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. 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 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 Fund than the total return quotation.
Investments in the Guardian Investor IISM 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 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 Investor IISM Variable Annuity.
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. Contract owner units, when redeemed, may be worth more or less than the original investment.
You can view your annuity account information, including unit values for 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 for further information.
Charges and expenses for the L Series option of 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 1.33% for the year ended 12/31/11 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 1.50% and the administrative charge of 0.25%, 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 four year period based on the number of full years completed since the premium payment was made in accordance with the following schedule: 8%, 7.5%, 6.5%, and 5.5% 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 results for contractowners who elect an enhanced death benefit or other optional rider would be lower if the charges for these features were reflected. These charges are as follows: for the Highest Anniversary Value Death Benefit Rider, 0.40% of variable investment option assets; for the Earnings Benefit Rider, 0.25% of variable investment option assets; for the Guaranteed Lifetime Withdrawal Benefit Rider (GLWB) single life options, a current charge of 0.95% to 1.30% (1.00% to 2.50% maximum) of the adjusted guaranteed withdrawal balance at the time the charge is deducted and, for the GLWB Rider with spousal options, a current charge of 1.05% to 1.55% (2.00% - 3.50% maximum) of the adjusted guaranteed withdrawal balance at the time the charge is deducted. The optional
death benefit features of the GLWB Rider will increase the rider percentage fee by 0.50% (GLWB Step-Up Death Benefit) or 0.60% (GLWB Return of Premium Death Benefit) annually.
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-1fees 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.
|BlackRock Capital Appreciation V.I.Cl III
|BlackRock Large Cap Core V.I. Cl III
|Columbia VP Small Cap Value Cl 2
|Dreyfus VIF Appreciation Svc CL
|Fidelity VIP Contrafund Service Cl 2
|Invesco Van Kampen V.I. Comstock Ses Cl II
|Invesco Van Kampen V.I. Mid Cap Val Ser Cl II
|Invesco V.I. Core Equity Cl II
|Invesco V.I. International Growth Cl II
|MFS® VIT II New Discovery Svc Cl
|MFS® VIT II Technology Svc Cl
|MFS® VIT Research Bond Svc Cl
|MFS® VIT Utilities Svc Cl
|Oppenheimer Global Strategic Inc Svc Cl
|Oppenheimer Main St Sm & Mid Cap VA Svc Cl
|PIMCO VIT Total Return Adv Cl
|Pioneer Equity Income VCT CL II
|Putnam VT Equity Income Cl IB
|Templeton Foreign Securities CL 2
|Templeton Global Bond Sec CL 2
|Franklin US Government CL 2
|IVY VIP MID CAP GROWTH
AIM Variable Insurance Funds (advisor: Invesco Aim Advisors, Inc.) For periods prior to April 30, 2004, performance shown for the AIM V.I. Global Real Estate Fund relates to a predecessor fund advised by IFG. On April 30, 2004, and again on July 3, 2006, the AIM V.I. Global Real Estate Fund changed its investment objective. Performance shown for the fund reflects the investment objective of the fund in effect during the periods shown. Effective September 30, 2002, the AIM V.I. Core Equity Fund changed its investment objective. As a result, performance shown for the fund reflects the investment objective of the fund in effect during the periods shown. Effective May 1, 2006, assets in the AIM V.I. Premier Equity Fund were transferred to the AIM V.I. Core Equity Fund. Performance for the variable
investment option that invests in the AIM V.I. Core Equity Fund reflects returns 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.
Invesco Advisers, Inc.
Effective September 30, 2002, the Invesco V.I. Core Equity Fund (formerly the AIM V.I. Core Equity Fund) changed its investment objective. As a result, performance shown for the fund reflects the investment objective of the fund in effect during the periods shown. Effective May 1, 2006, assets in the AIM V.I. Premier Equity Fund were transferred to the AIM V.I. Core Equity Fund, which subsequently changed its name to the Invesco V.I. Core Equity Fund. Performance for the Invesco V.I. Core Equity Fund reflects returns of the AIM V.I. Premier Equity Fund for time periods up to May 1, 2006, and reflects returns of the Invesco V.I. Core Equity Fund for time periods beginning on and after May 1, 2006. On July 15, 2012, the Invesco Van Kampen V.I. Mid Cap Value Fund changed its name to the Invesco Van Kampen V.I. American Value Fund.
Fidelity Management & Research Company
VIP refers to Variable Insurance Products Fund.
Victory Variable Insurance Funds
Effective as of close of business on July 29, 2016, Victory Capital Management Inc. acquired RS Investment Management Co. LLC, the investment adviser to the RS Variable Products Trust which were subsequently reorganized into the following funds: Victory Sophus Emerging Markets VIP Series; Victory High Yield VIP Series; Victory RS International VIP Series; Victory INCORE Investment Quality Bond VIP Series; Victory RS Large Cap Alpha VIP Series; Victory INCORE Low Duration Bond VIP Series; Victory S&P 500 Index VIP Series; and Victory RS Small Cap Growth Equity VIP Series. Performance for periods prior to October 9, 2006, relates to predecessor funds advised by Guardian Investor Services LLC and performance for periods from October 9 2006 through July 29, 2016 relates to predecessor funds advised by RS Investment Management Co. LLC.
Risk Disclosure/ Footnotes
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 are some additional risks to consider when investing in certain types of funds or certain types of asset classes that comprise a fund’s portfolio. For further information on risks associated with the various funds see the fund prospectuses.
[A] Foreign Securities and Emerging Markets Risk. Investing in International funds or funds that invest any of their assets in foreign securities 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.
[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 contractowner 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. Duration is a measure of bond price sensitivity to a given change in interest rates. Generally, the longer a bond’s duration, the greater is its price sensitivity to a change in interest rates.
However, 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.
[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.
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.
2Fixed Rate Option. GIAC guarantees that premium payments or transfers allocated to the Fixed-Rate Option will earn a minimum annual interest rate of 1%. At our discretion, interest in excess of the minimum 1% may be credited. GIAC reserves the right to change rates prospectively without notice.
All guarantees are backed exclusively by the strength and claims-paying ability of The Guardian Insurance & Annuity Company, Inc. (GIAC). Variable annuities are issued by GIAC, a Delaware corporation, and distributed by Guardian Investor Services LLC (GIS). Both GIAC and GIS are wholly owned subsidiaries of The Guardian Life Insurance Company of America, 7 Hanover Square, New York, NY 10004. Contract provisions and investment options vary by state.
Distributed by: Guardian Investor Services LLC (GIS) 7 Hanover Square, New York, NY 10004.