UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-1737
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
(Exact name of registrant as specified in charter)
8515 E. Orchard Road, Greenwood Village, Colorado 80111
(Address of principal executive offices)
BEVERLY A. BYRNE
Vice-President and Counsel
Great-West Life & Annuity Insurance Company
8515 E. Orchard Road
Greenwood Village, Colorado 80111
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 737-3000
Date of fiscal year end: December 31
Date of reporting period: June 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS
Great-West Variable Annuity Account A
Financial Statements and Financial Highlights for
the Six Months Ended June 30, 2003 and the Year Ended December 31, 2002
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2003
UNAUDITED
- --------------------------------------------------------------------------------
ASSETS:
Investments in securities, market value (1) $ 5,592,015
Cash 115,169
Dividends and interest receivable 12,941
Due from affiliate 341,084
--------------------
Total assets 6,061,209
--------------------
NET ASSETS $ 6,061,209
====================
NET ASSETS REPRESENTED BY:
Accumulation units - 413,964 units at $13.54 $ 5,604,003
Reserves for annuities in course of payment 457,206
--------------------
NET ASSETS $ 6,061,209
====================
(1) Cost of investments in securities: $ 5,178,349
See notes to financial statements.
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2003
UNAUDITED
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 159
Dividends 62,237
------------------
Total income 62,396
------------------
EXPENSES:
Administration 7,510
Mortality risks 10,154
Investment management and advisory services 12,239
Expense risks 1,808
------------------
Total expenses 31,711
------------------
NET INVESTMENT INCOME 30,685
------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 66,262
Change in net unrealized appreciation on investments 370,106
------------------
Net realized and unrealized gain on investments 436,368
------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 467,053
==================
See notes to financial statements.
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED JUNE 30, 2003 AND YEAR ENDED DECEMBER 31, 2002
- --------------------------------------------------------------------------------
2003 2002
----------------- -----------------
UNAUDITED
OPERATIONS:
Net investment income $ 30,685 $ 54,996
Net realized gain (loss) on investments 66,262 (16,445)
Change in net unrealized appreciation (depreciation) on investments 370,106 (733,133)
----------------- -----------------
Net increase (decrease) in net assets resulting from operations 467,053 (694,582)
----------------- -----------------
SHARE TRANSACTIONS:
Surrenders (104,006) (209,228)
Annuity payments (45,451) (112,351)
Death payments (34,187)
Adjustments to net assets allocated to reserves for annuities
in course of payment 35,575 65,777
----------------- -----------------
Net decrease in net assets resulting from share transactions (113,882) (289,989)
----------------- -----------------
Total increase (decrease) in net assets 353,171 (984,571)
NET ASSETS:
Beginning of period 5,708,038 6,692,609
----------------- -----------------
End of period $ 6,061,209 $ 5,708,038
================= =================
OTHER INFORMATION:
SHARES:
Redeemed during the year:
Surrender (8,348) (15,840)
Death (2,436)
----------------- -----------------
Net decrease (8,348) (18,276)
================= =================
See notes to financial statements.
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
- -------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for an accumulation unit for the periods indicated were as
follows:
Six Months Ended Year Ended December 31,
-----------------------------------------------------------------
June 30, 2003 2002 2001 2000 1999 1998
---------------- ------------ ----------- ----------- ----------- -----------
UNAUDITED
Unit Value, Beginning of Period $ 12.4335 $ 13.9968 $ 14.3150 $ 12.4020 $ 11.9530 $ 10.6610
Income from Investment Operations
Net investment income 0.0885 0.1544 0.1532 0.1605 0.1170 0.0840
Net realized and unrealized 1.0154 (1.7177) (0.4714) 1.7525 0.3320 1.2080
gain (loss)
--------------- ------------ ---------- ----------- ----------- -----------
Total Income (Loss) From
Investment Operations w 1.1039 (1.5633) (0.3182) 1.9130 0.4490 1.2920
--------------- ------------ ---------- ----------- ----------- -----------
Unit Value, End of Period $ 13.5374 $ 12.4335 $ 13.9968 $ 14.3150 $ 12.4020 $ 11.9530
=============== ============ ========== =========== =========== ===========
Total Return 8.88% ^ (11.17%) (2.22%) 15.42% 3.76% 12.12%
Net Assets, End of Period $ 5,604,003 $ 5,250,832 $ 6,166,806 $ 6,744,185 $ 7,595,677 $ 8,576,279
Ratio of Expense to
Average Net Assets 1.21% * 1.21% 1.27% 1.20% 1.22% 1.03%
Ratio of Net Investment
Income to
Average Net Assets 1.19% * 0.94% 0.86% 1.40% 0.82% 0.77%
Portfolio Turnover Rate 1.52% ^ 37.55% 14.13% 15.42% 76.26% 51.93%
o Net investment income and realized and unrealized gains (losses) are reflected
in the value of the accumulation units. Dividends are not declared from income
and capital gains are not distributed.
* Annualized
^ Based on operations for the period shown and, accordingly, are not
representative of a full year.
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
- --------------------------------------------------------------------------------
UNAUDITED
1. ORGANIZATION & SIGNIFICANT ACCOUNTING POLICIES
Great-West Variable Annuity Account A (Variable Annuity Account A) is a
separate and distinct investment fund established by The Great-West Life
Assurance Company (Great-West Life). On December 31, 1991, Variable
Annuity Account A was transferred to and the variable annuity contracts
were reinsured by Great-West Life & Annuity Insurance Company (GWL&A), a
wholly-owned subsidiary of Great-West Life. Variable Annuity Account A
is registered as an open-end diversified management investment company
under the Investment Company Act of 1940, and the registration under the
Securities Act of 1933 of the group variable annuity contracts funded by
Variable Annuity Account A became effective on November 27, 1968.
Purchase payments were first placed in Variable Annuity Account A on
January 3, 1969.
Effective April 6, 1984, Great-West Life ceased issuing variable annuity
contracts. Effective May 1, 1987, Great-West Life has not allowed new
participants to be enrolled under existing variable annuity contracts
and effective May 1, 1989, no additional contributions under existing
variable annuity contracts are being accepted.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
the significant accounting policies of Variable Annuity Account A.
Security Valuation
Short-term and money market securities are valued at amortized cost
which approximates market value. Equity securities listed on an
established exchange or on the NASDAQ National Market System are valued
at the last sale price as of the close of business. Fixed income and
other securities are valued by independent pricing services. Securities
for which market quotations are not readily available are valued at fair
value as determined in good faith by or under the direction of the
Variable Annuity Account A Committee.
Security Transactions
Security transactions are accounted for on the date the security is
purchased or sold (trade date). The cost of investments sold is
determined on the basis of specific identification.
Dividend income is accrued as of the ex-dividend date and interest
income, including amortization of discounts and premiums is recorded
daily.
Federal Income Taxes
The Variable Annuity Account A investment income is applied to increase
accumulation unit values. Under existing federal income tax rules,
Variable Annuity Account A investment income is not taxed to the extent
that it is applied to increase accumulation unit values. GWL&A reserves
the right to charge the Variable Annuity Account A if such taxes are
imposed in the future.
Reserves For Annuities In Course of Payment
Net assets allocated to reserves for annuities in course of payment are
computed according to the 2000 Individual Annuitant Mortality Table. The
assumed investment return is 5 percent. The mortality risk is fully
borne by GWL&A and may result in additional amounts being transferred
into the variable annuity account by GWL&A to cover greater longevity of
annuitants than expected. Conversely, if amounts allocated exceed
amounts required, transfers may be made to GWL&A. At June 30, 2003,
Variable Annuity Account A recorded a receivable from GWL&A of $346,964
to cover greater longevity of annuitants than expected.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
GWL&A provides administrative services to Variable Annuity Account A and
has assumed mortality and expense risks of the contracts. Effective
November 1, 1996, a wholly-owned subsidiary of GWL&A, GW Capital
Management, LLC, serves as investment adviser. A daily deduction of
.003285% (an effective annual rate of 1.2064%) is made from the gross
investment income of Variable Annuity Account A. This deduction,
expressed on an annual basis, is broken down as follows: 0.2857% for
administrative expenses, 0.3863% for mortality risks, 0.0688% for
expense risks, and 0.4656% for investment management and advisory
services.
Contract benefit payments are advanced by GWL&A to contract holders on
behalf of Variable Annuity Account A. Variable Annuity Account A
reimburses GWL&A for these payments periodically.
As of June 30, 2003, there were 46 Funds for which the Committee served
as Directors, Trustees, or Members, one of which is Variable Annuity
Account A. The total compensation paid by Variable Annuity Account A and
its affiliated investment companies to the Independent Committee Members
was $41,250 for the period from January 1, 2003 through June 30, 2003.
Certain officers of Variable Annuity Account A are also directors and/or
officers of GWL&A or its subsidiaries. No officer or Interested
Committee Member of Variable Annuity Account A receives any compensation
directly from Variable Annuity Account A.
3. PURCHASES AND SALES OF INVESTMENT SECURITIES
For the six months ended June 30, 2003, the aggregate cost of purchases
and proceeds from sales of investment securities (excluding all U.S.
Government securities and short-term securities) were $98,000 and
$164,394, respectively. For the six months ended June 30, 2003, there
were no purchases or sales of U.S. Government securities.
4. ACCUMULATION UNIT VALUES
VALUATION ACCUMULATION VALUATION ACCUMULATION
DATE UNIT VALUE DATE UNIT VALUE
-------------------------- -------------------------- ------------------------ ---------------------------
January 3, 1969 $ 1.00000000 December 31, 1973 $ .98798465
March 28, 1969 $ 1.07468400 March 29, 1974 $ .92504974
June 27, 1969 $ 1.07583259 June 28, 1974 $ .84636772
September 30, 1969 $ 1.04319336 September 30, 1974 $ .69582357
December 31, 1969 $ 1.05956294 December 31, 1974 $ .76438983
March 31, 1970 $ 1.05322327 March 31, 1975 $ .85484991
June 30, 1970 $ .86337212 June 30, 1975 $ .94523691
September 30, 1970 $ .98057690 September 30, 1975 $ .86720026
December 31, 1970 $ 1.08416020 December 31, 1975 $ .89703274
March 31, 1971 $ 1.28783953 March 31, 1976 $ 1.02654318
June 30, 1971 $ 1.31417688 June 30, 1976 $ 1.04254066
September 30, 1971 $ 1.34600160 September 30, 1976 $ 1.02175714
December 31, 1971 $ 1.40624309 December 31, 1976 $ 1.06312535
March 31, 1972 $ 1.50937876 March 31, 1977 $ .96668709
June 30, 1972 $ 1.46441659 June 30, 1977 $ .97779837
September 29, 1972 $ 1.41141921 September 30, 1977 $ .91543186
December 31, 1972 $ 1.43641768 December 31, 1977 $ .91330430
March 30, 1973 $ 1.14518173 March 31, 1978 $ .88025820
June 29, 1973 $ .94975920 June 30, 1978 $ .94981303
September 28, 1973 $ 1.12752636 September 30, 1978 $ 1.02175412
(Continued)
4. ACCUMULATION UNIT VALUES (Continued)
VALUATION ACCUMULATION VALUATION ACCUMULATION
DATE UNIT VALUE DATE UNIT VALUE
-------------------------- -------------------------- ------------------------ ---------------------------
December 31, 1978 $ .94566769 December 31, 1991 $ 5.17489662
March 31, 1979 $ 1.03700469 March 31, 1992 $ 5.00089395
June 30, 1979 $ 1.03384794 June 30, 1992 $ 4.90045709
September 30, 1979 $ 1.07966980 September 30, 1992 $ 4.94334533
December 31, 1979 $ 1.09861144 December 31, 1992 $ 5.39680799
March 31, 1980 $ 1.02778990 March 31, 1993 $ 5.70268053
June 30, 1980 $ 1.15888482 June 30, 1993 $ 5.91443136
September 30, 1980 $ 1.24125856 September 30, 1993 $ 6.20352631
December 31, 1980 $ 1.34937658 December 31, 1993 $ 6.24551098
March 31, 1981 $ 1.34420316 March 31, 1994 $ 6.07099873
June 30, 1981 $ 1.31151501 June 30, 1994 $ 5.98373289
September 30, 1981 $ 1.21957549 September 30, 1994 $ 6.21184797
December 31, 1981 $ 1.34034823 December 31, 1994 $ 6.07070336
March 31, 1982 $ 1.22060069 March 31, 1995 $ 6.43386353
June 30, 1982 $ 1.21747890 June 30, 1995 $ 6.93539739
September 30, 1982 $ 1.32107048 September 30, 1995 $ 7.34349110
December 31, 1982 $ 1.54829628 December 31, 1995 $ 7.50058268
March 31, 1983 $ 1.72492408 March 31, 1996 $ 7.97167430
June 30, 1983 $ 1.88999803 June 30, 1996 $ 8.16277408
September 30, 1983 $ 1.85391985 September 30, 1996 $ 8.36088935
December 31, 1983 $ 1.86959830 December 31, 1996 $ 8.76699327
March 31, 1984 $ 1.77987261 March 31, 1997 $ 9.10319430
June 30, 1984 $ 1.74123169 June 30, 1997 $ 9.87479147
September 30, 1984 $ 1.89436321 September 30, 1997 $ 10.11055595
December 31, 1984 $ 1.94021457 December 31, 1997 $ 10.66148379
March 31, 1985 $ 2.11639231 March 31, 1998 $ 10.99141808
June 30, 1985 $ 2.31593116 June 30, 1998 $ 11.46520474
September 30, 1985 $ 2.17502453 September 30, 1998 $ 9.63105524
December 31, 1985 $ 2.50415588 December 31, 1998 $ 11.95317612
March 31, 1986 $ 2.92575544 March 31, 1999 $ 12.29221948
June 30, 1986 $ 3.12894373 June 30, 1999 $ 13.52815376
September 30, 1986 $ 2.79849885 September 30, 1999 $ 12.49689723
December 31, 1986 $ 2.92996949 December 31, 1999 $ 12.40218931
March 31, 1987 $ 3.45357315 March 31, 2000 $ 12.53233074
June 30, 1987 $ 3.47692861 June 30, 2000 $ 12.24858685
September 30, 1987 $ 3.58107036 September 30, 2000 $ 13.38557109
December 31, 1987 $ 2.90927633 December 31, 2000 $ 14.31497677
March 31, 1988 $ 3.03211290 March 31, 2001 $ 13.73607754
June 30, 1988 $ 3.14170371 June 30, 2001 $ 14.31362550
December 31, 1988 $ 3.24632490 September 30, 2001 $ 12.85597815
March 31, 1989 $ 3.40048089 December 31, 2001 $ 13.99677835
June 30, 1989 $ 3.66057985 March 31, 2002 $ 15.05815490
September 30, 1989 $ 4.03595925 June 30, 2002 $ 14.19273347
December 31, 1989 $ 4.16667314 September 30, 2002 $ 11.81737430
March 31, 1990 $ 4.10420565 December 31, 2002 $ 12.43353369
June 30, 1990 $ 4.40575331 March 31, 2003 $ 11.56298533
September 30, 1990 $ 3.95067300 June 30, 2003 $ 13.53742761
December 31, 1990 $ 4.09586804
March 31, 1991 $ 4.67731834
June 30, 1991 $ 4.46997251
September 30, 1991 $ 4.70629835 (Concluded)
The Maxim Series Fund
Variable Annuity Account A
COMMON STOCK
AEROSPACE & DEFENSE --- 2.56%
1,350 Lockheed Martin Corp 64,220
3,200 Rockwell Collins 78,816
$143,036
AUTO PARTS & EQUIPMENT --- 3.98%
2,600 Johnson Controls Inc 222,560
$222,560
BANKS --- 15.97%
4,040 Bank One Corp 150,207
2,900 Bank of America Corp 229,187
5,500 Regions Financial Corp 185,790
6,600 SouthTrust Corp 179,520
3,700 Wachovia Corp 147,852
$892,556
BUILDING MATERIALS --- 2.32%
3,500 Vulcan Materials Co 129,745
$129,745
CHEMICALS --- 2.27%
2,500 PPG Industries Inc 126,850
$126,850
COMPUTER HARDWARE & SYSTEMS --- 3.20%
5,600 Dell Computer Corp* 178,976
$178,976
ELECTRIC COMPANIES --- 5.47%
4,300 Consolidated Edison Inc 186,104
3,500 Constellation Energy Group 120,050
$306,154
ELECTRONIC INSTRUMENT & EQUIP --- 1.36%
3,200 Rockwell Automation Inc 76,288
$76,288
ELECTRONICS - SEMICONDUCTOR --- 1.64%
4,400 Intel Corp 91,450
$91,450
FOOD & BEVERAGES --- 1.87%
1,500 Hershey Foods Corp 104,490
$104,490
HOUSEHOLD GOODS --- 6.93%
2,900 Kimberly-Clark Corp 151,206
4,500 Leggett & Platt Inc 92,250
5,900 Maytag Corp 144,078
$387,534
INSURANCE RELATED --- 11.24%
4,100 Allstate Corp 146,165
2,600 Hartford Financial Services Group Inc 130,936
3,800 Lincoln National Corp 135,394
5,800 Torchmark Corp 216,050
$628,545
LEISURE & ENTERTAINMENT --- 3.81%
13,250 AOL Time Warner Inc* 213,193
$213,193
OFFICE EQUIPMENT & SUPPLIES --- 1.89%
10,000 Xerox Corp* 105,900
$105,900
OIL & GAS --- 7.99%
2,424 Exxon Mobil Corp 87,046
2,100 Schlumberger Ltd 99,897
5,600 Sunoco Inc 211,344
2,200 Transocean Sedco Forex Inc* 48,334
$446,621
PHARMACEUTICALS --- 2.92%
2,500 Bristol-Myers Squibb Co 67,875
1,580 Merck & Co Inc 95,669
$163,544
PRINTING & PUBLISHING --- 2.88%
2,100 Gannett Co Inc 161,301
$161,301
RESTAURANTS --- 4.25%
6,600 Brinker International Inc* 237,730
$237,730
RETAIL --- 8.63%
4,400 Albertson's Inc 84,480
6,000 Costco Wholesale Corp* 219,600
5,300 Sears Roebuck & Co 178,292
$482,372
TELEPHONE & TELECOMMUNICATIONS --- 1.14%
2,500 SBC Communications Inc 63,875
$63,875
TEXTILES --- 2.46%
3,900 Liz Claiborne Inc 137,475
$137,475
UTILITIES --- 5.22%
5,000 Duke Energy Corp 99,750
2,644 El Paso Corp 21,364
4,600 NICOR Inc 170,706
$291,820
TOTAL COMMON STOCK --- 100% $5,592,015
(Cost $5,178,349)
TOTAL VARIABLE ANNUITY ACCOUNT A --- 100% $5,592,015
(Cost $5,178,349)
ITEM 2. CODE OF ETHICS
Not Required in Filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not Required in Filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not Required in Filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not Required in Filing.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not Applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES
(a) It is the conclusion of the registrant's principal executive officer and
principal financial officer that the effectiveness of the registrant's current
disclosure controls and procedures (such disclosure controls and procedures
having been evaluated within 90 days of the date of this filing) provide
reasonable assurance that the information required to be disclosed by the
registrant has been recorded, processed, summarized and reported within the time
period specified in the Commission's rules and forms and that the information
required to be disclosed by the registrant has been accumulated and communicated
to the registrant's principal executive officer and principal financial officer
in order to allow timely decisions regarding required disclosure.
(b) There have been no significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS
a) Not Required in Filing.
b) (1) Certifications pursuant to Rule 30a-2 under the Investment Company Act
of 1940 (17 CFR 270.30a-2) attached hereto as Exhibit 31.CERT.
(2) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
attached hereto as Exhibit 32.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, hereunto duly authorized.
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
By: /s/ W.T. McCallum
-------------------------
W.T. McCallum
Chairman of the Committee
Date: August 15, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ W.T. McCallum
-------------------------
W.T. McCallum
Chairman of the Committee
Date: August 15, 2003
By: /s/ G. McDonald
-------------------------
G. McDonald
Treasurer
Date: August 15, 2003