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0000945094-99-000117.txt : 19990419
0000945094-99-000117.hdr.sgml : 19990419
ACCESSION NUMBER: 0000945094-99-000117
CONFORMED SUBMISSION TYPE: N-4/A
PUBLIC DOCUMENT COUNT: 8
FILED AS OF DATE: 19990416
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: ALLSTATE LIFE INSURANCE CO SEPARATE ACCOUNT A
CENTRAL INDEX KEY: 0001078402
STANDARD INDUSTRIAL CLASSIFICATION: []
STATE OF INCORPORATION: IL
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: N-4/A
SEC ACT:
SEC FILE NUMBER: 333-72017
FILM NUMBER: 99596305
BUSINESS ADDRESS:
STREET 1: 3100 SANDERS ROAD SUITE J5B
CITY: NORTHBROOK
STATE: IL
ZIP: 60062
BUSINESS PHONE: 8474025000
N-4/A
1
ALLSTATE SEPARATE ACCOUNT A
As filed with the Securities and Exchange Commission on April 16, 1999
File No. 333-72017
811-09227
Securities And Exchange Commission
Washington, D.C. 20549
Form N-4
Registration Statement Under The Securities Act Of 1933 []
Pre-Effective Amendment No. 1 [X]
Post Effective Amendment No. [ ]
and/or
Registration Statement Under The Investment
Company Act Of 1940
Amendment No. 1 [X]
Allstate Life Insurance Company Separate Account A
(Exact Name of Registrant)
Allstate Life Insurance Company
(Name of Depositor)
Allstate Life Insurance Company
3100 Sanders Road
Northbrook, Illinois 60062
(Address of Depositor's Principal Offices)
847/402-2400
(Depositor's Telephone Number, Including Area Code)
Michael J. Velotta
Vice President, Secretary And General Counsel
Allstate Life Insurance Company
3100 Sanders Road
Northbrook, Illinois 60062
847/402-2400
(Name and Complete Address of Agent for Service)
Copy to:
Richard T. Choi, Esquire
Freedman, Levy, Kroll & Simonds
1050 Connecticut Avenue, N.W.
Suite 825
Washington, D.C. 20036-5366
Approximate date of proposed public offering: As soon as practicable after the
effective date of the registration statement.
The registrant hereby amends this registration statement on such date or dates
as may be necessary to delay its effective date until the registrant shall file
a further amendment which specifically states that this registration statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the registration shall become effective on such
date as the Commission, acting pursuant to Section 8(a), may determine.
Title of Securities Being Registered: Units of interest in the Allstate Life
Insurance Company Separate Account A under deferred variable annuity
contracts.
THE PUTNAM ALLSTATE ADVISOR
Allstate Life Insurance Company
Prospectus dated April 30, 1999
3100 Sanders Road
Northbrook, Illinois 60062
Telephone Number: 1-800/390-1277
Allstate Life Insurance Company ("Allstate") is offering The Putnam Allstate
Advisor, an individual and group flexible premium deferred variable annuity
contract ("Contract"). This prospectus contains information about the Contract
that you should know before investing. Please keep it for future reference.
The Contract currently offers 25 investment alternatives ("investment
alternatives"). The investment alternatives include 3 fixed account options
("Fixed Account Options") and 22 variable sub-accounts ("Variable Sub-Accounts")
of the Allstate Life Insurance Company Separate Account A ("Variable Account").
Each Variable Sub-Account invests exclusively in the class IB shares of one of
the following mutual fund portfolios ("Funds") of Putnam Variable Trust:
Putnam VT Asia Pacific Growth Fund Putnam VT International New Opportunities Fund
Putnam VT Diversified Income Fund Putnam VT Investors Fund
Putnam VT The George Putnam Fund of Boston Putnam VT Money Market Fund
Putnam VT Global Asset Allocation Fund Putnam VT New Opportunities Fund
Putnam VT Global Growth Fund Putnam VT New Value Fund
Putnam VT Growth and Income Fund Putnam VT OTC & Emerging Growth Fund
Putnam VT Health Sciences Fund Putnam VT Research Fund
Putnam VT High Yield Fund Putnam VT Small Cap Value Fund
Putnam VT Income Fund Putnam VT Utilities Growth and Income Fund
Putnam VT International Growth Fund Putnam VT Vista Fund
Putnam VT International Growth and Income Fund Putnam VT Voyager Fund
We (Allstate) have filed a Statement of Additional Information, dated April 30 ,
1999, with the Securities and Exchange Commission ("SEC"). It contains more
information about the Contract and is incorporated herein by reference, which
means that it is legally a part of this prospectus. Its table of contents
appears on page 31 of this prospectus. For a free copy, please write or call us
at the address or telephone number above, or go to the SEC's Web site. You can
find other information and documents about us, including documents that are
legally part of this prospectus, at the SEC's Web site.
IMPORTANT NOTICES
The Securities and Exchange Commission has not approved or disapproved the
securities described in this prospectus, nor has it passed on the accuracy or
the adequacy of this prospectus. Any one who tells you otherwise is committing a
federal crime.
The Contracts may be distributed through broker-dealers that have relationships
with banks or other financial institutions or by employees of such banks.
However, the Contracts are not deposits, or obligations of, or guaranteed by
such institutions or any federal regulatory agency. Investment in the Contracts
involves investment risks, including possible loss of principal.
The Contracts are not FDIC insured.
TABLE OF CONTENTS
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Overview Page
Important Terms.................................................... 3
The Contract At A Glance .......................................... 4
How the Contract Works............................................. 6
Expense Table...................................................... 7
Financial Information.............................................. 11
Contract Features
The Contract....................................................... 12
Purchases.......................................................... 13
Contract Value..................................................... 14
Investment Alternatives............................................ 15
The Variable Sub-Accounts................................. 15
The Fixed Account Options................................. 16
Transfers................................................. 16
Expenses........................................................... 18
Access To Your Money............................................... 20
Income Payments.................................................... 21
Death Benefits..................................................... 24
Other Information
More Information................................................... 26
Taxes.............................................................. 28
Performance Information............................................ 30
Statement of Additional Information Table of Contents ............. 31
Appendix A ...........................................................A-1
IMPORTANT TERMS
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This prospectus uses a number of important terms that you may not be familiar
with. The index below identifies the page that describes each term. The first
use of each term in this prospectus appears in highlights.
Page
Accumulation Phase...................................................... 6
Accumulation Unit ...................................................... 11
Accumulation Unit Value ................................................ 11
Allstate ("We")......................................................... 1
Annuitant............................................................... 12
Automatic Additions Program............................................. 13
Automatic Fund Rebalancing Program...................................... 17
Beneficiary ............................................................ 6
Cancellation Period .................................................... 4
*Contract .............................................................. 1
Contract Anniversary.................................................... 4
Contract Owner ("You") ................................................. 6
Contract Value ......................................................... 14
Contract Year.......................................................... 5
Dollar Cost Averaging Program........................................... 17
Due Proof of Death...................................................... 24
Enhanced Beneficiary Protection Option.................................. 24
Fixed Account Options .................................................. 1
Free Withdrawal Amount ................................................. 19
Funds................................................................... 1
Guarantee Period ...................................................... 16
Income Base............................................................. 23
Income Plan ............................................................ 21
Investment Alternatives ................................................ 1
Issue Date ............................................................. 6
Maximum Anniversary Value............................................... 24
Payout Phase............................................................ 6
Payout Start Date ...................................................... 21
Retirement Income Guarantee Rider....................................... 22
Right to Cancel ........................................................ 13
SEC..................................................................... 1
Settlement Value ...................................................... 25
Systematic Withdrawal Program .......................................... 20
Valuation Date.......................................................... 13
Variable Account ....................................................... 1
Variable Sub-Account ................................................... 1
* In certain states the Contract is available only as a group Contract. In those
states we issue you a certificate that represents your ownership and that
summarizes the provisions of the group Contract. References to "Contract" in
this prospectus include certificates, unless the context requires otherwise.
THE CONTRACT AT A GLANCE
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The following is a snapshot of the Contract. Please read the remainder of this
prospectus for more information.
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Flexible Payments
You can purchase a Contract with as little as $1,000 ($500 for Qualified
Contracts, which are Contracts issued with a qualified plan). You can add to
your Contract as often and as much as you like, but each payment must be at
least $500 ($50 for automatic payments). We may limit the amount of any
additional purchase payment to a maximum of $1,000,000. You must maintain a
minimum account size of $1,000.
- ------------------------------------------------------------------------------
Right to Cancel
You may cancel your Contract within 20 days of receipt or any longer period as
your state may require ("Cancellation Period"). Upon cancellation, we will
return your purchase payments adjusted, to the extent state law permits, to
reflect the investment experience of any amounts allocated to the Variable
Account.
- ------------------------------------------------------------------------------
Expenses
You will bear the following expenses:
o Mortality and expense risk charge equal to 1.25% of average daily net
assets (a higher amount applies if you select the Enhanced Beneficiary
Protection Option)
o If you select a Retirement Income Guarantee Rider you would pay an
additional fee at the annual rate of 0.05% or 0.30% (depending on the
option you select) of the Income Base in effect on a Contract
Anniversary ("Contract Anniversary")
o Annual contract maintenance charge of $30 (waived in certain cases)
o Withdrawal charges ranging from 0% to 7% of purchase payments
withdrawn (with certain exceptions)
o Transfer fee equal to 0.50% of the amount transferred after 12th
transfer in any year
o State premium tax (if your state imposes one)
In addition, each Fund pays expenses that you will bear indirectly if
you invest in a Variable Sub-Account.
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Investment Alternatives
The Contract offers 25 investment alternatives including:
o 3 Fixed Account Options (which credit interest at rates we guarantee)
o 22 Variable Sub-Accounts investing in Funds offering professional
money management by Putnam Investment Management, Inc.
To find out current rates being paid on the Fixed Account Options, or to
find out how the Variable Sub-Accounts have performed, please call us at
1-800/390-1277.
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Special Services
For your convenience, we offer these special services:
o Automatic Fund Rebalancing Program
o Automatic Additions Program
o Dollar Cost Averaging Program
o Systematic Withdrawal Program
- ------------------------------------------------------------------------------
Income Payments
You can choose fixed income payments, variable income payments, or a
combination of the two. You can receive your income payments in one of the
following ways:
o life income with guaranteed payments
o a joint and survivor life income with guaranteed payments
o guaranteed payments for a specified period (5 to 30 years)
Allstate also offers 2 Retirement Income Guarantee Riders that allow you to
lock in a dollar amount that you can apply towards fixed income payments.
- ------------------------------------------------------------------------------
Death Benefits
If you die before the Payout Start Date, we will pay the death benefit
described in the Contract. We also offer an Enhanced Beneficiary Protection
Option.
- -------------------------------------------------------------------------------
Transfers
Before the Payout Start Date, you may transfer your Contract value
("Contract Value") among the investment alternatives, with certain
restrictions. The minimum amount you may transfer is $100 or the amount
remaining in the investment alternative, if less.
A charge may apply after the 12th transfer in each Contract year ("Contract
Year"), which we measure from the date we issue your Contract or a Contract
Anniversary.
- -------------------------------------------------------------------------------
Withdrawals
You may withdraw some or all of your Contract Value at anytime prior to the
Payout Start Date. In general, you must withdraw at least $50 at a time. A
10% federal tax penalty may apply if you withdraw before you are 59 1/2
years old. A withdrawal charge also may apply.
- -------------------------------------------------------------------------------
HOW THE CONTRACT WORKS
- ------------------------------------------------------------------------------
The Contract basically works in two ways.
First, the Contract can help you (we assume you are the "Contract Owner") save
for retirement because you can invest in up to 25 investment alternatives and
pay no federal income taxes on any earnings until you withdraw them. You do this
during what we call the "Accumulation Phase" of the Contract. The Accumulation
Phase begins on the date we issue your Contract (we call that date the "Issue
Date") and continues until the Payout Start Date, which is the date we apply
your money to provide income payments. During the Accumulation Phase, you may
allocate your purchase payments to any combination of the Variable Sub-Accounts
and/or Fixed Account Options. If you invest in any of the Fixed Account Options,
you will earn a fixed rate of interest that we declare periodically. If you
invest in any of the Variable Sub-Accounts, your investment return will vary up
or down depending on the performance of the corresponding Funds.
Second, the Contract can help you plan for retirement because you can use it to
receive retirement income for life and/or for a pre-set number of years, by
selecting one of the income payment options (we call these "Income Plans")
described on page 21. You receive income payments during what we call the
"Payout Phase" of the Contract, which begins on the Payout Start Date and
continues until we make the last payment required by the Income Plan you select.
During the Payout Phase, if you select a fixed income payment option, we
guarantee the amount of your payments, which will remain fixed. If you select a
variable income payment option, based on one or more of the Variable
Sub-Accounts, the amount of your payments will vary up or down depending on the
performance of the corresponding Funds. The amount of money you accumulate under
your Contract during the Accumulation Phase and apply to an Income Plan will
determine the amount of your income payments during the Payout Phase.
The timeline below illustrates how you might use your Contract.
Effective Payout Start
Date Accumulation Phase Date Payout Phase
o-------------------------------------------------------------------------------------------------------------------------->
| You save for retirement | | ?
You buy You start receiving income You can receive Or you can
a Contract payments or receive a lump income payments receive income
sum payment for a set period payments for life
As the Contract Owner, you exercise all of the rights and privileges provided by
the Contract. If you die, any surviving Contract Owner or, if there is none, the
Beneficiary will exercise the rights and privileges provided by the Contract.
See "The Contract." In addition, if you die before the Payout Start Date, we
will pay a death benefit to any surviving Contract Owner or, if there is none,
to your Beneficiary. See "Death Benefits."
Please call us at 1-800/390-1277 if you have any question about how the Contract
works.
EXPENSE TABLE
- ------------------------------------------------------------------------------
The table below lists the expenses that you will bear directly or indirectly
when you buy a Contract. The table and the examples that follow do not reflect
premium taxes that may be imposed by the state where you reside. For more
information about Variable Account expenses, see "Expenses," below. For more
information about Fund expenses, please refer to the accompanying prospectus for
the Funds.
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CONTRACT Owner TRANSACTION EXPENSES
Withdrawal Charge (as a percentage of purchase payments withdrawn)*
Number of Complete Years
Since Purchase
Payment Accepted 0 1 2 3 4 5 6 7+
Applicable Charge: 7% 7% 6% 5% 4% 3% 2% 0%
Annual Contract Maintenance Charge...............$30.00**
Transfer Fee.............................0.50% of the amount transferred***
(applied soley to the thirteenth and
subsequent transfers within a Contract Year)
* Each Contract Year, you may withdraw up to the greater of earnings not
previously withdrawn or 15% of your total purchase payments without
incurring a withdrawal charge.
** Waived in certain cases. See "Expenses."
*** Excluding transfers due to dollar cost averaging and automatic fund
rebalancing.
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VARIABLE ACCOUNT ANNUAL EXPENSES
(as a percentage of average daily net asset value deducted from each
Variable Sub-Account)
Mortality and Expense Risk Charge................................1.25%*
Administrative Charge............................................0.00%
Total Variable Account Annual Expenses...........................1.25%
-------------------
* If you select the Enhanced Beneficiary Protection Option, the mortality and
expense risk charge will be equal to 1.40% of your Contract's average daily
net assets in the Variable Account. If you select a Retirement Income
Guarantee Rider, you would pay an additional fee at the annual rate of 0.05%
or 0.30% (depending on the Option you select) of the Income Base in effect on
a Contract Anniversary. See "Retirement Income Guarantee Riders" for details.
---------------------------------------------------------------------------
FUND ANNUAL EXPENSES (After Voluntary Reductions and Reimbursements) (as a
percentage of Fund average daily net assets)(1)
Management 12b-1 Other Total Annual
Fund Fees Fees Expenses Fund Expenses(1)
---- ---- ---- -------- -----------------
Putnam VT Asia Pacific Growth Fund 0.80% 0.15% 0.32% 1.27%
Putnam VT Diversified Income Fund 0.67% 0.15% 0.11% 0.93%
Putnam VT The George Putnam Fund of Boston(2) 0.65% 0.15% 0.36% 1.16%
Putnam VT Global Asset Allocation Fund 0.65% 0.15% 0.13% 0.93%
Putnam VT Global Growth Fund 0.60% 0.15% 0.12% 0.87%
Putnam VT Growth and Income Fund 0.46% 0.15% 0.04% 0.65%
Putnam VT Health Sciences Fund(2) 0.70% 0.15% 0.34% 1.19%
Putnam VT High Yield Fund 0.64% 0.15% 0.07% 0.86%
Putnam VT Income Fund 0.60% 0.15% 0.07% 0.87%
Putnam VT International Growth Fund 0.80% 0.15% 0.27% 1.22%
Putnam VT International Growth and Income Fund 0.80% 0.15% 0.19% 1.14%
Putnam VT International New Opportunities Fund(2) 1.20% 0.15% 0.68% 2.01%
Putnam VT Investors Fund(2) 0.65% 0.15% 0.33% 1.13%
Putnam VT Money Market Fund 0.45% 0.15% 0.08% 0.68%
Putnam VT New Opportunities Fund 0.56% 0.15% 0.05% 0.76%
Putnam VT New Value Fund 0.70% 0.15% 0.11% 0.96%
Putnam VT OTC & Emerging Growth Fund(2) 0.70% 0.15% 0.34% 1.19%
Putnam VT Research Fund(2) 0.65% 0.15% 0.48% 1.28%
Putnam VT Small Cap Value Fund(3) 0.80% 0.15% 0.59% 1.54%
Putnam VT Utilities Growth and Income Fund 0.65% 0.15% 0.07% 0.87%
Putnam VT Vista Fund 0.65% 0.15% 0.12% 0.92%
Putnam VT Voyager Fund 0.54% 0.15% 0.04% 0.73%
- -------------------
(1) Since the funds have not offered Class IB shares for a full fiscal year,
figures shown in the table (except for Putnam VT Small Cap Value Fund) are
for the period ended December 31, 1998 and are estimates based on the
corresponding expenses for the fund's Class A shares for the last fiscal
year. Each Fund commenced operations on April 30, 1998, except for the
Putnam VT Diversified Income, Growth and Income, and International Growth
Funds, which commenced operations on April 6, 1998, the Putnam VT Research
Fund, which commenced operations September 30, 1998, and the Putnam VT
Small Cap Fund, which commenced operations on April 30, 1999. Figures shown
in the table include amounts paid through expense offset and brokerage
service arrangements.
(2) Absent voluntary reductions and reimbursements for certain Funds, advisory
fees, other expenses, and total annual fund expenses expressed as a
percentage of average net assets of the Funds would have been as follows:
Putnam VT The George Putnam Fund of Boston 0.44% 0.15% 0.41% 0.85%
Putnam VT Health Sciences Fund 0.47% 0.15% 0.21% 0.68%
Putnam VT International New Opportunities Fund 1.18% 0.15% 0.68% 2.01%
Putnam VT Investors Fund 0.44% 0.15% 0.18% 0.62%
Putnam VT OTC & Emerging Growth Fund 0.47% 0.15% 0.84% 0.84%
Putnam VT Research Fund 0.17% 0.15% 0.29% 0.46%
(3) Putnam VT Small Cap Value Fund commenced operations on April 30, 1999, the
management fee, other expenses and total annual fund operating expenses are
based on estimates for the fund's first full fiscal year.
EXAMPLE 1
The example below shows the dollar amount of expenses that you would bear
directly or indirectly if you:
o invested a $1,000 in a Variable Sub-Account,
o earned a 5% annual return on your investment, and
o surrendered your Contract, or you began receiving income payments for a
specified period of less than 120 months, at the end of each time period.
The example does not include any taxes or tax penalties you may be required to
pay if you surrender your Contract.
SUB-ACCOUNT 1 YEAR 3 YEARS
- ----------- ------ -------
Putnam Asia Pacific Growth $89 $134
Putnam Diversified Income $86 $123
The George Putnam Fund $88 $130
Putnam Global Asset Allocation $86 $123
Putnam Global Growth $85 $121
Putnam Growth and Income $83 $115
Putnam Health Sciences $78 $100
Putnam High Yield $95 $152
Putnam Income $85 $121
Putnam International Growth $89 $132
Putnam International Growth and Income $88 $130
Putnam International New Opportunities $97 $156
Putnam Investors $85 $121
Putnam Money Market $92 $142
Putnam New Opportunities $88 $129
Putnam New Value $83 $116
Putnam OTC & Emerging Growth $89 $134
Putnam Research $84 $118
Putnam Small Cap Value $86 $124
Putnam Utilities Growth and Income $88 $131
Putnam Vista $86 $123
Putnam Voyager $84 $117
EXAMPLE 2
Same assumptions as Example 1 above, except that you decide not to surrender
your Contract, or you began receiving income payments for at least 120 months if
under an Income Plan for a specified period, at the end of each period.
SUB-ACCOUNT 1 YEAR 3 YEARS
- ----------- ------ -------
Putnam Asia Pacific Growth $30 $ 91
Putnam Diversified Income $26 $ 81
The George Putnam Fund $29 $ 88
Putnam Global Asset Allocation $26 $ 81
Putnam Global Growth $26 $ 79
Putnam Growth and Income $23 $ 72
Putnam Health Sciences $19 $ 58
Putnam High Yield $36 $109
Putnam Income $26 $ 79
Putnam International Growth $29 $ 90
Putnam International Growth and Income $28 $ 87
Putnam International New Opportunities $37 $114
Putnam Investors $26 $ 79
Putnam Money Market $32 $ 99
Putnam New Opportunities $28 $ 87
Putnam New Value $24 $ 73
Putnam OTC & Emerging Growth $30 $ 91
Putnam Research $24 $ 76
Putnam Small Cap Value $26 $ 82
Putnam Utilities Growth and Income $29 $ 89
Putnam Vista $26 $ 80
Putnam Voyager $24 $ 75
Please remember that you are looking at examples and not a representation of
past or future expenses. Your actual expenses may be lower or greater than those
shown above. Similarly, your rate of return may be lower or greater than 5%,
which is not guaranteed. The above examples assume the election of the
Retirement Income Guarantee Rider 2. If that Rider were not elected, the expense
figures shown above would be slightly lower. To reflect the contract maintenance
charge in the examples, we estimated an equivalent percentage charge, based on
an assumed average Contract size of $45,000.
FINANCIAL INFORMATION
- ---------------------------------------------------------------------------
To measure the value of your investment in the Variable Sub-Accounts during the
Accumulation Phase, we use a unit of measure we call the "Accumulation Unit."
Each Variable Sub-Account has a separate value for its Accumulation Units we
call "Accumulation Unit Value." Accumulation Unit Value is analogous to, but not
the same as, the share price of a mutual fund.
The Variable Account commenced operations as of the date of this prospectus.
Accordingly, there are no Accumulation Unit Values or other financial
information to report for the Variable Account.
The combined statutory basis financial statements of Allstate appear in the
Statement of Additional Information.
THE CONTRACT
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CONTRACT OWNER
The Putnam Allstate Advisor is a contract between you, the Contract Owner, and
Allstate, a life insurance company. As the Contract Owner, you may exercise all
of the rights and privileges provided to you by the Contract. That means it is
up to you to select or change (to the extent permitted):
o the investment alternatives during the Accumulation and Payout Phases,
o the amount and timing of your purchase payments and withdrawals,
o the programs you want to use to invest or withdraw money,
o the income payment plan you want to use to receive retirement income,
o the Annuitant (either yourself or someone else) on whose life the income
payments will be based,
o the Beneficiary or Beneficiaries who will receive the benefits that the
Contract provides when the last surviving Contract Owner or the Annuitant
dies, and
o any other rights that the Contract provides.
If you die, any surviving joint Contract Owner or, if none, the Beneficiary will
exercise the rights and privileges provided to them by the Contract. The
Contract cannot be jointly owned by both a non-natural person and a natural
person.
You can use the Contract with or without a qualified plan. A qualified plan is a
personal retirement savings plan, such as an IRA or tax-sheltered annuity, that
meets the requirements of the Internal Revenue Code. Qualified plans may limit
or modify your rights and privileges under the Contract. We use the term
"Qualified Contract" to refer to a Contract issued with a qualified plan. See
"Qualified Plans" on page 27.
You may change the Contract Owner at any time. Once we have received a
satisfactory written request for a change of Contract Owner, the change will
take effect as of the date you signed it. We are not liable for any payment we
make or other action we take before receiving any written request for a change
from you.
ANNUITANT
The Annuitant is the individual whose age determines the latest Payout Start
Date and whose life determines the amount and duration of income payments (other
than under Income Plans with guaranteed payments for a specified period). You
may name a new Annuitant only upon the death of the current Annuitant. You may
designate a joint Annuitant, who is a second person on whose life income
payments depend, at the time you select an Income Plan.
If you select an Income Plan that depends on the Annuitant or a joint
Annuitant's life, we may require proof of age and sex before income payments
begin and proof that the Annuitant or joint Annuitant is still alive before we
make each payment.
BENEFICIARY
The Beneficiary is the person who may elect to receive the death benefit or
become the new Contract Owner if the sole surviving Contract Owner dies before
the Payout Start Date. If the sole surviving Contract Owner dies after the
Payout Start Date, the Beneficiary will receive any guaranteed income payments
scheduled to continue.
You may name one or more Beneficiaries when you apply for a Contract. You may
change or add Beneficiaries at any time by writing to us before income payments
begin, unless you have designated an irrevocable Beneficiary. We will provide a
change of Beneficiary form to be signed and filed with us. Any change will be
effective at the time you sign the written notice. Until we receive your written
notice to change a Beneficiary, we are entitled to rely on the most recent
Beneficiary information in our files. We will not be liable as to any payment or
settlement made prior to receiving the written notice. Accordingly, if you wish
to change your Beneficiary, you should deliver your written notice to us
promptly.
If you did not name a Beneficiary or unless otherwise provided in the
Beneficiary designation, if a Beneficiary predeceases the Contract Owner and
there are no other surviving Beneficiaries, the new Beneficiary will be:
o your spouse or, if he or she is no longer alive,
o your surviving children equally, or if you have no surviving children,
o your estate.
If more than one Beneficiary survives you, we will divide the death benefit
among your Beneficiaries according to your most recent written instructions. If
you have not given us written instructions, we will pay the death benefit in
equal amounts to the Beneficiaries. If one of the Beneficiaries dies before you,
we will divide the death benefit among the surviving Beneficiaries.
MODIFICATION OF THE CONTRACT
Only an Allstate officer may approve a change in or waive any provision of the
Contract. Any change or waiver must be in writing. None of our agents has the
authority to change or waive the provisions of the Contract. We may not change
the terms of the Contract without your consent, except to conform the Contract
to applicable law or changes in the law. If a provision of the Contract is
inconsistent with state law, we will follow state law.
ASSIGNMENT
We will not honor an assignment of an interest in a Contract as collateral or
security for a loan. No Beneficiary may assign benefits under the Contract until
they are due. We will not be bound by any assignment until you sign it and file
it with us. We are not responsible for the validity of any assignment. Federal
law prohibits or restricts the assignment of benefits under many types of
retirement plans and the terms of such plans may themselves contain restrictions
on assignments. An assignment may also result in taxes or tax penalties. You
should consult with an attorney before trying to assign your Contract.
PURCHASES
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MINIMUM PURCHASE PAYMENTS
Your initial purchase payment must be at least $1,000 ($500 for a Qualified
Contract). All subsequent purchase payments must be $500 or more. You may make
purchase payments at any time prior to the Payout Start Date. The most we accept
without our prior approval is $1 million. We reserve the right to limit the
availability of the investment alternatives for additional investments. We also
reserve the right to reject any application.
AUTOMATIC ADDITIONS PROGRAM
You may make subsequent purchase payments of $50 or more per month by
automatically transferring money from your bank account. Please consult with
your sales representative for detailed information.
ALLOCATION OF PURCHASE PAYMENTS
At the time you apply for a Contract, you must decide how to allocate your
purchase payment among the investment alternatives. The allocation you specify
on your application will be effective immediately. All allocations must be in
whole percents that total 100% or in whole dollars. You can change your
allocations by calling 1-800-390-1277.
We will allocate your purchase payments to the investment alternatives according
to your most recent instructions on file with us. Unless you notify us in
writing otherwise, we will allocate subsequent purchase payments according to
the allocation for the previous purchase payment. We will effect any change in
allocation instructions at the time we receive written notice of the change in
good order.
We will credit the initial purchase payment that accompanies your completed
application to your Contract within 2 business days after we receive the payment
at our home office. If your application is incomplete, we will ask you to
complete your application within 5 business days. If you do so, we will credit
your initial purchase payment to your Contract within that 5 business day
period. If you do not, we will return your purchase payment at the end of the 5
business day period unless you expressly allow us to hold it until you complete
the application. We will credit subsequent purchase payments to the Contract at
the close of the business day on which we receive the purchase payment at our
home office.
We use the term "business day" to refer to each day Monday through Friday that
the New York Stock Exchange is open for business. We also refer to these days as
"Valuation Dates." Our business day closes when the New York Stock Exchange
closes, usually 4 p.m. Eastern Time (3 p.m. Central Time). If we receive your
purchase payment after 3 p.m. Central Time on any Valuation Date, we will credit
your purchase payment using the Accumulation Unit Values computed on the next
Valuation Date.
RIGHT TO CANCEL
You may cancel the Contract by returning it to us within the Cancellation
Period, which is the 20 day period after you receive the Contract, or such
longer period that your state may require. You may return it by delivering it or
mailing it to us. If you exercise this "Right to Cancel," the Contract
terminates and we will pay you the full amount of your purchase payments
allocated to the Fixed Account. We also will return your purchase payments
allocated to the Variable Account adjusted, to the extent state law permits, to
reflect investment gain or loss that occurred from the date of allocation
through the date of cancellation. We reserve the right to allocate your purchase
payments to the Putnam Money Market Variable Sub-Account during the Cancellation
Period.
CONTRACT VALUE
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Your Contract Value at any time during the Accumulation Phase is equal to the
sum of the value of your Accumulation Units in the Variable Sub-Accounts you
have selected, plus the value of your interest in the Fixed Account Options.
ACCUMULATION UNITS
To determine the number of Accumulation Units of each Variable Sub-Account to
allocate to your Contract, we divide (i) the amount of the purchase payment you
have allocated to a Variable Sub-Account by (ii) the Accumulation Unit Value of
that Variable Sub-Account next computed after we receive your payment. For
example, if we receive a $10,000 purchase payment allocated to a Variable
Sub-Account when the Accumulation Unit Value for the Sub-Account is $10, we
would credit 1,000 Accumulation Units of that Variable Sub-Account to your
Contract.
ACCUMULATION UNIT VALUE
As a general matter, the Accumulation Unit Value for each Variable Sub-Account
will rise or fall to reflect:
o changes in the share price of the Fund in which the Variable Sub-Account
invests, and
o the deduction of amounts reflecting the mortality and expense risk charge,
and any provision for taxes that have accrued since we last calculated the
Accumulation Unit Value.
We determine contract maintenance charges, withdrawal charges, Retirement Income
Guarantee charges (if applicable), and transfer fees separately for each
Contract. They do not affect the Accumulation Unit Value. Instead, we obtain
payment of those charges and fees by redeeming Accumulation Units. For details
on how we compute Accumulation Unit Value, please refer to the Statement of
Additional Information.
We determine a separate Accumulation Unit Value for each Variable Sub-Account on
each Valuation Date. We also determine separate sets of Accumulation Unit Values
that reflect the cost of the Enhanced Beneficiary Protection Option described on
page 24 below.
You should refer to the prospectus for the Funds that accompanies this
prospectus for a description of how the assets of each Fund are valued, since
that determination directly bears on the Accumulation Unit Value of the
corresponding Variable Sub-Account and, therefore, your Contract Value.
INVESTMENT ALTERNATIVES: The Variable Sub-Accounts
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You may allocate your purchase payments to up to 22 Variable Sub-Accounts. Each
Variable Sub-Account invests in the shares of a corresponding Fund. Each Fund
has its own investment objective(s) and policies. We briefly describe the Funds
below.
For more complete information about each Fund, including expenses and risks
associated with the Fund, please refer to the accompanying prospectus for the
Fund. You should carefully review the Fund prospectuses before allocating
amounts to the Variable Sub-Accounts. Putnam Investment Management, Inc.
("Putnam Management") serves as the investment adviser to each Fund.
Fund: Each Fund Seeks:
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Asia Pacific Growth Fund Capital appreciation
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Diversified Income Fund High current income consistent with capital preservation
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT The George Putnam Fund of Boston To provide a balanced investment composed of a well
diversified portfolio of stocks and bonds that will produce
both capital growth and current income
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Global Asset Allocation Fund A high level of long-term total return consistent with
preservation of capital
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Global Growth Fund Capital appreciation
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Growth and Income Fund Capital growth and current income
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Health Sciences Fund Capital appreciation
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT High Yield Fund High current income. Capital growth is a secondary objective
when consistent with high current income.
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Income Fund Current income consistent with preservation of capital
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT International Growth Fund Capital growth
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT International Growth and Income Fund Capital growth. Current income is a secondary objective.
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT International New Opportunities Fund Long-term capital appreciation
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Investors Fund Long-term growth of capital and any increased income that
results from this growth
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Money Market Fund As high a rate of current income as Putnam Management
believes is consistent with preservation of capital
and maintenance of liquidity.
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT New Opportunities Fund Long-term capital appreciation
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT New Value Fund Long-term capital appreciation
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT OTC & Emerging Growth Fund Capital appreciation
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Research Fund Capital appreciation
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Small Cap Value Fund Capital appreciation
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Utilities Growth and Income Fund Capital growth and current income
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Vista Fund Capital appreciation
- ------------------------------------------------------ ---------------------------------------------------------------
Putnam VT Voyager Fund Capital appreciation
- ----------------------------------------------------------------------------------------------------------------------
Amounts you allocate to Variable Sub-Accounts may grow in value, decline in
value, or grow less than you expect, depending on the investment performance of
the Funds in which those Variable Sub-Accounts invest. You bear the investment
risk that the Funds might not meet their investment objectives. Shares of the
Funds are not deposits, or obligations of, or guaranteed or endorsed by any bank
and are not insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other agency.
INVESTMENT ALTERNATIVES: The Fixed Account Options
- ---------------------------------------------------------------------------
You may allocate all or a portion of your purchase payments to the Fixed
Account. You may choose from among 3 Fixed Account Options including 2 Dollar
Cost Averaging Options, and the Standard Fixed Account Option. We will credit a
minimum annual interest rate of 3% to money you allocate to any of the Fixed
Account Options. The Fixed Account Options may not be available in all states.
Please consult with your sales representative for current information. The Fixed
Account supports our insurance and annuity obligations. The Fixed Account
consists of our general assets other than those in segregated asset accounts. We
have sole discretion to invest the assets of the Fixed Account, subject to
applicable law. Any money you allocate to a Fixed Account Option does not
entitle you to share in the investment experience of the Fixed Account.
DOLLAR COST AVERAGING FIXED ACCOUNT OPTIONS
You may establish a Dollar Cost Averaging Program, as described on page 17, by
allocating purchase payments to the Fixed Account either for up to 6 months (the
"6 Month Dollar Cost Averaging Option") or for up to 12 months (the "12 Month
Dollar Cost Averaging Option"). Your purchase payments will earn interest for
the period you select at the current rates in effect at the time of allocation.
Rates may differ from those available for the Standard Fixed Account Option
described below.
You must transfer all of your money out of the 6 or 12 Month Dollar Cost
Averaging Options to other investment alternatives in equal monthly
installments. At the end of the applicable 6 or 12 month period, we will
transfer any remaining amounts in the 6 or 12 Month Dollar Cost Averaging
Options to the Putnam Money Market Variable Sub-Account unless you request a
different investment alternative. Transfers out of the 6 or 12 Month Dollar Cost
Averaging Options do not count towards the 12 transfers you can make without
paying a transfer fee.
You may not transfer money from other investment alternatives to either the 6 or
12 Month Dollar Cost Averaging Options.
The 6 or 12 Month Dollar Cost Averaging Options may not be available in your
state. Please check with your sales representative for availability.
STANDARD FIXED ACCOUNT OPTION
Each payment or transfer allocated to the Standard Fixed Account Option earns
interest at the current rate in effect at the time of allocation. We guarantee
that rate for a period of years we call Guarantee Periods. We are currently
offering Guarantee Periods of 1 year in length. In the future we may offer
Guarantee Periods of different lengths or stop offering some Guarantee Periods.
You select a Guarantee Period for each purchase or transfer. After the initial
Guarantee Period, we will guarantee a renewal rate.
INVESTMENT ALTERNATIVES: Transfers
- -----------------------------------------------------------------------------
TRANSFERS DURING THE ACCUMULATION PHASE
During the Accumulation Phase, you may transfer Contract Value among the
investment alternatives. We do not permit transfers into any Dollar Cost
Averaging Fixed Account Option. You may request transfers in writing on a form
that we provided or by telephone according to the procedure described below.
You may make 12 transfers per Contract Year without charge. A transfer fee equal
to 0.50% of the amount transferred applies to each transfer after the 12th
transfer in any Contract Year.
The minimum amount that you may transfer from the Standard Fixed Account Option
or a Variable Sub-Account is $100 or the total remaining balance in the Standard
Fixed Account Option or the Variable Sub-Account, if less. These limitations do
not apply to the 6-Month and 12-Month Dollar Cost Averaging Fixed Account
Options.
The most you can transfer from the Standard Fixed Account Option during any
Contract Year is the greater of (i) 30% of the Standard Fixed Account Option
balance as of the last Contract Anniversary or (ii) the greatest dollar amount
of any prior transfer from the Standard Fixed Account Option. This limitation
does not apply to the Dollar Cost Averaging Program. Also, if the interest rate
on any renewed Guarantee Period is at least one percentage point less than the
previous interest rate, you may transfer up to 100% of the monies receiving that
reduced rate within 60 days of the notification of the interest rate decrease.
We will process transfer requests that we receive before 3:00 p.m. Central Time
on any Valuation Date using the Accumulation Unit Values for that Date. We will
process requests completed after 3:00 p.m. on any Valuation Date using the
Accumulation Unit Values for the next Valuation Date. The Contract permits us to
defer transfers from the Fixed Account Options for up to six months from the
date we receive your request. If we decide to postpone transfers from any Fixed
Account Option for 30 days or more, we will pay interest as required by
applicable law. Any interest would be payable from the date we receive the
transfer request to the date we make the transfer.
We reserve the right to waive any transfer restrictions.
TRANSFERS DURING THE PAYOUT PHASE
During the Payout Phase, you may make transfers among the Variable Sub-Accounts
so as to change the relative weighting of the Variable Sub-Accounts on which
your variable income payments will be based. You may not convert any portion of
your fixed income payments into variable income payments.
You may not make any transfers for the first 6 months after the Payout Start
Date. Thereafter, you may make transfers among the Variable Sub-Accounts or make
transfers from the Variable Sub-Accounts to increase the proportion of your
income payments consisting of fixed income payments if Income Plan 3, described
below, is in effect. Your transfers must be at least 6 months apart.
TELEPHONE TRANSFERS
You may make transfers by telephone by calling 1-800-390-1277. The cut off time
for telephone transfer requests is 3:00 p.m. Central time. In the event that the
New York Stock Exchange closes early, i.e., before 3:00 p.m. Central Time, or in
the event that the Exchange closes early for a period of time but then reopens
for trading on the same day, we will process telephone transfer requests as of
the close of the Exchange on that particular day. We will not accept telephone
requests received from you at any telephone number other than the number that
appears in this paragraph or received after the close of trading on the
Exchange. If you own the Contract with a joint Contract Owner, unless we receive
contrary instructions, we will accept instructions from either you or the other
Contract Owner.
We use procedures that we believe provide reasonable assurance that the
telephone transfers are genuine. For example, we tape telephone conversations
with persons purporting to authorize transfers and request identifying
information. Accordingly, we disclaim any liability for losses resulting from
allegedly unauthorized telephone transfers. However, if we do not take
reasonable steps to help ensure that a telephone authorization is valid, we may
be liable for such losses.
EXCESSIVE TRADING LIMITS
We reserve the right to limit transfers in any Contract Year, or to refuse any
transfer request for a Contract Owner or certain Contract Owners, if:
o we believe, in our sole discretion, that excessive trading by such Contract
Owner or Owners, or a specific transfer request or group of transfer
requests, may have a detrimental effect on the Accumulation Unit Values of
any Variable Sub-Account or the share prices of the corresponding Funds or
would be to the disadvantage of other Contract Owners; or
o we are informed by one or more of the corresponding Funds that they intend
to restrict the purchase or redemption of Fund shares because of excessive
trading or because they believe that a specific transfer or group of
transfers would have a detrimental effect on the prices of Fund shares.
We may apply the restrictions in any manner reasonably designed to prevent
transfers that we consider disadvantageous to other Contract Owners.
DOLLAR COST AVERAGING PROGRAM
You may automatically transfer a set amount from any Variable Sub-Account or
Fixed Account Option to any of the other Variable Sub-Accounts through our
Dollar Cost Averaging Program. The Program is available only during the
Accumulation Phase.
We will not charge a transfer fee for transfers made under this Program, nor
will such transfers count against the 12 transfers you can make each Contract
Year without paying a transfer fee.
The theory of dollar cost averaging is that if purchases of equal dollar amounts
are made at fluctuating prices, the aggregate average cost per unit will be less
than the average of the unit prices on the same purchase dates. However,
participation in this Program does not assure you of a greater profit from your
purchases under the Program nor will it prevent or necessarily reduce losses in
a declining market.
AUTOMATIC FUND REBALANCING PROGRAM
Once you have allocated your money among the Variable Sub-Accounts, the
performance of each Sub-Account may cause a shift in the percentage you
allocated to each Sub-Account. If you select our Automatic Fund Rebalancing
Program, we will automatically rebalance the Contract Value in each Variable
Sub-Account and return it to the desired percentage allocations. Money you
allocate to the Fixed Account will not be included in the rebalancing.
We will rebalance your account quarterly, semi-annually, or annually. We will
measure these periods according to your instructions. We will transfer amounts
among the Variable Sub-Accounts to achieve the percentage allocations you
specify. You can change your allocations at any time by contacting us in writing
or by telephone. The new allocation will be effective with the first rebalancing
that occurs after we receive your written or telephone request. We are not
responsible for rebalancing that occurs prior to receipt of proper notice of
your request.
Example:
Assume that you want your initial purchase payment split among 2
Variable Sub-Accounts. You want 40% to be in the Putnam Income Variable
Sub-Account and 60% to be in the Putnam Global Growth Variable
Sub-Account. Over the next 2 months the bond market does very well
while the stock market performs poorly. At the end of the first
quarter, the Putnam Income Variable Sub-Account now represents 50% of
your holdings because of its increase in value. If you choose to have
your holdings rebalanced quarterly, on the first day of the next
quarter we would sell some of your units in the Putnam Income Variable
Sub-Account and use the money to buy more units in the Putnam Global
Variable Sub-Account so that the percentage allocations would again be
40% and 60% respectively.
The Automatic Fund Rebalancing Program is available only during the Accumulation
Phase. The transfers made under the program do not count towards the 12
transfers you can make without paying a transfer fee, and are not subject to a
transfer fee. We may sometimes refer to this Program as the "Putnam Automatic
Rebalancing Program."
Fund rebalancing is consistent with maintaining your allocation of investments
among market segments, although it is accomplished by reducing your Contract
Value allocated to the better performing segments.
EXPENSES
- ------------------------------------------------------------------------------
As a Contract Owner, you will bear, directly or indirectly, the charges and
expenses described below.
CONTRACT MAINTENANCE CHARGE
During the Accumulation Phase, on each Contract Anniversary, we will deduct a
$30 contract maintenance charge from your assets invested in the Putnam Money
Market Variable Sub-Account. If there are insufficient assets in that Variable
Sub-Account, we will deduct the charge proportionally from the other Variable
Sub-Accounts. We also will deduct this charge if you withdraw your entire
Contract Value, unless your Contract qualifies for a waiver. During the Payout
Phase, we will deduct the charge proportionately from each income payment.
The charge is to compensate us for the cost of administering the Contracts and
the Variable Account. Maintenance costs include expenses we incur in billing and
collecting purchase payments; keeping records; processing death claims, cash
withdrawals, and policy changes; proxy statements; calculating Accumulation Unit
Values and income payments; and issuing reports to Contract Owners and
regulatory agencies. We cannot increase the charge. We will waive this charge
if:
o your total Contract Value is greater than $50,000 on a Contract Anniversary
or on the Payout Start Date, or
o all of your money is allocated to the Fixed Account Options on a Contract
Anniversary or all income payments are fixed income payments.
We also reserve the right to waive this charge if you own more than one Contract
and the Contracts meet certain minimum dollar amount requirements. In addition,
we reserve the right to waive this charge for all Contracts.
MORTALITY AND EXPENSE RISK CHARGE
We deduct a mortality and expense risk charge daily at an annual rate of 1.25%
of the average daily net assets you have invested in the Variable Sub-Accounts.
The mortality and expense risk charge is for all the insurance benefits
available with your Contract (including our guarantee of annuity rates and the
death benefits), for certain expenses of the Contract, and for assuming the risk
(expense risk) that the current charges will be sufficient in the future to
cover the cost of administering the Contract. If the charges under the Contract
are not sufficient, then Allstate will bear the loss. If you select the Enhanced
Beneficiary Protection Option, Allstate will deduct a mortality and expense risk
charge equal, on an annual basis, to 1.40% of the average daily net assets you
have invested in the Variable Sub-Accounts (1.25% plus 0.15% for the Option).
Allstate reserves the right to raise the Enhanced Beneficiary Protection Option
charge to up to 0.25%. However, once your Option is in effect, Allstate cannot
change the fee that applies to your Contract. We charge the additional fee for
the Enhanced Beneficiary Protection Option to compensate us for the additional
risk that we accept by providing the Option.
We guarantee the mortality and expense risk charge and we cannot increase it. We
assess the mortality and expense risk charge during both the Accumulation Phase
and the Payout Phase.
RETIREMENT INCOME GUARANTEE CHARGE
We impose a separate charge for each Retirement Income Guarantee Rider. The
charges equal, on an annual basis, 0.05% of the income base for Retirement
Income Guarantee Rider 1 and 0.30% of the income base for Retirement Income
Guarantee Rider 2. We reserve the right to change the Rider fee. However, once
we issue your Rider, we cannot change the Rider fee that applies to your
Contract. The Rider 1 fee will never exceed 0.15% and the Rider 2 fee will never
exceed 0.50%. See "Retirement Income Guarantee Riders" for details.
TRANSFER FEE
We impose a fee upon transfers in excess of 12 during any Contract Year. The fee
is equal to 0.50% of the dollar amount transferred. We will not charge a
transfer fee on transfers that are part of a Dollar Cost Averaging Program or
Automatic Fund Rebalancing Program.
WITHDRAWAL CHARGE
We may assess a withdrawal charge of up to 7% of the purchase payment(s) you
withdraw. The charge declines to 0% after 7 complete years from the date we
received the purchase payment being withdrawn. A schedule showing how the charge
declines appears on page 7, above. During each Contract Year, you can withdraw
up to the greater of earnings not previously withdrawn or 15% of your total
purchase payments without paying the charge. Unused portions of this 15% "Free
Withdrawal Amount" are not carried forward to future Contract Years.
We will deduct withdrawal charges, if applicable, from the amount paid. For
purposes of the withdrawal charge, we will treat withdrawals as coming from the
oldest purchase payments first. However, for federal income tax purposes, please
note that withdrawals are considered to have come from the latest purchase
payments in the Contract. Thus, for tax purposes, earnings are considered to
come out first, which means you pay taxes on the earnings portion of your
withdrawal.
We do not apply a withdrawal charge in the following situations:
o on the Payout Start Date (a withdrawal charge may apply if you elect to
receive income payments for a specified period of less than 120 months);
o the death of the Contract Owner or Annuitant; and
o withdrawals taken to satisfy IRS minimum distribution rules for the
Contract, or
o withdrawals that qualify for one of the waivers described below.
We use the amounts obtained from the withdrawal charge to pay sales commissions
and other promotional or distribution expenses associated with marketing the
Contracts. To the extent that the withdrawal charge does not cover all sales
commissions and other promotional or distribution expenses, we may use any of
our corporate assets, including potential profit which may arise from the
mortality and expense risk charge or any other charges or fee described above,
to make up any difference.
Withdrawals also may be subject to tax penalties or income tax. You should
consult your own tax counsel or other tax advisers regarding any withdrawals.
Confinement Waiver. We will waive the withdrawal charge on any withdrawal taken
prior to the Payout Start Date under your Contract if the following conditions
are satisfied:
1) you or the Annuitant, if the Contract Owner is not a living individual, are
first confined to a long term care facility or a hospital for at least 90
consecutive days. The insured must enter the long term care facility or
hospital at least 30 days after the Issue Date,
2) we receive your request for withdrawal and written proof of the stay no
later than 90 days following the end of the insured's stay at the long term
care facility or hospital, and
3) a physician must have prescribed the stay and the stay must be medically
necessary (as defined in the Contract).
Terminal Illness Waiver. We will waive the withdrawal charge on any withdrawal
under your Contract taken prior to the Payout Start Date if:
1) you or the Annuitant, if the Contract Owner is not a living individual, are
diagnosed by a physician as having a terminal illness (as defined in the
Contract) at least 30 days after the Issue Date, and
2) you provide adequate proof of diagnosis to us, or at the time you request
the withdrawal.
Unemployment Waiver. We will waive the withdrawal charge on one partial or full
withdrawal from your Contract, if you meet the following requirements:
1) you or the Annuitant , if the Contract Owner is not a living individual,
become unemployed at least one year after the Issue Date,
2) you or the Annuitant receive unemployment compensation (as defined in the
Contract) for at least 30 days as a result of that unemployment, and
3) you or the Annuitant claim this benefit within 180 days of your or the
Annuitant's initial receipt of unemployment compensation.
You may exercise this benefit once before the Payout Start Date.
Please refer to your Contract for more detailed information about the terms and
conditions of these waivers.
The laws of your state may limit the availability of these waivers and may also
change certain terms and/or benefits available under the waivers. You should
consult your Contract for further details on these variations. Also, even if you
do not need to pay our withdrawal charge because of these waivers, you still may
be required to pay taxes or tax penalties on the amount withdrawn. You should
consult your tax adviser to determine the effect of a withdrawal on your taxes.
PREMIUM TAXES
Some states and other governmental entities (e.g., municipalities) charge
premium taxes or similar taxes. We are responsible for paying these taxes and
will deduct them from your Contract Value. Some of these taxes are due when the
Contract is issued, others are due when income payments begin or upon surrender.
Our current practice is not to charge anyone for these taxes until income
payments begin or when a total withdrawal occurs including payment upon death.
We may some time in the future discontinue this practice and deduct premium
taxes from the purchase payments. Premium taxes generally range from 0% to 4%,
depending on the state.
At the Payout Start Date, we deduct the charge for premium taxes from each
investment alternative in the proportion that the Contract Owner's value in the
investment alternative bears to the total Contract Value.
OTHER EXPENSES
Each Fund deducts advisory fees and other expenses from its assets. You
indirectly bear the charges and expenses of the Fund whose shares are held by
the Variable Sub-Accounts. These fees and expenses are described in the
accompanying prospectus for the Funds. For a summary of current estimates of
those charges and expenses, see page 8 above. We may receive compensation
from the Funds' investment adviser, distributor, or their affiliates for
administrative services we provide to the Funds.
ACCESS TO YOUR MONEY
- ------------------------------------------------------------------------------
You can withdraw some or all of your Contract Value at any time prior to the
Payout Start Date. Withdrawals also are available under limited circumstances on
or after the Payout Start Date. See "Income Plans" on page 21.
The amount payable upon withdrawal is the Contract Value next computed after we
receive the request for a withdrawal at our home office, less any withdrawal
charges, contract maintenance charges, income tax withholding, and any premium
taxes. We will pay withdrawals from the Variable Account within 7 days of
receipt of the request, subject to postponement in certain circumstances.
You can withdraw money from the Variable Account or the Fixed Account Options.
To complete a partial withdrawal from the Variable Account, we will cancel
Accumulation Units in an amount equal to the withdrawal and any applicable
withdrawal charge and premium taxes.
You must name the investment alternative from which you are taking the
withdrawal. If none is named, then the withdrawal request is incomplete and
cannot be honored.
In general, you must withdraw at least $50 at a time. If you request a total
withdrawal, we may require that you return your Contract to us.
POSTPONEMENT OF PAYMENTS
We may postpone the payment of any amounts due from the Variable Account under
the Contract if:
1) the New York Stock Exchange is closed for other than usual weekends or
holidays, or trading on the Exchange is otherwise restricted,
2) an emergency exists as defined by the SEC, or
3) the SEC permits delay for your protection.
In addition, we may delay payments or transfers from the Fixed Account Options
for up to 6 months or shorter period if required by law. If we delay payment or
transfer for 30 days or more, we will pay interest as required by law.
SYSTEMATIC WITHDRAWAL PROGRAM
You may choose to receive systematic withdrawal payments on a monthly,
quarterly, semi-annual, or annual basis at any time prior to the Payout Start
Date. Please consult your sales representative or call us at 1-800-390-1277 for
more information. Depending on fluctuations in the net asset value of the
Variable Sub-Accounts and the value of the Fixed Account Options, systematic
withdrawals may reduce or even exhaust the Contract Value. Income taxes may
apply to systematic withdrawals. Please consult your tax adviser before taking
any withdrawal.
MINIMUM CONTRACT VALUE
If your request for a partial withdrawal would reduce the Contract Value to less
than $1,000, we may treat it as a request to withdraw your entire Contract
Value. Your Contract will terminate if you withdraw all of your Contract Value.
We will, however, ask you to confirm your withdrawal request before terminating
your Contract. If we terminate your Contract, we will distribute to you its
Contract Value, less withdrawal and other charges and premium taxes.
INCOME PAYMENTS
- -------------------------------------------------------------------------------
PAYOUT START DATE
The Payout Start Date is the day that income payments start under an Income
Plan. The Payout Start Date must be:
o at least one month after the Issue Date; and
o no later than the day the Annuitant reaches age 90, or the 10th
Contract Anniversary, if later.
You may change the Payout Start Date at any time by notifying us in writing of
the change at least 30 days before the scheduled Payout Start Date. If you do
not select an earlier Payout Start Date, the latest Payout Start Date will
automatically become the Payout Start Date.
INCOME PLANS
You may choose and change your choice of Income Plan until 30 days before the
Payout Start Date. If you do not select an Income Plan, we will make income
payments in accordance with Income Plan 1 with guaranteed payments for 10 years.
Three Income Plans are available under the Contract. Each is available to
provide:
o fixed income payments;
o variable income payments; or
o a combination of the two.
The three Income Plans are:
Income Plan 1 -- Life Income with Guaranteed Payments. Under this plan,
we make periodic income payments for at least as long as the Annuitant
lives. If the Annuitant dies before we have made all of the guaranteed
income payments, we will continue to pay the remainder of the
guaranteed income payments as required by the Contract.
Income Plan 2 -- Joint and Survivor Life Income with Guaranteed
Payments. Under this plan, we make periodic income payments for at
least as long as either the Annuitant or the joint Annuitant, named at
the time the plan was selected, is alive. If both the Annuitant and the
joint Annuitant die before we have made all of the guaranteed income
payments, we will continue to pay the remainder of the guaranteed
income payments as required by the Contract.
Income Plan 3 -- Guaranteed Payments for a Specified Period (5 Years to
30 Years). Under this plan, we make periodic income payments for the
period you have chosen. If the Annuitant dies before we have made all
of the guaranteed income payments, we will continue to pay the
remainder of the guaranteed income payments as required by the
Contract. Income payments for less than 120 months may be subject to a
withdrawal charge. We will deduct the mortality and expense risk charge
from the assets of the Variable Sub-Accounts supporting this Plan even
though we may not bear any mortality risk.
The length of any guaranteed payment period under your selected Income Plan
generally will affect the dollar amounts of each variable income payment. As a
general rule, longer guarantee periods result in lower income payments, all
other things being equal. For example, if you choose an Income Plan with
payments that depend on the life of the Annuitant but with no minimum specified
period for guaranteed payments, the variable income payments will be greater
than the variable income payments made under the same Income Plan with a minimum
specified period for guaranteed payments.
If you choose Income Plan 1 or 2, or, if available, another Income Plan with
payments that continue for the life of the Annuitant or joint Annuitant, we may
require proof of age and sex of the Annuitant or joint Annuitant before starting
income payments, and proof that the Annuitant or joint Annuitant are alive
before we make each payment.
Generally, you may not make withdrawals after the Payout Start Date. One
exception to this rule applies if you are receiving variable income payments
that do not depend on the life of the Annuitant (such as under Income Plan 3).
In that case you may terminate the Variable Account portion of the income
payments at any time and receive a lump sum equal to the present value of the
remaining variable payments due. A withdrawal charge may apply. We also assess
applicable premium taxes against all income payments.
We may make other Income Plans available. You may obtain information about them
by writing or calling us.
You may apply of your Contract Value to an Income Plan. You must apply at least
the Contract Value in the Fixed Account on the Payout Start Date to fixed income
payments. If you wish to apply any portion of your Fixed Account balance to
provide variable income payments, you should plan ahead and transfer that amount
to the Variable Sub-Accounts prior to the Payout Start Date. If you do not tell
us how to allocate your Contract Value among fixed and variable income payments,
we will apply your Contract Value in the Variable Account to variable income
payments and your Contract Value in the Fixed Account to fixed income payments.
We will apply your Contract Value, less applicable taxes, to your Income Plan on
the Payout Start Date. We can make income payments in monthly, quarterly,
semi-annual or annual installments, as you select. If the amount available to
apply under an Income Plan is less than $2,000, however, and state law permits,
we may pay you the Contract Value, less any applicable taxes, in a lump sum
instead of the periodic payments you have chosen. In addition, if your monthly
payments would be less than $20, and state law permits, we may reduce the
frequency of your payments so that each payment will be at least $20.
VARIABLE INCOME PAYMENTS
The amount of your variable income payments depends upon the investment results
of the Variable Sub-Accounts you select, the premium taxes you pay, the age and
sex of the Annuitant, and the Income Plan you choose. We guarantee that the
payments will not be affected by (a) actual mortality experience and (b) the
amount of our administration expenses.
We cannot predict the total amount of your variable income payments. Your
variable income payments may be more or less than your total purchase payments
because (a) variable income payments vary with the investment results of the
underlying Funds; and (b) the Annuitant could live longer or shorter than we
expect based on the tables we use.
In calculating the amount of the periodic payments in the annuity tables in the
Contract, we assumed an annual investment rate of 3%. (We reserve the right to
offer other assumed investment rates). If the actual net investment return of
the Variable Sub-Accounts you choose is less than this assumed investment rate,
then the dollar amount of your variable income payments will decrease. The
dollar amount of your variable income payments will increase, however, if the
actual net investment return exceeds the assumed investment rate. The dollar
amount of the variable income payments stays level if the net investment return
equals the assumed investment rate. Please refer to the Statement of Additional
Information for more detailed information as to how we determine variable income
payments.
FIXED INCOME PAYMENTS
We guarantee income payment amounts derived from any Fixed Account Option for
the duration of the Income Plan. We calculate the fixed income payments by:
1) deducting any applicable premium tax; and
2) applying the resulting amount to the greater of (a) the appropriate value
from the income payment table in your Contract or (b) such other value as
we are offering at that time.
We may defer making fixed income payments for a period of up to six months or
whatever shorter time state law may require. If we defer payments for 30 days or
more, we will pay interest as required by law from the date we receive the
withdrawal request to the date we make payment.
RETIREMENT INCOME GUARANTEE RIDERS
For Contract Owners up to and including age 75, you have the option to add to
your Contract one of two Retirement Income Guarantee Riders (Rider 1 or Rider
2). Each Rider guarantees a minimum dollar amount (we call the "guaranteed
income benefit") to be applied to an Income Plan. You may elect this benefit up
to your latest Payout Start Date. The Riders may not be available in all states.
Eligibility. To qualify for this benefit, you must meet the following conditions
as of the Payout Start Date:
o You must elect a Payout Start Date that is on or after the 10th anniversary
of the date we issued the Rider (the "Rider Date");
o The Payout Start Date must occur during the 30 day period following a
Contract Anniversary;
o You must elect to receive fixed income payments; and
o The Income Plan you have selected must provide for payments guaranteed for
either a single life or joint lives with a specified period of at least:
o 10 years, if the youngest Annuitant's age is 80 or less on the date the
amount is applied, or
o 5 years, if the youngest Annuitant's age is greater than 80 on the date the
amount is applied.
Retirement Income Guarantee Rider 1. This Rider guarantees that the amount you
apply to an Income Plan will not be less than the total of your purchase
payments less any withdrawals and any applicable taxes.
The current charge for this Rider, on an annual basis, is 0.05% multiplied by
the Income Base in effect on each Contract Anniversary. We deduct the fee only
from your assets in the Variable Sub-Account(s). In the case of a full
withdrawal of the Contract Value on any date other than the Contract
Anniversary, we will deduct the Rider fee from the amount paid upon withdrawal.
In the case of a full withdrawal, the Rider fee is equal to 0.05% multiplied by
the income base immediately prior to the withdrawal.
We calculate the Income Base that we use to determine the value of the
guaranteed income benefit as follows:
1) On the Rider Date, the income base is equal to the Contract Value.
2) After the Rider Date, we recalculate the Income Base when a purchase
payment or withdrawal is made as follows:
(a) For purchase payments, the Income Base is equal to the most recently
calculated Income Base plus the purchase payment.
(b) For withdrawals, the Income Base is equal to the most recently
calculated Income Base reduced by a withdrawal adjustment, described
below.
In the absence of any withdrawals or purchase payments, the Income Base will be
equal to the Contract Value as of the Rider Date.
The withdrawal adjustment is equal to (1) divided by (2), with the result
multiplied by (3), where:
1) = withdrawal amount,
2) = the Contract Value immediately prior to the withdrawal, and
3) = the most recently calculated Income Base.
See Appendix A for an example representative of how the withdrawal adjustment
applies.
The guaranteed income benefit amount is determined by applying the Income Base,
less any applicable taxes, to the guaranteed rates for the Income Plan that you
select. On the Payout Start Date, the income payment will be the greater of (i)
the income payment produced by the guaranteed income benefit and (ii) the income
payment provided in the fixed amount income payment provision of the Contract.
Retirement Income Guarantee Rider 2. This Rider guarantees that the amount you
apply to an Income Plan will not be less than the greater of Income Base A or
Income Base B described below:
The current annual charge for this Rider is 0.30% multiplied by the Income Base
in effect on each Contract Anniversary. We deduct the fee only from the Variable
Sub-Account(s). In the case of a full withdrawal of the Contract Value on any
date other than the Contract Anniversary, we will deduct the Rider fee from the
amount paid upon withdrawal. In the case of a full withdrawal, the Rider fee is
equal to 0.30% multiplied by the income base immediately prior to the
withdrawal.
The income base is the greater of Income Base A and Income Base B. We determine
each income base as follows:
Income Base A. On the Rider Date, Income Base A is equal to the Contract Value.
After the Rider Date, we recalculate Income Base A as follows on the Contract
Anniversary and when a purchase payment or withdrawal is made:
1) For purchase payments, Income Base A is equal to the most recently
calculated Income Base plus the purchase payment.
2) For withdrawals, Income Base A is equal to the most recently calculated
income base reduced by a withdrawal adjustment.
3) On each Contract Anniversary, Income Base A is equal to the greater of the
Contract Value on that date or the most recently calculated Income Base A.
In the absence of any withdrawals or purchase payments, Income Base A will be
equal to the greatest Contract Value as of the date and all Contract Anniversary
Contract Values between the Rider Date and the Payout Start Date. We will
recalculate Income Base A for purchase payments, for withdrawals and on Contract
Anniversaries until the first Contract Anniversary after the 85th birthday of
the oldest Contract Owner or, if no Contract Owner is a living individual, the
oldest Annuitant. After that date, we will recalculate Income Base A for
purchase payments and withdrawals.
Income Base B. On the Rider Date, Income Base B is equal to the Contract Value.
After the Rider Date, Income Base B, plus any subsequent purchase payments and
less a withdrawal adjustment for any subsequent withdrawals, will accumulate
daily at a rate equal to 6% per year until the first day of the month following
the oldest Contract Owner's or, if the Contract Owner is not a living
individual, the Annuitant's 85th birthday.
For purposes of computing Income Base A or B, the withdrawal adjustment is equal
to (1) divided by (2), with the result multiplied by (3), where:
1) = withdrawal amount,
2) = the Contract Value immediately prior to the withdrawal, and
3) = the most recently calculated Income Base.
See Appendix A for an example representative of how the withdrawal adjustment
applies.
We determine the guaranteed income benefit amount by applying the income base,
less any applicable taxes, to the guaranteed rates for the Income Plan that you
select. On the Payout Start Date, the income payment will be the greater of (i)
the income payment provided by the guaranteed income benefit or (ii) the income
payment provided in the fixed amount income payment provision of the Contract.
CERTAIN EMPLOYEE BENEFIT PLANS
The Contracts offered by this prospectus contain income payment tables that
provide for different payments to men and women of the same age, except in
states that require unisex tables. We reserve the right to use income payment
tables that do not distinguish on the basis of sex to the extent permitted by
applicable law. In certain employment-related situations, employers are required
by law to use the same income payment tables for men and women. Accordingly, if
the Contract is to be used in connection with an employment-related retirement
or benefit plan and we do not offer unisex annuity tables in your state, you
should consult with legal counsel as to whether the purchase of a Contract is
appropriate.
DEATH BENEFITS
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We will pay a death benefit if, prior to the Payout Start Date:
1) any Contract Owner dies, or
2) the Annuitant dies.
We will pay the death benefit to the new Contract Owner as determined
immediately after the death. The new Contract Owner would be a surviving
Contract Owner or, if none, the Beneficiary. In the case of the death of the
Annuitant, we will pay the death benefit to the current Contract Owner.
Death Benefit Amount
Prior to the Payout Start Date, the death benefit is equal to the greatest of
the following death benefit alternatives:
1) the Contract Value as of the date we determine the death benefit, or
2) the sum of all purchase payments made less an adjustment for withdrawals
(see "Withdrawal Adjustment" below), or
3) the most recent Maximum Anniversary Value prior to the date we determine
the death benefit (see "Maximum Anniversary Value" below).
We will determine the value of the death benefit as of the end of the Valuation
Date on which we receive a complete request for payment of the death benefit. If
we receive a request after 3 p.m. Central Time on a Valuation Date, we will
process the request as of the end of the following Valuation Date. A request for
payment of the death benefit must include Due Proof of Death. We will accept the
following documentation as "Due Proof of Death":
o a certified copy of a death certificate,
o a certified copy of a decree of a court of competent jurisdiction as to the
finding of death, or
o other documentation as we may accept in our sole discretion.
Withdrawal Adjustment. The withdrawal adjustment is equal to (a) divided by (b),
with the result multiplied by (c), where:
(a) = the withdrawal amount,
(b) = the Contract Value immediately prior to the withdrawal, and
(c) = the value of the applicable death benefit alternative immediately prior
to the withdrawal.
See Appendix A for an example of a withdrawal adjustment.
Maximum Anniversary Value. On the Issue Date, the Maximum Anniversary Value is
equal to the initial purchase payment. After the Issue Date, we recalculate the
Maximum Anniversary Value when a purchase payment or withdrawal is made or on a
Contract Anniversary as follows:
1) For purchase payments, the Maximum Anniversary Value is equal to the most
recently calculated Maximum Anniversary Value plus the purchase payment.
2) For withdrawals, the Maximum Anniversary Value is equal to the most
recently calculated Maximum Anniversary Value reduced by a withdrawal
adjustment, as defined above.
3) On each Contract Anniversary, the Maximum Anniversary Value is equal to the
greater of the Contract Value or the most recently calculated Maximum
Anniversary Value.
In the absence of any withdrawals or purchase payments, the Maximum Anniversary
Value will be the greatest of all anniversary Contract Values on or prior to the
date we calculate the death benefit.
We will recalculate the Maximum Anniversary Value until the first Contract
Anniversary after the 80th birthday of the oldest Contract Owner or, if no
Contract Owner is a living individual, the Annuitant. After that date, we will
recalculate the Maximum Anniversary Value only for purchase payments and
withdrawals. The Maximum Anniversary Value will never be greater than the
maximum death benefit allowed by any applicable state non-forfeiture laws .
ENHANCED BENEFICIARY PROTECTION OPTION
The Enhanced Beneficiary Protection Option is an optional benefit that you may
elect. If you elect the Option, the death benefit will be the greater of the
death benefit alternatives (1) through (3) listed above, or (4) the Enhanced
Beneficiary Protection Option. The Enhanced Beneficiary Protection Option may
not be available in all states.
We will issue a rider to your Contract if you elect the Option. The Enhanced
Beneficiary Protection Option on the date we issue the Contract rider ("Rider
Date") is equal to the Contract Value on that date. After the Rider Date, the
Enhanced Beneficiary Protection Option, plus any subsequent payments and less a
withdrawal adjustment, will accumulate daily at the rate of 5% per year until
the earlier of:
1) the date we determine the death benefit, or
2) the first Contract Anniversary following the 80th birthday of the oldest
Contract Owner or, if no Contract Owner is a living individual, the 80th
birthday of the oldest Annuitant.
We will determine the death benefit under the Enhanced Beneficiary Protection
Option in the same manner as described under "Death Benefit Amount."
Death Benefit Payments
Death of Contract Owner. Within 180 days of the date of your death, the new
Contract Owner may elect to:
1) receive the death benefit in a lump sum, or
2) apply an amount equal to the death benefit to one of the available Income
Plans described above. Income payments must be:
(a) over the life of the new Contract Owner,
(b) for a guaranteed number of payments from 5 to 30 years but not to
exceed the life expectancy of the new Contract Owner, or
(c) over the life of the new Contract Owner with a guaranteed number of
payments from 5 to 30 years but not to exceed the life expectancy of
the new Contract Owner.
Otherwise, the new Contract Owner will receive the Settlement Value. The
"Settlement Value" is the Contract Value, less any applicable withdrawal charge,
contract maintenance charge, and premium tax. We will calculate the Settlement
Value as of the end of the Valuation Date coinciding with the requested
distribution date for payment or on the mandatory distribution date of 5 years
after the date of your death, whichever is earlier. If we receive a request
after 3 p.m. Central Time on a Valuation Date, we will process the request as of
the end of the following Valuation Date. We are currently waiving the 180 day
limit, but we reserve the right to enforce the limitation in the future.
In any event, the entire value of the Contract must be distributed within 5
years after the date of death unless an Income Plan is elected or a surviving
spouse continues the Contract in accordance with the provisions described below.
If the new Contract Owner is your spouse, then he or she may elect one of the
options listed above or may continue the Contract in the Accumulation Phase as
if the death had not occurred. On the date the Contract is continued, the
Contract Value will equal the amount of the death benefit as determined as of
the Valuation Date on which we received Due Proof of Death (the next Valuation
Date if we receive Due Proof of Death after 3pm Cetnral Time). The Contract may
only be continued once. If the surviving spouse continues the Contract in the
Accumulation Phase, the surviving spouse may make a single withdrawal of any
amount within 1 year of the date of death without incurring a withdrawal charge.
Prior to the Payout start Date, the death benefit for the continued Contract
will be the greater of:
o the sum of all purchase payments reduced by a withdrawal adjustment, as
defined under the "Death Benefit amount" section; or
o the Contract Value on the date we determine the death benefit; or
o the Maximum Anniversary Value as defined in the "Death Benefit Amount"
section, with the following changes:
o "Issue Date" is replaced by the date the Contract is continued,
o "Initial Purchase Payment" is replaced with the death benefit as
described at the end of the Valuation Period during which we received
Due Proof of Death.
For Contracts with the optional Enhanced Beneficiary Protection option.
o the Enhanced Beneficiary Protection value as defined in the Rider, with
the following changes:
o "Rider Date" is replaced by the date the Contract is continued
o "Contract Value" is replaced with the death benefit as described at
the end of the Valuation Period during which we received Due Proof of
Death.
If the new Contract Owner is corporation, trust, or other non-natural person,
then the new Contract Owner may elect, within 180 days of your death, to receive
the death benefit in lump sum or may elect to receive the Settlement Value in a
lump sum within 5 years of death. We are currently waiving the 180 day limit,
but we reserve the right to enforce the limitation in the future.
Death of Annuitant. If the Annuitant who is not also the Contract Owner dies
prior to the Payout Start Date, the Contract Owner must elect one of the
applicable options described below.
If the Contract Owner is a natural person, the Contract Owner may elect to
continue the Contract as if the death had not occurred, or, if we receive Due
Proof of Death within 180 days of the date of the Annuitant's death, the
Contract Owner may choose to:
1) receive the death benefit in a lump sum; or
2) apply the death benefit to an Income Plan that must begin within 1
year of the date of death.
If the Contract Owner elects to continue the Contract or to apply the death
benefit to an Income Plan, the new Annuitant will be the youngest Contract
Owner, unless the Contract Owner names a different Annuitant.
If the Contract Owner is a non-natural person, the non-natural Contract Owner
may elect, within 180 days of the Annuitant's date of death, to receive the
death benefit in a lump sum or may elect to receive the Settlement Value payable
in a lump sum within 5 years of the Annuitant's date of death. If the
non-natural Contract Owner does not make one of the above described elections,
the Settlement Value must be withdrawn by the non-natural Contract Owner on or
before the mandatory distribution date 5 years after the Annuitant's death. We
are currently waiving the 180 day limit, but we reserve the right to enforce the
limitation in the future.
MORE INFORMATION
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ALLSTATE
Allstate is the issuer of the Contract. Allstate is an Illinois stock life
insurance company organized in 1957.
Allstate is licensed to operate in the District of Columbia, Puerto Rico, and
all states except New York. We intend to offer the Contract in those
jurisdictions in which we are licensed. Our home office is located at 3100
Sanders Road, Northbrook, Illinois, 60062.
Allstate is a wholly owned subsidiary of Allstate Insurance Company, a stock
property-liability insurance company incorporated under the laws of Illinois.
All of the outstanding capital stock of Allstate Insurance Company is owned by
The Allstate Corporation.
Several independent rating agencies regularly evaluate life insurers'
claims-paying ability, quality of investments, and overall stability. A.M. Best
Company assigns A+ (Superior) to Allstate. Standard & Poor's Insurance Rating
Services assigns an AA+ (Very Strong) financial strength rating and Moody's
assigns an Aa2 (Excellent) financial strength rating to Allstate. These ratings
do not reflect the investment performance of the Variable Account. We may from
time to time advertise these ratings in our sales literature.
THE VARIABLE ACCOUNT
Allstate established the Allstate Life Insurance Company Separate Account A on
January 27, 1999. We have registered the Variable Account with the SEC as a unit
investment trust. The SEC does not supervise the management of the Variable
Account or Allstate.
We own the assets of the Variable Account. The Variable Account is a segregated
asset account under Illinois law. That means we account for the Variable
Account's income, gains and losses separately from the results of our other
operations. It also means that only the assets of the Variable Account that are
in excess of the reserves and other Contract liabilities with respect to the
Variable Account are subject to liabilities relating to our other operations.
Our obligations arising under the Contracts are general corporate obligations of
Allstate.
The Variable Account consists of 22 Variable Sub-Accounts, each of which invests
in a corresponding Fund. We may add new Variable Sub-Accounts or eliminate one
or more of them, if we believe marketing, tax, or investment conditions so
warrant. We do not guarantee the investment performance of the Variable Account,
its Sub-Accounts or the Funds. We may use the Variable Account to fund our other
annuity contracts. We will account separately for each type of annuity contract
funded by the Variable Account.
THE FUNDS
Dividends and Capital Gain Distributions. We automatically reinvest all
dividends and capital gains distributions from the Funds in shares of the
distributing Funds at their net asset value.
Voting Privileges. As a general matter, you do not have a direct right to vote
the shares of the Funds held by the Variable Sub-Accounts to which you have
allocated your Contract Value. Under current law, however, you are entitled to
give us instructions on how to vote those shares on certain matters. Based on
our present view of the law, we will vote the shares of the Funds that we hold
directly or indirectly through the Variable Account in accordance with
instructions that we receive from Contract Owners entitled to give such
instructions.
As a general rule, before the Payout Start Date, the Contract Owner or anyone
with a voting interest is the person entitled to give voting instructions. The
number of shares that a person has a right to instruct will be determined by
dividing the Contract Value allocated to the applicable Variable Sub-Account by
the net asset value per share of the corresponding Fund as of the record date of
the meeting. After the Payout Start Date the person receiving income payments
has the voting interest. The payee's number of votes will be determined by
dividing the reserve for such Contract allocated to the applicable Sub-account
by the net asset value per share of the corresponding Fund. The votes decrease
as income payments are made and as the reserves for the Contract decrease.
We will vote shares attributable to Contracts for which we have not received
instructions, as well as shares attributable to us, in the same proportion as we
vote shares for which we have received instructions, unless we determine that we
may vote such shares in our own discretion. We will apply voting instructions to
abstain on any item to be voted upon on a pro-rata basis to reduce the votes
eligible to be cast.
We reserve the right to vote Fund shares as we see fit without regard to voting
instructions to the extent permitted by law. If we disregard voting
instructions, we will include a summary of that action and our reasons for that
action in the next semi-annual financial report we send to you.
Changes in Funds. If the shares of any of the Funds are no longer available for
investment by the Variable Account or if, in our judgment, further investment in
such shares is no longer desirable in view of the purposes of the Contract, we
may eliminate that Fund and substitute shares of another eligible investment
fund. Any substitution of securities will comply with the requirements of the
1940 Act. We also may add new Variable Sub-Accounts that invest in additional
mutual funds. We will notify you in advance of any change.
Conflicts of Interest. The Funds sell their shares to separate accounts
underlying both variable life insurance and variable annuity contracts. It is
conceivable that in the future it may be unfavorable for variable life insurance
separate accounts and variable annuity separate accounts to invest in the same
Fund. The board of directors of the Funds monitors for possible conflicts among
separate accounts buying shares of the Funds. Conflicts could develop for a
variety of reasons. For example, differences in treatment under tax and other
laws or the failure by a separate account to comply with such laws could cause a
conflict. To eliminate a conflict, the Funds' board of directors may require a
separate account to withdraw its participation in a Fund. A Fund's net asset
value could decrease if it had to sell investment securities to pay redemption
proceeds to a separate account withdrawing because of a conflict.
THE CONTRACT
Distribution. Allstate Life Financial Services ("ALFS"), located at 3100 Sanders
Road, Northbrook, IL 60062-7154, serves as principal underwriter of the
Contracts. ALFS is a wholly owned subsidiary of Allstate. ALFS is a registered
broker dealer under the Securities and Exchange Act of 1934, as amended
("Exchange Act"), and is a member of the National Association of Securities
Dealers, Inc. ALFS also is registered as an investment adviser under the
Investment Advisers Act of 1940, as amended. Contracts are sold by registered
representatives of unaffiliated broker-dealers or bank employees who are
licensed insurance agents appointed by Allstate, either individually or through
an incorporated insurance agency and have entered into a selling agreement with
ALFS to sell the Contract.
We will pay commissions to broker-dealers who sell the Contracts. Commissions
paid may vary, but we estimate that the total commission paid on all Contract
sales will not exceed 6% of all purchase payments (on a present value basis).
From time to time, we may pay or permit other promotional incentives, in cash or
credit or other compensation. The commission is intended to cover distribution
expenses. In some states, Contracts may be sold by representatives or employees
of banks which may be acting as broker-dealers without separate registration
under the Exchange Act, pursuant to legal and regulatory exceptions.
Allstate may pay ALFS a commission for distribution of the Contracts. The
underwriting agreement with ALFS provides that we will reimburse ALFS for
expenses incurred in distributing the Contracts, including any liability to
Contract Owners arising out of services rendered or Contracts issued.
For Contracts issued to employees of Allstate and certain other eligible
organizations, and in lieu of Allstate paying any commissions on sales of those
Contracts, the Contract Owner will receive a credit of 6% of the amount of each
purchase payment that will be applied to each purchase payment. Allstate will
allocate this credit in the same allocation as your most recent instruction. If
you exercise your Right to Cancel your Contract as described in this prospectus,
we will return to you the amount you would have received had there been no
credit. Unless we are required by law to return your purchase payments, this
amount also will include any charges deducted that reduced your Contract Value
prior to cancellation, plus any investment gain on the credit. The credit may
not be available in all states. We do not consider the credit to be an
"investment in the contract" for income tax purposes.
Administration. We have primary responsibility for all administration of the
Contracts and the Variable Account.
We provide the following administrative services, among others:
o issuance of the Contracts;
o maintenance of Contract Owner records;
o Contract Owner services;
o calculation of unit values;
o maintenance of the Variable Account; and
o preparation of Contract Owner reports.
We will send you Contract statements and transaction confirmations at least
annually. You should notify us promptly in writing of any address change. You
should read your statements and confirmations carefully and verify their
accuracy. You should contact us promptly if you have a question about a periodic
statement. We will investigate all complaints and make any necessary adjustments
retroactively, but you must notify us of a potential error within a reasonable
time after the date of the questioned statement. If you wait too long, we will
make the adjustment as of the date that we receive notice of the potential
error.
We will also provide you with additional periodic and other reports, information
and prospectuses as may be required by federal securities laws.
QUALIFIED PLANS
If you use the Contract with a qualified plan, the plan may impose different or
additional conditions or limitations on withdrawals, waivers of withdrawal
charges, death benefits, Payout Start Dates, income payments, and other Contract
features. In addition, adverse tax consequences may result if qualified plan
limits on distributions and other conditions are not met. Please consult your
qualified plan administrator for more information.
LEGAL MATTERS
Freedman, Levy, Kroll & Simonds, Washington, D.C., has advised Allstate on
certain federal securities law matters. All matters of Illinois law pertaining
to the Contracts, including the validity of the Contracts and Allstate's right
to issue such Contracts under Illinois insurance law, have been passed upon by
Michael J. Velotta, General Counsel of Allstate.
YEAR 2000
Allstate is heavily dependent upon complex computer systems for all phases of
its operations, including customer service, and policy and contract
administration. Since many of Allstate's older computer software programs
recognize only the last two digits of the year in any date, some software may
fail to operate properly in or after the year 1999, if the software is not
reprogrammed or replaced ("Year 2000 Issue"). Allstate believes that many of its
counterparties and suppliers also have Year 2000 Issues which could affect
Allstate. In 1995, Allstate Insurance Company commenced a plan intended to
mitigate and/or prevent the adverse effects of the Year 2000 Issue. These
strategies include normal development and enhancement of new and existing
systems, upgrades to operating systems already covered by maintenance agreements
and modifications to existing systems to make them Year 2000 compliant. The plan
also includes Allstate actively working with its major external counterparties
and suppliers to assess their compliance efforts and Allstate's exposure to
them. Allstate presently believes that it will resolve the Year 2000 Issue in a
timely manner, and the financial impact will not materially affect its results
of operations, liquidity or financial position. Year 2000 costs are and will be
expensed as incurred.
TAXES
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The following discussion is general and is not intended as tax advice. Allstate
makes no guarantee regarding the tax treatment of any Contract or transaction
involving a Contract.
Federal, state, local and other tax consequences of ownership or receipt of
distributions under an annuity contract depend on your individual circumstances.
If you are concerned about any tax consequences with regard to your individual
circumstances, you should consult a competent tax adviser.
Taxation of Annuities in General
Tax Deferral. Generally, you are not taxed on increases in the contract value
until a distribution occurs. This rule applies only where:
1) the owner is a natural person,
2) the investments of the Variable Account are "adequately diversified"
according to Treasury Department regulations, and
3) Allstate is considered the owner of the Variable Account assets
for federal income tax purposes.
Non-natural Owners. As a general rule, annuity contracts owned by non-natural
persons such as corporations, trusts, or other entities are not treated as
annuity contracts for federal income tax purposes. The income on such contracts
is taxed as ordinary income received or accrued by the owner during the taxable
year. Please see the Statement of Additional Information for a discussion of
several exceptions to the general rule for contracts owned by non-natural
persons.
Diversification Requirements. For a Contract to be treated as an annuity for
federal income tax purposes, the investments in the Variable Account must be
"adequately diversified" consistent with standards under Treasury Department
regulations. If the investments in the Variable Account are not adequately
diversified, the Contract will not be treated as an annuity contract for federal
income tax purposes. As a result, the income on the Contract will be taxed as
ordinary income received or accrued by the owner during the taxable year.
Although Allstate does not have control over the Funds or their investments, we
expect the Funds to meet the diversification requirements.
Ownership Treatment. The IRS has stated that you will be considered the owner of
Variable Account assets if you possess incidents of ownership in those assets,
such as the ability to exercise investment control over the assets. At the time
the diversification regulations were issued, the Treasury Department announced
that the regulations do not provide guidance concerning circumstances in which
investor control of the Variable Account investments may cause an investor to be
treated as the owner of the Variable Account. The Treasury Department also
stated that future guidance would be issued regarding the extent that Owners
could direct sub-account investments without being treated as Owners of the
underlying assets of the separate account.
Your rights under the Contract are different than those described by the IRS in
rulings in which it found that contract Owners were not Owners of separate
account assets. For example, you have the choice to allocate premiums and
Contract Values among more investment alternatives. Also, you may be able to
transfer among investment alternatives more frequently than in such rulings.
These differences could result in you being treated as the owner of the Variable
Account. If this occurs, income and gain from the Variable Account assets would
be includible in your gross income. Allstate does not know what standards will
be set forth in any regulations or rulings which the Treasury Department may
issue. It is possible that future standards announced by the Treasury Department
could adversely affect the tax treatment of your Contract. We reserve the right
to modify the Contract as necessary to attempt to prevent you from being
considered the federal tax owner of the assets of the Variable Account. However,
we make no guarantee that such modification to the Contract will be successful.
Taxation of Partial and Full Withdrawals. If you make a partial withdrawal under
a non-Qualified Contract, amounts received are taxable to the extent the
Contract Value, without regard to surrender charges, exceeds the investment in
the Contract. The investment in the Contract is the gross premium paid for the
contract minus any amounts previously received from the Contract if such amounts
were properly excluded from your gross income. If you make a partial withdrawal
under a Qualified Contract, the portion of the payment that bears the same ratio
to the total payment that the investment in the Contract (i.e., nondeductible
IRA contributions, after tax contributions to qualified plans) bears to the
Contract Value, is excluded from your income. If you make a full withdrawal
under a non-Qualified Contract or a Qualified Contract, the amount received will
be taxable only to the extent it exceeds the investment in the Contract.
"Nonqualified distributions" from Roth IRAs are treated as made from
contributions first and are included in gross income only to the extent that
distributions exceed contributions. "Qualified distributions" from Roth IRAs are
not included in gross income. "Qualified distributions" are any distributions
made more than five taxable years after the taxable year of the first
contribution to any Roth IRA and which are:
o made on or after the date the individual attains age 59 1/2,
o made to a beneficiary after the Contract Owner's death,
o attributable to the Contract Owner being disabled, or
o for a first time home purchase (first time home purchases are subject to a
lifetime limit of $10,000).
If you transfer a non-Qualified Contract without full and adequate consideration
to a person other than your spouse (or to a former spouse incident to a
divorce), you will be taxed on the difference between the Contract Value and the
investment in the Contract at the time of transfer. Except for certain Qualified
Contracts, any amount you receive as a loan under a Contract, and any assignment
or pledge (or agreement to assign or pledge) of the Contract Value is treated as
a withdrawal of such amount or portion.
Taxation of Annuity Payments. Generally, the rule for income taxation of annuity
payments received from a nonqualified contract provides for the return of your
investment in the Contract in equal tax-free amounts over the payment period.
The balance of each payment received is taxable. For fixed annuity payments, the
amount excluded from income is determined by multiplying the payment by the
ratio of the investment in the Contract (adjusted for any refund feature or
period certain) to the total expected value of annuity payments for the term of
the Contract. If you elect variable annuity payments, the amount excluded from
taxable income is determined by dividing the investment in the Contract by the
total number of expected payments. The annuity payments will be fully taxable
after the total amount of the investment in the Contract is excluded using these
ratios. If you die, and annuity payments cease before the total amount of the
investment in the Contract is recovered, the unrecovered amount will be allowed
as a deduction for your last taxable year.
Taxation of Annuity Death Benefits. Death of a Contract Owner, or death of the
Annuitant if the Contract is owned by a non-natural person, will cause a
distribution of death benefits from a Contract. Generally, such amounts are
included in income as follows:
1) if distributed in a lump sum, the amounts are taxed in the same manner as a
full withdrawal, or
2) if distributed under an Income Plan, the amounts are taxed in the same
manner as an income payment. Please see the Statement of Additional
Information for more detail on distribution at death requirements.
Penalty Tax on Premature Distributions. A 10% penalty tax applies to the taxable
amount of any premature distribution from a nonqualified contract. The penalty
tax generally applies to any distribution made prior to the date you attain age
59 1/2. However, no penalty tax is incurred on distributions:
1) made on or after the date the Contract Owner attains age 59 1/2,
2) made as a result of the Contract Owner's death or disability,
3) made in substantially equal periodic payments over the Contract Owner's
life or life expectancy,
4) made under an immediate annuity, or
5) attributable to investment in the Contract before August 14, 1982.
You should consult a competent tax advisor to determine if any other exceptions
to the penalty apply to your situation. Similar exceptions may apply to
distributions from Qualified Contracts.
Aggregation of Annuity Contracts. All non-qualified deferred annuity contracts
issued by Allstate (or its affiliates) to the same Conract Owner during any
calendar year will be aggregated and treated as one annuity contract for
purposes of determining the taxable amount of a distribution.
Tax Qualified Contracts
Contracts may be used as investments with certain qualified plans such as:
o Individual Retirement Annuities or Accounts (IRAs) under Section 408 of the
Code;
o Roth IRAs under Section 408A of the Code;
o Simplified Employee Pension Plans under Section 408(k) of the Code;
o Savings Incentive Match Plans for Employees (SIMPLE) Plans under Section
408(p) of the Code;
o Tax Sheltered Annuities under Section 403(b) of the Code;
o Corporate and Self Employed Pension and Profit Sharing Plans; and
o State and Local Government and Tax-Exempt Organization Deferred
Compensation Plans.
In the case of certain qualified plans, the terms of the plans may govern the
right to benefits, regardless of the terms of the Contract.
Restrictions Under Section 403(b) Plans. Section 403(b) of the Tax Code provides
tax-deferred retirement savings plans for employees of certain non-profit and
educational organizations. Under Section 403(b), any contract used for a 403(b)
plan must provide that distributions attributable to salary reduction
contributions made after 12/31/88, and all earnings on salary reduction
contributions, may be made only on or after the date the employee:
o attains age 59 1/2,
o separates from service,
o dies,
o becomes disabled, or
o on account of hardship (earnings on salary reduction contributions may
not be distributed on the account of hardship).
These limitations do not apply to withdrawals where Allstate is directed to
transfer some or all of the contract value to another 403(b) plan.
Income Tax Withholding
Allstate is required to withhold federal income tax at a rate of 20% on all
"eligible rollover distributions" unless you elect to make a "direct rollover"
of such amounts to an IRA or eligible retirement plan. Eligible rollover
distributions generally include all distributions from Qualified Contracts,
excluding IRAs, with the exception of:
(1) required minimum distributions, or
(2) a series of substantially equal periodic payments made over a period of at
least 10 years, or,
(3) over the life (joint lives) of the participant (and beneficiary).
Allstate may be required to withhold federal and state income taxes on any
distributions from non-Qualified Contracts or Qualified Contracts that are not
eligible rollover distributions, unless you notify us of your election to not
have taxes withheld.
PERFORMANCE INFORMATION
- ------------------------------------------------------------------------------
We may advertise the performance of the Variable Sub-Accounts, including yield
and total return information. Total return represents the change, over a
specified period of time, in the value of an investment in a Variable
Sub-Account after reinvesting all income distributions. Yield refers to the
income generated by an investment in a Variable Sub-Account over a specified
period. All performance advertisements will include, as applicable, standardized
yield and total return figures that reflect the deduction of insurance charges,
the contract maintenance charge, and withdrawal charge. Performance
advertisements also may include total return figures that reflect the deduction
of insurance charges, but not the contract maintenance or withdrawal charges.
The deduction of such charges would reduce the performance shown. In addition,
performance advertisements may include aggregate, average, year-by-year, or
other types of total return figures.
Performance information for periods prior to the inception date of the Variable
Sub-Accounts will be based on the historical performance of the corresponding
Funds for the periods beginning with the inception dates of the Funds and
adjusted to reflect current Contract expenses. You should not interpret these
figures to reflect actual historical performance of the Variable Account.
We may include in advertising and sales materials tax deferred compounding
charts and other hypothetical illustrations that compare currently taxable and
tax deferred investment programs based on selected tax brackets. Our
advertisements also may compare the performance of our Variable Sub-Accounts
with: (a) certain unmanaged market indices, including but not limited to the Dow
Jones Industrial Average, the Standard & Poor's 500, and the Shearson Lehman
Bond Index; and/or (b) other management investment companies with investment
objectives similar to the underlying funds being compared. In addition, our
advertisements may include the performance ranking assigned by various
publications, including the Wall Street Journal, Forbes, Fortune, Money,
Barron's, Business Week, USA Today, and statistical services, including Lipper
Analytical Services Mutual Fund Survey, Lipper Annuity and Closed End Survey,
the Variable Annuity Research Data Survey, and SEI.
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
Page
ADDITIONS, DELETIONS, OR SUBSTITUTIONS OF INVESTMENTS.................... 2
THE CONTRACT............................................................. 3
PERFORMANCE INFORMATION.................................................. 4
CALCULATION OF ACCUMULATION UNIT VALUES.................................. 9
CALCULATION OF VARIABLE INCOME PAYMENTS.................................. 10
GENERAL MATTERS.......................................................... 11
FEDERAL TAX MATTERS...................................................... 12
QUALIFIED PLANS.......................................................... 13
EXPERTS.................................................................. 15
COMBINED STATUTORY BASIS FINANCIAL STATEMENTS............................ F-1
-----------------------------------------------
This prospectus does not constitute an offering in any jurisdiction in which
such offering may not lawfully be made. We do not authorize anyone to provide
any information or representations regarding the offering described in this
prospectus other than as contained in this prospectus.
Appendix A
Withdrawal Adjustment Example
Issue Date: January 1, 1999
Initial Purchase Payment: $ 50,000
- ------------------------------------------------------------------------------------------------------------------------
Death Benefit Amount
Contract ------------------------------
Type Contract Value Purchase Maximum
of Value Before Transaction After Payment Anniversary
Date Occurrence Occurence Amount Occurrence Value Value
- ------------------------------------------------------------------------------------------------------------------------
1/1/99 Issue Date -- $ 50,000 $ 50,000 $ 50,000 $ 50,000
1/1/00 Contract Anniversary $ 55,000 -- $ 55,000 $ 50,000 $ 55,000
7/1/00 Partial Withdrawal $ 60,000 $ 15,000 $ 45,000 $ 37,500 $ 41,250
- ------------------------------------------------------------------------------------------------------------------------
Withdrawal adjustment equals the partial withdrawal amount divided by the
Contract Value immediately prior to the partial withdrawal multiplied by the
value of the applicable death benefit amount alternative immediately prior to
the partial withdrawal.
Purchase Payment Value Death Benefit
Partial Withdrawal Amount (w) $ 15,000
Contract Value Immediately Prior to Partial Withdrawal (a) $ 60,000
Value of Applicable Death Benefit Amount Immediately Prior to Partial Withdrawal (d) $ 50,000
Withdrawal Adjustment [(w)/(a)]*(d) $ 12,500
Adjusted Death Benefit $ 37,500
Maximum Anniversary Value Death Benefit
Partial Withdrawal Amount (w) $ 15,000
Contract Value Immediately Prior to Partial Withdrawal (a) $ 60,000
Value of Applicable Death Benefit Amount Immediately Prior to Partial Withdrawal (d) $ 55,000
Withdrawal Adjustment [(w)/(a)]*(d) $ 13,750
Adjusted Death Benefit $ 41,250
This example represents the proportional reduction applicable in all Contracts.
For Contracts with optional riders,
The Putnam Allstate Advisor
Allstate Life Insurance Company Statement of Additional Information
3100 Sanders Road dated April 30, 1999
Northbrook, Illinois 60062
1-800-390-1277
This Statement of Additional Information supplements the information in the
prospectus for The Putnam Allstate Advisor. This Statement of Additional
Information is not a prospectus. You should read it with the prospectus, dated
April 30, 1999, for the Contract. You may obtain a prospectus by calling or
writing us at the address or telephone number listed above.
Except as otherwise noted, this Statement of Additional Information uses the
same defined terms as the prospectus.
TABLE OF CONTENTS
Description Page
Additions, Deletions or Substitutions of Investments................. 2
The Contract......................................................... 3
Performance Information.............................................. 4
Calculation of Accumulation Unit Values.............................. 9
Calculation of Variable Income Payments.............................. 10
General Matters...................................................... 11
Federal Tax Matters.................................................. 12
Qualified Plans...................................................... 13
Experts.............................................................. 15
Combined Statutory Basis Financial Statements........................ F-1
ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS
- -------------------------------------------------------------------------------
We may add, delete, or substitute the Fund shares held by any Variable
Sub-Account to the extent the law permits. We may substitute shares of any Fund
with those of another Fund of the same or different mutual fund if the shares of
the Fund are no longer available for investment, or if we believe investment in
any Fund would become inappropriate in view of the purposes of the Variable
Account.
We will not substitute shares attributable to a Contract Owner's interest in a
Variable Sub-Account until we have notified the Contract Owner of the change,
and until the Securities and Exchange Commission has approved the change, to the
extent such notification and approval are required by law. Nothing contained in
this Statement of Additional Information shall prevent the Variable Account from
purchasing other securities for other series or classes of contracts, or from
effecting a conversion between series or classes of contracts on the basis of
requests made by Contract Owners.
We also may establish additional Variable Sub-Accounts or series of Variable
Sub-Accounts. Each additional Variable Sub-Account would purchase shares in a
new Fund of the same or different mutual fund. We may establish new Variable
Sub-Accounts when we believe marketing needs or investment conditions warrant.
We determine the basis on which we will offer any new Variable Sub-Accounts in
conjunction with the Contract to existing Contract Owners. We may eliminate one
or more Variable Sub-Accounts if, in our sole discretion, marketing, tax or
investment conditions so warrant.
We may, by appropriate endorsement, change the Contract as we believe necessary
or appropriate to reflect any substitution or change in the Funds. If we believe
the best interests of persons having voting rights under the Contracts would be
served, we may operate the Variable Account as a management company under the
Investment Company Act of 1940 or we may withdraw its registration under such
Act if such registration is no longer required.
THE CONTRACT
- -------------------------------------------------------------------------------
The Contract is primarily designed to aid individuals in long-term financial
planning. You can use it for retirement planning regardless of whether the
retirement plan qualifies for special federal income tax treatment.
PURCHASE OF CONTRACTS
We offer the Contracts to the public through banks as well as brokers licensed
under the federal securities laws and state insurance laws. The principal
underwriter for the Variable Account, Allstate Life Financial Services, Inc.
("ALFS"), distributes the Contracts. ALFS is an affiliate of Allstate. The
offering of the Contracts is continuous. We do not anticipate discontinuing the
offering of the Contracts, but we reserve the right to do so at any time.
TAX-FREE EXCHANGES (1035 EXCHANGES, ROLLOVERS AND TRANSFERS)
We accept purchase payments that are the proceeds of a Contract in a transaction
qualifying for a tax-free exchange under Section 1035 of the Internal Revenue
Code ("Code"). Except as required by federal law in calculating the basis of the
Contract, we do not differentiate between Section 1035 purchase payments and
non-Section 1035 purchase payments.
We also accept "rollovers" and transfers from Contracts qualifying as
tax-sheltered annuities ("TSAs"), individual retirement annuities or accounts
("IRAs"), or any other Qualified Contract that is eligible to "rollover" into an
IRA. We differentiate among non-Qualified Contracts, TSAs, IRAs and other
Qualified Contracts to the extent necessary to comply with federal tax laws. For
example, we restrict the assignment, transfer, or pledge of TSAs and IRAs so the
Contracts will continue to qualify for special tax treatment. A Contract Owner
contemplating any such exchange, rollover or transfer of a Contract should
contact a competent tax adviser with respect to the potential effects of such a
transaction.
PERFORMANCE INFORMATION
- -------------------------------------------------------------------------------
From time to time we may advertise the "standardized," "non-standardized," and
"adjusted historical" total returns of the Variable Sub-Accounts, as described
below. Please remember that past performance is not an estimate or guarantee of
future performance and does not necessarily represent the actual experience of
amounts invested by a particular Contract Owner.
STANDARDIZED TOTAL RETURNS
A Variable Sub-Account's standardized total return represents the average annual
total return of that Sub-Account over a particular period. We compute
standardized total return by finding the annual percentage rate that, when
compounded annually, will accumulate a hypothetical $1,000 purchase payment to
the redeemable value at the end of the one, five or ten year period, or for a
period from the date of commencement of the Variable Sub-Account's operations,
if shorter than any of the foregoing. We use the following formula prescribed by
the SEC for computing standardized total return:
1000(1 + T)n = ERV
where:
T = average annual total return
ERV = ending redeemable value of a hypothetical $1,000 payment made at the
beginning of 1, 5, or 10 year periods or shorter period
n = number of years in the period
1000 = hypothetical $1,000 investment
When factoring in the withdrawal charge assessed upon redemption, we exclude the
Free Withdrawal Amount, which is the amount you can withdraw from the Contract
without paying a withdrawal charge. We also use the withdrawal charge that would
apply upon redemption at the end of each period. Thus, for example, when
factoring in the withdrawal charge for a one year standardized total return
calculation, we would use the withdrawal charge that applies to a withdrawal of
a purchase payment made one year prior.
When factoring in the contract maintenance charge, we pro rate the charge by
dividing (i) the total amount of contract maintenance charges we collected
during the year by (ii) the total average net assets of all the Variable
Sub-Accounts. We then multiply the resulting percentage by the ending Contract
Value of a hypothetical $1,000 payment.
No standardized total returns are available for the Variable Sub-Accounts, which
commenced operations as of the date of this Statement of Additional Information.
NON-STANDARDIZED TOTAL RETURNS
From time to time, we also may quote average annual total returns that do not
reflect the withdrawal charge. We calculate these "non-standardized total
returns" in exactly the same way as the standardized total returns described
above, except that we replace the ending redeemable value of the hypothetical
account for the period with an ending redeemable value for the period that does
not take into account any charges on amounts surrendered.
In addition, we may advertise the total return over different periods of time by
means of aggregate, average, year-by-year or other types of total return
figures. Such calculations would not reflect deductions for withdrawal charges
which may be imposed on the Contracts which, if reflected, would reduce the
performance quoted. The formula for computing such total return quotations
involves a per unit change calculation. This calculation is based on the
Accumulation Unit Value at the end of the defined period divided by the
Accumulation Unit Value at the beginning of such period, minus 1. The periods
included in such advertisements are "year-to-date" (prior calendar year end to
the day of the advertisement); "year to most recent quarter" (prior calendar
year end to the end of the most recent quarter); "the prior calendar year"; "
'n' most recent Calendar Years"; and "Inception (commencement of the
Sub-account's operation) to date" (day of the advertisement).
No non-standardized total returns are shown for the Variable Sub-Accounts, which
commenced operations on the date of this Statement of Additional Information.
ADJUSTED HISTORICAL TOTAL RETURNS
We may advertise the total return for periods prior to the date that the
Variable Sub-Accounts commenced operations. We will calculate such "adjusted
historical total returns" using the performance of the underlying Funds and
adjusting such performance to reflect the current level of charges that apply to
the Variable Sub-Accounts under the Contract.
The adjusted historical total returns for the Variable Sub-Accounts for the
periods ended December 31, 1998 are set out below. No adjusted historical total
returns are shown for the Putnam VT Small Cap Value Fund, which commenced
operations on April 30, 1998.
(Without the Enhanced Beneficiary Protection Option
or a Retirement Income Guarantee Rider)
Ten Years or Since
Variable Sub-Account One Year Five Years Inception of Fund*
Putnam Asia Pacific Growth -12.73 N/A - 5.55
Putnam Diversified Income - 8.84 3.63 3.79
The George Putnam Fund N/A N/A - 4.74
Putnam Global Asset Allocation 6.04 11.87 11.05
Putnam Global Growth 22.01 12.82 11.07
Putnam Growth and Income 7.84 17.13 14.42
Putnam Health Sciences N/A N/A 3.69
Putnam High Yield -13.10 5.37 8.33
Putnam Income 0.83 5.05 7.64
Putnam International Growth 10.98 N/A 13.13
Putnam International Growth and Income 3.80 N/A 11.05
Putnam International New Opportunities 7.96 N/A 2.94
Putnam Investors N/A N/A 14.55
Putnam Money Market - 2.21 2.99 3.82
Putnam New Opportunities 16.66 N/A 21.09
Putnam New Value - 1.24 N/A 7.46
Putnam OTC & Emerging Growth N/A N/A - 8.87
Putnam Research N/A N/A 60.43
Putnam Utilities Growth and Income 7.41 13.61 12.99
Putnam Vista 11.99 N/A 17.23
Putnam Voyager 16.62 18.37 18.24
- -------------------
* Each of the above Funds (Class IB) corresponding to the Variable Sub-Accounts
commenced operations on April 30, 1998, except for the Putnam VT Diversified
Income, Growth and Income, and International Growth Funds, which commenced
operations on April 6, 1998, and the Putnam VT Research Fund, which commenced
operations September 30, 1998. For periods prior to the inception dates of the
Funds (Class IB), the performance shown is based on the historical performance
of the Funds (Class IA), adjusted to reflect the current expenses of the Funds
(Class IB). The inception dates for the Funds (Class IA) are as follows:
Global Asset Allocation, Growth and Income, High Yield, Money Market, U.S.
Government and High Quality Bond, Voyager commenced operations on February 1,
1988; Global Growth commenced operations on May 1, 1990; Utilities Growth and
Income commenced operations on May 1, 1992; Diversified Income commenced
operations on September 15, 1993; New Opportunities commenced operations on May
2, 1994; Asia Pacific Growth commenced operations on May 1, 1995; International
Growth, International Growth and Income, International New Opportunities, New
Value and Vista commenced operations on January 2, 1997; The George Putnam Fund
of Boston, Health Sciences, Investors and OTC & Emerging Growth commenced
operations on April 30, 1998.
(With the Enhanced Beneficiary Protection Option)*
Ten Years or Since
Variable Sub-Account One Year Five Years Inception of Fund**
Putnam Asia Pacific Growth -12.87 N/A - 5.70
Putnam Diversified Income - 8.99 3.47 3.63
The George Putnam Fund N/A N/A - 4.89
Putnam Global Asset Allocation 5.87 11.70 10.88
Putnam Global Growth 21.82 12.64 10.90
Putnam Growth and Income 7.66 16.95 14.25
Putnam Health Sciences N/A N/A 3.52
Putnam High Yield -13.24 5.20 8.17
Putnam Income 0.67 4.89 7.48
Putnam International Growth 12.80 N/A 12.95
Putnam International Growth and Income 3.63 N/A 10.88
Putnam International New Opportunities 7.79 N/A 2.77
Putnam Investors N/A N/A 14.37
Putnam Money Market - 2.37 2.83 3.66
Putnam New Opportunities 16.66 N/A 21.08
Putnam New Value - 1.40 N/A 7.29
Putnam OTC & Emerging Growth N/A N/A - 9.02
Putnam Research N/A N/A 60.17
Putnam Utilities Growth and Income 7.24 13.44 12.82
Putnam Vista 11.81 N/A 17.05
Putnam Voyager 16.44 18.19 18.06
- -------------------
*Performance figures have been adjusted to reflect the current charge
for the Enhanced Beneficiary Protection Option as if that feature had been
available throughout the periods shown.
** The inception dates for the Funds appear in the first footnote to
the preceding table. For periods prior to the inception dates of the Funds
(Class IB), the performance shown is based on the historical performance of the
Funds (Class IA), adjusted to reflect the current expenses of the Funds (Class
IB). The inception dates for the Funds (Class IA) are shown on the first note to
the preceding table.
(With Retirement Income Guarantee Rider 1)*
Ten Years or Since
Variable Sub-Account One Year Five Years Inception of Fund**
Putnam Asia Pacific Growth -12.78 N/A - 5.61
Putnam Diversified Income - 8.89 3.58 3.74
The George Putnam Fund N/A N/A - 4.81
Putnam Global Asset Allocation 5.99 11.82 11.02
Putnam Global Growth 21.96 12.77 11.03
Putnam Growth and Income 7.79 17.09 14.39
Putnam Health Sciences N/A N/A 3.61
Putnam High Yield -13.15 5.32 8.30
Putnam Income 0.78 5.01 7.60
Putnam International Growth 10.93 N/A 13.08
Putnam International Growth and Income 3.75 N/A 11.01
Putnam International New Opportunities 7.91 N/A 2.88
Putnam Investors N/A N/A 14.48
Putnam Money Market - 2.26 2.94 3.77
Putnam New Opportunities 16.61 N/A 21.05
Putnam New Value - 1.29 N/A 7.41
Putnam OTC & Emerging Growth N/A N/A - 8.94
Putnam Research N/A N/A 60.15
Putnam Utilities Growth and Income 7.36 13.57 12.95
Putnam Vista 11.94 N/A 17.18
Putnam Voyager 16.57 18.33 18.22
- -------------------
*Performance figures have been adjusted to reflect the current charge
for Retirement Income Guarantee Rider 1 as if that feature had been available
throughout the periods shown. For purposes of computing the Rider fee, we
assumed that there were no additional purchase payments or withdrawals, and that
the Contract Issue Date coincided with the inception date of the Fund (Class
IA).
** The inception dates for the Funds appear in the first footnote to
the preceding table. For periods prior to the inception dates of the Funds
(Class IB), the performance shown is based on the historical performance of the
Funds (Class IA), adjusted to reflect the current expenses of the Funds (Class
IB). The inception dates for the Funds (Class IA) are shown on the first note to
the first table above.
(With Retirement Income Guarantee Rider 2)*
Ten Years or Since
Variable Sub-Account One Year Five Years Inception of Fund**
Putnam Asia Pacific Growth -13.05 N/A - 5.95
Putnam Diversified Income - 9.16 3.30 3.40
The George Putnam Fund N/A N/A - 5.20
Putnam Global Asset Allocation 5.72 11.56 10.77
Putnam Global Growth 21.70 12.50 10.75
Putnam Growth and Income 7.52 16.85 14.17
Putnam Health Sciences N/A N/A 3.21
Putnam High Yield -13.41 5.05 8.04
Putnam Income 0.51 4.72 7.35
Putnam International Growth 10.06 N/A 12.82
Putnam International Growth and Income 3.48 N/A 10.74
Putnam International New Opportunities 7.64 N/A 2.58
Putnam Investors N/A N/A 14.06
Putnam Money Market - 2.53 2.65 3.47
Putnam New Opportunities 16.34 N/A 20.82
Putnam New Value - 1.55 N/A 7.15
Putnam OTC & Emerging Growth N/A N/A - 9.33
Putnam Research N/A N/A 58.66
Putnam Utilities Growth and Income 7.09 12.68 12.68
Putnam Vista 11.68 16.93 16.93
Putnam Voyager 16.31 18.03 18.03
- -------------------
*Performance figures have been adjusted to reflect the current charge
for Retirement Income Guarantee Rider 2 as if that feature had been available
throughout the periods shown. For purposes of computing the Rider fee, we
assumed that Income Base B applied, that there were no additional purchase
payments or withdrawals, and that the Contract Issue Date coincided with the
inception date of the Fund (Class IA).
** The inception dates for the Funds appear in the first footnote to
the preceding table. For periods prior to the inception dates of the Funds
(Class IB), the performance shown is based on the historical performance of the
Funds (Class IA), adjusted to reflect the current expenses of the Funds (Class
IB). The inception dates for the Funds (Class IA) are shown on the first note to
the first table above.
Calculation of Accumulation Unit Values
- -------------------------------------------------------------------------------
The value of Accumulation Units will change each Valuation Period according to
the investment performance of the Fund shares purchased by each Variable
Sub-Account and the deduction of certain expenses and charges. A "Valuation
Period" is the period from the end of one Valuation Date and continues to the
end of the next Valuation Date. A Valuation Date ends at the close of regular
trading on the New York Stock Exchange (currently 3:00 p.m.
Central Time).
The Accumulation Unit Value of a Variable Sub-Account for any Valuation Period
equals the Accumulation Unit Value as of the immediately preceding Valuation
Period, multiplied by the Net Investment Factor (described below) for that
Sub-Account for the current Valuation Period.
NET INVESTMENT FACTOR
The Net Investment Factor for a Valuation Period is a number representing the
change, since the last Valuation Period, in the value of Variable Sub-Account
assets per Accumulation Unit due to investment income, realized or unrealized
capital gain or loss, deductions for taxes, if any, and deductions for the
mortality and expense risk charge and administrative expense charge. We
determine the Net Investment Factor for each Variable Sub-Account for any
Valuation Period by dividing (A) by (B) and subtracting (C) from the result,
where:
(A) is the sum of:
(1) the net asset value per share of the Fund underlying the
Variable Sub-Account determined at the end of the current
Valuation Period; plus,
(2) the per share amount of any dividend or capital gain
distributions made by the Fund underlying the Variable
Sub-Account during the current Valuation Period;
(B) is the net asset value per share of the Fund underlying the Variable
Sub-Account determined as of the end of the immediately preceding
Valuation Period; and
(C) is the mortality and expense risk charge corresponding to the portion
of the current calendar year that is in the current Valuation Period.
CALCULATION OF VARIABLE INCOME PAYMENTS
- -------------------------------------------------------------------------------
We calculate the amount of the first variable income payment under an Income
Plan by applying the Contract Value allocated to each Variable Sub-Account less
any applicable premium tax charge deducted at the time, to the income payment
tables in the Contract. We divide the amount of the first variable annuity
income payment by the Variable Sub-Account's then current Annuity Unit value to
determine the number of annuity units ("Annuity Units") upon which later income
payments will be based. To determine income payments after the first, we simply
multiply the number of Annuity Units determined in this manner for each Variable
Sub-Account by the then current Annuity Unit value ("Annuity Unit Value") for
that Variable Sub-Account.
CALCULATION OF ANNUITY UNIT VALUES
Annuity Units in each Variable Sub-Account are valued separately and Annuity
Unit Values will depend upon the investment experience of the particular Fund in
which the Variable Sub-Account invests. We calculate the Annuity Unit Value for
each Variable Sub-Account at the end of any Valuation Period by:
o multiplying the Annuity Unit Value at the end of the immediately preceding
Valuation Period by the Variable Sub-Account's Net Investment Factor
(described in the preceding section) for the Period; and then
o dividing the product by the sum of 1.0 plus the assumed investment rate for
the Valuation Period.
The assumed investment rate adjusts for the interest rate assumed in the
income payment tables used to determine the dollar amount of the first variable
income payment, and is at an effective annual rate which is disclosed in the
Contract.
We determine the amount of the first variable income payment paid under an
Income Plan using the income payment tables set out in the Contracts. The
Contracts include tables that differentiate on the basis of sex, except in
states that require the use of unisex tables.
GENERAL MATTERS
- ------------------------------------------------------------------------------
INCONTESTABILITY
We will not contest the Contract after we issue it.
SETTLEMENTS
The Contract must be returned to us prior to any settlement. We must receive due
proof of the Contract Owner(s) death (or Annuitant's death if there is a
non-natural Contract Owner) before we will settle a death claim.
SAFEKEEPING OF THE VARIABLE ACCOUNT'S ASSETS
We hold title to the assets of the Variable Account. We keep the assets
physically segregated and separate and apart from our general corporate assets.
We maintain records of all purchases and redemptions of the Fund shares held by
each of the Variable Sub-Accounts.
The Funds do not issue stock certificates. Therefore, we hold the Variable
Account's assets in open account in lieu of stock certificates. See the Funds'
prospectuses for a more complete description of the custodian of the Funds.
PREMIUM TAXES
Applicable premium tax rates depend on the Contract Owner's state of residency
and the insurance laws and our status in those states where premium taxes are
incurred. Premium tax rates may be changed by legislation, administrative
interpretations, or judicial acts.
TAX RESERVES
We do not establish capital gains tax reserves for any Variable Sub-Account nor
do we deduct charges for tax reserves because we believe that capital gains
attributable to the Variable Account will not be taxable. However, we reserve
the right to deduct charges to establish tax reserves for potential taxes on
realized or unrealized capital gains.
FEDERAL TAX MATTERS
- -------------------------------------------------------------------------------
THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. WE MAKE
NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR TRANSACTION
INVOLVING A CONTRACT.
Federal, state, local and other tax consequences of ownership or receipt of
distributions under an annuity contract depend on the individual circumstances
of each person. If you are concerned about any tax consequences with regard to
your individual circumstances, you should consult a competent tax adviser.
TAXATION OF ALLSTATE LIFE INSURANCE COMPANY
Allstate is taxed as a life insurance company under Part I of Subchapter L of
the Internal Revenue Code. Since the Variable Account is not an entity separate
from Allstate, and its operations form a part of Allstate, it will not be taxed
separately as a "Regulated Investment Company" under Subchapter M of the Code.
Investment income and realized capital gains of the Variable Account are
automatically applied to increase reserves under the Contract. Under existing
federal income tax law, Allstate believes that the Variable Account investment
income and capital gains will not be taxed to the extent that such income and
gains are applied to increase the reserves under the Contract. Accordingly,
Allstate does not anticipate that it will incur any federal income tax liability
attributable to the Variable Account, and therefore Allstate does not intend to
make provisions for any such taxes. If Allstate is taxed on investment income or
capital gains of the Variable Account, then Allstate may impose a charge against
the Variable Account in order to make provision for such taxes.
EXCEPTIONS TO THE NON-NATURAL OWNER RULE
There are several exceptions to the general rule that annuity contracts held by
a non-natural owner are not treated as annuity contracts for federal income tax
purposes. Contracts will generally be treated as held by a natural person if the
nominal owner is a trust or other entity which holds the Contract as agent for a
natural person. However, this special exception will not apply in the case of an
employer who is the nominal owner of an annuity contract under a non-qualified
deferred compensation arrangement for its employees. Other exceptions to the
non-natural owner rule are: (1) Contracts acquired by an estate of a decedent by
reason of the death of the decedent; (2) certain Qualified Contracts; (3)
Contracts purchased by employers upon the termination of certain qualified
plans; (4) certain Contracts used in connection with structured settlement
agreements, and (5) Contracts purchased with a single premium when the annuity
starting date is no later than a year from purchase of the annuity and
substantially equal periodic payments are made, not less frequently than
annually, during the annuity period.
IRS REQUIRED DISTRIBUTION AT DEATH RULES
In order to be considered an annuity contract for federal income tax purposes,
the Contract must provide: (1) if any Contract Owner dies on or after the Payout
Start Date but before the entire interest in the Contract has been distributed,
the remaining portion of such interest must be distributed at least as rapidly
as under the method of distribution being used as of the date of the Owner's
death; (2) if any Contract Owner dies prior to the Payout Start Date, the entire
interest in the Contract will be distributed within 5 years after the date of
the Owner's death. These requirements are satisfied if any portion of the
Contract Owner's interest that is payable to (or for the benefit of) a
designated Beneficiary is distributed over the life of such Beneficiary (or over
a period not extending beyond the life expectancy of the Beneficiary) and the
distributions begin within 1 year of the Owner's death. If the Contract Owner's
designated Beneficiary is the surviving spouse of the Owner, the Contract may be
continued with the surviving spouse as the new Contract Owner. If the Contract
Owner is a non-natural person, then the Annuitant will be treated as the
Contract Owner for purposes of applying the distribution at death rules. In
addition, a change in the Annuitant on a Contract owned by a non-natural person
will be treated as the death of the Contract Owner.
QUALIFIED PLANS
- -------------------------------------------------------------------------------
The Contract may be used with several types of qualified plans. The tax rules
applicable to participants in such qualified plans vary according to the type of
plan and the terms and conditions of the plan itself. Adverse tax consequences
may result from excess contributions, premature distributions, distributions
that do not conform to specified commencement and minimum distribution rules,
excess distributions and in other circumstances. Contract Owners and
participants under the plan and Annuitants and Beneficiaries under the Contract
may be subject to the terms and conditions of the plan regardless of the terms
of the Contract.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to an
individual retirement program known as an Individual Retirement Annuity (IRA).
Individual Retirement Annuities are subject to limitations on the amount that
can be contributed and on the time when distributions may commence. Certain
distributions from other types of qualified plans may be "rolled over" on a
tax-deferred basis into an Individual Retirement Annuity. An IRA generally may
not provide life insurance, but it may provide a death benefit that equals the
greater of the premiums paid and the Contract's Cash Value. The Contract
provides a death benefit that in certain circumstances may exceed the greater of
the payments and the Contract Value. It is possible that the death benefit could
be viewed as violating the prohibition on investment in life insurance contracts
with the result that the Contract would not be viewed as satisfying the
requirements of an IRA.
ROTH INDIVIDUAL RETIREMENT ANNUITIES
Section 408A of the Code permits eligible individuals to make nondeductible
contributions to an individual retirement program known as a Roth Individual
Retirement Annuity. Roth Individual Retirement Annuities are subject to
limitations on the amount that can be contributed and on the time when
distributions may commence. "Qualified distributions" from Roth Individual
Retirement Annuities are not includible in gross income. "Qualified
distributions" are any distributions made more than five taxable years after the
taxable year of the first contribution to the Roth Individual Retirement
Annuity, and which are made on or after the date the individual attains age 59
1/2, made to a beneficiary after the owner's death, attributable to the owner
being disabled or for a first time home purchase (first time home purchases are
subject to a lifetime limit of $10,000). "Nonqualified distributions" are
treated as made from contributions first and are includible in gross income to
the extent such distributions exceed the contributions made to the Roth
Individual Retirement Annuity. The taxable portion of a "nonqualified
distribution" may be subject to the 10% penalty tax on premature distributions.
Subject to certain limitations, a traditional Individual Retirement Account or
Annuity may be converted or "rolled over" to a Roth Individual Retirement
Annuity. The taxable portion of a conversion or rollover distribution is
includible in gross income, but is exempted from the 10% penalty tax on
premature distributions.
SIMPLIFIED EMPLOYEE PENSION PLANS
Section 408(k) of the Code allows employers to establish simplified employee
pension plans for their employees using the employees' individual retirement
annuities if certain criteria are met. Under these plans the employer may,
within specified limits, make deductible contributions on behalf of the
employees to their individual retirement annuities. Employers intending to use
the Contract in connection with such plans should seek competent advice.
SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES (SIMPLE PLANS)
Sections 408(p) and 401(k) of the Code allow employers with 100 or fewer
employees to establish SIMPLE retirement plans for their employees. SIMPLE plans
may be structured as a SIMPLE retirement account using an employee's IRA to hold
the assets or as a Section 401(k) qualified cash or deferred arrangement. In
general, a SIMPLE plan consists of a salary deferral program for eligible
employees and matching or nonelective contributions made by employers. Employers
intending to use the Contract in conjunction with SIMPLE plans should seek
competent tax and legal advice.
TAX SHELTERED ANNUITIES
Section 403(b) of the Code permits public school employees and employees of
certain types of tax-exempt organizations (specified in Section 501(c)(3) of the
Code) to have their employers purchase annuity contracts for them, and subject
to certain limitations, to exclude the purchase payments from the employees'
gross income. An annuity contract used for a Section 403(b) plan must provide
that distributions attributable to salary reduction contributions made after
12/31/88, and all earnings on salary reduction contributions, may be made only
on or after the date the employee attains age 59 1/2, separates from service,
dies, becomes disabled or on the account of hardship (earnings on salary
reduction contributions may not be distributed for hardship). These limitations
do not apply to withdrawals where Allstate is directed to transfer some or all
of the Contract Value to another 403(b) plan.
CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS
Sections 401(a) and 403(a) of the Code permit corporate employers to establish
various types of tax favored retirement plans for employees. The Self-Employed
Individuals Retirement Act of 1962, as amended, (commonly referred to as "H.R.
10" or "Keogh") permits self-employed individuals to establish tax favored
retirement plans for themselves and their employees. Such retirement plans may
permit the purchase of annuity contracts in order to provide benefits under the
plans.
STATE AND LOCAL GOVERNMENT AND TAX-EXEMPT ORGANIZATION
DEFERRED COMPENSATION PLANS
Section 457 of the Code permits employees of state and local governments and
tax-exempt organizations to defer a portion of their compensation without paying
current taxes. The employees must be participants in an eligible deferred
compensation plan. To the extent the Contracts are used in connection with an
eligible plan, employees are considered general creditors of the employer and
the employer as owner of the Contract has the sole right to the proceeds of the
Contract. Generally, under the non-natural owner rules, such Contracts are not
treated as annuity contracts for federal income tax purposes. Under these plans,
contributions made for the benefit of the employees will not be includible in
the employees' gross income until distributed from the plan. However, under a
Section 457 plan all the compensation deferred under the plan must remain solely
the property of the employer, subject only to the claims of the employer's
general creditors, until such time as made available to the employee or a
beneficiary.
EXPERTS
- ------------------------------------------------------------------------------
The combined statutory basis financial statements of Allstate appearing in this
Statement of Additional Information (which is incorporated by reference in the
prospectus of Allstate Life Insurance Company Separate Account A of Allstate
Life Insurance Company) have been audited by Deloitte & Touche, LLP, 180 N.
Stetson Avenue, Chicago, Illinois 60601-6710, independent auditors, as stated in
their report appearing herein and are included in reliance upon the report of
such firm given upon their authority as experts in accounting and auditing.
COMBINED STATUTORY BASIS FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
The combined statutory basis financial statements of Allstate and the
accompanying Report of Independent Auditors appear on the pages that follow. The
financial statements of Allstate included herein should be considered only as
bearing upon the ability of Allstate to meet its obligations under the
Contracts.
ALLSTATE LIFE INSURANCE COMPANY
-------------------------------
Combined Financial Statements (Statutory Basis)
for the Years Ended December 31, 1998 and
1997 and Independent Auditors' Report
F-1
INDEPENDENT AUDITORS' REPORT
TO THE BOARD OF DIRECTORS OF
ALLSTATE LIFE INSURANCE COMPANY:
We have audited the accompanying combined statutory basis statements of
financial position of Allstate Life Insurance Company (a wholly-owned subsidiary
of Allstate Insurance Company) and U.S. domiciled, life and accident and health
insurance subsidiaries (the "Company") as of December 31, 1998 and 1997, and the
related combined statutory basis statements of operations, capital and surplus,
and cash flows for the years then ended. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. 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. 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.
As described in Note 2 to the financial statements, the Company has prepared
these combined financial statements using accounting practices prescribed or
permitted by the insurance department of the applicable state of domicile, which
is a comprehensive basis of accounting other than generally accepted accounting
principles. The effects on the combined financial statements of the differences
between statutory basis of accounting and generally accepted accounting
principles, are material.
In our opinion, because of the effects of the differences between the two bases
of accounting referred to in the preceding paragraph, such combined financial
statements do not present fairly, in conformity with generally accepted
accounting principles, the financial position of Allstate Life Insurance Company
and U.S. domiciled, life and accident and health insurance subsidiaries as of
December 31, 1998 and 1997, and the results of their operations and their cash
flows for the years then ended.
In our opinion, the combined financial statements referred to above present
fairly, in all material respects, the financial position of Allstate Life
Insurance Company and, U.S. domiciled, life and accident and health insurance
subsidiaries as of December 31, 1998 and 1997, and the results of their
operations and their cash flows for the years then ended, on the basis of
accounting described in Note 2.
/s/ DELOITTE & TOUCHE LLP
Chicago, Illinois
April 2, 1999
F-2
ALLSTATE LIFE INSURANCE COMPANY
COMBINED STATEMENTS OF FINANCIAL POSITION
(Statutory Basis)
DECEMBER 31,
---------------------------
($ in thousands) 1998 1997
------------- -------------
ASSETS
Cash and invested assets
Bonds (fair value $25,480,639 and $24,315,518) $23,359,823 $22,487,471
Preferred stocks (alternative carrying value
$325,954 and $271,468) 294,478 231,794
Common stocks (cost $232,780 and $246,739) 428,034 443,135
Mortgage loans on real estate 3,316,586 2,987,144
Real estate 25,196 246,550
Policy loans 570,001 528,367
Cash 90,715 65,060
Short-term investments 420,013 102,178
Other invested assets 232,855 300,536
Allocation of assets from the Separate Accounts - 28,869
---------- -----------
Cash and invested assets 28,737,701 27,421,104
Investment income due and accrued 342,535 335,034
Life and accident and health insurance
premiums due and deferred 129,692 120,652
Other assets 69,655 98,527
Assets related to Separate Accounts 10,877,884 8,207,364
---------- -----------
Total assets $40,157,467 $36,182,681
=========== ===========
LIABILITIES
Policy benefit and other insurance reserves $26,073,039 $25,160,084
Interest maintenance reserve 116,821 79,702
Federal income taxes due or accrued 30,813 31,260
Payable to parent and affiliates 64,045 63,619
Other liabilities and accrued expenses 162,900 68,761
Asset valuation reserve 374,475 366,553
Allocation of assets to the Separate Accounts 32,164 -
Liabilities related to Separate Accounts 10,877,884 8,207,364
----------- ----------
Total liabilities 37,732,141 33,977,343
---------- ----------
CAPITAL AND SURPLUS
Preferred capital stock 174,999 162,279
Capital paid up (common stock, $214 and $200 par
value, in 1998 and 1997, respectively; 22,700 and
21,400 shares authorized, issued and outstanding
in 1998 and 1997, respectively) 4,858 4,280
Gross paid in and contributed capital 556,526 556,826
Unassigned surplus 1,668,943 1,481,953
----------- ---------
Total capital and surplus 2,425,326 2,205,338
----------- -----------
Total liabilities, capital and surplus $40,157,467 $36,182,681
=========== ===========
See notes to combined financial statements (statutory basis).
F-3
ALLSTATE LIFE INSURANCE COMPANY
COMBINED STATEMENTS OF OPERATIONS
(Statutory Basis)
YEAR ENDED DECEMBER 31,
------------------------
($ in thousands) 1998 1997
----------- -----------
REVENUES
Premiums and annuity considerations $ 6,016,947 $ 5,036,034
Net investment income, including amortization of the
interest maintenance reserve of $82,428 and $42,847 2,132,327 2,097,481
Income from fees associated with Separate Accounts 119,987 86,414
Operations from Separate Accounts -- (1,829)
Other income 156,397 108,267
----------- -----------
8,425,658 7,326,367
----------- -----------
POLICY BENEFITS AND EXPENSES
Provision for policy benefits 4,369,917 3,892,440
Commissions and general insurance expenses 993,773 886,677
Insurance taxes, licenses and fees 66,870 67,585
Net transfers to Separate Accounts 1,393,665 918,406
Maturities and other scheduled payments 1,258,517 1,099,014
----------- -----------
8,082,742 6,864,122
----------- -----------
Net gain from operations before dividends to policyholders,
federal income taxes and net realized capital gains 342,916 462,245
Dividends to policyholders 169 219
----------- -----------
Net gain from operations after dividends to policyholders and
before federal income taxes and net realized capital gains 342,747 462,026
Federal income taxes 105,789 160,091
----------- -----------
Net gain from operations after dividends to policyholders and
federal income taxes and before net realized capital gains 236,958 301,935
Net realized capital gains less federal income taxes and
amounts transferred to the interest maintenance reserve 148,863 68,498
----------- -----------
Net income $ 385,821 $ 370,433
=========== ===========
See notes to combined financial statements (statutory basis).
F-4
ALLSTATE LIFE INSURANCE COMPANY
COMBINED STATEMENTS OF CAPITAL AND SURPLUS
(Statutory Basis)
YEAR ENDED DECEMBER 31,
-------------------------
($ in thousands) 1998 1997
----------- -----------
CAPITAL AND SURPLUS, BEGINNING OF YEAR $ 2,205,338 $ 1,849,905
Net income 385,821 370,433
Change in net unrealized capital gains (32,471) 41,845
Change in non-admitted assets (12,170) (9,699)
Change in reserve on account of change in valuation basis (15,816) --
Change in asset valuation reserve (7,922) 90,693
Federal income tax prior-period adjustment -- (27,029)
Net deferrral (amortization) of gain on disposition of credit business (2,076) 9,219
Dividends to stockholders (108,376) (133,652)
Capital contributions 12,998 13,623
----------- -----------
CAPITAL AND SURPLUS, END OF YEAR $ 2,425,326 $ 2,205,338
=========== ===========
See notes to combined financial statements (statutory basis).
F-5
ALLSTATE LIFE INSURANCE COMPANY
COMBINED STATEMENTS OF CASH FLOWS
(Statutory Basis)
YEAR ENDED DECEMBER 31,
---------------------------
($ in thousands) 1998 1997
------------ ------------
CASH FROM OPERATIONS
Premiums and annuity considerations $ 4,654,152 $ 2,849,838
Annuity and other fund deposits 1,241,216 2,084,764
Investment income received 1,948,065 1,964,536
Other premiums, considerations and deposits 114,532 89,849
Income from fees associated with Separate Accounts 119,987 86,414
Allowances and reserve adjustments received
on reinsurance ceded 127,034 99,829
Other income received 14,458 5,388
Life and accident and health claims,
surrender benefits and other benefits paid (4,733,438) (4,171,885)
Commissions, other expenses and taxes paid
(excluding federal income taxes) (1,046,252) (941,673)
Net transfers to Separate Accounts (1,373,785) (1,025,577)
Dividends paid to policyholders (188) (212)
Federal income taxes paid (excluding tax on capital gains) (106,233) (118,743)
------------ ------------
Net cash from operations 959,548 922,528
------------ ------------
CASH FROM INVESTMENTS
Proceeds from investments sold, matured or repaid,
net of tax 10,452,592 9,518,100
Cost of long-term investments acquired (11,075,203) (10,453,422)
Net increase in policy loans (41,633) (38,041)
------------ ------------
Net cash from (used for) investments (664,244) (973,363)
------------ ------------
CASH FROM FINANCING AND MISCELLANEOUS SOURCES
Surplus paid in 12,720 13,343
Dividends to stockholders (108,098) (133,372)
Other 143,564 29,596
------------ ------------
Net cash from (used for) financing and
miscellaneous sources 48,186 (90,433)
------------ ------------
Net change in cash and short-term investments 343,490 (141,268)
Cash and short-term investments at beginning of year 167,238 308,506
------------ ------------
Cash and short-term investments at end of year $ 510,728 $ 167,238
============ ============
See notes to combined financial statements (statutory basis).
F-6
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory Basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
1. GENERAL
BASIS OF PRESENTATION
The accompanying combined statutory basis financial statements include
the accounts of Allstate Life Insurance Company ("ALIC") and its wholly
owned U.S. domiciled life, accident and health insurance subsidiaries,
Northbrook Life Insurance Company ("NLIC"), Lincoln Benefit Life Company
("LBL"), Surety Life Insurance Company ("SLIC"), Glenbrook Life and Annuity
Company ("GLAC"), and Allstate Life Insurance Company of New York ("ALNY")
(collectively the "Company"). ALIC is wholly owned by Allstate Insurance
Company ("AIC"), a wholly owned subsidiary of The Allstate Corporation (the
"Corporation"). To conform with the 1998 presentation, certain amounts in
the prior year's financial statements and notes have been reclassified.
NATURE OF OPERATIONS
The Company markets a broad line of life insurance, annuity and group
pension products countrywide. Life insurance includes traditional products
such as whole life and term life insurance, as well as universal life and
other interest-sensitive life products. Annuities include deferred
annuities, such as variable annuities and fixed rate single and flexible
premium annuities, and immediate annuities such as structured settlement
annuities. The Company's group pension products include guaranteed
investment contracts and retirement annuities. In 1998, annuity premiums
and deposits represented approximately 75% of the Company's total statutory
premiums and deposits.
The Company utilizes various modeling techniques in managing the
relationship between assets and liabilities. The fixed income securities
supporting the Company's obligations have been selected to meet, to the
extent possible, the anticipated cash flow requirements of the related
liabilities. The Company employs strategies to minimize its exposure to
interest rate risk and to maintain investments which are sufficiently
liquid to meet obligations to contractholders in various interest rate
scenarios.
The Company monitors economic and regulatory developments which have
the potential to impact its business. Such events would present an
increased level of competition for sales of the Company's life and annuity
products. Furthermore, the market for deferred annuities and
interest-sensitive life insurance is enhanced by the tax incentives
available under current law. Any legislative changes which lessen these
incentives are likely to negatively impact the demand for these products.
Although the Company currently benefits from agreements with financial
services entities which market and distribute its products, consolidation
within that industry and specifically, a change in control of those
entities with which the Company partners, could affect the Company's sales.
Additionally, traditional demutualizations of mutual insurance
companies and enacted and pending state legislation to permit mutual
insurance companies to convert to a hybrid structure known as a mutual
holding company could have a number of significant effects on the Company
by (1) increasing industry competition through consolidation caused by
mergers and acquisitions related to the new corporate form of business; and
(2) increasing competition in the capital markets.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
STATUTORY BASIS OF PRESENTATION
The combined financial statements were prepared in accordance with
accounting practices prescribed or permitted by the insurance department of
the applicable state of domicile. Prescribed statutory accounting practices
include a variety of publications of the National Association of Insurance
Commissioners ("NAIC"), as well as state laws, regulations and general
administrative rules. Permitted statutory accounting practices encompass
accounting practices not so prescribed. The Company has received permission
to include investment income, unrealized gains and losses and realized
gains and losses on hedging investments used to hedge the equity risk
embedded in equity indexed annuity products in investment income. This
permitted practice does not materially effect surplus or risk-based
capital.
F-7
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory Basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
The NAIC authorized a project to codify statutory accounting practices
among the various states. The NAIC has approved revised statutory
accounting principles as a result of the codification project. Dates for
adoption and implementation, however, will be determined on an individual
state basis. The requirements are not expected to have a material impact on
the statutory surplus of the Company.
Accounting practices and procedures of the NAIC as prescribed or
permitted by the insurance department of the applicable state of domicile
comprise a comprehensive basis of accounting other than generally accepted
accounting principles ("GAAP"). The more significant differences are as
follows:
a. Certain costs of acquiring new business, principally agents'
remuneration, certain underwriting costs and direct mail solicitation
costs, are expensed as incurred rather than deferred and amortized to
income as premiums are earned.
b. Statutory policy reserves are based on mortality and interest
assumptions prescribed or permitted by statutes, without consideration
of withdrawals. Statutory policy reserves generally differ from policy
reserves under GAAP, which are based on the Company's estimates of
mortality, interest and withdrawals. The effect, if any,on reserves
due to a change in reserve on account of change in valuation basis is
recorded directly to unassigned surplus rather than included in the
determination of net gain from operations.
c. The asset valuation reserve ("AVR") is determined by formula and is
based on the Company's holdings of mortgages, real estate, bonds,
stocks and other invested assets. This valuation reserve requires
appropriation of surplus to provide for possible losses on these
investments. Realized and unrealized capital gains and losses, other
than those resulting from interest rate changes, are added or charged
to the AVR. Changes in the AVR are recorded directly to unassigned
surplus. Under GAAP, provisions are recognized for declines in the
value of fixed income securities that are other than temporary and
impaired mortgage loans. Such writedowns are included in realized
capital gains and losses.
d. The interest maintenance reserve ("IMR") is used to defer realized
capital gains and losses, net of tax, on sales, calls and maturities
of bonds and certain other investments which result from interest rate
changes. These gains and losses are then amortized into investment
income over the expected remaining life of the investments sold. This
reserve is not provided under GAAP.
e. Bonds are generally stated at amortized cost rather than fair value.
f. Certain assets, principally prepaid commissions, computer software and
furniture and equipment, are designated as "non-admitted assets," and
are charged directly to unassigned surplus in the statutory financial
statements.
g. Taxes are provided for amounts currently due or recoverable. Deferred
income taxes resulting from temporary differences between the
statutory financial statement and tax bases of assets and liabilities
are not reflected in the statutory financial statements.
h. Premium receipts and benefits on universal life-type and investment
contracts are recorded as revenue and expense for statutory purposes.
Under GAAP, revenues on universal life-type contracts are comprised of
contract charges and fees which are recognized when assessed against
the policyholder account balance, and revenues on investment contracts
include contract charges and fees for contract administration and
surrenders. Additionally, premium receipts on universal life-type and
investment contracts are considered deposits and are recorded as
interest-bearing liabilities.
i. Certain postretirement benefits are accrued when employees are
eligible for such benefits rather than over the period employees
become eligible.
F-8
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory Basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
j. Pension cost is equal to the amount to be funded in accordance with
accepted actuarial cost methods rather than recognizing pension cost
over the period the participants render service to the Company and
recording a liability currently for all unfunded costs.
k. Reinsurance recoverables on unpaid losses are reported as a reduction
of policy benefit and other insurance reserves rather than reported as
an asset.
l. The assets and reserves relating to market value adjusted annuity
contracts are reflected as assets and liabilities related to Separate
Accounts and are carried at fair value. Premium receipts and benefits
on these contracts are recorded as revenue and expense and are
transferred to the Separate Accounts. Under GAAP, these assets are
reported as bonds and mortgage loans. Bonds designated as available
for sale are carried at fair value and mortgage loans are carried at
outstanding principal balance, net of unamortized premium or discount
and valuation allowances. Liabilities are reported as contractholder
funds. Revenues are comprised of contract charges and fees or contract
administration and surrenders.
INVESTMENTS
Investments are stated at values prescribed by the NAIC. Bonds,
including collateralized mortgage obligations and other structured
securities, are stated at amortized cost or, for lower credit ratings at
the lower of amortized cost or NAIC fair value. Preferred stocks are stated
at the lower of cost or fair value. Short-term investments are stated at
amortized cost, which approximates fair value.
Mortgage loans are carried at amortized cost. The maximum and minimum
lending rates were 8.1% and 6.3%,respectively, for loans made in 1998. The
maximum percentage of any one loan to the value of the security at the time
of the loan, exclusive of insured or guaranteed or purchase money mortgages
was 80.4% for loans made in 1998. Fire insurance is required on all
properties securing mortgage loans in an amount which is at least equal to
the lesser of either the insurable value of the improvements or the
outstanding principal balance of the loan. Such coverage either exceeds the
outstanding principal balance less the value of the land or provides
coverage equal to the replacement cost of the improvements.
Investments in real estate and properties acquired in satisfaction of
debt are stated at lower of depreciated cost or fair value.
Common stocks are carried at market value. Policy loans are carried at
the unpaid principal balances. Investment income consists primarily of
interest and dividends. Interest is recognized on an accrual basis and
dividends are recorded at the ex-dividend date. Interest income on
mortgage-backed and asset-backed securities is determined on the effective
yield method based on estimated principal repayments. Accrual of income is
suspended for bonds and mortgage loans that are in default or when the
receipt of interest payments is in doubt. Realized capital gains and losses
are determined on a specific identification basis.
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments include swaps, futures, forwards and
options, including caps and floors. When derivatives meet specific criteria
they may be designated as accounting hedges and accounted for on either a
fair value, deferral, or accrual basis, depending upon the nature of the
hedge strategy, the method used to account for the hedged items and the
derivative used. Derivatives that are not designated as accounting hedges
are accounted for on a fair value basis. If, subsequent to entering into a
hedge transaction, the derivative becomes ineffective (including if the
hedged item is sold or otherwise extinguished or the occurrence of a hedged
anticipatory transaction is no longer probable), the Company terminates the
derivative position. Gains and losses on these terminations are reported in
realized capital gains and losses in the period they occur. The Company may
also terminate derivatives as a result of other events or circumstances.
Gains and losses on these terminations are either deferred and amortized
over the remaining life of either the hedge or the hedged item, whichever
is shorter, or are reported in capital and surplus, consistent with the
accounting for the hedged item.
F-9
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory Basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
FAIR VALUE ACCOUNTING Under fair value accounting, realized and
unrealized gains and losses on derivatives are recognized in either
earnings, or capital and surplus when they occur.
The Company accounts for certain equity-indexed options as hedges on a
fair value basis when certain criteria are met. The derivative must reduce
the primary market risk exposure (e.g., interest rate risk or equity price
risk, foreign currency risk) of the hedged item in conjunction with the
specific hedge strategy; be designated as a hedge at the inception of the
transaction; and have a notional amount and term that does not exceed the
carrying value and expected maturity, respectively, of the hedged item. In
addition, options must have a reference index (e.g., S&P 500) that is the
same as, or highly correlated with, the reference index of the hedged item.
For certain equity-indexed options, changes in fair value are reported
net of tax in capital and surplus exclusive of interest accruals. Changes
in fair value of certain other equity-indexed options are reflected as an
adjustment of the hedged item. Premiums paid for equity-indexed options are
reported as equity securities and amortized to net investment income over
the lives of the agreements.
The Company also has certain derivatives for which hedge accounting is
not applied and therefore are accounted for on a fair value basis. These
derivatives primarily consist of equity indexed instruments and certain
interest rate futures. Gains and losses on these derivatives are recognized
in net investment income or realized capital gains and losses during the
period as incurred.
DEFERRAL ACCOUNTING Under deferral accounting, gains and losses on
derivatives are deferred on the statement of financial position and
recognized in earnings in conjunction with earnings on the hedged item. The
Company accounts for interest rate futures and certain foreign currency
forwards as hedges using deferral accounting for anticipatory investment
purchases and sales, when the criteria for futures and forwards are met.
For futures or forwards contracts, the derivative must reduce the primary
market risk exposure on an enterprise or transaction basis in conjunction
with the hedge strategy; be designated as a hedge at the inception of the
transaction; and be highly correlated with fair value of or interest income
or expense associated with the hedged item at inception and throughout the
hedge period. In addition, anticipated transactions must be probable of
occurrence and their significant terms and characteristics identified.
Changes in fair values of these derivatives are initially deferred as
other liabilities and accrued expenses. Once the anticipated transaction
occurs, the deferred gains or losses are considered part of the cost basis
of the asset and reported net of tax in capital and surplus or recognized
as a gain or loss from disposition of the asset, as appropriate. The
Company reports initial margin deposits on futures in short-term
investments. Fees and commissions paid on these derivatives are also
deferred as an adjustment to the carrying value of the hedged item.
ACCRUAL ACCOUNTING Under accrual accounting, interest income or
expense related to the derivative is accrued and recorded as an adjustment
to the interest income or expense on the hedged item. The Company accounts
for interest rate swaps, caps, floors, and certain foreign currency swaps
as hedges on an accrual basis when certain criteria are met (as discussed
above under fair value accounting for options).
Premiums paid for interest rate caps and floors are reported as other
investments and amortized to net investment income over the lives of the
agreements.
PREMIUM REVENUE
Premiums for traditional life, individual accident and health
insurance, fixed periodic premium annuities, and group life and accident
and health insurance are recognized as revenue when due. Premiums for all
single and flexible premium life and annuity products are recognized as
revenue when collected. F-10
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory Basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
SEPARATE ACCOUNTS
The Company issues flexible premium deferred variable annuities,
variable life policies and certain guaranteed investment contracts, and
market value adjusted annuities, the assets and liabilities of which are
legally segregated and reflected in the accompanying combined statements of
financial position as assets and liabilities of the Separate Accounts. The
assets of the Separate Accounts are carried at fair value. The assets and
liabilities related to Separate Accounts represent funds of GLAC, NLIC,
ALNY and LBL variable annuity and variable life contracts, the Allstate
Life Insurance Company Separate Account guaranteed indexed contracts
("SAGIC") and guaranteed indexed separate account ("GISA") and ALIC and
ALNY market value adjusted annuity contracts (collectively, the "Separate
Accounts").
Separate Account premium deposits, benefit expenses and contract
charges for investment management and policy administration are recorded by
the Company and reflected in the accompanying statements of operations.
Separate Accounts which contain the variable annuities, variable life and
SAGIC are unit investment trusts and are generally registered with the
Securities and Exchange Commission ("SEC"). Investment income and realized
and unrealized capital gains and losses of the variable annuity, variable
life and SAGIC, assets other than the portion related to the Company's
ownership in the Separate Accounts, accrue directly to the contractholders
and, therefore, are not included in the Company's combined statements of
operations.
The market value adjusted annuities are non-unitized investment
products, and are registered with the SEC. Investment income, including
realized and unrealized capital gains and losses related to the assets
which support the market value adjusted annuities, accrues to the Company.
Investment income, premium deposits and benefit expenses are recorded by
the Company and reflected in the accompanying combined statements of
operations in "Net transfers to Separate Accounts." Reserve liabilities for
such contracts are valued using a market interest rate.
The guaranteed indexed separate account contracts are non-unitized
investment products. Investment income, including realized and unrealized
capital gains and losses related to the assets which support the guaranteed
indexed Separate Account contracts accrues to the Company. Investment
income, premium deposits and benefit expenses are recorded by the Company
and reflected in the accompanying combined statements of operations in "Net
transfers to Separate Accounts". Reserve liabilities for such contracts are
valued using a market interest rate. ALIC guarantees the principal and a
rate of return based on an established index. ALIC maintains assets in the
Separate Account that are sufficient to fund the guaranteed benefits of the
contract.
RESERVES FOR POLICY BENEFITS
Policy benefit reserves for traditional and flexible premium insurance
are computed actuarially according to the Commissioners' Reserve Valuation
Method with interest and mortality applied in compliance with statutory
regulations. Benefit reserves for annuity products are calculated according
to the Commissioners' Annuity Reserve Valuation Method ("CARVM") with
appropriate statutory interest and mortality assumptions. Reserve interest
rates ranged from 2.0% to 7.25% for life products and from 2.5% to 11.25%
for annuity products.
Policy benefit reserves for group life and accident and health
insurance include claim reserves and unearned premiums. Claim reserves,
including incurred but not reported claims, represent management's estimate
of the ultimate liability associated with unpaid policy claims, based
primarily upon analysis of past experience.
OFF-BALANCE-SHEET FINANCIAL INSTRUMENTS
Commitments to invest, commitments to extend mortgage loans and
financial guarantees have only off-balance-sheet risk because their
contractual amounts are not recorded in the Company's combined statements
of financial position.
F-11
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory Basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
USE OF ESTIMATES
The preparation of financial statements in conformity with statutory
accounting principles requires management to make estimates and assumptions
that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
3. RELATED PARTY TRANSACTIONS
BUSINESS OPERATIONS
The Company utilizes services and business facilities owned, or leased
and operated by AIC in conducting its business activities. The Company
reimburses AIC for operating expenses incurred by AIC in providing these
services to the Company. The cost to the Company is determined by various
allocation methods and is primarily related to the level of the services
provided. Expenses allocated to the Company were $461,231 and $424,108 in
1998 and 1997, respectively.
STRUCTURED SETTLEMENT ANNUITIES
AIC, through an affiliate, purchased $63,842 and $51,557 of structured
settlement annuities from the Company in 1998 and 1997, respectively, at
prices determined based on prevailing interest rates at the time of
purchase. The provision for policy benefits was increased by approximately
94% of such premium received in each of these years. The affiliate, which
is not an insurance company, purchases surety bonds from AIC to guaranty
payment of future benefits. AIC received $469 and $396 in 1998 and 1997,
respectively.
REINSURANCE
Premiums earned include reinsurance assumed from AIC pertaining to
group credit disability business. The effect of these transactions on
premiums earned and net income is not material.
ALIC has reinsurance agreements with NLIC, LBL, SLIC, and GLAC. These
agreements stipulate that ALIC reinsures substantially all of the contract
liability of each subsidiary company, along with all contract related
premiums and expenses. ALIC also reinsures certain policies of ALNY for
amounts in excess of ALNY's retention. The reinsurance ceded contracts do
not discharge the subsidiary company as the primary insurer.
In 1997, ALIC and LBL amended their reinsurance treaty in order to
retrocede all credit life and credit health policies and certificates back
to LBL. Simultaneously, LBL and Protective Life Insurance Company
("Protective"), an unaffiliated insurer, entered into a 100% coinsurance
agreement to cede all of these policies and certificates to Protective.
ALIC paid LBL a $41.4 million reinsurance premium which LBL then paid to
Protective. LBL paid ALIC an $18.5 million commission allowance and
received an $18.5 million commission allowance from Protective. During
1997, ALIC recognized a pretax gain of $23.0 million on the transaction of
which $10.3 million, after tax, was credited directly to surplus. The
unamortized deferred gain after tax, at December 31, 1998 was $7.1 million.
LOAN AGREEMENT
ALIC, NLIC, and GLAC entered into an intercompany loan agreement with
the Corporation on February 1, 1996. As of December 31, 1998, no borrowings
were outstanding.
F-12
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory Basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
CAPITAL CONTRIBUTIONS AND DIVIDENDS
In 1998 and 1997, ALIC paid common stock dividends of $97,000 and
$131,237, respectively, to AIC. On December 31, 1998 and 1997, ALIC
authorized an additional 1,300 and 1,400 shares, respectively, and issued
these shares in an aggregate amount of $278 and $280, at December 31, 1998
and 1997, respectively, representing a stock dividend to AIC.
In 1998 and 1997, ALIC paid preferred stock Series A dividends of
$3,025 and $2,136, respectively, to The Northbrook Corporation, a wholly
owned subsidiary of AIC. ALIC issued 127,200 and 133,430 shares of Series A
redeemable preferred stock, net of redemptions, to The Northbrook
Corporation for which it received net proceeds of $12,720 and $13,343 in
1998 and 1997, respectively. As of December 31, 1998, ALIC has 579,990
shares of Series A preferred stock outstanding. Cash dividends are at a
rate reasonably equivalent to short-term interest rates as determined from
time to time (but not more frequently than quarterly) by the Board of
Directors by reference to a widely accepted floating index of short-term
rates. Par value is $100 per share. Liquidation value is $100 per share
plus accrued and unpaid dividends. The shares are redeemable at the option
of ALIC at any time five years after the issue date at a price of $100 plus
accrued and unpaid dividends.
In 1998 and 1997, ALIC paid preferred stock, Series B dividends of
$8,073 and $8,095, respectively, to AIC. Cash dividends on preferred stock
Series B shares are at a rate per annum equal to 6.9%, payable annually in
arrears on the last business day of each year to the shareholder of record
on the immediately preceding business day. Dividends shall accrue and be
cumulative from the date the last dividend was paid. The dividend payable
shall be computed on the basis of a 365 day year and the actual number of
days such share is outstanding, including the date of issue of the share
and the date of the dividend payment. Par value is $100 per share.
Liquidation value is $100 per share plus accrued and unpaid dividends. The
shares are redeemable at the option of the Company at any time five years
after the issue date at a price of $100 plus accrued and unpaid dividends.
On December 4, 1997, ALIC sold all of the outstanding capital stock of
Glenbrook Life Insurance Company ("GLIC") to Sears Roebuck and Co. ALIC
received proceeds of $10.4 million and recognized a $3.5 million gain on
the sale. Prior to the sale, GLIC declared an extraordinary dividend
payable to ALIC, of which $3.2 million was recognized as dividend income
and $4.8 million was recorded as a retirement of common stock.
Additionally, ALIC contributed capital of $1.5 million to GLIC prior to
sale.
4. STRATEGIC ALLIANCE
NLIC has a strategic alliance with Dean Witter Reynolds Inc. ("Dean
Witter"), a wholly owned subsidiary of Morgan Stanley Dean Witter, to
develop, market and distribute proprietary annuity and life insurance
products through Dean Witter account executives. Dean Witter provides a
portion of the funding for these products through loans to an affiliate of
the Company. Morgan Stanley Dean Witter's, wholly owned subsidiary, Dean
Witter Intercapital Inc., is the investment manager for the Dean Witter
Variable Investment Series, one of the funds in which the assets of the
NLIC Separate Accounts are invested. Morgan Stanley Dean Witter's wholly
owned subsidiary, Morgan Stanley Asset Management Inc., is the investment
manager of Morgan Stanley Universal Funds, Inc., one of the funds in which
the assets of the NLIC Separate Accounts are invested. Morgan Stanley Dean
Witter's wholly owned subsidiary, Van Kampen American Capital Asset
Management, Inc.is the investment manager of Van Kampen American Capital
Life Invesment Trust, one of the funds in which the assets of the NLIC
Separate Accounts are invested.
Under the terms of the strategic alliance, NLIC has agreed to use Dean
Witter as an exclusive distribution channel for its products. Although the
strategic alliance is cancelable by either party, termination of the
alliance would not impact existing policies and contracts.
F-13
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory Basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
5. INVESTMENTS
The statement value, which is principally amortized cost, gross
unrealized gains and losses, and fair value for bonds are as follows:
GROSS UNREALIZED
STATEMENT ---------------- FAIR
VALUE GAINS LOSSES VALUE
AT DECEMBER 31,1998 ----------- ----------- ----------- -----------
U.S. government and agencies $ 2,010,246 $ 751,820 $ (2,749) $ 2,759,317
Municipal 539,751 51,757 (367) 591,141
Foreign government 22,449 529 (4,195) 18,783
Corporate 13,373,900 1,150,468 (60,629) 14,463,739
Mortgage-backed securities 5,645,370 235,706 (27,320) 5,853,756
Asset-backed securities 1,768,107 28,825 (3,028) 1,793,904
----------- ----------- ----------- -----------
Total $23,359,823 $ 2,219,105 $ (98,288) $25,480,640
=========== =========== =========== ===========
GROSS UNREALIZED
STATEMENT ---------------- FAIR
VALUE GAINS LOSSES VALUE
AT DECEMBER 31,1997 ----------- ----------- ----------- -----------
-- -- -- --
U.S.government and agencies $ 1,904,149 $ 546,212 $ (1,242) $ 2,449,119
Municipal 674,585 38,060 (971) 711,674
Foreign government 3,079 230 -- 3,309
Corporate 12,555,812 1,010,472 (15,032) 13,551,252
Mortgage-backed securities 5,484,523 240,712 (19,529) 5,705,706
Asset-backed securities 1,865,323 29,853 (718) 1,894,458
----------- ----------- ----------- -----------
Total $22,487,471 $ 1,865,539 $ (37,492) $24,315,518
=========== =========== =========== ===========
SCHEDULED MATURITIES
The scheduled maturities for bonds are as follows at December 31, 1998:
STATEMENT FAIR
VALUE VALUE
----------- -----------
Due in one year or less $ 690,980 $ 697,654
Due after one year through five years 3,895,607 4,095,717
Due after five years through ten years 5,921,147 6,237,738
Due after ten years 5,880,516 7,228,618
----------- -----------
16,388,250 18,259,727
Mortgage-and asset-backed securities 6,971,573 7,220,913
----------- -----------
Total $23,359,823 $25,480,640
=========== ===========
Actual maturities may differ from those scheduled as a result of
prepayment by the issuers.
F-14
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory Basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
NET INVESTMENT INCOME
YEAR ENDED DECEMBER 31
1998 1997
----------- -----------
Bonds $ 1,767,954 $ 1,725,432
Preferred stock 20,451 11,715
Common stock 9,025 47,007
Mortgage loans 259,402 267,130
Real estate 41,072 58,584
Policy loans 37,783 35,606
Short-term 15,098 12,196
Other (26,109) (29,403)
----------- -----------
Investment income 2,124,676 2,128,267
Investment expense 74,777 73,631
----------- -----------
Net investment income $ 2,049,899 $ 2,054,636
=========== ===========
REALIZED CAPITAL GAINS
YEAR ENDED DECEMBER 31
1998 1997
----------- -----------
Realized capital gains $ 412,846 $ 209,090
Income tax expense (144,437) (75,188)
----------- -----------
268,409 133,902
Amount transferred to IMR (119,546) (65,404)
----------- -----------
$ 148,863 $ 68,498
=========== ===========
Proceeds from sales of bonds were $3,331,162 and $2,482,982 in 1998 and
1997, respectively. Gross gains of $64,521 and $32,518 and gross losses of
$28,436 and $28,754 were realized on sales of bonds during 1998 and 1997,
respectively.
INVESTMENT CONCENTRATION FOR MUNICIPAL BOND AND COMMERCIAL MORTGAGE
PORTFOLIOS AND OTHER INVESTMENT INFORMATION
The Company maintains a diversified portfolio of state and municipal bonds.
The largest concentrations in the portfolio are presented below. Except for the
following, holdings in no other state exceeded 5.0% of the portfolio at December
31, 1998 and 1997:
(% OF TOTAL STATE AND MUNICIPAL BONDS CARRYING VALUE)
1998 1997
---- ----
California 34.3% 34.5%
Illinois 13.5 11.1
Ohio 12.7 10.5
New York 10.9 10.6
Georgia 1.2 5.4
F-15
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory Basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
The Company's mortgage loans are collateralized by a variety of commercial
real estate property types located throughout the United States. Substantially
all of the commercial mortgage loans are non-recourse to the borrower. The
states with the largest portion of the commercial mortgage loan portfolio are
listed below. Except for the following, holdings in no other state exceed 5.0%
of the portfolio at December 31, 1998 and 1997:
(% OF COMMERCIAL MORTGAGES CARRYING VALUE)
1998 1997
---- ----
California 23.0% 23.5%
New York 9.5 9.9
Illinois 7.7 7.3
Florida 5.6 5.3
Connecticut 5.0 4.4
Texas 4.9 6.2
Pennsylvania 4.8 5.6
The types of properties collateralizing the commercial mortgage loans
at December 31, are as follows:
(% OF COMMERCIAL MORTGAGES CARRYING VALUE)
1998 1997
---- ----
Retail 30.8% 33.2%
Office buildings 28.1 24.4
Warehouse 16.4 18.8
Apartment complexes 16.8 16.9
Industrial 2.5 2.4
Other 5.4 4.3
----- -----
100.0% 100.0%
===== =====
The contractual maturities of the commercial mortgage loan portfolio as of
December 31, 1998, for loans that were not in foreclosure are as follows:
NUMBER OF LOANS STATEMENT VALUE PERCENT
--------------- --------------- -------
1999 35 $ 189,048 5.7%
2000 48 299,385 9.1
2001 56 259,333 7.9
2002 43 210,589 6.4
2003 50 265,197 8.1
Thereafter 371 2,067,595 62.8
--- ----------- -----
Total 603 $ 3,291,147 100.0%
=== =========== =====
In 1998, $308,652 of commercial mortgage loans were contractually due. Of
these, 55.7% were paid as due, 32.7% were refinanced at prevailing market terms,
3.0% were foreclosed or are in the process of foreclosure, and 8.6% were in the
process of refinancing or restructuring discussions.
At December 31, 1998 statement value of investments, excluding common
stock, that were non-income producing during 1998, was $100.
At December 31, 1998, bonds with a statement value of $62,469 were on
deposit with regulatory authorities as required by law.
F-16
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory Basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
6. FINANCIAL INSTRUMENTS
In the normal course of business, the Company invests in various financial
assets, incurs various financial liabilities and enters into agreements
involving derivative financial instruments and other off-balance-sheet financial
instruments. The fair value estimates of financial instruments presented below
are not necessarily indicative of the amounts the Company might pay or receive
in actual market transactions. Potential taxes and other transaction costs have
not been considered in estimating fair value. The disclosures that follow do not
reflect the fair value of the Company as a whole since a number of the Company's
significant assets (including reinsurance recoverables) and liabilities
(including policy benefit and other insurance reserves) are not considered
financial instruments and are not carried at fair value. Other assets and
liabilities considered financial instruments, including accrued investment
income, cash and claims payments outstanding are generally of a short-term
nature. It is assumed that their carrying value approximates fair value.
FINANCIAL ASSETS
The statement value and fair value of financial assets at December 31, are
as follows:
1998 1997
------------------------ ------------------------
STATEMENT FAIR STATEMENT FAIR
VALUE VALUE VALUE VALUE
----- ----- ----- -----
Bonds $23,359,823 $25,480,640 $22,487,471 $24,315,518
Preferred stocks 294,478 325,954 231,794 271,468
Common stocks 428,034 428,034 443,135 443,135
Mortgage loans on real estate 3,316,556 3,548,495 2,987,144 3,163,241
Short-term investments 420,013 420,013 102,178 102,178
Policy loans 570,001 570,001 528,367 528,367
Assets related to
Separate Accounts 10,877,884 10,877,884 8,207,364 8,207,364
Statement value and fair value include the effects of derivative financial
instruments where applicable.
Fair values for bonds are based upon the prices reported in the NAIC
Valuation of Securities Manual. External pricing sources are used for those
securities in which NAIC prices are unlisted. Non-quoted securities are valued
based on discounted cash flows using current interest rates for similar
securities. Common and preferred stocks are valued based principally on quoted
market prices. Non-combined subsidiaries are valued at book value. Mortgage
loans are valued based on discounted contractual cash flows. Discount rates are
selected using current rates at which similar loans would be made to borrowers
with similar characteristics, using similar properties as collateral. Loans that
exceed 100% loan-to-value are valued at the estimated fair value of the
underlying collateral. Short-term investments are highly liquid investments with
maturities of less than one year whose statement value approximates fair value.
The statement value of policy loans approximates its fair value. Assets
related to Separate Accounts are carried in the combined statements of financial
position at fair value based on quoted market prices.
F-17
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory Basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
FINANCIAL LIABILITIES
The statement value and fair value of financial liabilities at December
31, are as follows:
1998 1997
------------------------ ------------------------
STATEMENT FAIR STATEMENT FAIR
VALUE VALUE VALUE VALUE
----- ----- ----- -----
Reserves for investment contracts $15,622,197 $15,742,617 $15,431,332 $15,670,481
Liabilities related to
Separate Accounts 10,877,884 10,877,884 8,207,364 8,207,364
The fair value of benefit reserves for non-life contingent annuity products
("reserves for investment contracts") is based on the terms of the underlying
contracts. Reserves on investment contracts with no stated maturities (single
premium and flexible premium deferred annuities) are valued at the account
balance less surrender charges. The fair value of immediate annuities and
annuities without life contingencies with fixed terms is estimated using
discounted cash flow calculations based on interest rates currently offered for
contracts with similar terms and durations. Liabilities related to Separate
Accounts are carried at the fair value of the underlying assets.
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments include swaps, futures, forwards and
options, including caps and floors. The Company primarily uses derivative
financial instruments to reduce its exposure to market risk (principally
interest rate, equity price and foreign currency risk), in conjunction with
asset/liability management. The Company does not hold or issue these instruments
for trading purposes.
The following table summarizes the contract or notional amount, credit
exposure, fair value and carrying value of the Company's derivative financial
instruments at December 31, as follows:
1998
---------------------------------------------------------------
CONTRACT/ STATEMENT
NOTIONAL CREDIT FAIR VALUE ASSETS/
AMOUNT EXPOSURE VALUE (LIABILITIES)
-------------- -------------- -------------- --------------
INTEREST RATE CONTRACTS
Interest rate swap agreements
Pay floating rate, receive fixed rate $ 413,443 $ 18,099 $ 27,471 $ --
Pay fixed rate, receive floating rate 960,069 -- (31,966) --
Pay floating rate, receive floating rate 72,700 -- (501) --
Financial futures and forward contracts 127,200 -- (108) 835
Euro Dollars Futures 100,000 2 2 --
Interest rate cap and floor agreements 3,044,000 2,757 2,757 4,858
-------------- -------------- -------------- --------------
Total interest rate contracts 4,717,412 20,858 (2,345) 5,693
-------------- -------------- -------------- --------------
EQUITY AND COMMODITY CONTRACTS
Commodity and total return swap agreements 97,772 264 264 --
Options, warrants and financial futures 625,299 206,628 206,628 160,762
-------------- -------------- -------------- --------------
Total equity and commodity contracts 723,071 206,892 206,892 160,762
-------------- -------------- -------------- --------------
FOREIGN CURRENCY CONTRACTS
Foreign currency swap agreements 78,716 -- (3,205) --
-------------- -------------- -------------- --------------
Total derivative financial instruments $ 5,519,199 $ 227,750 $ 201,342 $ 166,455
============== ============== ============== ==============
F-18
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
1997
--------------------------------------------------
Contract/ Statement
Notional Credit Fair Value Assets/
Amount Exposure Value (Liabilities)
---------- ---------- ---------- -------------
INTEREST RATE CONTRACTS
Interest rate swap agreements
Pay floating rate, receive fixed rate $ 430,528 $ 13,543 $ 20,303 $ -
Pay fixed rate, receive floating rate 496,241 - (14,127) -
Pay floating rate, receive floating rate 115,330 - (1,024) -
Financial futures and forward contracts 126,300 - (181) (814)
Interest rate cap and floor agreements 3,474,250 3,975 3,975 7,221
---------- ---------- ---------- ----------
Total interest rate contracts 4,642,649 17,518 8,946 6,407
---------- ---------- ---------- ----------
EQUITY AND COMMODITY CONTRACTS
Commodity and total return swap agreements 12,000 - (737) --
Options, warrants and financial futures 850,929 244,024 244,024 202,409
---------- ---------- ---------- ----------
Total equity and commodity contracts 862,929 244,024 243,287 202,409
---------- ---------- ---------- ----------
FOREIGN CURRENCY CONTRACTS
Foreign currency swap agreements 48,093 - (2,363) -
---------- ---------- ---------- ----------
Total derivative financial instruments $5,553,671 $ 261,542 $ 249,870 $ 208,816
========== ========== ========== ==========
The contract or notional amounts are used to calculate the exchange of
contractual payments under the agreements and are not representative of the
potential for gain or loss on these agreements.
Credit exposure represents the Company's potential loss if all of the
counterparties failed to perform under the contractual terms of the contracts
and all collateral, if any, became worthless. This exposure is measured by the
fair value of contracts with a positive fair value at the reporting date reduced
by the effect, if any, of master netting agreements.
The Company manages its exposure to credit risk by utilizing highly rated
counterparties, establishing risk control limits, executing legally enforceable
master netting agreements and obtaining collateral where appropriate. To date,
the Company has not incurred any losses on derivative financial instruments due
to counterparty nonperformance.
Fair value is the estimated amount that the Company would receive (pay) to
terminate or assign the contracts at the reporting date, thereby taking into
account the current unrealized gains or losses of open contracts. Dealer and
exchange quotes are utilized to value the Company's derivatives.
INTEREST RATE SWAP AGREEMENTS involve the exchange, at specified intervals,
of interest payments calculated by reference to an underlying notional amount.
The Company generally enters into swap agreements to change the interest rate
characteristics of existing assets to more closely match the interest rate
characteristics of the corresponding liabilities. The Company did not record any
material deferred gains or losses on swaps nor realize any material gains or
losses on swap terminations in 1998 or 1997. The Company paid a weighted average
floating interest rate of 5.6% and received a weighted average fixed interest
rate of 6.8% in 1998. The Company paid a weighted average fixed interest rate of
6.5% and received a weighted average floating interest rate of 6.0% in 1998.
F-19
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
FINANCIAL FUTURES AND FORWARD CONTRACTS are commitments to either purchase
or sell designated financial instruments at a future date for a specified price
or yield. They may be settled in cash or through delivery. As part of its
asset/liability management, the Company generally utilizes futures and forward
contracts to manage its market risk related to equity securities, and
anticipatory investment purchases and sales, as well as to reduce market risk
associated with certain annuity contracts. Futures and forwards used as hedges
of anticipatory transactions pertain to identified transactions which are
probable to occur and are generally completed within 90 days. Futures contracts
have limited off-balance-sheet credit risk as they are executed on organized
exchanges and require security deposits, as well as the daily cash settlement of
margins.
INTEREST RATE CAP AND FLOOR AGREEMENTS give the holder the right to receive
at a future date, the amount, if any, by which a specified market interest rate
exceeds the fixed cap rate or falls below the fixed floor rate, applied to a
notional amount. The Company purchases interest rate cap and floor agreements to
reduce its exposure to rising or falling interest rates relative to certain
existing assets and liabilities in conjunction with asset/liability management.
COMMODITY SWAP AGREEMENTS involve the exchange of floating-rate interest
payments for the total return on a commodity index. The Company enters into
commodity swap transactions to mitigate market risk on the fixed income and
equity securities portfolios.
EQUITY-INDEXED OPTION CONTRACTS provide returns based on a specified equity
index applied to the option's notional amount. The Company purchases and writes
equity-indexed options to achieve equity appreciation or to reduce the market
risk associated with certain annuity contracts. Where required, counterparties
post collateral to minimize credit risk.
EQUITY-INDEXED FINANCIAL FUTURES provide returns based on a specific equity
index applied to the futures' contract amount. The Company utilizes
equity-indexed futures to reduce the market risk associated with certain annuity
contracts.
DEBT WARRANTS provide the right to purchase a specified new issue of debt
at a predetermined price. The Company purchases debt warrants to protect against
long-term call risk.
FOREIGN CURRENCY CONTRACTS involve the future exchange or delivery of
foreign currency on terms negotiated at the inception of the contract. The
Company enters into these agreements primarily to manage the currency risk
associated with investing in foreign securities.
Market risk is the risk that the Company will incur losses due to adverse
changes in market rates and prices. Market risk exists for all of the derivative
financial instruments that the Company currently holds, as these instruments may
become less valuable due to adverse changes in market conditions. The Company
mitigates this risk through established risk control limits set by senior
management. In addition, the change in the value of the Company's derivative
financial instruments designated as hedges are generally offset by changes in
the value of the related assets and liabilities.
OFF-BALANCE-SHEET FINANCIAL INSTRUMENTS
A summary of the contractual amounts and fair values of off-balance-sheet
financial instruments at December 31, follows:
1998 1997
--------------------- ------------------------
CONTRACTUAL FAIR CONTRACTUAL FAIR
AMOUNT VALUE AMOUNT VALUE
-------- ------- -------- -------
Commitments to invest $ 34,126 N/A $ 18,208 N/A
Commitments to extend mortgage loans 87,000 870 111,305 1,113
Credit guarantees 92,778 - 96,714 -
F-20
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
Except for credit guarantees, the contractual amounts represent the amount
at risk if the contract is fully drawn upon, the counterparty defaults and the
value of any underlying security becomes worthless. Unless noted otherwise, the
Company does not require collateral or other security to support
off-balance-sheet financial instruments with credit risk.
Commitments to invest generally represent commitments to acquire financial
interests or instruments. The Company enters into these agreements to allow for
additional participation in certain limited partnership investments. Because the
equity investments in the limited partnerships are not actively traded, it is
not practicable to estimate the fair value of these commitments.
Commitments to extend mortgage loans are agreements to lend to a borrower,
provided there is no violation of any condition established in the contract. The
Company enters these agreements to commit to future loan fundings at a
predetermined interest rate. Commitments generally have fixed expiration dates
or other termination clauses. Commitments to extend mortgage loans, which are
secured by the underlying properties, are valued based on estimates of fees
charged by other institutions to make similar commitments to similar borrowers.
Financial guarantees represent conditional commitments to repurchase notes
from a creditor upon default of the debtor. The Company enters into these
agreements primarily to provide financial support for certain equity investees.
Financial guarantees are valued based on estimates of payments that may occur
over the life of the guarantees. At December 31, 1998 and 1997, there were no
guarantees outstanding.
Credit guarantees written represent conditional commitments to exchange
identified AAA or AA rated credit risk for identified A rated credit risk upon
bankruptcy or other event of default of the referenced credits. The Company
receives fees for assuming the referenced credit risks, which are reported in
net investment income when earned over the lives of the commitments. The Company
enters into these transactions in order to achieve higher yields than if the
referenced credits were directly owned.
The Company's maximum amount at risk, assuming bankruptcy or other default
of the referenced credits and the value of the referenced credits become
worthless, is the fair value of the identified AAA or AA rated securities. The
identified AAA or AA rated securities had a fair value of $95,233 at December
31, 1998. The Company includes the impact of credit guarantees in its analysis
of credit risk, and the referenced credits were current with respect to their
contractual terms at December 31, 1998.
7. INCOME TAXES
The Company joins the Corporation and its other eligible domestic
subsidiaries (the "Allstate Group") in the filing of a consolidated federal
income tax return and is party to a federal income tax allocation agreement (the
"Allstate Tax Sharing Agreement"). Under the Allstate Tax Sharing Agreement, the
Company pays to or receives from the Corporation the amount, if any, by which
the Allstate Group's federal income tax liability was affected by virtue of
inclusion of the Company in the consolidated federal return. Effectively, this
results in the Company's annual income tax provision being computed, with
adjustments, as if the Company filed a separate return.
Prior to Sears, Roebuck and Co's ("Sears") distribution ("Sears
distribution") on June 30, 1995 of its 80.3% ownership in the Corporation to
Sears shareholders, the Allstate Group,including the Company, joined with Sears
and its domestic business units (the "Sears Group")in the filing of a
consolidated federal income tax return (the Sears Tax Group") and were parties
to a federal income tax allocation agreement (the "Tax Sharing Agreement").
Under the Tax Sharing Agreement, the Company, through the Corporation, paid to
or received from the Sears Group the amount, if any, by which the Sears Tax
Group's federal income tax liability was affected by virtue of inclusion of the
Company in the consolidated federal income tax return.
F-21
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
As a result of the Sears distribution, the Allstate Group was no longer
included in the Sears Tax Group, and the Tax Sharing Agreement was terminated.
Accordingly, the Allstate Group and Sears Group entered into a new tax sharing
agreement, which adopts many of the principles of the Tax Sharing Agreement and
governs their respective rights and obligations with respect to federal income
taxes for all periods prior to the Sears distribution, including the treatment
of audits of tax returns for such periods.
The Internal Revenue Service ("IRS") has completed its review of the
Allstate Group's federal income tax returns through the 1993 tax year. Any
adjustments that may result from IRS examinations of tax returns are not
expected to have a material impact on the financial position, liquidity or
results of operations of the Company.
The Company paid income taxes of $250,673 and $193,951 in 1998 and 1997,
respectively. The Company had income taxes payable of $30,813 and $31,260 at
December 31, 1998 and 1997, respectively.
Prior to January 1, 1984, the Company was entitled to exclude certain
amounts from taxable income and accumulate such amounts in a "policyholder
surplus" account. The balance in this account at December 31, 1998, $94,262,
will result in federal income taxes payable of $32,992 if distributed to the
Corporation. No provision for taxes has been made as the Company has no plan to
distribute amounts from this account. No further additions to the account have
been permitted since the Tax Reform Act of 1984.
A reconciliation of the statutory federal income tax rate to the effective
income tax rate on income from operations for the year ended December 31, is as
follows:
1998 1997
---- ----
Statutory federal income tax rate 35.0% 35.0 %
Deferred acquisition costs 2.8 3.3
Investment related items (5.3) (2.6)
Net difference between statutory and tax basis reserves 0.8 1.2
Intangibles related to acquisitions 2.9 -
Other (3.1) (1.9)
---- ----
Effective federal income tax rate 33.1 % 35.0 %
===== ====
8. BENEFIT PLANS
PENSION PLANS AND OTHER POSTRETIREMENT PLANS
Defined benefit pension plans, sponsored by AIC, cover domestic and
Canadian full-time employees and certain part-time employees. Benefits under the
pension plans are based upon the employee's length of service, average annual
compensation and estimated social security retirement benefits. AIC's funding
policy for the pension plans is to make annual contributions in accordance with
accepted actuarial cost methods. The cost to the Company for participation in
the plans was $9,906 and $10,603 in 1998 and 1997, respectively.
AIC provides certain health care and life insurance benefits for retired
employees. Qualified employees may become eligible for these benefits if they
retire in accordance with AIC's established retirement policy and are
continuously insured under AIC's group plans or other approved plans for ten or
more years prior to retirement. AIC shares the cost of the retiree medical
benefits with retirees based on years of service, with AIC's share being subject
to a 5% limit on annual medical cost inflation after retirement. AIC's
post-retirement benefit plans currently are not funded. AIC has the right to
modify or terminate these plans. Total unfunded postretirement benefit
obligation amounted to $313,984 and $261,720 at December 31, 1998 and 1997,
respectively.
F-22
ALLSTATE LIFE INSURANCE COMPANY
NOTES TO COMBINED FINANCIAL STATEMENTS
(Statutory basis)
YEARS ENDED DECEMBER 31, 1998 AND 1997
($ in thousands)
PROFIT SHARING FUND
Employees of the Corporation are also eligible to become members of The
Savings and Profit Sharing Fund of Allstate Employees ("Allstate Plan"),
sponsored by the Corporation. The Corporation's contributions are based on its
matching obligation and the Corporation's operating results performance.
The Company's defined contribution to the Allstate Plan was $2,941 and
$2,650 in 1998 and 1997, respectively.
9. DIVIDENDS
The ability of the Company to pay dividends is dependent on business
conditions, income, cash requirements of the Company and other relevant factors.
The payment of shareholder dividends by insurance companies without the prior
approval of the state insurance regulator is limited to formula amounts based on
net income and capital and surplus, determined in accordance with statutory
accounting practices, as well as the timing and amount of dividends paid in the
preceding twelve months. The maximum amount of dividends that ALIC can
distribute during 1999 without prior approval of the Illinois Department of
Insurance is $353,331.
10. LINES OF CREDIT
ALIC, along with the Corporation and AIC, maintains a bank line of credit
totaling $1,500,000 which expires on December 20, 2001. The bank line provides
for loans at a spread above prevailing referenced interest rates. ALIC, the
Corporation and AIC pay commitment fees in connection with the line of credit.
As of December 31, 1998, no amounts were outstanding under the bank line of
credit.
11. LEASE COMMITMENTS
The Company leases certain office facilities and computer equipment. Total
rent expense for all leases was $2,564 and $1,931 in 1998 and 1997,
respectively. Minimum rental commitments under non-cancelable operating leases
with an initial or remaining term of more than one year as of December 31, are
as follows:
1998
----
1999 $2,633
2000 2,425
2001 939
2002 782
2003 36
Thereafter 276
------
$7,091
======
* * *
F-23
PART C
OTHER INFORMATION
24A. FINANCIAL STATEMENTS
Allstate Life Insurance Company Financial Statements and Financial Schedule (to
be filed by amendment).
24B. EXHIBITS
The following exhibits, correspond to those required by paragraph (b) of
item 24 as to exhibits in Form N-4:
(1) Resolution of the Board of Directors of Allstate Life Insurance Company
authorizing establishment of the Allstate Life Insurance Company Separate
Account A*
(2) Not Applicable
(3) Underwriting Agreement
(4) Form of Contract and Certificate Amendments*
(5) Form of application for a Contract
(6)(a) Articles of Incorporation of Allstate Life Insurance Company*
(b) By-laws of Allstate Life Insurance Company*
(7) Not applicable
(8) Participation Agreement
(9) Opinion of Michael J. Velotta, Vice President, Secretary and General
Counsel of Allstate Life Insurance Company
(10)(a) Consent of Accountants
(b) Consent of Attorneys
(11) Not applicable
(12) Not applicable
(13) Performance Data Calculations
(14) Not applicable
(99) Powers of Attorney*
* Previously filed in this registration statement (333-72017) dated February 9,
1999.
25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
NAME AND PRINCIPAL POSITION AND OFFICE WITH
BUSINESS ADDRESS DEPOSITOR OF THE ACCOUNT
Louis G. Lower, II Chairman of the Board of Directors
and Chief Executive Officer
Thomas J. Wilson, II Director and President
Michael J. Velotta Director, Vice President, Secretary
and General Counsel
Marla G. Friedman Director and Vice President
Robert W. Gary Director
Peter H. Heckman Director and Vice President
Phillip E. Lawson Director
Edward M. Liddy Director
John C. Lounds Director and Vice President
Robert W. Pike Director
Timothy H. Plohg Director and Vice President
Kevin R. Slawin Director and Vice President
Casey J. Sylla Director and Chief Investment Officer
Charles F. Thalheimer Director and Vice President
B. Eugene Wraith Director and Assistant Vice President
Karen C. Gardner Vice President
Thomas A. McAvity, Jr. Vice President
Mary J. McGinn Vice President and Assistant Secretary
James P. Zils Treasurer
Keith A. Hauschildt Assistant Vice President and Controller
C. Nelson Strom Assistant Vice President and Corporate Actuary
Patricia W. Wilson Assistant Vice President, Assistant Secretary
and Assistant Treasurer
Richard L. Baker Assistant Vice President
D. Steven Boger Assistant Vice President
Sarah R. Donahue Assistant Vice President
Douglas F. Gaer Assistant Vice President
John R. Hunter Assistant Vice President
Kimberly A. Johnson Assistant Vice President
Ronald Johnson Assistant Vice President
Robert Park Assistant Vice President
Barry S. Paul Assistant Vice President
Robert E. Rich Assistant Vice President
Robert N. Roeters Assistant Vice President
Leonard G. Sherman Assistant Vice President
Linda L. Shumilas Assistant Vice President
Robert E. Transon Assistant Vice President
Timothy N. Vander Pas Assistant Vice President
G. Craig Whitehead Assistant Vice President
Laura R. Zimmerman Assistant Vice President
Joanne M. Derrig Assistant Secretary and Chief
Compliance Officer
Emma M. Kalaidjian Assistant Secretary
Paul N. Kierig Assistant Secretary
Brenda D. Sneed Assistant Secretary and Assistant
General Counsel
Nancy M. Bufalino Assistant Treasurer
The principal business address of the foregoing officers and directors is 3100
Sanders Road, Northbrook, Illinois 60062.
26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH DEPOSITOR OR REGISTRANT
Information in response to this item is incorporated by reference to the Form
10-K Annual Report of The Allstate Corporation (File #1-11840).
27. NUMBER OF CONTRACT OWNERS
Registrant intends to begin operations shortly after the effective date of this
Registration Statement. As of the date hereof there are no contract owners.
28. INDEMNIFICATION
The by-laws of Allstate Life Insurance Company (Depositor) provide for the
indemnification of its Directors, Officers and Controlling Persons, against
expenses, judgements, fines and amounts paid in settlement as incurred by such
person, if such person acted properly. No indemnification shall be made in
respect of any claim, issue or matter as to which such person shall have been
adjudged to be liable for negligence or misconduct in the performance of a duty
to the Company, unless a court determines such person is entitled to such
indemnity.
Insofar as indemnification for liability arising out of the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than payment by the registrant of expenses incurred by a
director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the
registrant will, unless in the opinion of is counsel the matter has been settled
by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of such
issue.
29A. RELATIONSHIP OF PRINCIPAL UNDERWRITER TO OTHER INVESTMENT COMPANIES
Glenbrook Life and Annuity Company Separate Account A
Glenbrook Life Multi-Manager Variable Account
Glenbrook Life and Annuity Company Variable Annuity Account
Glenbrook Life Variable Life Separate Account B
Allstate Life of New York Separate Account A
Glenbrook Life AIM Variable Life Separate Account A
Glenbrook Life Scudder Variable Account (A)
Glenbrook Life Variable Life Separate Account A
Allstate Life Insurance Company Separate Account A
29B. PRINCIPAL UNDERWRITER
Name and Principal Business Positions and Offices
Address of Each Such Person with Underwriter
- --------------------------- ----------------------
Louis G. Lower, II Director
Kevin R. Slawin Director
Michael J. Velotta Director and Secretary
John R. Hunter President and Chief Executive Officer
Diane Bellas Vice President and Controller
Brent H. Hamann Vice President
Andrea J. Schur Vice President
Terry R. Young General Counsel and Assistant Secretary
James P. Zils Treasurer
Lisa A. Burnell Assistant Vice President and
Compliance Officer
Robert N. Roeters Assistant Vice President
Emma M. Kalaidjian Assistant Secretary
Brenda D. Sneed Assistant Secretary
Nancy M. Bufalino Assistant Treasurer
The principal address of Allstate Life Financial Services, Inc. is 3100 Sanders
Road, Northbrook, Illinois.
29C. COMPENSATION OF PRINCIPAL UNDERWRITER
To be filed by amendment.
30. LOCATION OF ACCOUNTS AND RECORDS
The Depositor, Allstate Life Insurance Company, is located at 3100 Sanders Road,
Northbrook, Illinois 60062.
The Distributor, Allstate Life Financial Services, Inc., is located at 3100
Sander Road, Northbrook, Illinois 60062.
Each company maintains those accounts and records required to be maintained
pursuant to Section 31(a) of the Investment Company Act and the rules
promulgated thereunder.
31. MANAGEMENT SERVICES
None.
32. UNDERTAKINGS
Registrant promises to file a post-effective amendment to the Registration
Statement as frequently as is necessary to ensure that the audited financial
statements in the Registration Statement are never more than 16 months old for
so long as payments under the variable annuity contracts may be accepted.
Registrant furthermore agrees to include either as part of any application to
purchase a contract offered by the prospectus, a space that an applicant can
check to request a Statement of Additional Information, or a post card or
similar written communication affixed to or included in the Prospectus that the
applicant can remove to send for a Statement of Additional Information. Finally,
Registrant agrees to deliver any Statement of Additional Information and any
financial statements required to be made available under this Form N-4 promptly
upon written or oral request.
33. REPRESENTATIONS PURSUANT TO SECTION 403(B) OF THE INTERNAL
REVENUE CODE
The Company represents that it is relying upon the letter, dated November 28,
1988, from the Commission staff to the American Council of Life Insurance and
that it intends to comply with the provisions of paragraphs 1-4 of that letter.
34. REPRESENTATION REGARDING CONTRACT EXPENSES
Allstate Life Insurance Company ("Allstate Life") represents that the fees and
charges deducted under the Contracts described in the prospectus included in
this Registration Statement (as amended or supplemented), in the aggregate, are
reasonable in relation to the services rendered, the expenses expected to be
incurred, and the risks assumed by Allstate Life.
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, Registrant, Allstate Life Insurance Company Separate Account A, has caused
this Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, and its seal to be hereunto affixed and attested, all
in the Township of Northfield, State of Illinois, on the 15th day of April,
1999.
ALLSTATE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT A
(REGISTRANT)
BY: ALLSTATE LIFE INSURANCE COMPANY
(DEPOSITOR)
(SEAL)
Attest: /s/BRENDA D. SNEED By:/s/MICHAEL J. VELOTTA
------------------ ---------------------
Brenda D. Sneed Michael J. Velotta
Assistant Secretary Vice President, Secretary and
And Assistant General Counsel General Counsel
As required by the Securities Act of 1933, this Registration Statement has been
duly signed below by the following Directors and Officers of Allstate Life
Insurance Company on the 15th day of April, 1999.
*/LOUIS G. LOWER, II Chairman of the Board and Director
- -------------------- (Principal Executive Officer)
Louis G. Lower, II
/s/MICHAEL J. VELOTTA Vice President, Secretary, General
- --------------------- Counsel and Director
Michael J. Velotta
*/THOMAS J. WILSON, II President and Director
- ---------------------- (Principal Operating Officer)
Thomas J. Wilson, II
*/KEVIN R. SLAWIN Vice President and Director
- ----------------- (Principal Financial Officer)
Kevin R. Slawin
*/CASEY J. SYLLA Chief Investment Officer and Director
- ----------------
Casey J. Sylla
*/KEITH A. HAUSCHILDT Assistant Vice President and Controller
- --------------------- (Principal Accounting Officer)
Keith A. Hauschildt
*/MARLA G. FRIEDMAN Vice President and Director
- -------------------
Marla G. Friedman
*/PETER H. HECKMAN Vice President and Director
- ------------------
Peter H. Heckman
*/JOHN C. LOUNDS Vice President and Director
- -----------------
John C. Lounds
*/TIMOTHY H. PLOHG Vice President and Director
- ------------------
Timothy H. Plohg
*/ By Michael J. Velotta, pursuant to Powers of Attorney previously filed.
EXHIBIT INDEX
(3) Form of Underwriting Agreement
(5) Form of application for a Contract
(8) Form of Participation Agreement
(9) Opinion of Michael J. Velotta, Vice President, Secretary and General
Counsel of Allstate Life Insurance Company
(10)(a) Consent of Accountants
(b) Consent of Attorneys
(13) Performance Data Calculations
EX-3
2
FORM OF UNDERWRITING AGREEMENT
PRINCIPAL UNDERWRITING AGREEMENT
This Principal Underwriting Agreement (hereinafter "Agreement") is made and
entered into as of this ___ day of ______, 1999, by and between Allstate Life
Insurance Company ( "Allstate Life") a life insurance company organized under
the laws of the state of Illinois on its own and on behalf of each separate
account of Allstate Life set forth on Attachment A, as such Attachment may be
amended from time (each such account herein referred to as the "Account"), and
Allstate Life Financial Services, Inc. ("ALFS"), a limited liability corporation
organized under the laws of the state of Delaware.
In consideration of the mutual promises and covenants exchanged by the parties
in this Agreement, Allstate Life grants to ALFS the right to be and ALFS agrees
to serve as Principal Underwriter for the sale of variable insurance products
and other insurance and investment products during the term of this Agreement
and the parties agree as follows:
ARTICLE I
ALFS DUTIES AND OBLIGATIONS
1.01 ALFS, a broker-dealer registered under the Securities Exchange Act of 1934
(the "1934 Act") and a member of the National Association of Securities Dealers,
Inc. ("NASD"), will serve as principal underwriter and distributor for the
variable insurance contracts (contracts listed in Attachment A , herein, the
"Contracts") which will be issued by Allstate Life.
1.02 ALFS shall be duly registered or licensed or otherwise qualified under the
insurance and securities laws of the states in which the Contracts are
authorized for sale.
1.03 ALFS proposes to act as principal underwriter on an agency best efforts
basis in the marketing and distribution of the Contracts. ALFS will use its best
efforts to provide information and marketing assistance to licensed insurance
agents and broker-dealers ("Selling Broker-Dealers") on a continuing basis.
1.04 ALFS shall be responsible for compliance with the requirements of state
broker-dealer regulations and the 1934 Act as each applies to ALFS in connection
with its duties as distributor of the Contracts. Moreover, ALFS shall conduct
its affairs in accordance with the Rules of Fair Practice of the NASD.
1.05 As a principal underwriter, ALFS shall permit the offer and sale of
Contracts to the public only by and through persons who are appropriately
licensed under the securities laws and who are appointed in writing by Allstate
Life to be authorized insurance agents (unless such persons are exempt from such
licensing and appointment requirements);
1.06 To the extent that any statements made in the Registration Statement, or
any amendment or supplement thereto, are made in reliance upon and in conformity
with written information furnished to Allstate Life by ALFS expressly for use
therein, such statements will, when they become effective or are filed with the
SEC, as the case may be, conform in all material respects to the requirements of
the 1933 Act and the rules and regulations of the Commission thereunder, and
will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading.
1.07 Subject to agreement with Allstate Life, ALFS may enter into selling
agreements with broker-dealers which are registered under the 1934 Act and/or
authorized by applicable law or exemptions to sell the Contracts. Any such
contractual arrangement is expressly made subject to this Agreement, and ALFS
will at all times be responsible to Allstate Life for supervision of compliance
with federal securities laws regarding distribution of the Contracts.
ARTICLE II
ALLSTATE LIFE'S DUTIES AND OBLIGATIONS
2.01 Allstate Life is validly existing as a stock life insurance company in good
standing under the laws of the State of Illinois, and has been duly qualified
for the transaction of business and is in good standing under the laws of each
other jurisdiction in which it owns or leases properties or conducts any
business.
2.02 Allstate Life represents that:
a) Registration Statements for each of the Contracts identified in
Attachment A shall have been filed with the Securities and Exchange
Commission ("SEC") in the form previously delivered to ALFS and that
copies of any and all amendments thereto will be forwarded to ALFS at
the time that they are filed with the SEC;
b) Each Account is a duly organized, validly existing separate account,
established by resolution of the Board of Directors of Allstate Life,
on the date shown for such Account on Attachment A, for the purpose of
issuing the Contracts; and
c) Allstate Life has registered or will register the Account as a unit
investment trust under the Investment Company Act of 1940 (the "1940
Act").
2.03 The Registration Statement and any further amendments or supplements
thereto will, when they became effective, conform in all material respects to
the requirements of the Securities Act of 1933 (the "1933 Act") and the 1940
Act, and the rules and regulations of the Commission under such Acts and will
not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading; provided, however, that this representation and warranty shall
not apply to any statement or omission made in reliance upon and in conformity
with information furnished in writing to Allstate Life by ALFS expressly for use
therein.
2.04 Allstate Life shall be responsible for the licensing and appointing of
registered representatives of Selling Broker-Dealers as required by state
insurance laws.
ARTICLE III
RECORDS
3.01 ALFS shall keep, in a manner and form approved by Allstate Life and in
accordance with Rules 17a-3 and 17a-4 under the 1934 Act, accurate records and
books of account as required to be maintained by a registered broker-dealer,
acting as principal underwriter, of all transactions entered into on behalf of
Allstate Life with respect its activities under this Agreement. ALFS shall make
such records of account available for inspection by the SEC and Allstate Life
shall have the right to inspect, make copies of or take possession of such
records and books of account at any time upon demand.
3.02 Subject to applicable SEC or NASD restrictions, Allstate Life will send
confirmations of Contract transactions to Contract owners. Allstate Life will
make such confirmations and records of transactions available to ALFS upon
request. Allstate Life will also maintain Contract Owner records on behalf of
ALFS to the extent permitted by applicable securities law.
3.03 ALFS and Allstate Life shall keep confidential the records, books of
account and other information concerning the Contract owners, annuitants,
insureds, beneficiaries or any persons who have rights arising out of the
Contracts. ALFS or Allstate Life may disclose the Records and such information
only if the other has authorized disclosure and if the disclosure is required by
applicable law. In the event ALFS or Allstate Life is served with a subpoena,
court order or demand from a regulatory organization which mandates disclosure
of the Records or such information, such party must notify the other and allow
such other party sufficient time to authorize disclosure or to intervene in the
judicial proceeding or matter so as to protect its interest.
3.04 Unless otherwise agreed to, no party to this Agreement shall voluntarily
disclose to any third party other than Putnam Investments, Inc. and its
affiliates, any books, reference manuals, instructions, information or data
which concern the other party's business and which are exchanged during the
negotiation and performance of this Agreement. When this Agreement terminates or
expires, the parties shall return all such books, reference manuals,
instructions, information or data in their possession.
3.05 For the purpose of determining the other party's compliance with this
Agreement, each party to this Agreement shall have reasonable access during
normal business hours to any records and books of account which concern the
Contracts and which are maintained by the other party.
3.06 Both Allstate Life and ALFS agree to keep all information required by
applicable laws, to maintain the books, accounts and records as to clearly and
accurately disclose the precise nature and details of the transaction and to
assist one another in the timely perpetration of any reports required by law.
3.07 ALFS and Allstate Life shall furnish to the other any reports and
information which the other may request for the purpose of meeting reporting and
recordkeeping requirements under the laws of Illinois or any other state or
jurisdiction.
ARTICLE IV
SALES MATERIALS
4.01 ALFS will utilize the currently effective prospectus relating to the
Contracts in connections with its underwriting, marketing and distribution
efforts. As to other types of sales material, ALFS hereby agrees and will
require Selling Broker-Dealers to agree to use only sales materials which have
been authorized for use by Allstate Life, which conform to the requirements of
federal and state laws and regulations, and which have been filed where
necessary with the appropriate regulatory authorities including the NASD.
4.02 ALFS will not distribute any prospectus, sales literature or any other
printed matter or material in the underwriting and distribution or any Contract
if, to the knowledge of ALFS, any of the foregoing misstates the duties,
obligation or liabilities of Allstate Life or ALFS.
ARTICLE V
COMPENSATION
5.01 Allstate Life shall pay to ALFS commissions described in Attachment B ,
attached hereto and made a part hereof. ALFS shall not be obligated to pay
another broker/dealer for sales of Contracts pursuant to its selling agreement
with such broker/dealer until ALFS has received its commissions for the sale of
such Contracts from Allstate Life.
5.02 In compensating ALFS, Allstate Life reserves the right to withhold
commissions from ALFS if it determines ALFS is not paying commissions to its
Selling Broker-Dealers in accordance with applicable laws.
5.03 ALFS shall direct how commissions are paid, provided such direction is in
accordance with applicable law.
5.04 Allstate Life agrees to pay ALFS for direct expenses incurred on behalf of
Allstate Life. Such direct expenses shall include, but not be limited to, the
costs of goods and services purchased from outside vendors, travel expenses and
state and federal regulatory fees incurred on behalf of Allstate Life.
5.05 ALFS shall present a statement after the end of the quarter showing the
apportionment of services rendered and the direct expenses incurred. Settlements
are due and payable within thirty days.
ARTICLE VI
UNDERWRITING TERMS
6.01 ALFS makes no representations or warranties regarding the number of
contracts to be sold by Selling Broker-Dealer and the registered representatives
of Selling Broker-Dealer or the amount to be paid thereunder. ALFS does,
however, represent that it will actively engage in its duties under this
Agreement on a continuous basis while there is an effective Registration
Statement with the SEC.
6.02 ALFS will use its best efforts to ensure that the Contracts shall be
offered for sale by registered broker-dealers and registered representatives
(who are duly licensed as insurance agents) on the terms described in the
currently effective prospectus describing such Contracts.
6.03 Allstate Life will use its best efforts to assure that the Contracts are
continuously registered under the 1933 Act (and under any applicable state "blue
sky" laws) and to file for approval under state insurance laws when necessary.
ARTICLE VII
LEGAL AND REGULATORY ACTIONS
7.01 Allstate Life agrees to advise ALFS immediately of:
a) any request by the SEC for amendment of the Registration Statement or for
additional information relating to the Contracts;
b) the issuance by the SEC of any stop order suspending the effectiveness of
the Registration Statement relating to the Contracts or the initiation of
any proceedings for that purpose; and
c) the happening of any known material event which makes untrue any statement
made in the Registration Statement relating to the Contracts or which
requires the making of a change therein in order to make any statement made
therein not misleading.
7.02 Each of the undersigned parties agrees to notify the other in writing upon
being apprised of the institution of any proceeding, investigation or hearing
involving the offer or sale of the subject Contracts.
7.03 During any legal action or inquiry, Allstate Life will furnish to ALFS such
information with respect to the Contracts in such form and signed by such of its
officers as ALFS may reasonably request and will warrant that the statements
therein contained when so signed are true and correct.
7.04 If changes in insurance laws or regulations could reasonably be expected to
affect the sales and administration of Contracts under this Agreement, Allstate
Life shall notify ALFS within a reasonable time after Allstate Life receives
notice of those changes. Such notice shall be in writing except, if
circumstances so require, the notice may be communicated by telephone or
facsimile and confirmed in writing.
ARTICLE VIII
TERMINATION
8.01 This Agreement shall terminate at either Party's option, without penalty:
(a) without case, on not less than 180 days' prior written notice to the
other Party;
(b) upon the mutual written consent of the Parties;
(c) upon written notice of one Party to the other in the event of
bankruptcy or insolvency of the Party to which notice is given;
(d) upon the suspension or revocation of any material license or permit
held by a Party by the appropriate governmental agency or authority;
however, such termination shall extend only to the jurisdiction(s)
where the Party is prohibited from doing business; or
(e) upon the finding by any regulatory body in a formal proceeding of
material wrongdoing by a Party regarding its duties under this
Agreement.
8.02 If either Party breaches this Agreement or is in default in the performance
of any of its duties and obligations hereunder (the "defaulting Party"), the
non-defaulting Party may give written notice thereof to the defaulting Party,
and if such breach or default is not remedied within 60 days after such written
notice is given, then the non-defaulting Party may terminate this Agreement by
giving 30 days' prior written notice of such termination to the defaulting
Party.
8.03 The Parties agree to cooperate and give reasonable assistance to one
another in effecting an orderly transition following termination.
ARTICLE IX
INDEMNIFICATION
9.01 Scope of Indemnification
(a) Each Party (the "Indemnifying Party") agrees to indemnify and hold
harmless the other (the "Indemnified Party") against any loss, liability, claim,
damage or expense (including the reasonable cost of investigating or defending
any alleged loss, liability, claim, damage or expense, and reasonable counsel
fees incurred in connection therewith) arising by reason of any person's
acquiring any Contract, which may be based upon any law:
(i) on the ground that the Indemnifying Party, its directors,
officers, employees, agents, or subcontractors failed to comply with
any applicable laws and regulations in connection with its rendering of
duties or services under this Agreement; or
(ii) on the ground of negligence or misconduct by the
Indemnifying Party or its directors, officers, employees, agents, or
subcontractors, in the performance of its duties hereunder, or breach
by the Indemnifying Party of any representation or warranty hereunder.
The foregoing indemnities shall, upon the same terms and conditions,
extend to and inure to the benefit of each director, officer and employee of the
Indemnified Party and any person controlling or controlled by the Indemnified
Party within the meaning of Section 15 of the Securities Act of 1933 or Section
20 of the 1934 Act.
(b) In no case shall the indemnity in favor of the Indemnified Party,
including such controlling or controlled persons, be deemed to protect the
Indemnified Party against any liability to the Indemnifying Party to which it
would otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of its duties or by reason of reckless disregard
of its obligations and duties under this Agreement. In addition, in no case
shall the Indemnifying Party be liable under its indemnity agreement contained
in Section 4.1(a) hereof with respect to any claim made against an Indemnified
Party, unless the Indemnified Party shall have notified the Indemnifying Party
in writing by fax or overnight mail giving information of the nature of the
claim within two (2) business days after the summons or other first legal
process shall have been served upon the Indemnified Party (or after the
Indemnified Party shall have received notice of such service on any designated
agent), but failure to notify the Indemnifying Party of any such claim shall not
relieve it from any liability which it may have to the Indemnified Party against
whom such action is brought otherwise than on account of its indemnity agreement
contained in Section 4.1(a) hereof. The Indemnifying Party shall be entitled to
participate at its own expense in the defense, or, if it so elects, to assume
the defense of any suit brought to enforce such liability. If the Indemnifying
Party elects to assume the defense, such defense shall be conducted by counsel
chosen by it and satisfactory to the Indemnified Party. In the event the
Indemnifying Party elects to assume the defense of any such suit and retains
such counsel, the Indemnified Party shall bear the fees and expenses of any
additional counsel retained by it, but, in case the Indemnifying Party does not
elect to assume the defense of any such suit, it shall reimburse the Indemnified
Party for the reasonable fees and expense of any counsel retained by the
Indemnified Party. The Indemnifying Party shall promptly notify the Indemnified
Party of the commencement of any litigation or proceedings against the
Indemnifying Party or any of its officers, directors, employees or
subcontractors in connection with the issuance or sale of the Contracts.
9.02 Limitation on Liability
In no event shall either Party be liable for lost profits or for
exemplary, special, punitive or consequential damages alleged to have been
sustained by the other Party, as opposed to a third party.
9.03 Injunctive Relief
The Parties each agree that monetary damages may be an inadequate
remedy in the event of a breach by either Party of any of the covenants in this
Agreement, and that any such breach by a Party may cause the other Party great
and irreparable injury and damage. Accordingly, nothing in this Agreement shall
limit a Party's right to obtain equitable relief when appropriate.
ARTICLE X
GENERAL PROVISIONS
10.01 This Agreement shall be subject to the laws of the state of Illinois.
10.02 This Agreement, along with any schedules attached hereto and incorporated
herein by reference, may be amended from time to time by mutual agreement and
consent of the under signed parties.
10.03 In case any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity and enforceability of the remaining provisions shall
not in any way be affected or impaired thereby.
IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be
duly executed, to be effective as of _____________, 1999
Allstate Life Insurance Company (and the Account(s) set forth on Attachment A)
By: ___________________________ ______________________
Title Date
Allstate Life Financial Services, Inc.
By: ___________________________ _______________________
Title Date
ATTACHMENT A
Separate Account Effective Date Contract Form #
ATTACHMENT B
ALFS shall be entitled to remuneration for its services as shown below for all
variable annuity purchase payments received on policies issued by Allstate Life.
Such remuneration shall be reduced by the amount of commissions payable to
broker/dealers receiving compensation pursuant to selling agreements with
Allstate Life and ALFS.
- ------------------------ ----------------------- ---------------------
Schedule A
- ------------------------ ----------------------- ---------------------
Issue Age: 0-80 7.30%
- ------------------------ ----------------------- ---------------------
- ------------------------ ----------------------- ---------------------
81-85 5.80%
- ------------------------ ----------------------- ---------------------
- ------------------------ ----------------------- ---------------------
86-90 4.30%
- ------------------------ ----------------------- ---------------------
- ------------------------ ----------------------- --------------------- --------------------
Schedule B Up-Front Trail
- ------------------------ ----------------------- --------------------- --------------------
Issue Age: 0-80 6.30% 25 bps
- ------------------------ ----------------------- --------------------- --------------------
- ------------------------ ----------------------- --------------------- --------------------
81-85 5.05% 25 bps
- ------------------------ ----------------------- --------------------- --------------------
- ------------------------ ----------------------- --------------------- --------------------
86-90 3.80% 25 bps
- ------------------------ ----------------------- --------------------- --------------------
- ----------------------------------------- -------------------------------------------------------------------
Charge Back Schedule
- ----------------------------------------- -------------------------------------------------------------------
Full or partial Withdrawal 100% Charge Back due to "Right to Cancel" provision.
- ----------------------------------------- -------------------------------------------------------------------
- ----------------------------------------- -------------------------------------------------------------------
Early Annuitization Year 1 Only, Charge Back to Annuitization Level Commission (TBD)
- ----------------------------------------- -------------------------------------------------------------------
An additional 1% override is available up-front to ALFS on sales for the first
$1 billion or through 5/1/2000, if earlier.
EX-5
3
FORM OF APPLICATION FOR A CONTRACT
putnam
allstate
advisor
application
and transfer forms
putnam
allstate
advisor
Application for
Variable Annuity
Mail documents to:
Allstate Life Insurance Company
OVERNIGHT: 3100 Sanders Road - J4A
Northbrook, IL 60062
MAIL: P.O. Box 94039
Palatine, IL 60094-4039
Questions?
Call Putnam Insurance Products Services toll free at 1-800-390-1277.
REMEMBER
Keep a copy of all documents for your file.
LR1597 CW
Application
for Variable Annuity
Insurer, as used in this application, means Allstate Life Insurance Company.
Allstate Life Insurance Company
OVERNIGHT: 3100 Sanders Road - J4A
Northbrook, IL 60062
MAIL: P.O. Box 94039
Palatine, IL 60094-4039
1) owner
If no Annuitant is specified in section 3, the Owner will be the Annuitant.
Name
Street Address
City State Zip
SS#/TIN
Date of birth Month Day Year
o Male o Female o Trustee o CRT
Phone #
2) Joint owner
(If any)
Name
Relationship to Owner
SS#/TIN
Date of birth Month Day Year
o Male
o Female
3) Annuitant
Complete only if
different from the Owner in section 1.
Name
Street Address
City State Zip
SS#/TIN
Date of birth Month Day Year
o Male
o Female
4) Beneficiary(ies)
Designated
Contingent
Name(s) Relationship to Owner Percentage
Name(s) Relationship to Owner Percentage
5) Tax-qualified
plans
Check the appropriate box in A, B, and C.
A. o Nonqualified o Traditional IRA o SEP-IRA o Roth IRA o 401(k)
o 401(a)o 403(b)
o Other________________________________
B. o Initial o Transfer o Rollover Tax year for which initial
contribution is being made________
C. o Individual Accounts o Unallocated Plan Account
6) investment
selection
Please check selected investment choice(s) and indicate whole percentage
allocations. The initial premium will be allocated as selected here. If dollar
cost averaging, see section 7B. Initial $___________________ Monies remitted via
o Check o Wire o 1035 o Tax-qualified transfer o Asia Pacific Growth ______% o
Diversified Income ______% o The George Putnam Fund ______% o Global Asset
Allocation ______% o Global Growth ______% o Growth and Income ______% o Health
Sciences ______% o High Yield ______% o Income ______% o International Growth
______% o International Growth and Income ______% o International New
Opportunities ______% o Investors ______% o Money Market ______% o New
Opportunities ______% o New Value ______% o OTC & Emerging Growth ______% o
Research ______% o Small Cap Value ______% o Utilities Growth and Income ______%
o Vista ______% o Voyager ______% o ___________________________ ______%
o 6-Month DCA Fixed Account* ______%
o 12-Month DCA Fixed Account* ______%
o Standard Fixed Account* ______%
*May not be available in all states
Total ______%
Optional Programs
7A) Automatic
rebalancing
Program
o Moderate -- 35% Diversified Income, 20% Growth and Income, 20% International
New Opportunities, 15% Income, 10% New Value
o Aggressive -- 25% International New Opportunities, 25% Growth and Income,
20% Diversified Income, 15% Income, 15% New Value
o Flagship -- 38% Growth and Income, 38% Voyager, 24% Income
If a custom model is created, please complete and sign the separate form in
the back of the booklet.
7B) Dollar cost
averaging
Program
Transfer to (select investment option) Percent per transfer Transfer Frequency: Monthly
----------------------------- --------------% Program Options:
----------------------------- --------------% o 6-month program*
----------------------------- --------------% o 12-month program**
----------------------------- --------------%
Number of occurrences (3-12)
DCA Program length: Minimum 3 months, maximum 12 months.
*All assets must be transferred into the variable subaccounts within 3 to 6
months from the date of enrollment.
**All assets must be transferred into the variable subaccounts within 7 to 12
months from the date of enrollment.
If you wish to Dollar Cost Average from variable subaccounts, please see the
form in the back of the booklet.
The program above may be terminated or modified at any time by me or
the Insurer by providing written notice to the other party or, if investment
option balances are inadequate, by executing the requested transfer/withdrawal.
In the unlikely event that another financial transaction request is received on
the transfer/withdrawal date, the Insurer may delay processing the scheduled
transfer/withdrawal if enrolling in the Systematic Withdrawal Plan.
Optional Riders (May not be available in all states*)
8A) Guaranteed
minimum
income
benefit
Select only one income benefit rider
o Income Benefit Rider 1: Guaranteed Return of Premium
OR
o Income Benefit Rider 2: Guaranteed Greater of 6% Annual Increase or Maximum
Anniversary Value
8B) enhanced
DEATH
BENEFIT
o 5% Annual Increase
Greater of base death benefit or 5% Annual Increase
* Please note there is an additional charge for the optional riders; see
prospectus for details.
9) Special
Remarks
(Attach separate page if necessary.)
- ------------------------------------------------------------------------------
10) Home office
use only
- ------------------------------------------------------------------------------
11) owner(s') Acknowledgements
The following states require the applicant to acknowledge the information below
that pertains to their specific state. Check the appropriate box for your
resident state, sign and date the bottom of Section 12.
o Arkansas, o Kentucky, o Maine, o new mexico, o ohio, o Pennsylvania
Any person who knowingly and with intent to defraud any insurance company or
other person files an application for insurance or statement of claim containing
any materially false information or conceals, for the purpose of misleading
information concerning any false materials thereto commits a fraudulent
insurance act, which is a crime and subjects such person to criminal and civil
penalties.
o Arizona Upon your written request we will provide you within a reasonable
period of time, reasonable, factual information regarding the benefits and
provisions of the annuity contract for which you are applying. If for any reason
you are not satisfied with the contract, you may return the contract within ten
days after you receive it. If the contract you are applying for is a variable
annuity, you will receive an amount equal to the sum of (i) the difference
between the premiums paid and the amounts allocated to any account under the
contract and (ii) the Contract Value on the date the returned contract is
received by our company or our agent.
o Colorado It is unlawful to knowingly provide false, incomplete, misleading
facts or information to an insurance company for the purpose of defrauding or
attempting to defraud the company. Penalties may include imprisonment, fines,
denial of insurance, and civil damages. Any insurance company or agent of an
insurance company who knowingly provides false, incomplete or misleading facts
or information to a policyholder or claimant for the purpose of defrauding or
attempting to defraud the policyholder or claimant with regard to a settlement
or award payable from insurance proceeds shall be reported to the Colorado
Division of Insurance within the Department of Regulatory Services.
o Florida Any person who knowingly and with intent to injure, defraud or deceive
any insurer, files a statement of claim or an application containing any false,
incomplete or misleading information is guilty of a felony of the third degree.
o New Jersey Any person who includes any false or misleading information on an
application for an insurance policy is subject to criminal and civil penalties.
12)Will the annuity applied for replace one or more existing annuity or life
insurance contracts? o Yes o No (If yes, explain in Special Remarks,
section 9.)
Have you purchased another annuity during the current calendar year?
o Yes o No
Do you or any joint owner currently own an annuity issued by the Insurer?
oYes o No o Optional Consent for Electronic Distribution to my E-mail address:
- -------------------------------------------------
I (we) hereby consent to the electronic distribution of annuity and fund
prospectuses, statements of additional information, shareholder reports, proxy
statements and prospectus supplements. I understand that I may revoke this
consent at any time, and that absent my revocation, this consent will be valid.
o Receipt of a variable annuity and fund prospectus is hereby acknowledged.
If not checked, the appropriate prospectus will be mailed to you.
I/WE UNDERSTAND THAT ANNUITY PAYMENTS OR SURRENDER VALUES, WHEN BASED UPON THE
INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND NOT GUARANTEED AS
TO A FIXED DOLLAR AMOUNT.
A copy of this application signed by the Agent will be the receipt for
the first purchase payment. If the Insurer declines this application, the
Insurer will have no liability except to return the first purchase payment.
I have read the above statements and represent that they are complete
and true to the best of my knowledge and belief. I agree that this application
shall be a part of the annuity issued by the Insurer. By accepting the annuity
issued, I agree to any additions or corrections to this application. The Insurer
will obtain written agreement from me for any change in investment allocations,
benefits, type of plan, or birthdates.
Owner's
signature
Joint Owner's signature
Signed
at
on
Do you, as Agent, have reason to believe the product applied for will replace
existing annuities or insurance? o Yes o No
Licensed Agent
Signature Print name
Licensed I.D. # (for Florida agents only)
LR1597 CW
EX-8
4
FORM OF PARTICIPATION AGREEMENT
PARTICIPATION AGREEMENT
Among
PUTNAM VARIABLE TRUST
PUTNAM MUTUAL FUNDS CORP.
and
[ALLSTATE LIFE INSURANCE COMPANY]
[ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK]
THIS AGREEMENT, made and entered into as of this day of , 1999, among
Allstate Life Insurance Company [of New York] (the "Company"), an [Illinois]
[New York] corporation, on its own behalf and on behalf of each separate account
of the Company set forth on Schedule A hereto, as such Schedule may be amended
from time to time (each such account hereinafter referred to as the "Account"),
PUTNAM VARIABLE TRUST (the "Trust"), a Massachusetts business trust, and PUTNAM
MUTUAL FUNDS CORP. (the "Underwriter"), a Massachusetts corporation.
WHEREAS, the Trust is an open-end diversified management investment company
and is available to act as the investment vehicle for separate accounts
established for variable life insurance policies and variable annuity contracts
(collectively, the "Variable Insurance Products") to be offered by insurance
companies which have entered into Participation Agreements with the Trust and
the Underwriter (the "Participating Insurance Companies"); and
WHEREAS, the beneficial interest in the Trust is divided into several
series of shares, each designated a "Fund" and representing the interest in a
particular managed portfolio of securities and other assets; and
WHEREAS, the Trust has obtained an order from the Securities and Exchange
Commission ("SEC"), dated December 29, 1993 (File No. 812-8612), granting the
variable annuity and variable life insurance separate accounts participating in
the Trust exemptions from the provisions of sections 9(a), 13(a), 15(a) and
15(b) of the Investment Company Act of 1940, as amended (the "1940 Act"), and
Rules 6e-2(b)(15) and 6e-3(T)(b)(15) thereunder, to the extent necessary to
permit shares of the Trust to be sold to and held by variable annuity and
variable life insurance separate accounts of the Participating Insurance
Companies (the "Shared Funding Exemptive Order"); and
WHEREAS, the Trust is registered as an open-end management investment
company under the 1940 Act and the sale of its shares is registered under the
Securities Act of 1933, as amended (the " 1933 Act"); and
WHEREAS, the Company has registered or will register certain variable life
and/or variable annuity contracts under the 1933 Act and any applicable state
securities and insurance law; and
WHEREAS, each Account is a duly organized, validly existing separate
account, established by resolution of the Board of Directors of the Company, on
the date shown for such Account on Schedule A hereto, to set aside and invest
assets attributable to one or more variable insurance contracts (the
"Contracts"); and
WHEREAS, the Company has registered or will register the Account as a unit
investment trust under the 1940 Act; and
WHEREAS, the Underwriter is registered as a broker dealer with the
Securities and Exchange Commission under the Securities Exchange Act of 1934, as
amended (the " 1934 Act"), and is a member in good standing of the National
Association of Securities Dealers, Inc. (the "NASD"); and
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, the Company intends to purchase shares in certain Funds
("Authorized Funds") on behalf of each Account to fund certain of the Contracts
and the Underwriter is authorized to sell such shares to unit investment trusts
such as each Account at net asset value;
NOW, THEREFORE, in consideration of the promises herein, the Company, the
Trust and the Underwriter agree as follows:
ARTICLE 1. Sale of Trust Shares
1.1 The Underwriter agrees, subject to the Trust's rights under Section 1.2
and otherwise under this Agreement, to sell to the Company those Trust shares
representing interests in Authorized Funds which each Account orders, executing
such orders on a daily basis at the net asset value next computed after receipt
by the Trust or its designee of the order for the shares of the Trust. For
purposes of this Section 1. 1, the Company shall be the designee of the Trust
for receipt of such orders from each Account and receipt by such designee shall
constitute receipt by the Trust; provided that the Trust receives notice of such
order by 8:30 a.m. Eastern time on the next following Business Day. "Business
Day" shall mean any day on which the New York Stock Exchange is open for trading
and on which the Trust calculates its net asset value pursuant to the rules of
the SEC. The initial Authorized Funds are set forth in Schedule B, as such
schedule is amended from time to time.
1.2 The Trust agrees to make its shares available indefinitely for purchase
at the applicable net asset value per share by the Company and its Accounts on
those days on which the Trust calculates its net asset value pursuant to rules
of the SEC and the Trust shall use reasonable efforts to calculate such net
asset value on each day on which the New York Stock Exchange is open for
trading. Notwithstanding the foregoing, the Trustees of the Trust (the
"Trustees") may refuse to sell shares of any Fund to the Company or any other
person, or suspend or terminate the offering of shares of any Fund if such
action is required by law or by regulatory authorities having jurisdiction over
the Trust or if the Trustees determine, in the exercise of their fiduciary
responsibilities, that to do so would be in the best interests of shareholders.
1.3 The Trust and the Underwriter agree that shares of the Trust will be
sold only to Participating Insurance Companies and their separate accounts. No
shares of any Fund will be sold to the general public.
1.4 The Trust shall redeem its shares in accordance with the terms of its
then current prospectus. For purposes of this Section 1.4, the Company shall be
the designee of the Trust for receipt of requests for redemption from each
Account and receipt by such designee shall constitute receipt by the Trust;
provided that the Trust receives notice of such request for redemption by 8:30
a.m., Eastern time, on the next following Business Day.
1.5 The Company shall purchase and redeem the shares of Authorized Funds
offered by the then current prospectus of the Trust in accordance with the
provisions of such prospectus.
1.6 The Company shall pay for Trust shares on the next Business Day after
an order to purchase Trust shares is made in accordance with the provisions of
Section 1.1 hereof. Payment shall be in federal funds transmitted by wire.
1.7 Issuance and transfer of the Trust's shares will be by book entry only.
Share certificates will not be issued to the Company or any Account. Shares
ordered from the Trust will be recorded as instructed by the Company to the
Underwriter in an appropriate title for each Account or the appropriate
sub-account of each Account.
1.8 The Underwriter shall furnish prompt notice (by wire or telephone,
followed by written confirmation) to the Company of the declaration of any
income, dividends or capital gain distributions payable on the Trust's shares.
The Company hereby elects to receive all such income dividends and capital gain
distributions as are payable on the Fund shares in additional shares of that
Fund. The Company reserves the right to revoke this election and therefore to
receive all such income dividends and capital gain distributions in cash. The
Underwriter shall notify the Company of the number of shares so issued as
payment of such dividends and distributions.
1.9 The Underwriter shall make the net asset value per share for each Fund
available to the Company on a daily basis as soon as reasonably practical after
the Trust calculates its net asset value per share and each of the Trust and the
Underwriter shall use its best efforts to make such net asset value per share
available by 7:00 p.m. Eastern time.
ARTICLE II. Representations and Warranties
2.1 The Company represents and warrants that
(a) at all times during the term of this Agreement the Contracts are
or will be registered under the 1933 Act; the Contracts will be issued and
sold in compliance in all material respects with all applicable laws and
the sale of the Contracts shall comply in all material respects with state
insurance suitability laws and regulations. The Company further represents
and warrants that it is an insurance company duly organized and in good
standing under applicable law and that it has legally and validly
established each Account prior to any issuance or sale thereof as a
separate account under applicable law and has registered or, prior to any
issuance or sale of the Contracts, will register each Account as a unit
investment trust in accordance with the provisions of the 1940 Act to serve
as a segregated investment account for the Contracts; and
(b) the Contracts are currently treated as endowment, annuity or life
insurance contracts, under applicable provisions of the Internal Revenue
Code of 1986, as amended (the "Code"), and that it will make every effort
to maintain such treatment and that it will notify the Trust and the
Underwriter immediately upon having a reasonable basis for believing that
the Contracts have ceased to be so treated or that they might not be so
treated in the future.
2.2 The Trust represents and warrants that
(a) it is lawfully organized and validly existing under the laws of
the Commonwealth of Massachusetts and that it does and will comply in all
material respects with the 1940 Act.
(b) it is currently qualified as a Regulated Investment Company under
Subchapter M of the Code, and that it will use its best efforts to maintain
such qualification (under Subchapter M or any successor provision) and that
it will notify the Company immediately upon having a reasonable basis for
believing that it has ceased to so qualify or that it might not so qualify
in the future; and
(c) at all times during the term of this Agreement Trust shares sold
pursuant to this Agreement shall be registered under the 1933 Act, duly
authorized for issuance and sold by the Trust to the Company in compliance
with all applicable laws, subject to the terms of Section 2.4 below, and
the Trust is and shall remain registered under the 1940 Act. The Trust
shall amend the Registration Statement for its shares under the 1933 Act
and the 1940 Act from time to time as required in order to effect the
continuous offering of its shares. The Trust shall register and qualify the
shares for sale in accordance with the laws of the various states only if
and to the extent deemed advisable by the Trust or the Underwriter in
connection with their sale by the Trust to the Company and only as required
by Section 2.4;
2.3 The Underwriter represents and warrants that
(a) it is a member in good standing of the NASD;
(b) is registered as a broker-dealer with the SEC;
(c) it will sell and distribute the Trust shares in accordance with
all applicable securities laws, including without limitation, the 1933 Act,
the 1934 Act and the 1940 Act.
2.4 Notwithstanding any other provision of this Agreement, the Trust shall
be responsible for the registration and qualification of its shares and of the
Trust itself under the laws of any jurisdiction only in connection with the
sales of shares directly to the Company through the Underwriter. The Trust shall
not be responsible, and the Company shall take full responsibility, for
determining any jurisdiction in which any qualification or registration of Trust
shares or the Trust by the Trust may be required in connection with the sale of
the Contracts or the indirect interest of any Contract in any shares of the
Trust and advising the Trust thereof at such time and in such manner as is
necessary to permit the Trust to comply.
2.5 The Trust makes no representation as to whether any aspect of its
operations (including, but not limited to, fees and expenses and investment
policies) complies with the insurance laws or regulations of the various states.
ARTICLE III. Prospectuses and Proxy Statements; Voting
3.1 The Trust shall provide such documentation (including a camera-ready
copy of its prospectus) and other assistance as is reasonably necessary in order
for the Company once each year (or more frequently if the prospectus for the
Trust is amended) to have the prospectus for the Contracts and the Trust's
prospectus printed together in one or more documents. The cost of printing
prospectuses for the Contracts and the Trust for delivery in connection with the
offering and sale of new Contracts will be at the Underwriter's expense.
Printing of prospectuses for other purposes will be at the Company's expense.
The Company will bear the expense of mailing prospectuses to new purchasers of
Contracts.
3.2 The Trust's Prospectus shall state that the Statement of Additional
Information for the Trust is available from the Underwriter or its designee (or
in the Trust's discretion, the Prospectus shall state that such Statement is
available from the Trust), and the Underwriter (or the Trust), at its expense,
shall print and provide such Statement free of charge to the Company and free of
charge to any owner of a Contract or prospective owner who requests such
Statement.
3.3 The Trust, at its expense, shall provide the Company with copies of its
reports to shareholders, proxy material and other communications to shareholders
in such quantity as the Company shall reasonably require for distribution to the
Contract owners, such distribution shall be at the expense of the Trust,
provided that the Trust and the Company shall bear their proportional share of
the distribution expenses of any report containing both the Trust's and the
Accounts' financial reports.
3.4 The Company shall vote all Trust shares as required by law and the
Shared Funding Exemptive Order. The Company reserves the right to vote Trust
shares held in any separate account in its own right, to the extent permitted by
law and the Shared Funding Exemptive Order. The Company shall be responsible for
assuring that each of its separate accounts participating in the Trust
calculates voting privileges in a manner consistent with all legal requirements
and the Shared Funding Exemptive Order.
3.5 The Trust will comply with all applicable provisions of the 1940 Act
requiring voting by shareholders, and in particular the Trust will either
provide for annual meetings or comply with Section 16(c) of the 1940 Act
(although the Trust is not one of the trusts described in Section 16(c) of that
Act) as well as with Sections 16(a) and, if and when applicable, 16(b). Further,
the Trust will act in accordance with the SEC's interpretation of the
requirements of Section 16(a) with respect to periodic elections of trustees and
with whatever rules the SEC may promulgate with respect thereto.
ARTICLE IV. Sales Material and Information
4.1 Without limiting the scope or effect of Section 4.2 hereof, the Company
shall furnish, or shall cause to be furnished, to the Underwriter each piece of
sales literature or other promotional material (as defined hereafter) in which
the Trust, its investment adviser or the Underwriter is named at least 10 days
prior to its use. No such material shall be used if the Underwriter objects to
such use within five Business Days after receipt of such material.
4.2 The Company shall not give any information or make any representations
or statements on behalf of the Trust or concerning the Trust in connection with
the sale of the Contracts other than the information or representations
contained in the registration statement or prospectus for the Trust shares, as
such registration statement and prospectus may be amended or supplemented from
time to time, or in annual or semi-annual reports or proxy statements for the
Trust, or in sales literature or other promotional material approved by the
Trust or its designee or by the Underwriter, except with the written permission
of the Trust or the Underwriter or the designee of either or as is required by
law.
4.3 The Underwriter or its designee shall furnish, or shall cause to be
furnished, to the Company or its designee, each piece of sales literature or
other promotional material prepared by the Underwriter in which the Company
and/or its separate account(s) is named at least 10 days prior to its use. No
such material shall be used if the Company or its designee objects to such use
within five Business Days after receipt of such material.
4.4 Neither the Trust nor the Underwriter shall give any information or
make any representations on behalf of the Company concerning the Company, each
Account, or the Contracts other than the information or representations
contained in a registration statement or prospectus for the Contracts, as such
registration statement and prospectus may be amended or supplemented from time
to time, or in published reports for each Account which are in the public domain
or approved by the Company for distribution to Contract owners, or in sales
literature or other promotional material approved by the Company or its
designee, except with the written permission of the Company or as is required by
law.
4.5 For purposes of this Article IV, the phrase "sales literature or other
promotional material" includes, but is not limited to, advertisements (such as
material published, or designed for use in, a newspaper, magazine, or other
periodical, radio, television, telephone or tape recording, videotape display,
signs or billboards, motion pictures, or other public media), sales literature
(i.e. any written communication distributed or made generally available to
customers or the public, including brochures, circulars, research reports,
market letters, form letters, seminar texts, reprints or excerpts of any other
advertisement, sales literature, or published article), educational or training
materials or other communications distributed or made generally available to
some or all registered representatives.
ARTICLE V. Fees and Expenses
5.1 Except as provided in Article VI, the Trust and Underwriter shall pay
no fee or other compensation to the Company under this agreement.
5.2 All expenses incident to performance by the Trust under this Agreement
shall be paid by the Trust. The Trust shall bear the expenses for the cost of
registration and qualification of the Trust's shares, preparation and filing of
the Trust's prospectus and registration statement, proxy materials and reports,
setting the prospectus and shareholder reports in type, setting in type and
printing the proxy materials, distributing reports and proxy statements to
contractholders (provided that if the reports are combined with the Company's
reports the Trust and the Company shall bear such share of the expense as its
proportion of the joint report bears the the whole combined report) and the
preparation of all statements and notices required by any federal or state law,
in each case as may reasonably be necessary for the performance by it of its
obligations under this Agreement.
5.3 The Company shall bear the expenses of printing the Trust's prospectus
(other than those used in connection with the offering and sales of the
Contracts) and of distributing the Trust's prospectuses to new purchasers of
Contracts.
Article VI. Service Fees
6.1 The Underwriter shall pay the Company a service fee (the "Service Fee")
on shares of the Funds held in the Accounts at the annual rates specified in
Schedule B (excluding any accounts for the Company's own corporate retirement
plans), subject to Section 6.2 hereof.
6.2 The Company understands and agrees that all Service Fee payments are
subject to the limitations contained in each Fund's Distribution Plan, which may
be varied or discontinued at any time, and understands and agrees that it will
cease to receive such Service Fee payments with respect to a Fund if the Fund
ceases to pay fees to the Underwriter pursuant to its Distribution Plan.
6.3 (a) The Company's failure to provide the services described in Section
6.4 will render it ineligible to receive Service Fees; and
(b) the Underwriter may, without the consent of the Company, amend
this Article VI to change the amount of Service Fees or the terms on which
Service Fees are paid or to terminate further payments of Service Fees upon
written notice to the Company.
6.4 The Company will provide the following services to the Contract Owners
purchasing Fund shares:
(i) Maintaining regular contact with Contract owners and assisting in
answering inquiries concerning the Funds;
(ii) Assisting in the process of printing and distributing shareholder
reports, prospectuses and other sale and service literature provided by the
Underwriter;
(iii) Assisting the Underwriter and its affiliates in the
establishment and maintenance of Contract owner and shareholder accounts
and records;
(iv) Assisting Contract owners in effecting administrative changes,
such as exchanging shares in or out of the Funds;
(v) Assisting in processing purchase and redemption transactions; and
(vi) Providing any other information or services as the Contract
owners or the Underwriter may reasonably request.
The Company will support the Underwriter's marketing and servicing efforts
by granting reasonable requests for visits to the Company's offices by
representatives of the Underwriter.
6.5 The Company's performance under the service requirement set forth in
this Agreement will be evaluated from time to time by the Underwriter's
monitoring of redemption levels of Fund shares held in any Account and by such
other methods as the Underwriter deems appropriate.
ARTICLE VII. Diversification
7.1 The Trust shall cause each Authorized Fund to maintain a diversified
pool of investments that would, if such Fund were a segregated asset account,
satisfy the diversification provisions of Treas. Reg. ss. 1.817-5(b)(1) or (2).
7.2 The Trust shall annually send the Company a certificate, in the form
mutually agreed, certifying as to its compliance with Section 7.1.
ARTICLE VIII. Potential Conflicts
8.1 The Trustees will monitor the Trust for the existence of any material
irreconcilable conflict between the interests of the contract owners of all
separate accounts investing in the Trust. A material irreconcilable conflict may
arise for a variety of reasons, including: (a) an action by any state insurance
regulatory authority; (b) a change in applicable federal or state insurance,
tax, or securities law or regulations, or a public ruling, private letter
ruling, no-action or interpretative letter, or any similar action by insurance,
tax, or securities regulatory authorities; (c) an administrative or judicial
decision in any relevant proceeding; (d) the manner in which the investments of
any Fund are being managed; (e) a difference in voting instructions given by
variable annuity contract and variable life insurance contract owners; or (f) a
decision by an insurer to disregard the voting instructions of contract owners.
The Trust shall promptly inform the Company if the Trustees determine that a
material irreconcilable conflict exists and the implications thereof.
8.2 The Company will report any potential or existing conflicts of which it
is aware to the Trustees. The Company will assist the Trustees in carrying out
their responsibilities under the Shared Funding Exemptive Order, by providing
the Trustees with all information reasonably necessary for the Trustees to
consider any issues raised. This includes, but is not limited to, an obligation
by the Company to inform the Trustees whenever Contract owner voting
instructions are disregarded.
8.3 If it is determined by a majority of the Trustees, or a majority of the
disinterested Trustees, that a material irreconcilable conflict exists, the
Company shall to the extent reasonably practicable (as determined by a majority
of the disinterested Trustees), take, at the Company's expense, whatever steps
are necessary to remedy or eliminate the material irreconcilable conflict, up to
and including: (1) withdrawing the assets allocable to some or all of the
separate accounts from the Trust or any Fund and reinvesting such assets in a
different investment medium, including (but not limited to) another Fund of the
Trust, or submitting the question whether such segregation should be implemented
to a vote of all affected contract owners and, as appropriate, segregating the
assets of any appropriate group (i.e., annuity contract owners, life insurance
contract owners, or variable contract owners of one or more Participating
Insurance Companies) that votes in favor of such segregation, or offering to the
affected contract owners the option of making such a change; and (2)
establishing a new registered management investment company or managed separate
account.
8.4 If a material irreconcilable conflict arises because of a decision by
the Company to disregard Contract owner voting instructions and that decision
represents a minority position or would preclude a majority vote, the Company
may be required, at the Trust's election, to withdraw the affected Account's
investment in one or more Authorized Funds of the Trust and terminate this
Agreement with respect to such Account; provided, however, that such withdrawal
and termination shall be limited to the extent required by the foregoing
material irreconcilable conflict as determined by a majority of the
disinterested Trustees. No charge or penalty shall be imposed as a result of
such withdrawal. Any such withdrawal and termination must take place within six
(6) months after the Trust gives written notice that this provision is being
implemented, and until the end of that six month period the Underwriter and
Trust shall, to the extent permitted by law and any exemptive relief previously
granted to the Trust, continue to accept and implement orders by the Company for
the purchase (or redemption) of shares of the Trust.
8.5 If a material irreconcilable conflict arises because of a particular
state insurance regulator's decision applicable to the Company to disregard
Contract owner voting instructions and that decision represents a minority
position that would preclude a majority vote, then the Company may be required,
at the Trust's direction, to withdraw the affected Account's investment in one
or more Authorized Funds of the Trust; provided, however, that such withdrawal
and termination shall be limited to the extent required by the foregoing
material irreconcilable conflict as determined by a majority of the
disinterested Trustees. Any such withdrawal and termination must take place
within six (6) months after the Trust gives written notice that this provision
is being implemented, unless a shorter period is required by law, and until the
end of the foregoing six month period (or such shorter period if required by
law), the Underwriter and Trust shall, to the extent permitted by law and any
exemptive relief previously granted to the Trust, continue to accept and
implement orders by the Company for the purchase (and redemption) of shares of
the Trust. No charge or penalty will be imposed as a result of such withdrawal.
8.6 For purposes of Sections 8.3 through 8.6 of this Agreement, a majority
of the disinterested Trustees shall determine whether any proposed action
adequately remedies any material irreconcilable conflict. Neither the Trust nor
the Underwriter shall be required to establish a new funding medium for the
Contracts, nor shall the Company be required to do so, if an offer to do so has
been declined by vote of a majority of Contract owners materially adversely
affected by the material irreconcilable conflict. In the event that the Trustees
determine that any proposed action does not adequately remedy any material
irreconcilable conflict, then the Company will withdraw the Account's investment
in one or more Authorized Funds of the Trust and terminate this Agreement within
six (6) months (or such shorter period as may be required by law or any
exemptive relief previously granted to the Trust) after the Trustees inform the
Company in writing of the foregoing determination; provided, however, that such
withdrawal and termination shall be limited to the extent required by any such
material irreconcilable conflict as determined by a majority of the
disinterested Trustees. No charge or penalty will be imposed as a result of such
withdrawal.
8.7 The responsibility to take remedial action in the event of the
Trustees' determination of a material irreconcilable conflict and to bear the
cost of such remedial action shall be the obligation of the Company, and the
obligation of the Company set forth in this Article VIII shall be carried out
with a view only to the interests of Contract owners.
8.8 If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended, or
Rule 6e-3 is adopted, to provide exemptive relief from any provision of the 1940
Act or the rules promulgated thereunder with respect to mixed or shared funding
(as defined in the Shared Funding Exemptive Order) on terms and conditions
materially different from those contained in the Shared Funding Exemptive Order,
then (a) the Trust and/or the Participating Insurance Companies, as appropriate,
shall take such steps as may be necessary to comply with Rules 6e-2 and 6e-3(T),
as amended, and Rule 6e-3, as adopted, to the extent such rules are applicable;
and (b) Sections 3.4, 3.5, 8.1, 8.2, 8.3, 8.4 and 8.5 of this Agreement shall
continue in effect only to the extent that terms and conditions substantially
identical to such Sections are contained in such Rule(s) as so amended or
adopted.
8.9 The Company has reviewed the Shared Funding Exemption Order and hereby
assumes all obligations referred to therein which are required, including,
without limitation, the obligation to provide reports, material or data as the
Trustees may request as conditions to such Order, to be assumed or undertaken by
the Company.
ARTICLE IX. Indemnification
9.1. Indemnification by the Company
9.1 (a). The Company shall indemnify and hold harmless the Trust and the
Underwriter and each of the Trustees, directors of the Underwriter, officers,
employees or agents of the Trust or the Underwriter and each person, if any, who
controls the Trust or the Underwriter within the meaning of Section 15 of the
1933 Act (collectively, the "Indemnified Parties" for purposes of this Section
9.1) against any and all losses, claims, damages, liabilities (including amounts
paid in settlement with the written consent of the Company which consent may not
be unreasonably withheld) or litigation (including reasonable legal and other
expenses), to which the Indemnified Parties may become subject under any
statute, regulation or at common law or otherwise, insofar as such losses,
claims, damages, liabilities or expenses (or actions in respect thereof) or
settlements are related to the sale or acquisition of the Trust's shares or the
Contracts or the performance by the parties of their obligations hereunder and:
(i) arise out of or are based upon any untrue statements or alleged
untrue statements of any material fact contained in a Registration
Statement, Prospectus or Statement of Additional Information for the
Contracts or contained in the Contracts or sales literature for the
Contracts (or any amendment or supplement to any of the foregoing), or
arise out of or are based upon the omission or the alleged omission to
state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, provided that this agreement to
indemnify shall not apply as to any Indemnified Party if such statement or
omission or such alleged statement or omission was made in reliance upon
and in conformity with information furnished to the Company by or on behalf
of the Trust for use in the Registration Statement, Prospectus or Statement
of Additional Information for the Contracts or in the Contracts or sales
literature (or any amendment or supplement) or otherwise for use in
connection with the sale of the Contracts or Trust shares; or
(ii) arise out of or as a result of written statements or
representations (other than statements or representations contained in the
Trust's Registration Statement or Prospectus, or in sales literature for
Trust shares not supplied by the Company, or persons under its control) or
wrongful conduct of the Company or persons under its control, with respect
to the sale or distribution of the Contracts or Trust shares; or
(iii) arise out of any untrue statement or alleged untrue statement of
a material fact contained in a Registration Statement, Prospectus, or sales
literature of the Trust or any amendment thereof or supplement thereto or
the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not
misleading if such a statement or omission was made in reliance upon
information furnished to the Trust or the Underwriter by or on behalf of
the Company; or
(iv) arise out of or result from any breach of any representation
and/or warranty made by the Company in this Agreement or arise out of or
result from any other breach of this Agreement by the Company, as limited
by and in accordance with the provisions of Sections 9.1(b) and 9.1(c)
hereof.
9.1 (b) The Company shall not be liable under this indemnification
provision with respect to any losses, claims, damages, liabilities or litigation
incurred or assessed against an Indemnified Party to the extent such may arise
from such Indemnified Party's willful misfeasance, bad faith, or gross
negligence in the performance of such Indemnified Party's duties or by reason of
such Indemnified Party's reckless disregard of obligations or duties under this
Agreement or to the Trust, whichever is applicable.
9.1 (c) The Company shall not be liable under this indemnification
provision with respect to any claim made against an Indemnified Party unless
such Indemnified Party shall have notified the Company in writing within a
reasonable time after the summons or other first legal process giving
information of the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have received notice of
such service on any designated agent), on the basis of which the Indemnified
Party should reasonably know of the availability of indemnity hereunder in
respect of such claim but failure to notify the Company of any such claim shall
not relieve the Company from any liability which it may have to the Indemnified
Party against whom such action is brought otherwise than on account of this
indemnification provision. In case any such action is brought against the
Indemnified Parties, the Company shall be entitled to participate, at its own
expense, in the defense of such action. The Company also shall be entitled to
assume the defense thereof, with counsel satisfactory to the Indemnified Party
named in the action. After notice from the Company to such Indemnified Party of
the Company's election to assume the defense thereof the Indemnified Party shall
bear the fees and expenses of any additional counsel retained by it, and the
Company will not be liable to such Indemnified Party under this Agreement for
any legal or other expenses subsequently incurred by such Indemnified Party
independently in connection with the defense thereof other than reasonable costs
of investigation.
9.1 (d) The Underwriter shall promptly notify the Company of the
commencement of any litigation or proceedings against the Trust or the
Underwriter in connection with the issuance or sale of the Trust Shares or the
Contracts or the operation of the Trust.
9. 1 (e) The provisions of this Section 9.1 shall survive any termination
of this Agreement.
9.2 Indemnification by the Underwriter
9.2 (a) The Underwriter shall indemnify and hold harmless the Company and
each person, if any, who controls the Company within the meaning of Section 15
of the 1933 Act and any director, officer, employee or agent of the foregoing
(collectively, the "Indemnified Parties" for purposes of this Section 9.2)
against any and all losses, claims, damages, liabilities (including amounts paid
in settlement with the written consent of the Underwriter which consent may not
be unreasonably withheld) or litigation (including reasonable legal and other
expenses) to which the Indemnified Parties may become subject under any statute,
regulation or at common law, insofar as such losses, claims, damages,
liabilities or expenses (or actions in respect thereof) or settlements are
related to the sale or acquisition of the Trust's shares or the Contracts or the
performance by the parties of their obligations hereunder and:
(i) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in the sales literature of
the Trust prepared by or approved by the Trust or Underwriter (or any
amendment or supplement to any of the foregoing), or arise out of or are
based upon the omission or the alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements
therein not misleading, provided that this agreement to indemnify shall not
apply as to any Indemnified Party if such statement or omission or such
alleged statement or omission was made in reliance upon and in conformity
with information furnished to the Underwriter or Trust by or on behalf of
the Company for use in sales literature (or any amendment or supplement) or
otherwise for use in connection with the sale of the Contracts or Trust
shares; or
(ii) arise out of or as a result of written statements or
representations (other than statements or representations contained in the
Registration Statement, Prospectus, Statement of Additional Information or
sales literature for the Contracts not supplied by the Underwriter or
persons under its control) of the Underwriter or persons under its control,
with respect to the sale or distribution of the Contracts or Trust shares;
or
(iii) arise out of any untrue statement or alleged untrue statement of
a material fact contained in a Registration Statement, Prospectus,
Statement of Additional Information or sales literature covering the
Contracts, or any amendment thereof or supplement thereto, or the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statement or statements therein not
misleading, if such statement or omission was made in reliance upon
information furnished to the Company by or on behalf of the Underwriter; or
(iv) arise out of or result from any breach of any representation
and/or warranty made by the Underwriter in this Agreement or arise out of
or result from any other breach of this Agreement by the Underwriter or
result from a breach of Article VII; as limited by and in accordance with
the provisions of Sections 9.2(b) and 9.2(c) hereof.
9.2 (b) The Underwriter shall not be liable under this indemnification
provision with respect to any losses, claims, damages, liabilities or litigation
incurred or assessed against an Indemnified Party for willful misfeasance, bad
faith, or gross negligence in the performance of such Indemnified Party's duties
or by reason of such Indemnified Party's reckless disregard of obligations and
duties under this Agreement or to each Company or the Account, whichever is
applicable.
9.2 (c) The Underwriter shall not be liable under this indemnification
provision with respect to any claim made against an Indemnified Party unless
such Indemnified Party shall have notified the Underwriter in writing within a
reasonable time after the summons or other first legal process giving
information of the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have received notice of
such service on any designated agent) on the basis of which the Indemnified
Party should reasonably know of the availability of indemnity hereunder in
respect of such claim, but failure to notify the Underwriter of any such claim
shall not relieve the Underwriter from any liability which it may have to the
Indemnified Party against whom such action is brought otherwise than on account
of this indemnification provision. In case any such action is brought against
the Indemnified Parties, the Underwriter will be entitled to participate, at its
own expense, in the defense thereof. The Underwriter also shall be entitled to
assume the defense thereof, with counsel satisfactory to the Indemnified Party
named in the action. After notice from the Underwriter to such Indemnified Party
of the Underwriter's election to assume the defense thereof, the Indemnified
Party shall bear the fees and expenses of any additional counsel retained by it,
and the Underwriter will not be liable to such Indemnified Party under this
Agreement for any legal or other expenses subsequently incurred by such
Indemnified Party independently in connection with the defense thereof other
than reasonable costs of investigation.
9.2 (d) The Company shall promptly notify the Underwriter of the Trust of
the commencement of any litigation or proceedings against it or any of its
officers or directors, in connection with the issuance or sale of the Contracts
or the operation of each Account.
9.2 (e) The provisions of this Section 9.2 shall survive any termination of
this Agreement.
9.3 Indemnification by the Trust
9.3 (a) The Trust shall indemnify and hold harmless the Company, and each
person, if any, who controls the Company within the meaning of Section 15 of the
1933 Act and any director, officer, employee or agent of the foregoing
(collectively, the "Indemnified Parties" for purposes of this Section 9.3)
against any and all losses, claims, damages, liabilities (including amounts paid
in settlement with the written consent of the Trust which consent may not be
unreasonably withheld) or litigation (including reasonable legal and other
expenses) to which the Indemnified Parties may become subject under any statute,
at common law or otherwise, insofar as such losses, claims, damages, liabilities
or expenses (or actions in respect thereof) or settlements are related to the
operations of the Trust and:
(i) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in a Registration
Statement, Prospectus and Statement of Additional Information of the Trust
(or any amendment or supplement to any of the foregoing), or arise out of
or are based upon the omission or the alleged omission to state therein a
material fact required to be stated therein or necessary to make the
statements therein not misleading, provided that this agreement to
indemnify shall not apply as to any Indemnified Party if such statement or
omission or such alleged statement or omission was made in reliance upon
and in conformity with information furnished to the Underwriter or Trust by
or on behalf of the Company for use in the Registration Statement,
Prospectus, or Statement of Additional Information for the Trust (or any
amendment or supplement) or otherwise for use in connection with the sale
of the Contracts or Trust shares; or
(ii) arise out of or result from any material breach of any
representation and/or warranty made by the Trust in this Agreement or arise
out of or result from any other material breach of this Agreement by the
Trust (including Section 7.1 hereof), as limited by and in accordance with
the provisions of Sections 9.3(b) and 9.3(c) hereof.
9.3 (b) The Trust shall not be liable under the indemnification provision
with respect to any losses, claims, damages, liabilities or litigation incurred
or assessed against an Indemnified Party for willful misfeasance, bad faith, or
gross negligence or by reason of such Indemnified Party's reckless disregard of
obligations and duties under this Agreement or to the Company, the Trust, the
Underwriter or each Account, whichever is applicable.
9.3 (c) The Trust shall not be liable under this indemnification provision
with respect to any claim made against any Indemnified Party unless such
Indemnified Party shall have notified the Trust in writing within a reasonable
time after the summons or other first legal process giving information of the
nature of the claim shall have been served upon such Indemnified Party (or after
such Indemnified Party shall have received notice of such service on any
designated agent) on the basis of which the Indemnified Party should reasonably
know of the availability of indemnity hereunder in respect of such claim, but
failure to notify the Trust of any such claim shall not relieve the Trust from
any liability which it may have to the Indemnified Party against whom such
action is brought otherwise than on account of this indemnification provision.
In case any such action is brought against the Indemnified Parties, the Trust
will be entitled to participate, at its own expense, in the defense thereof. The
Trust also shall be entitled to assume the defense thereof, with counsel
reasonably satisfactory to the Indemnified Party named in the action. After
notice from the Trust to such Indemnified Party of the Trust's election to
assume the defense thereof, the Indemnified Party shall bear the fees and
expenses of any additional counsel retained by it, and the Trust will not be
liable to such Indemnified Party under this Agreement for any legal or other
expenses subsequently incurred by such Indemnified Party independently in
connection with the defense thereof other than reasonable costs of
investigation.
9.3 (d) The Company agrees promptly to notify the Trust of the commencement
of any litigation or proceedings against it or any of its officers or directors,
in connection with this Agreement, the issuance or sale of the Contracts or the
sale or acquisition of shares of the Trust.
9.3 (e) The provisions of this Section 9.3 shall survive any termination of
this Agreement.
ARTICLE X. Applicable Law
10.1 This Agreement shall be construed and the provisions hereof
interpreted under and in accordance with the laws of the Commonwealth of
Massachusetts.
10.2 This Agreement shall be subject to the provisions of the 1933, 1934
and 1940 Acts, and the rules and regulations and rulings thereunder, including
such exemptions from those statutes, rules and regulations as the SEC may grant
(including, but not limited to, the Shared Funding Exemptive Order) and the
terms hereof shall be interpreted and construed in accordance therewith.
ARTICLE XI. Termination
11.1.This Agreement shall terminate:
(a) upon the second anniversary of the termination of the Joint
Venture Agreement, dated March __, 1999, between Putnam Investments, Inc.
and the Allstate Corporation.
(b) at the option of the Trust upon 180 days prior written notice,
upon a decision by the Trustees of the Trust that termination of the
Agreement is in the best interests of shareholders of the Trust; or
(c) with respect to any Account, upon requisite vote of the Contract
owners having an interest in such Account (or any subaccount) to substitute
the shares of another investment company for the corresponding Fund shares
of the Trust in accordance with the terms of the Contracts for which those
Fund shares had been selected to serve as the underlying investment media.
The Company will give 90 days' prior written notice to the Trust of the
date of any proposed vote to replace the Trust's shares; or
(d) with respect to any Authorized Fund, upon 60 days advance written
notice from the Underwriter to the Company, upon a decision by the
Underwriter to cease offering shares of the Fund for sale.
11.2. It is understood and agreed that the right of any party hereto to
terminate this Agreement pursuant to Section 11.1 (a) may be exercised for any
reason or for no reason.
11.3 No termination of this Agreement shall be effective unless and until
the party terminating this Agreement gives prior written notice to all other
parties to this Agreement of its intent to terminate, which notice shall set
forth the basis for such termination. Such prior written notice shall be given
in advance of the effective date of termination as required by this Article XI.
11.4 Notwithstanding any termination of this Agreement, subject to Section
1.2 of this Agreement, the Trust and the Underwriter shall, at the option of the
Company, continue to make available additional shares of the Trust pursuant to
the terms and conditions of this Agreement, for all Contracts in effect on the
effective date of termination of this Agreement (hereinafter referred to as
"Existing Contracts"). Specifically, without limitation, subject to Section 1.2
of this Agreement, the owners of the Existing Contracts shall be permitted to
reallocate investments in the Trust, redeem investments in the Trust and/or
invest in the Trust upon the making of additional purchase payments under the
Existing Contracts. The parties agree that this Section 11.4 shall not apply to
any termination under Article VIII and the effect of such Article VIII
termination shall be governed by Article VIII of this Agreement.
11.5 The Company shall not redeem Trust shares attributable to the
Contracts (as opposed to Trust shares attributable to the Company's assets held
in either Account) except (i) as necessary to implement Contract owner initiated
transactions, or (ii) as required by state and/or federal laws or regulations or
judicial or other legal precedent of general application (hereinafter referred
to as a "Legally required Redemption"). Upon request, the Company will promptly
furnish to the Trust and the Underwriter an opinion of counsel for the Company,
reasonably satisfactory to the Trust, to the effect that any redemption pursuant
to clause (ii) above is a Legally Required Redemption. Furthermore, except in
cases where permitted under the terms of the Contracts, subject to Section 1.2
of this Agreement, the Company shall not prevent Contract owners from allocating
payments to an Authorized Fund that was otherwise available under the Contracts
without first giving the Trust or the Underwriter 90 days notice of its
intention to do.
ARTICLE XII. Notices
Any notice shall be sufficiently given when sent by registered or certified
mail to the other party at the address of such party set forth below or at such
other address as such party may from time to time specify in writing to the
other party.
If to the Trust:
One Post Office Square
Boston, MA 02109
Attention: John R. Verani
If to the Underwriter:
One Post Office Square
Boston, MA 02109
Attention: General Counsel
If to the Company:
[Address]
ARTICLE XIII. Miscellaneous
13.1 A copy of the Agreement and Declaration of Trust of the Trust is on
file with the Secretary of State of the Commonwealth of Massachusetts, and
notice is hereby given that this instrument is executed on behalf of the
Trustees of the Trust as Trustees and not individually and that the obligations
of or arising out of this instrument, including without limitation Article VII,
are not binding upon any of the Trustees or shareholders individually but
binding only upon the assets and property of the Trust.
13.2 The captions in this Agreement are included for convenience of
reference only and in no way define or delineate any of the provisions hereof or
otherwise affect their construction or effect.
13.3 This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together shall constitute one and the same
instrument.
13.4 If any provision of this Agreement shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Agreement shall
not be affected thereby.
13.5 Each party hereto shall cooperate with each other party and all
appropriate governmental authorities (including without limitation the SEC, the
NASD and state insurance regulators) and shall pertmit such authorities
reasonable access to its books and records in connection with any investigation
or inquiry relating to this Agreement or the transactions contemplated hereby.
13.6 The rights, remedies and obligations contained in this Agreement are
cumulative and are in addition to any and all rights, remedies and obligations,
at law or in equity, which the parties hereto are entitled to under state and
federal laws.
13.7 Notwithstanding any other provision of this Agreement, the obligations
of the Trust and the Underwriter are several and, without limiting in any way
the generality of the foregoing, neither such party shall have any liability for
any action or failure to act by the other party, or any person acting on such
other party's behalf.
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to
be executed in its name and on its behalf by its duly authorized representative
and its seal to be hereunder affixed hereto as of the date specified below.
[ALLSTATE LIFE INSURANCE COMPANY]
[ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK]
By its authorized officer,
Name:
Title:
PUTNAM VARIABLE TRUST
By its authorized officer,
Name:
Title:
PUTNAM MUTUAL FUNDS CORP.
By its authorized officer,
Name:
Title:
EX-9
5
OPINION OF GENERAL COUNSEL
ALLSTATE LIFE INSURANCE COMPANY
LAW AND REGULATION DEPARTMENT
3100 Sanders Road, J5B
Northbrook, Illinois 60062
Direct Dial Number 847-402-2400
Facsimile 847-402-4371
Michael J. Velotta
Vice President, Secretary
and General Counsel
April 14, 1999
TO: ALLSTATE LIFE INSURANCE COMPANY
NORTHBROOK, ILLINOIS 60062
FROM: MICHAEL J. VELOTTA
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
RE: FORM N-4 REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF 1940
FILE NO. 333-72017, 811-09227
With reference to the Registration Statement on Form N-4 filed by
Allstate Life Insurance Company (the "Company"), as depositor, and Allstate Life
Insurance Company Separate Account A, as registrant, with the Securities and
Exchange Commission covering the Flexible Premium Deferred Variable Annuity
Contracts, I have examined such documents and such law as I have considered
necessary and appropriate, and on the basis of such examination, it is my
opinion that:
1. The Company is duly organized and existing under the laws of the State
of Illinois and has been duly authorized to do business by the Director
of Insurance of the State of Illinois.
2. The securities registered by the above Registration Statement when
issued will be valid, legal and binding obligations of the Company.
I hereby consent to the filing of this opinion as an exhibit to the
above referenced Registration Statement and to the use of my name under the
caption "Legal Matters" in the Prospectus constituting a part of the
Registration Statement.
Sincerely,
/s/ MICHAEL J. VELOTTA
- -------------------------
Michael J. Velotta
Vice President, Secretary and
General Counsel
EX-10
6
CONSENT OF ACCOUNTANTS
INDEPENDENT AUDITORS' CONSENT
We consent to the use in this Pre-Effective Amendment to Registration Statement
No. 333-72017 of Allstate Life Insurance Company Separate Account A of Allstate
Life Insurance Company on Form N-4 of our Report dated April 2, 1999 relating to
the combined statutory basis financial statements of Allstate Life Insurance
Company, appearing in the Statement of Additional Information (which is
incorporated by reference in the prospectus of Allstate Life Insurance Company
Separate Account A of Allstate Life Insurance Company), which is part of such
Registration Statement, and to the reference to us under the heading "Experts"
in such Statement of Additional Information.
/s/ DELOITTE & TOUCHE LLP
Chicago, Illinois
April 12, 1999
EX-10
7
CONSENT OF ATTORNEYS
Freedman, Levy, Kroll & Simonds
CONSENT OF
FREEDMAN, LEVY, KROLL & SIMONDS
We hereby consent to the reference to our firm under the caption "Legal
Matters" in the prospectus contained in Pre-Effective Amendment No. 1 to the
Form N-4 Registration Statement of Allstate Life Insurance Company Separate
Account A (File No. 333-72017).
FREEDMAN, LEVY, KROLL & SIMONDS
Washington, D.C.
April 15, 1999
EX-13
8
PERFORMANCE DATA CALCULATIONS
Asia Pacific Growth
31-Dec-97 NO. YEARS 1.000
TO
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 9.174065 109.00293
FEE 31-Dec-98 0.666666667 8.558202 0.07790
RESULTING VALUE 31-Dec-98 8.558202 108.92504 932.2025
1.000
FORMULA: 1000*(1+T)= 932.2025 - (0.85 * 1000 * 0.07)
= 872.7025
T = -12.73%
R = -12.73%
Diversified Income
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 12.836265 77.90428
FEE 31-Dec-98 0.666666667 12.473322 0.05345
RESULTING VALUE 31-Dec-98 12.473322 77.85083 971.0585
1.000
FORMULA: 1000*(1+T)= 971.0585 - (0.85 * 1000 * 0.07)
= 911.5585
T = -8.84%
R = -8.84%
George Putnam Fund of Boston
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 10.281314 0.06484
RESULTING VALUE 31-Dec-98 10.281314 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = #VALUE! R = #VALUE!
Global Asset Allocation
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 27.008267 37.02570
FEE 31-Dec-98 0.666666667 30.263658 0.02203
RESULTING VALUE 31-Dec-98 30.263658 37.00367 1119.8665
1.000
FORMULA: 1000*(1+T)= 1119.8665 - (0.85 * 1000 * 0.07)
= 1060.3665
T = 6.04%
R = 6.04%
Global Growth
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 19.484651 51.32245
FEE 31-Dec-98 0.666666667 24.946249 0.02672
RESULTING VALUE 31-Dec-98 24.946249 51.29572 1279.6359
1.000
FORMULA: 1000*(1+T)= 1279.6359 - (0.85 * 1000 * 0.07)
= 1220.1359
T = 22.01%
R = 22.01%
Growth & Income
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 40.020485 24.98720
FEE 31-Dec-98 0.666666667 45.564183 0.01463
RESULTING VALUE 31-Dec-98 45.564183 24.97257 1137.8548
1.000
FORMULA: 1000*(1+T)= 1137.8548 - (0.85 * 1000 * 0.07)
= 1078.3548
T = 7.84%
R = 7.84%
Health Sciences
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 10.847642 0.06146
RESULTING VALUE 31-Dec-98 10.847642 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = #VALUE! R = #VALUE!
High Yield
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 25.549516 39.13968
FEE 31-Dec-98 0.666666667 23.740619 0.02808
RESULTING VALUE 31-Dec-98 23.740619 39.11160 928.5337
1.000
FORMULA: 1000*(1+T)= 928.5337 - (0.85 * 1000 * 0.07)
= 869.0337
T = -13.10%
R = -13.10%
Income
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 19.934285 50.16483
FEE 31-Dec-98 0.666666667 21.298777 0.03130
RESULTING VALUE 31-Dec-98 21.298777 50.13353 1067.7828
1.000
FORMULA: 1000*(1+T)= 1067.7828 - (0.85 * 1000 * 0.07)
= 1008.2828
T = 0.83%
R = 0.83%
International Growth
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 11.451099 87.32786
FEE 31-Dec-98 0.666666667 13.397132 0.04976
RESULTING VALUE 31-Dec-98 13.397132 87.27810 1169.2762
1.000
FORMULA: 1000*(1+T)= 1169.2762 - (0.85 * 1000 * 0.07)
= 1109.7762
T = 10.98%
R = 10.98%
International Growth & Income
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 11.777400 84.90838
FEE 31-Dec-98 0.666666667 12.933302 0.05155
RESULTING VALUE 31-Dec-98 12.933302 84.85684 1097.4791
1.000
FORMULA: 1000*(1+T)= 1097.4791 - (0.85 * 1000 * 0.07)
= 1037.9791
T = 3.80%
R = 3.80%
International New Opportunities
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 9.850778 101.51482
FEE 31-Dec-98 0.666666667 11.227470 0.05938
RESULTING VALUE 31-Dec-98 11.227470 101.45545 1139.0880
1.000
FORMULA: 1000*(1+T)= 1139.0880 - (0.85 * 1000 * 0.07)
= 1079.5880
T = 7.96%
R = 7.96%
Investors
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 11.555901 0.05769
RESULTING VALUE 31-Dec-98 11.555901 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Money Market
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 14.778584 67.66548
FEE 31-Dec-98 0.666666667 15.341108 0.04346
RESULTING VALUE 31-Dec-98 15.341108 67.62203 1037.3968
1.000
FORMULA: 1000*(1+T)= 1037.3968 - (0.85 * 1000 * 0.07)
= 977.8968
T = -2.21%
R = -2.21%
New Opportunities
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 20.220498 49.45477
FEE 31-Dec-98 0.666666667 24.804963 0.02688
RESULTING VALUE 31-Dec-98 24.804963 49.42789 1226.0570
1.000
FORMULA: 1000*(1+T)= 1226.0570 - (0.85 * 1000 * 0.07)
= 1166.5570
T = 16.66%
R = 16.66%
New Value
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 11.596570 86.23239
FEE 31-Dec-98 0.666666667 12.150915 0.05487
RESULTING VALUE 31-Dec-98 12.150915 86.17753 1047.1358
1.000
FORMULA: 1000*(1+T)= 1047.1358 - (0.85 * 1000 * 0.07)
= 987.6358
T = -1.24%
R = -1.24%
OTC & Emerging Growth
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 9.997496 0.06668
RESULTING VALUE 31-Dec-98 9.997496 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Research
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 11.880661 0.05611
RESULTING VALUE 31-Dec-98 11.880661 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Small Cap Value
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 #VALUE! #VALUE!
RESULTING VALUE 31-Dec-98 #VALUE! #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Utilities Growth & Income
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 20.122586 49.69540
FEE 31-Dec-98 0.666666667 22.823874 0.02921
RESULTING VALUE 31-Dec-98 22.823874 49.66619 1133.5749
1.000
FORMULA: 1000*(1+T)= 1133.5749 - (0.85 * 1000 * 0.07)
= 1074.0749
T = 7.41%
R = 7.41%
Vista
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 12.149776 82.30604
FEE 31-Dec-98 0.666666667 14.337943 0.04650
RESULTING VALUE 31-Dec-98 14.337943 82.25955 1179.4327
1.000
FORMULA: 1000*(1+T)= 1179.4327 - (0.85 * 1000 * 0.07)
= 1119.9327
T = 11.99%
R = 11.99%
Voyager
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 45.168373 22.13939
FEE 31-Dec-98 0.666666667 55.394816 0.01203
RESULTING VALUE 31-Dec-98 55.394816 22.12735 1225.7405
1.000
FORMULA: 1000*(1+T)= 1225.7405 - (0.85 * 1000 * 0.07)
= 1166.2405
T = 16.62%
R = 16.62%
Asia Pacific Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 10.134165 0.06578
FEE 31-Dec-96 0.666666667 10.901991 0.06115
FEE 31-Dec-97 0.666666667 9.174065 0.07267
FEE 31-Dec-98 0.666666667 8.558202 0.07790
RESULTING VALUE 31-Dec-98 8.558202 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Diversified Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 10.187882 98.15583
FEE 31-Dec-94 0.666666667 9.620231 0.06930
FEE 31-Dec-95 0.666666667 11.300260 0.05900
FEE 31-Dec-96 0.666666667 12.123884 0.05499
FEE 31-Dec-97 0.666666667 12.836265 0.05194
FEE 31-Dec-98 0.666666667 12.473322 0.05345
RESULTING VALUE 31-Dec-98 12.473322 97.86716 1220.7286
5.000
FORMULA: 1000*(1+T)= 1220.7286 - (0.85 * 1000 * 0.03)
= 1195.228638
T = 3.63%
R = 19.52%
George Putnam Fund of Boston
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 10.281314 0.06484
RESULTING VALUE 31-Dec-98 10.281314 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Global Asset Allocation
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 16.982753 58.88327
FEE 31-Dec-94 0.666666667 16.327198 0.04083
FEE 31-Dec-95 0.666666667 20.077029 0.03321
FEE 31-Dec-96 0.666666667 22.888848 0.02913
FEE 31-Dec-97 0.666666667 27.008267 0.02468
FEE 31-Dec-98 0.666666667 30.263658 0.02203
RESULTING VALUE 31-Dec-98 30.263658 58.73339 1777.4873
5.000
FORMULA: 1000*(1+T)= 1777.4873 - (0.85 * 1000 * 0.03)
= 1751.987301
T = 11.87%
R = 75.20%
Global Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 13.427935 74.47161
FEE 31-Dec-94 0.666666667 13.112743 0.05084
FEE 31-Dec-95 0.666666667 14.955796 0.04458
FEE 31-Dec-96 0.666666667 17.283736 0.03857
FEE 31-Dec-97 0.666666667 19.484651 0.03421
FEE 31-Dec-98 0.666666667 24.946249 0.02672
RESULTING VALUE 31-Dec-98 24.946249 74.27669 1852.9247
5.000
FORMULA: 1000*(1+T)= 1852.9247 - (0.85 * 1000 * 0.03)
= 1827.42472
T = 12.82%
R = 82.74%
Growth & Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 20.389114 49.04578
FEE 31-Dec-94 0.666666667 20.174179 0.03305
FEE 31-Dec-95 0.666666667 27.195388 0.02451
FEE 31-Dec-96 0.666666667 32.692714 0.02039
FEE 31-Dec-97 0.666666667 40.020485 0.01666
FEE 31-Dec-98 0.666666667 45.564183 0.01463
RESULTING VALUE 31-Dec-98 45.564183 48.93654 2229.7534
5.000
FORMULA: 1000*(1+T)= 2229.7534 - (0.85 * 1000 * 0.03)
= 2204.253423
T = 17.13%
R = 120.43%
Health Sciences
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 10.847642 0.06146
RESULTING VALUE 31-Dec-98 10.847642 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
High Yield
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 17.878028 55.93458
FEE 31-Dec-94 0.666666667 17.463016 0.03818
FEE 31-Dec-95 0.666666667 20.373465 0.03272
FEE 31-Dec-96 0.666666667 22.661703 0.02942
FEE 31-Dec-97 0.666666667 25.549516 0.02609
FEE 31-Dec-98 0.666666667 23.740619 0.02808
RESULTING VALUE 31-Dec-98 23.740619 55.78009 1324.2539
5.000
FORMULA: 1000*(1+T)= 1324.2539 - (0.85 * 1000 * 0.03)
= 1298.753862
T = 5.37%
R = 29.88%
Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 16.272143 61.45472
FEE 31-Dec-94 0.666666667 15.516934 0.04296
FEE 31-Dec-95 0.666666667 18.427958 0.03618
FEE 31-Dec-96 0.666666667 18.609250 0.03582
FEE 31-Dec-97 0.666666667 19.934285 0.03344
FEE 31-Dec-98 0.666666667 21.298777 0.03130
RESULTING VALUE 31-Dec-98 21.298777 61.27501 1305.0828
5.000
FORMULA: 1000*(1+T)= 1305.0828 - (0.85 * 1000 * 0.03)
= 1279.582803
T = 5.05%
R = 27.96%
International Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 11.451099 0.05822
FEE 31-Dec-98 0.666666667 13.397132 0.04976
RESULTING VALUE 31-Dec-98 13.397132 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
International Growth & Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 11.777400 0.05661
FEE 31-Dec-98 0.666666667 12.933302 0.05155
RESULTING VALUE 31-Dec-98 12.933302 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
International New Opportunities
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 9.850778 0.06768
FEE 31-Dec-98 0.666666667 11.227470 0.05938
RESULTING VALUE 31-Dec-98 11.227470 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Investors
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 11.555901 0.05769
RESULTING VALUE 31-Dec-98 11.555901 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Money Market
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 12.913807 77.43650
FEE 31-Dec-94 0.666666667 13.220318 0.05043
FEE 31-Dec-95 0.666666667 13.747448 0.04849
FEE 31-Dec-96 0.666666667 14.244474 0.04680
FEE 31-Dec-97 0.666666667 14.778584 0.04511
FEE 31-Dec-98 0.666666667 15.341108 0.04346
RESULTING VALUE 31-Dec-98 15.341108 77.20221 1184.3674
5.000
FORMULA: 1000*(1+T)= 1184.3674 - (0.85 * 1000 * 0.03)
= 1158.867429
T = 2.99%
R = 15.89%
New Opportunities
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 10.719084 0.06219
FEE 31-Dec-95 0.666666667 15.312046 0.04354
FEE 31-Dec-96 0.666666667 16.633671 0.04008
FEE 31-Dec-97 0.666666667 20.220498 0.03297
FEE 31-Dec-98 0.666666667 24.804963 0.02688
RESULTING VALUE 31-Dec-98 24.804963 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
New Value
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 11.596570 0.05749
FEE 31-Dec-98 0.666666667 12.150915 0.05487
RESULTING VALUE 31-Dec-98 12.150915 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
OTC & Emerging Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 9.997496 0.06668
RESULTING VALUE 31-Dec-98 9.997496 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Research
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 11.880661 0.05611
RESULTING VALUE 31-Dec-98 11.880661 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Small Cap Value
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 #VALUE! #VALUE!
RESULTING VALUE 31-Dec-98 #VALUE! #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Utilities Growth & Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 11.867867 84.26114
FEE 31-Dec-94 0.666666667 10.880451 0.06127
FEE 31-Dec-95 0.666666667 14.062698 0.04741
FEE 31-Dec-96 0.666666667 16.056782 0.04152
FEE 31-Dec-97 0.666666667 20.122586 0.03313
FEE 31-Dec-98 0.666666667 22.823874 0.02921
RESULTING VALUE 31-Dec-98 22.823874 84.04860 1918.3147
5.000
FORMULA: 1000*(1+T)= 1918.3147 - (0.85 * 1000 * 0.03)
= 1892.814708
T = 13.61%
R = 89.28%
Vista
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 12.149776 0.05487
FEE 31-Dec-98 0.666666667 14.337943 0.04650
RESULTING VALUE 31-Dec-98 14.337943 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Voyager
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 23.522867 42.51182
FEE 31-Dec-94 0.666666667 23.434834 0.02845
FEE 31-Dec-95 0.666666667 32.505621 0.02051
FEE 31-Dec-96 0.666666667 36.207937 0.01841
FEE 31-Dec-97 0.666666667 45.168373 0.01476
FEE 31-Dec-98 0.666666667 55.394816 0.01203
RESULTING VALUE 31-Dec-98 55.394816 42.41766 2349.7185
5.000
FORMULA: 1000*(1+T)= 2349.7185 - (0.85 * 1000 * 0.03)
= 2324.218539
T = 18.37%
R = 132.42%
Asia Pacific Growth
01-May-95
TO NO. YEARS 3.669
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-95 1000.00 10.000000 100.00000
1 FEE 01-May-96 0.666666667 10.724973 0.06216 0.07
2 FEE 01-May-97 0.666666667 10.639980 0.06266 0.07
3 FEE 01-May-98 0.666666667 8.982818 0.07422 0.06
4 31-Dec-98 0.666666667 8.558202 0.07790 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 8.558202 99.72307 853.4502
3.669
FORMULA: 1000*(1+T)= 853.4502
= 810.950171
T = -5.55%
R = -18.90%
Diversified Income
15-Sep-93
TO NO. YEARS 5.292
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 15-Sep-93 1000.00 10.000000 100.00000
1 FEE 15-Sep-94 0.666666667 9.749286 0.06838 0.07
2 FEE 15-Sep-95 0.666666667 10.791455 0.06178 0.07
3 FEE 15-Sep-96 0.666666667 11.613068 0.05741 0.06
4 15-Sep-97 0.666666667 12.604443 0.05289 0.05
5 15-Sep-98 0.666666667 12.268278 0.05434 0.04
6 31-Dec-98 0.666666667 12.473322 0.05345 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 12.473322 99.65176 1242.9884
5.292
FORMULA: 1000*(1+T)= 1242.9884
= 1217.488435
T = 3.79%
R = 21.75%
George Putnam Fund of Boston
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 0.666666667 10.281314 0.06484 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 10.281314 99.93516 1027.4647
0.671
FORMULA: 1000*(1+T)= 1027.4647
= 967.9647333
T = -4.74%
R = -3.20%
Global Asset Allocation
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.544055 94.84017
FEE 30-Dec-89 0.666666667 12.069190 0.05524 0.07
FEE 30-Dec-90 0.666666667 11.890352 0.05607 0.07
FEE 30-Dec-91 0.666666667 13.934991 0.04784 0.06
FEE 30-Dec-92 0.666666667 14.672932 0.04544 0.05
FEE 30-Dec-93 0.666666667 16.995293 0.03923 0.04
FEE 30-Dec-94 0.666666667 16.327828 0.04083 0.03
FEE 30-Dec-95 0.666666667 20.078578 0.03320 0.02
FEE 30-Dec-96 0.666666667 22.995887 0.02899 0
FEE 30-Dec-97 0.666666667 26.951719 0.02474 0
FEE 30-Dec-98 0.666666667 30.200816 0.02207 0
0
RESULTING VALUE 30-Dec-98 30.200816 94.44653 2852.3623 0
0
10.000 0
FORMULA: 1000*(1+T)= 2852.3623 - (0.85 * 1000 * 0) 0
= 2852.362318
T = 11.05%
R = 185.24%
Global Growth
01-May-90
TO NO. YEARS 8.668
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-90 1000.00 10.000000 100.00000
1 FEE 01-May-91 0.666666667 10.080839 0.06613 0.07
2 FEE 01-May-92 0.666666667 10.501850 0.06348 0.07
3 FEE 01-May-93 0.666666667 11.266332 0.05917 0.06
4 01-May-94 0.666666667 13.335461 0.04999 0.05
5 01-May-95 0.666666667 13.157776 0.05067 0.04
6 01-May-96 0.666666667 16.020396 0.04161 0.03
7 01-May-97 0.666666667 18.017272 0.03700 0.02
8 01-May-98 0.666666667 22.923856 0.02908 0
9 31-Dec-98 0.666666667 24.946249 0.02672 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 24.946249 99.57613 2484.0510
8.668
FORMULA: 1000*(1+T)= 2484.0510
= 2484.051021
T = 11.07%
R = 148.41%
Growth & Income
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 11.847343 84.40711
FEE 30-Dec-89 0.666666667 14.171134 0.04704 0.07
FEE 30-Dec-90 0.666666667 14.226553 0.04686 0.07
FEE 30-Dec-91 0.666666667 16.646541 0.04005 0.06
FEE 30-Dec-92 0.666666667 18.074577 0.03688 0.05
FEE 30-Dec-93 0.666666667 20.425097 0.03264 0.04
FEE 30-Dec-94 0.666666667 20.174957 0.03304 0.03
FEE 30-Dec-95 0.666666667 27.197486 0.02451 0.02
FEE 30-Dec-96 0.666666667 33.173217 0.02010 0
FEE 30-Dec-97 0.666666667 39.951365 0.01669 0
FEE 30-Dec-98 0.666666667 45.740098 0.01458 0
0
RESULTING VALUE 30-Dec-98 45.740098 84.09472 3846.5007 0
0
10.000 0
FORMULA: 1000*(1+T)= 3846.5007 - (0.85 * 1000 * 0) 0
= 3846.500714
T = 14.42%
R = 284.65%
Health Sciences
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 0.666666667 10.847642 0.06146 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 10.847642 99.93854 1084.0975
0.671
FORMULA: 1000*(1+T)= 1084.0975
= 1024.597533
T = 3.69%
R = 2.46%
High Yield
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.623053 94.13490
FEE 30-Dec-89 0.666666667 10.197478 0.06538 0.07
FEE 30-Dec-90 0.666666667 9.075016 0.07346 0.07
FEE 30-Dec-91 0.666666667 12.913446 0.05163 0.06
FEE 30-Dec-92 0.666666667 15.164722 0.04396 0.05
FEE 30-Dec-93 0.666666667 17.878718 0.03729 0.04
FEE 30-Dec-94 0.666666667 17.463689 0.03817 0.03
FEE 30-Dec-95 0.666666667 20.375037 0.03272 0.02
FEE 30-Dec-96 0.666666667 22.627601 0.02946 0
FEE 30-Dec-97 0.666666667 25.531741 0.02611 0
FEE 30-Dec-98 0.666666667 23.761730 0.02806 0
0
RESULTING VALUE 30-Dec-98 23.761730 93.70866 2226.6799 0
0
10.000 0
FORMULA: 1000*(1+T)= 2226.6799 - (0.85 * 1000 * 0) 0
= 2226.679865
T = 8.33%
R = 122.67%
Income
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.149128 98.53063
FEE 30-Dec-89 0.666666667 11.414891 0.05840 0.07
FEE 30-Dec-90 0.666666667 12.079730 0.05519 0.07
FEE 30-Dec-91 0.666666667 13.948230 0.04780 0.06
FEE 30-Dec-92 0.666666667 14.830777 0.04495 0.05
FEE 30-Dec-93 0.666666667 16.284798 0.04094 0.04
FEE 30-Dec-94 0.666666667 15.517532 0.04296 0.03
FEE 30-Dec-95 0.666666667 18.429381 0.03617 0.02
FEE 30-Dec-96 0.666666667 18.722673 0.03561 0
FEE 30-Dec-97 0.666666667 19.920198 0.03347 0
FEE 30-Dec-98 0.666666667 21.283997 0.03132 0
0
RESULTING VALUE 30-Dec-98 21.283997 98.10382 2088.0415 0
0
10.000 0
FORMULA: 1000*(1+T)= 2088.0415 - (0.85 * 1000 * 0) 0
= 2088.041451
T = 7.64%
R = 108.80%
International Growth
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.666666667 11.510326 0.05792 0.07
2 FEE 31-Dec-98 0.666666667 13.397132 0.04976 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 13.397132 99.89232 1338.2706
1.993
FORMULA: 1000*(1+T)= 1338.2706
= 1278.770585
T = 13.13%
R = 27.88%
International Growth & Income
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.666666667 11.827564 0.05637 0.07
2 FEE 31-Dec-98 0.666666667 12.933302 0.05155 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 12.933302 99.89209 1291.9345
1.993
FORMULA: 1000*(1+T)= 1291.9345
= 1232.434541
T = 11.05%
R = 23.24%
International New Opportunities
27-Jan-97
TO NO. YEARS 1.925
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 27-Jan-97 1000.00 10.040315 99.59847
1 FEE 27-Jan-98 0.666666667 9.682434 0.06885 0.07
2 FEE 31-Dec-98 0.666666667 11.227470 0.05938 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 11.227470 99.47024 1116.7991
1.925
FORMULA: 1000*(1+T)= 1116.7991
= 1057.299106
T = 2.94%
R = 5.73%
Investors
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 0.666666667 11.555901 0.05769 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 11.555901 99.94231 1154.9234
0.671
FORMULA: 1000*(1+T)= 1154.9234
= 1095.423433
T = 14.55%
R = 9.54%
Money Market
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.452470 95.67117
FEE 30-Dec-89 0.666666667 11.221552 0.05941 0.07
FEE 30-Dec-90 0.666666667 11.872995 0.05615 0.07
FEE 30-Dec-91 0.666666667 12.423451 0.05366 0.06
FEE 30-Dec-92 0.666666667 12.710384 0.05245 0.05
FEE 30-Dec-93 0.666666667 12.883009 0.05175 0.04
FEE 30-Dec-94 0.666666667 13.164837 0.05064 0.03
FEE 30-Dec-95 0.666666667 13.685985 0.04871 0.02
FEE 30-Dec-96 0.666666667 14.185720 0.04700 0
FEE 30-Dec-97 0.666666667 14.713631 0.04531 0
FEE 30-Dec-98 0.666666667 15.281182 0.04363 0
0
RESULTING VALUE 30-Dec-98 15.281182 95.16246 1454.1949 0
0
10.000 0
FORMULA: 1000*(1+T)= 1454.1949 - (0.85 * 1000 * 0) 0
= 1454.19493
T = 3.82%
R = 45.42%
New Opportunities
02-May-94
TO NO. YEARS 4.665
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.666666667 11.480807 0.05807 0.07
2 FEE 02-May-96 0.666666667 17.540903 0.03801 0.07
3 FEE 02-May-97 0.666666667 16.286259 0.04093 0.06
4 02-May-98 0.666666667 23.438888 0.02844 0.05
5 31-Dec-98 0.666666667 24.804963 0.02688 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 24.804963 99.80767 2475.7256
4.665
FORMULA: 1000*(1+T)= 2475.7256
= 2441.725618
T = 21.09%
R = 144.17%
New Value
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.666666667 11.635120 0.05730 0.07
2 FEE 31-Dec-98 0.666666667 12.150915 0.05487 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 12.150915 99.88784 1213.7286
1.993
FORMULA: 1000*(1+T)= 1213.7286
= 1154.228613
T = 7.46%
R = 15.42%
OTC & Emerging Growth
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 0.666666667 9.997496 0.06668 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 9.997496 99.93332 999.0829
0.671
FORMULA: 1000*(1+T)= 999.0829
= 939.5829333
T = -8.87%
R = -6.04%
Research
29-Sep-98
TO NO. YEARS 0.255
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 0.666666667 11.880661 0.05611 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 11.880661 99.94389 1187.3994
0.255
FORMULA: 1000*(1+T)= 1187.3994
= 1127.899433
T = 60.43%
R = 12.79%
Small Cap Value
30-Apr-99
TO NO. YEARS -0.329
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-99 1000.00 #VALUE! #VALUE!
1 FEE 31-Dec-98 0.666666667 #VALUE! #VALUE! 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 #VALUE! #VALUE! #VALUE!
-0.329
FORMULA: 1000*(1+T)= #VALUE!
= #VALUE!
T = #VALUE! R = #VALUE!
Utilities Growth & Income
01-May-92
TO NO. YEARS 6.667
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-92 1000.00 10.000000 100.00000
1 FEE 01-May-93 0.666666667 11.341129 0.05878 0.07
2 FEE 01-May-94 0.666666667 11.210057 0.05947 0.07
3 FEE 01-May-95 0.666666667 11.715598 0.05690 0.06
4 01-May-96 0.666666667 14.280724 0.04668 0.05
5 01-May-97 0.666666667 16.034403 0.04158 0.04
6 01-May-98 0.666666667 20.878099 0.03193 0.03
7 31-Dec-98 0.666666667 22.823874 0.02921 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 22.823874 99.67544 2274.9797
6.667
FORMULA: 1000*(1+T)= 2274.9797
= 2257.979718
T = 12.99%
R = 125.80%
Vista
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.666666667 12.069945 0.05523 0.07
2 FEE 31-Dec-98 0.666666667 14.337943 0.04650 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 14.337943 99.89827 1432.3357
1.993
FORMULA: 1000*(1+T)= 1432.3357
= 1372.835697
T = 17.23%
R = 37.28%
Voyager
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.168857 98.33947
FEE 30-Dec-89 0.666666667 13.273971 0.05022 0.07
FEE 30-Dec-90 0.666666667 12.711053 0.05245 0.07
FEE 30-Dec-91 0.666666667 18.223095 0.03658 0.06
FEE 30-Dec-92 0.666666667 19.931256 0.03345 0.05
FEE 30-Dec-93 0.666666667 23.439795 0.02844 0.04
FEE 30-Dec-94 0.666666667 23.435738 0.02845 0.03
FEE 30-Dec-95 0.666666667 32.508129 0.02051 0.02
FEE 30-Dec-96 0.666666667 36.331776 0.01835 0
FEE 30-Dec-97 0.666666667 44.777117 0.01489 0
FEE 30-Dec-98 0.666666667 54.489741 0.01223 0
0
RESULTING VALUE 30-Dec-98 54.489741 98.04390 5342.3866 0
0
10.000 0
FORMULA: 1000*(1+T)= 5342.3866 - (0.85 * 1000 * 0) 0
= 5342.38657
T = 18.24%
R = 434.24%
Non-Standardized Calculations
Dates:
Current: 12/31/98
3 Months Ago: 09/30/98
End of Last Year: 12/31/97
One Yr Ago: 12/31/97
Two Yrs Ago: 12/31/96
Three Yrs Ago: 12/29/95
Five Yrs Ago: 12/31/93
Ten Yrs Ago: 12/30/88
Inception Inception Ten Yr Five Yr Three Two One Yr YTD
Fund Date AUV AUV AUV AUV AUV AUV AUV
Asia Pacific Growth 05/01/95 10 N/A N/A 10.134947 10.901991 9.174065 9.174065
Diversified Income 09/15/93 10 N/A 10.187882 11.301132 12.123884 12.836265 12.836265
George Putnam of Boston 04/30/98 10 N/A N/A N/A N/A N/A N/A
Global Asset Allocation 02/01/88 10 10.544055 16.982753 20.078578 22.888848 27.008267 27.008267
Global Growth 05/01/90 10 N/A 13.427935 14.95695 17.283736 19.484651 19.484651
Growth & Income 02/01/88 10 11.847343 20.389114 27.197486 32.692714 40.020485 40.020485
Health Sciences 04/30/98 10 N/A N/A N/A N/A N/A N/A
High Yield 02/01/88 10 10.623053 17.878028 20.375037 22.661703 25.549516 25.549516
Income 02/01/88 10 10.149128 16.272143 18.429381 18.60925 19.934285 19.934285
International Growth 01/02/97 10 N/A N/A N/A N/A 11.451099 11.451099
International Growth & Income 01/02/97 10 N/A N/A N/A N/A 11.7774 11.7774
International New Opportunities01/27/97 10.040315 N/A N/A N/A N/A 9.850778 9.850778
Investors 04/30/98 10 N/A N/A N/A N/A N/A 10
Money Market 02/01/88 10 10.45247 12.913807 13.685985 14.244474 14.778584 14.778584
New Opportunities 05/02/94 10 N/A N/A 15.313227 16.633671 20.220498 20.220498
New Value 01/02/97 10 N/A N/A N/A N/A 11.59657 11.59657
OTC & Emerging Growth 04/30/98 10 N/A N/A N/A N/A N/A 10
Research Fund 09/29/98 10 N/A N/A N/A N/A N/A 10
Small Cap Value 04/30/99 #VALUE! N/A N/A N/A N/A N/A 10
Utilities Growth & Income 05/01/92 10 N/A 11.867867 14.063783 16.056782 20.122586 20.122586
Vista 01/02/97 10 N/A N/A N/A N/A 12.149776 12.149776
Voyager 02/01/88 10 10.168857 23.522867 32.508129 36.207937 45.168373 45.168373
3 Months Today's Inception Ten Years Five Years
Fund AUV AUV Total Average Total Average Total Average
Asia Pacific Growth 7.2661 8.558202 -14.42% -4.15% N/A N/A N/A N/A
Diversified Incomne 12.429262 12.473322 24.73% 4.26% N/A N/A 22.43% 4.13%
George Putnam of Boston 9.430139 10.281314 2.81% 4.22% N/A N/A N/A N/A
Global Asset Allocation 26.498548 30.263658 202.64% 10.67% 187.02% 11.12% 78.20% 12.25%
Global Growth 20.459495 24.946249 149.46% 11.11% N/A N/A 85.78% 13.19%
Growth & Income 39.206093 45.564183 355.64% 14.90% 284.59% 14.42% 123.47% 17.45%
Health Sciences 9.400285 10.847642 8.48% 12.89% N/A N/A N/A N/A
High Yield 23.754924 23.740619 137.41% 8.24% 123.48% 8.37% 32.79% 5.84%
Income 21.22632 21.298777 112.99% 7.17% 109.86% 7.69% 30.89% 5.53%
International Growth 11.010957 13.397132 33.97% 15.79% N/A N/A N/A N/A
International Growth & Income 11.135574 12.933302 29.33% 13.76% N/A N/A N/A N/A
International New Opportunities 9.457803 11.22747 11.82% 5.97% N/A N/A N/A N/A
Investors 9.310786 11.555901 15.56% 24.04% N/A N/A N/A N/A
Money Market 15.206652 15.341108 53.41% 4.00% 46.77% 3.91% 18.80% 3.50%
New Opportunities 19.255048 24.804963 148.05% 21.48% N/A N/A N/A N/A
New Value 10.477245 12.150915 21.51% 10.26% N/A N/A N/A N/A
OTC & Emerging Growth 7.828533 9.997496 -0.03% -0.04% N/A N/A N/A N/A
Research Fund 9.999655 11.880661 18.81% 96.67% N/A N/A N/A N/A
Small Cap Value N/A N/A #VALUE! #VALUE! N/A N/A N/A N/A
Utilities Growth & Income 21.134082 22.823874 128.24% 13.17% N/A N/A 92.32% 13.97%
Vista 11.629708 14.337943 43.38% 19.80% N/A N/A N/A N/A
Voyager 43.730732 55.394816 453.95% 16.97% 444.75% 18.47% 135.49% 18.68%
Three Years Two Years One Year YTD Three Months
Fund Total Average Total Average
Asia Pacific Growth -15.56% -5.48% -21.50% -11.40% -6.71% -6.71% 17.78%
Diversified Incomne 10.37% 3.34% 2.88% 1.43% -2.83% -2.83% 0.35%
George Putnam of Boston N/A N/A N/A N/A N/A N/A 9.03%
Global Asset Allocation 50.73% 14.66% 32.22% 14.99% 12.05% 12.05% 14.21%
Global Growth 66.79% 18.59% 44.33% 20.14% 28.03% 28.03% 21.93%
Growth & Income 67.53% 18.77% 39.37% 18.06% 13.85% 13.85% 16.22%
Health Sciences N/A N/A N/A N/A N/A N/A 15.40%
High Yield 16.52% 5.23% 4.76% 2.35% -7.08% -7.08% -0.06%
Income 15.57% 4.94% 14.45% 6.98% 6.84% 6.84% 0.34%
International Growth N/A N/A N/A N/A 16.99% 16.99% 21.67%
International Growth & Income N/A N/A N/A N/A 9.81% 9.81% 16.14%
International New Opportunities N/A N/A N/A N/A 13.98% 13.98% 18.71%
Investors N/A N/A N/A N/A N/A 15.56% 24.11%
Money Market 12.09% 3.88% 7.70% 3.78% 3.81% 3.81% 0.88%
New Opportunities 61.98% 17.44% 49.13% 22.12% 22.67% 22.67% 28.82%
New Value N/A N/A N/A N/A 4.78% 4.78% 15.97%
OTC & Emerging Growth N/A N/A N/A N/A N/A -0.03% 27.71%
Research Fund N/A N/A N/A N/A N/A 18.81% 18.81%
Small Cap Value N/A N/A N/A N/A N/A -100.00% N/A
Utilities Growth & Income 62.29% 17.52% 42.14% 19.22% 13.42% 13.42% 8.00%
Vista N/A N/A N/A N/A 18.01% 18.01% 23.29%
Voyager 70.40% 19.44% 52.99% 23.69% 22.64% 22.64% 26.67%
Standardized Returns - Adjusted Historical
Ten Year or
Fund Name One Year Five Year Since Inception Inception Dates
- ----------------------------------------------------------------------- -------------
Asia Pacific Growth -12.87% N/A -5.70% 5/1/95
Diversified Income -8.99% 3.47% 3.63% 9/15/93
George Putnam of Boston #VALUE! N/A -4.89% 4/30/98
Global Asset Allocation 5.87% 11.70% 10.88% 2/1/88
Global Growth 21.82% 12.64% 10.90% 5/1/90
Growth & Income 7.66% 16.95% 14.25% 2/1/88
Health Sciences #VALUE! N/A 3.52% 4/30/98
High Yield -13.24% 5.20% 8.17% 2/1/88
Income 0.67% 4.89% 7.48% 2/1/88
International Growth 10.80% N/A 12.95% 1/2/97
International Growth & Income 3.63% N/A 10.88% 1/2/97
International New Opportunities 7.79% N/A 2.77% 1/27/97
Investors N/A N/A 14.37% 4/30/98
Money Market -2.37% 2.83% 3.66% 2/1/88
New Opportunities 16.66% N/A 21.08% 5/2/94
New Value -1.40% N/A 7.29% 1/2/97
OTC & Emerging Growth N/A N/A -9.02% 4/30/98
Research Fund N/A N/A 60.17% 9/29/98
Small Cap Value N/A N/A #VALUE! 4/30/99
Utilities Growth & Income 7.24% 13.44% 12.82% 5/1/92
Vista 11.81% N/A 17.05% 1/2/97
Voyager 16.44% 18.19% 18.06% 2/1/88
Non-Standardized Returns
Ten Year or
Fund Name One Year Five Year Since Inception Inception Dates
- ----------------------------------------------------------------------- -------------
Asia Pacific Growth -6.85% N/A -4.30% 5/1/95
Diversified Income -2.97% 3.97% 4.10% 9/15/93
George Putnam of Boston N/A N/A 4.06% 4/30/98
Global Asset Allocation 11.88% 12.08% 10.95% 2/1/88
Global Growth 27.84% 13.02% 10.95% 5/1/90
Growth & Income 13.68% 17.27% 14.25% 2/1/88
Health Sciences N/A N/A 12.72% 4/30/98
High Yield -7.22% 5.68% 8.21% 2/1/88
Income 6.68% 5.37% 7.53% 2/1/88
International Growth 16.82% N/A 15.62% 1/2/97
International Growth & Income 9.65% N/A 13.59% 1/2/97
International New Opportunities 13.80% N/A 5.81% 1/27/97
Investors N/A N/A 23.85% 4/30/98
Money Market 3.65% 3.35% 3.75% 2/1/88
New Opportunities 22.67% N/A 21.48% 5/2/94
New Value 4.62% N/A 10.09% 1/2/97
OTC & Emerging Growth N/A N/A -0.19% 4/30/98
Research Fund N/A N/A 96.37% 9/29/98
Small Cap Value N/A N/A #VALUE! 4/30/99
Utilities Growth & Income 13.25% 13.80% 13.00% 5/1/92
Vista 17.83% N/A 19.62% 1/2/97
Voyager 22.45% 18.50% 18.29% 2/1/88
Asia Pacific Growth
31-Dec-97 NO. YEARS 1.000
TO
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 9.136906 109.44624
FEE 31-Dec-98 0.666666667 8.510585 0.07833
RESULTING VALUE 31-Dec-98 8.510585 109.36791 930.7849
1.000
FORMULA: 1000*(1+T)= 930.7849 - (0.85 * 1000 * 0.07)
= 871.2849
T = -12.87%
R = -12.87%
Diversified Income
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 12.752774 78.41431
FEE 31-Dec-98 0.666666667 12.373381 0.05388
RESULTING VALUE 31-Dec-98 12.373381 78.36043 969.5835
1.000
FORMULA: 1000*(1+T)= 969.5835 - (0.85 * 1000 * 0.07)
= 910.0835
T = -8.99%
R = -8.99%
George Putnam Fund of Boston
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 10.270826 0.06491
RESULTING VALUE 31-Dec-98 10.270826 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = #VALUE! R = #VALUE!
Global Asset Allocation
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 26.604463 37.58768
FEE 31-Dec-98 0.666666667 29.765928 0.02240
RESULTING VALUE 31-Dec-98 29.765928 37.56528 1118.1655
1.000
FORMULA: 1000*(1+T)= 1118.1655 - (0.85 * 1000 * 0.07)
= 1058.6655
T = 5.87%
R = 5.87%
Global Growth
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 19.258899 51.92405
FEE 31-Dec-98 0.666666667 24.619795 0.02708
RESULTING VALUE 31-Dec-98 24.619795 51.89697 1277.6928
1.000
FORMULA: 1000*(1+T)= 1277.6928 - (0.85 * 1000 * 0.07)
= 1218.1928
T = 21.82%
R = 21.82%
Growth & Income
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 39.422372 25.36631
FEE 31-Dec-98 0.666666667 44.815083 0.01488
RESULTING VALUE 31-Dec-98 44.815083 25.35143 1136.1265
1.000
FORMULA: 1000*(1+T)= 1136.1265 - (0.85 * 1000 * 0.07)
= 1076.6265
T = 7.66%
R = 7.66%
Health Sciences
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 10.836586 0.06152
RESULTING VALUE 31-Dec-98 10.836586 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = #VALUE! R = #VALUE!
High Yield
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 25.167673 39.73351
FEE 31-Dec-98 0.666666667 23.350282 0.02855
RESULTING VALUE 31-Dec-98 23.350282 39.70496 927.1220
1.000
FORMULA: 1000*(1+T)= 927.1220 - (0.85 * 1000 * 0.07)
= 867.6220
T = -13.24%
R = -13.24%
Income
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 19.636218 50.92630
FEE 31-Dec-98 0.666666667 20.948455 0.03182
RESULTING VALUE 31-Dec-98 20.948455 50.89448 1066.1607
1.000
FORMULA: 1000*(1+T)= 1066.1607 - (0.85 * 1000 * 0.07)
= 1006.6607
T = 0.67%
R = 0.67%
International Growth
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 11.433803 87.45996
FEE 31-Dec-98 0.666666667 13.356593 0.04991
RESULTING VALUE 31-Dec-98 13.356593 87.41005 1167.5005
1.000
FORMULA: 1000*(1+T)= 1167.5005 - (0.85 * 1000 * 0.07)
= 1108.0005
T = 10.80%
R = 10.80%
International Growth & Income
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 11.759623 85.03674
FEE 31-Dec-98 0.666666667 12.894178 0.05170
RESULTING VALUE 31-Dec-98 12.894178 84.98504 1095.8122
1.000
FORMULA: 1000*(1+T)= 1095.8122 - (0.85 * 1000 * 0.07)
= 1036.3122
T = 3.63%
R = 3.63%
International New Opportunities
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 9.835885 101.66853
FEE 31-Dec-98 0.666666667 11.193477 0.05956
RESULTING VALUE 31-Dec-98 11.193477 101.60897 1137.3577
1.000
FORMULA: 1000*(1+T)= 1137.3577 - (0.85 * 1000 * 0.07)
= 1077.8577
T = 7.79%
R = 7.79%
Investors
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 11.544125 0.05775
RESULTING VALUE 31-Dec-98 11.544125 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Money Market
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 14.557569 68.69279
FEE 31-Dec-98 0.666666667 15.088729 0.04418
RESULTING VALUE 31-Dec-98 15.088729 68.64860 1035.8202
1.000
FORMULA: 1000*(1+T)= 1035.8202 - (0.85 * 1000 * 0.07)
= 976.3202
T = -2.37%
R = -2.37%
New Opportunities
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 20.220498 49.45477
FEE 31-Dec-98 0.666666667 24.804963 0.02688
RESULTING VALUE 31-Dec-98 24.804963 49.42789 1226.0570
1.000
FORMULA: 1000*(1+T)= 1226.0570 - (0.85 * 1000 * 0.07)
= 1166.5570
T = 16.66%
R = 16.66%
New Value
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 11.579062 86.36278
FEE 31-Dec-98 0.666666667 12.114148 0.05503
RESULTING VALUE 31-Dec-98 12.114148 86.30775 1045.5448
1.000
FORMULA: 1000*(1+T)= 1045.5448 - (0.85 * 1000 * 0.07)
= 986.0448
T = -1.40%
R = -1.40%
OTC & Emerging Growth
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 9.987309 0.06675
RESULTING VALUE 31-Dec-98 9.987309 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Research
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 11.876070 0.05614
RESULTING VALUE 31-Dec-98 11.876070 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Small Cap Value
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 #VALUE! #VALUE!
RESULTING VALUE 31-Dec-98 #VALUE! #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Utilities Growth & Income
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 19.950486 50.12409
FEE 31-Dec-98 0.666666667 22.594308 0.02951
RESULTING VALUE 31-Dec-98 22.594308 50.09459 1131.8525
1.000
FORMULA: 1000*(1+T)= 1131.8525 - (0.85 * 1000 * 0.07)
= 1072.3525
T = 7.24%
R = 7.24%
Vista
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 12.131407 82.43067
FEE 31-Dec-98 0.666666667 14.294543 0.04664
RESULTING VALUE 31-Dec-98 14.294543 82.38403 1177.6421
1.000
FORMULA: 1000*(1+T)= 1177.6421 - (0.85 * 1000 * 0.07)
= 1118.1421
T = 11.81%
R = 11.81%
Voyager
12/31/97 NO. YEARS 1.000
TO
12/31/98 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 44.493032 22.47543
FEE 31-Dec-98 0.666666667 54.483740 0.01224
RESULTING VALUE 31-Dec-98 54.483740 22.46319 1223.8788
1.000
FORMULA: 1000*(1+T)= 1223.8788 - (0.85 * 1000 * 0.07)
= 1164.3788
T = 16.44%
R = 16.44%
Asia Pacific Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 10.123873 0.06585
FEE 31-Dec-96 0.666666667 10.874374 0.06131
FEE 31-Dec-97 0.666666667 9.136906 0.07296
FEE 31-Dec-98 0.666666667 8.510585 0.07833
RESULTING VALUE 31-Dec-98 8.510585 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Diversified Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 10.183338 98.19963
FEE 31-Dec-94 0.666666667 9.601336 0.06943
FEE 31-Dec-95 0.666666667 11.260952 0.05920
FEE 31-Dec-96 0.666666667 12.063360 0.05526
FEE 31-Dec-97 0.666666667 12.752774 0.05228
FEE 31-Dec-98 0.666666667 12.373381 0.05388
RESULTING VALUE 31-Dec-98 12.373381 97.90957 1211.4724
5.000
FORMULA: 1000*(1+T)= 1211.4724 - (0.85 * 1000 * 0.03)
= 1185.97244
T = 3.47%
R = 18.60%
George Putnam Fund of Boston
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 10.270826 0.06491
RESULTING VALUE 31-Dec-98 10.270826 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Global Asset Allocation
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 16.830835 59.41476
FEE 31-Dec-94 0.666666667 16.156557 0.04126
FEE 31-Dec-95 0.666666667 19.837044 0.03361
FEE 31-Dec-96 0.666666667 22.580912 0.02952
FEE 31-Dec-97 0.666666667 26.604463 0.02506
FEE 31-Dec-98 0.666666667 29.765928 0.02240
RESULTING VALUE 31-Dec-98 29.765928 59.26291 1764.0155
5.000
FORMULA: 1000*(1+T)= 1764.0155 - (0.85 * 1000 * 0.03)
= 1738.515504
T = 11.70%
R = 73.85%
Global Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 13.353271 74.88802
FEE 31-Dec-94 0.666666667 13.020031 0.05120
FEE 31-Dec-95 0.666666667 14.827511 0.04496
FEE 31-Dec-96 0.666666667 17.109456 0.03896
FEE 31-Dec-97 0.666666667 19.258899 0.03462
FEE 31-Dec-98 0.666666667 24.619795 0.02708
RESULTING VALUE 31-Dec-98 24.619795 74.69119 1838.8819
5.000
FORMULA: 1000*(1+T)= 1838.8819 - (0.85 * 1000 * 0.03)
= 1813.381888
T = 12.64%
R = 81.34%
Growth & Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 20.206809 49.48827
FEE 31-Dec-94 0.666666667 19.963433 0.03339
FEE 31-Dec-95 0.666666667 26.870467 0.02481
FEE 31-Dec-96 0.666666667 32.253072 0.02067
FEE 31-Dec-97 0.666666667 39.422372 0.01691
FEE 31-Dec-98 0.666666667 44.815083 0.01488
RESULTING VALUE 31-Dec-98 44.815083 49.37761 2212.8616
5.000
FORMULA: 1000*(1+T)= 2212.8616 - (0.85 * 1000 * 0.03)
= 2187.361582
T = 16.95%
R = 118.74%
Health Sciences
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 10.836586 0.06152
RESULTING VALUE 31-Dec-98 10.836586 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
High Yield
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 17.718210 56.43911
FEE 31-Dec-94 0.666666667 17.280616 0.03858
FEE 31-Dec-95 0.666666667 20.130067 0.03312
FEE 31-Dec-96 0.666666667 22.356960 0.02982
FEE 31-Dec-97 0.666666667 25.167673 0.02649
FEE 31-Dec-98 0.666666667 23.350282 0.02855
RESULTING VALUE 31-Dec-98 23.350282 56.28255 1314.2135
5.000
FORMULA: 1000*(1+T)= 1314.2135 - (0.85 * 1000 * 0.03)
= 1288.71351
T = 5.20%
R = 28.87%
Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 16.126577 62.00944
FEE 31-Dec-94 0.666666667 15.354748 0.04342
FEE 31-Dec-95 0.666666667 18.207671 0.03661
FEE 31-Dec-96 0.666666667 18.358868 0.03631
FEE 31-Dec-97 0.666666667 19.636218 0.03395
FEE 31-Dec-98 0.666666667 20.948455 0.03182
RESULTING VALUE 31-Dec-98 20.948455 61.82732 1295.1868
5.000
FORMULA: 1000*(1+T)= 1295.1868 - (0.85 * 1000 * 0.03)
= 1269.686813
T = 4.89%
R = 26.97%
International Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 11.433803 0.05831
FEE 31-Dec-98 0.666666667 13.356593 0.04991
RESULTING VALUE 31-Dec-98 13.356593 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
International Growth & Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 11.759623 0.05669
FEE 31-Dec-98 0.666666667 12.894178 0.05170
RESULTING VALUE 31-Dec-98 12.894178 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
International New Opportunities
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 9.835885 0.06778
FEE 31-Dec-98 0.666666667 11.193477 0.05956
RESULTING VALUE 31-Dec-98 11.193477 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Investors
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 11.544125 0.05775
RESULTING VALUE 31-Dec-98 11.544125 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Money Market
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 12.798258 78.13563
FEE 31-Dec-94 0.666666667 13.082135 0.05096
FEE 31-Dec-95 0.666666667 13.583083 0.04908
FEE 31-Dec-96 0.666666667 14.052794 0.04744
FEE 31-Dec-97 0.666666667 14.557569 0.04580
FEE 31-Dec-98 0.666666667 15.088729 0.04418
RESULTING VALUE 31-Dec-98 15.088729 77.89817 1175.3844
5.000
FORMULA: 1000*(1+T)= 1175.3844 - (0.85 * 1000 * 0.03)
= 1149.884446
T = 2.83%
R = 14.99%
New Opportunities
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 10.144057 0.06572
FEE 31-Dec-95 0.666666667 10.091433 0.06606
FEE 31-Dec-96 0.666666667 16.633671 0.04008
FEE 31-Dec-97 0.666666667 20.220498 0.03297
FEE 31-Dec-98 0.666666667 24.804963 0.02688
RESULTING VALUE 31-Dec-98 24.804963 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
New Value
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 11.579062 0.05758
FEE 31-Dec-98 0.666666667 12.114148 0.05503
RESULTING VALUE 31-Dec-98 12.114148 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
OTC & Emerging Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 9.987309 0.06675
RESULTING VALUE 31-Dec-98 9.987309 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Research
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 11.876070 0.05614
RESULTING VALUE 31-Dec-98 11.876070 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Small Cap Value
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-98 0.666666667 #VALUE! #VALUE!
RESULTING VALUE 31-Dec-98 #VALUE! #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Utilities Growth & Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 11.838099 84.47302
FEE 31-Dec-94 0.666666667 10.836666 0.06152
FEE 31-Dec-95 0.666666667 13.984842 0.04767
FEE 31-Dec-96 0.666666667 15.943646 0.04181
FEE 31-Dec-97 0.666666667 19.950486 0.03342
FEE 31-Dec-98 0.666666667 22.594308 0.02951
RESULTING VALUE 31-Dec-98 22.594308 84.25910 1903.7760
5.000
FORMULA: 1000*(1+T)= 1903.7760 - (0.85 * 1000 * 0.03)
= 1878.275969
T = 13.44%
R = 87.83%
Vista
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-95 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-96 0.666666667 #VALUE! #VALUE!
FEE 31-Dec-97 0.666666667 12.131407 0.05495
FEE 31-Dec-98 0.666666667 14.294543 0.04664
RESULTING VALUE 31-Dec-98 14.294543 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Voyager
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 23.312425 42.89558
FEE 31-Dec-94 0.666666667 23.189908 0.02875
FEE 31-Dec-95 0.666666667 32.117100 0.02076
FEE 31-Dec-96 0.666666667 35.720804 0.01866
FEE 31-Dec-97 0.666666667 44.493032 0.01498
FEE 31-Dec-98 0.666666667 54.483740 0.01224
RESULTING VALUE 31-Dec-98 54.483740 42.80019 2331.9145
5.000
FORMULA: 1000*(1+T)= 2331.9145 - (0.85 * 1000 * 0.03)
= 2306.414528
T = 18.19%
R = 130.64%
Asia Pacific Growth
01-May-95
TO NO. YEARS 3.669
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-95 1000.00 10.000000 100.00000
1 FEE 01-May-96 0.666666667 10.708647 0.06225 0.07
2 FEE 01-May-97 0.666666667 10.607677 0.06285 0.07
3 FEE 01-May-98 0.666666667 8.941925 0.07456 0.06
4 31-Dec-98 0.666666667 8.510585 0.07833 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 8.510585 99.72201 848.6926
3.669
FORMULA: 1000*(1+T)= 848.6926
= 806.1926294
T = -5.70%
R = -19.38%
Diversified Income
15-Sep-93
TO NO. YEARS 5.292
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 15-Sep-93 1000.00 10.000000 100.00000
1 FEE 15-Sep-94 0.666666667 9.734473 0.06849 0.07
2 FEE 15-Sep-95 0.666666667 10.758708 0.06197 0.07
3 FEE 15-Sep-96 0.666666667 11.560322 0.05767 0.06
4 15-Sep-97 0.666666667 12.528045 0.05321 0.05
5 15-Sep-98 0.666666667 12.175398 0.05476 0.04
6 31-Dec-98 0.666666667 12.373381 0.05388 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 12.373381 99.65003 1233.0078
5.292
FORMULA: 1000*(1+T)= 1233.0078
= 1207.507822
T = 3.63%
R = 20.75%
George Putnam Fund of Boston
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 0.666666667 10.270826 0.06491 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 10.270826 99.93509 1026.4159
0.671
FORMULA: 1000*(1+T)= 1026.4159
= 966.9159333
T = -4.89%
R = -3.31%
Global Asset Allocation
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.529490 94.97136
FEE 30-Dec-89 0.666666667 12.034256 0.05540 0.07
FEE 30-Dec-90 0.666666667 11.837957 0.05632 0.07
FEE 30-Dec-91 0.666666667 13.852408 0.04813 0.06
FEE 30-Dec-92 0.666666667 14.563827 0.04578 0.05
FEE 30-Dec-93 0.666666667 16.843333 0.03958 0.04
FEE 30-Dec-94 0.666666667 16.157248 0.04126 0.03
FEE 30-Dec-95 0.666666667 19.838739 0.03360 0.02
FEE 30-Dec-96 0.666666667 22.686606 0.02939 0
FEE 30-Dec-97 0.666666667 26.548870 0.02511 0
FEE 30-Dec-98 0.666666667 29.704242 0.02244 0
0
RESULTING VALUE 30-Dec-98 29.704242 94.57436 2809.2597 0
0
10.000 0
FORMULA: 1000*(1+T)= 2809.2597 - (0.85 * 1000 * 0) 0
= 2809.259671
T = 10.88%
R = 180.93%
Global Growth
01-May-90
TO NO. YEARS 8.668
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-90 1000.00 10.000000 100.00000
1 FEE 01-May-91 0.666666667 10.065531 0.06623 0.07
2 FEE 01-May-92 0.666666667 10.469945 0.06367 0.07
3 FEE 01-May-93 0.666666667 11.215111 0.05944 0.06
4 01-May-94 0.666666667 13.254682 0.05030 0.05
5 01-May-95 0.666666667 13.058160 0.05105 0.04
6 01-May-96 0.666666667 15.874932 0.04199 0.03
7 01-May-97 0.666666667 17.826613 0.03740 0.02
8 01-May-98 0.666666667 22.646856 0.02944 0
9 31-Dec-98 0.666666667 24.619795 0.02708 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 24.619795 99.57339 2451.4765
8.668
FORMULA: 1000*(1+T)= 2451.4765
= 2451.476472
T = 10.90%
R = 145.15%
Growth & Income
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 11.830989 84.52379
FEE 30-Dec-89 0.666666667 14.130157 0.04718 0.07
FEE 30-Dec-90 0.666666667 14.163948 0.04707 0.07
FEE 30-Dec-91 0.666666667 16.547987 0.04029 0.06
FEE 30-Dec-92 0.666666667 17.940279 0.03716 0.05
FEE 30-Dec-93 0.666666667 20.242555 0.03293 0.04
FEE 30-Dec-94 0.666666667 19.964286 0.03339 0.03
FEE 30-Dec-95 0.666666667 26.872764 0.02481 0.02
FEE 30-Dec-96 0.666666667 32.727251 0.02037 0
FEE 30-Dec-97 0.666666667 39.354449 0.01694 0
FEE 30-Dec-98 0.666666667 44.988294 0.01482 0
0
RESULTING VALUE 30-Dec-98 44.988294 84.20883 3788.4115 0
0
10.000 0
FORMULA: 1000*(1+T)= 3788.4115 - (0.85 * 1000 * 0) 0
= 3788.4115
T = 14.25%
R = 278.84%
Health Sciences
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 0.666666667 10.836586 0.06152 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 10.836586 99.93848 1082.9919
0.671
FORMULA: 1000*(1+T)= 1082.9919
= 1023.491933
T = 3.52%
R = 2.35%
High Yield
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.608377 94.26513
FEE 30-Dec-89 0.666666667 10.167974 0.06557 0.07
FEE 30-Dec-90 0.666666667 9.035055 0.07379 0.07
FEE 30-Dec-91 0.666666667 12.836986 0.05193 0.06
FEE 30-Dec-92 0.666666667 15.052058 0.04429 0.05
FEE 30-Dec-93 0.666666667 17.718967 0.03762 0.04
FEE 30-Dec-94 0.666666667 17.281354 0.03858 0.03
FEE 30-Dec-95 0.666666667 20.131788 0.03312 0.02
FEE 30-Dec-96 0.666666667 22.323409 0.02986 0
FEE 30-Dec-97 0.666666667 25.150269 0.02651 0
FEE 30-Dec-98 0.666666667 23.371143 0.02853 0
0
RESULTING VALUE 30-Dec-98 23.371143 93.83534 2193.0391 0
0
10.000 0
FORMULA: 1000*(1+T)= 2193.0391 - (0.85 * 1000 * 0) 0
= 2193.039082
T = 8.17%
R = 119.30%
Income
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.135092 98.66709
FEE 30-Dec-89 0.666666667 11.381838 0.05857 0.07
FEE 30-Dec-90 0.666666667 12.026514 0.05543 0.07
FEE 30-Dec-91 0.666666667 13.865581 0.04808 0.06
FEE 30-Dec-92 0.666666667 14.720513 0.04529 0.05
FEE 30-Dec-93 0.666666667 16.139186 0.04131 0.04
FEE 30-Dec-94 0.666666667 15.355404 0.04342 0.03
FEE 30-Dec-95 0.666666667 18.209228 0.03661 0.02
FEE 30-Dec-96 0.666666667 18.470842 0.03609 0
FEE 30-Dec-97 0.666666667 19.622424 0.03397 0
FEE 30-Dec-98 0.666666667 20.934006 0.03185 0
0
RESULTING VALUE 30-Dec-98 20.934006 98.23646 2056.4827 0
0
10.000 0
FORMULA: 1000*(1+T)= 2056.4827 - (0.85 * 1000 * 0) 0
= 2056.482714
T = 7.48%
R = 105.65%
International Growth
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.666666667 11.492845 0.05801 0.07
2 FEE 31-Dec-98 0.666666667 13.356593 0.04991 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 13.356593 99.89208 1334.2179
1.993
FORMULA: 1000*(1+T)= 1334.2179
= 1274.717856
T = 12.95%
R = 27.47%
International Growth & Income
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.666666667 11.809613 0.05645 0.07
2 FEE 31-Dec-98 0.666666667 12.894178 0.05170 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 12.894178 99.89185 1288.0232
1.993
FORMULA: 1000*(1+T)= 1288.0232
= 1228.523242
T = 10.88%
R = 22.85%
International New Opportunities
27-Jan-97
TO NO. YEARS 1.925
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 27-Jan-97 1000.00 10.039272 99.60882
1 FEE 27-Jan-98 0.666666667 9.666707 0.06897 0.07
2 FEE 31-Dec-98 0.666666667 11.193477 0.05956 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 11.193477 99.48029 1113.5304
1.925
FORMULA: 1000*(1+T)= 1113.5304
= 1054.030366
T = 2.77%
R = 5.40%
Investors
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 0.666666667 11.544125 0.05775 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 11.544125 99.94225 1153.7458
0.671
FORMULA: 1000*(1+T)= 1153.7458
= 1094.245833
T = 14.37%
R = 9.42%
Money Market
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.438019 95.80362
FEE 30-Dec-89 0.666666667 11.189062 0.05958 0.07
FEE 30-Dec-90 0.666666667 11.820683 0.05640 0.07
FEE 30-Dec-91 0.666666667 12.349839 0.05398 0.06
FEE 30-Dec-92 0.666666667 12.615867 0.05284 0.05
FEE 30-Dec-93 0.666666667 12.767789 0.05221 0.04
FEE 30-Dec-94 0.666666667 13.027288 0.05117 0.03
FEE 30-Dec-95 0.666666667 13.522467 0.04930 0.02
FEE 30-Dec-96 0.666666667 13.994888 0.04764 0
FEE 30-Dec-97 0.666666667 14.493648 0.04600 0
FEE 30-Dec-98 0.666666667 15.029851 0.04436 0
0
RESULTING VALUE 30-Dec-98 15.029851 95.29013 1432.1965 0
0
10.000 0
FORMULA: 1000*(1+T)= 1432.1965 - (0.85 * 1000 * 0) 0
= 1432.196516
T = 3.66%
R = 43.22%
New Opportunities
02-May-94
TO NO. YEARS 4.665
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 0.666666667 9.835885 0.06778 0.07
2 FEE 02-May-96 0.666666667 11.193477 0.05956 0.07
3 FEE 02-May-97 0.666666667 16.286259 0.04093 0.06
4 02-May-98 0.666666667 23.438888 0.02844 0.05
5 31-Dec-98 0.666666667 24.804963 0.02688 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 24.804963 99.77641 2474.9501
4.665
FORMULA: 1000*(1+T)= 2474.9501
= 2440.950135
T = 21.08%
R = 144.10%
New Value
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.666666667 11.617457 0.05738 0.07
2 FEE 31-Dec-98 0.666666667 12.114148 0.05503 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 12.114148 99.88758 1210.0530
1.993
FORMULA: 1000*(1+T)= 1210.0530
= 1150.552964
T = 7.29%
R = 15.06%
OTC & Emerging Growth
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 0.666666667 9.987309 0.06675 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 9.987309 99.93325 998.0642
0.671
FORMULA: 1000*(1+T)= 998.0642
= 938.5642333
T = -9.02%
R = -6.14%
Research
29-Sep-98
TO NO. YEARS 0.255
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 0.666666667 11.876070 0.05614 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 11.876070 99.94386 1186.9403
0.255
FORMULA: 1000*(1+T)= 1186.9403
= 1127.440333
T = 60.17%
R = 12.74%
Small Cap Value
30-Apr-99
TO NO. YEARS -0.329
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-99 1000.00 #VALUE! #VALUE!
1 FEE 31-Dec-98 0.666666667 #VALUE! #VALUE! 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 #VALUE! #VALUE! #VALUE!
-0.329
FORMULA: 1000*(1+T)= #VALUE!
= #VALUE!
T = #VALUE! R = #VALUE!
Utilities Growth & Income
01-May-92
TO NO. YEARS 6.667
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-92 1000.00 10.000000 100.00000
1 FEE 01-May-93 0.666666667 11.324172 0.05887 0.07
2 FEE 01-May-94 0.666666667 11.176346 0.05965 0.07
3 FEE 01-May-95 0.666666667 11.662572 0.05716 0.06
4 01-May-96 0.666666667 14.194467 0.04697 0.05
5 01-May-97 0.666666667 15.913403 0.04189 0.04
6 01-May-98 0.666666667 20.689105 0.03222 0.03
7 31-Dec-98 0.666666667 22.594308 0.02951 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 22.594308 99.67373 2252.0589
6.667
FORMULA: 1000*(1+T)= 2252.0589
= 2235.058889
T = 12.82%
R = 123.51%
Vista
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 0.666666667 12.051596 0.05532 0.07
2 FEE 31-Dec-98 0.666666667 14.294543 0.04664 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 14.294543 99.89804 1427.9969
1.993
FORMULA: 1000*(1+T)= 1427.9969
= 1368.496892
T = 17.05%
R = 36.85%
Voyager
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.154790 98.47569
FEE 30-Dec-89 0.666666667 13.235536 0.05037 0.07
FEE 30-Dec-90 0.666666667 12.655037 0.05268 0.07
FEE 30-Dec-91 0.666666667 18.115125 0.03680 0.06
FEE 30-Dec-92 0.666666667 19.783080 0.03370 0.05
FEE 30-Dec-93 0.666666667 23.230193 0.02870 0.04
FEE 30-Dec-94 0.666666667 23.190899 0.02875 0.03
FEE 30-Dec-95 0.666666667 32.119846 0.02076 0.02
FEE 30-Dec-96 0.666666667 35.843127 0.01860 0
FEE 30-Dec-97 0.666666667 44.107808 0.01511 0
FEE 30-Dec-98 0.666666667 53.593770 0.01244 0
0
RESULTING VALUE 30-Dec-98 53.593770 98.17779 5261.7179 0
0
10.000 0
FORMULA: 1000*(1+T)= 5261.7179 - (0.85 * 1000 * 0) 0
= 5261.717936
T = 18.06%
R = 426.17%
Non-Standardized Calculations
Dates:
Current: 12/31/98
3 Months Ago: 09/30/98
End of Last Year: 12/31/97
One Yr Ago: 12/31/97
Two Yrs Ago: 12/31/96
Three Yrs Ago: 12/29/95
Five Yrs Ago: 12/31/93
Ten Yrs Ago: 12/30/88
Inception Inception Ten Yr Five Yr Three Two
Fund Date AUV AUV AUV AUV AUV
Asia Pacific Growth 05/01/95 10 N/A N/A 10.124739 10.874374
Diversified Income 09/15/93 10 N/A 10.183338 11.261915 12.06336
George Putnam of Boston 04/30/98 10 N/A N/A N/A N/A
Global Asset Allocation 02/01/88 10 10.52949 16.830835 19.838739 22.580912
Global Growth 05/01/90 10 N/A 13.353271 14.828778 17.109456
Growth & Income 02/01/88 10 11.830989 20.206809 26.872764 32.253072
Health Sciences 04/30/98 10 N/A N/A N/A N/A
High Yield 02/01/88 10 10.608377 17.71821 20.131788 22.35696
Income 02/01/88 10 10.135092 16.126577 18.209228 18.358868
International Growth 01/02/97 10 N/A N/A N/A N/A
International Growth & Income 01/02/97 10 N/A N/A N/A N/A
International New Opportunities 01/27/97 10.039272 N/A N/A N/A N/A
Investors 04/30/98 10 N/A N/A N/A N/A
Money Market 02/01/88 10 10.438019 12.798258 13.522467 14.052794
New Opportunities 05/02/94 10 N/A N/A 10.111419 16.633671
New Value 01/02/97 10 N/A N/A N/A N/A
OTC & Emerging Growth 04/30/98 10 N/A N/A N/A N/A
Research Fund 09/29/98 10 N/A N/A N/A N/A
Small Cap Value 04/30/99 #VALUE! N/A N/A N/A N/A
Utilities Growth & Income 05/01/92 10 N/A 11.838099 13.986038 15.943646
Vista 01/02/97 10 N/A N/A N/A N/A
Voyager 02/01/88 10 10.15479 23.312425 32.119846 35.720804
One Yr YTD 3 Months Today's Inception
Fund AUV AUV AUV AUV Total
Asia Pacific Growth 9.136906 9.136906 7.228435 8.510585 -14.89%
Diversified Income 12.752774 12.752774 12.334394 12.373381 23.73%
George Putnam of Boston N/A N/A 9.424125 10.270826 2.71%
Global Asset Allocation 26.604463 26.604463 26.07271 29.765928 197.66%
Global Growth 19.258899 19.258899 20.199474 24.619795 146.20%
Growth & Income 39.422372 39.422372 38.576278 44.815083 348.15%
Health Sciences N/A N/A 9.394296 10.836586 8.37%
High Yield 25.167673 25.167673 23.373301 23.350282 133.50%
Income 19.636218 19.636218 20.885184 20.948455 109.48%
International Growth 11.433803 11.433803 10.981829 13.356593 33.57%
International Growth & Income 11.759623 11.759623 11.106134 12.894178 28.94%
International New Opportunities 9.835885 9.835885 9.432768 11.193477 11.50%
Investors N/A 10 9.304852 11.544125 15.44%
Money Market 14.557569 14.557569 14.962211 15.088729 50.89%
New Opportunities 20.220498 20.220498 19.255048 24.804963 148.05%
New Value 11.579062 11.579062 10.449536 12.114148 21.14%
OTC & Emerging Growth N/A 10 7.823545 9.987309 -0.13%
Research Fund N/A 10 9.999614 11.87607 18.76%
Small Cap Value N/A 10 N/A N/A #VALUE!
Utilities Growth & Income 19.950486 19.950486 20.929522 22.594308 125.94%
Vista 12.131407 12.131407 11.598933 14.294543 42.95%
Voyager 44.493032 44.493032 43.027929 54.48374 444.84%
Ten Years Five Years Three Years
Fund Average Total Average Total Average Total
Asia Pacific Growth -4.30% N/A N/A N/A N/A -15.94%
Diversified Income 4.10% N/A N/A 21.51% 3.97% 9.87%
George Putnam of Boston 4.06% N/A N/A N/A N/A N/A
Global Asset Allocation 10.50% 182.69% 10.95% 76.85% 12.08% 50.04%
Global Growth 10.95% N/A N/A 84.37% 13.02% 66.03%
Growth & Income 14.72% 278.79% 14.25% 121.78% 17.27% 66.77%
Health Sciences 12.72% N/A N/A N/A N/A N/A
High Yield 8.07% 120.11% 8.21% 31.79% 5.68% 15.99%
Income 7.01% 106.69% 7.53% 29.90% 5.37% 15.04%
International Growth 15.62% N/A N/A N/A N/A N/A
International Growth & Income 13.59% N/A N/A N/A N/A N/A
International New Opportunities 5.81% N/A N/A N/A N/A N/A
Investors 23.85% N/A N/A N/A N/A N/A
Money Market 3.84% 44.56% 3.75% 17.90% 3.35% 11.58%
New Opportunities 21.48% N/A N/A N/A N/A 145.32%
New Value 10.09% N/A N/A N/A N/A N/A
OTC & Emerging Growth -0.19% N/A N/A N/A N/A N/A
Research Fund 96.37% N/A N/A N/A N/A N/A
Small Cap Value #VALUE! N/A N/A N/A N/A N/A
Utilities Growth & Income 13.00% N/A N/A 90.86% 13.80% 61.55%
Vista 19.62% N/A N/A N/A N/A N/A
Voyager 16.79% 436.53% 18.29% 133.71% 18.50% 69.63%
Two Years One Year YTD Three Months
Fund Average Total Average
Asia Pacific Growth -5.62% -21.74% -11.53% -6.85% -6.85% 17.74%
Diversified Income 3.19% 2.57% 1.28% -2.97% -2.97% 0.32%
George Putnam of Boston N/A N/A N/A N/A N/A 8.98%
Global Asset Allocation 14.48% 31.82% 14.81% 11.88% 11.88% 14.17%
Global Growth 18.41% 43.90% 19.96% 27.84% 27.84% 21.88%
Growth & Income 18.59% 38.95% 17.88% 13.68% 13.68% 16.17%
Health Sciences N/A N/A N/A N/A N/A 15.35%
High Yield 5.07% 4.44% 2.20% -7.22% -7.22% -0.10%
Income 4.78% 14.11% 6.82% 6.68% 6.68% 0.30%
International Growth N/A N/A N/A 16.82% 16.82% 21.62%
International Growth & Income N/A N/A N/A 9.65% 9.65% 16.10%
International New OpportunitiesN/A N/A N/A 13.80% 13.80% 18.67%
Investors N/A N/A N/A N/A 15.44% 24.07%
Money Market 3.72% 7.37% 3.62% 3.65% 3.65% 0.85%
New Opportunities 34.87% 49.13% 22.12% 22.67% 22.67% 28.82%
New Value N/A N/A N/A 4.62% 4.62% 15.93%
OTC & Emerging Growth N/A N/A N/A N/A -0.13% 27.66%
Research Fund N/A N/A N/A N/A 18.76% 18.77%
Small Cap Value N/A N/A N/A N/A -100.00% N/A
Utilities Growth & Income 17.34% 41.71% 19.04% 13.25% 13.25% 7.95%
Vista N/A N/A N/A 17.83% 17.83% 23.24%
Voyager 19.26% 52.53% 23.50% 22.45% 22.45% 26.62%
Asia Pacific Growth
31-Dec-97 NO. YEARS 1.000
TO
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 9.174065 109.00293
FEE 31-Dec-98 1.166666667 8.558202 0.13632
RESULTING VALUE 31-Dec-98 8.558202 108.86661 931.7025
1.000
FORMULA: 1000*(1+T)= 931.7025 - (0.85 * 1000 * 0.07)
= 872.2025
T = -12.78%
R = -12.78%
Diversified Income
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 12.836265 77.90428
FEE 31-Dec-98 1.166666667 12.473322 0.09353
RESULTING VALUE 31-Dec-98 12.473322 77.81075 970.5585
1.000
FORMULA: 1000*(1+T)= 970.5585 - (0.85 * 1000 * 0.07)
= 911.0585
T = -8.89%
R = -8.89%
George Putnam Fund of Boston
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 1.166666667 10.281314 0.11347
RESULTING VALUE 31-Dec-98 10.281314 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = #VALUE! R = #VALUE!
Global Asset Allocation
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 27.008267 37.02570
FEE 31-Dec-98 1.166666667 30.263658 0.03855
RESULTING VALUE 31-Dec-98 30.263658 36.98715 1119.3665
1.000
FORMULA: 1000*(1+T)= 1119.3665 - (0.85 * 1000 * 0.07)
= 1059.8665
T = 5.99%
R = 5.99%
Global Growth
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 19.484651 51.32245
FEE 31-Dec-98 1.166666667 24.946249 0.04677
RESULTING VALUE 31-Dec-98 24.946249 51.27568 1279.1359
1.000
FORMULA: 1000*(1+T)= 1279.1359 - (0.85 * 1000 * 0.07)
= 1219.6359
T = 21.96%
R = 21.96%
Growth & Income
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 40.020485 24.98720
FEE 31-Dec-98 1.166666667 45.564183 0.02560
RESULTING VALUE 31-Dec-98 45.564183 24.96160 1137.3548
1.000
FORMULA: 1000*(1+T)= 1137.3548 - (0.85 * 1000 * 0.07)
= 1077.8548
T = 7.79%
R = 7.79%
Health Sciences
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 1.166666667 10.847642 0.10755
RESULTING VALUE 31-Dec-98 10.847642 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = #VALUE! R = #VALUE!
High Yield
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 25.549516 39.13968
FEE 31-Dec-98 1.166666667 23.740619 0.04914
RESULTING VALUE 31-Dec-98 23.740619 39.09054 928.0337
1.000
FORMULA: 1000*(1+T)= 928.0337 - (0.85 * 1000 * 0.07)
= 868.5337
T = -13.15%
R = -13.15%
Income
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 19.934285 50.16483
FEE 31-Dec-98 1.166666667 21.298777 0.05478
RESULTING VALUE 31-Dec-98 21.298777 50.11005 1067.2828
1.000
FORMULA: 1000*(1+T)= 1067.2828 - (0.85 * 1000 * 0.07)
= 1007.7828
T = 0.78%
R = 0.78%
International Growth
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 11.451099 87.32786
FEE 31-Dec-98 1.166666667 13.397132 0.08708
RESULTING VALUE 31-Dec-98 13.397132 87.24078 1168.7762
1.000
FORMULA: 1000*(1+T)= 1168.7762 - (0.85 * 1000 * 0.07)
= 1109.2762
T = 10.93%
R = 10.93%
International Growth & Income
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 11.777400 84.90838
FEE 31-Dec-98 1.166666667 12.933302 0.09021
RESULTING VALUE 31-Dec-98 12.933302 84.81818 1096.9791
1.000
FORMULA: 1000*(1+T)= 1096.9791 - (0.85 * 1000 * 0.07)
= 1037.4791
T = 3.75%
R = 3.75%
International New Opportunities
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 9.850778 101.51482
FEE 31-Dec-98 1.166666667 11.227470 0.10391
RESULTING VALUE 31-Dec-98 11.227470 101.41091 1138.5880
1.000
FORMULA: 1000*(1+T)= 1138.5880 - (0.85 * 1000 * 0.07)
= 1079.0880
T = 7.91%
R = 7.91%
Investors
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 1.166666667 11.555901 0.10096
RESULTING VALUE 31-Dec-98 11.555901 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Money Market
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 14.778584 67.66548
FEE 31-Dec-98 1.166666667 15.341108 0.07605
RESULTING VALUE 31-Dec-98 15.341108 67.58943 1036.8968
1.000
FORMULA: 1000*(1+T)= 1036.8968 - (0.85 * 1000 * 0.07)
= 977.3968
T = -2.26%
R = -2.26%
New Opportunities
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 20.220498 49.45477
FEE 31-Dec-98 1.166666667 24.804963 0.04703
RESULTING VALUE 31-Dec-98 24.804963 49.40773 1225.5570
1.000
FORMULA: 1000*(1+T)= 1225.5570 - (0.85 * 1000 * 0.07)
= 1166.0570
T = 16.61%
R = 16.61%
New Value
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 11.596570 86.23239
FEE 31-Dec-98 1.166666667 12.150915 0.09601
RESULTING VALUE 31-Dec-98 12.150915 86.13638 1046.6358
1.000
FORMULA: 1000*(1+T)= 1046.6358 - (0.85 * 1000 * 0.07)
= 987.1358
T = -1.29%
R = -1.29%
OTC & Emerging Growth
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 1.166666667 9.997496 0.11670
RESULTING VALUE 31-Dec-98 9.997496 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Research
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 1.166666667 11.880661 0.09820
RESULTING VALUE 31-Dec-98 11.880661 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Small Cap Value
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 1.166666667 #VALUE! #VALUE!
RESULTING VALUE 31-Dec-98 #VALUE! #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Utilities Growth & Income
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 20.122586 49.69540
FEE 31-Dec-98 1.166666667 22.823874 0.05112
RESULTING VALUE 31-Dec-98 22.823874 49.64429 1133.0749
1.000
FORMULA: 1000*(1+T)= 1133.0749 - (0.85 * 1000 * 0.07)
= 1073.5749
T = 7.36%
R = 7.36%
Vista
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 12.149776 82.30604
FEE 31-Dec-98 1.166666667 14.337943 0.08137
RESULTING VALUE 31-Dec-98 14.337943 82.22467 1178.9327
1.000
FORMULA: 1000*(1+T)= 1178.9327 - (0.85 * 1000 * 0.07)
= 1119.4327
T = 11.94%
R = 11.94%
Voyager
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 45.168373 22.13939
FEE 31-Dec-98 1.166666667 55.394816 0.02106
RESULTING VALUE 31-Dec-98 55.394816 22.11832 1225.2405
1.000
FORMULA: 1000*(1+T)= 1225.2405 - (0.85 * 1000 * 0.07)
= 1165.7405
T = 16.57%
R = 16.57%
Asia Pacific Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-95 1.166666667 10.134165 0.11512
FEE 31-Dec-96 1.166666667 10.901991 0.10701
FEE 31-Dec-97 1.166666667 9.174065 0.12717
FEE 31-Dec-98 1.166666667 8.558202 0.13632
RESULTING VALUE 31-Dec-98 8.558202 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Diversified Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 10.187882 98.15583
FEE 31-Dec-94 1.166666667 9.620231 0.12127
FEE 31-Dec-95 1.166666667 11.300260 0.10324
FEE 31-Dec-96 1.166666667 12.123884 0.09623
FEE 31-Dec-97 1.166666667 12.836265 0.09089
FEE 31-Dec-98 1.166666667 12.473322 0.09353
RESULTING VALUE 31-Dec-98 12.473322 97.65066 1218.0282
5.000
FORMULA: 1000*(1+T)= 1218.0282 - (0.85 * 1000 * 0.03)
= 1192.528175
T = 3.58%
R = 19.25%
George Putnam Fund of Boston
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-95 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-96 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-97 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-98 1.166666667 10.281314 0.11347
RESULTING VALUE 31-Dec-98 10.281314 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Global Asset Allocation
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 16.982753 58.88327
FEE 31-Dec-94 1.166666667 16.327198 0.07146
FEE 31-Dec-95 1.166666667 20.077029 0.05811
FEE 31-Dec-96 1.166666667 22.888848 0.05097
FEE 31-Dec-97 1.166666667 27.008267 0.04320
FEE 31-Dec-98 1.166666667 30.263658 0.03855
RESULTING VALUE 31-Dec-98 30.263658 58.62099 1774.0855
5.000
FORMULA: 1000*(1+T)= 1774.0855 - (0.85 * 1000 * 0.03)
= 1748.585459
T = 11.82%
R = 74.86%
Global Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 13.427935 74.47161
FEE 31-Dec-94 1.166666667 13.112743 0.08897
FEE 31-Dec-95 1.166666667 14.955796 0.07801
FEE 31-Dec-96 1.166666667 17.283736 0.06750
FEE 31-Dec-97 1.166666667 19.484651 0.05988
FEE 31-Dec-98 1.166666667 24.946249 0.04677
RESULTING VALUE 31-Dec-98 24.946249 74.13049 1849.2777
5.000
FORMULA: 1000*(1+T)= 1849.2777 - (0.85 * 1000 * 0.03)
= 1823.77768
T = 12.77%
R = 82.38%
Growth & Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 20.389114 49.04578
FEE 31-Dec-94 1.166666667 20.174179 0.05783
FEE 31-Dec-95 1.166666667 27.195388 0.04290
FEE 31-Dec-96 1.166666667 32.692714 0.03569
FEE 31-Dec-97 1.166666667 40.020485 0.02915
FEE 31-Dec-98 1.166666667 45.564183 0.02560
RESULTING VALUE 31-Dec-98 45.564183 48.85461 2226.0203
5.000
FORMULA: 1000*(1+T)= 2226.0203 - (0.85 * 1000 * 0.03)
= 2200.520318
T = 17.09%
R = 120.05%
Health Sciences
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-95 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-96 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-97 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-98 1.166666667 10.847642 0.10755
RESULTING VALUE 31-Dec-98 10.847642 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
High Yield
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 17.878028 55.93458
FEE 31-Dec-94 1.166666667 17.463016 0.06681
FEE 31-Dec-95 1.166666667 20.373465 0.05726
FEE 31-Dec-96 1.166666667 22.661703 0.05148
FEE 31-Dec-97 1.166666667 25.549516 0.04566
FEE 31-Dec-98 1.166666667 23.740619 0.04914
RESULTING VALUE 31-Dec-98 23.740619 55.66422 1321.5031
5.000
FORMULA: 1000*(1+T)= 1321.5031 - (0.85 * 1000 * 0.03)
= 1296.003081
T = 5.32%
R = 29.60%
Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 16.272143 61.45472
FEE 31-Dec-94 1.166666667 15.516934 0.07519
FEE 31-Dec-95 1.166666667 18.427958 0.06331
FEE 31-Dec-96 1.166666667 18.609250 0.06269
FEE 31-Dec-97 1.166666667 19.934285 0.05853
FEE 31-Dec-98 1.166666667 21.298777 0.05478
RESULTING VALUE 31-Dec-98 21.298777 61.14023 1302.2121
5.000
FORMULA: 1000*(1+T)= 1302.2121 - (0.85 * 1000 * 0.03)
= 1276.712114
T = 5.01%
R = 27.67%
International Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-95 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-96 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-97 1.166666667 11.451099 0.10188
FEE 31-Dec-98 1.166666667 13.397132 0.08708
RESULTING VALUE 31-Dec-98 13.397132 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
International Growth & Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-95 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-96 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-97 1.166666667 11.777400 0.09906
FEE 31-Dec-98 1.166666667 12.933302 0.09021
RESULTING VALUE 31-Dec-98 12.933302 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
International New Opportunities
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-95 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-96 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-97 1.166666667 9.850778 0.11843
FEE 31-Dec-98 1.166666667 11.227470 0.10391
RESULTING VALUE 31-Dec-98 11.227470 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Investors
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-95 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-96 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-97 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-98 1.166666667 11.555901 0.10096
RESULTING VALUE 31-Dec-98 11.555901 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Money Market
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 12.913807 77.43650
FEE 31-Dec-94 1.166666667 13.220318 0.08825
FEE 31-Dec-95 1.166666667 13.747448 0.08486
FEE 31-Dec-96 1.166666667 14.244474 0.08190
FEE 31-Dec-97 1.166666667 14.778584 0.07894
FEE 31-Dec-98 1.166666667 15.341108 0.07605
RESULTING VALUE 31-Dec-98 15.341108 77.02649 1181.6717
5.000
FORMULA: 1000*(1+T)= 1181.6717 - (0.85 * 1000 * 0.03)
= 1156.171732
T = 2.94%
R = 15.62%
New Opportunities
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 10.719084 0.10884
FEE 31-Dec-95 1.166666667 15.312046 0.07619
FEE 31-Dec-96 1.166666667 16.633671 0.07014
FEE 31-Dec-97 1.166666667 20.220498 0.05770
FEE 31-Dec-98 1.166666667 24.804963 0.04703
RESULTING VALUE 31-Dec-98 24.804963 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
New Value
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-95 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-96 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-97 1.166666667 11.596570 0.10060
FEE 31-Dec-98 1.166666667 12.150915 0.09601
RESULTING VALUE 31-Dec-98 12.150915 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
OTC & Emerging Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-95 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-96 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-97 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-98 1.166666667 9.997496 0.11670
RESULTING VALUE 31-Dec-98 9.997496 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Research
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-95 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-96 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-97 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-98 1.166666667 11.880661 0.09820
RESULTING VALUE 31-Dec-98 11.880661 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Small Cap Value
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-95 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-96 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-97 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-98 1.166666667 #VALUE! #VALUE!
RESULTING VALUE 31-Dec-98 #VALUE! #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Utilities Growth & Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 11.867867 84.26114
FEE 31-Dec-94 1.166666667 10.880451 0.10723
FEE 31-Dec-95 1.166666667 14.062698 0.08296
FEE 31-Dec-96 1.166666667 16.056782 0.07266
FEE 31-Dec-97 1.166666667 20.122586 0.05798
FEE 31-Dec-98 1.166666667 22.823874 0.05112
RESULTING VALUE 31-Dec-98 22.823874 83.88920 1914.6765
5.000
FORMULA: 1000*(1+T)= 1914.6765 - (0.85 * 1000 * 0.03)
= 1889.176512
T = 13.57%
R = 88.92%
Vista
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-95 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-96 1.166666667 #VALUE! #VALUE!
FEE 31-Dec-97 1.166666667 12.149776 0.09602
FEE 31-Dec-98 1.166666667 14.337943 0.08137
RESULTING VALUE 31-Dec-98 14.337943 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Voyager
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 23.522867 42.51182
FEE 31-Dec-94 1.166666667 23.434834 0.04978
FEE 31-Dec-95 1.166666667 32.505621 0.03589
FEE 31-Dec-96 1.166666667 36.207937 0.03222
FEE 31-Dec-97 1.166666667 45.168373 0.02583
FEE 31-Dec-98 1.166666667 55.394816 0.02106
RESULTING VALUE 31-Dec-98 55.394816 42.34704 2345.8064
5.000
FORMULA: 1000*(1+T)= 2345.8064 - (0.85 * 1000 * 0.03)
= 2320.306411
T = 18.33%
R = 132.03%
Asia Pacific Growth
01-May-95
TO NO. YEARS 3.669
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-95 1000.00 10.000000 100.00000
1 FEE 01-May-96 1.166666667 10.724973 0.10878 0.07
2 FEE 01-May-97 1.166666667 10.639980 0.10965 0.07
3 FEE 01-May-98 1.166666667 8.982818 0.12988 0.06
4 31-Dec-98 1.166666667 8.558202 0.13632 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 8.558202 99.51537 851.6726
3.669
FORMULA: 1000*(1+T)= 851.6726
= 809.1726492
T = -5.61%
R = -19.08%
Diversified Income
15-Sep-93
TO NO. YEARS 5.292
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 15-Sep-93 1000.00 10.000000 100.00000
1 FEE 15-Sep-94 1.166666667 9.749286 0.11967 0.07
2 FEE 15-Sep-95 1.166666667 10.791455 0.10811 0.07
3 FEE 15-Sep-96 1.166666667 11.613068 0.10046 0.06
4 15-Sep-97 1.166666667 12.604443 0.09256 0.05
5 15-Sep-98 1.166666667 12.268278 0.09510 0.04
6 31-Dec-98 1.166666667 12.473322 0.09353 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 12.473322 99.39057 1239.7306
5.292
FORMULA: 1000*(1+T)= 1239.7306
= 1214.230611
T = 3.74%
R = 21.42%
George Putnam Fund of Boston
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 1.166666667 10.281314 0.11347 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 10.281314 99.88653 1026.9647
0.671
FORMULA: 1000*(1+T)= 1026.9647
= 967.4647333
T = -4.81%
R = -3.25%
Global Asset Allocation
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.544055 94.84017
FEE 30-Dec-89 1.166666667 12.069190 0.09666 0.07
FEE 30-Dec-90 1.166666667 11.890352 0.09812 0.07
FEE 30-Dec-91 1.166666667 13.934991 0.08372 0.06
FEE 30-Dec-92 1.166666667 14.672932 0.07951 0.05
FEE 30-Dec-93 1.166666667 16.995293 0.06865 0.04
FEE 30-Dec-94 1.166666667 16.327828 0.07145 0.03
FEE 30-Dec-95 1.166666667 20.078578 0.05811 0.02
FEE 30-Dec-96 1.166666667 22.995887 0.05073 0
FEE 30-Dec-97 1.166666667 26.951719 0.04329 0
FEE 30-Dec-98 1.166666667 30.200816 0.03863 0
0
RESULTING VALUE 30-Dec-98 30.200816 94.15130 2843.4461 0
0
10.000 0
FORMULA: 1000*(1+T)= 2843.4461 - (0.85 * 1000 * 0) 0
= 2843.446096
T = 11.02%
R = 184.34%
Global Growth
01-May-90
TO NO. YEARS 8.668
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-90 1000.00 10.000000 100.00000
1 FEE 01-May-91 1.166666667 10.080839 0.11573 0.07
2 FEE 01-May-92 1.166666667 10.501850 0.11109 0.07
3 FEE 01-May-93 1.166666667 11.266332 0.10355 0.06
4 01-May-94 1.166666667 13.335461 0.08749 0.05
5 01-May-95 1.166666667 13.157776 0.08867 0.04
6 01-May-96 1.166666667 16.020396 0.07282 0.03
7 01-May-97 1.166666667 18.017272 0.06475 0.02
8 01-May-98 1.166666667 22.923856 0.05089 0
9 31-Dec-98 1.166666667 24.946249 0.04677 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 24.946249 99.25823 2476.1206
8.668
FORMULA: 1000*(1+T)= 2476.1206
= 2476.120611
T = 11.03%
R = 147.61%
Growth & Income
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 11.847343 84.40711
FEE 30-Dec-89 1.166666667 14.171134 0.08233 0.07
FEE 30-Dec-90 1.166666667 14.226553 0.08201 0.07
FEE 30-Dec-91 1.166666667 16.646541 0.07008 0.06
FEE 30-Dec-92 1.166666667 18.074577 0.06455 0.05
FEE 30-Dec-93 1.166666667 20.425097 0.05712 0.04
FEE 30-Dec-94 1.166666667 20.174957 0.05783 0.03
FEE 30-Dec-95 1.166666667 27.197486 0.04290 0.02
FEE 30-Dec-96 1.166666667 33.173217 0.03517 0
FEE 30-Dec-97 1.166666667 39.951365 0.02920 0
FEE 30-Dec-98 1.166666667 45.740098 0.02551 0
0
RESULTING VALUE 30-Dec-98 45.740098 83.86043 3835.7841 0
0
10.000 0
FORMULA: 1000*(1+T)= 3835.7841 - (0.85 * 1000 * 0) 0
= 3835.78409
T = 14.39%
R = 283.58%
Health Sciences
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 1.166666667 10.847642 0.10755 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 10.847642 99.89245 1083.5975
0.671
FORMULA: 1000*(1+T)= 1083.5975
= 1024.097533
T = 3.61%
R = 2.41%
High Yield
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.623053 94.13490
FEE 30-Dec-89 1.166666667 10.197478 0.11441 0.07
FEE 30-Dec-90 1.166666667 9.075016 0.12856 0.07
FEE 30-Dec-91 1.166666667 12.913446 0.09035 0.06
FEE 30-Dec-92 1.166666667 15.164722 0.07693 0.05
FEE 30-Dec-93 1.166666667 17.878718 0.06525 0.04
FEE 30-Dec-94 1.166666667 17.463689 0.06681 0.03
FEE 30-Dec-95 1.166666667 20.375037 0.05726 0.02
FEE 30-Dec-96 1.166666667 22.627601 0.05156 0
FEE 30-Dec-97 1.166666667 25.531741 0.04569 0
FEE 30-Dec-98 1.166666667 23.761730 0.04910 0
0
RESULTING VALUE 30-Dec-98 23.761730 93.38898 2219.0838 0
0
10.000 0
FORMULA: 1000*(1+T)= 2219.0838 - (0.85 * 1000 * 0) 0
= 2219.08376
T = 8.30%
R = 121.91%
Income
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.149128 98.53063
FEE 30-Dec-89 1.166666667 11.414891 0.10221 0.07
FEE 30-Dec-90 1.166666667 12.079730 0.09658 0.07
FEE 30-Dec-91 1.166666667 13.948230 0.08364 0.06
FEE 30-Dec-92 1.166666667 14.830777 0.07867 0.05
FEE 30-Dec-93 1.166666667 16.284798 0.07164 0.04
FEE 30-Dec-94 1.166666667 15.517532 0.07518 0.03
FEE 30-Dec-95 1.166666667 18.429381 0.06330 0.02
FEE 30-Dec-96 1.166666667 18.722673 0.06231 0
FEE 30-Dec-97 1.166666667 19.920198 0.05857 0
FEE 30-Dec-98 1.166666667 21.283997 0.05481 0
0
RESULTING VALUE 30-Dec-98 21.283997 97.78371 2081.2283 0
0
10.000 0
FORMULA: 1000*(1+T)= 2081.2283 - (0.85 * 1000 * 0) 0
= 2081.228276
T = 7.60%
R = 108.12%
International Growth
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 1.166666667 11.510326 0.10136 0.07
2 FEE 31-Dec-98 1.166666667 13.397132 0.08708 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 13.397132 99.81156 1337.1886
1.993
FORMULA: 1000*(1+T)= 1337.1886
= 1277.688623
T = 13.08%
R = 27.77%
International Growth & Income
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 1.166666667 11.827564 0.09864 0.07
2 FEE 31-Dec-98 1.166666667 12.933302 0.09021 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 12.933302 99.81115 1290.8878
1.993
FORMULA: 1000*(1+T)= 1290.8878
= 1231.387797
T = 11.01%
R = 23.14%
International New Opportunities
27-Jan-97
TO NO. YEARS 1.925
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 27-Jan-97 1000.00 10.040315 99.59847
1 FEE 27-Jan-98 1.166666667 9.682434 0.12049 0.07
2 FEE 31-Dec-98 1.166666667 11.227470 0.10391 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 11.227470 99.37406 1115.7193
1.925
FORMULA: 1000*(1+T)= 1115.7193
= 1056.219321
T = 2.88%
R = 5.62%
Investors
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 1.166666667 11.555901 0.10096 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 11.555901 99.89904 1154.4234
0.671
FORMULA: 1000*(1+T)= 1154.4234
= 1094.923433
T = 14.48%
R = 9.49%
Money Market
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.452470 95.67117
FEE 30-Dec-89 1.166666667 11.221552 0.10397 0.07
FEE 30-Dec-90 1.166666667 11.872995 0.09826 0.07
FEE 30-Dec-91 1.166666667 12.423451 0.09391 0.06
FEE 30-Dec-92 1.166666667 12.710384 0.09179 0.05
FEE 30-Dec-93 1.166666667 12.883009 0.09056 0.04
FEE 30-Dec-94 1.166666667 13.164837 0.08862 0.03
FEE 30-Dec-95 1.166666667 13.685985 0.08525 0.02
FEE 30-Dec-96 1.166666667 14.185720 0.08224 0
FEE 30-Dec-97 1.166666667 14.713631 0.07929 0
FEE 30-Dec-98 1.166666667 15.281182 0.07635 0
0
RESULTING VALUE 30-Dec-98 15.281182 94.78094 1448.3647 0
0
10.000 0
FORMULA: 1000*(1+T)= 1448.3647 - (0.85 * 1000 * 0) 0
= 1448.364744
T = 3.77%
R = 44.84%
New Opportunities
02-May-94
TO NO. YEARS 4.665
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 1.166666667 11.480807 0.10162 0.07
2 FEE 02-May-96 1.166666667 17.540903 0.06651 0.07
3 FEE 02-May-97 1.166666667 16.286259 0.07164 0.06
4 02-May-98 1.166666667 23.438888 0.04977 0.05
5 31-Dec-98 1.166666667 24.804963 0.04703 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 24.804963 99.66343 2472.1476
4.665
FORMULA: 1000*(1+T)= 2472.1476
= 2438.147606
T = 21.05%
R = 143.81%
New Value
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 1.166666667 11.635120 0.10027 0.07
2 FEE 31-Dec-98 1.166666667 12.150915 0.09601 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 12.150915 99.80371 1212.7064
1.993
FORMULA: 1000*(1+T)= 1212.7064
= 1153.206447
T = 7.41%
R = 15.32%
OTC & Emerging Growth
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 1.166666667 9.997496 0.11670 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 9.997496 99.88330 998.5829
0.671
FORMULA: 1000*(1+T)= 998.5829
= 939.0829333
T = -8.94%
R = -6.09%
Research
29-Sep-98
TO NO. YEARS 0.255
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 1.166666667 11.880661 0.09820 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 11.880661 99.90180 1186.8994
0.255
FORMULA: 1000*(1+T)= 1186.8994
= 1127.399433
T = 60.15%
R = 12.74%
Small Cap Value
30-Apr-99
TO NO. YEARS -0.329
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-99 1000.00 #VALUE! #VALUE!
1 FEE 31-Dec-98 1.166666667 #VALUE! #VALUE! 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 #VALUE! #VALUE! #VALUE!
-0.329
FORMULA: 1000*(1+T)= #VALUE!
= #VALUE!
T = #VALUE! R = #VALUE!
Utilities Growth & Income
01-May-92
TO NO. YEARS 6.667
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-92 1000.00 10.000000 100.00000
1 FEE 01-May-93 1.166666667 11.341129 0.10287 0.07
2 FEE 01-May-94 1.166666667 11.210057 0.10407 0.07
3 FEE 01-May-95 1.166666667 11.715598 0.09958 0.06
4 01-May-96 1.166666667 14.280724 0.08170 0.05
5 01-May-97 1.166666667 16.034403 0.07276 0.04
6 01-May-98 1.166666667 20.878099 0.05588 0.03
7 31-Dec-98 1.166666667 22.823874 0.05112 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 22.823874 99.43202 2269.4240
6.667
FORMULA: 1000*(1+T)= 2269.4240
= 2252.423956
T = 12.95%
R = 125.24%
Vista
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 1.166666667 12.069945 0.09666 0.07
2 FEE 31-Dec-98 1.166666667 14.337943 0.08137 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 14.337943 99.82197 1431.2417
1.993
FORMULA: 1000*(1+T)= 1431.2417
= 1371.741745
T = 17.18%
R = 37.17%
Voyager
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.168857 98.33947
FEE 30-Dec-89 1.166666667 13.273971 0.08789 0.07
FEE 30-Dec-90 1.166666667 12.711053 0.09178 0.07
FEE 30-Dec-91 1.166666667 18.223095 0.06402 0.06
FEE 30-Dec-92 1.166666667 19.931256 0.05853 0.05
FEE 30-Dec-93 1.166666667 23.439795 0.04977 0.04
FEE 30-Dec-94 1.166666667 23.435738 0.04978 0.03
FEE 30-Dec-95 1.166666667 32.508129 0.03589 0.02
FEE 30-Dec-96 1.166666667 36.331776 0.03211 0
FEE 30-Dec-97 1.166666667 44.777117 0.02605 0
FEE 30-Dec-98 1.166666667 54.489741 0.02141 0
0
RESULTING VALUE 30-Dec-98 54.489741 97.82222 5330.3073 0
0
10.000 0
FORMULA: 1000*(1+T)= 5330.3073 - (0.85 * 1000 * 0) 0
= 5330.307342
T = 18.22%
R = 433.03%
Asia Pacific Growth
31-Dec-97 NO. YEARS 1.000
TO
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 9.174065 109.00293
FEE 31-Dec-98 3.846666667 8.558202 0.44947
RESULTING VALUE 31-Dec-98 8.558202 108.55346 929.0225
1.000
FORMULA: 1000*(1+T)= 929.0225 - (0.85 * 1000 * 0.07)
= 869.5225
T = -13.05%
R = -13.05%
Diversified Income
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 12.836265 77.90428
FEE 31-Dec-98 3.846666667 12.473322 0.30839
RESULTING VALUE 31-Dec-98 12.473322 77.59589 967.8785
1.000
FORMULA: 1000*(1+T)= 967.8785 - (0.85 * 1000 * 0.07)
= 908.3785
T = -9.16%
R = -9.16%
George Putnam Fund of Boston
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 3.846666667 10.281314 0.37414
RESULTING VALUE 31-Dec-98 10.281314 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = #VALUE! R = #VALUE!
Global Asset Allocation
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 27.008267 37.02570
FEE 31-Dec-98 3.846666667 30.263658 0.12711
RESULTING VALUE 31-Dec-98 30.263658 36.89860 1116.6865
1.000
FORMULA: 1000*(1+T)= 1116.6865 - (0.85 * 1000 * 0.07)
= 1057.1865
T = 5.72%
R = 5.72%
Global Growth
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 19.484651 51.32245
FEE 31-Dec-98 3.846666667 24.946249 0.15420
RESULTING VALUE 31-Dec-98 24.946249 51.16825 1276.4559
1.000
FORMULA: 1000*(1+T)= 1276.4559 - (0.85 * 1000 * 0.07)
= 1216.9559
T = 21.70%
R = 21.70%
Growth & Income
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 40.020485 24.98720
FEE 31-Dec-98 3.846666667 45.564183 0.08442
RESULTING VALUE 31-Dec-98 45.564183 24.90278 1134.6748
1.000
FORMULA: 1000*(1+T)= 1134.6748 - (0.85 * 1000 * 0.07)
= 1075.1748
T = 7.52%
R = 7.52%
Health Sciences
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 3.846666667 10.847642 0.35461
RESULTING VALUE 31-Dec-98 10.847642 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = #VALUE! R = #VALUE!
High Yield
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 25.549516 39.13968
FEE 31-Dec-98 3.846666667 23.740619 0.16203
RESULTING VALUE 31-Dec-98 23.740619 38.97766 925.3537
1.000
FORMULA: 1000*(1+T)= 925.3537 - (0.85 * 1000 * 0.07)
= 865.8537
T = -13.41%
R = -13.41%
Income
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 19.934285 50.16483
FEE 31-Dec-98 3.846666667 21.298777 0.18061
RESULTING VALUE 31-Dec-98 21.298777 49.98422 1064.6028
1.000
FORMULA: 1000*(1+T)= 1064.6028 - (0.85 * 1000 * 0.07)
= 1005.1028
T = 0.51%
R = 0.51%
International Growth
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 11.451099 87.32786
FEE 31-Dec-98 3.846666667 13.397132 0.28713
RESULTING VALUE 31-Dec-98 13.397132 87.04074 1166.0962
1.000
FORMULA: 1000*(1+T)= 1166.0962 - (0.85 * 1000 * 0.07)
= 1106.5962
T = 10.66%
R = 10.66%
International Growth & Income
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 11.777400 84.90838
FEE 31-Dec-98 3.846666667 12.933302 0.29742
RESULTING VALUE 31-Dec-98 12.933302 84.61096 1094.2991
1.000
FORMULA: 1000*(1+T)= 1094.2991 - (0.85 * 1000 * 0.07)
= 1034.7991
T = 3.48%
R = 3.48%
International New Opportunities
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 9.850778 101.51482
FEE 31-Dec-98 3.846666667 11.227470 0.34261
RESULTING VALUE 31-Dec-98 11.227470 101.17221 1135.9080
1.000
FORMULA: 1000*(1+T)= 1135.9080 - (0.85 * 1000 * 0.07)
= 1076.4080
T = 7.64%
R = 7.64%
Investors
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 3.846666667 11.555901 0.33287
RESULTING VALUE 31-Dec-98 11.555901 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Money Market
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 14.778584 67.66548
FEE 31-Dec-98 3.846666667 15.341108 0.25074
RESULTING VALUE 31-Dec-98 15.341108 67.41474 1034.2168
1.000
FORMULA: 1000*(1+T)= 1034.2168 - (0.85 * 1000 * 0.07)
= 974.7168
T = -2.53%
R = -2.53%
New Opportunities
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 20.220498 49.45477
FEE 31-Dec-98 3.846666667 24.804963 0.15508
RESULTING VALUE 31-Dec-98 24.804963 49.29969 1222.8770
1.000
FORMULA: 1000*(1+T)= 1222.8770 - (0.85 * 1000 * 0.07)
= 1163.3770
T = 16.34%
R = 16.34%
New Value
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 11.596570 86.23239
FEE 31-Dec-98 3.846666667 12.150915 0.31657
RESULTING VALUE 31-Dec-98 12.150915 85.91582 1043.9558
1.000
FORMULA: 1000*(1+T)= 1043.9558 - (0.85 * 1000 * 0.07)
= 984.4558
T = -1.55%
R = -1.55%
OTC & Emerging Growth
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 3.846666667 9.997496 0.38476
RESULTING VALUE 31-Dec-98 9.997496 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Research
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 3.846666667 11.880661 0.32378
RESULTING VALUE 31-Dec-98 11.880661 #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Small Cap Value
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 #VALUE! #VALUE!
FEE 31-Dec-98 3.846666667 #VALUE! #VALUE!
RESULTING VALUE 31-Dec-98 #VALUE! #VALUE! #VALUE!
1.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.07)
= #VALUE!
T = N/A
R = N/A
Utilities Growth & Income
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 20.122586 49.69540
FEE 31-Dec-98 3.846666667 22.823874 0.16854
RESULTING VALUE 31-Dec-98 22.823874 49.52686 1130.3949
1.000
FORMULA: 1000*(1+T)= 1130.3949 - (0.85 * 1000 * 0.07)
= 1070.8949
T = 7.09%
R = 7.09%
Vista
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 12.149776 82.30604
FEE 31-Dec-98 3.846666667 14.337943 0.26829
RESULTING VALUE 31-Dec-98 14.337943 82.03776 1176.2527
1.000
FORMULA: 1000*(1+T)= 1176.2527 - (0.85 * 1000 * 0.07)
= 1116.7527
T = 11.68%
R = 11.68%
Voyager
12/31/97 NO. YEARS 1.000
TO
12/31/98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-97 1000.00 45.168373 22.13939
FEE 31-Dec-98 3.846666667 55.394816 0.06944
RESULTING VALUE 31-Dec-98 55.394816 22.06994 1222.5605
1.000
FORMULA: 1000*(1+T)= 1222.5605 - (0.85 * 1000 * 0.07)
= 1163.0605
T = 16.31%
R = 16.31%
Asia Pacific Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 #VALUE! #VALUE!
FEE 31-Dec-95 4.037466667 10.134165 0.39840
FEE 31-Dec-96 4.239714667 10.901991 0.38889
FEE 31-Dec-97 4.454097547 9.174065 0.48551
FEE 31-Dec-98 4.681343399 8.558202 0.54700
RESULTING VALUE 31-Dec-98 8.558202 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Diversified Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 10.187882 98.15583
FEE 31-Dec-94 3.846666667 9.620231 0.39985
FEE 31-Dec-95 4.037466667 11.300260 0.35729
FEE 31-Dec-96 4.239714667 12.123884 0.34970
FEE 31-Dec-97 4.454097547 12.836265 0.34699
FEE 31-Dec-98 4.681343399 12.473322 0.37531
RESULTING VALUE 31-Dec-98 12.473322 96.32669 1201.5138
5.000
FORMULA: 1000*(1+T)= 1201.5138 - (0.85 * 1000 * 0.03)
= 1176.013772
T = 3.30%
R = 17.60%
George Putnam Fund of Boston
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 #VALUE! #VALUE!
FEE 31-Dec-95 4.037466667 #VALUE! #VALUE!
FEE 31-Dec-96 4.239714667 #VALUE! #VALUE!
FEE 31-Dec-97 4.454097547 #VALUE! #VALUE!
FEE 31-Dec-98 4.681343399 10.281314 0.45533
RESULTING VALUE 31-Dec-98 10.281314 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Global Asset Allocation
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 16.982753 58.88327
FEE 31-Dec-94 3.846666667 16.327198 0.23560
FEE 31-Dec-95 4.037466667 20.077029 0.20110
FEE 31-Dec-96 4.239714667 22.888848 0.18523
FEE 31-Dec-97 4.454097547 27.008267 0.16492
FEE 31-Dec-98 4.681343399 30.263658 0.15469
RESULTING VALUE 31-Dec-98 30.263658 57.94174 1753.5290
5.000
FORMULA: 1000*(1+T)= 1753.5290 - (0.85 * 1000 * 0.03)
= 1728.028965
T = 11.56%
R = 72.80%
Global Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 13.427935 74.47161
FEE 31-Dec-94 3.846666667 13.112743 0.29335
FEE 31-Dec-95 4.037466667 14.955796 0.26996
FEE 31-Dec-96 4.239714667 17.283736 0.24530
FEE 31-Dec-97 4.454097547 19.484651 0.22860
FEE 31-Dec-98 4.681343399 24.946249 0.18766
RESULTING VALUE 31-Dec-98 24.946249 73.24675 1827.2316
5.000
FORMULA: 1000*(1+T)= 1827.2316 - (0.85 * 1000 * 0.03)
= 1801.731615
T = 12.50%
R = 80.17%
Growth & Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 20.389114 49.04578
FEE 31-Dec-94 3.846666667 20.174179 0.19067
FEE 31-Dec-95 4.037466667 27.195388 0.14846
FEE 31-Dec-96 4.239714667 32.692714 0.12968
FEE 31-Dec-97 4.454097547 40.020485 0.11130
FEE 31-Dec-98 4.681343399 45.564183 0.10274
RESULTING VALUE 31-Dec-98 45.564183 48.36292 2203.6172
5.000
FORMULA: 1000*(1+T)= 2203.6172 - (0.85 * 1000 * 0.03)
= 2178.117158
T = 16.85%
R = 117.81%
Health Sciences
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 #VALUE! #VALUE!
FEE 31-Dec-95 4.037466667 #VALUE! #VALUE!
FEE 31-Dec-96 4.239714667 #VALUE! #VALUE!
FEE 31-Dec-97 4.454097547 #VALUE! #VALUE!
FEE 31-Dec-98 4.681343399 10.847642 0.43155
RESULTING VALUE 31-Dec-98 10.847642 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
High Yield
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 17.878028 55.93458
FEE 31-Dec-94 3.846666667 17.463016 0.22028
FEE 31-Dec-95 4.037466667 20.373465 0.19817
FEE 31-Dec-96 4.239714667 22.661703 0.18709
FEE 31-Dec-97 4.454097547 25.549516 0.17433
FEE 31-Dec-98 4.681343399 23.740619 0.19719
RESULTING VALUE 31-Dec-98 23.740619 54.95753 1304.7257
5.000
FORMULA: 1000*(1+T)= 1304.7257 - (0.85 * 1000 * 0.03)
= 1279.2257
T = 5.05%
R = 27.92%
Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 16.272143 61.45472
FEE 31-Dec-94 3.846666667 15.516934 0.24790
FEE 31-Dec-95 4.037466667 18.427958 0.21909
FEE 31-Dec-96 4.239714667 18.609250 0.22783
FEE 31-Dec-97 4.454097547 19.934285 0.22344
FEE 31-Dec-98 4.681343399 21.298777 0.21979
RESULTING VALUE 31-Dec-98 21.298777 60.31666 1284.6712
5.000
FORMULA: 1000*(1+T)= 1284.6712 - (0.85 * 1000 * 0.03)
= 1259.17116
T = 4.72%
R = 25.92%
International Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 #VALUE! #VALUE!
FEE 31-Dec-95 4.037466667 #VALUE! #VALUE!
FEE 31-Dec-96 4.239714667 #VALUE! #VALUE!
FEE 31-Dec-97 4.454097547 11.451099 0.38897
FEE 31-Dec-98 4.681343399 13.397132 0.34943
RESULTING VALUE 31-Dec-98 13.397132 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
International Growth & Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 #VALUE! #VALUE!
FEE 31-Dec-95 4.037466667 #VALUE! #VALUE!
FEE 31-Dec-96 4.239714667 #VALUE! #VALUE!
FEE 31-Dec-97 4.454097547 11.777400 0.37819
FEE 31-Dec-98 4.681343399 12.933302 0.36196
RESULTING VALUE 31-Dec-98 12.933302 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
International New Opportunities
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 #VALUE! #VALUE!
FEE 31-Dec-95 4.037466667 #VALUE! #VALUE!
FEE 31-Dec-96 4.239714667 #VALUE! #VALUE!
FEE 31-Dec-97 4.454097547 9.850778 0.45216
FEE 31-Dec-98 4.681343399 11.227470 0.41695
RESULTING VALUE 31-Dec-98 11.227470 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Investors
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 #VALUE! #VALUE!
FEE 31-Dec-95 4.037466667 #VALUE! #VALUE!
FEE 31-Dec-96 4.239714667 #VALUE! #VALUE!
FEE 31-Dec-97 4.454097547 #VALUE! #VALUE!
FEE 31-Dec-98 4.681343399 11.555901 0.40510
RESULTING VALUE 31-Dec-98 11.555901 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Money Market
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 12.913807 77.43650
FEE 31-Dec-94 3.846666667 13.220318 0.29097
FEE 31-Dec-95 4.037466667 13.747448 0.29369
FEE 31-Dec-96 4.239714667 14.244474 0.29764
FEE 31-Dec-97 4.454097547 14.778584 0.30139
FEE 31-Dec-98 4.681343399 15.341108 0.30515
RESULTING VALUE 31-Dec-98 15.341108 75.94767 1165.1213
5.000
FORMULA: 1000*(1+T)= 1165.1213 - (0.85 * 1000 * 0.03)
= 1139.621344
T = 2.65%
R = 13.96%
New Opportunities
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 10.719084 0.35886
FEE 31-Dec-95 4.037466667 15.312046 0.26368
FEE 31-Dec-96 4.239714667 16.633671 0.25489
FEE 31-Dec-97 4.454097547 20.220498 0.22028
FEE 31-Dec-98 4.681343399 24.804963 0.18873
RESULTING VALUE 31-Dec-98 24.804963 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
New Value
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 #VALUE! #VALUE!
FEE 31-Dec-95 4.037466667 #VALUE! #VALUE!
FEE 31-Dec-96 4.239714667 #VALUE! #VALUE!
FEE 31-Dec-97 4.454097547 11.596570 0.38409
FEE 31-Dec-98 4.681343399 12.150915 0.38527
RESULTING VALUE 31-Dec-98 12.150915 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
OTC & Emerging Growth
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 #VALUE! #VALUE!
FEE 31-Dec-95 4.037466667 #VALUE! #VALUE!
FEE 31-Dec-96 4.239714667 #VALUE! #VALUE!
FEE 31-Dec-97 4.454097547 #VALUE! #VALUE!
FEE 31-Dec-98 4.681343399 9.997496 0.46825
RESULTING VALUE 31-Dec-98 9.997496 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Research
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 #VALUE! #VALUE!
FEE 31-Dec-95 4.037466667 #VALUE! #VALUE!
FEE 31-Dec-96 4.239714667 #VALUE! #VALUE!
FEE 31-Dec-97 4.454097547 #VALUE! #VALUE!
FEE 31-Dec-98 4.681343399 11.880661 0.39403
RESULTING VALUE 31-Dec-98 11.880661 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Small Cap Value
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 #VALUE! #VALUE!
FEE 31-Dec-95 4.037466667 #VALUE! #VALUE!
FEE 31-Dec-96 4.239714667 #VALUE! #VALUE!
FEE 31-Dec-97 4.454097547 #VALUE! #VALUE!
FEE 31-Dec-98 4.681343399 #VALUE! #VALUE!
RESULTING VALUE 31-Dec-98 #VALUE! #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Utilities Growth & Income
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 11.867867 84.26114
FEE 31-Dec-94 3.846666667 10.880451 0.35354
FEE 31-Dec-95 4.037466667 14.062698 0.28710
FEE 31-Dec-96 4.239714667 16.056782 0.26405
FEE 31-Dec-97 4.454097547 20.122586 0.22135
FEE 31-Dec-98 4.681343399 22.823874 0.20511
RESULTING VALUE 31-Dec-98 22.823874 82.93000 1892.7838
5.000
FORMULA: 1000*(1+T)= 1892.7838 - (0.85 * 1000 * 0.03)
= 1867.283762
T = 13.30%
R = 86.73%
Vista
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 #VALUE! #VALUE!
FEE 31-Dec-94 3.846666667 #VALUE! #VALUE!
FEE 31-Dec-95 4.037466667 #VALUE! #VALUE!
FEE 31-Dec-96 4.239714667 #VALUE! #VALUE!
FEE 31-Dec-97 4.454097547 12.149776 0.36660
FEE 31-Dec-98 4.681343399 14.337943 0.32650
RESULTING VALUE 31-Dec-98 14.337943 #VALUE! #VALUE!
5.000
FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.03)
= #VALUE!
T = N/A
R = N/A
Voyager
30-Dec-93
TO NO. YEARS 5.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE
INIT DEPOSIT 31-Dec-93 1000.00 23.522867 42.51182
FEE 31-Dec-94 3.846666667 23.434834 0.16414
FEE 31-Dec-95 4.037466667 32.505621 0.12421
FEE 31-Dec-96 4.239714667 36.207937 0.11709
FEE 31-Dec-97 4.454097547 45.168373 0.09861
FEE 31-Dec-98 4.681343399 55.394816 0.08451
RESULTING VALUE 31-Dec-98 55.394816 41.92326 2322.3313
5.000
FORMULA: 1000*(1+T)= 2322.3313 - (0.85 * 1000 * 0.03)
= 2296.831285
T = 18.09%
R = 129.68%
Asia Pacific Growth
01-May-95
TO NO. YEARS 3.669
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-95 1000.00 10.000000 100.00000
1 FEE 01-May-96 3.846666667 10.724973 0.35866 0.07
2 FEE 01-May-97 4.037466667 10.639980 0.37946 0.07
3 FEE 01-May-98 4.239714667 8.982818 0.47198 0.06
4 31-Dec-98 4.454097547 8.558202 0.52045 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 8.558202 98.26945 841.0098
3.669
FORMULA: 1000*(1+T)= 841.0098
= 798.509764
T = -5.95%
R = -20.15%
Diversified Income
15-Sep-93
TO NO. YEARS 5.292
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 15-Sep-93 1000.00 10.000000 100.00000
1 FEE 15-Sep-94 3.846666667 9.749286 0.39456 0.07
2 FEE 15-Sep-95 4.037466667 10.791455 0.37414 0.07
3 FEE 15-Sep-96 4.239714667 11.613068 0.36508 0.06
4 15-Sep-97 4.454097547 12.604443 0.35338 0.05
5 15-Sep-98 4.681343399 12.268278 0.38158 0.04
6 31-Dec-98 4.922224003 12.473322 0.39462 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 12.473322 97.73665 1219.1007
5.292
FORMULA: 1000*(1+T)= 1219.1007
= 1193.60068
T = 3.40%
R = 19.36%
George Putnam Fund of Boston
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 3.846666667 10.281314 0.37414 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 10.281314 99.62586 1024.2847
0.671
FORMULA: 1000*(1+T)= 1024.2847
= 964.7847333
T = -5.20%
R = -3.52%
Global Asset Allocation
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.544055 94.84017
FEE 30-Dec-89 3.846666667 12.069190 0.31872 0.07
FEE 30-Dec-90 4.037466667 11.890352 0.33956 0.07
FEE 30-Dec-91 4.239714667 13.934991 0.30425 0.06
FEE 30-Dec-92 4.454097547 14.672932 0.30356 0.05
FEE 30-Dec-93 4.681343399 16.995293 0.27545 0.04
FEE 30-Dec-94 4.922224003 16.327828 0.30146 0.03
FEE 30-Dec-95 5.177557444 20.078578 0.25786 0.02
FEE 30-Dec-96 5.44821089 22.995887 0.23692 0
FEE 30-Dec-97 5.735103544 26.951719 0.21279 0
FEE 30-Dec-98 6.039209756 30.200816 0.19997 0
0
RESULTING VALUE 30-Dec-98 30.200816 92.08963 2781.1820 0
0
10.000 0
FORMULA: 1000*(1+T)= 2781.1820 - (0.85 * 1000 * 0) 0
= 2781.181996
T = 10.77%
R = 178.12%
Global Growth
01-May-90
TO NO. YEARS 8.668
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-90 1000.00 10.000000 100.00000
1 FEE 01-May-91 3.846666667 10.080839 0.38158 0.07
2 FEE 01-May-92 4.037466667 10.501850 0.38445 0.07
3 FEE 01-May-93 4.239714667 11.266332 0.37632 0.06
4 01-May-94 4.454097547 13.335461 0.33400 0.05
5 01-May-95 4.681343399 13.157776 0.35579 0.04
6 01-May-96 4.922224003 16.020396 0.30725 0.03
7 01-May-97 5.177557444 18.017272 0.28737 0.02
8 01-May-98 5.44821089 22.923856 0.23767 0
9 31-Dec-98 5.735103544 24.946249 0.22990 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 24.946249 97.10568 2422.4225
8.668
FORMULA: 1000*(1+T)= 2422.4225
= 2422.422495
T = 10.75%
R = 142.24%
Growth & Income
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 11.847343 84.40711
FEE 30-Dec-89 3.846666667 14.171134 0.27144 0.07
FEE 30-Dec-90 4.037466667 14.226553 0.28380 0.07
FEE 30-Dec-91 4.239714667 16.646541 0.25469 0.06
FEE 30-Dec-92 4.454097547 18.074577 0.24643 0.05
FEE 30-Dec-93 4.681343399 20.425097 0.22920 0.04
FEE 30-Dec-94 4.922224003 20.174957 0.24398 0.03
FEE 30-Dec-95 5.177557444 27.197486 0.19037 0.02
FEE 30-Dec-96 5.44821089 33.173217 0.16424 0
FEE 30-Dec-97 5.735103544 39.951365 0.14355 0
FEE 30-Dec-98 6.039209756 45.740098 0.13203 0
0
RESULTING VALUE 30-Dec-98 45.740098 82.24739 3762.0036 0
0
10.000 0
FORMULA: 1000*(1+T)= 3762.0036 - (0.85 * 1000 * 0) 0
= 3762.003598
T = 14.17%
R = 276.20%
Health Sciences
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 3.846666667 10.847642 0.35461 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 10.847642 99.64539 1080.9175
0.671
FORMULA: 1000*(1+T)= 1080.9175
= 1021.417533
T = 3.21%
R = 2.14%
High Yield
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.623053 94.13490
FEE 30-Dec-89 3.846666667 10.197478 0.37722 0.07
FEE 30-Dec-90 4.037466667 9.075016 0.44490 0.07
FEE 30-Dec-91 4.239714667 12.913446 0.32832 0.06
FEE 30-Dec-92 4.454097547 15.164722 0.29371 0.05
FEE 30-Dec-93 4.681343399 17.878718 0.26184 0.04
FEE 30-Dec-94 4.922224003 17.463689 0.28185 0.03
FEE 30-Dec-95 5.177557444 20.375037 0.25411 0.02
FEE 30-Dec-96 5.44821089 22.627601 0.24078 0
FEE 30-Dec-97 5.735103544 25.531741 0.22463 0
FEE 30-Dec-98 6.039209756 23.761730 0.25416 0
0
RESULTING VALUE 30-Dec-98 23.761730 91.17338 2166.4373 0
0
10.000 0
FORMULA: 1000*(1+T)= 2166.4373 - (0.85 * 1000 * 0) 0
= 2166.437265
T = 8.04%
R = 116.64%
Income
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.149128 98.53063
FEE 30-Dec-89 3.846666667 11.414891 0.33699 0.07
FEE 30-Dec-90 4.037466667 12.079730 0.33423 0.07
FEE 30-Dec-91 4.239714667 13.948230 0.30396 0.06
FEE 30-Dec-92 4.454097547 14.830777 0.30033 0.05
FEE 30-Dec-93 4.681343399 16.284798 0.28747 0.04
FEE 30-Dec-94 4.922224003 15.517532 0.31720 0.03
FEE 30-Dec-95 5.177557444 18.429381 0.28094 0.02
FEE 30-Dec-96 5.44821089 18.722673 0.29100 0
FEE 30-Dec-97 5.735103544 19.920198 0.28790 0
FEE 30-Dec-98 6.039209756 21.283997 0.28374 0
0
RESULTING VALUE 30-Dec-98 21.283997 95.50687 2032.7679 0
0
10.000 0
FORMULA: 1000*(1+T)= 2032.7679 - (0.85 * 1000 * 0) 0
= 2032.767872
T = 7.35%
R = 103.28%
International Growth
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 3.846666667 11.510326 0.33419 0.07
2 FEE 31-Dec-98 4.037466667 13.397132 0.30137 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 13.397132 99.36444 1331.1985
1.993
FORMULA: 1000*(1+T)= 1331.1985
= 1271.69851
T = 12.82%
R = 27.17%
International Growth & Income
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 3.846666667 11.827564 0.32523 0.07
2 FEE 31-Dec-98 4.037466667 12.933302 0.31218 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 12.933302 99.36259 1285.0864
1.993
FORMULA: 1000*(1+T)= 1285.0864
= 1225.586449
T = 10.74%
R = 22.56%
International New Opportunities
27-Jan-97
TO NO. YEARS 1.925
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 27-Jan-97 1000.00 10.040315 99.59847
1 FEE 27-Jan-98 3.846666667 9.682434 0.39728 0.07
2 FEE 31-Dec-98 4.037466667 11.227470 0.35961 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 11.227470 98.84158 1109.7409
1.925
FORMULA: 1000*(1+T)= 1109.7409
= 1050.24087
T = 2.58%
R = 5.02%
Investors
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 3.846666667 11.555901 0.33287 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 11.555901 99.66713 1151.7434
0.671
FORMULA: 1000*(1+T)= 1151.7434
= 1092.243433
T = 14.06%
R = 9.22%
Money Market
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.452470 95.67117
FEE 30-Dec-89 3.846666667 11.221552 0.34279 0.07
FEE 30-Dec-90 4.037466667 11.872995 0.34005 0.07
FEE 30-Dec-91 4.239714667 12.423451 0.34127 0.06
FEE 30-Dec-92 4.454097547 12.710384 0.35043 0.05
FEE 30-Dec-93 4.681343399 12.883009 0.36337 0.04
FEE 30-Dec-94 4.922224003 13.164837 0.37389 0.03
FEE 30-Dec-95 5.177557444 13.685985 0.37831 0.02
FEE 30-Dec-96 5.44821089 14.185720 0.38406 0
FEE 30-Dec-97 5.735103544 14.713631 0.38978 0
FEE 30-Dec-98 6.039209756 15.281182 0.39521 0
0
RESULTING VALUE 30-Dec-98 15.281182 92.01200 1406.0521 0
0
10.000 0
FORMULA: 1000*(1+T)= 1406.0521 - (0.85 * 1000 * 0) 0
= 1406.052057
T = 3.47%
R = 40.61%
New Opportunities
02-May-94
TO NO. YEARS 4.665
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 10.000000 100.00000
1 FEE 02-May-95 3.846666667 11.480807 0.33505 0.07
2 FEE 02-May-96 4.037466667 17.540903 0.23017 0.07
3 FEE 02-May-97 4.239714667 16.286259 0.26032 0.06
4 02-May-98 4.454097547 23.438888 0.19003 0.05
5 31-Dec-98 4.681343399 24.804963 0.18873 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 24.804963 98.79569 2450.6235
4.665
FORMULA: 1000*(1+T)= 2450.6235
= 2416.623502
T = 20.82%
R = 141.66%
New Value
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 3.846666667 11.635120 0.33061 0.07
2 FEE 31-Dec-98 4.037466667 12.150915 0.33228 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 12.150915 99.33711 1207.0368
1.993
FORMULA: 1000*(1+T)= 1207.0368
= 1147.536841
T = 7.15%
R = 14.75%
OTC & Emerging Growth
30-Apr-98
TO NO. YEARS 0.671
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 3.846666667 9.997496 0.38476 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 9.997496 99.61524 995.9029
0.671
FORMULA: 1000*(1+T)= 995.9029
= 936.4029333
T = -9.33%
R = -6.36%
Research
29-Sep-98
TO NO. YEARS 0.255
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-98 1000.00 10.000000 100.00000
1 FEE 31-Dec-98 3.846666667 11.880661 0.32378 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 11.880661 99.67622 1184.2194
0.255
FORMULA: 1000*(1+T)= 1184.2194
= 1124.719433
T = 58.66%
R = 12.47%
Small Cap Value
30-Apr-99
TO NO. YEARS -0.329
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Apr-99 1000.00 #VALUE! #VALUE!
1 FEE 31-Dec-98 3.846666667 #VALUE! #VALUE! 0.07
2 FEE N/A 0 N/A 0.00000 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 #VALUE! #VALUE! #VALUE!
-0.329
FORMULA: 1000*(1+T)= #VALUE!
= #VALUE!
T = #VALUE! R = #VALUE!
Utilities Growth & Income
01-May-92
TO NO. YEARS 6.667
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-92 1000.00 10.000000 100.00000
1 FEE 01-May-93 3.846666667 11.341129 0.33918 0.07
2 FEE 01-May-94 4.037466667 11.210057 0.36016 0.07
3 FEE 01-May-95 4.239714667 11.715598 0.36189 0.06
4 01-May-96 4.454097547 14.280724 0.31190 0.05
5 01-May-97 4.681343399 16.034403 0.29196 0.04
6 01-May-98 4.922224003 20.878099 0.23576 0.03
7 31-Dec-98 5.177557444 22.823874 0.22685 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 22.823874 97.87231 2233.8253
6.667
FORMULA: 1000*(1+T)= 2233.8253
= 2216.825273
T = 12.68%
R = 121.68%
Vista
02-Jan-97
TO NO. YEARS 1.993
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-Jan-97 1000.00 10.000000 100.00000
1 FEE 02-Jan-98 3.846666667 12.069945 0.31870 0.07
2 FEE 31-Dec-98 4.037466667 14.337943 0.28159 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 N/A 0 N/A 0.00000 0.05
5 N/A 0 N/A 0.00000 0.04
6 N/A 0 N/A 0.00000 0.03
7 N/A 0 N/A 0.00000 0.02
8 N/A 0 N/A 0.00000 0
9 N/A 0 N/A 0.00000 0
10 N/A 0 N/A 0.00000 0
11 N/A 0 N/A 0.00000 0
12 N/A 0 N/A 0.00000 0
13 N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-98 14.337943 99.39971 1425.1874
1.993
FORMULA: 1000*(1+T)= 1425.1874
= 1365.68736
T = 16.93%
R = 36.57%
Voyager
30-Dec-88
TO NO. YEARS 10.000
31-Dec-98
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
INIT DEPOSIT 30-Dec-88 1000.00 10.168857 98.33947
FEE 30-Dec-89 3.846666667 13.273971 0.28979 0.07
FEE 30-Dec-90 4.037466667 12.711053 0.31763 0.07
FEE 30-Dec-91 4.239714667 18.223095 0.23266 0.06
FEE 30-Dec-92 4.454097547 19.931256 0.22347 0.05
FEE 30-Dec-93 4.681343399 23.439795 0.19972 0.04
FEE 30-Dec-94 4.922224003 23.435738 0.21003 0.03
FEE 30-Dec-95 5.177557444 32.508129 0.15927 0.02
FEE 30-Dec-96 5.44821089 36.331776 0.14996 0
FEE 30-Dec-97 5.735103544 44.777117 0.12808 0
FEE 30-Dec-98 6.039209756 54.489741 0.11083 0
0
RESULTING VALUE 30-Dec-98 54.489741 96.31803 5248.3444 0
0
10.000 0
FORMULA: 1000*(1+T)= 5248.3444 - (0.85 * 1000 * 0) 0
= 5248.344353
T = 18.03%
R = 424.83%
10.913
FORMULA: 1000*(1+T)= 5402.5852
= 5402.585153
T = 16.72%
R = 440.26%
-----END PRIVACY-ENHANCED MESSAGE-----