfolio (5/00;9/99) -- -- -- -- -- 7.89
WANGER
EIC International Small Cap (9/99;5/95) -- 57.38 124.42 -- -- 36.93
EUC U.S. Small Cap (9/99;5/95) -- 25.45 20.64 -- -- 24.09
WARBURG PINCUS TRUST -
EEG Emerging Growth Portfolio (9/99;9/99) -- 33.52 -- -- -- 34.33
*(Commencement date of the subaccount; Commencement date of the fund)
**Current applicable charges deducted from fund performance include a $30 annual
contract administrative charge, a 1.25% mortality and expense risk fee and
a 0.15% variable account administrative charge. Premium taxes are not
reflected in these total returns.
+Each of the above Funds' Class IB Shares commenced operations on April 30,
1998. For periods prior to the inception dates of the Funds' Class IB
Shares, the performance shown is based on the historical performance of the
Funds' Class IA Shares adjusted to reflect the current expenses of the
Funds' Class IB Shares, including a 12b-1 fee of 0.15%.
<PAGE>
Average Annual Total Return For Annuities With Withdrawal For Periods Ending Dec. 31. 1999
Performance Since
Commencement of the Performance Since
Subaccount Commencement of the Fund**
Since Since
Subaccount Investing In: 1 Year Commencement 1 Year 5 Years 10 Years Commencement
---------- ------------- ------ ------------ ------ ------- -------- ------------
AXPSM VARIABLE PORTFOLIO -
EVB Blue Chip Advantage Fund (5/00;9/99)* --% --% --% --% --% 3.81%
ESI Bond Fund (2/95;10/81) -6.09 5.26 -6.09 5.62 6.54 9.03
ECR Capital Resource Fund (2/95;10/81) 14.96 18.44 14.96 19.06 13.76 14.22
EMS Cash Management Fund (2/95;10/81) -3.32 2.57 -3.32 2.62 3.29 4.94
EVD Diversified Equity Income Fund (5/00;9/99) -- -- -- -- -- -4.09
EIA Extra Income Fund (8/99;5/96) -- -5.96 -2.32 -- -- 2.36
EVF Federal Income Fund (5/00;9/99) -- -- -- -- -- -6.27
EVG Growth Fund (5/00;9/99) -- -- -- -- -- 10.72
EMG Managed Fund (2/95;4/86) 6.18 15.65 6.18 15.91 11.82 11.16
EGD New Dimensions Fund(R)(10/97;5/96) 23.10 26.24 23.10 -- -- 23.58
EVS Small Cap Advantage Fund (5/00;9/99) -- -- -- -- -- 5.18
AIM V.I.
ECA Capital Appreciation Fund (8/99;5/93) -- 25.97 35.56 23.35 -- 20.45
ECD Capital Development Fund (9/99;5/98) -- 21.68 20.23 -- -- 5.57
EVA Value Fund (10/97;5/93) 21.03 26.25 21.03 24.95 -- 21.12
ALLIANCE VP
EPP Premier Growth Portfolio (Class B) (9/99;6/92) -- 12.00 23.25 33.74 -- 24.49
ETC Technology Portfolio (Class B) (9/99;1/96) -- 40.96 65.18 -- -- 33.11
EHG U.S. Government/High Grade Securities -- -6.80 -10.07 4.59 -- 3.72
Portfolio (Class B) (9/99;9/92)
BARON FUNDS
EAS Baron Capital Asset Fund (9/99;10/98) -- 12.38 26.89 -- -- 54.26
FIDELITY VIP
EFG III Growth & Income Portfolio (Service Class) -- 0.09 -0.48 -- -- 18.37
(9/99;12/96)
EFM III Mid Cap Portfolio (Service Class) -- 20.26 39.63 -- -- 43.73
(9/99;12/98)
EFO Overseas Portfolio (Service Class) (9/99;1/87) -- 17.71 33.35 15.06 9.79 9.18
FRANKLIN TEMPLETON VIP TRUST
ERE Franklin Real Estate Fund - Class 2 -- -6.76 -13.48 5.62 7.42 7.08
(9/99;1/89)***
EMU Mutual Shares Securities Fund - Class 2 -- 1.60 4.95 -- -- 7.65
(9/99;11/96)***
EIS Templeton International Smaller Companies Fund - -- -1.39 15.15 -- -- 2.19
Class 2 (9/99;5/96) ***
GOLDMAN SACHS VARIABLE INSURANCE TRUST (VIT)
JCG Capital Growth Fund (9/99;4/98) -- 9.96 18.30 -- -- 18.99
JUS COREsm U.S. Equity Fund (9/99;2/98)**** -- 5.43 15.51 -- -- 15.74
JGL Global Income Fund (9/99;1/98) -- -6.21 -8.59 -- -- -1.23
JIF International Equity Fund (9/99;1/98) -- 14.29 22.96 -- -- 21.58
EIT Internet Tollkeeper Fund (5/00;4/00)+ -- -- -- -- -- --
Janus Aspen Series
EJA Aggressive Growth Portfolio: Service Shares -- -- 113.19 -- -- 32.01
(5/00;9/93)+
EJT Global Technology Portfolio: Service Shares -- -- -- -- -- --
(5/00; 1/00)+
EJG Growth Portfolio: Service Shares (5/00;9/93)+ -- -- 34.01 -- -- 21.26
EJI International Growth Portfolio: Service Shares -- -- 70.07 -- -- 26.47
(5/00;5/94)+
*(Commencement date of the subaccount; Commencement date of the fund)
**Current applicable charges deducted from fund performance include a $30 annual
contract administrative charge, a 1.25% mortality and expense risk fee, a
0.15% variable account administrative charge and applicable withdrawal
charges. Premium taxes are not reflected in these total returns.
***Class 2 shares were issued Jan. 6, 1999. Prior to Jan. 6, 1999, Class 2
performance represents the historical performance results of Class 1
shares. Performance of Class 2 shares for periods after its Jan. 6, 1999
inception reflect Class 2's additional 12b-1 fee expense, which also
affects all future performance. Figures assume reinvestment of dividends
and capital gains.
+Had not commenced operations as of Dec. 31, 1999.
<PAGE>
Average Annual Total Return For Annuities With Withdrawal For Periods Ending Dec. 31. 1999 (continued)
Performance Since
Commencement of the Performance Since
Subaccount Commencement of the Fund**
Since Since
Subaccount Investing In: 1 Year Commencement 1 Year 5 Years 10 Years Commencement
---------- ------------- ------ ------------ ------ ------- -------- ------------
J.P. MORGAN SERIES TRUST II
EDE J.P. Morgan U.S. Disciplined Equity --% 1.70% 9.85% 22.29% --% 22.35%
Portfolio (9/99;12/94)*
LAZARD RETIREMENT SERIES
ERQ Equity Portfolio (9/99;3/98) -- -2.98 -0.33 -- -- 5.29
ERI International Equity Portfolio (9/99;9/98) -- 2.42 12.67 -- -- 19.50
MFS (R)
END New Discovery Series (9/99;4/98) -- 44.86 63.96 -- -- 35.36
ERS Research Series (9/99;7/95) -- 10.90 15.26 -- -- 20.58
EUT Utilities Series (9/99;1/95) -- 14.18 21.93 -- -- 24.23
PUTNAM VARIABLE TRUST
EPG Putnam VT Growth and Income Fund - Class -6.31 8.83 -6.31 16.93 12.10 13.27
IB Shares (10/98;2/88)+
EPL Putnam VT International Growth Fund - -- 29.35 50.89 -- -- 27.05
Class IB Shares (9/99;1/97)+
EPN Putnam VT International New Opportunities -- 52.44 93.08 -- -- 29.67
Fund - Class IB Shares (9/99;1/97)+
ROYCE CAPITAL FUND
EMC Micro-Cap Portfolio (9/99;12/96) -- 8.85 19.30 -- -- 14.12
EPR Premier Portfolio (9/99;12/96) -- 2.20 -0.12 -- -- 8.01
THIRD AVENUE VARIABLE SERIES TRUST
ETV Value Portfolio (5/00;9/99) -- -- -- -- -- 1.04
WANGER
EIC International Small Cap (9/99;5/95) -- 50.38 117.42 -- -- 36.58
EUC U.S. Small Cap (9/99;5/95) -- 18.45 13.64 -- -- 23.60
WARBURG PINCUS TRUST -
EEG Emerging Growth Portfolio (9/99;9/99) -- 26.52 -- -- -- 27.33
*(Commencement date of the subaccount; Commencement date of the fund)
**Current applicable charges deducted from fund performance include a $30 annual
contract administrative charge, a 1.25% mortality and expense risk fee, a
0.15% variable account administrative charge and applicable withdrawal
charges. Premium taxes are not reflected in these total returns.
+Each of the above Funds' Class IB Shares commenced operations on April 30,
1998. For periods prior to the inception dates of the Funds' Class IB
Shares, the performance shown is based on the historical performance of the
Funds' Class IA Shares adjusted to reflect the current expenses of the
Funds' Class IB Shares, including a 12b-1 fee of 0.15%.
<PAGE>
Average Annual Total Return For Annuities Without Withdrawal and Selection of the Guaranteed Minimum
Income Benefit Rider (6% Accumulation Benefit Base) For Periods Ending Dec. 31. 1999
Performance Since
Commencement of the Performance Since
Subaccount Commencement of the Fund**
Since Since
Subaccount Investing In: 1 Year Commencement 1 Year 5 Years 10 Years Commencement
---------- ------------- ------ ------------ ------ ------- -------- ------------
AXPSM VARIABLE PORTFOLIO -
EVB Blue Chip Advantage Fund (5/00;9/99)* --% --% --% --% --% 10.46%
ESI Bond Fund (2/95;10/81) -0.13 5.74 -0.13 6.06 6.19 8.68
ECR Capital Resource Fund (2/95;10/81) 21.61 18.62 21.61 19.20 13.41 13.87
EMS Cash Management Fund (2/95;10/81) 2.86 3.14 2.86 3.16 2.94 4.59
EVD Diversified Equity Income Fund (5/00;9/99) -- -- -- -- -- 2.02
EIA Extra Income Fund (8/99;5/96) -- 0.01 3.93 -- -- 3.52
EVF Federal Income Fund (5/00;9/99) -- -- -- -- -- -0.31
EVG Growth Fund (5/00;9/99) -- -- -- -- -- 17.37
EMG Managed Fund (2/95;4/86) 12.83 15.88 12.83 16.11 11.47 10.81
EGD New Dimensions Fund(R)(10/97;5/96) 29.75 27.98 29.75 -- -- 24.15
EVS Small Cap Advantage Fund (5/00;9/99) -- -- -- -- -- 11.83
AIM V.I.
ECA Capital Appreciation Fund (8/99;5/93) -- 32.62 42.21 23.43 -- 20.21
ECD Capital Development Fund (9/99;5/98) -- 28.33 26.88 -- -- 9.22
EVA Value Fund (10/97;5/93) 27.68 27.98 27.68 25.01 -- 20.87
ALLIANCE VP
EPP Premier Growth Portfolio (Class B) -- 18.65 29.90 33.70 -- 24.14
(9/99;6/92)
ETC Technology Portfolio (Class B) (9/99;1/96) -- 47.61 71.83 -- -- 33.40
EHG U.S. Government/High Grade Securities -- -0.89 -4.40 5.07 -- 3.37
Portfolio (Class B) (9/99;9/92)
BARON FUNDS
EAS Baron Capital Asset Fund (9/99;10/98) -- 19.03 33.54 -- -- 58.95
FIDELITY VIP
EFG III Growth & Income Portfolio (Service -- 6.52 5.91 -- -- 19.43
Class) (9/99;12/96)
EFM III Mid Cap Portfolio (Service Class) -- 26.91 46.28 -- -- 50.30
(9/99;12/98)
EFO Overseas Portfolio (Service Class) -- 24.36 40.00 15.27 9.44 8.83
(9/99;1/87)
FRANKLIN TEMPLETON VIP TRUST
ERE Franklin Real Estate Fund - Class 2 -- -0.85 -8.07 6.06 7.07 6.73
(9/99;1/89)***
EMU Mutual Shares Securities Fund - Class 2 -- 8.15 11.60 -- -- 8.89
(9/99;11/96)***
EIS Templeton International Smaller Companies -- 4.93 21.80 -- -- 3.35
Fund - Class 2 (9/99;5/96) ***
GOLDMAN SACHS VARIABLE INSURANCE TRUST (VIT)
JCG Capital Growth Fund (9/99;4/98) -- 16.61 24.95 -- -- 22.33
JUS COREsm U.S. Equity Fund (9/99;2/98)**** -- 12.08 22.16 -- -- 18.63
JGL Global Income Fund (9/99;1/98) -- -0.26 -2.81 -- -- 1.73
JIF International Equity Fund (9/99;1/98) -- 20.94 29.61 -- -- 24.14
EIT Internet Tollkeeper Fund (5/00;4/00)+ -- -- -- -- -- --
Janus Aspen Series
EJA Aggressive Growth Portfolio: Service -- -- 119.84 -- -- 31.73
Shares (5/00;9/93)+
EJT Global Technology Portfolio: Service -- -- -- -- -- --
Shares (5/00; 1/00)+
EJG Growth Portfolio: Service Shares -- -- 40.66 -- -- 21.02
(5/00;9/93)+
EJI International Growth Portfolio: Service -- -- 76.72 -- -- 26.35
Shares (5/00;5/94)+
*(Commencement date of the subaccount; Commencement date of the fund)
**Current applicable charges deducted from fund performance include a $30 annual
contract administrative charge, a 1.25% mortality and expense risk fee, a
0.15% variable account administrative charge and a 0.35% Guaranteed Minimum
Income Benefit Rider (6% Accumulation Benefit Base)fee. Premium taxes are
not reflected in these total returns.
***Class 2 shares were issued Jan. 6, 1999. Prior to Jan. 6, 1999, Class 2
performance represents the historical performance results of Class 1
shares. Performance of Class 2 shares for periods after its Jan. 6, 1999
inception reflect Class 2's additional 12b-1 fee expense, which also
affects all future performance. Figures assume reinvestment of dividends
and capital gains.
+Had not commenced operations as of Dec. 31, 1999.
<PAGE>
Average Annual Total Return For Annuities Without Withdrawal and Selection of the Guaranteed Minimum
Income Benefit Rider (6% Accumulation Benefit Base) For Periods Ending Dec. 31. 1999
Performance Since
Commencement of the Performance Since
Subaccount Commencement of the Fund**
Since Since
Subaccount Investing In: 1 Year Commencement 1 Year 5 Years 10 Years Commencement
---------- ------------- ------ ------------ ------ ------- -------- ------------
J.P. MORGAN SERIES TRUST II
EDE J.P. Morgan U.S. Disciplined Equity --% 8.25% 16.50% 22.38% --% 22.36%
Portfolio (9/99;12/94)*
LAZARD RETIREMENT SERIES
ERQ Equity Portfolio (9/99;3/98) -- 3.22 6.07 -- -- 8.65
ERI International Equity Portfolio (9/99;9/98) -- 9.03 19.32 -- -- 24.07
MFS (R)
END New Discovery Series (9/99;4/98) -- 51.51 70.61 -- -- 38.39
ERS Research Series (9/99;7/95) -- 17.55 21.91 -- -- 20.82
EUT Utilities Series (9/99;1/95) -- 20.83 28.58 -- -- 24.30
PUTNAM VARIABLE TRUST
EPG Putnam VT Growth and Income Fund - Class -0.36 13.98 -0.36 17.11 11.75 12.92
IB Shares (10/98;2/88)+
EPL Putnam VT International Growth Fund - -- 36.00 57.54 -- -- 27.93
Class IB Shares (9/99;1/97)+
EPN Putnam VT International New Opportunities -- 59.09 99.73 -- -- 30.50
Fund - Class IB Shares (9/99;1/97)+
ROYCE CAPITAL FUND
EMC Micro-Cap Portfolio (9/99;12/96) -- 15.50 25.95 -- -- 15.29
EPR Premier Portfolio (9/99;12/96) -- 8.79 6.30 -- -- 9.35
THIRD AVENUE VARIABLE SERIES TRUST
ETV Value Portfolio (5/00;9/99) -- -- -- -- -- 7.54
WANGER
EIC International Small Cap (9/99;5/95) -- 27.03 124.07 -- -- 35.35
EUC U.S. Small Cap (9/99;5/95) -- 25.10 20.29 -- -- 23.74
WARBURG PINCUS TRUST -
EEG Emerging Growth Portfolio (9/99;9/99) -- 33.17 -- -- -- 33.98
*(Commencement date of the subaccount; Commencement date of the fund)
**Current applicable charges deducted from fund performance include a $30 annual
contract administrative charge, a 1.25% mortality and expense risk fee, a
0.15% variable account administrative charge and a 0.35% Guaranteed Minimum
Income Benefit Rider (6% Accumulation Benefit Base) fee. Premium taxes are
not reflected in these total returns.
+Each of the above Funds' Class IB Shares commenced operations on April 30,
1998. For periods prior to the inception dates of the Funds' Class IB
Shares, the performance shown is based on the historical performance of the
Funds' Class IA Shares adjusted to reflect the current expenses of the
Funds' Class IB Shares, including a 12b-1 fee of 0.15%.
<PAGE>
Average Annual Total Return For Annuities With Withdrawal and Selection of the Guaranteed Minumum Income
Benefit Rider (6% Accumulation Benefit Base) For Periods Ending Dec. 31. 1999
Performance Since
Commencement of the Performance Since
Subaccount Commencement of the Fund**
Since Since
Subaccount Investing In: 1 Year Commencement 1 Year 5 Years 10 Years Commencement
---------- ------------- ------ ------------ ------ ------- -------- ------------
AXPSM VARIABLE PORTFOLIO -
EVB Blue Chip Advantage Fund (5/00;9/99)* --% --% --% --% --% 3.46%
ESI Bond Fund (2/95;10/81) -6.42 4.90 -6.42 5.26 6.19 8.68
ECR Capital Resource Fund (2/95;10/81) 14.61 18.08 14.61 18.71 13.41 13.87
EMS Cash Management Fund (2/95;10/81) -3.65 2.21 -3.65 2.26 2.94 4.59
EVD Diversified Equity Income Fund (5/00;9/99) -- -- -- -- -- -4.42
EIA Extra Income Fund (8/99;5/96) -- -6.29 -2.64 -- -- 2.00
EVF Federal Income Fund (5/00;9/99) -- -- -- -- -- -6.60
EVG Growth Fund (5/00;9/99) -- -- -- -- -- 10.37
EMG Managed Fund (2/95;4/86) 12.83 15.88 12.83 16.11 11.47 10.81
EGD New Dimensions Fund(R)(10/97; 5/96) 22.75 25.89 22.75 -- -- 23.23
EVS Small Cap Advantage Fund (5/00;9/99) -- -- -- -- -- 4.83
AIM V.I.
ECA Capital Appreciation Fund (8/99;5/93) -- 25.62 35.21 22.99 -- 20.10
ECD Capital Development Fund (9/99;5/98) -- 21.33 19.88 -- -- 5.22
EVA Value Fund (10/97;5/93) 20.68 25.89 20.68 24.60 -- 20.77
ALLIANCE VP
EPP Premier Growth Portfolio (Class B) (9/99;6/92) -- 11.65 22.90 33.38 -- 24.14
ETC Technology Portfolio (Class B) (9/99;1/96) -- 40.61 64.83 -- -- 32.75
EHG U.S. Government/High Grade Securities -- -7.13 -10.39 4.23 -- 3.37
Portfolio (Class B) (9/99;9/92)
BARON FUNDS
EAS Baron Capital Asset Fund (9/99;10/98) -- 12.03 26.54 -- -- 53.91
FIDELITY VIP
EFG III Growth & Income Portfolio (Service Class) -- -0.24 -0.81 -- -- 18.01
(9/99;12/96)
EFM III Mid Cap Portfolio (Service Class) -- 19.91 39.28 -- -- 43.38
(9/99;1/98)
EFO Overseas Portfolio (Service Class) (9/99;1/87) -- 17.36 33.00 14.70 9.44 8.83
FRANKLIN TEMPLETON VIP TRUST
ERE Franklin Real Estate Fund - Class 2 -- -7.09 -13.81 5.26 7.07 6.73
(9/99;1/89)***
EMU Mutual Shares Securities Fund - Class 2 -- 1.28 4.60 -- -- 7.29
(9/99;11/96)***
EIS Templeton International Smaller Companies Fund -- -1.72 14.80 -- -- 1.83
- Class 2 (9/99;5/96) ***
GOLDMAN SACHS VARIABLE INSURANCE TRUST (VIT)
JCG Capital Growth Fund (9/99;4/98) -- 9.61 17.95 -- -- 18.63
JUS COREsm U.S. Equity Fund (9/99;2/98)**** -- 5.08 15.16 -- -- 15.39
JGL Global Income Fund (9/99;1/98) -- -6.54 -8.93 -- -- -1.56
JIF International Equity Fund (9/99;1/98) -- 13.94 22.61 -- -- 21.22
EIT Internet Tollkeeper Fund (5/00;4/00)+ -- -- -- -- -- --
Janus Aspen Series
EJA Aggressive Growth Portfolio: Service Shares -- -- 112.84 -- -- 31.66
(5/00;9/93)+
EJT Global Technology Portfolio: Service Shares -- -- -- -- -- --
(5/00; 1/00)+
EJG Growth Portfolio: Service Shares (5/00;9/93)+ -- -- 33.66 -- -- 20.91
EJI International Growth Portfolio: Service Shares -- -- 69.72 -- -- 26.12
(5/00;5/94)+
*(Commencement date of the subaccount; Commencement date of the fund)
**Current applicable charges deducted from fund performance include a $30 annual
contract administrative charge, a 1.25% mortality and expense risk fee, a
0.15% variable account administrative charge, a 0.35% Guaranteed Minimum
Income Benefit Rider (6% Accumulation Benefit Base) fee and applicable
withdrawal charges. Premium taxes are not reflected in these total returns.
***Class 2 shares were issued Jan. 6, 1999. Prior to Jan. 6, 1999, Class 2
performance represents the historical performance results of Class 1
shares. Performance of Class 2 shares for periods after its Jan. 6, 1999
inception reflect Class 2's additional 12b-1 fee expense, which also
affects all future performance. Figures assume reinvestment of dividends
and capital gains.
+Had not commenced operations as of Dec. 31, 1999.
<PAGE>
Average Annual Total Return For Annuities With Withdrawal and Selection of the Guaranteed Minimum Income
Benefit Rider (6% Accumulation Benefit Base) For Periods Ending Dec. 31. 1999 (continued)
Performance Since
Commencement of the Performance Since
Subaccount Commencement of the Fund**
Since Since
Subaccount Investing In: 1 Year Commencement 1 Year 5 Years 10 Years Commencement
---------- ------------- ------ ------------ ------ ------- -------- ------------
J.P. MORGAN SERIES TRUST II
EDE J.P. Morgan U.S. Disciplined Equity --% 1.37% 9.50% 21.94% --% 22.00%
Portfolio (9/99;12/94)*
LAZARD RETIREMENT SERIES
ERQ Equity Portfolio (9/99;3/98) -- -3.31 -0.66 -- -- 4.93
ERI International Equity Portfolio (9/99;9/98) -- 2.09 12.32 -- -- 19.14
MFS (R)
END New Discovery Series (9/99;4/98) -- 44.51 63.61 -- -- 35.01
ERS Research Series (9/99;7/95) -- 10.55 14.91 -- -- 20.22
EUT Utilities Series (9/99;1/95) -- 13.83 21.58 -- -- 23.87
PUTNAM VARIABLE TRUST
EPG Putnam VT Growth and Income Fund - Class -6.64 8.47 -6.64 16.57 11.75 12.92
IB Shares (10/98;2/88)+
EPL Putnam VT International Growth Fund - -- 29.00 50.54 -- -- 26.69
Class IB Shares (9/99;1/97)+
EPN Putnam VT International New Opportunities -- 52.09 92.73 -- -- 29.31
Fund - Class IB Shares (9/99;1/97)+
ROYCE CAPITAL FUND
EMC Micro-Cap Portfolio (9/99;12/96) -- 8.50 18.95 -- -- 13.76
EPR Premier Portfolio (9/99;12/96) -- 1.87 -0.44 -- -- 7.65
THIRD AVENUE VARIABLE SERIES TRUST
ETV Value Portfolio (5/00;9/99) -- -- -- -- -- 0.71
WANGER
EIC International Small Cap (9/99;5/95) -- 50.03 117.07 -- -- 36.23
EUC U.S. Small Cap (9/99;5/95) -- 18.10 13.29 -- -- 23.25
WARBURG PINCUS TRUST -
EEG Emerging Growth Portfolio (9/99;9/99) -- 26.17 -- -- -- 26.98
</TABLE>
*(Commencement date of the subaccount; Commencement date of the fund)
**Current applicable charges deducted from fund performance include a $30 annual
contract administrative charge, a 1.25% mortality and expense risk fee, a
0.15% variable account administrative charge, a 0.35% Guaranteed Minimum
Income Benefit Rider (6% Accumulation Benefit Base) fee and applicable
withdrawal charges. Premium taxes are not reflected in these total returns.
+Each of the above Funds' Class IB Shares commenced operations on April 30,
1998. For periods prior to the inception dates of the Funds' Class IB
Shares, the performance shown is based on the historical performance of the
Funds' Class IA Shares adjusted to reflect the current expenses of the
Funds' Class IB Shares, including a 12b-1 fee of 0.15%.
<PAGE>
Cumulative Total Return
Cumulative total return represents the cumulative change in value of an
investment for a given period (reflecting change in a subaccount's accumulation
unit value). We compute cumulative total return using the following formula:
ERV - P
-------
P
where: P = a hypothetical initial payment of $1,000
ERV = Ending Redeemable Value of a hypothetical $1,000 payment
made at the beginning of the period, at the end of the period
(or fractional portion thereof)
Total return figures reflect the deduction of the withdrawal charge which
assumes you withdraw the entire contract value at the end of the one-, five- and
ten- year periods (or, if less, up to the life of the subaccount).
We may also show performance figures without the deduction of a withdrawal
charge. In addition, total return figures reflect the deduction of all other
applicable charges including the annual contract administrative charge, the
variable account administrative charge, the Guaranteed Minimum Income Benefit
Rider (6% Accumulation Benefit Base) fee, the 8% Performance Credit Rider fee
and the mortality and expense risk fee.
Calculation of Yield for Subaccounts Investing in Money Market Funds
Annualized Simple Yield
For the subaccounts investing in money market funds, we base quotations of
simple yield on:
(a) the change in the value of a hypothetical subaccount (exclusive of
capital changes and income other than investment income) at the
beginning of a particular seven-day period;
(b) less, a pro rata share of the subaccount expenses accrued over the
period;
(c) dividing this difference by the value of the subaccount at the
beginning of the period to obtain the base period return; and
(d) multiplying the base period return by 365/7.
The subaccount's value includes:
o any declared dividends;
o the value of any shares purchased with dividends paid during the period;
and o any dividends declared for such shares.
It does not include:
o the effect of any applicable withdrawal charge; or
o any realized or unrealized gains or losses.
Annualized Compound Yield
We calculate compound yield using the base period return described above, which
we then compound according to the following formula:
Compound Yield = [(Base Period Return + 1)365/7] - 1
<PAGE>
Annualized Yields Based on the Seven-Day Period Ending Dec. 31, 1999
<TABLE>
<S> <C> <C> <C>
Subaccount Investing In Simple Yield Compound Yield
EMS AXPSM Variable Portfolio - Cash Management Fund 4.52% 4.62%
</TABLE>
You must consider (when comparing an investment in subaccounts investing in
money market funds with fixed annuities) that fixed annuities often provide an
agreed-to or guaranteed yield for a stated period of time, whereas the
subaccount's yield fluctuates. In comparing the yield of the subaccount to a
money market fund, you should consider the different services that the contract
provides.
Annualized Yield for Subaccounts Investing in Income Funds
For the subaccounts investing in income funds, we base quotations of yield on
all investment income earned during a particular 30-day period, less expenses
accrued during the period (net investment income) and compute it by dividing net
investment income per accumulation unit by the value of an accumulation unit on
the last day of the period according to the following formula:
YIELD = 2[a-b + 1)6 - 1]
---
cd
where:
a = dividends and investment income earned during the
period
b = expenses accrued for the period (net of
reimbursements)
c = the average daily number of accumulation units
outstanding during the period that were entitled to
receive dividends
d = the maximum offering price per accumulation unit on
the last day of the period
The subaccount earns yield from the increase in the net asset value of shares of
the fund in which it invests and from dividends declared and paid by the fund,
which are automatically invested in shares of the fund.
Annualized Yield Based on 30-Day Period Ended Dec. 31, 1999
Subaccount Investing In Yield
ESI AXPSM Variable Portfolio - Bond Fund 7.52%
EIA AXPSM Variable Portfolio - Extra Income Fund 15.35
The yield on the subaccount's accumulation unit may fluctuate daily and does not
provide a basis for determining future yields.
Independent rating or statistical services or publishers or publications such as
those listed below may quote subaccount performance, compare it to rankings,
yields or returns, or use it in variable annuity accumulation or settlement
illustrations they publish or prepare:
The Bank Rate Monitor National Index, Barron's, Business Week, CDA
Technologies, Donoghue's Money Market Fund Report, Financial Services
Week, Financial Times, Financial World, Forbes, Fortune, Global
Investor, Institutional Investor, Investor's Business Daily,
Kiplinger's Personal Finance, Lipper Analytical Services, Money,
Morningstar, Mutual Fund Forecaster, Newsweek, The New York Times,
Personal Investor, Stanger Report, Sylvia Porter's Personal Finance,
USA Today, U.S. News & World Report, The Wall Street Journal and
Wiesenberger Investment Companies Service.
<PAGE>
CALCULATING ANNUITY PAYOUTS
The Variable Account
We do the following calculations separately for each of the subaccounts of the
variable account. The separate monthly payouts, added together, make up your
total variable annuity payout.
Initial Payout: To compute your first monthly payment, we:
o determine the dollar value of your contract on the valuation date; then
o apply the result to the annuity table contained in the contract or another
table at least as favorable.
The annuity table shows the amount of the first monthly payment for each $1,000
of value which depends on factors built into the table, as described below.
Annuity Units: We then convert the value of your subaccount to annuity units. To
compute the number of units credited to you, we divide the first monthly payment
by the annuity unit value (see below) on the valuation date. The number of units
in your subaccount is fixed. The value of the units fluctuates with the
performance of the underlying fund.
Subsequent Payouts: To compute later payouts, we multiply:
o the annuity unit value on the valuation date; by
o the fixed number of annuity units credited to you.
Annuity Unit Values: We originally set this value at $1 for each subaccount. To
calculate later value we multiply the last annuity value by the product of:
o the net investment factor; and
o the neutralizing factor.
The purpose of the neutralizing factor is to offset the effect of the assumed
investment rate built into the annuity table. With an assumed investment rate of
5%, the neutralizing factor is 0.999866 for a one day valuation period.
Net Investment Factor
We determine the net investment factor by:
o adding the fund's current net asset value per share plus the per-share
amount of any accrued income or capital gain dividends to obtain a current
adjusted net asset value per share; then
o dividing that sum by the previous adjusted net asset value per share; and
o subtracting the percentage factor representing the mortality and expense
risk fee and the variable account administrative charge from the result.
Because the net asset value of the fund may fluctuate, the net investment factor
may be greater or less than one, and the annuity unit value may increase or
decrease. You bear this investment risk in a variable subaccount.
<PAGE>
The One-Year Fixed Account
We guarantee your fixed annuity payout amounts. Once calculated, your payout
will remain the same and never change. To calculate your annuity payouts we:
o take the value of your one-year fixed account at the retirement date or the
date you have selected to begin receiving your annuity payouts; then
o using an annuity table, we apply the value according to the annuity payout
plan you select.
The annuity payout table we use will be the one in effect at the time you choose
to begin your annuity payouts. The values in the table will be equal to or
greater than the table in your contract.
RATING AGENCIES
The following chart reflects the ratings given to us by independent rating
agencies. These agencies evaluate the financial soundness and claims-paying
ability of insurance companies based on a number of different factors. This
information does not relate to the management or performance of the subaccounts
of the contract. This information relates only to the fixed account and reflects
our ability to make annuity payouts and to pay death benefits and other
distributions from the annuities.
Rating agency Rating
A.M. Best A+ (Superior)
Duff & Phelps AAA
Moody's Aa2 (Excellent)
A.M. Best's superior rating reflects our strong distribution network, favorable
overall balance sheet, consistently improving profitability, adequate level of
capitalization and asset/liability management expertise.
Duff & Phelps rating reflects our consistently excellent profitability record,
leadership position in chosen markets, stable operating leverage and effective
use of asset/liability management techniques.
Moody's excellent rating reflects our leadership position in financial planning,
strong asset, liability management and good capitalization. American Enterprise
Life has a strong market focus and greatly emphasizes quality service. This
information applies only to fixed products invested in American Enterprise
Life's General Account and reflects American Enterprise Life's ability to
fulfill its obligations under its contracts. This information does not relate to
the management and performance of the separate account assets associated with
American Enterprise Life's variable products.
<PAGE>
PRINCIPAL UNDERWRITER
The principal underwriter for the contract is American Express Financial
Advisors Inc. (AEFA) which offers the contract on a continuous basis.
Withdrawal charges received by AEFA for 1999 total $479,554. Commissions we paid
for 1999 total $5,924,368.
The contract is new as of 1999 and therefore, we do not have three years of
history for withdrawal charges received or commissions paid.
INDEPENDENT AUDITORS
The financial statements appearing in this SAI have been audited by Ernst &
Young LLP (1400 Pillsbury Center, 200 South Sixth Street, Minneapolis, MN 55402)
independent auditors, as stated in their report appearing herein.
FINANCIAL STATEMENTS
American Enterprise Variable Annuity Account -- American Express Signature
Variable Annuity
Annual Financial Information
Report of Independent Auditors
The Board of Directors
American Enterprise Life Insurance Company
We have audited the individual and combined statements of net assets of the
segregated asset subaccounts of American Enterprise Variable Annuity Account
(comprised of subaccounts ESI, ECR, EMS, EIA, EMG, EGD, ECA, ECD, EVA, EPP, ETC,
EHG, EAS, EFG, EFM, EFO, ERE, EMU, EIS, JCG, JUS, JGL, JIF, EDE, ERQ, ERI, END,
ERS, EUT, EPG, EPL, EPN, EMC, EPR, EIC, EUC and EEG) as of December 31, 1999,
and the related statements of operations and the statements of changes in net
assets for the periods indicated therein. These financial statements are the
responsibility of the management of American Enterprise Life Insurance Company.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned at December 31, 1999 with
the affiliated and unaffiliated mutual fund managers. 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 audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the individual and combined financial position of the
segregated asset subaccounts of American Enterprise Variable Annuity Account (as
described above) at December 31, 1999, and the individual and combined results
of their operations and the changes in their net assets for the periods
indicated therein, in conformity with accounting principles generally accepted
in the United States.
Ernst & Young LLP
Minneapolis, Minnesota
March 17, 2000
<PAGE>
<TABLE>
<CAPTION>
American Enterprise Variable Annuity Account -- American Express Signature
Variable Annuity(SM)
Statements of Net Assets
December 31, 1999
Segregated Asset Subaccounts
Assets ESI ECR EMS EIA EMG
Investments in shares of mutual funds and
portfolios:
<S> <C> <C> <C> <C> <C>
at cost $ 11,651,363 $ 10,984,992 $ 1,110,118 $ 6,759 $ 11,427,222
------------ ------------ ----------- ------- ------------
at market value $ 10,828,713 $ 13,632,953 $ 1,110,117 $ 6,752 $ 12,406,820
Dividends receivable 66,241 -- 5,329 1,078 --
Accounts receivable from American Enterprise
Life for contracct purchase payments -- 27,305 -- -- --
Receivable from mutual funds and portfolios
for share redemptions -- -- -- -- --
---- ----- ----- --- -----
Total assets 10,894,954 13,660,258 1,115,446 7,830 12,406,820
========== ========== ========= ===== ==========
Liabilities
Payable to American Enterprise Life for:
Mortality and expense risk fee 11,459 14,364 1,274 93 13,107
Issue and adminstrative fee 1,375 1,724 153 11 1,573
Contract terminations 61,819 -- -- -- 1,945
Payable to mutual funds and portfolios for
investments purchased -- -- -- -- --
----- ---- --- -- -----
Total liabilities 74,653 16,088 1,427 104 16,625
------ ------ ----- --- ------
Net assets applicable to contracts in
accumulation period 10,817,495 13,637,782 1,114,004 7,726 12,385,565
Net assets applicable to contracts in payment
period 2,806 6,388 15 -- 4,630
----- ----- -- ----- -----
Total net assets $ 10,820,301 $ 13,644,170 $ 1,114,019 $ 7,726 $ 12,390,195
------------ ------------ ----------- ------- ------------
Accumulation units outstanding 8,126,599 5,864,252 941,161 7,716 5,985,403
========= ========= ======= ===== =========
Net asset value per accumulation unit $ 1.33 $ 2.33 $ 1.18 $ 1.00 $ 2.07
====== ====== ====== ====== ======
Assets EGD ECA ECD EVA EPP
Investments in shares of mutual funds and portfolios:
at cost $ 2,802,524 $ 71,183 $ 1,591 $ 8,003,320 $ 61,509
----------- -------- ------- ----------- --------
at market value $ 3,689,151 $ 80,940 $ 1,855 $ 9,698,008 $ 65,331
Dividends receivable -- -- -- -- --
Accounts receivable from American Enterprise
Life for contract purchase payments -- -- -- -- --
Receivable from mutual funds and portfolios
for share redemptions -- 70 1 27,675 43
----- -- - ------ --
Total assets 3,689,151 81,010 1,856 9,725,683 65,374
========= ====== ===== ========= ======
Liabilities
Payable to American Enterprise Life for:
Mortality and expense risk fee 3,694 63 1 10,001 38
Issue and adminstrative fee 443 7 -- 1,200 5
Contract terminations 401 -- -- 16,474 --
Payable to mutual funds and portfolios for
investments purchased -- -- -- -- --
--- -- -- ---- --
Total liabilities 4,538 70 1 27,675 43
----- -- - ------ --
Net assets applicable to contracts in
accumulation period 3,684,613 80,940 1,855 9,698,008 65,331
Net assets applicable to contracts in payment
period -- -- -- -- --
------ ---- --- ------ ----
Total net assets $ 3,684,613 $ 80,940 $ 1,855 $ 9,698,008 $ 65,331
----------- -------- ------- ----------- --------
Accumulation units outstanding 2,140,748 56,612 1,469 5,637,595 55,616
========= ====== ===== ========= ======
Net asset value per accumulation unit $ 1.72 $ 1.43 $ 1.26 $ 1.72 $ 1.17
====== ====== ====== ====== ======
Assets ETC EHG EAS EFG EFM
Investments in shares of mutual funds and portfolios:
at cost $ 129,401 $ 7,310 $ 33,298 $ 72,435 $ 48,285
--------- ------- -------- -------- --------
at market value $ 147,050 $ 7,271 $ 36,704 $ 75,207 $ 54,974
Dividends receivable -- -- -- -- --
Accounts receivable from American Enterprise
Life for contract purchase payments 1 -- -- -- 60
Receivable from mutual funds and portfolios
for share redemptions 125 9 29 72 47
--- - -- -- --
Total assets 147,176 7,280 36,733 75,279 55,081
======= ===== ====== ====== ======
Liabilities
Payable to American Enterprise Life for:
Mortality and expense risk fee 112 8 26 64 42
Issue and adminstrative fee 13 1 3 8 5
Contract terminations -- -- -- -- --
Payable to mutual funds and portfolios for
investments purchased 1 -- -- -- 60
- -- -- -- --
Total liabilities 126 9 29 72 107
--- - -- -- ---
Net assets applicable to contracts in
accumulation period 147,050 7,271 36,704 75,207 54,974
Net assets applicable to contracts in payment
period -- -- -- -- --
----- ---- ---- ---- ----
Total net assets $ 147,050 $ 7,271 $ 36,704 $ 75,207 $ 54,974
========= ======= ======== ======== ========
Accumulation units outstanding 105,175 7,282 30,841 71,445 44,234
======= ===== ====== ====== ======
Net asset value per accumulation unit $ 1.40 $ 1.00 $ 1.19 $ 1.05 $ 1.24
====== ====== ====== ====== ======
Assets EFO ERE EMU EIS JCG
Investments in shares of mutual funds and portfolios:
at cost $ 34,348 $ 867 $ 31,535 $ 867 $ 246,690
-------- ----- -------- ----- ---------
at market value $ 40,260 $ 859 $ 32,322 $ 910 $ 261,211
Dividends receivable -- -- -- -- --
Accounts receivable from American Enterprise
Life for contract purchase payments -- -- 52 -- --
Receivable from mutual funds and portfolios
for share redemptions 133 1 18 1 248
--- - -- - ---
Total assets 40,393 860 32,392 911 261,459
====== === ====== === =======
Liabilities
Payable to American Enterprise Life for:
Mortality and expense risk fee 119 1 16 1 221
Issue and adminstrative fee 14 -- 2 -- 27
Contract terminations -- -- -- -- --
Payable to mutual funds and portfolios for
investments purchased -- -- 52 -- --
---- --- --- --- ---
Total liabilities 133 1 70 1 248
--- - -- - ---
Net assets applicable to contracts in
accumulation period 40,260 859 32,322 910 261,211
Net assets applicable to contracts in payment
period -- -- -- -- --
------ ---- ---- ---- ------
Total net assets $ 40,260 $ 859 $ 32,322 $ 910 $ 261,211
======== ===== ======== ===== =========
Accumulation units outstanding 32,631 889 30,888 890 226,060
====== === ====== === =======
Net asset value per accumulation unit $ 1.23 $ 0.97 $ 1.05 $ 1.02 $ 1.16
====== ====== ====== ====== ======
Assets JUS JGL JIF EDE ERQ
Investments in shares of mutual funds and portfolios:
at cost $ 515,769 $ 34,464 $ 36,698 $ 54,747 $ 1,196
--------- -------- -------- -------- -------
at market value $ 539,763 $ 33,287 $ 38,640 $ 54,066 $ 1,203
Dividends receivable -- -- -- -- --
Accounts receivable from American Enterprise
Life for contract purchase payments -- -- -- -- --
Receivable from mutual funds and portfolios
for share redemptions 429 38 39 45 1
--- -- -- -- -
Total assets 540,192 33,325 38,679 54,111 1,204
======= ====== ====== ====== =====
Liabilities
Payable to American Enterprise Life for:
Mortality and expense risk fee 383 34 35 40 1
Issue and adminstrative fee 46 4 4 5 --
Contract terminations -- -- -- -- --
Payable to mutual funds and portfolios for
investments purchased -- -- -- -- --
--- --- --- --- --
Total liabilities 429 38 39 45 1
--- -- -- -- -
Net assets applicable to contracts in
accumulation period 539,763 33,287 38,640 54,066 1,203
Net assets applicable to contracts in payment
period -- -- -- -- --
----- ---- ----- ---- ----
Total net assets $ 539,763 $ 33,287 $ 38,640 $ 54,066 $ 1,203
========= ======== ======== ======== =======
Accumulation units outstanding 480,470 34,328 30,495 50,706 1,190
======= ====== ====== ====== =====
Net asset value per accumulation unit $ 1.12 $ 0.97 $ 1.27 $ 1.07 $ 1.01
====== ====== ====== ====== ======
Assets ERI END ERS EUT EPG
Investments in shares of mutual funds and portfolios:
at cost $ 1,169 $ 77,260 $ 263,600 $ 34,419 $ 5,335,763
------- -------- --------- -------- -----------
at market value $ 1,270 $ 93,788 $ 281,042 $ 36,290 $ 5,082,976
Dividends receivable -- -- -- -- --
Accounts receivable from American Enterprise
Life for contract purchase payments -- -- -- -- 21,459
Receivable from mutual funds and portfolios
for share redemptions 2 79 143 25 5,781
- -- --- -- -----
Total assets 1,272 93,867 281,185 36,315 5,110,216
===== ====== ======= ====== =========
Liabilities
Payable to American Enterprise Life for:
Mortality and expense risk fee 2 70 128 22 5,162
Issue and adminstrative fee -- 9 15 3 619
Contract terminations -- -- -- -- --
Payable to mutual funds and portfolios for
investments purchased -- -- -- -- 21,459
--- --- ---- --- ------
Total liabilities 2 79 143 25 27,240
- -- --- -- ------
Net assets applicable to contracts in
accumulation period 1,270 93,788 281,042 36,290 5,082,976
Net assets applicable to contracts in payment
period -- -- -- -- --
---- ---- ---- ---- ----
Total net assets $ 1,270 $ 93,788 $ 281,042 $ 36,290 $ 5,082,976
======= ======== ========= ======== ===========
Accumulation units outstanding 1,184 63,944 241,943 30,180 4,302,357
===== ====== ======= ====== =========
Net asset value per accumulation unit $ 1.07 $ 1.47 $ 1.16 $ 1.20 $ 1.18
====== ====== ====== ====== ======
Assets EPL EPN EMC EPR EIC
Investments in shares of mutual funds and portfolios:
at cost $ 421,932 $ 43,126 $ 42,113 $ 1,300 $ 35,030
--------- -------- -------- ------- --------
at market value $ 461,834 $ 53,689 $ 42,610 $ 1,267 $ 41,956
Dividends receivable -- -- -- -- --
Accounts receivable from American Enterprise
Life for contract purchase payments 3 -- -- -- --
Receivable from mutual funds and portfolios
for share redemptions 322 78 37 1 35
--- -- -- - --
Total assets 462,159 53,767 42,647 1,268 41,991
======= ====== ====== ===== ======
Liabilities
Payable to American Enterprise Life for:
Mortality and expense risk fee 288 50 33 1 31
Issue and adminstrative fee 34 6 4 -- 4
Contract terminations -- 22 -- -- --
Payable to mutual funds and portfolios for
investments purchased 3 -- -- -- --
- --- ---- --- ---
Total liabilities 325 78 37 1 35
--- -- -- - --
Net assets applicable to contracts in
accumulation period 461,834 53,689 42,610 1,267 41,956
Net assets applicable to contracts in payment
period -- -- -- -- --
----- ---- ---- --- ----
Total net assets $ 461,834 $ 53,689 $ 42,610 $ 1,267 $ 41,956
========= ======== ======== ======= ========
Accumulation units outstanding 346,626 35,084 37,088 1,208 27,774
======= ====== ====== ===== ======
Net asset value per accumulation unit $ 1.33 $ 1.53 $ 1.15 $ 1.05 $ 1.51
====== ====== ====== ====== ======
Combined
Variable
Assets EUC EEG Account
Investments in shares of mutual funds and portfolios:
at cost $ 20,937 $ 6,882 $ 53,652,022
-------- ------- ------------
at market value $ 22,183 $ 7,393 $ 58,970,665
Dividends receivable -- -- 72,648
Accounts receivable from American Enterprise
Life for contract purchase payments -- -- 48,880
Receivable from mutual funds and portfolios
for share redemptions 16 4 35,547
-- - ------
Total assets 22,199 7,397 59,127,740
====== ===== ==========
Liabilities
Payable to American Enterprise Life for:
Mortality and expense risk fee 14 4 61,002
Issue and adminstrative fee 2 -- 7,319
Contract terminations -- -- 80,661
Payable to mutual funds and portfolios for
investments purchased -- -- 21,575
--- --- ------
Total liabilities 16 4 170,557
-- - -------
Net assets applicable to contracts in accumulation
period 22,183 7,393 58,943,344
Net assets applicable to contracts in payment
period -- -- 13,839
--- --- ------
Total net assets $ 22,183 $ 7,393 $ 58,957,183
======== ======= ============
Accumulation units outstanding 19,249 5,626
====== =====
Net asset value per accumulation unit $ 1.15 $ 1.31
====== ======
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
American Enterprise Variable Annuity Account -- American Express Signature
Variable Annuity(SM)
Statements of Operations
Period ended December 31, 1999
Segregated Asset Subaccounts
Investment income ESI ECR EMS EIA1 EMG
<S> <C> <C> <C> <C> <C>
Dividend income from mutual funds and portfolios $ 639,680 $ 1,220,605 $ 49,468 $ 1,149 $ 773,979
--------- ----------- -------- ------- ---------
Expenses:
Mortality and expense risk fee 116,344 140,485 13,300 103 128,811
Administrative charge 13,961 16,857 1,596 12 15,458
------ ------ ----- -- ------
Total expenses 130,305 157,342 14,896 115 144,269
------- ------- ------ --- -------
Investment income (loss) - net 509,375 1,063,263 34,572 1,034 629,710
======= ========= ====== ===== =======
Realized and unrealized gain (loss) on investments - net
Realized gain (loss) on
sales of investments in mutual funds and portfolios:
Proceeds from sales 519,183 775,040 3,469,740 351,891 674,233
Cost of investments sold 557,599 641,397 3,469,746 352,546 642,429
------- ------- --------- ------- -------
Net realized gain (loss) on investments (38,416) 133,643 (6) (655) 31,804
Net change in unrealized appreciation or
depreciation of investments (431,444) 1,170,550 (4) (7) 705,266
-------- --------- -- -- -------
Net gain (loss) on investments (469,860) 1,304,193 (10) (662) 737,070
-------- --------- --- ---- -------
Net increase (decrease) in net assets resulting
from operations $39,515 $ 2,367,456 $ 34,562 $ 372 $ 1,366,780
======= =========== ======== ===== ===========
1For the period Aug. 26, 1999 (commencement of operations) to Dec. 31, 1999.
Investment income EGD ECA1 ECD2 EVA EPP2
Dividend income from mutual funds and portfolios $ 32,955 $ 1,195 $-- $ 154,339 $--
-------- ------- - --------- -
Expenses:
Mortality and expense risk fee 29,409 105 3 67,218 54
Administrative charge 3,529 12 -- 8,066 7
----- -- ----- -
Total expenses 32,938 117 3 75,284 61
------ --- - ------ --
Investment income (loss) - net 17 1,078 (3) 79,055 (61)
== ===== == ====== ===
Realized and unrealized gain (loss) on investments - net
Realized gain (loss) on
sales of investments in mutual funds and portfolios:
Proceeds from sales 141,571 175 3 136,790 3,526
Cost of investments sold 116,987 157 3 119,888 3,388
------- --- - ------- -----
Net realized gain (loss) on investments 24,584 18 -- 16,902 138
Net change in unrealized appreciation or
depreciation of investments 694,325 9,757 264 1,432,915 3,822
------- ----- --- --------- -----
Net gain (loss) on investments 718,909 9,775 264 1,449,817 3,960
------- ----- --- --------- -----
Net increase (decrease) in net assets resulting
from operations $ 718,926 $ 10,853 $ 261 $ 1,528,872 $ 3,899
========= ======== ===== =========== =======
1For the period Aug. 26, 1999 (commencement of operations) to Dec. 31, 1999.
2For the period Sept. 22, 1999 (commencement of operations) to Dec. 31, 1999.
Investment income ETC1 EHG1 EAS1 EFG1 EFM1
Dividend income from mutual funds and portfolios $-- $-- $-- $-- $ 341
---- ----- --- --- ----
Expenses:
Mortality and expense risk fee 136 15 32 118 62
Administrative charge 16 2 4 14 8
-- - - -- -
Total expenses 152 17 36 132 70
--- -- -- --- --
Investment income (loss) - net (152) (17) (36) (132) 271
==== === === ==== ===
Realized and unrealized gain (loss) on investments - net
Realized gain (loss) on
sales of investments in mutual funds and portfolios:
Proceeds from sales 7,260 17 36 3,535 7,011
Cost of investments sold 7,201 17 33 3,409 6,911
----- -- -- ----- -----
Net realized gain (loss) on investments 59 -- 3 126 100
Net change in unrealized appreciation or
depreciation of investments 17,649 (39) 3,406 2,772 6,689
------ --- ----- ----- -----
Net gain (loss) on investments 17,708 (39) 3,409 2,898 6,789
------ --- ----- ----- -----
Net increase (decrease) in net assets resulting
from operations $ 17,556 $ (56) $ 3,373 $ 2,766 $ 7,060
======== ===== ======= ======= =======
1For the period Sept. 22,1999 (commencement of operations) to Dec. 31, 1999.
Investment income EFO1 ERE1 EMU1 EIS1 JCG1
Dividend income from mutual funds and portfolios $-- $-- $-- $-- $ 5,181
---- ---- ----- --- -----
Expenses:
Mortality and expense risk fee 352 3 18 3 341
Administrative charge 42 -- 2 -- 41
-- --- - --- --
Total expenses 394 3 20 3 382
--- - -- - ---
Investment income (loss) - net (394) (3) (20) (3) 4,799
==== == === == =====
Realized and unrealized gain (loss) on investments - net
Realized gain (loss) on
sales of investments in mutual funds and portfolios:
Proceeds from sales 170,378 3 28 3 249
Cost of investments sold 152,684 3 28 3 235
------- - -- - ---
Net realized gain (loss) on investments 17,694 -- -- -- 14
Net change in unrealized appreciation or
depreciation of investments 5,912 (8) 787 43 14,521
----- -- --- -- ------
Net gain (loss) on investments 23,606 (8) 787 43 14,535
------ -- --- -- ------
Net increase (decrease) in net assets resulting
from operations $ 23,212 $ (11) $ 767 $ 40 $ 19,334
======== ===== ===== ==== ========
1For the period Sept. 22,1999 (commencement of operations) to Dec. 31, 1999.
Investment income JUS1 JGL1 JIF1 EDE1 ERQ1
Dividend income from mutual funds and portfolios $ 4,261 $ 1,258 $ 2,396 $ 2,464 $ 40
------- ------- ------- ------- ----
Expenses:
Mortality and expense risk fee 514 60 58 56 4
Administrative charge 62 7 7 7 --
-- - - - --
Total expenses 576 67 65 63 4
--- -- -- -- -
Investment income (loss) - net 3,685 1,191 2,331 2,401 36
===== ===== ===== ===== ==
Realized and unrealized gain (loss) on investments - net
Realized gain (loss) on
sales of investments in mutual funds and portfolios:
Proceeds from sales 36,031 65,197 101 3,431 4
Cost of investments sold 34,985 65,023 95 3,336 4
------ ------ -- ----- -
Net realized gain (loss) on investments 1,046 174 6 95 --
Net change in unrealized appreciation or
depreciation of investments 23,994 (1,177) 1,942 (681) 7
------ ------ ----- ---- -
Net gain (loss) on investments 25,040 (1,003) 1,948 (586) 7
------ ------ ----- ---- -
Net increase (decrease) in net assets resulting
from operations $ 28,725 $ 188 $ 4,279 $ 1,815 $ 43
======== ===== ======= ======= ====
1For the period Sept. 22,1999 (commencement of operations) to Dec. 31, 1999.
Investment income ERI1 END1 ERS1 EUT1 EPG
Dividend income from mutual funds and portfolios $ 13 $ 1,640 $-- $-- $ 116,237
Expenses:
Mortality and expense risk fee 4 114 140 28 33,684
Administrative charge -- 14 17 3 4,042
-- -- -- - -----
Total expenses 4 128 157 31 37,726
- --- --- -- ------
Investment income (loss) - net 9 1,512 (157) (31) 78,511
= ===== ==== === ======
Realized and unrealized gain (loss) on investments - net
Realized gain (loss) on
sales of investments in mutual funds and portfolios:
Proceeds from sales 4 128 3,520 31 194,641
Cost of investments sold 4 107 3,409 30 200,699
- --- ----- -- -------
Net realized gain (loss) on investments -- 21 111 1 (6,058)
Net change in unrealized appreciation or
depreciation of investments 101 16,528 17,442 1,871 (265,626)
--- ------ ------ ----- --------
Net gain (loss) on investments 101 16,549 17,553 1,872 (271,684)
--- ------ ------ ----- --------
Net increase (decrease) in net assets resulting
from operations $ 110 $ 18,061 $ 17,396 $ 1,841 $ (193,173)
===== ======== ======== ======= ==========
1For the period Sept. 22,1999 (commencement of operations) to Dec. 31, 1999.
Investment income EPL1 EPN1 EMC1 EPR1 EIC1
Dividend income from mutual funds and portfolios $-- $-- $ 2,694 $ 144 $--
--- -- ------- ----- ---
Expenses:
Mortality and expense risk fee 563 63 41 4 37
Administrative charge 68 8 5 -- 4
-- - - -
Total expenses 631 71 46 4 41
--- -- -- - --
Investment income (loss) - net (631) (71) 2,648 140 (41)
==== === ===== === ===
Realized and unrealized gain (loss) on investments - net
Realized gain (loss) on
sales of investments in mutual funds and portfolios:
Proceeds from sales 183,965 1,934 46 4 41
Cost of investments sold 155,333 1,853 46 4 35
------- ----- -- - --
Net realized gain (loss) on investments 28,632 81 -- -- 6
Net change in unrealized appreciation or
depreciation of investments 39,902 10,563 497 (33) 6,926
------ ------ --- --- -----
Net gain (loss) on investments 68,534 10,644 497 (33) 6,932
------ ------ --- --- -----
Net increase (decrease) in net assets resulting
from operations $ 67,903 $ 10,573 $ 3,145 $ 107 $ 6,891
======== ======== ======= ===== =======
1For the period Sept. 22,1999 (commencement of operations) to Dec. 31, 1999.
Combined
Variable
Investment income EUC1 EEG1 Account
Dividend income from mutual funds and portfolios $-- $ 13 $ 3,010,052
--- ---- -----------
Expenses:
Mortality and expense risk fee 17 6 532,305
Administrative charge 2 1 63,874
- - ------
Total expenses 19 7 596,179
-- - -------
Investment income (loss) - net (19) 6 2,413,873
=== = =========
Realized and unrealized gain (loss) on investments - net
Realized gain (loss) on
sales of investments in mutual funds and portfolios:
Proceeds from sales 19 7 6,749,776
Cost of investments sold 18 7 6,539,652
-- - ---------
Net realized gain (loss) on investments 1 -- 210,124
Net change in unrealized appreciation or
depreciation of investments 1,246 511 3,491,189
----- --- ---------
Net gain (loss) on investments 1,247 511 3,701,313
----- --- ---------
Net increase (decrease) in net assets resulting
from operations $ 1,228 $ 517 $ 6,115,186
======= ===== ===========
1For the period Sept. 22,1999 (commencement of operations) to Dec. 31, 1999.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
American Enterprise Variable Annuity Account -- American Express Signature
Variable Annuity(SM)
Statements of Changes in Net Assets
Period ended December 31, 1999
Segregated Asset Subaccounts
Operations ESI ECR EMS EIA1 EMG
<S> <C> <C> <C> <C> <C>
Investment income (loss) - net $ 509,375 $ 1,063,263 $ 34,572 $ 1,034 $ 629,710
Net realized gain (loss) on investments (38,416) 133,643 (6) (655) 31,804
Net change in unrealized appreciation or
depreciation of investments (431,444) 1,170,550 (4) (7) 705,266
-------- --------- -- -- -------
Net increase (decrease) in net assets resulting
from operations 39,515 2,367,456 34,562 372 1,366,780
====== ========= ====== === =========
Contract transactions
Contract purchase payments 2,364,485 1,613,826 327,820 5,191 1,698,764
Net transfers2 1,661,343 889,541 920,070 2,163 1,651,501
Annuity payments (143) (473) -- -- (257)
Contract terminations:
Surrender benefits and contract charges (643,436) (978,721) (1,027,233) -- (777,693)
Death benefits (155,072) (92,582) -- -- (113,085)
-------- ------- ------ ---- --------
Increase (decrease) from contract transactions 3,227,177 1,431,591 220,657 7,354 2,459,230
--------- --------- ------- ----- ---------
Net assets at beginning of year 7,553,609 9,845,123 858,800 -- 8,564,185
--------- --------- ------- ---------
Net assets at end of year $ 10,820,301 $ 13,644,170 $ 1,114,019 $ 7,726 $ 12,390,195
============ ============ =========== ======= ============
Accumulation unit activity
Units outstanding at beginning of year 5,688,915 5,163,185 749,301 -- 4,684,466
Contract purchase payments 1,802,413 806,674 279,813 5,303 906,505
Net transfers2 1,255,338 436,406 788,973 2,413 874,349
Contract terminations:
Surrender benefits and contract charges (503,166) (490,112) (876,926) -- (420,370)
Death benefits (116,901) (51,901) -- -- (59,547)
-------- ------- -------
Units outstanding at end of year 8,126,599 5,864,252 941,161 7,716 5,985,403
========= ========= ======= ===== =========
1For the period Aug. 26, 1999 (commencement of operations) to Dec. 31, 1999.
2Includes transfer activity from (to) other subaccounts and transfers from (to)
American Enterprise Life's fixed account.
Operations EGD ECA1 ECD2 EVA EPP2
Investment income (loss) - net $ 17 $ 1,078 $ (3) $ 79,055 $ (61)
Net realized gain (loss) on investments 24,584 18 -- 16,902 138
Net change in unrealized appreciation or
depreciation of investments 694,325 9,757 264 1,432,915 3,822
------- ----- --- --------- -----
Net increase (decrease) in net assets resulting
from operations 718,926 10,853 261 1,528,872 3,899
======= ====== === ========= =====
Contract transactions
Contract purchase payments 1,253,933 63,183 870 3,650,384 32,039
Net transfers3 409,913 6,962 724 2,416,621 29,393
Annuity payments -- -- -- -- --
Contract terminations:
Surrender benefits and contract charges (132,862) (58) -- (259,654) --
Death benefits (30,780) -- -- (27,190) --
------- -------
Increase (decrease) from contract transactions 1,500,204 70,087 1,594 5,780,161 61,432
--------- ------ ----- --------- ------
Net assets at beginning of year 1,465,483 -- -- 2,388,975 --
--------- ---------
Net assets at end of year $ 3,684,613 $ 80,940 $ 1,855 $ 9,698,008 $ 65,331
=========== ======== ======= =========== ========
Accumulation unit activity
Units outstanding at beginning of year 1,108,323 -- -- 1,778,901 --
Contract purchase payments 882,440 51,342 887 2,548,626 29,157
Net transfers3 288,019 5,312 582 1,606,765 26,459
Contract terminations:
Surrender benefits and contract charges (117,217) (42) -- (278,884) --
Death benefits (20,817) -- -- (17,813) --
------- ----- ---- ------- ----
Units outstanding at end of year 2,140,748 56,612 1,469 5,637,595 55,616
========= ====== ===== ========= ======
1For the period Aug. 26, 1999 (commencement of operations) to Dec. 31, 1999.
2For the period Sept. 22, 1999 (commencement of operations) to Dec. 31, 1999.
3Includes transfer activity from (to) other subaccounts and transfers from (to)
American Enterprise Life's fixed account.
Operations ETC1 EHG1 EAS1 EFG1 EFM1
Investment income (loss) - net $ (152) $ (17) $ (36) $ (132) $ 271
Net realized gain (loss) on investments 59 -- 3 126 100
Net change in unrealized appreciation or
depreciation of investments 17,649 (39) 3,406 2,772 6,689
------ --- ----- ----- -----
Net increase (decrease) in net assets resulting
from operations 17,556 (56) 3,373 2,766 7,060
====== === ===== ===== =====
Contract transactions
Contract purchase payments 80,862 5,440 33,331 52,322 18,976
Net transfers2 48,691 1,887 -- 20,119 28,938
Annuity payments -- -- -- -- --
Contract terminations:
Surrender benefits and contract charges (59) -- -- -- --
Death benefits -- -- -- -- --
------ --- ------ ----- ----
Increase (decrease) from contract transactions 129,494 7,327 33,331 72,441 47,914
------- ----- ------ ------ ------
Net assets at beginning of year -- -- -- -- --
----- ----- ------ ----- -----
Net assets at end of year $ 147,050 $ 7,271 $ 36,704 $ 75,207 $ 54,974
========= ======= ======== ======== ========
Accumulation unit activity
Units outstanding at beginning of year -- -- -- -- --
Contract purchase payments 67,333 5,404 30,841 51,905 18,546
Net transfers2 37,885 1,878 -- 19,540 25,688
Contract terminations:
Surrender benefits and contract charges (43) -- -- -- --
Death benefits -- -- -- -- --
------ ---- ---- ---- -----
Units outstanding at end of year 105,175 7,282 30,841 71,445 44,234
======= ===== ====== ====== ======
1For the period Sept. 22, 1999 (commencement of operations) to Dec. 31, 1999.
2Includes transfer activity from (to) other subaccounts and transfers from (to)
American Enterprise Life's fixed account.
Operations EFO1 ERE1 EMU1 EIS1 JCG1
Investment income (loss) - net $ (394) $ (3) $ (20) $ (3) $ 4,799
Net realized gain (loss) on investments 17,694 -- -- -- 14
Net change in unrealized appreciation or
depreciation of investments 5,912 (8) 787 43 14,521
----- -- --- -- ------
Net increase (decrease) in net assets resulting
from operations 23,212 (11) 767 40 19,334
====== === === == ======
Contract transactions
Contract purchase payments 33,832 870 1,178 870 122,121
Net transfers2 (16,784) -- 30,377 -- 119,756
Annuity payments -- -- -- -- --
Contract terminations:
Surrender benefits and contract charges -- -- -- -- --
Death benefits -- -- -- -- --
----- --- ----- ---- -----
Increase (decrease) from contract transactions 17,048 870 31,555 870 241,877
------ --- ------ --- -------
Net assets at beginning of year -- -- -- -- --
----- --- ---- ---- ----
Net assets at end of year $ 40,260 $ 859 $ 32,322 $ 910 $ 261,211
======== ===== ======== ===== =========
Accumulation unit activity
Units outstanding at beginning of year -- -- -- -- --
Contract purchase payments 29,861 889 1,194 890 115,561
Net transfers2 2,770 -- 29,694 -- 110,499
Contract terminations:
Surrender benefits and contract charges -- -- -- -- --
Death benefits -- -- -- -- --
---- --- ----- --- ------
Units outstanding at end of year 32,631 889 30,888 890 226,060
====== === ====== === =======
1For the period Sept. 22, 1999 (commencement of operations) to Dec. 31, 1999.
2Includes transfer activity from (to) other subaccounts and transfers from (to)
American Enterprise Life's fixed account.
Operations JUS1 JGL1 JIF1 EDE1 ERQ1
Investment income (loss) - net $ 3,685 $ 1,191 $ 2,331 $ 2,401 $ 36
Net realized gain (loss) on investments 1,046 174 6 95 --
Net change in unrealized appreciation or
depreciation of investments 23,994 (1,177) 1,942 (681) 7
------ ------ ----- ---- -
Net increase (decrease) in net assets resulting
from operations 28,725 188 4,279 1,815 43
====== === ===== ===== ==
Contract transactions
Contract purchase payments 401,524 21,346 11,840 40,435 1,160
Net transfers2 109,571 11,753 22,521 11,816 --
Annuity payments -- -- -- -- --
Contract terminations:
Surrender benefits and contract charges (57) -- -- -- --
Death benefits -- -- -- -- --
----- --- ---- ----- ----
Increase (decrease) from contract transactions 511,038 33,099 34,361 52,251 1,160
------- ------ ------ ------ -----
Net assets at beginning of year -- -- -- -- --
------ ---- ----- ----- -----
Net assets at end of year $ 539,763 $ 33,287 $ 38,640 $ 54,066 $ 1,203
========= ======== ======== ======== =======
Accumulation unit activity
Units outstanding at beginning of year -- -- -- -- --
Contract purchase payments 376,243 22,245 11,022 39,144 1,190
Net transfers2 104,278 12,083 19,473 11,562 --
Contract terminations:
Surrender benefits and contract charges (51) -- -- -- --
Death benefits -- -- -- -- --
--- ---- --- ----- ----
Units outstanding at end of year 480,470 34,328 30,495 50,706 1,190
======= ====== ====== ====== =====
1For period Sept. 22, 1999 (commencemenet of operations) to Dec. 31, 1999.
2Includes transfer activity from (to) other subaccounts and transfers from (to)
American Enterprise Life's fixed account.
Operations ERI1 END1 ERS1 EUT1 EPG
Investment income (loss) - net $ 9 $ 1,512 $ (157) $ (31) $ 78,511
Net realized gain (loss) on investments -- 21 111 1 (6,058)
Net change in unrealized appreciation or
depreciation of investments 101 16,528 17,442 1,871 (265,626)
--- ------ ------ ----- --------
Net increase (decrease) in net assets resulting
from operations 110 18,061 17,396 1,841 (193,173)
=== ====== ====== ===== ========
Contract transactions
Contract purchase payments 1,160 75,476 227,648 22,501 2,903,937
Net transfers2 -- 251 35,998 12,005 2,189,715
Annuity payments -- -- -- -- --
Contract terminations:
Surrender benefits and contract charges -- -- -- (57) (79,588)
Death benefits -- -- -- -- (20,046)
----- ----- ----- ---- -------
Increase (decrease) from contract transactions 1,160 75,727 263,646 34,449 4,994,018
----- ------ ------- ------ ---------
Net assets at beginning of year -- -- -- -- 282,131
---- ----- ------ ----- -------
Net assets at end of year $ 1,270 $ 93,788 $ 281,042 $ 36,290 $ 5,082,976
======= ======== ========= ======== ===========
Accumulation unit activity
Units outstanding at beginning of year -- -- -- -- 238,893
Contract purchase payments 1,184 63,747 209,115 19,749 2,446,691
Net transfers2 -- 197 32,828 10,479 1,788,367
Contract terminations:
Surrender benefits and contract charges -- -- -- (48) (155,678)
Death benefits -- -- -- -- (15,916)
---- ---- --- ---- -------
Units outstanding at end of year 1,184 63,944 241,943 30,180 4,302,357
===== ====== ======= ====== =========
1For the period Sept. 22, 1999 (commencement of operations) to Dec. 31, 1999.
2Includes transfer activity from (to) other subaccounts and transfers from (to)
American Enterprise Life's fixed account.
Operations EPL1 EPN1 EMC1 EPR1 EIC1
Investment income (loss) - net $ (631) $ (71) $ 2,648 $ 140 $ (41)
Net realized gain (loss) on investments 28,632 81 -- -- 6
Net change in unrealized appreciation or
depreciation of investments 39,902 10,563 497 (33) 6,926
------ ------ --- --- -----
Net increase (decrease) in net assets resulting
from operations 67,903 10,573 3,145 107 6,891
====== ====== ===== === =====
Contract transactions
Contract purchase payments 70,121 30,681 19,922 1,160 35,065
Net transfers2 323,810 12,495 19,543 -- --
Annuity payments -- -- -- -- --
Contract terminations:
Surrender benefits and contract charges -- (60) -- -- --
Death benefits -- -- -- -- --
----- ----- ---- ---- -----
Increase (decrease) from contract transactions 393,931 43,116 39,465 1,160 35,065
------- ------ ------ ----- ------
Net assets at beginning of year -- -- -- -- --
----- ---- ---- ----- -----
Net assets at end of year $ 461,834 $ 53,689 $ 42,610 $ 1,267 $ 41,956
========= ======== ======== ======= ========
Accumulation unit activity
Units outstanding at beginning of year -- -- -- -- --
Contract purchase payments 61,197 25,283 18,922 1,208 27,774
Net transfers2 285,429 9,842 18,166 -- --
Contract terminations:
Surrender benefits and contract charges -- (41) -- -- --
Death benefits -- -- -- -- --
------ ---- ----- ----- -----
Units outstanding at end of year 346,626 35,084 37,088 1,208 27,774
======= ====== ====== ===== ======
1For the period Sept. 22, 1999 (commencement of operations) to Dec. 31, 1999.
2Includes transfer activity from (to) other subaccounts and transfers from (to)
American Enterprise Life's fixed account.
Combined
Variable
Operations EUC1 EEG1 Account
Investment income (loss) - net $ (19) $ 6 $ 2,413,873
Net realized gain (loss) on investments 1 -- 210,124
Net change in unrealized appreciation or
depreciation of investments 1,246 511 3,491,189
----- --- ---------
Net increase (decrease) in net assets resulting
from operations 1,228 517 6,115,186
===== === =========
Contract transactions
Contract purchase payments 1,412 1,161 15,226,846
Net transfers2 19,543 5,715 10,995,951
Annuity payments -- -- (873)
Contract terminations:
Surrender benefits and contract charges -- -- (3,899,478)
Death benefits -- -- (438,755)
---- ----- --------
Increase (decrease) from contract transactions 20,955 6,876 21,883,691
------ ----- ----------
Net assets at beginning of year -- -- 30,958,306
----- --- ----------
Net assets at end of year $ 22,183 $ 7,393 $ 58,957,183
Accumulation unit activity
Units outstanding at beginning of year -- --
Contract purchase payments 1,394 1,180
Net transfers2 17,855 4,446
Contract terminations:
Surrender benefits and contract charges -- --
Death benefits -- --
----- ---
Units outstanding at end of year 19,249 5,626
====== =====
1For the period Sept. 22, 1999 (commencement of operations) to Dec. 31, 1999.
2Includes transfer activity from (to) other subaccounts and transfers from (to)
American Enterprise Life's fixed account.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
American Enterprise Variable Annuity Account
Statements of Changes in Net Assets
Period ended December 31, 1998
Segregated Asset Subaccounts
Operations ESI ECR EMS EMG EGD EVA
<S> <C> <C> <C> <C> <C> <C>
Investment income (loss) - net $338,547 $598,178 $ 21,695 $ 794,837 $ (4,574) $ 90,940
Net realized gain (loss) on investments (2,867) 31,856 1 6,346 758 478
Net change in unrealized appreciation or
depreciation of investments (378,318) 957,259 3 55,365 190,924 262,764
-------- ------- - ------ ------- -------
Net increase (decrease) in net assets
resulting from operations (42,638) 1,587,293 21,699 856,548 187,108 354,182
======= ========= ====== ======= ======= =======
Contract transactions
Contract purchase payments 4,304,628 3,114,006 691,275 3,376,704 1,111,110 1,616,894
Net transfers2 243,040 (245,243) (85,043) (21,220) 126,930 381,890
Annuity payments (74) (385) -- (118) -- --
Contract terminations:
Surrender benefits and contract charges (297,229) (529,563) (28,396) (335,067) (25,802) (25,796)
Death benefits (28,304) (21,950) -- (25,390) (5,911) (5,952)
------- ------- ----- ------- ------ ------
Increase (decrease) from contract transactions 4,222,061 2,316,865 577,836 2,994,909 1,206,327 1,967,036
--------- --------- ------- --------- --------- ---------
Net assets at beginning of year 3,374,186 5,940,965 259,265 4,712,728 72,048 67,757
--------- --------- ------- --------- ------ ------
Net assets at end of year $7,553,609 $9,845,123 $858,800 $ 8,564,185 $1,465,483 $2,388,975
========== ========== ======== =========== ========== ==========
Accumulation unit activity
Units outstanding at beginning of year 2,543,718 3,812,754 231,256 2,944,208 68,572 65,875
Contracts purchase payments 3,245,320 1,848,700 635,551 2,000,537 965,321 1,418,576
Net transfers2 183,324 (146,994) (79,775) (16,062) 108,613 327,920
Contract terminations:
Surrender benefits and contract charges (262,248) (338,414) (37,731) (229,369) (29,255) (28,544)
Death benefits (21,199) (12,861) -- (14,848) (4,928) (4,926)
------- ------- ------- ------ ------
Units outstanding at end of year 5,688,915 5,163,185 749,301 4,684,466 1,108,323 1,778,901
========= ========= ======= ========= ========= =========
Combined
Variable
Operations EPG1 Account
Investment income (loss) - net $ (411) $ 1,500,665
Net realized gain (loss) on investments -- 39,439
Net change in unrealized appreciation or
depreciation of investments 12,839 1,479,154
------ ---------
Net increase (decrease) in net assets
resulting from operations 12,428 3,019,258
====== =========
Contract transactions
Contract purchase payments 217,969 10,127,958
Net transfers2 53,032 210,346
Annuity payments -- (503)
Contract terminations:
Surrender benefits and contract charges (1,298) (945,922)
Death benefits -- (59,203)
----- -------
Increase (decrease) from contract transactions 269,703 9,332,676
------- ---------
Net assets at beginning of year -- 11,052,763
------- ----------
Net assets at end of year $ 282,131 $ 23,404,697
========= ============
Accumulation unit activity
Units outstanding at beginning of year --
Contracts purchase payments 194,565
Net transfers2 45,511
Contract terminations:
Surrender benefits and contract charges (1,183)
Death benefits --
-----
Units outstanding at end of year 238,893
=======
1For the period Oct. 5, 1998 (commencement of operations) to Dec. 31, 1998.
2Includes transfer activity from (to) other subaccounts and transfers from (to)
American Enterprise Life's fixed account.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
American Enterprise Variable Annuity Account -- American Express Signature
Variable Annuity
Notes to Financial Statements
1. ORGANIZATION
American Enterprise Variable Annuity Account (the Account) was established under
Indiana law on July 15, 1987 and the subaccounts are registered together as a
single unit investment trust of American Enterprise Life Insurance Company
(American Enterprise Life) under the Investment Company Act of 1940, as amended
(the 1940 Act). Operations of the Account commenced on Feb. 21, 1995.
The Account is comprised of various subaccounts. Each subaccount invests
exclusively in shares of the following mutual funds or portfolios (collectively,
the Funds), which are registered under the 1940 Act as diversified, open-end
management investment companies and have the following investment managers.
<S> <C> <C>
Subaccount Invests exclusively in shares of Investment Manager
ESI AXPSM Variable Portfolio-- Bond Fund IDS Life Insurance Company 1
ECR AXPSM Variable Portfolio-- Capital Resource Fund IDS Life Insurance Company 1
EMS AXPSM Variable Portfolio-- Cash Management Fund IDS Life Insurance Company 1
EIA AXPSM Variable Portfolio-- Extra Income Fund IDS Life Insurance Company 1
EMG AXPSM Variable Portfolio-- Managed Fund IDS Life Insurance Company 1
EGD AXPSM Variable Portfolio-- New Dimensions Fund(R) IDS Life Insurance Company 1
ECA AIM V.I. Capital Appreciation Fund A I M Advisors, Inc.
ECD AIM V.I. Capital Development Fund A I M Advisors, Inc.
EVA AIM V.I. Value Fund A I M Advisors, Inc.
EPP Alliance VP Premier Growth Portfolio - Class B Alliance Capital Management, L.P.
ETC Alliance VP Technology Portfolio - Class B Alliance Capital Management, L.P.
EHG Alliance VP U.S. Government/High Grade Securities Alliance Capital Management, L.P.
Portfolio - Class B
EAS Baron Capital Asset Fund BAMCO, Inc.
EFG Fidelity VIP III Growth & Income Portfolio - Service Class Fidelity Management & Research Company
(FMR) 2
EFM Fidelity VIP III Mid Cap Portfolio - Service Class FMR 2
EFO Fidelity VIP Overseas Portfolio - Service Class FMR 3
ERE FTVIPT Franklin Real Estate Securities Fund - Class 2 Franklin Advisers, Inc.
EMU FTVIPT Mutual Shares Securities Fund - Class 2 Franklin Mutual Advisers, LLC
EIS FTVIPT Templeton International Smaller Companies Fund - Templeton Investment Counsel, Inc.
Class 2
JCG Goldman Sachs VIT Capital Growth Fund Goldman Sachs Asset Management
JUS Goldman Sachs VIT CORESM U.S. Equity Fund Goldman Sachs Asset Management
JGL Goldman Sachs VIT Global Income Fund Goldman Sachs Asset Management
International
JIF Goldman Sachs VIT International Equity Fund Goldman Sachs Asset Management
International
EDE J.P. Morgan U.S. Disciplined Equity Portfolio J.P. Morgan
ERQ Lazard Retirement Equity Portfolio Lazard Asset Management
ERI Lazard Retirement International Equity Portfolio Lazard Asset Management
END MFS(R) New Discovery Series Massachusetts Financial Service
Company (MFS) Investment Management(R)
ERS MFS(R)Research Series MFS Investment Management(R)
EUT MFS(R)Utilities Series MFS Investment Management(R)
EPG Putnam VT Growth and Income Fund-- Class IB Shares Putnam Investment Management, Inc.
EPL Putnam VT International Growth Fund-- Class IB Shares Putnam Investment Management, Inc.
EPN Putnam VT International New Opportunities Fund-- Class IB Putnam Investment Management, Inc.
Shares
EMC Royce Micro-Cap Portfolio Royce & Associates, Inc.
EPR Royce Premier Portfolio Royce & Associates, Inc.
EIC Wanger International Small Cap Wanger Asset Management, L.P.
EUC Wanger U.S. Small Cap Wanger Asset Management, L.P.
EEG Warburg Pincus Trust - Emerging Growth Portfolio Credit Suisse Asset Management, LLC
1 American Express Financial Corporation (AEFC) is the investment advisor.
2 FMR U.K. and FMR Far East are the sub-investment advisors.
3 FMR U.K., FMR Far East, Fidelity International Investment Advisors and FIIA
U.K. are the sub-investment advisors.
The assets of each subaccount of the Account are not chargeable with liabilities
arising out of the business conducted by any other segregated asset account or
by American Enterprise Life.
American Enterprise Life issues the contracts that are distributed by banks and
financial institutions either directly or through a network of third-party
marketers.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Investments in the Funds
Investments in shares of the Funds are stated at market value which is the net
asset value per share as determined by the respective Funds. Investment
transactions are accounted for on the date the shares are purchased and sold.
The cost of investments sold and redeemed is determined on the average cost
method. Dividend distributions received from the Funds are reinvested in
additional shares of the Funds and are recorded as income by the subaccounts on
the ex-dividend date.
Unrealized appreciation or depreciation of investments in the accompanying
financial statements represents the subaccounts' share of the Funds'
undistributed net investment income, undistributed realized gain or loss and the
unrealized appreciation or depreciation on their investment securities.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increase and decrease in net assets from
operations during the period. Actual results could differ from those estimates.
Federal Income Taxes
American Enterprise Life is taxed as a life insurance company. The Account is
treated as part of American Enterprise Life for federal income tax purposes.
Under existing federal income tax law, no income taxes are payable with respect
to any investment income of the Account.
3. MORTALITY AND EXPENSE RISK FEE
American Enterprise Life makes contractual assurances to the Account that
possible future adverse changes in administrative expenses and mortality
experience of the contract owners and annuitants will not affect the Account.
The mortality and expense risk fee paid to American Enterprise Life is computed
daily and is equal, on an annual basis, to 1.25% of the average daily net assets
of the subaccounts.
4. ADMINISTRATIVE CHARGE
American Enterprise Life deducts a daily charge equal, on an annual basis, to
0.15% of the average daily net assets of each subaccount as an administrative
charge. This charge covers certain administrative and operating expenses of the
subaccounts incurred by American Enterprise Life such as accounting, legal and
data processing fees, and expenses involved in the preparation and distribution
of reports and prospectuses. This charge cannot be increased.
5. CONTRACT ADMINISTRATIVE CHARGE
American Enterprise Life deducts a contract administrative charge of $30 per
year on each contract anniversary. This charge cannot be increased and does not
apply after annuity payouts begin. American Enterprise Life does not expect to
profit from this charge. This charge reimburses American Enterprise Life for
expenses incurred in establishing and maintaining the annuity records. This
charge is waived when the contract value is $50,000 or more on the current
contract anniversary. The $30 annual charge is deducted at the time of any full
withdrawal.
6. WITHDRAWAL CHARGE
American Enterprise Life will use a withdrawal charge to help it recover certain
expenses relating to the sale of the annuity. The withdrawal charge is deducted
for withdrawals up to the first seven payment years following a purchase
payment. Charges by American Enterprise Life for withdrawals are not identified
on an individual segregated asset account basis. Charges for all segregated
asset accounts amounted to $479,554 in 1999 and $199,062 in 1998. Such charges
are not treated as a separate expense of the subaccounts. They are ultimately
deducted from contract withdrawal benefits paid by American Enterprise Life.
This charge is waived if the withdrawal meets certain provisions as stated in
the contract.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
7. INVESTMENT IN SHARES
The subaccounts' investment in shares of the Funds as of Dec. 31, 1999 were as follows:
Subaccount Investment Shares NAV
<S> <C> <C> <C>
ESI AXPSM Variable Portfolio-- Bond Fund 1,026,989 $10.54
ECR AXPSM Variable Portfolio-- Capital Resource Fund 374,575 36.40
EMS AXPSM Variable Portfolio-- Cash Management Fund 1,110,224 1.00
EIA AXPSM Variable Portfolio-- Extra Income Fund 787 8.58
EMG AXPSM Variable Portfolio-- Managed Fund 626,098 19.82
EGD AXPSM Variable Portfolio-- New Dimensions Fund(R) 161,401 22.86
ECA AIM V.I. Capital Appreciation Fund 2,275 35.58
ECD AIM V.I. Capital Development Fund 156 11.89
EVA AIM V.I. Value Fund 289,489 33.50
EPP Alliance VP Premier Growth Portfolio - Class B 1,617 40.40
ETC Alliance VP Technology Portfolio - Class B 4,375 33.61
EHG Alliance VP U.S. Government/High Grade Securities Portfolio -
Class B 652 11.16
EAS Baron Capital Asset Fund 2,065 17.77
EFG Fidelity VIP III Growth & Income Portfolio - Service Class 4,362 17.24
EFM Fidelity VIP III Mid Cap Portfolio - Service Class 3,607 15.24
EFO Fidelity VIP Overseas Portfolio - Service Class 1,470 27.38
ERE FTVIPT Franklin Real Estate Securities Fund - Class 2 58 14.88
EMU FTVIPT Mutual Shares Securities Fund - Class 2 2,439 13.25
EIS FTVIPT Templeton International Smaller
Companies - Class 2 82 11.07
JCG Goldman Sachs VIT Capital Growth Fund 18,645 14.01
JUS Goldman Sachs VIT CORESM U.S. Equity Fund 38,610 13.98
JGL Goldman Sachs VIT Global Income Fund 3,386 9.83
JIF Goldman Sachs VIT International Equity Fund 2,670 14.47
EDE J.P. Morgan U.S. Disciplined Equity Portfolio 3,116 17.35
ERQ Lazard Retirement Equity Portfolio 104 11.53
ERI Lazard Retirement International Equity Portfolio 94 13.49
END MFS(R)New Discovery Series 5,431 17.27
ERS MFS(R)Research Series 12,041 23.34
EUT MFS(R)Utilities Series 1,502 24.16
EPG Putnam VT Growth and Income Fund-- Class IB Shares 190,018 26.75
EPL Putnam VT International Growth Fund-- Class IB Shares 21,361 21.62
EPN Putnam VT International New Opportunities Fund-- Class IB Shares 2,306 23.28
EMC Royce Micro-Cap Portfolio 6,951 6.13
EPR Royce Premier Portfolio 242 5.23
EIC Wanger International Small Cap 961 43.67
EUC Wanger U.S. Small Cap 892 24.88
EEG Warburg Pincus Trust - Emerging Growth Portfolio 566 13.07
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
8. INVESTMENT TRANSACTIONS
The subaccounts' purchases of Funds' shares, including reinvestment of dividend
distributions, were as follows:
Year ended Dec. 31,
Subaccount Investment 1999 1998
<S> <C> <C> <C>
ESI AXPSM Variable Portfolio-- Bond Fund $4,264,147 $4,647,272
ECR AXPSM Variable Portfolio-- Capital Resource Fund 3,258,677 3,205,569
EMS AXPSM Variable Portfolio-- Cash Management Fund 3,721,067 1,567,312
EIA2 AXPSM Variable Portfolio-- Extra Income Fund 359,305 --
EMG AXPSM Variable Portfolio-- Managed Fund 3,779,798 3,919,323
EGD AXPSM Variable Portfolio-- New Dimensions Fund(R) 1,646,330 1,222,554
ECA2 AIM V.I. Capital Appreciation Fund 71,340 --
ECD3 AIM V.I. Capital Development Fund 1,594 --
EVA AIM V.I. Value Fund 5,993,303 2,077,208
EPP3 Alliance VP Premier Growth Portfolio - Class B 64,897 --
ETC3 Alliance VP Technology Portfolio - Class B 136,602 --
EHG3 Alliance VP U.S. Government/High Grade Securities Portfolio - Class B 7,327 --
EAS3 Baron Capital Asset Fund 33,331 --
EFG3 Fidelity VIP III Growth & Income Portfolio - Service Class 75,844 --
EFM3 Fidelity VIP III Mid Cap Portfolio - Service Class 55,196 --
EFO3 Fidelity VIP Overseas Portfolio - Service Class 187,032 --
ERE3 FTVIPT Franklin Real Estate Securities Fund - Class 2 870 --
EMU3 FTVIPT Mutual Shares Securities Fund - Class 2 31,563 --
EIS3 FTVIPT Templeton International Smaller Companies Fund - Class 2 870 --
JCG3 Goldman Sachs VIT Capital Growth Fund 246,925 --
JUS3 Goldman Sachs VIT CORESM U.S. Equity Fund 550,754 --
JGL3 Goldman Sachs VIT Global Income Fund 99,487 --
JIF3 Goldman Sachs VIT International Equity Fund 36,793 --
EDE3 J.P. Morgan U.S. Disciplined Equity Portfolio 58,083 --
ERQ3 Lazard Retirement Equity Portfolio 1,200 --
ERI3 Lazard Retirement International Equity Portfolio 1,173 --
END3 MFS(R) New Discovery Series 77,367 --
ERS3 MFS(R) Research Series 267,009 --
EUT3 MFS(R) Utilities Series 34,449 --
EPG1 Putnam VT Growth and Income Fund-- Class IB Shares 5,266,904 269,558
EPL3 Putnam VT International Growth Fund-- Class IB Shares 577,265 --
EPN3 Putnam VT International New Opportunities Fund-- Class IB Shares 44,979 --
EMC3 Royce Micro-Cap Portfolio 42,159 --
EPR3 Royce Premier Portfolio 1,304 --
EIC3 Wanger International Small Cap 35,065 --
EUC3 Wanger U.S. Small Cap 20,955 --
EEG3 Warburg Pincus Trust - Emerging Growth Portfolio 6,889 --
- ----- ------
Combined Variable Account $31,057,853 $16,908,796
1 Operations commenced on Oct. 5, 1998.
2 Operations commenced on Aug. 26, 1999.
3 Operations commenced on Sept.22, 1999.
</TABLE>
<PAGE>
9. YEAR 2000 (UNAUDITED)
The Year 2000 issue is the result of computer programs having been written using
two digits rather than four to define a year. Any programs that have
time-sensitive software may recognize a date using "00" as the year 1900 rather
than 2000. This could result in the failure of major systems or miscalculations,
which could have a material impact on the operations of American Enterprise Life
and the Account. All of the major systems used by American Enterprise Life and
the Account are maintained by AEFC and are utilized by multiple subsidiaries and
affiliates of AEFC. American Enterprise Life's and the Account's businesses are
heavily dependent upon AEFC's computer systems and have significant interactions
with systems of third parties.
A comprehensive review of AEFC's computer systems and business processes,
including those specific to American Enterprise Life and the Account, was
conducted to identify the major systems that could be affected by the Year 2000
issue. Steps were taken to resolve potential problems including modification to
existing software and the purchase of new software. As of Dec. 31, 1999, AEFC
had completed its program of corrective measures on its internal systems and
applications, including Year 2000 compliance testing. As of Dec. 31, 1999, AEFC
had also completed an evaluation of the Year 2000 readiness of other third
parties whose system failures could have an impact on American Enterprise Life's
and the Account's operations.
AEFC's Year 2000 project also included establishing Year 2000 contingency plans
for all key business units. Business continuation plans, which address business
continuation in the event of a system disruption, are in place for all key
business units. As of Dec. 31, 1999, these plans had been amended to include
specific Year 2000 considerations.
In assessing its Year 2000 initiatives and the results of actual production
since Jan. 1, 2000, management believes no material adverse consequences were
experienced, and there was no material effect on American Enterprise Life's and
the Account's business, results of operations, or financial condition as a
result of the Year 2000 issue.
