Investments in The Guardian C+CSM variable annuity 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 agency.
Performance data quoted is historical. Past performance is no guarantee of future results. Investment return and principal will fluctuate with changes in the market value of the underlying securities. Investors' units, when redeemed, may be worth more or less than the original investment.
You can view your annuity account information, including unit values from your contract, on My Account Manager. Just click on the Account Access tab above to register or log in to My Account Manager. You may also call 1-800-221-3253, Option 2 for further information.
In addition to the deductions reflected in the first set of returns, these returns also reflect deductions for the following two types of charges, which have been calculated using SEC mandated computation methods:
a) a $35.00 contract administrative fee based on an average contract size (which is waived for contracts with an accumulation value over $100,000).
b) any contingent deferred sales charge (CDSC) that would apply upon the surrender of a contract at the end of the stated period. A CDSC of 3% 2%, 1% and 1% for contract years 1 through 4, respectively, applies to withdrawals of first-year premiums.
These returns are calculated from the date that the investment option was initially offered in the contract. The performance information in this section reflects a very short period of time and should not be used as an indicator to determine investment option selection. In order to assist you in determining which investment options may be suitable for your individual investment objectives and risk tolerance, we have included the average annual returns for the life of each investment option on the non-standardized performance page.
Figures for contract owners who elect an enhanced death benefit or other optional rider would be slightly lower to reflect each rider’s applicable annual charges (0.25% of variable investment option assets for each of the Earnings Benefit Rider and the Decade Living Benefit Rider, 0.25% of variable investment option assets for the Contract Anniversary Enhanced Death Benefit Rider.)
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.
Effective May 1, 2005 the following fund name changes went into effect:
AllianceBernstein Premier Growth Portfolio became AllianceBernstein Large Cap Growth Portfolio; AllianceBernstein Global Thematic Growth Portfolio (formerly AllianceBernstein Global Technology Portfolio); Janus Aspen Capital Appreciation Portfolio became Janus Aspen Forty Portfolio; Janus Aspen Flexible Income Portfolio became Janus Aspen Flexible Bond Portfolio.
- Initial offering of Class B for AllianceBernstein Growth & Income Portfolio, AllianceBernstein Premier Growth, and AllianceBernstein Technology Portfolio took place on 6/1/1999, 7/14/1999, and 9/22/1999, respectively.
- Initial offering of Service Class 2 shares for all of the Fidelity funds took place on 1/12/2000. The initial offering of Class 2 shares for the Templeton Growth Securities Fund took place on 1/6/1999.
- Initial offering of Service Class shares for all of the Janus funds took place on 12/31/1999.
- Initial offering of Service Class shares for all of the MFS funds took place on 5/1/2000.
- Initial offering of Class II shares for the Jennison Portfolio took place on 2/10/2000. For the ValueLine funds, a 12b-1 fee became effective on 9/18/2002.
- Initial offering of Class II shares for Van Kampen LIT Government Portfolio and Van Kampen LIT Growth and Income Portfolio took place on 12/15/2000 and 9/18/2000, respectively.
12b-1 fees were imposed on those dates listed above. Returns prior to those dates do not include the effects of any 12b-1 fees and returns listed would have been lower for each fund if these fees had been in place and reflected in the performance.
All funds involve some risk, including possible loss of principal amount invested. There are some additional risks to consider when investing in certain funds. 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.
- Small-cap investing entails special risks. Small-cap stocks have tended to be more volatile than large-cap stocks. This may happen because small companies may be limited in terms of product lines, financial resources and management. These risks apply to the AIM V.I. Aggressive Growth Fund, RS Small Cap Growth Equity VIP Series, and the MFS Growth Series (formerly MFS Emerging Growth Series).
- Sector related funds primarily limit their investments to companies in specific industries. Therefore, this type of fund may be susceptible to factors affecting these industries and the fund’s value may fluctuate more than a fund that invests in a wider range of industries. In addition, the rapid pace of change within many of these industries tends to create a more volatile environment than in other industries, which may lower the market value of the securities of the companies held in this type of fund. These risks apply to the AllianceBernstein Technology Portfolio and the Templeton Growth Securities Fund.
- International investing has special risks relating to changes in currency rates, foreign taxation, differences in auditing and other financial standards, political uncertainty and greater volatility. These risks are even greater when investing in emerging markets. These risks apply to the Fidelity VIP Contrafund Portfolio, the Fidelity VIP Mid Cap Portfolio, the Templeton Growth Securities Fund, the RS Emerging Markets VIP Fund, the RS International Growth VIP Fund, the Janus Aspen Worldwide Growth Portfolio, the MFS Investors Trust Series, the MFS New Discovery Series and the MFS Strategic Income Series.
- High yield bond investing includes special risks. Investments in lower rated and unrated debt securities are subject to a greater loss of principal and interest than investments in higher rated securities. These risks apply to RS High Yield VIP Series.
- An investment in a bond fund such as RS Low Duration Bond VIP Series or RS High Yield VIP Series exposes you to the general risk of investing in debt markets. Duration is a measure of bond price sensitivity to a given change in interest rates. Generally, the longer a bond’s duration, the greater its price sensitivity to a change in interest rates. Low duration bond funds are not an alternative to money market funds. Low duration bond funds, unlike money market funds, do not seek to maintain a stable net asset value and as a result are a riskier asset class.
* Effective May 1, 2006, pursuant to shareholder approval of a plan of reorganization, assets in the AIM V.I. Aggressive Growth and AIM V.I.Growth Funds were transferred to the AIM V.I. Capital Appreciation Fund. On that date, as a result of the reorganization, the AIM V.I. Aggressive Growth and AIM V.I. Growth Funds ceased operations, and the AIM V.I. Capital Appreciation Fund replaced it as the fund in which the corresponding investment division under this contract invests. Performance for this variable investment option reflects the returns of the AIM V.I. Growth Fund for time periods up to May 1, 2006 and reflects the returns of the AIM V.I. Capital Appreciation Fund for time periods beginning on and after May 1, 2006.
Effective May 1, 2006, pursuant to shareholder approval of a plan of reorganization, assets in the AIM V.I. Premier Equity Fund were transferred to the AIM V.I. Core Equity Fund. On that date, the AIM V.I. Premier Equity Fund ceased operations and the AIM V.I. Core Equity Fund replaced it as the fund in which the corresponding investment division under this contract invests. Performance for this variable investment option reflects the return of the AIM V.I. Premier Equity Fund for time periods up to May 1, 2006 and reflects returns of the AIM V.I. Core Equity Fund for time periods beginning on and after May 1, 2006.