Investments in The Guardian C+CSM or any of its investment options are not deposits or obligations of, or guaranteed or endorsed by any bank or depository institution; further, neither the contract nor such investments are insured by the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Association (NCUA), the Federal Reserve Board, or any other government agency.
Investments in any of the variable investment options involve risk, including the possible loss of principal. This information is authorized for use with the public only when preceded or accompanied by a prospectus for The Guardian C + CSM.
Performance data quoted is historical. Past performance is no guarantee of future results. The Guardian C + CSM contract unit values and investment returns will fluctuate to reflect the investment performance of the investment options, and may be higher or lower than the amount invested through purchase payments. Contract owner units, when redeemed, may be worth more or less than the original investment. Investment in any of the variable investment options involves risk, including the possible loss of principal.
Charges and expenses for this variable annuity include: a) the investment division charges consisting of fund-level expenses, which are similar to the charges on traditional mutual funds (these fees range from 0.28% to 1.35% for the year ended 12/31/19 after giving effect to applicable fee waivers, expense reimbursements or reductions, offset arrangements, or custody credits; in the absence of such arrangements these fees would be higher), b) the separate account level charges consisting of the annual mortality and expense risk charge (M&E charge) of 1.55% for each of the first four contract years; 1.45% thereafter and the administrative charge of 0.20%, and c) contract level charges consisting of: i) the $35.00 annual contract fee (fee is waived for contracts with an accumulation value over $100,000), and ii) for Non-Standardized Average Annual Total Returns (adjusted for all charges) and Standardized Average Annual Total Returns only, the contract’s contingent deferred sales charge. The contract’s contingent deferred sales charge is a percentage of the amount withdrawn, in excess of any free withdrawal amount, that consists of premiums that were paid into your contract during the four years prior to the date of the withdrawal. The charge declines annually over a five year period based on the number of full years completed since the premium payment was made in accordance with the following schedule: 4%, 3%, 3%, 2% and 2% from the date of the premium payment, respectively. After a premium payment has been in the contract for four years, the charge is zero.
Please note that performance figures for contract owners who elect an optional rider would be lower to reflect each rider’s applicable annual charges (0.25% of variable investment option assets for the Decade Living Benefit Rider, 0.50% of the Guaranteed Income Base for the Guaranteed Minimum Income Benefit Rider, and for Guaranteed Minimum Withdrawal Benefit riders: Lifetime AssetAccess 0.60%, Spousal AssetAccess 0.75% and Lifetime Focus 0.65%(Single Version) and 0.85% (Spousal Version) of the adjusted Guaranteed Withdrawal Balance.)This annuity may have higher expenses than a similar annuity without an investment credit. Over time, the higher expenses could be more than the value of the credits. Accordingly, you should always consider the expenses and other factors along with the features and enhancements to be sure this annuity meets your financial needs.
The following funds have asset-based distribution fees (12b-1 fees) that were imposed on the dates noted. Returns for these funds prior to the dates on which these fees were imposed do not include the effects of the 12b-1 fees and returns listed would have been lower for these funds if these fees had been in place and reflected in the performance. All time periods for any funds not listed below reflect the effects of any applicable 12b-1 fees.
|AB VPS Sustainable Global Thematic Portfolio (Class B)
|Alger Capital Appreciation Portfolio (Class S)
|Fidelity VIP Balanced Portfolio (Service Class 2)
|Fidelity VIP Government Money Market Portfolio (Service Class 2)
|Fidelity VIP Investment Grade Bond Portfolio (Service Class 2)
|Invesco V.I. American Franchise Fund (Series II)
|Invesco V.I. Core Equity Fund (Series II)
|Janus Henderson Global Technology & Innovation Portfolio Srv Shr
|MFS® Core Equity Portfolio (Service Class)
|MFS® Investors Trust Series (Service Class)
|Templeton Growth VIP (Class 2 Shares)
Certain portfolios may have similar investment objectives and policies and, in some cases, similar names to retail mutual funds managed by the same manager. The portfolios named are not the same funds as the retail funds. As a result, specific investments may be different and investment results may be higher or lower. While all funds involve some risk, including possible loss of principal amount invested, there may be additional risks to consider when investing in certain types of funds or certain types of asset classes that comprise a fund’s portfolio. Below are some common risks associated with certain funds; however, these may not be all of the risks associated with investing in the funds. For information on specific risks associated with the funds available in your contract, please see the fund prospectuses.
[A] Foreign Securities and Emerging Markets Risk. Investments in foreign securities involve special risks, including changes in currency rates, foreign taxation and differences in auditing standards and securities regulations, political uncertainty and greater volatility. These risks are magnified in emerging markets.
[B] Small Cap and Mid Cap Companies Risk. Risks associated with investments in small and mid cap companies include less publicly available information, higher volatility, and less liquidity than investments in larger companies.
[C] Concentration Risk. Investments concentrated in specific industries, market segments, regions or securities may be subject to increased share price volatility.
[D] Debt Securities Risk. Investing in Bond funds or funds that invest any of their assets in debt securities exposes the Policyowner to the general risks of investing in debt markets, such as interest rate, credit, and prepayment risk. Generally, when interest rates rise, bond prices fall, and when interest rates fall, bond prices rise. Therefore, an increase in interest rates would decrease the value of a bond fund's holdings. The ability of an issuer of a debt security to repay principal prior to a security's maturity can cause greater price volatility if interest rates change. Credit risk is the risk that a bond issuer will default by failing to make the required payments on its debt obligations.
[E] High Yield Debt Securities Risk. Investments in high yield bonds or lower rated and unrated debt securities are subject to greater credit risk and price fluctuation than investments in higher-rated securities.
[F] Derivatives Risk. Since the value of a derivative instrument derives from an underlying asset, the use of derivatives involves risks different from, and possibly greater than, the risks associated with investing directly in the underlying assets. Derivatives can be highly volatile, illiquid, and difficult to value.
[G] Alternative Risks. Investing in alternative asset classes involves special risk because they may be highly speculative and leveraged or may use various hedging techniques, like options and derivatives. Hedging techniques could increase losses since they are not reflected in historical standard deviation measurements. Also, there may be unique tax implications if the fund is traded in foreign markets and may be highly dependent on the manager's techniques for investing and selecting appropriate risk. Often, alternative asset classes are subject to less regulation than publicly offered investments because alternatives are not registered under U.S. Securities laws or similar laws in other countries.
[H] Fund of Funds Risk. The risk that the Fund's investment performance and its ability to achieve its investment objective are directly related to and depend on the performance of the underlying securities, such as the closed-end funds or ETFs in which it invests. The Fund's investment in underlying funds exposes the Fund to the risks associated with the types of securities in which the underlying fund invests and the investment techniques that they employ. Market fluctuations will change the weightings of the underlying funds in the Fund's portfolio from their target weightings. The Fund is subject to the risks of the underlying funds in direct proportion to the allocation of its assets among the underlying funds. Shareholders in the Fund will bear the Fund's operating expenses as well as the Fund's proportionate share of the expenses of the underlying funds. It is possible to lose money by investing in underlying funds.
[I] Closed-End Funds Risk. The risk that closed-end funds in which the Fund invests will expose the Fund to negative performance and additional expenses associated with investment in such funds, and increased volatility. Closed-end funds frequently trade at a discount from their net asset value ("NAV"), which may affect whether the Fund will realize gain or loss upon its sale of the closed-end funds' shares. Closed-end funds may employ leverage, which also subjects the closed-end fund to increased risks such as increased volatility.
[J] Exchange-Traded Funds (ETF) Risk. The risk that the ETF will not closely track its benchmark index, or that the value of an ETF will be more volatile than the underlying portfolio of securities the ETF is designed to track, or that the costs to the Fund of owning shares of the ETF will exceed those the Fund would incur by investing in such securities directly.
1Total returns for these investment options reflect the effects of one or more of the following during some or all of the time periods reflected in this report: fee waivers, expense reimbursements or reductions, and offset arrangements. In the absence of such arrangements, total returns would have been lower.
As of May 1, 2022 AB VPS Global Thematic Growth Portfolio (Class B) was renamed AB VPS Sustainable Global Thematic Portfolio (Class B).
Fidelity VIP Government Money Market Portfolio
Yield Based on 7-day period ending
Current: -1.70% Effective: -1.70%
Investments in the Fidelity VIP Government Money Market Portfolio are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. In addition, during extended periods of low interest rates, and partly as a result of asset-based separate account charges, the yield on this investment option may become low and possibly negative. Although the underlying fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Portfolio. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. The 7-day yield quotation is net of all recurring contract fees and charges, is prorated and more closely reflects the current earnings of the Money Market Portfolio than the total return quotation.