<PAGE> 1
Registration Statement No. 333-00165
811-07487
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
Post-Effective Amendment No. 1 to
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 1
THE TRAVELERS SEPARATE ACCOUNT QP FOR VARIABLE ANNUITIES
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(Exact name of Registrant)
THE TRAVELERS INSURANCE COMPANY
-------------------------------
(Name of Depositor)
ONE TOWER SQUARE, HARTFORD, CONNECTICUT 06183
----------------------------------------------
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including area code: (860) 277-0111
--------------
ERNEST J. WRIGHT
Vice President and Secretary
The Travelers Insurance Company
One Tower Square
Hartford, Connecticut 06183
----------------------------
(Name and Address of Agent for Service)
Approximate Date of Proposed Public Offering: As soon as practicable after
effectiveness of Registration
Statement.
It is proposed that this filing will become effective (check appropriate box):
immediately upon filing pursuant to paragraph (b) of Rule 485
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on pursuant to paragraph (b) of Rule 485
- --- -----------
x 60 days after filing pursuant to paragraph (a)(1) of Rule 485
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on pursuant to paragraph (a)(1) of Rule 485
- --- -----------
If appropriate, check the following box:
This post-effective amendment designates a new effective date for a
- ------
previously filed post-effective amendment.
Pursuant to Rule 24f-2 of the Investment Company Act of 1940, the Registrant
hereby declares that an indefinite amount of Variable Annuity Contracts was
registered under the Securities Act of 1933.
<PAGE> 2
THE TRAVELERS INSURANCE COMPANY
PROSPECTUS:
THE TRAVELERS SEPARATE ACCOUNT QP FOR VARIABLE ANNUITIES
The group variable annuity contracts (the "Contracts") described in this
prospectus are designed to fund plans ("Plans") established under certain
sections of the Internal Revenue Code of 1986 (the "Code").
The Contracts are designed for use in conjunction with qualified pension and
profit-sharing plans, tax deferred annuity plans (for public school teachers and
employees of certain other tax exempt and qualifying employers), and deferred
compensation plans for state and local governments. These Plans also allow for
Third Party Administrator involvement. Amounts held under the Plans may be
entitled to tax-deferred treatment under certain sections of the Code.
The Funding Options available under the Contracts are listed below. They may not
all be available under an employer's plan or in all states. This prospectus is
not valid without the current prospectuses for these Funding Options. A Fixed
Account Option is also available and is described in a separate prospectus.
Unless specified otherwise, this prospectus refers to the Funding Options.
<TABLE>
<S> <C>
Managed Assets Trust Variable Insurance Products Fund II
High Yield Bond Trust Fidelity's Asset Manager Portfolio
Capital Appreciation Fund American Odyssey Funds, Inc.
Dreyfus Stock Index Fund, Inc. American Odyssey Core Equity Fund
Travelers Series Trust American Odyssey Emerging Opportunities Fund
U.S. Government Securities Portfolio American Odyssey International Equity Fund
Utilities Portfolio American Odyssey Long-Term Bond Fund
Social Awareness Stock Portfolio American Odyssey Intermediate-Term Bond Fund
Templeton Variable Products Series Fund American Odyssey Short-Term Bond Fund
Templeton Bond Fund The Travelers Series Fund, Inc.
Templeton Stock Fund Smith Barney Income and Growth Portfolio
Templeton Asset Allocation Fund Alliance Growth Portfolio
Variable Insurance Products Fund Smith Barney International Equity Portfolio
Fidelity's High Income Portfolio Putnam Diversified Income Portfolio
Fidelity's Growth Portfolio Smith Barney High Income Portfolio
Fidelity's Equity Income Portfolio MFS Total Return Portfolio
Smith Barney Money Market Portfolio
</TABLE>
This prospectus sets forth the information concerning the Separate Account that
investors ought to know before investing. Additional information about the
Separate Account has been filed with the Securities and Exchange Commission and
is available without charge upon request. To obtain the Statement of Additional
Information ("SAI") send a written request to The Travelers Insurance Company,
Attn: Annuity Services, One Tower Square, Hartford, CT 06183-5030. The Table of
Contents for the SAI dated , 1996 may be found on page 33 of this
prospectus. The SAI is incorporated by reference to this prospectus. For more
information about the Contract, contact your registered representative, or write
to us at the above address.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
AN INVESTMENT IN THE SMITH BARNEY MONEY MARKET PORTFOLIO IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT.
THIS PROSPECTUS IS VALID ONLY WHEN ACCOMPANIED BY THE CURRENT PROSPECTUSES FOR
THE FUNDING OPTIONS. THE PROSPECTUSES FOR THE SEPARATE ACCOUNT AND THE FUNDING
OPTIONS SHOULD BE READ AND RETAINED FOR FUTURE REFERENCE.
VARIABLE ANNUITY CONTRACTS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR ENDORSED OR
GUARANTEED BY ANY BANK, NOR ARE THEY FEDERALLY INSURED OR OTHERWISE PROTECTED BY
THE FDIC, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY; THEY ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTMENT.
PROSPECTUS DATED:
<PAGE> 3
TABLE OF CONTENTS
<TABLE>
<S> <C>
GLOSSARY OF SPECIAL TERMS.............................................................. 4
SUMMARY................................................................................ 6
FEE TABLE.............................................................................. 8
INTRODUCTION........................................................................... 13
THE CONTRACTS.......................................................................... 13
General.............................................................................. 13
Allocated Contracts.................................................................. 13
Unallocated Contracts................................................................ 13
Right to Return...................................................................... 13
OPERATION OF THE CONTRACT.............................................................. 14
Crediting Purchase Payments.......................................................... 14
Transfers of Cash Value Between Funding Options...................................... 14
Dollar Cost Averaging................................................................ 14
Asset Allocation Advice.............................................................. 14
Transfers from Funding Options to Contracts Not Issued by Us......................... 15
Transfers to or from Other Contracts Issued by Us.................................... 15
Transfers from Contracts Not Issued by Us............................................ 15
Contract and Participant's Individual Account Termination............................ 15
Account Value........................................................................ 16
Accumulation Unit Value.............................................................. 16
PAYMENT OF BENEFITS.................................................................... 16
Death Benefits under an Allocated Contract........................................... 16
Election of Settlement Options....................................................... 17
Minimum Amounts...................................................................... 17
Misstatement......................................................................... 17
Retired Life Certificate............................................................. 17
Allocation of Cash Value During the Annuity Period................................... 18
Annuity Options...................................................................... 18
Variable Annuity..................................................................... 19
Amount of First Payment........................................................... 19
Annuity Unit Value................................................................ 19
Initial Payment and Number of Annuity Units....................................... 19
Amount of Subsequent Payments..................................................... 19
Fixed Annuity........................................................................ 19
CHARGES UNDER THE CONTRACT............................................................. 19
Sales Charges........................................................................ 19
Free Withdrawal Allowance......................................................... 20
Mortality and Expense Risk Charge.................................................... 20
Funding Option Charges............................................................... 21
</TABLE>
2
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<TABLE>
<S> <C>
Administrative Charges............................................................... 21
Semiannual Policy Fee............................................................. 21
Administrative Expense............................................................ 21
Premium Tax Deductions............................................................... 22
TPA Administrative Charges........................................................... 22
THE COMPANY, THE SEPARATE ACCOUNT AND THE FUNDING OPTIONS.............................. 22
The Company.......................................................................... 22
The Separate Account................................................................. 22
The Funding Options.................................................................. 23
Investment Advisers............................................................... 26
PERFORMANCE INFORMATION................................................................ 27
FEDERAL TAX CONSIDERATIONS............................................................. 28
General.............................................................................. 28
Ownership of the Investments......................................................... 28
Section 403(b) Plans and Arrangements................................................ 28
Qualified Pension and Profit-Sharing Plans........................................... 29
Section 457 Plans.................................................................... 29
The Employee Retirement Income Security Act of 1974.................................. 30
Federal Income Tax Withholding....................................................... 30
Tax Advice........................................................................... 31
MISCELLANEOUS.......................................................................... 31
Voting Rights........................................................................ 31
Distribution of the Contracts........................................................ 32
Postponement of Payment (Emergency Procedure)........................................ 32
Contract Modification................................................................ 32
Legal Proceedings.................................................................... 32
APPENDIX A: TABLE OF CONTENTS TO STATEMENT OF ADDITIONAL INFORMATION................... 33
</TABLE>
3
<PAGE> 5
GLOSSARY OF SPECIAL TERMS
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ACCUMULATION PERIOD: The period before the commencement of Annuity payments.
ACCUMULATION UNIT: An accounting unit of measure used to calculate values before
Annuity payments begin.
ANNUITANT: A Person on whose life the Annuity payments are to be made under a
Contract.
ANNUITY: Payment of income for a stated period or amount.
ANNUITY COMMENCEMENT DATE: The date on which Annuity payments are to begin.
ANNUITY PERIOD: The period following the commencement of Annuity payments.
BENEFICIARY(IES): The person(s) or trustee designated to receive contract values
in the event of the Participant's or Annuitant's death.
CASH SURRENDER VALUE: The Cash Value less any amounts deducted upon surrender
and any applicable premium tax.
CASH VALUE: The value of the Accumulation Units in Your Account or a
Participant's Individual Account less any reductions for administrative charges.
Sometimes referred to as "Account Value."
CODE: The Internal Revenue Code of 1986, as amended.
COMMISSION: Securities and Exchange Commission.
COMPANY (WE, US, OUR): The Travelers Insurance Company.
COMPETING FUND: Any investment option under the Plan, which in our opinion,
consists primarily of fixed income securities and/or money market instruments.
CONTRACT DATE: The date on which the Contract becomes effective, as shown on the
Contract.
CONTRACT OWNER (YOU, YOUR): The employer or entity owning the Contract.
CONTRACT YEAR: The twelve month period commencing with the Contract Date or with
any anniversary thereof.
DUE PROOF OF DEATH: (i) a copy of a certified death certificate; (ii) a copy of
a certified decree of a court of competent jurisdiction as to the finding of
death; (iii) a written statement by a medical doctor who attended the deceased;
or (iv) any other proof satisfactory to us.
EXCESS PLAN CONTRIBUTIONS: Plan contributions including excess deferrals, excess
contributions, excess aggregate contributions, excess annual additions, and
excess nondeductible contributions that require correction by the Qualified
Plan.
FIXED ANNUITY: An Annuity with payments which remain fixed as to dollar amount
throughout the payment period and which do not vary with the investment
experience of a Separate Account.
FUNDING OPTIONS: The variable investment options to which Purchase Payments
under the Contract may be allocated.
GENERAL ACCOUNT: The Company's General Account in which amounts are held if
directed to the Fixed Account during the Accumulation Period and in which
reserves are maintained for Fixed Annuities during the Annuity Period.
HOME OFFICE: The Travelers Insurance Company, One Tower Square, Hartford, CT
06183
PARTICIPANT: An eligible person who is a member in the Qualified Plan.
PARTICIPANT'S INDIVIDUAL ACCOUNT: An account to which Accumulation Units are
credited to a Participant or Beneficiary under the Contract.
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<PAGE> 6
PURCHASE PAYMENTS: Payments made to the Contract.
QUALIFIED PLAN: An employer's voluntary retirement plan which qualifies for
special tax treatment under a particular section of the Internal Revenue Code.
SEPARATE ACCOUNT: The Travelers Separate Account QP for Variable Annuities.
THIRD PARTY ADMINISTRATOR ("TPA"): An entity which has contracted with the
Contract Owner to provide administrative and/or distribution services for the
Plan.
VALUATION DATE: A day on which the New York Stock Exchange is open for business.
The value of the Separate Account is determined at the close of the New York
Stock Exchange on such days.
VALUATION PERIOD: The period between the end of one Valuation Date and the end
of the next Valuation Date.
VARIABLE ANNUITY: An Annuity providing for payments varying in amount in
accordance with the investment experience of the assets held in the underlying
securities of the Separate Account.
WRITTEN REQUEST: A written form satisfactory to us and received at the Home
Office.
YOUR ACCOUNT: Accumulation Units credited to you under this Contract.
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<PAGE> 7
SUMMARY
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CONTRACTS OFFERED
The Contracts are designed for use in conjunction with qualified pension or
profit-sharing plans, tax deferred annuity plans (for public school teachers and
employees and employees of certain other tax exempt and qualifying employers)
and deferred compensation plans for state and local governments. The minimum
Purchase Payment allowed is an average of $1,000 annually, per Participant's
Individual Account or $10,000 annually per Contract.
Because of the size of these Contracts, the possible involvement of TPAs, the
allocated or unallocated nature of the Contract and a competitive bidding
process which may include negotiation, many of the charges imposed in the
Contract are likely to vary from one Contract to the next. The Contract design
allows the Company maximum flexibility, within the limitations imposed by law,
to "custom design" a charge structure which is likely to be acceptable to a
particular prospective Contract Owner.
RIGHT TO RETURN
For Contracts in used with deferred compensation plans, tax-deferred annuity
plans, and combined qualified plan/deferred annuity plans, you may return the
Contract and receive a full refund of the Cash Value (including charges) within
ten days after the Contract is delivered to you, unless state law requires a
longer period. (See "Right to Return," page 13.)
ASSET ALLOCATION
Some Contract Owners and/or Participants may elect to enter into an asset
allocation investment advisory agreement which is fully described, including
associated fees, in a separate disclosure statement. (See "Asset Allocation
Advice" on page 14.)
DEATH BENEFITS
A death benefit is provided in the event of death of the Participant under a
Participant's Individual Account prior to the earlier of the Participant's 75th
birthday or the Annuity Commencement Date. (See "Death Benefits under an
Allocated Contract" on page 16.)
ANNUITY OPTIONS
The Contract Owner selects an Annuity Commencement Date and an Annuity Option
for a Participant as provided by the Plan. The Contract contains six optional
annuity forms, which may be selected on either a fixed or variable annuity
basis, or a combination thereof. (See "Payment of Benefits" on page 16.)
CHARGES AND FEES
Maximum levels for sales-related expenses, mortality and expense risk charges
and administrative expense charges are set forth in this prospectus. These
charges, as well as allocation and transfer fees are subject to negotiation or a
competitive bidding process, or both, with the prospective Contract Owner prior
to the issuance of a Contract.
The Company will charge a surrender charge or a contingent deferred sales
charge, as negotiated. The maximum contingent deferred sales charge is 5.0% of
each Purchase Payment for a period of five years from the date the Purchase
Payment was made. The maximum surrender charge is 5% of the amount surrendered
in the first two Contract Years, up to 4% in years three and four; up to 3% in
years five and six; up to 2% in years seven and eight and 0% beginning in the
ninth year. Any applicable sales charge will not exceed 8.5% of the aggregate
amount of the Purchase Payments made.
6
<PAGE> 8
The Company will make a daily charge against the value of the Contract held in
the Separate Account for the Mortality and Expense Risk Charge. The maximum rate
is 1.20% annually. (See "Mortality and Expense Risk Charge" on page 20.)
The Company may also charge a fee of .10% for administrative expenses under the
Contract as well as a Semiannual Policy Fee (for allocated Contracts) of $15.
Deductions for the payment of any premium taxes that may be levied against the
Contract will be made as appropriate. (See "Charges Under the Contract" on page
19.)
7
<PAGE> 9
FEE TABLE
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The purpose of this Fee Table is to assist Contract Owners in understanding the
various maximum costs and expenses that Contract Owners or Participants will
bear, directly or indirectly, under the Contract. The information listed
reflects expenses of the Separate Account as well as of the Funding Options.
Except as noted, the fees are based on the most recent fiscal year end of each
option. For additional information regarding the charges and deductions assessed
under the Contract, including possible waivers or reductions of these expenses,
see "Charges Under the Contract," page 19. Expenses shown do not include premium
taxes, which may be applicable.
MAXIMUM CONTRACT OWNER TRANSACTION CHARGES
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
YEARS SINCE
PURCHASE PAYMENT
CONTINGENT DEFERRED SALES CHARGE MADE PERCENTAGE
----------------------------------------------------------------------------------
<S> <C> <C>
As a percentage of purchase payments 0-5 5%
6+ 0%
OR
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
SURRENDER CHARGE CONTRACT YEAR PERCENTAGE
----------------------------------------------------------------------------------
<S> <C> <C>
As a percentage of amount surrendered 1-2 5%
3-4 4%
5-6 3%
7-8 2%
9+ 0%
</TABLE>
MAXIMUM CONTRACT ADMINISTRATIVE CHARGE: ALLOCATED CONTRACTS ONLY
<TABLE>
<S> <C> <C>
Semiannual Contract Administrative Charge $ 15
AND/OR
Funding Option Administrative Charge .10%
(As a percentage of amounts allocated to the variable funding
options under allocated contracts)
</TABLE>
MAXIMUM SEPARATE ACCOUNT ANNUAL EXPENSES
<TABLE>
<S> <C> <C>
Mortality and Expense Risk Fees 1.20%
</TABLE>
(As a percentage of average daily net assets of the Separate Account)
8
<PAGE> 10
FUNDING OPTION EXPENSES
(as a percentage of average net assets of the Funding Option based on most
recent fiscal year end of each)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
TOTAL
MANAGEMENT FUNDING OPTION
FEE EXPENSES
OTHER
EXPENSES
(AFTER REIMBURSEMENT)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Capital Appreciation Fund 0.75% 0.10% 0.85%
High Yield Bond Trust 0.50% 0.75%(1) 1.25%
Managed Assets Trust 0.50% 0.08% 0.58%
U.S. Government Securities Portfolio 0.32% 0.24% 0.56%
Social Awareness Stock Portfolio 0.65% 0.60%(1) 1.25%
Utilities Portfolio 0.65% 0.60%(1) 1.25%
Templeton Bond Fund 0.50% 0.28% 0.78%
Templeton Stock Fund 0.47% 0.19% 0.66%
Templeton Asset Allocation Fund 0.48% 0.18% 0.66%
Fidelity's High Income Portfolio 0.60% 0.11%(2) 0.71%
Fidelity's Equity-Income Portfolio 0.51% 0.10%(2) 0.61%
Fidelity's Growth Portfolio 0.61% 0.09%(2) 0.70%
Fidelity's Asset Manager Portfolio 0.71% 0.08%(2) 0.79%
Dreyfus Stock Index Fund 0.25% 0.14%(3) 0.39%
American Odyssey International Equity Fund 0.68% 0.30%(4) 0.98%
American Odyssey Emerging Opportunities Fund 0.63% 0.14%(4) 0.77%
American Odyssey Core Equity Fund 0.59% 0.11%(4) 0.70%
American Odyssey Long-Term Bond Fund 0.50% 0.16%(4) 0.66%
American Odyssey Intermediate-Term Bond Fund 0.50% 0.18%(4) 0.68%
American Odyssey Short-Term Bond Fund 0.50% 0.25%(4) 0.75%
Smith Barney Income and Growth Portfolio 0.65% 0.08%(5) 0.73%
Alliance Growth Portfolio 0.80% 0.10%(5) 0.90%
Smith Barney International Equity Portfolio 0.90% 0.54%(6) 1.44%
Putnam Diversified Income Portfolio 0.75% 0.22%(5) 0.97%
Smith Barney Money Market Portfolio 0.60% 0.05%(5) 0.65%
Smith Barney High Income Portfolio 0.60% 0.10%(5) 0.70%
MFS Total Return Portfolio 0.80% 0.15%(5) 0.95%
</TABLE>
(1) Other Expenses take into account the current expense reimbursement
arrangement with the Company. The Company has agreed to reimburse each Fund
for the amount by which its aggregate expenses (including the management
fee, but excluding brokerage commissions, interest charges and taxes)
exceeds 1.25%. (This agreement may be terminated by either party upon 60
days' notice.) Without such arrangement, Other Expenses would have been
0.78%, 1.10% and 0.62% for High Yield Bond Trust, Social Awareness Stock
Portfolio, and Utilities Portfolio, respectively.
(2) No reimbursement arrangement affected the Equity-Income Portfolio and the
Growth Portfolio. A portion of the brokerage commissions the Fund paid was
used to reduce its expenses. Such reduction may not be in effect on an
ongoing basis. Without this reduction, Total Underlying Fund Expenses would
have been: High Income Portfolio, 0.71% (there were brokerage commisssions
paid, but it did not affect the ratio) and Asset Manager Portfolio, 0.81%.
(3) The administrator and investment adviser have agreed to reimburse the Fund
for expenses in excess of 0.40%. This agreement is subject to termination by
the Board upon 180 days' notice. The Management Fee and Other Expenses
before reimbursement were 0.17% and 0.25%, respectively. The Management Fee
prior to November 13, 1995 was .15%. On that date, a new Management
Agreement became effective with a Management Fee of 0.245%.
(4) Total Underlying Fund Expenses do not take into account the expense
limitations agreed to by the Manager. The Manager anticipates that as of May
1996, it will no longer waive the fees or reimburse the expenses for the
International Equity Fund, the Emerging Opportunities Fund, the
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<PAGE> 11
Core Equity Fund, the Long-Term Bond Fund, and the Intermediate-Term Bond
Fund. Total Underlying Fund Expenses, which reflect the repayment to the
Manager of prior fees waived and expenses reimbursed, were 1.08%, 0.77%,
0.70%, 0.70%, and 0.75% respectively.
The Manager has agreed to continue, at least until May 1, 1997, to waive fees
or reimburse expenses to the extent the Short-Term Bond Fund's total expense
ratio exceeds 0.75%. Thereafter, the Fund is required to reimburse the Manager
for any fees waived or expenses it reimbursed provided that this reimbursement
by the Fund does not cause the total expense ratio to exceed the expense
limitations above. Without these expense limitations and/or Manager
reimbursements, Other Expenses of the Short-Term Bond Fund would have been
0.26%. Such limitations and agreements are determined annually.
If the CHART asset allocation program is elected, an additional fee of not
more than 1.50% will apply. If elected, total maximum underlying fees for the
American Odyssey Funds would be: International Equity, 2.48%; Emerging
Opportunities, 2.27%; Core Equity 1.20%; Long-Term Bond, 2.16%;
Intermediate-Term Bond, 2.18%; Short-Term Bond, 2.25%.
(5) Total Underlying Fund Expenses are as of October 31, 1995, (the Fund's
fiscal year end) taking into account the current expense limitations agreed
to by the Manager. The Manager waived all of its fees for the period and
reimbursed the Portfolios for their expenses. If such fees were not waived
and expenses were not reimbursed, Total Underlying Fund Expenses would have
been as follows: Smith Barney Income and Growth, 0.94%; Alliance Growth
Portfolio, 0.97%; Putnam Diversified Income Portfolio, 1.31%; Smith Barney
Money Market Portfolio, 0.94%; Smith Barney High Income Portfolio, 1.07%;
and MFS Total Return Portfolio, 1.06%. Such agreements may be terminated
subject to approval by the Board.
(6) During the fiscal year ended October 31, 1995, the Smith Barney
International Equity Portfolio earned credits from the Custodian which
reduced the service fees incurred. When these credits are taken into
consideration, Total Underlying Fund Expenses for these Portfolios is 1.21%.
10
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EXAMPLE WITH DEFERRED SALES CHARGES (PERCENTAGE OF PURCHASE PAYMENT)*
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
<TABLE>
<CAPTION>
A $1,000 investment would be subject If the Contract is NOT surrendered at
to the following expenses, assuming the end of the period shown, a
a 5% annual return on assets, if the $1,000 investment would be subject
Contract is surrendered at the end to the following expenses, assuming
of the period shown**: a 5% annual return:
- --------------------------------------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital Appreciation Fund $ 73 $ 120 $ 170 $257 $ 23 $ 70 $ 120 $257
High Yield Bond Trust 77 132 190 297 27 82 140 297
Managed Assets Trust 70 112 156 230 20 62 106 230
U.S. Government Securities Portfolio 70 111 155 227 20 61 105 227
Social Awareness Stock Portfolio 77 132 190 297 27 82 140 297
Utilities Portfolio 77 132 190 297 27 82 140 297
Templeton Bond Fund 72 118 166 250 22 68 116 250
Templeton Stock Fund 71 114 160 238 21 64 110 238
Templeton Asset Allocation Fund 71 114 160 238 21 64 110 238
Fidelity's High Income Portfolio 71 116 163 243 21 66 113 243
Fidelity's Equity-Income Portfolio 70 113 158 233 20 63 108 233
Fidelity's Growth Portfolio 71 115 162 242 21 65 112 242
Fidelity's Asset Manager Portfolio 72 118 167 251 22 68 117 251
Dreyfus Stock Index Fund 68 106 146 209 18 56 96 209
American Odyssey Funds(1):
International Equity Fund 74 124 177 271 24 74 127 271
Emerging Opportunities Fund 72 118 166 249 22 68 116 249
Core Equity Fund 71 115 162 242 21 65 112 242
Long-Term Bond Fund 71 114 160 238 21 64 110 238
Intermediate-Term Bond Fund 71 115 161 240 21 65 111 240
Short-Term Bond Fund 72 117 165 247 22 67 115 247
American Odyssey Funds(2):
International Equity Fund 86 161 237 388 36 111 187 388
Emerging Opportunities Fund 84 155 227 369 34 105 177 369
Core Equity Fund 84 153 224 363 34 103 174 363
Long-Term Bond Fund 83 152 222 359 33 102 172 359
Intermediate-Term Bond Fund 83 152 223 361 33 102 173 361
Short-Term Bond Fund 84 154 226 368 34 104 176 368
Smith Barney Income and Growth Portfolio 72 116 164 245 22 66 114 245
Alliance Growth Portfolio 73 122 173 263 23 72 123 263
Smith Barney International Equity Portfolio 79 138 199 316 29 88 149 316
Putnam Diversified Income Portfolio 74 124 176 270 24 74 126 270
Smith Barney Money Market Portfolio 71 114 160 237 21 64 110 237
Smith Barney High Income Portfolio 71 115 162 242 21 65 112 242
MFS Total Return Portfolio 74 123 175 268 24 73 125 268
</TABLE>
- ---------------
* The Example reflects the $15 Semiannual Contract Fee as an annual charge of
0.09% of assets.
** The applicable sales charge may be waived upon annuitization. (See "Charges
Under the Contract," page 19.)
(1) Reflects expenses that would be incurred for those who DO NOT participate
in the CHART Asset Allocation program.
(2) Reflects expenses that would be incurred for those who DO participate in
the CHART Asset Allocation program.
11
<PAGE> 13
EXAMPLE WITH SURRENDER CHARGES (PERCENTAGE OF AMOUNT SURRENDERED)*
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
<TABLE>
<CAPTION>
A $1,000 investment would be subject If the Contract is NOT surrendered at
to the following expenses, assuming the end of the period shown, a
a 5% annual return on assets, if the $1,000 investment would be subject
Contract is surrendered at the end to the following expenses, assuming
of the period shown**: a 5% annual return:
- --------------------------------------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital Appreciation Fund $ 74 $ 113 $ 154 $257 $ 23 $ 70 $ 120 $257
High Yield Bond Trust 78 125 174 297 27 82 140 297
Managed Assets Trust 72 106 141 230 20 62 106 230
U.S. Government Securities Portfolio 71 105 140 227 20 61 105 227
Social Awareness Stock Portfolio 78 125 174 297 27 82 140 297
Utilities Portfolio 78 125 174 297 27 82 140 297
Templeton Bond Fund 73 111 151 250 22 68 116 250
Templeton Stock Fund 72 108 145 238 21 64 110 238
Templeton Asset Allocation Fund 72 108 145 238 21 64 110 238
Fidelity's High Income Portfolio 73 109 147 243 21 66 113 243
Fidelity's Equity-Income Portfolio 72 106 143 233 20 63 108 233
Fidelity's Growth Portfolio 73 109 147 242 21 65 112 242
Fidelity's Asset Manager Portfolio 74 112 151 251 22 68 117 251
Dreyfus Stock Index Fund 70 100 132 209 18 56 96 209
American Odyssey Funds(1):
International Equity Fund 75 117 161 271 24 74 127 271
Emerging Opportunities Fund 73 111 150 249 22 68 116 249
Core Equity Fund 73 109 147 242 21 65 112 242
Long-Term Bond Fund 72 108 145 238 21 64 110 238
Intermediate-Term Bond Fund 72 108 146 240 21 65 111 240
Short-Term Bond Fund 73 111 149 247 22 67 115 247
American Odyssey Funds(2):
International Equity Fund 87 153 219 388 36 111 187 388
Emerging Opportunities Fund 85 147 210 369 34 105 177 369
Core Equity Fund 85 145 207 363 34 103 174 363
Long-Term Bond Fund 84 144 205 359 33 102 172 359
Intermediate-Term Bond Fund 84 144 206 361 33 102 173 361
Short-Term Bond Fund 85 146 209 368 34 104 176 368
Smith Barney Income and Growth Portfolio 73 110 148 245 22 66 114 245
Alliance Growth Portfolio 75 115 157 263 23 72 123 263
Smith Barney International Equity Portfolio 80 130 183 316 29 88 149 316
Putnam Diversified Income Portfolio 75 117 160 270 24 74 126 270
Smith Barney Money Market Portfolio 72 108 145 237 21 64 110 237
Smith Barney High Income Portfolio 73 109 147 242 21 65 112 242
MFS Total Return Portfolio 75 116 159 268 24 73 125 268
</TABLE>
- ---------------
* The Example reflects the $15 Semiannual Contract Fee as an annual charge of
0.09% of assets.
** The applicable sales charge may be waived upon annuitization. (See "Charges
Under the Contract," page 19.)
(1) Reflects expenses that would be incurred for those who DO NOT participate
in the CHART Asset Allocation program.
(2) Reflects expenses that would be incurred for those who DO participate in
the CHART Asset Allocation program.
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<PAGE> 14
INTRODUCTION
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This prospectus has been designed to provide all the necessary information to
make a decision on purchasing Contracts issued in conjunction with qualified
pension and profit-sharing plans, tax deferred annuity plans (for public school
teachers and employees and employees of certain other tax exempt and qualifying
employers) and deferred compensation plans for state and local governments. This
prospectus describes only the elements of the variable Contracts. Please read
the Glossary of Special Terms prior to reading this prospectus to become
familiar with the terms being used.
THE CONTRACTS
- --------------------------------------------------------------------------------
GENERAL
The Contracts, issued on a group basis, are designed for use only with plans
which qualify for special tax treatment under the Internal Revenue Code, such as
tax deferred annuity plans for public school teachers and employees and
employees of certain other tax-exempt organizations; pension and profit-sharing
plans; and deferred compensation plans for state and local governments.
Purchase Payments may be allocated to your choice of one or more Funding
Options. Purchase Payments (net of any premium taxes due) are applied to
purchase Separate Account Accumulation Units of the appropriate Funding Option.
The Accumulation Unit value will be determined as of the end of the Valuation
Period during which the payments were received. The value of your investment
during the Accumulation Period will vary in accordance with the net income and
performance of each Funding Option's individual investments. While you will not
receive any distributions from the Funding Options, any such distributions would
be reflected in the value of that Funding Option's corresponding Accumulation
Unit. During the Variable Annuity payout period, both your Annuity payments and
reserve values will vary in accordance with these factors.
The Contracts may be issued on either an allocated or an unallocated basis. Both
the allocated and unallocated contracts provide for fixed (General Account) and
variable (Separate Account) accumulations and annuity payouts.
ALLOCATED CONTRACTS
A group allocated Contract will cover all present and future Participants under
the Contract. A Participant under an allocated Contract may receive a
certificate which evidences participation in the Contract.
UNALLOCATED CONTRACTS
We offer an unallocated annuity Contract, designed for use with certain
Qualified Plans where the employer has secured the services of a TPA.
The Contracts will be issued to an employer or the trustee(s) or custodian of an
employer's Qualified Plan. All Purchase Payments are held under the Contract, as
directed by the Contract Owner. There are no individual allocations under the
unallocated Contracts for individual participants in the Qualified Plan.
RIGHT TO RETURN
For Contracts in use with deferred compensation plans, tax-deferred annuity
plans, and combined qualified plans/tax deferred annuity plans, you may return
the Contract for a full refund of the Cash Value (including charges) within ten
days after you receive it (the "free-look period"). Where state law requires a
longer free look period, or the return of Purchase Payments, the Company will
comply. The Contract Owner bears the investment risk during the free-look
period;
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<PAGE> 15
therefore, the Cash Value returned may be greater or less than your Purchase
Payment. All Cash Values will be determined as of the next valuation following
the Company's receipt of your written request for refund.
OPERATION OF THE CONTRACT
- --------------------------------------------------------------------------------
CREDITING PURCHASE PAYMENTS
The Purchase Payments to Your Account or to a Participant's Individual Account
under a Contract are applied to purchase Accumulation Units of the selected
Funding Options. With respect to an initial Purchase Payment, the Purchase
Payment is credited to the applicable account within two business days of our
receipt of a properly completed application or purchase order form and the
initial Purchase Payment. If an application or any other information provided is
incomplete when received, the Purchase Payment will be credited to the
applicable account within five business days. If an initial Purchase Payment is
not credited within five business days, it will be immediately returned unless
you have been informed of the delay and request that the Purchase Payment not be
returned.
Any subsequent payment is credited as of the Valuation Period in which it is
received. For subsequent Purchase Payments, the number of Accumulation Units
credited is determined by dividing the Purchase Payment by the appropriate
Accumulation Unit value next computed following receipt of the payment at our
Home Office.
TRANSFERS OF CASH VALUE BETWEEN FUNDING OPTIONS
You may transfer Cash Values from one or more Funding Options to other Funding
Options, subject to the terms and conditions of the Contract (and your Plan). If
authorized by the Contract Owner, Participants under allocated Contracts may
transfer all or any of their Cash Value from one Funding Option to another up to
30 days before the due date of the first Annuity Payment.
DOLLAR COST AVERAGING (AUTOMATED TRANSFERS)
Dollar cost averaging permits the Contract Owner or Participant to transfer a
fixed dollar amount to other Funding Options on a monthly or quarterly basis so
that more Accumulation Units are purchased if the value per unit is low and less
Accumulation Units are purchased if the value per unit is high. Therefore, a
lower-than-average value per unit may be achieved over the long run.
You may elect automated transfers through written request or other method
acceptable to the Company. Certain minimums apply to amounts transferred and/or
to enroll in the program.
You may start or stop participation in the Dollar Cost Averaging program at any
time, but you must give the Company at least 30 days' notice to change any
automated transfer instructions that are currently in place. Automated transfers
are subject to all of the other provisions and terms of the Contract, including
provisions relating to the transfer of money between funding options. The
Company reserves the right to suspend or modify transfer privileges at any time
and to assess a processing fee for this service.
Before transferring any part of the Cash Value, Contract Owners should consider
the risks involved in switching between investments available under this
Contract. Dollar cost averaging requires regular investments regardless of
fluctuating price levels, and does not guarantee profits or prevent losses in a
declining market. Potential investors should consider their financial ability to
continue purchases through periods of low price levels.
ASSET ALLOCATION ADVICE
Owners may elect to enter into a separate advisory agreement with Copeland
Financial Services, Inc. ("Copeland"), an affiliate of the Company. Copeland
provides asset allocation advice under
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<PAGE> 16
its CHART program, which is fully described in a separate disclosure statement.
Under the CHART Program, Purchase Payments and Cash Values are allocated among
the specified asset allocation funds. Copeland's charge for this advisory
service is equal to a maximum of 1.50% of the assets subject to the CHART
Program. The CHART Program fee will be paid by quarterly withdrawals from the
Cash Values allocated to the asset allocation funds. The fee is in addition to
the Contract charges described in "Charges Under the Contract." The Company will
not treat these withdrawals as taxable distributions. The CHART Program may not
be available in all marketing programs through which this Contract is sold.
TRANSFERS FROM FUNDING OPTIONS TO CONTRACTS NOT ISSUED BY US
You may transfer all or any part of Your Account's Cash Surrender Value from any
Funding Option to any contract not issued by us. Such transfers may be subject
to a sales charge, as described in the Contract. If authorized by the Contract
Owner, a Participant may transfer all or any part of the Individual Account's
Cash Surrender Value from one Funding Option to any contract not issued by us.
TRANSFERS TO OR FROM OTHER CONTRACTS ISSUED BY US
Under specific conditions, we may allow you to transfer to this Contract funds
held by you in another group annuity contract issued by us or to transfer
amounts from this Contract to another Contract issued by us without applying a
sales charge to the funds being transferred. Once the transfer is complete and
we have established an account for you at your direction, a new sales charge may
apply, as described in the new Contract.
TRANSFERS FROM CONTRACTS NOT ISSUED BY US
Under specific conditions, when authorized by state insurance law, we may credit
a Plan up to 4% of the amount transferred to us from another group annuity not
issued by us as reimbursement to the Plan for any exit penalty assessed by the
other issuer. We will recover this credit through reduced compensation paid to
the servicing agent or broker.
CONTRACT AND PARTICIPANT'S INDIVIDUAL ACCOUNT TERMINATION
Under the allocated Contracts, if the Cash Value in a Participant's Individual
Account is less than the termination amount as stated in your Contract, we
reserve the right to terminate that Account and move the Cash Value of that
Participant's Individual Account to Your Account.
Any Cash Value to which a terminating Participant is not entitled under the Plan
will be moved to Your Account at your direction.
You may discontinue this Contract by Written Request at any time for any reason.
We reserve the right to discontinue this Contract if:
a) the Cash Value of the Contract is less than the termination amount; or
b) We determine within our sole discretion and judgment that the Plan or
administration of the Plan is not in conformity with applicable law; or
c) We receive notice that is satisfactory to us of plan termination.
If we discontinue this Contract or we receive your Written Request to
discontinue the Contract, we will, in our sole discretion and judgment:
a) accept no further payments for this Contract; and
b) pay you the Cash Surrender Value of the Funding Options within 7 days of
the date of our written notice to you, or distribute the Cash Surrender
Value of each Participant's Individual Account as described in the
Settlement Provisions section at your direction; and
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<PAGE> 17
c) pay you the Cash Surrender Value of the Fixed Account, if applicable, as
described in the Fixed Account Appendix.
If the Contract is discontinued, we will distribute the Cash Surrender Value to
you no later than 7 days following our mailing the written notice of
discontinuance to you at the most current address available on our records.
Discontinuance of the Contract will not affect payments we are making under
Annuity options which began before the date of discontinuance.
ACCOUNT VALUE
During the Accumulation Period, the Account Value can be determined by
multiplying the total number of Funding Option Accumulation Units credited to
that account by the current Accumulation Unit value for the appropriate Funding
Option and adding the sums for each Funding Option. There is no assurance that
the value in any of the Funding Options will equal or exceed the Purchase
Payments made to such Funding Options.
ACCUMULATION UNIT VALUE
The Accumulation Unit value for each Funding Option will vary to reflect the
investment experience of the applicable Funding Option and will be determined on
each by multiplying the Accumulation Unit value of the particular Funding Option
on the preceding Valuation Date by a net investment factor for that Funding
Option for the Valuation Period then ended. The value of the Accumulation Unit
for each Funding Option was initially established at $1.00 on the date that
Purchase Payments were first allocated to that Funding Option. The net
investment factor is described in the Statement of Additional Information.
You should refer to the Funding Option prospectuses which accompany this
prospectus for a description of how the net assets of each Funding Option are
valued since this valuation has a direct bearing on the Accumulation Unit value
of the Funding Option and therefore the Contract and Account values.
PAYMENT OF BENEFITS
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DEATH BENEFITS UNDER AN ALLOCATED CONTRACT
The allocated Contract provides that, in the event the Participant dies before
the selected Annuity Commencement Date or the Participant's age 75 (whichever
occurs first), the death benefit payable will be the greater of (a) the Cash
Value of the Participant's Individual Account or (b) the total Purchase Payments
under that Participant's Individual Account, less any applicable premium tax and
prior surrenders not previously deducted as of the date we receive Due Proof of
Death.
If the Participant dies on or after age 75 and before the Annuity Commencement
Date, we will pay the Beneficiary the Cash Value of the Participant's Individual
Account, less any applicable Premium Tax as of the date we receive Due Proof of
Death.
We must be notified of a Participant's death no later than six months after the
Participant's date of death in order for the Beneficiary to receive the death
proceeds as described. If notification is received more than six months after
the Participant's death, the Beneficiary shall receive the Cash Value of the
Participant's Individual Account as of the date we receive Due Proof of Death.
The death benefit may be taken by the beneficiary in one of three ways: 1) in a
single sum, in which case payment will be made within seven days of our receipt
of Due Proof of Death, unless subject to postponement as explained below; 2)
applied to a nonlifetime Annuity option, in which case the proceeds must be
distributed within 5 years of the Participant's date of death, or 3) applied to
a lifetime Annuity.
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<PAGE> 18
An election to receive death benefits under a form of Annuity must be made
within one year after the death. The election must be made by written notice to
us at our Home Office. The beneficiary may choose to have Annuity payments made
on a variable basis, fixed basis, or a combination of the two.
No election to provide Annuity payments will become operative unless the amount
placed under the Annuity Option is at least $2,000. The manner in which the
Annuity payments are determined and in which they may vary from month to month
are the same as applicable to a Participant's Individual Account after
retirement.
There is no Death Benefit under unallocated Contracts.
ELECTION OF SETTLEMENT OPTIONS
Any amount distributed from the Contract may be applied to any one of the
Annuity options described below.
Election of any of these options must be made by Written Request to our Home
Office at least 30 days prior to the date such election is to become effective.
The form of such Annuity option shall be determined by the Contract Owner. The
following information must be provided with any such request:
a) the Participant's name, address, date of birth, social security number;
b) the amount to be distributed;
c) the Annuity option which is to be purchased;
d) the date the Annuity option payments are to begin;
e) if the form of the Annuity provides a death benefit in the event of the
Participant's death, the name, relationship and address of the
beneficiary as designated by you; and
f) any other data that we may require.
The beneficiary, as specified in item (e) above, may be changed by you or the
Annuitant as long as we are notified by Written Request while the Annuitant is
alive and before payments have begun. If the beneficiary designation is
irrevocable, such designation cannot be changed or revoked without the consent
of the beneficiary. After we receive the Written Request and the written consent
of the beneficiary (if required), the new beneficiary designation will take
effect as of the date the notice is signed. We have no further responsibility
for any payment we made before the Written Request.
MINIMUM AMOUNTS
The minimum amount that can be placed under an Annuity option is $2,000 unless
we consent to a lesser amount. If any periodic payments due are less than $100,
we reserve the right to make payments at less frequent intervals.
MISSTATEMENT
If an Annuitant's sex or age was misstated, all benefits of this Contract are
what the Cash Values would have purchased on the date of issue at the correct
sex and age.
RETIRED LIFE CERTIFICATE
We will issue to each person to whom annuity benefits are being paid under this
Contract a certificate setting forth a statement in substance of the benefits to
which such person is entitled under this Contract.
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<PAGE> 19
ALLOCATION OF CASH SURRENDER VALUE DURING THE ANNUITY PERIOD
At the time an Annuity Option is elected, you also may elect to have the
Participant's Cash Surrender Value applied to provide a Variable Annuity, a
Fixed Annuity, or a combination of both.
If no election is made to the contrary, the Cash Surrender Value will provide an
Annuity which varies with the investment experience of the corresponding Funding
Option(s) at the time of election. You or the Participant, if you so authorize,
may elect to transfer Cash Value from one Funding Option to another, as
described in the provision "Transfers of Cash Value Between Funding Options," in
order to reallocate the basis on which Annuity payments will be determined. Once
Annuity payments have begun, no further transfers are allowed.
ANNUITY OPTIONS
OPTION 1 -- LIFE ANNUITY/NO REFUND. A Life Annuity is an Annuity payable during
the lifetime of the Annuitant and terminating with the last monthly payment
preceding the death of the Annuitant.
OPTION 2 -- LIFE ANNUITY WITH 120, 180 OR 240 MONTHLY PAYMENTS ASSURED. An
Annuity payable monthly during the lifetime of an Annuitant with the provision
that if, at the death of the Annuitant, payments have been made for less than
120,180 or 240 months, as elected, then we will continue to make payments to the
designated beneficiary during the remainder of the period.
OPTION 3 -- LIFE ANNUITY -- CASH REFUND. We will make monthly Annuity payments
during the lifetime of the Annuitant, ceasing with the last payment due prior to
the death of the Annuitant, provided that, at the death of the Annuitant, the
Beneficiary will receive an additional payment equal to the dollar value, if
any, of (a) minus (b) where, for a Variable Annuity:
(a) is the total amount applied under the option divided by the Annuity
Unit Value on the due date of the first Annuity payment;
(b) and is
(1) the number of Annuity Units represented by each payment;
times
(2) the number of payments made;
and for a Fixed Annuity:
(a) is the Cash Value applied on the Annuity Commencement Date under this
option; and
(b) is the dollar amount of Annuity payments already paid.
OPTION 4 -- JOINT AND LAST SURVIVOR LIFE ANNUITY. Monthly Annuity payments
based upon the joint lifetime of two persons selected: payments made first to
the Annuitant, and upon his/her death, paid to the survivor. No more payments
will be made after the death of the survivor.
OPTION 5 -- JOINT AND LAST SURVIVOR ANNUITY -- ANNUITY REDUCED ON DEATH OF
PRIMARY PAYEE. Monthly Annuity payments to the Annuitant during the joint
lifetime of the two persons selected. One of the two persons will be designated
as the primary payee. The other will be designated as the secondary payee. On
the death of the secondary payee, if survived by the primary payee, we will
continue to make monthly Annuity payments to the primary payee in the same
amount that would have been payable during the joint lifetime of the two
persons.
On the death of the primary payee, if survived by the secondary payee, we will
continue to make monthly Annuity payments to the secondary payee in an amount
equal to 50% of the payments which would have been made during the lifetime of
the primary payee. No further payments will be made following the death of the
survivor.
OPTION 6 -- FIXED PAYMENTS FOR A FIXED PERIOD OF 120, 180, OR 240 MONTHS. We
will make monthly payments for the period selected. If at the death of the
Annuitant, payments have been
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<PAGE> 20
made for less than 120, 180, or 240 months, as elected, we will continue to make
payments to the designated beneficiary during the remainder of the period.
OPTION 7 -- OTHER ANNUITY OPTIONS. We will make other arrangements for Annuity
payments as may be mutually agreed upon by you and us.
VARIABLE ANNUITY
AMOUNT OF FIRST PAYMENT. The Life Annuity Tables are used to determine the
first monthly Annuity payment. They show the dollar amount of the basic first
monthly Annuity payment which can be purchased with each $1,000 applied. The
amount applied to an Annuity will be the Cash Surrender Value of a Participant's
Individual Account as of 14 days before the date Annuity payments start. We
reserve the right to require satisfactory proof of the age of any persons on
whose life Annuity payments are based before making the first payment under any
of these options.
ANNUITY UNIT VALUE. The initial value of an Annuity Unit of each Funding Option
was set at $1.00. On any Valuation Date, the Annuity Unit Value for a Funding
Option equals the Annuity Unit Value on the immediately preceding Valuation
Date, multiplied by the net investment factor for that Funding Option for the
Valuation Period just ended, divided by the Assumed Daily Net Investment Factor.
The Assumed Daily Net Investment Factor is given in the Contract.
The value of an Annuity Unit as of any date other than a Valuation Date will be
equal to its value as of the succeeding Valuation Date.
INITIAL PAYMENT AND NUMBER OF ANNUITY UNITS. We determine the number of Annuity
Units credited to the Annuitant's Individual Account in each Funding Option by
dividing the basic first monthly Annuity payment attributable to that Funding
Option by the Funding Option's Annuity Unit Value as of 14 days before the due
date of the first Annuity payment.
AMOUNT OF SUBSEQUENT PAYMENTS. The dollar amount of any subsequent payments
made to an Annuitant after the first payment date may change from month to month
based on the net investment results of the Funding Option(s). The total amount
of each Annuity payment will be equal to the sum of the payments in each Funding
Option allocated to that Annuitant's Individual Account.
The amount of the payments made to an Annuitant is determined by multiplying,
for each Funding Option, the number of Annuity Units credited to that Annuitant
by the Annuity Unit Value of the Funding Option as of the date 14 days prior to
the date on which payment is due and by adding the sums.
FIXED ANNUITY
A Fixed Annuity provides for payments which do not vary during the Annuity
Period. The minimum guaranteed amount of the Fixed Annuity payments will be
calculated as described under "Variable Annuity: Determination of First Annuity
Payment" except that the Cash Surrender Value will be determined as of the day
annuity payments commence. If it would produce a larger payment, the Fixed
Annuity Payments will be determined using the Life Annuity Tables in effect on
the Maturity Date.
CHARGES UNDER THE CONTRACT
- --------------------------------------------------------------------------------
SALES CHARGES
Purchase Payments made under the Contract pursuant to the terms of the contracts
are not subject to a front-end sales load. However, upon redemption, the Company
will charge a surrender charge or a contingent deferred sales charge, as
negotiated. Any sales charge, penalty tax and withholding
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<PAGE> 21
will be deducted from either the amount surrendered or from the remaining
Contract balance, as requested by the Contract Owner or Participant. The maximum
contingent deferred sales charge is 5% of each Purchase Payment for a period of
five years from the date the Purchase Payment was made. The maximum surrender
charge is 5% of the amount surrendered in the first two Contract Years, up to 4%
in years three and four; up to 3% in years five and six, up to 2% in years seven
and eight and 0% beginning in the ninth year. Any applicable sales charge will
not exceed 8.5% of the aggregate amount of the Purchase Payments made.
For deferred sales charge options, surrenders will be taken from Purchase
Payments in the order they were received by us and then on any earnings.
The sales charges can be changed if the Company anticipates it will incur
decreased sales-related expenses due to the nature of the Plan to which the
Contract is issued or the involvement of TPAs. When considering a change in the
sales charges, the Company will take into account:
(a) The expected level of initial agent or the Company involvement during
the establishment and maintenance of the Contract including the amount
of enrollment activity required, and the amount of service required by
the Contract Owner in support of the Plan, and
(b) Contract Owner, agent or TPA involvement in conducting ongoing
enrollment of subsequently eligible Participants, and
(c) The expected level of commission the Company may pay to the agent or
TPA for distribution expenses, and
(d) Any other factors which the Company anticipates will increase or
decrease the sales-related expenses associated with the sale of the
Contract in connection with the Plan.
The surrender charge will not be assessed for withdrawals made under the
following circumstances: retirement, separation from service, loans (if
available in your Plan), hardship (as defined by the Code), death, disability as
defined in Code section 72(m)(7), return of Excess Plan Contributions, minimum
required distributions at age 70 1/2, transfers to an Employer Stock Fund,
certain Plan expenses as mutually agreed upon and annuitization under this
Contract or another contract issued by us.
For unallocated Contracts, we make the deductions described above pursuant to
the terms of the various agreements among the custodian, the principal
underwriter, and us. Contract distribution expenses may exceed the deduction for
sales expenses described above. To the extent that they do, they will be borne
by the Company.
FREE WITHDRAWAL ALLOWANCE. For Contracts in use with deferred compensation
plans, the tax deferred annuity plans and combined qualified plans/tax-deferred
annuity plans, there is a 10% free withdrawal allowance available each year
after the first Contract Year. The available withdrawal amount will be
calculated as of the first Valuation Date of any given Contract Year. The free
withdrawal allowance applies to partial surrenders of any amount and to full
surrenders, except those full surrenders transferred directly to annuity
contracts issued by other financial institutions.
MORTALITY AND EXPENSE RISK CHARGE
A mortality and expense risk charge is deducted on each Valuation Date from
amounts held in the Separate Account. This charge is equivalent, on an annual
basis, to a maximum of 1.20% of the amounts allocated to each Funding Option.
The mortality risk portion compensates the Company for guaranteeing to provide
Annuity Payments according to the terms of the Contract regardless of how long
the Annuitant lives and for guaranteeing to provide the death benefit if a
Participant dies prior to the Annuity Commencement Date. The expense risk charge
compensates the Company for the risk that the charges under the Contract, which
cannot be increased during the duration of the Contract, will be insufficient to
cover actual costs.
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<PAGE> 22
If the amount deducted for mortality and expense risks is not sufficient to
cover the mortality costs and expense shortfalls, the loss is borne by the
Company. If the deduction is more than sufficient, the excess will be a profit
to the Company. The Company expects to make a profit from the mortality and
expense risk charge.
In determining the level of the mortality and expense risk charge, the Company
will consider the size of the Plan, the number of employees, Plan Participants,
the demographics of the Participants, which may reduce mortality and expenses of
the Plan, and any other factors which the Company considers relevant.
Although variable Annuity payments made under the Contracts will vary in
accordance with the investment performance of each Funding Option's investment
portfolio, payments will not be affected by (a) the Company's actual mortality
experience among Annuitants after retirement or (b) the Company's actual
expenses, if greater than the deductions provided for in the Contracts because
of the expense and mortality undertakings by the Company.
FUNDING OPTION CHARGES
There are certain deductions from and expenses paid out of the assets of each
Funding Option. These are described in the applicable prospectus for each
Funding Option.
ADMINISTRATIVE CHARGES
The following administrative charges apply only to allocated Contracts. One
charge or the other, or both may apply as described in your Contract.
SEMIANNUAL POLICY FEE. A semiannual policy fee of up to $15 may be deducted from
the value of each Participant's Individual Account. Any such deduction will be
made pro rata from each of the Funding Options, at the end of each 6-month
period. This fee is assessed only during the Accumulation Period.
ADMINISTRATIVE EXPENSE. This charge is deducted on each Valuation Date from the
variable Funding Options in order to compensate the Company for certain
administrative and operating expenses of the Funding Options. The charge is
equivalent, on an annual basis, to a maximum of 0.10% of the daily net asset
value of each Funding Options. There is no necessary relationship between the
amount of the administrative charge imposed on a given contract and the amount
of expenses that may be attributable to the contract. This charge is assessed
during the Accumulation and Annuity Periods from each Participant's Individual
Account.
Neither the semiannual policy fee nor the administrative expense charge can be
increased. The charges are set at a level which does not exceed the average
expected cost of the administrative services to be provided while the Contract
is in force, and the Company does not expect to profit from these charges.
As discussed below, the level of the semiannual policy fee and of the
administrative expense charge is subject to negotiation. In determining the
level of the semiannual fee and the administrative expense charge, we consider
certain factors including, but not limited to, the following:
(a) The size and characteristics of the Contract and the group to which it
is issued including: the annual amount of Purchase Payments per
Participant, the expected turnover of employees, whether the Contract
Owner will remit Purchase Payment allocations electronically, and any
other factors pertaining to the characteristics of the group or the
Plan which may enable the Company to reduce the expense of
administration.
(b) Determination of the Company's anticipated expenses in administering
the Contract, such as: billing for Purchase Payments, producing
periodic reports, providing for the direct payment of Contract charges
rather than having them deducted from Contract values, and
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<PAGE> 23
any other factors pertaining to the level and expense of administrative
services which will be provided under the Contract.
(c) TPA and/or agent involvement.
PREMIUM TAX DEDUCTIONS
Certain states or municipalities impose a premium tax, ranging up to 5.0%. A
premium tax is made, if applicable, on purchase payments or contract values. On
any Contract subject to a premium tax, the tax will be deducted, as provided
under applicable law, either from Purchase Payments when received or from the
amount applied to effect an Annuity at the time Annuity payments commence.
However, we reserve the right to deduct from the Contract the state or
municipality premium tax upon our determination of when such tax is due.
TPA ADMINISTRATIVE CHARGES
The Company may be directed by the Contract Owner to deduct charges from
Purchase Payments or account values for payment to the Contract Owner and/or the
TPA. These charges are not levied by the Contract. Such charges may include
maintenance fees and transaction fees.
THE COMPANY, THE SEPARATE ACCOUNT
AND THE FUNDING OPTIONS
- --------------------------------------------------------------------------------
THE COMPANY
The Travelers Insurance Company is a stock insurance company chartered in 1864
in Connecticut and continuously engaged in the insurance business since that
time. It is licensed to conduct life insurance business in all states of the
United States, the District of Columbia, Puerto Rico, Guam, the U.S. and British
Virgin Islands and the Bahamas. The Company is an indirect wholly owned
subsidiary of Travelers Group Inc., a financial services holding company. The
Company's Home Office is located at One Tower Square, Hartford, Connecticut
06183.
THE SEPARATE ACCOUNT
The Separate Account was established on December 26, 1995, in accordance with
authorization by the Board of Directors of the Company. It is the Separate
Account in which the Company sets aside and invests the assets attributable to
the Contracts sold under this prospectus. The Separate Account is registered as
a unit investment trust under the Investment Company Act of 1940. This
registration does not, however, involve Securities and Exchange Commission
supervision of the management or the investment practices or policies of the
Separate Account or the Company.
Under Connecticut law, the assets of the Separate Account attributable to the
Contracts offered under this prospectus are held for the benefit of the owners
of, and the persons entitled to payments under, those Contracts. The assets in
the Separate Account are not chargeable with liabilities arising out of any
other business the Company may conduct. Therefore, you will not be affected by
the rate of return of the Company's General Account, nor by the investment
performance of any of the Company's other separate accounts.
The Company does not guarantee the investment results of the Separate Account or
the Funding Options. There is no assurance that the Account Value on the Annuity
Commencement Date or the aggregate amount of the Variable Annuity payments will
equal the sum of Purchase Payments made under the Contract. Since each Funding
Option has different investment objectives, each is subject to different risks.
These risks are more fully described in the prospectuses for the Funding Options
which must accompany this prospectus. Additional copies of the prospectuses may
be requested from your sales representative or from the Home Office.
22
<PAGE> 24
The Company reserves the right, subject to compliance with the law, to
substitute the shares of any other registered investment company for the shares
of any Funding Option held by the Separate Account. Substitution may occur if
shares of the Funding Option(s) become unavailable or due to changes in
applicable law or interpretations of law. Current law requires approval of the
Securities and Exchange Commission and notification to you of any such
substitution. The Company also reserves the right, subject to compliance with
the law to offer additional Funding Options.
THE FUNDING OPTIONS:
MANAGED ASSETS TRUST. The objective of the Managed Assets Trust is high
total investment return through a fully managed investment policy. Assets
of the Managed Assets Trust will be invested in a portfolio of equity, debt
and convertible securities.
HIGH YIELD BOND TRUST.* The objective of the High Yield Bond Trust is
generous income. The assets of the High Yield Bond Trust will be invested
in bonds which, as a class, sell at discounts from par value and are
typically high risk securities. Please read carefully the complete risk
disclosure in the Trust's prospectus before investing.
CAPITAL APPRECIATION FUND. The objective of the Capital Appreciation Fund
is growth of capital through the use of common stocks. Income is not an
objective. The Fund invests principally in common stocks of small to large
companies which are expected to experience wide fluctuations in price in
both rising and declining markets.
DREYFUS STOCK INDEX FUND, INC. The objective of the Dreyfus Stock Index
Fund, Inc. is to provide investment results that correspond to the price
and yield performance of publicly traded common stocks in the aggregate, as
represented by the Standard & Poor's 500 Composite Stock Price Index.
AMERICAN ODYSSEY FUNDS, INC.
AMERICAN ODYSSEY CORE EQUITY FUND. The objective of the Core Equity Fund
is to seek maximum long-term total return by investing primarily in common
stocks of well-established companies.
AMERICAN ODYSSEY EMERGING OPPORTUNITIES FUND. The objective of the
Emerging Opportunities Fund is to seek maximum long-term total return by
investing primarily in common stocks of small, rapidly growing companies.
AMERICAN ODYSSEY INTERNATIONAL EQUITY FUND. The objective of the
International Equity Fund is to seek maximum long-term total return by
investing primarily in common stocks of established non-U.S. companies.
AMERICAN ODYSSEY LONG-TERM BOND FUND.* The objective of the Long-Term Bond
Fund is to seek maximum long-term total return by investing primarily in
long-term corporate debt securities, U.S. government securities,
mortgage-related securities, and asset-backed securities, as well as money
market instruments.
AMERICAN ODYSSEY INTERMEDIATE-TERM BOND FUND.* The objective of the
Intermediate-Term Bond Fund is to seek maximum long-term total return by
investing primarily in intermediate-term corporate debt securities, U.S.
government securities, mortgage-related securities and asset-backed
securities, as well as money market instruments.
AMERICAN ODYSSEY SHORT-TERM BOND FUND.* The objective of the Short-Term
Bond Fund is to seek maximum long-term total return by investing primarily
in investment-grade, short-term debt securities.
23
<PAGE> 25
TRAVELERS SERIES TRUST
U.S. GOVERNMENT SECURITIES PORTFOLIO.* The objective of the U.S.
Government Securities Portfolio is the selection of investments from the
point of view of an investor concerned primarily with highest credit
quality, current income and total return. The assets of the U.S. Government
Securities Portfolio will be invested in direct obligations of the United
States, its agencies and instrumentalities.
SOCIAL AWARENESS STOCK PORTFOLIO. The investment objective of the Social
Awareness Stock Portfolio is long-term capital appreciation and retention
of net investment income. The Portfolio seeks to fulfill this objective by
selecting investments, primarily common stocks, which meet the social
criteria established for the Portfolio. Social criteria currently excludes
companies that derive a significant portion of their revenues from the
production of tobacco, tobacco products, alcohol, or military defense
systems, or in the provision of military defense related services or
gambling services.
UTILITIES PORTFOLIO. The objective of the Utilities Portfolio is to
provide current income by investing in equity and debt securities of
companies in the utility industries.
TEMPLETON VARIABLE PRODUCTS SERIES
TEMPLETON BOND FUND.* The objective of the Templeton Bond Fund is high
current income through a flexible policy of investing primarily in debt
securities of companies, governments and government agencies of various
nations throughout the world.
TEMPLETON STOCK FUND. The objective of the Templeton Stock Fund is capital
growth through a policy of investing primarily in common stocks issued by
companies, large and small, in various nations throughout the world.
TEMPLETON ASSET ALLOCATION FUND.** The objective of the Templeton Asset
Allocation Fund is a high level of total return with reduced risk over the
long term through a flexible policy of investing in stocks of companies in
any nation and debt obligations of companies and governments of any nation.
Changes in the asset mix will be adjusted in an attempt to capitalize on
total return potential produced by changing economic conditions throughout
the world.
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND
FIDELITY'S HIGH INCOME PORTFOLIO*. The objective of the High Income
Portfolio is to seek to obtain a high level of current income by investing
primarily in high yielding, lower-rated, fixed-income securities, while
also considering growth of capital. Since such high yielding securities may
be considered high risk, please read carefully the complete risk disclosure
in the Portfolio's prospectus before investing.
FIDELITY'S GROWTH PORTFOLIO. The objective of the Growth Portfolio is to
seek capital appreciation. The Portfolio normally purchases common stocks
of well-known, established companies, and small emerging growth companies,
although its investments are not restricted to any one type of security.
Capital appreciation may also be found in other types of securities,
including bonds and preferred stocks.
FIDELITY'S EQUITY-INCOME PORTFOLIO. The objective of the Equity-Income
Portfolio is to seek reasonable income by investing primarily in
income-producing equity securities; in choosing these securities, the
portfolio manager will also consider the potential for capital
appreciation.
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND II
FIDELITY'S ASSET MANAGER PORTFOLIO.** The objective of the asset manager
portfolio is to seek high total return with reduced risk over the long-term
by allocating its assets among stocks, bonds and short-term fixed-income
instruments.
24
<PAGE> 26
THE TRAVELERS SERIES FUND, INC.
SMITH BARNEY INCOME AND GROWTH PORTFOLIO. The objective of the Income and
Growth Portfolio is current income and long-term growth of income and
capital by investing primarily, but not exclusively, in common stocks.
ALLIANCE GROWTH PORTFOLIO. The objective of the Growth Portfolio is
long-term growth of capital by investing predominantly in equity securities
of companies with a favorable outlook for earnings and whose rate of growth
is expected to exceed that of the U.S. economy over time. Current income is
only an incidental consideration.
SMITH BARNEY INTERNATIONAL EQUITY PORTFOLIO. The objective of the
International Equity Portfolio is total return on assets from growth of
capital and income by investing at least 65% of its assets in a diversified
portfolio of equity securities of established non-U.S. issuers.
PUTNAM DIVERSIFIED INCOME PORTFOLIO.** The objective of the Diversified
Income Portfolio is to seek high current income consistent with
preservation of capital. The Portfolio will allocate its investments among
the U.S. Government Sector, the High Yield Sector, and the International
Sector of the fixed income securities markets. Please read carefully the
complete risk disclosure in the Portfolio's prospectus before investing.
SMITH BARNEY HIGH INCOME PORTFOLIO.* The investment objective of the High
Income Portfolio is high current income. Capital appreciation is a
secondary objective. The Portfolio will invest at least 65% of its assets
in high-yielding corporate debt obligations and preferred stock. Since such
high yielding securities may be considered high risk, please read carefully
the complete risk disclosure in the Portfolio's prospectus before
investing.
MFS TOTAL RETURN PORTFOLIO.** The Total Return Portfolio's objective is to
obtain above-average income (compared to a portfolio entirely invested in
equity securities) consistent with the prudent employment of capital.
Generally, at least 40% of the Portfolio's assets will be invested in
equity securities. Please read carefully the complete risk disclosure in
the Portfolio's prospectus before investing.
SMITH BARNEY MONEY MARKET PORTFOLIO.* The Money Market Portfolio's
objective is maximum current income and preservation of capital by
investing in high quality, short-term money market instruments. An
investment in this fund is neither insured nor guaranteed by the U.S.
Government.
* The Funding Options marked with an asterisk (*) are considered Competing
Funds, and may be subject to transfer restrictions. Those marked with two
asterisks (**) are not currently considered Competing Funds, but may be so in
the future because of an allowable change in the Funding Option's investment
strategy.
An asset allocation program is available for certain Funding Options under the
Contract. See "Asset Allocation Advice" on page 14.
Certain variable annuity separate accounts and variable life insurance separate
accounts may invest in the Funding Options simultaneously (called "mixed" and
"shared" funding). It is conceivable that in the future it may be
disadvantageous to do so. Although the Company and the Funding Options do not
currently foresee any such disadvantages either to variable annuity Contract
Owners or variable life insurance policyowners, each Funding Option's Board of
Directors intends to monitor events in order to identify any material conflicts
between such Contract Owners and policyowners and to determine what action, if
any, should be taken in response thereto. If a Board of Directors was to
conclude that separate funds should be established for variable life and
variable annuity separate accounts, the variable annuity Contract Owners would
not bear any expenses attendant to the establishment of such separate funds, but
variable annuity Contract Owners and variable life insurance policyowners would
no longer have the economies of scale resulting from a larger combined fund.
25
<PAGE> 27
The Company reserves the right, subject to compliance with the law, to
substitute the shares of any other registered investment company for the shares
of any Funding Option held by the Separate Account. Substitution may occur if
shares of the Funding Option(s) become unavailable or due to changes in
applicable law or interpretations of law. Current law requires notification to
you of any such substitution and approval of the Securities and Exchange
Commission. The Company also reserves the right, subject to compliance with the
law, to offer additional Funding Options.
INVESTMENT ADVISERS
The Funding Options receive investment management and advisory services from the
following investment professionals:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
INVESTMENT ALTERNATIVE INVESTMENT ADVISER SUB-ADVISER
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Capital Appreciation Fund Travelers Asset Management Janus Capital Corporation
International ("TAMIC")
- ----------------------------------------------------------------------------------------------
High Yield Bond Trust TAMIC
- ----------------------------------------------------------------------------------------------
Managed Assets Trust TAMIC Travelers Investment
Management Company
("TIMCO")
- ----------------------------------------------------------------------------------------------
U.S. Government Securities TAMIC
Portfolio
- ----------------------------------------------------------------------------------------------
Social Awareness Stock Smith Barney Mutual Funds
Portfolio Management, Inc. ("SBMFM")
- ----------------------------------------------------------------------------------------------
Utilities Portfolio SBMFM
- ----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Templeton Stock Fund Templeton Investment Counsel,
Inc.
- ----------------------------------------------------------------------------------------------
Templeton Asset Allocation Templeton Investment Counsel,
Fund Inc.
- ----------------------------------------------------------------------------------------------
Templeton Bond Fund Templeton Global Bond Managers
- ----------------------------------------------------------------------------------------------
Fidelity's High Income Fidelity Management & Research
Portfolio Company
- ----------------------------------------------------------------------------------------------
Fidelity's Equity-Income Fidelity Management & Research
Portfolio Company
- ----------------------------------------------------------------------------------------------
Fidelity's Growth Portfolio Fidelity Management & Research
Company
- ----------------------------------------------------------------------------------------------
Fidelity's Asset Manager Fidelity Management & Research
Portfolio Company
- ----------------------------------------------------------------------------------------------
Dreyfus Stock Index Fund Wells Fargo Nikko Investment
Advisors
- ----------------------------------------------------------------------------------------------
American Odyssey American Odyssey Funds Bank of Ireland Asset
International Equity Fund Management, Inc. Management (U.S.) Limited
- ----------------------------------------------------------------------------------------------
American Odyssey Emerging American Odyssey Funds Wilke/Thompson Capital
Opportunities Fund Management, Inc. Management, Inc.
- ----------------------------------------------------------------------------------------------
American Odyssey Core Equity American Odyssey Funds Equinox Capital Management,
Fund Management, Inc. Inc.
- ----------------------------------------------------------------------------------------------
American Odyssey Long-Term American Odyssey Funds Western Asset Management
Bond Fund Management, Inc. Company and WLO Global
Management
- ----------------------------------------------------------------------------------------------
American Odyssey American Odyssey Funds TAMIC
Intermediate-Term Bond Fund Management, Inc.
</TABLE>
26
<PAGE> 28
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
INVESTMENT ALTERNATIVE INVESTMENT ADVISER SUB-ADVISER
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
- ----------------------------------------------------------------------------------------------
American Odyssey Short-Term American Odyssey Funds Smith Graham & Co. Asset
Bond Fund Management, Inc. Managers,L.P.
- ----------------------------------------------------------------------------------------------
Smith Barney Income and Travelers Investment Advisers,
Growth Portfolio Inc. ("TIA")
- ----------------------------------------------------------------------------------------------
Alliance Growth Portfolio TIA Alliance Capital Management
L.P
- ----------------------------------------------------------------------------------------------
Smith Barney International TIA
Equity Portfolio
- ----------------------------------------------------------------------------------------------
Putnam Diversified Income TIA Putnam Investment Management,
Portfolio Inc.
- ----------------------------------------------------------------------------------------------
Smith Barney High Income TIA
Portfolio
- ----------------------------------------------------------------------------------------------
MFS Total Return Portfolio TIA Massachusetts Financial
Services Company
- ----------------------------------------------------------------------------------------------
Smith Barney Money Market TIA
Portfolio
- ----------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------
From time to time, the Company may advertise different types of historical
performance for the Funding Options available through Separate Account QP. The
Company may advertise the "standardized average annual total returns" of each,
calculated in a manner prescribed by the SEC, as well as the "non-standardized
average annual total returns," both described below.
"Standardized average annual total returns will show the percentage rate of
return of a hypothetical initial investment of $1,000 for the most recent one-,
five- and ten-year periods (or fractional periods thereof). This standardized
calculation reflects the deduction of all applicable charges made to the
Contract, except for premium taxes which may be imposed by certain states.
"Non-standardized average annual total returns" will be calculated in a similar
manner, except non-standardized total returns will not reflect the deduction of
any applicable Contingent Deferred Sales Charge, Surrender Charge, or
administrative charge, which would decrease the level of performance shown if
reflected in these calculations.
Performance information may be quoted numerically or may be presented in a
table, graph or other illustration. Advertisements may include data comparing
performance to well-known indices of market performance (including, but not
limited to, the Dow Jones Industrial Average, the Standard & Poor's (S&P) 500
Index and the S&P 400 Index, the Lehman Brothers Long-T-Bond Index, the Russell
1000, 2000 and 3000 Indices, the Value Line Index, and the Morgan Stanley
Capital International's EAFE Index). Advertisements may also include published
editorial comments and performance rankings compiled by independent
organizations (including, but not limited to, Lipper Analytical Services, Inc.
and Morningstar, Inc.) and publications that monitor the performance of Fund
ABDII and the Funding Options.
The total return quotations are based upon historical earnings and are not
necessarily representative of future performance. A Contract Owner's Contract
Value at redemption may be more or less than original cost. The SAI contains
more detailed information about these performance calculations, including actual
examples of each type of performance advertised.
27
<PAGE> 29
FEDERAL TAX CONSIDERATIONS
- --------------------------------------------------------------------------------
GENERAL
The Company is taxed as a life insurance company under Subchapter L of the
Internal Revenue Code (the "Code"). The Separate Accounts that form the
investment alternatives described herein are treated as part of the total
operations of the Company and are not taxed separately. Investment income and
gains of a Separate Account that are credited to a variable annuity contract
incur no current federal income tax. Generally, amounts credited to a contract
are not taxable until received by the Contract Owner, participant or
beneficiary, either in the form of Annuity Payments or other distributions. Tax
consequences and limits are described further below for each annuity program.
OWNERSHIP OF THE INVESTMENTS
In certain circumstances, owners of variable annuity contracts may be considered
the owners, for federal income tax purposes, of the assets of the separate
accounts used to support their contract. In those circumstances, income and
gains from the separate account assets would be includable in the variable
contract owner's gross income. The IRS has stated in published rulings that a
variable contract owner will be considered the owner of separate account assets
if the contract owner possesses incidents of ownership in those assets, such as
the ability to exercise investment control over the assets. The Treasury has
also announced, in connection with the issuance of regulations concerning
diversification, that those regulations "do not provide guidance concerning the
circumstances in which investor control of the investments of a segregated asset
account may cause the investor (i.e., the Contract Owner), rather than the
insurance company, to be treated as the owner of the assets in the account."
This announcement also stated that guidance would be issued by way of
regulations or rulings on the "extent to which policyholders may direct their
investments to particular Sub-Accounts without being treated as owners of the
underlying assets." As of the date of this prospectus, no such guidance has been
issued.
The ownership rights under the Contract are similar to, but different in certain
respects from, those described by the IRS in rulings in which it determined that
the owners were not owners of separate account assets. For example, a Contract
Owner or Participant of this Contract has additional flexibility in allocating
payments and cash values. These differences could result in the Contract Owner
being treated as the owner of the assets of Fund QP. In addition, the Company
does not know what standard will be set forth in the regulations or rulings
which the Treasury is expected to issue, nor does the Company know if such
guidance will be issued. The Company therefore reserves the right to modify the
Contract as necessary to attempt to prevent the Contract Owner from being
considered the owner of a pro rata share of the assets of Fund QP.
The remaining tax discussion assumes that the Contract qualifies as an annuity
contract for federal income tax purposes.
SECTION 403(B) PLANS AND ARRANGEMENTS
Purchase Payments for tax-deferred annuity contracts may be made by an employer
for employees under annuity plans adopted by public educational organizations
and certain organizations which are tax exempt under Section 501(c)(3) of the
Code. Within statutory limits, these payments are not currently includable in
the gross income of the participants. Increases in the value of the Contract
attributable to these Purchase Payments are similarly not subject to current
taxation. The income in the Contract is taxable as ordinary income whenever
distributed.
An additional tax of 10% will apply to any taxable distribution received by the
participant before the age of 59 1/2, except when due to death, disability, or
as part of a series of payments for life or life expectancy, or made after the
age of 55 with separation from service. There are other statutory exceptions.
28
<PAGE> 30
Amounts attributable to salary reductions and income thereon may not be
withdrawn prior to attaining the age of 59 1/2, separation from service, death,
total and permanent disability, or in the case of hardship as defined by federal
tax law and regulations. Hardship withdrawals are available only to the extent
of the salary reduction contributions and not from the income attributable to
such contributions. These restrictions do not apply to assets held generally as
of December 31, 1988.
Distribution must begin by April 1st of the calendar year following the later of
the calendar year in which the participant attains the age of 70 1/2 or retires.
Certain other mandatory distribution rules apply at the death of the
participant.
Eligible rollover distributions, including most partial or full redemptions or
"term-for-years" distributions of less than 10 years, are eligible for direct
rollover to another 403(b) contract or to an Individual Retirement Arrangement
(IRA) without federal income tax withholding.
QUALIFIED PENSION AND PROFIT-SHARING PLANS
Under a qualified pension or profit-sharing trust described in Section 401(a) of
the Code and exempt from tax under Section 501(a) of the Code, Purchase Payments
made by an employer are not currently taxable to the participant and increases
in the value of a contract are not subject to taxation until received by a
Participant or beneficiary.
Distributions in the form of Annuity or Income Payments are taxable to the
Participant or beneficiary as ordinary income in the year of receipt. Any
distribution that is considered the participant's "investment in the contract"
is treated as a return of capital and is not taxable. Payments under Income
Option 3 are taxable in full. Certain lump-sum distributions described in
Section 402 of the Code may be eligible for special ten-year forward averaging
treatment for individuals born before January 1, 1936. All individuals may be
eligible for favorable five-year forward averaging of lump-sum distributions
through 1999. Certain eligible rollover distributions including most partial and
full surrenders or term-for-years distributions of less than 10 years are
eligible for direct rollover to an eligible retirement plan or to an IRA without
federal income tax withholding.
An additional tax of 10% will apply to any taxable distribution received by the
Participant before the age of 59 1/2, except by reason of death, disability or
as part of a series of payments for life or life expectancy, or at early
retirement at or after the age of 55. There are other statutory exceptions.
Amounts attributable to salary reductions and income thereon may not be
withdrawn prior to attaining the age of 59 1/2, separation from service, death,
total and permanent disability, or in the case of hardship as defined by federal
tax law and regulations. Hardship withdrawals are available only to the extent
of the salary reduction contributions and not from the income attributable to
such contributions. These restrictions do not apply to assets held generally as
of December 31, 1988.
Distribution must begin by April 1st of the calendar year following the later of
the calendar year in which the participant attains the age of 70 1/2 or retires.
Certain other mandatory distribution rules apply at the death of the
Participant.
SECTION 457 PLANS
Section 457 of the Code allows employees and independent contractors of state
and local governments and tax-exempt organizations to defer a portion of their
salaries or compensation to retirement years without paying current income tax
on either the deferrals or the earnings on the deferrals.
The Owner of contracts issued under Section 457 plans is the employer or a
contractor of the Participant and amounts may not be made available to
Participants (or beneficiaries) until
29
<PAGE> 31
separation from service, retirement or death or an unforeseeable emergency as
determined by Treasury Regulations. The proceeds of Annuity contracts purchased
by Section 457 plans are subject to the claims of general creditors of the
employer or contractor.
Distributions must begin generally by April 1st of the calendar year following
the later of the calendar year in which the Participant attains the age of
70 1/2 or retires. Certain other mandatory distribution rules apply upon the
death of the Participant.
All distributions from plans that meet the requirements of Section 457 of the
Code are taxable as ordinary income in the year paid or made available to the
Participant or beneficiary.
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974
Under the Employee Retirement Income Security Act of 1974 ("ERISA"), as amended,
certain special provisions may apply to the contract if the Owner of a Section
403(b) plan contract or certain other tax-benefited contracts requests that the
contract be issued to conform to ERISA or if the Company has notice that the
contract was issued pursuant to a plan that is subject to ERISA.
ERISA requires that certain Annuity Options, withdrawals or other payments and
any application for a loan secured by the contract may not be made until the
Participant has filed a Qualified Election with the plan administrator. Under
certain plans, ERISA also requires that a designation of a beneficiary other
than the Participant's spouse be invalid unless the Participant has filed a
Qualified Election.
A Qualified Election must include either the written consent of the
Participant's spouse, notarized or witnessed by an authorized plan
representative, or the Participant's certification that there is no spouse or
that the spouse cannot be located.
The Company intends to administer all contracts to which ERISA applies in a
manner consistent with the direction of the plan administrator regarding the
provisions of the plan, in accordance with applicable law. Because these
requirements differ according to the plan, a person contemplating the purchase
of an annuity contract should consider the provisions of the plan.
FEDERAL INCOME TAX WITHHOLDING
The portion of a distribution which is taxable income to the recipient will be
subject to federal income tax withholding, generally pursuant to Section 3405 of
the Code. The application of this provision is summarized below.
1. ELIGIBLE ROLLOVER DISTRIBUTION FROM SECTION 403(B) PLANS OR ARRANGEMENTS
OR FROM QUALIFIED PENSION AND PROFIT-SHARING PLANS
Plan distributions that are eligible for rollover to an IRA or to
another retirement plan but are not directly rolled over are subject to
a mandatory 20% federal tax withholding. A distribution made directly to
a participant or beneficiary may avoid this result if:
(a) a periodic settlement distribution is elected based upon a life or
life expectancy calculation, or
(b) a complete term-for-years settlement distribution is elected for a
period of ten years or more, payable at least annually, or
(c) a minimum required distribution as defined under the tax law is
taken upon the attainment of the age of 70 1/2 or as otherwise
required by law.
A distribution including a rollover that is not a direct rollover will
require the 20% withholding, and a 10% additional tax penalty (for
premature withdrawal) may apply to any amount not actually rolled over
due to 20% withholding. The 20% withholding may be recovered when the
Participant or beneficiary files a personal income tax return for the
year if a rollover was completed within 60 days of receipt of the funds,
except to the extent that
30
<PAGE> 32
the Participant or spousal beneficiary is otherwise underwithheld or
short on estimated taxes for that year.
2. OTHER NON-PERIODIC DISTRIBUTIONS (FULL OR PARTIAL REDEMPTIONS)
For any payment not subject to mandatory 20% withholding as described in
1 above, the portion of a non-periodic distribution which constitutes
taxable income will be subject to federal income tax withholding, to the
extent such aggregate distributions exceed $200 for the year, unless the
recipient elects not to have taxes withheld. If an election out is not
provided, 10% of the taxable distribution will automatically be withheld
as federal income tax. Election forms will be provided at the time
distributions are requested. This form of withholding applies to all
annuity programs.
3. PERIODIC DISTRIBUTIONS (DISTRIBUTIONS PAYABLE OVER A PERIOD GREATER THAN
ONE YEAR)
The portion of a periodic distribution which constitutes taxable income
will be subject to federal income tax withholding under the wage
withholding tables as if the recipient were married claiming three
exemptions. A recipient may elect not to have income taxes withheld or
have income taxes withheld at a different rate by providing a completed
election form. Election forms will be provided at the time distributions
are requested. This form of withholding applies to all annuity programs.
As of January 1, 1996, a recipient receiving periodic payments (e.g.,
monthly or annual payments under an Annuity Option) which total $14,350
or less per year, will generally be exempt from the withholding
requirements.
Recipients who elect not to have withholding made are liable for payment of
federal income tax on the taxable portion of the distribution. All recipients
may also be subject to penalties under the estimated tax payment rules if
withholding and estimated tax payments are insufficient.
Recipients who do not provide a social security number or other taxpayer
identification number will not be permitted to elect out of withholding.
Additionally, United States citizens residing outside of the country, or U.S.
legal residents temporarily residing outside the country, are not permitted to
elect out of withholding.
TAX ADVICE
Because of the complexity of the law and the fact that the tax results will vary
according to the factual status of the individual involved, tax advice may be
needed by a person contemplating purchase of an annuity contract and by an
Owner, participant or beneficiary who may make elections under a contract. The
foregoing description of the federal income tax consequences under these
contracts is not exhaustive. It should be understood that if a tax-benefited
plan loses its exempt status, employees could lose some of the tax benefits
described and that special rules are provided with respect to situations not
discussed here. For further information, a qualified tax adviser should be
consulted.
MISCELLANEOUS
- --------------------------------------------------------------------------------
VOTING RIGHTS
The Company shall notify the Contract Owner of any Funding Option shareholders'
meeting if the shares held for the Contract Owner's accounts may be voted at
such meetings. The Company shall also send proxy materials and a form of
instruction by means of which the Contract Owner can instruct the Company with
respect to the voting of the Funding Option shares held for the Contract Owner's
account. In connection with the voting of Funding Option shares held by it, the
Company shall arrange for the handling and tallying of proxies received from
Contract Owners. The Company as such, shall have no right, except as hereinafter
provided, to vote any Fund Option shares held by it thereunder which may be
registered in its name or the names of its
31
<PAGE> 33
nominees. The Company will, however, vote the Funding Option shares held by it
in accordance with the instructions received from the Contract Owners for whose
accounts the Funding Option shares are held. If a Contract Owner desires to
attend any meeting at which shares held for the Contract Owner's benefit may be
voted, the Contract Owner may request the Company to furnish a proxy or
otherwise arrange for the exercise of voting rights with respect to the Funding
Option shares held for such Contract Owner's account. In the event that the
Contract Owner gives no instructions or leaves the manner of voting
discretionary, the Company will vote such shares of the appropriate Funding
Option, including any of its own shares, in the same proportion as shares of
that Fund Option for which instructions have been received.
A Contract Owner or Participant, as appropriate, is entitled to one full or
fractional vote for each full or fractional Accumulation or Annuity Unit owned.
The Contract Owner has voting rights throughout the life of the Contract. Vested
Participants have voting rights for as long as participation in the Contract
continues. Voting rights attach only to Separate Account interests.
During the Annuity period under a Contract the number of votes will decrease as
the assets held to fund Annuity benefits decrease.
DISTRIBUTION OF THE CONTRACTS
Tower Square Securities, Inc. ("Tower Square") serves as principal underwriter
for the securities issued with respect to the Separate Account. The Company is
the custodian of the Separate Account's assets. It is currently anticipated that
an affiliated broker-dealer may become the principal underwriter for the
Contracts during 1997.
The Contracts will be sold by salespersons of Tower Square who represent the
Company as insurance and variable annuity agents and who are registered
representatives of Tower Square or broker-dealers who have entered into
distribution agreements with Tower Square. The compensation paid to sales
representatives will not exceed 5% of payments made under the Contracts. Tower
Square is registered with the Commission under the Securities Exchange Act of
1934 as a Broker-Dealer and is a member of the National Association of
Securities Dealers, Inc. Tower Square is an indirect wholly owned subsidiary of
The Company.
POSTPONEMENT OF PAYMENT (EMERGENCY PROCEDURE)
Payment of any benefit or values may be postponed whenever (1) the New York
Stock Exchange is closed; (2) when trading on the New York Stock Exchange is
restricted; (3) when an emergency exists as determined by the Securities and
Exchange Commission so that disposal of the securities held in the Funding
Options is not reasonably practicable or it is not reasonably practicable to
determine the value of the Funding Option's net assets; or (4) during any other
period when the Securities and Exchange Commission, by order, so permits for the
protection of security holders. Any provision of the Contract which specifies a
Valuation Date will be superseded by this Emergency Procedure.
CONTRACT MODIFICATION
The Company reserves the right to modify the Contract to keep it qualified under
all related law and regulations which are in effect during the term of this
Contract. We will obtain the approval of any regulatory authority needed for the
modifications.
LEGAL PROCEEDINGS
The Company's Counsel with respect to federal laws and regulations applicable to
the issue and sale of the Contracts and with respect to Connecticut law is
Kathleen A. McGah, Esquire, Counsel and Assistant Secretary of The Travelers
Insurance Company. She has passed on all legal matters affecting the Separate
Account. Currently, there are no material legal proceedings affecting the
Separate Account.
32
<PAGE> 34
APPENDIX A
CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
The Statement of Additional Information contains more specific information and
financial statements relating to the Separate Account and the Company. A list of
the contents of the Statement of Additional Information is set forth below:
The Insurance Company
Principal Underwriter
Distribution and Management Agreement
Valuation of Assets
Performance Information
Independent Accountants
Financial Statements
- -------------------------------------------------------------------------------
COPIES OF THE STATEMENT OF ADDITIONAL INFORMATION DATED , 1996 (FORM
NO. L 12549S) ARE AVAILABLE WITHOUT CHARGE. TO REQUEST A COPY, PLEASE COMPLETE
THE COUPON FOUND BELOW AND MAIL IT TO: THE TRAVELERS INSURANCE COMPANY, ANNUITY
SERVICES, ONE TOWER SQUARE, HARTFORD, CONNECTICUT, 06183-9061.
Name:
- --------------------------------------------------------------------------------
Address:
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
33
<PAGE> 35
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE> 36
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE> 37
THE TRAVELERS SEPARATE ACCOUNT QP
FOR VARIABLE ANNUITIES
L-12549 Printed in U.S.A.
TIC Ed. -96
<PAGE> 38
STATEMENT OF ADDITIONAL INFORMATION
dated
, 1996
---------------
for
THE TRAVELERS SEPARATE ACCOUNT QP FOR VARIABLE ANNUITIES
ISSUED BY
THE TRAVELERS INSURANCE COMPANY
This Statement of Additional Information ("SAI") is not a prospectus but
relates to, and should be read in conjunction with, the Group Variable Annuity
Contract Prospectus dated __________, 1996. A copy of the Prospectus may be
obtained by writing to The Travelers Insurance Company, Annuity Services, One
Tower Square, Hartford, Connecticut 06183-9061, or by calling 1-800-842-8573.
TABLE OF CONTENTS
<TABLE>
<S> <C>
THE INSURANCE COMPANY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
PRINCIPAL UNDERWRITER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
DISTRIBUTION AND MANAGEMENT AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
VALUATION OF ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
PERFORMANCE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
INDEPENDENT ACCOUNTANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
</TABLE>
<PAGE> 39
THE INSURANCE COMPANY
The Travelers Insurance Company (the "Company"), is a stock insurance
company chartered in 1864 in Connecticut and continuously engaged in the
insurance business since that time. It is licensed to conduct life insurance
business in all states of the United States, the District of Columbia, Puerto
Rico, Guam, the U.S. and British Virgin Islands and the Bahamas. The Company
is an indirect wholly owned subsidiary of Travelers Group Inc. The Company's
Home Office is located at One Tower Square, Hartford, Connecticut 06183.
STATE REGULATION. The Company is subject to the laws of the state of
Connecticut governing insurance companies and to regulation by the Insurance
Commissioner of the state of Connecticut (the "Commissioner"). An annual
statement covering the operations of the Company for the preceding year, as
well as its financial conditions as of December 31 of such year, must be filed
with the Commissioner in a prescribed format on or before March 1 of each year.
The Company's books and assets are subject to review or examination by the
Commissioner or his agents at all times, and a full examination of its
operations is conducted at least once every four years.
The Company is also subject to the insurance laws and regulations of all
other states in which it is licensed to operate. However, the insurance
departments of each of these states generally apply the laws of the
jurisdiction of domicile in determining the field of permissible investments.
THE SEPARATE ACCOUNT. Travelers Separate Account QP for Variable
Annuities ("Fund QP") meets the definition of a separate account under the
federal securities laws, and will comply with the provisions of the 1940 Act.
Additionally, the operations of Fund QP are subject to the provisions of
Section 38a-433 of the Connecticut General Statutes which authorizes the
Commissioner to adopt regulations under it. Section 38a-433 contains no
restrictions on the investments of the Separate Account, and the Commissioner
has adopted no regulations under the Section that affect the Separate Account.
PRINCIPAL UNDERWRITER
Tower Square Securities, Inc. ("Tower Square "), serves as principal
underwriter for Fund QP and the Contracts. The offering is continuous. Tower
Square is an indirect wholly owned subsidiary of The Company and its
principal executive offices are located at One Tower Square, Hartford,
Connecticut. It is anticipated that an affiliated broker-dealer may become the
principal underwriter for the Contracts in 1997.
1
<PAGE> 40
DISTRIBUTION AND MANAGEMENT AGREEMENT
Under the terms of the Distribution and Management Agreement among
Fund QP, the Company and Tower Square, the Company provides all administrative
services and mortality and expense risk guarantees related to variable annuity
contracts sold by the Company in connection with the Fund QP. Tower Square
performs the sales functions related to the Contracts. The Company reimburses
TSSI for commissions paid, other sales expenses and certain overhead expenses
connected with sales functions. The Company also pays all costs (including
costs associated with the preparation of sales literature); all costs of
qualifying the Fund QP and the variable annuity contract with regulatory
authorities; the costs of proxy solicitation; and all custodian, accountant's
and legal fees. The Company also provides without cost to the Fund QP all
necessary office space, facilities, and personnel to manage its affairs.
VALUATION OF ASSETS
FUNDING OPTIONS: The value of the assets of each Underlying Fund is determined
on each Valuation Date as of the close of the New York Stock Exchange. Each
security traded on a national securities exchange is valued at the last
reported sale price on the Valuation Date. If there has been no sale on that
day, then the value of the security is taken to be the mean between the
reported bid and asked prices on the Valuation Date or on the basis of
quotations received from a reputable broker or any other recognized source.
Any security not traded on a securities exchange but traded in the
over-the-counter-market and for which market quotations are readily available
is valued at the mean between the quoted bid and asked prices on the Valuation
Date or on the basis of quotations received from a reputable broker or any
other recognized source.
Securities traded on the over-the-counter-market and listed securities
with no reported sales are valued at the mean between the last reported bid and
asked prices or on the basis of quotations received from a reputable broker or
other recognized source.
Short-term investments for which a quoted market price is available
are valued at market. Short-term investments maturing in more than sixty days
for which there is no reliable quoted market price are valued by "marking to
market" (computing a market value based upon quotations from dealers or issuers
for securities of a similar type, quality and maturity.) "Marking to market"
takes into account unrealized appreciation or depreciation due to changes in
interest rates or other factors which would influence the current fair values
of such securities. Short-term investments maturing in sixty days or less for
which there is no reliable quoted market price are valued at amortized cost
which approximates market.
THE CASH VALUE: The value of an Accumulation Unit on any Valuation Date is
determined by multiplying the value on the immediately preceding Valuation Date
by the net investment factor for the Valuation Period just ended. The net
investment factor is used to measure the investment performance of a Funding
Option from one Valuation Period to the next. The net investment factor for a
Funding Option for any Valuation Period is equal to the sum of 1.000000 plus
the net investment rate (the gross investment rate less any applicable Funding
Option deductions during the Valuation Period relating to
2
<PAGE> 41
the Insurance Charge and the Funding Option Administrative Charge). The gross
investment rate of a Funding Option is equal to (a - b) / c where:
(a) = investment income plus capital gains and losses (whether realized or
unrealized);
(b) = any deduction for applicable taxes (presently zero); and
(c) = the value of the assets of the Funding Option at the beginning of the
Valuation Period.
The gross investment rate may be either positive or negative. A Funding
Option's investment income includes any distribution whose ex-dividend date
occurs during the Valuation Period.
PERFORMANCE INFORMATION
YIELD QUOTATIONS OF MONEY MARKET ACCOUNTS
Yield quotations of Money Market Accounts are calculated using the
base period return for a seven-day period. The base period return is
calculated using a hypothetical pre-existing account having a balance of one
accumulation unit at the beginning of the period; base period return per
accumulation unit is equal to accrued interest on portfolio securities plus or
minus amortized purchase discount or premium less all accrued expenses for
investment advisory fees and mortality and expense guarantees, and less a pro
rata portion of the contract administrative charge (calculated in the manner
described under "Total Return Performance" below), divided by the
accumulation unit value at the beginning of the period. Realized capital gains
or losses and unrealized appreciation or depreciation of the portfolio are not
included in the base period return, but are included in accumulation unit
values.
Current yield is equal to the base period return multiplied by 365,
and the result divided by 7. There are various current yields for the Smith
Barney Money Market Portfolio for the seven-day period ended December 29, 1995,
depending on the charges assessed under the contract. The current yields were
as follows:
4.45% (for .60% mortality and expense risk charge ("m&e")
4.24% (for .80% m&e)
4.10% (for .95% m&e)
3.89% (for 1.15% m&e)
3.74% (for 1.20% m&e and .10% admin. charge)
Effective yield, which includes the effects of compounding, is equal
to the sum of 1 plus the base period return, raised to a power equal to 365
divided by 7, minus 1. There are various effective yields for the Smith Barney
Money Market Portfolio for the seven-day period ended December 29, 1995
depending on the charges assessed under the contract. The effective yields were
as follows:
4.55% (for .60% mortality and expense risk charge ("m&e")
4.33% (for .80% m&e)
4.18% (for .95% m&e)
3.97% (for 1.15% m&e)
3.81% (for 1.20% m&e and .10% admin. charge)
These quotations do not reflect a deduction for any applicable
surrender charge. If the surrender charge was included, the applicable yield
and effective yield would be reduced.
TOTAL RETURN PERFORMANCE
From time to time, the Company may advertise several types of
historical performance for the Funding Options of Fund QP. The Company may
advertise the "standardized average annual total
3
<PAGE> 42
returns" of the Funding Option, calculated in a manner prescribed by the
Securities and Exchange Commission ("SEC"), as well as the "non-standardized
average annual total return," as described below:
STANDARDIZED METHOD. Quotations of average annual total return are
computed according to a formula in which a hypothetical initial investment of
$1,000 is applied to the Funding Option, and then related to ending redeemable
values over one-, five-, and ten-year periods, or for a period covering the time
during which the Funding Option has been in existence if less. These quotations
reflect the deduction of all maximum recurring charges during each period (on a
pro rata basis in the case of fractional periods). The deduction for the
$15 semiannual account charge is converted to a percentage of assets based on
the actual fees collected (or anticipated, if a new product), divided by
the average net assets (or anticipated average net assets, if a new product)
for contracts sold under the Prospectus to which this Statement of Additional
Information relates. Each quotation assumes a total redemption at the end of
each period with the assessment of any applicable maximum surrender charge or
deferred sales charge at that time.
NON-STANDARDIZED METHOD. Non-standardized "average annual total
return" will be calculated in a similar manner based on the performance of the
Funding Options over a period of time, usually for the calendar year-to-date,
and for the past one-, three-, five- and ten-year periods. Non-standardized
total return will not reflect the deduction of any applicable surrender or
deferred sales charge or the $15 semiannual account charge, which, if
reflected, would decrease the level of performance shown. The sales charge is
not reflected because the Contract is designed for long-term investment.
GENERAL. Within the guidelines prescribed by the SEC and the National
Association of Securities Dealers, Inc. ("NASD"), performance information may
be quoted numerically or may be presented in a table, graph or other
illustration. Advertisements may include data comparing performance to
well-known indices of market performance (including, but not limited to, the
Dow Jones Industrial Average, the Standard & Poor's (S&P) 500 Index and the S&P
400 Index, the Lehman Brothers Long T-Bond Index, the Russell 1000, 2000 and
3000 Indices, the Value Line Index, and the Morgan Stanley Capital
International's EAFE Index). Advertisements may also include published
editorial comments and performance rankings compiled by independent
organizations (including, but not limited to, Lipper Analytical Services, Inc.
and Morningstar, Inc.) and publications that monitor the performance of Fund QP
and the Underlying Funds.
For Funding Options that were in existence prior to the date they
became available under Fund QP, the standardized and non-standardized average
annual total return quotations will show the investment performance that such
Funding Options would have achieved (reduced by the applicable maximum charges)
had they been held under the Contract for the period quoted. The total return
quotations are based upon historical earnings and are not necessarily
representative of future performance. An Owner's Cash Value at redemption may
be more or less than original cost.
Average annual total returns for each of the Funding Options computed
according to the standardized and non-standardized methods for the periods
ending December 31, 1995 are set forth in the following tables. The tables
represent the various levels of mortality and expense risk and administration
charges.
4
<PAGE> 43
TOTAL RETURN CALCULATIONS
FUNDING OPTIONS OF FUND QP
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
STANDARDIZED: NON-STANDARDIZED:
- -----------------------------------------------------------------------------------------------------------------------
M&E: 1.20% PLUS 1 Year 5 Year 10 Year 1 Year 3 Year 5 Year 10 Year Incept.
ADMIN. CHARGE: .10% Date
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital Appreciation Fund 27.77% 16.33% 9.58% 34.61% 12.85% 17.14% 9.67% 5/83
High Yield Bond Trust 8.24% 11.17% 6.23% 14.03% 7.74% 11.95% 6.32% 5/83
Managed Assets Trust 19.10% 9.58% 10.11% 25.47% 9.33% 10.37% 10.21% 5/83
Dreyfus Stock Index Fund 28.16% 13.68% 10.41%* 35.02% 13.21% 14.48% 10.87%* 9/89
Travelers Series Trust Portfolios:
U.S. Government Securities 16.63% 6.07%* - 22.88% 7.35% 7.27%* - 1/92
Social Awareness Stock 24.99% 9.51%* - 31.68% 10.34% 10.83%* - 5/92
Utilities 21.14% 10.85%* - 27.63% 13.97%* - - 2/94
Templeton Variable Products Series
Fund:
Templeton Bond Fund 7.68% 6.01% 6.04%* 13.44% 5.43% 6.89% 6.42%* 8/88
Templeton Stock Fund 17.35% 15.18% 10.48%* 23.63% 16.44% 15.99% 10.88%* 8/88
Templeton Asset Allocation Fund 14.82% 13.36% 9.62%* 20.97% 12.99% 14.15% 10.02%* 8/88
Variable Insurance Products Fund
Fidelity's High Income Portfolio 13.00% 16.58% 9.94% 19.05% 11.24% 17.39% 10.04% 9/85
Fidelity's Equity-Income 26.57% 18.92% 11.77%* 33.35% 18.05% 19.75% 11.87%* 10/86
Portfolio
Fidelity's Growth Portfolio 26.84% 18.40% 13.26%* 33.63% 15.82% 19.23% 13.35%* 10/86
Variable Insurance Products Fund II
Fidelity's Asset Manager 9.59% 10.53% 9.36%* 15.45% 8.54% 11.30% 9.81%* 9/89
Portfolio
American Odyssey Funds #:
International Equity Fund 11.50% 7.70%* - 17.47% 9.46%* - - 5/93
Emerging Opportunities Fund 23.91% 15.23%* - 30.54% 17.11%* - - 5/93
Core Equity Fund 29.83% 10.19%* - 36.78% 11.98%* - - 5/93
Long-Term Bond Fund 14.73% 5.94%* - 20.88% 7.72%* - - 5/93
Intermediate-Term Bond Fund 7.77% 2.70%* - 13.54% 4.56%* - - 5/93
Short-Term Bond Fund 3.87% 1.75%* - 9.44% 3.64%* - - 5/93
American Odyssey Funds ##:
International Equity Fund 6.81% 5.16%* - 12.53% 6.95%* - - 5/93
Emerging Opportunities Fund 18.70% 12.59%* - 25.05% 14.43%* - - 5/93
Core Equity Fund 24.37% 7.67%* - 31.03% 9.42%* - - 5/93
Long-Term Bond Fund 9.91% 3.41%* - 15.79% 5.25%* - - 5/93
Intermediate-Term Bond Fund 3.23% 0.24%* - 8.76% 2.17%* - - 5/93
Short-Term Bond Fund -0.50% -0.69%* - 4.83% 1.27%* - - 5/93
The Travelers Series Fund, Inc.
Smith Barney Income and Growth
Portfolio 24.68% 14.00%* - 31.35% 17.99%* - - 6/94
Alliance Growth Portfolio 26.36% 19.97%* - 33.12% 24.17%* - - 6/94
Smith Barney International Equity
Portfolio 4.26% -0.36%* - 9.84% 3.12%* - - 6/94
Putnam Diversified Income
Portfolio 9.98% 6.92%* - 15.87% 10.66%* - - 6/94
Smith Barney High Income
Portfolio 11.57% 6.48%* - 17.54% 10.22%* - - 6/94
MFS Total Return Portfolio 17.77% 9.64%* - 24.07% 13.47%* - - 6/94
Smith Barney Money Market
Portfolio -1.24% 0.13%* - 4.05% 3.63%* - - 6/94
</TABLE>
* Since inception.
# Reflects performance of those who DO NOT participate in the CHART Asset
Allocation Program.
## Reflects performance of those who DO participate in the CHART Asset
Allocation Program.
5
<PAGE> 44
TOTAL RETURN CALCULATIONS
FUNDING OPTIONS OF FUND QP
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
STANDARDIZED: NON-STANDARDIZED:
- -----------------------------------------------------------------------------------------------------------------------
M&E: 1.15% 1 Year 5 Year 10 Year 1 Year 3 Year 5 Year 10 Year Incept.
Date
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital Appreciation Fund 27.96% 16.50% 9.79% 34.81% 13.01% 17.31% 9.89% 5/83
High Yield Bond Trust 8.40% 11.34% 6.58% 14.20% 7.90% 12.12% 6.67% 5/83
Managed Assets Trust 19.28% 9.76% 10.28% 25.66% 9.49% 10.53% 10.37% 5/83
Dreyfus Stock Index Fund 28.35% 13.85% 10.58%* 35.22% 13.38% 14.65% 11.03%* 9/89
Travelers Series Trust Portfolios:
U.S. Government Securities 16.81% 6.23%* - 23.06% 7.51% 7.43%* - 1/92
Social Awareness Stock 25.18% 9.67%* - 31.88% 10.50% 11.00%* - 5/92
Utilities 21.33% 11.01%* - 27.82% 14.14%* - - 2/94
Templeton Variable Products Series
Fund:
Templeton Bond Fund 7.84% 6.26% 6.19%* 13.61% 5.59% 7.05% 6.58%* 8/88
Templeton Stock Fund 17.52% 15.36% 10.64%* 23.82% 16.61% 16.16% 11.05%* 8/88
Templeton Asset Allocation Fund 14.99% 13.53% 9.78%* 21.15% 13.16% 14.33% 10.18%* 8/88
Variable Insurance Products Fund
Fidelity's High Income Portfolio 13.17% 16.75% 10.10% 19.23% 11.40% 17.57% 10.20% 9/85
Fidelity's Equity-Income Portfolio 26.76% 19.10% 11.94%* 33.55% 18.23% 19.93% 12.04%* 10/86
Fidelity's Growth Portfolio 27.03% 18.58% 13.43%* 33.83% 16.00% 19.41% 13.52%* 10/86
Variable Insurance Products Fund II
Fidelity's Asset Manager Portfolio 9.75% 10.69% 9.52%* 15.63% 8.70% 11.47% 9.97%* 9/89
American Odyssey Funds #:
International Equity Fund 11.67% 7.86%* - 17.64% 9.62%* - - 5/93
Emerging Opportunities Fund 24.10% 15.40%* - 30.74% 17.28%* - - 5/93
Core Equity Fund 30.03% 10.35%* - 36.98% 12.15%* - - 5/93
Long-Term Bond Fund 14.91% 6.15%* - 21.06% 7.88%* - - 5/93
Intermediate-Term Bond Fund 7.93% 3.03%* - 13.71% 4.71%* - - 5/93
Short-Term Bond Fund 4.03% 2.09%* - 9.60% 3.79%* - - 5/93
American Odyssey Funds ##:
International Equity Fund 6.97% 5.39%* - 12.69% 7.11%* - - 5/93
Emerging Opportunities Fund 18.88% 12.76%* - 25.24% 14.60%* - - 5/93
Core Equity Fund 24.56% 7.83%* - 31.22% 9.58%* - - 5/93
Long-Term Bond Fund 10.07% 3.72%* - 15.96% 5.41%* - - 5/93
Intermediate-Term Bond Fund 3.39% 0.58%* - 8.92% 2.32%* - - 5/93
Short-Term Bond Fund -0.35% -0.34%* - 4.99% 1.42%* - - 5/93
The Travelers Series Fund, Inc.
Smith Barney Income and Growth
Portfolio 24.86% 14.17%* - 31.55% 18.16%* - - 6/94
Alliance Growth Portfolio 26.55% 20.15%* - 33.32% 24.35%* - - 6/94
Smith Barney International Equity
Portfolio 4.41% -0.22%* - 10.01% 3.28%* - - 6/94
Putnam Diversified Income
Portfolio 10.15% 7.08%* - 16.05% 10.82%* - - 6/94
Smith Barney High Income
Portfolio 11.74% 6.64%* - 17.72% 10.38%* - - 6/94
MFS Total Return Portfolio 17.94% 9.80%* - 24.25% 13.64%* - - 6/94
Smith Barney Money Market
Portfolio - 1.09% 0.28%* - 4.21% 3.78%* - - 6/94
</TABLE>
* Since inception.
# Reflects performance of those who DO NOT participate in the CHART Asset
Allocation Program.
## Reflects performance of those who DO participate in the CHART Asset
Allocation Program.
6
<PAGE> 45
TOTAL RETURN CALCULATIONS
FUNDING OPTIONS OF FUND QP
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
STANDARDIZED: NON-STANDARDIZED:
- -----------------------------------------------------------------------------------------------------------------------
M&E: .95% 1 Year 5 Year 10 Year 1 Year 3 Year 5 Year 10 Year Incept.
Date
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital Appreciation Fund 28.22% 16.73% 10.07% 35.08% 13.24% 17.55% 10.17% 5/83
High Yield Bond Trust 8.61% 11.56% 7.03% 14.43% 8.11% 12.34% 7.13% 5/83
Managed Assets Trust 19.51% 9.98% 10.50% 25.91% 9.71% 10.75% 10.59% 5/83
Dreyfus Stock Index Fund 28.61% 14.08% 10.80%* 35.49% 13.61% 14.88% 11.26%* 9/89
Travelers Series Trust Portfolios::
U.S. Government Securities 17.04% 6.44%* - 23.31% 7.72% 7.65%* - 1/92
Social Awareness Stock 25.43% 9.89%* - 32.14% 10.72% 11.22%* - 5/92
Utilities 21.57% 11.23%* - 28.07% 14.37%* - - 2/94
Templeton Variable Products Series
Fund:
Templeton Bond Fund 8.05% 6.52% 6.41%* 13.84% 5.80% 7.26% 6.80%* 8/88
Templeton Stock Fund 17.76% 15.59% 10.86%* 24.06% 16.84% 16.39% 11.27%* 8/88
Templeton Asset Allocation Fund 15.22% 13.76% 10.00%* 21.39% 13.38% 14.55% 10.40%* 8/88
Variable Insurance Products Fund
Fidelity's High Income Portfolio 13.40% 16.98% 10.32% 19.47% 11.62% 17.80% 10.42% 9/85
Fidelity's Equity-Income Portfolio 27.02% 19.34% 12.16%* 33.81% 18.47% 20.17% 12.26%* 10/86
Fidelity's Growth Portfolio 27.28% 18.82% 13.65%* 34.09% 16.23% 19.65% 13.75%* 10/86
Variable Insurance Products Fund II
Fidelity's Asset Manager Portfolio 9.97% 10.91% 9.74%* 15.86% 8.92% 11.69% 10.19%* 9/89
American Odyssey Funds #:
International Equity Fund 11.89% 8.08%* - 17.88% 9.84%* - - 5/93
Emerging Opportunities Fund 24.34% 15.63%* - 31.00% 17.52%* - - 5/93
Core Equity Fund 30.29% 10.57%* - 37.26% 12.37%* - - 5/93
Long-Term Bond Fund 15.13% 6.36%* - 21.30% 8.09%* - - 5/93
Intermediate-Term Bond Fund 8.14% 3.24%* - 13.93% 4.92%* - - 5/93
Short-Term Bond Fund 4.24% 2.33%* - 9.82% 4.00%* - - 5/93
American Odyssey Funds ##:
International Equity Fund 7.18% 5.60%* - 12.92% 7.33%* - - 5/93
Emerging Opportunities Fund 19.11% 12.99%* - 25.49% 14.83%* - - 5/93
Core Equity Fund 24.80% 8.04%* - 31.48% 9.80%* - - 5/93
Long-Term Bond Fund 10.29% 3.92%* - 16.20% 5.62%* - - 5/93
Intermediate-Term Bond Fund 3.59% 0.88%* - 9.14% 2.52%* - - 5/93
Short-Term Bond Fund -0.15% -0.01%* - 5.20% 1.62%* - - 5/93
The Travelers Series Fund, Inc.
Smith Barney Income and Growth
Portfolio 25.11% 14.40%* - 31.81% 18.40%* - - 6/94
Alliance Growth Portfolio 26.80% 20.39%* - 33.58% 24.60%* - - 6/94
Smith Barney International Equity
Portfolio 4.62% -0.02%* - 10.23% 3.48%* - - 6/94
Putnam Diversified Income
Portfolio 10.37% 7.29%* - 16.28% 11.04%* - - 6/94
Smith Barney High Income
Portfolio 11.96% 6.85%* - 17.96% 10.60%* - - 6/94
MFS Total Return Portfolio 18.18% 10.02%* - 24.50% 13.87%* - - 6/94
Smith Barney Money Market
Portfolio -0.90% 0.48%* - 4.41% 3.99%* - - 6/94
</TABLE>
* Since inception.
# Reflects performance of those who DO NOT participate in the CHART Asset
Allocation Program.
## Reflects performance of those who DO participate in the CHART Asset
Allocation Program.
7
<PAGE> 46
TOTAL RETURN CALCULATIONS
FUNDING OPTIONS OF FUND QP
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
STANDARDIZED: NON-STANDARDIZED:
- -----------------------------------------------------------------------------------------------------------------------
M&E: .80% 1 Year 5 Year 10 Year 1 Year 3 Year 5 Year 10 Year Incept.
Date
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital Appreciation Fund 28.41% 16.91% 10.28% 35.28% 13.41% 17.73% 10.38% 5/83
High Yield Bond Trust 8.78% 11.73% 7.37% 14.60% 8.28% 12.51% 7.47% 5/83
Managed Assets Trust 19.69% 10.15% 10.66% 26.10% 9.88% 10.92% 10.76% 5/83
Dreyfus Stock Index Fund 28.80% 14.25% 10.97%* 35.69% 13.78% 15.05% 11.42%* 9/89
Travelers Series Trust Portfolios:
U.S. Government Securities 17.22% 6.60%* - 23.49% 7.88% 7.81%* - 1/92
Social Awareness Stock 25.62% 10.06%* - 32.34% 10.89% 11.38%* - 5/92
Utilities 21.75% 11.40%* - 28.27% 14.54%* - - 2/94
Templeton Variable Products Series Fund:
Templeton Bond Fund 8.22% 6.68% 6.57%* 14.01% 5.96% 7.42% 6.96%* 8/88
Templeton Stock Fund 17.94% 15.76% 11.03%* 24.25% 17.02% 16.57% 11.43%* 8/88
Templeton Asset Allocation Fund 15.40% 13.93% 10.17%* 21.57% 13.55% 14.73% 10.57%* 8/88
Variable Insurance Products Fund
Fidelity's High Income Portfolio 13.57% 17.16% 10.49%* 19.65% 11.79% 17.98% 10.59% 9/85
Fidelity's Equity-Income Portfolio 27.21% 19.52% 12.33%* 34.01% 18.64% 20.35% 12.43%* 10/86
Fidelity's Growth Portfolio 27.47% 19.00% 13.82%* 34.30% 16.40% 19.83% 13.92%* 10/86
Variable Insurance Products Fund II
Fidelity's Asset Manager Portfolio 10.13% 11.08% 9.91%* 16.03% 9.08% 11.86% 10.36%* 9/89
American Odyssey Funds #:
International Equity Fund 12.06% 8.24%* - 18.05% 10.00%* - - 5/93
Emerging Opportunities Fund 24.53% 15.81%* - 31.19% 17.69%* - - 5/93
Core Equity Fund 30.48% 10.74%* - 37.46% 12.54%* - - 5/93
Long-Term Bond Fund 15.31% 6.52%* - 21.48% 8.25%* - - 5/93
Intermediate-Term Bond Fund 8.30% 3.39%* - 14.10% 5.08%* - - 5/93
Short-Term Bond Fund 4.39% 2.48%* - 9.98% 4.16%* - - 5/93
American Odyssey Funds ##:
International Equity Fund 7.34% 5.76%* - 13.09% 7.49%* - - 5/93
Emerging Opportunities Fund 19.29% 13.16%* - 25.67% 15.00%* - - 5/93
Core Equity Fund 24.99% 8.20%* - 31.68% 9.97%* - - 5/93
Long-Term Bond Fund 10.46% 4.08%* - 16.37% 5.78%* - - 5/93
Intermediate-Term Bond Fund 3.75% 1.03%* - 9.30% 2.68%* - - 5/93
Short-Term Bond Fund 0.00% 0.14%* - 5.36% 1.77%* - - 5/93
The Travelers Series Fund, Inc.
Smith Barney Income and Growth
Portfolio 25.30% 14.57%* - 32.01% 18.58%* - - 6/94
Alliance Growth Portfolio 26.99% 20.57%* - 33.78% 24.79%* - - 6/94
Smith Barney International Equity
Portfolio 4.78% 0.13%* - 10.39% 3.64%* - - 6/94
Putnam Diversified Income
Portfolio 10.53% 7.45%* - 16.45% 11.21%* - - 6/94
Smith Barney High Income
Portfolio 12.13% 7.01%* - 18.13% 10.77%* - - 6/94
MFS Total Return Portfolio 18.35% 10.18%* - 24.69% 14.04%* - - 6/94
Smith Barney Money Market
Portfolio - 0.75% 0.63%* - 4.57% 4.15%* - - 6/94
</TABLE>
* Since inception.
# Reflects performance of those who DO NOT participate in the CHART Asset
Allocation Program.
## Reflects performance of those who DO participate in the CHART Asset
Allocation Program.
8
<PAGE> 47
TOTAL RETURN CALCULATIONS
FUNDING OPTIONS OF FUND QP
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
STANDARDIZED: NON-STANDARDIZED:
- -----------------------------------------------------------------------------------------------------------------------
M&E: .60% 1 Year 5 Year 10 Year 1 Year 3 Year 5 Year 10 Year Incept.
Date
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capital Appreciation Fund 35.43% 17.86% 10.56% 35.55% 13.64% 17.96% 10.66% 5/83
High Yield Bond Trust 14.73% 12.64% 7.82% 14.83% 8.49% 12.74% 7.92% 5/83
Managed Assets Trust 26.24% 11.04% 10.88% 26.35% 10.10% 11.14% 10.98% 5/83
Dreyfus Stock Index Fund 35.85% 15.18% 11.55%* 35.97% 14.00% 15.28% 11.65%* 9/89
Travelers Series Trust Portfolios:
U.S. Government Securities 23.63% 7.93%* - 23.74% 8.10% 8.02%* - 1/92
Social Awareness Stock 32.49% 11.51%* - 32.60% 11.11% 11.61%* - 5/92
Utilities 28.41% 14.67%* - 28.52% 14.77%* - - 2/94
Templeton Variable Products Series Fund:
Templeton Bond Fund 14.14% 7.54% 7.07%* 14.24% 6.17% 7.64% 7.17%* 8/88
Templeton Stock Fund 24.39% 16.70% 11.56%* 24.50% 17.25% 16.80% 11.66%* 8/88
Templeton Asset Allocation Fund 21.71% 14.86% 10.69%* 21.82% 13.78% 14.96% 10.79%* 8/88
Variable Insurance Products Fund
Fidelity's High Income Portfolio 19.78% 18.11% 10.71% 19.89% 12.01% 18.21% 10.81% 9/85
Fidelity's Equity-Income Portfolio 34.17% 20.49% 12.56%* 34.28% 18.88% 20.59% 12.66%* 10/86
Fidelity's Growth Portfolio 34.45% 19.96% 14.05%* 34.56% 16.63% 20.07% 14.15%* 10/86
Variable Insurance Products Fund II
Fidelity's Asset Manager Portfolio 16.16% 11.98% 10.48%* 16.26% 9.30% 12.08% 10.58%* 9/89
American Odyssey Funds #:
International Equity Fund 18.19% 10.13%* - 18.29% 10.22%* - 5/93
Emerging Opportunities Fund 31.34% 17.83%* - 31.46% 17.93%* - 5/93
Core Equity Fund 37.62% 12.67%* - 37.74% 12.77%* - 5/93
Long-Term Bond Fund 21.62% 8.37%* - 21.72% 8.47%* - 5/93
Intermediate-Term Bond Fund 14.23% 5.20%* - 14.33% 5.29%* - 5/93
Short-Term Bond Fund 10.10% 4.27%* - 10.20% 4.36%* - 5/93
American Odyssey Funds ##:
International Equity Fund 13.22% 7.61%* - 13.31% 7.70%* - 5/93
Emerging Opportunities Fund 25.82% 15.13%* - 25.93% 15.23%* - 5/93
Core Equity Fund 31.83% 10.09%* - 31.94% 10.19%* - 5/93
Long-Term Bond Fund 16.50% 5.90%* - 16.60% 5.99%* - 5/93
Intermediate-Term Bond Fund 9.43% 2.79%* - 9.52% 2.88%* - 5/93
Short-Term Bond Fund 5.47% 1.89%* - 5.57% 1.98%* - 5/93
The Travelers Series Fund, Inc.
Smith Barney Income and Growth
Portfolio 32.16% 18.71%* - 32.27% 18.81%* - 6/94
Alliance Growth Portfolio 33.94% 24.93%* - 34.05% 25.03%* - 6/94
Smith Barney International Equity
Portfolio 10.51% 3.75%* - 10.61% 3.84%* - 6/94
Putnam Diversified Income
Portfolio 16.58% 11.34%* - 16.68% 11.43%* - 6/94
Smith Barney High Income
Portfolio 18.27% 10.89%* - 18.37% 10.99%* - 6/94
MFS Total Return Portfolio 24.83% 14.16%* - 24.94% 14.26%* - 6/94
Smith Barney Money Market
Portfolio 4.69% 4.26%* - 4.78% 4.35%* - 6/94
</TABLE>
* Since inception.
# Reflects performance of those who DO NOT participate in the CHART Asset
Allocation Program.
## Reflects performance of those who DO participate in the CHART Asset
Allocation Program.
9
<PAGE> 48
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P., certified public accountants, 100 Pearl Street,
Hartford, Connecticut, are the independent auditors for Fund QP. The services
provided to Fund QP will include primarily the audit of the Fund's financial
statements.
The consolidated balance sheet of The Travelers Insurance Company and
Subsidiaries (the "Company") as of December 31, 1995 and 1994 and the
consolidated statements of operation and retained earnings and cash flows for
each of the years then ended, have been included herein in reliance upon the
report of KPMG Peat Marwick LLP, independent certified public accountants, and
upon the authority of said firm as experts in accounting and auditing. The
report of KPMG Peat Marwick LLP covering the December 31, 1995 consolidated
financial statements of the Company refers to a change in the accounting for
investments in accordance with provisions of Statement of Financial Accounting
Standards No. 115, "Accounting for Certain Investments in Debt and Equity
Securities," in 1994.
The consolidated statements of operations and retained earnings and
cash flows of the Company for the year ended December 31, 1993, have been
included herein in reliance upon the report dated January 24, 1994 of Coopers &
Lybrand L.L.P., certified public accountants, and upon the authority of said
firm as experts in accounting and auditing.
FINANCIAL STATEMENTS
Financial Statements for Fund QP are not available since the Fund had
no assets as of the effective date of this SAI. Financial statements for The
Travelers Insurance Company are included in this SAI.
10
<PAGE> 49
Independent Auditors' Report
The Board of Directors and Shareholder of
The Travelers Insurance Company and Subsidiaries:
We have audited the accompanying consolidated balance sheet of The Travelers
Insurance Company and Subsidiaries as of December 31, 1995 and 1994, and the
related consolidated statements of operations and retained earnings and cash
flows for the years then ended. These consolidated financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these consolidated 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.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of The Travelers
Insurance Company and Subsidiaries as of December 31, 1995 and 1994, and the
results of their operations and their cash flows for the years then ended, in
conformity with generally accepted accounting principles.
As discussed in note 3 to the consolidated financial statements, the Company
adopted the provisions of Statement of Financial Accounting Standards No. 115,
"Accounting for Certain Investments in Debt and Equity Securities," in 1994.
/s/KPMG Peat Marwick LLP
------------------------
Hartford, Connecticut
January 16, 1996
14
<PAGE> 50
Report of Independent Accountants
To the Board of Directors and Shareholder of
The Travelers Insurance Company and Subsidiaries:
We have audited the consolidated statements of operations and retained earnings
and cash flows of The Travelers Insurance Company and Subsidiaries for the year
ended December 31, 1993. These consolidated financial statements are the
responsibility of Company management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the consolidated financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the consolidated financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall consolidated
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated results of operations and
cash flows of The Travelers Insurance Company and Subsidiaries for the year
ended December 31, 1993 in conformity with generally accepted accounting
principles.
/s/ COOPERS & LYBRAND L.L.P.
- ----------------------------
Hartford, Connecticut
January 24, 1994
15
<PAGE> 51
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS AND RETAINED EARNINGS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
(for the year ended December 31, in millions) 1995 1994 | 1993
- ---------------------------------------------------------------------------------------------|-------
<S> <C> <C> | <C>
REVENUES |
Premiums $1,496 $1,492 | $ 330
Net investment income 1,824 1,702 | 1,730
Realized investment gains (losses) 106 13 | (39)
Other 221 199 | 153
- ---------------------------------------------------------------------------------------------|-------
3,647 3,406 | 2,174
- ---------------------------------------------------------------------------------------------|-------
|
BENEFITS AND EXPENSES |
Current and future insurance benefits 1,185 1,216 | 792
Interest credited to contractholders 967 961 | 1,200
Amortization of deferred acquisition costs and |
value of insurance in force 290 281 | 56
Other operating expenses 368 351 | 211
- ---------------------------------------------------------------------------------------------|-------
2,810 2,809 | 2,259
- ---------------------------------------------------------------------------------------------|-------
|
Income (loss) from continuing operations before |
federal income taxes 837 597 | (85)
- ---------------------------------------------------------------------------------------------|-------
|
Federal income taxes: |
Current 233 (96) | (58)
Deferred 57 307 | (48)
- ---------------------------------------------------------------------------------------------|-------
290 211 | (106)
- ---------------------------------------------------------------------------------------------|-------
|
Income from continuing operations 547 386 | 21
|
Discontinued operations, net of income taxes |
Income from operations (net of taxes of $18, $83 and $48) 72 150 | 120
Gain on disposition (net of taxes of $68, $18 and $0) 131 9 | -
- ---------------------------------------------------------------------------------------------|-------
Income from discontinued operations 203 159 | 120
- ---------------------------------------------------------------------------------------------|-------
|
Net income 750 545 | 141
Retained earnings beginning of year 1,562 1,017 | 888
Dividend to parent - - | (14)
Preference stock tax benefit allocated by parent - - | 2
- ---------------------------------------------------------------------------------------------|-------
Retained earnings end of year $2,312 $1,562 | $1,017
- -----------------------------------------------------------------------------------------------------
</TABLE>
See notes to consolidated financial statements.
16
<PAGE> 52
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
(at December 31, in millions) 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Fixed maturities, available for sale at market (cost, $18,187; $18,579) $18,842 $17,260
Equity securities, at market (cost, $182; $173) 224 169
Mortgage loans 3,626 4,938
Real estate held for sale, net of accumulated depreciation of $9; $9 293 383
Policy loans 1,888 1,581
Short-term securities 1,554 2,279
Other investments 874 885
- -------------------------------------------------------------------------------------------------------------
Total investments 27,301 27,495
- -------------------------------------------------------------------------------------------------------------
Cash 73 102
Investment income accrued 338 362
Premium balances receivable 107 215
Reinsurance recoverables 4,107 2,915
Deferred acquisition costs and value of insurance in force 1,962 1,939
Deferred federal income taxes - 950
Separate and variable accounts 6,949 5,160
Other assets 1,464 1,397
- -------------------------------------------------------------------------------------------------------------
Total assets $42,301 $40,535
- -------------------------------------------------------------------------------------------------------------
LIABILITIES
Contractholder funds $14,525 $16,354
Future policy benefits 11,783 11,480
Policy and contract claims 571 1,222
Separate and variable accounts 6,916 5,128
Short-term debt 73 74
Deferred federal income taxes 32 -
Other liabilities 2,173 1,923
- -------------------------------------------------------------------------------------------------------------
Total liabilities 36,073 36,181
- -------------------------------------------------------------------------------------------------------------
SHAREHOLDER'S EQUITY
Common stock, par value $2.50; 40 million
shares authorized, issued and outstanding 100 100
Additional paid-in capital 3,134 3,452
Retained earnings 2,312 1,562
Unrealized investment gains (losses), net of taxes 682 (760)
- -------------------------------------------------------------------------------------------------------------
Total shareholder's equity 6,228 4,354
- -------------------------------------------------------------------------------------------------------------
Total liabilities and shareholder's equity $42,301 $40,535
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to consolidated financial statements.
17
<PAGE> 53
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
Increase (Decrease) in Cash
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
(for the year ended December 31, in millions) 1995 1994 | 1993
- -------------------------------------------------------------------------------------------------|----------
<S> <C> <C> | <C>
CASH FLOWS FROM OPERATING ACTIVITIES |
Premiums collected $ 1,346 $ 1,394 | $ 551
Net investment income received 1,855 1,719 | 1,638
Other revenues received 90 (2) | 2
Benefits and claims paid (846) (1,115) | (960)
Interest credited to contractholders (960) (868) | (1,097)
Operating expenses paid (615) (536) | (231)
Income taxes (paid) refunded (63) (27) | 25
Trading account investments, (purchases) sales, net - - | (1,585)
Other (137) (81) | 308
- -------------------------------------------------------------------------------------------------|----------
Net cash provided by (used in) operating activities 670 484 | (1,349)
Net cash provided by (used in) discontinued operations (596) 233 | (23)
- -------------------------------------------------------------------------------------------------|-----------
Net cash provided by (used in) operations 74 717 | (1,372)
- -------------------------------------------------------------------------------------------------|-----------
CASH FLOWS FROM INVESTING ACTIVITIES |
Investment repayments |
Fixed maturities 1,974 2,528 | 2,369
Mortgage loans 680 1,266 | 1,103
Proceeds from investments sold |
Fixed maturities 6,773 1,316 | 99
Equity securities 379 357 | 75
Mortgage loans 704 546 | 290
Real estate held for sale 253 728 | 949
Investments in |
Fixed maturities (10,748) (4,594) | (2,968)
Equity securities (305) (340) | (51)
Mortgage loans (144) (102) | (246)
Policy loans, net (325) (193) | (2)
Short-term securities, (purchases) sales, net 291 (367) | 850
Other investments, (purchases) sales, net (267) (299) | 41
Securities transactions in course of settlement 258 24 | (7)
Net cash provided by (used in) investing activities of |
discontinued operations 1,425 (261) | 113
- -------------------------------------------------------------------------------------------------|----------
Net cash provided by investing activities 948 609 | 2,615
- -------------------------------------------------------------------------------------------------|----------
CASH FLOWS FROM FINANCING ACTIVITIES |
Issuance (redemption) of short-term debt, net (1) 73 | -
Contractholder fund deposits 2,705 1,951 | 2,884
Contractholder fund withdrawals (3,755) (3,357) | (4,264)
Dividends to parent company - - | (14)
Return of capital to parent company - (23) | -
Net cash provided by financing activities |
of discontinued operations - 84 | 121
Other - (2) | 6
- -------------------------------------------------------------------------------------------------|----------
Net cash used in financing activities (1,051) (1,274) | (1,267)
- -------------------------------------------------------------------------------------------------|----------
Net increase (decrease) in cash $ (29) $ 52 | $ (24)
- ------------------------------------------------------------------------------------------------------------
Cash at December 31 $ 73 $ 102 $ 50
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See notes to consolidated financial statements.
18
<PAGE> 54
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. NATURE OF OPERATIONS
The Travelers Insurance Company is a wholly owned subsidiary of The
Travelers Insurance Group Inc. (TIGI), which is an indirect, wholly owned
subsidiary of Travelers Group Inc. (Travelers).
The Travelers Insurance Company and its subsidiaries (the Company)
principally operates through one major business segment: Life and
Annuity, which offers individual life, long-term care, annuities and
investment products to individuals and small businesses, and investment
products to employer-sponsored retirement and savings plans. The
Company's Corporate and Other Operations segment manages the investment
portfolio of the Company.
Individual products are primarily marketed through independent agents and
through two of the Company's affiliates, The Copeland Companies and the
financial consultants of Smith Barney, Inc. (Smith Barney). Group pension
products and annuities are marketed by the Company's salaried staff
directly to plan sponsors and are also placed through independent
consultants and investment advisers.
The Company sold group life and health insurance through its Managed Care
and Employee Benefits Operations (MCEBO) through 1994. See note 4.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Significant accounting policies used in the preparation of the
accompanying financial statements follow.
Basis of presentation
The consolidated financial statements include the accounts of the
Company and its insurance and noninsurance subsidiaries. Significant
intercompany transactions have been eliminated.
In December 1992, Primerica Corporation (Primerica) acquired
approximately 27% of the common stock of the Company's then parent, The
Travelers Corporation (the 27% Acquisition). The 27% Acquisition was
accounted for as a purchase. Effective December 31, 1993, Primerica
acquired the approximately 73% of The Travelers Corporation common stock
which it did not already own, and The Travelers Corporation was merged
into Primerica, which was renamed Travelers Group Inc. This was effected
through the exchange of .80423 shares of Travelers common stock for each
share of The Travelers Corporation common stock (the Merger). All
subsidiaries of The Travelers Corporation were contributed to TIGI. In
conjunction with the Merger, Travelers contributed Travelers Insurance
Holdings Inc. (formerly Primerica Insurance Holdings, Inc.) and its
subsidiaries (TIHI) to TIGI, which in turn contributed TIHI to the
Company.
TIHI is an intermediate holding company whose primary subsidiaries are
Primerica Life Insurance Company and its subsidiary National Benefit
Life Insurance Company, which primarily offers individual life
insurance. Through September 1995 it also sold specialty accident and
health insurance through its subsidiary Transport Life Insurance Company
(see note 4).
19
<PAGE> 55
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
The consolidated financial statements and the accompanying notes reflect
the historical operations of the Company for the year ended December 31,
1993. The results of operations of TIHI and its subsidiaries are not
included in the 1993 financial statements.
The 27% Acquisition and the Merger were accounted for as a "step
acquisition", and the purchase accounting adjustments were "pushed down"
as of December 31, 1993 to the subsidiaries of TIGI, including the
Company, and reflect adjustments of assets and liabilities of the Company
(except TIHI) to their fair values determined at each acquisition date
(i.e., 27% of values at December 31, 1992 as carried forward and 73% of
the values at December 31, 1993). These assets and liabilities were
recorded at December 31, 1993 based upon management's then best estimate
of their fair values at the respective dates. Evaluation and appraisal of
assets and liabilities, including investments, the value of insurance in
force, other insurance assets and liabilities and related deferred
federal income taxes was completed during 1994. The excess of the 27%
share of assigned value of identifiable net assets over cost at December
31, 1992, which was allocated to the Company through "pushdown"
accounting, was approximately $56 million and is being amortized over ten
years on a straight-line basis. The excess of the purchase price of the
common stock over the fair value of the 73% of net assets acquired at
December 31, 1993, which was allocated to the Company through "pushdown"
accounting, was approximately $340 million and is being amortized over 40
years on a straight-line basis.
The consolidated statements of operations and retained earnings and of
cash flows and the related accompanying notes for the years ended
December 31, 1995 and 1994, which are presented on a purchase accounting
basis, are separated from the corresponding 1993 information, which is
presented on a historical accounting basis, to indicate the difference in
valuation bases.
The preparation of financial statements in conformity with generally
accepted accounting principles 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 revenues and benefits
and expenses during the reporting period. Actual results could differ
from those estimates.
As more fully described in note 4, all of the operations comprising MCEBO
are presented as a discontinued operation and, accordingly, prior year
amounts have been restated.
Certain prior year amounts have been reclassified to conform with the
1995 presentation.
Investments
Fixed maturities include bonds, notes and redeemable preferred stocks.
Fixed maturities are valued based upon quoted market prices, or if quoted
market prices are not available, discounted expected cash flows using
market rates commensurate with the credit quality and maturity of the
investment. Fixed maturities are classified as "available for sale" and
are reported at fair value, with unrealized investment gains and losses,
net of income taxes, charged or credited directly to shareholder's
equity.
20
<PAGE> 56
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
Equity securities, which include common and nonredeemable preferred
stocks, are available for sale and carried at fair value based primarily
on quoted market prices. Changes in fair values of equity securities are
charged or credited directly to shareholder's equity, net of income
taxes.
Mortgage loans are carried at amortized cost. For mortgage loans that are
determined to be impaired, a reserve is established for the difference
between the amortized cost and fair market value of the underlying
collateral. Impaired loans were insignificant at December 31, 1995.
Real estate held for sale is carried at the lower of cost or fair value
less estimated costs to sell. Fair value was established at time of
foreclosure by appraisers, either internal or external, using discounted
cash flow analyses and other acceptable techniques. Thereafter, an
allowance for losses on real estate held for sale is established if the
carrying value of the property exceeds its current fair value less
estimated costs to sell. There was no such allowance at December 31,
1995.
Accrual of income is suspended on fixed maturities or mortgage loans that
are in default, or on which it is likely that future payments will not be
made as scheduled. Interest income on investments in default is
recognized only as payment is received.
Gains or losses arising from futures contracts used to hedge investments
are treated as basis adjustments and are recognized in income over the
life of the hedged investments.
Gains and losses arising from forward contracts used to hedge foreign
investments in the Company's U.S. portfolios are a component of realized
investment gains and losses. Gains and losses arising from forward
contracts used to hedge investments in Canadian operations are reflected
directly in shareholder's equity, net of income taxes.
Interest rate swaps are used to manage interest rate risk in the
investment portfolio and are marked to market with unrealized gains and
losses recorded as a component of shareholder's equity, net of income
taxes. Rate differentials on interest rate swap agreements are accrued
between settlement dates and are recognized as an adjustment to interest
income from the related investment.
Investment Gains and Losses
Realized investment gains and losses are included as a component of
pretax revenues based upon specific identification of the investments
sold on the trade date and, prior to the Merger, included adjustments to
investment valuation reserves. These adjustments reflected changes
considered to be other than temporary in the net realizable value of
investments. Also included are gains and losses arising from the
remeasurement of the local currency value of foreign investments to U.S.
dollars, the functional currency of the Company. The foreign exchange
effects of Canadian operations are included in unrealized gains and
losses.
21
<PAGE> 57
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
Policy Loans
Policy loans are carried at the amount of the unpaid balances that are
not in excess of the net cash surrender values of the related insurance
policies. The carrying value of policy loans, which have no defined
maturities, is considered to be fair value.
Deferred Acquisition Costs and Value of Insurance in Force
Costs of acquiring individual life insurance, annuities and health
business, principally commissions and certain expenses related to policy
issuance, underwriting and marketing, all of which vary with and are
primarily related to the production of new business, are deferred.
Acquisition costs relating to traditional life insurance and guaranteed
renewable health contracts, including long-term care, are amortized over
the period of anticipated premiums; universal life in relation to
estimated gross profits; and annuity contracts employing a level yield
method. For life insurance, a 10- to 25-year amortization period is
used; for guaranteed renewable health, a 10- to 20-year period, and a
10- to 15-year period is employed for annuities. Deferred acquisition
costs are reviewed periodically for recoverability to determine if any
adjustment is required.
The value of insurance in force represents the actuarially determined
present value of anticipated profits to be realized from life insurance,
annuities and health contracts at the date of the Merger using the same
assumptions that were used for computing related liabilities where
appropriate. The value of insurance in force was the actuarially
determined present value of the projected future profits discounted at
interest rates ranging from 14% to 18% for the business acquired. The
value of the business in force is amortized over the contract period
using current interest crediting rates to accrete interest and using
amortization methods based on the specified products. Traditional life
insurance and guaranteed renewable health policies are amortized over
the period of anticipated premiums; universal life is amortized in
relation to estimated gross profits; and annuity contracts are amortized
employing a level yield method. The value of insurance in force is
reviewed periodically for recoverability to determine if any adjustment
is required.
Separate and Variable Accounts
Separate and variable accounts primarily represent funds for which
investment income and investment gains and losses accrue directly to,
and investment risk is borne by, the contractholders. Each account has
specific investment objectives. The assets of each account are legally
segregated and are not subject to claims that arise out of any other
business of the Company. The assets of these accounts are carried at
market value. Certain other separate accounts provide guaranteed levels
of return or benefits and the assets of these accounts are carried at
amortized cost. Amounts assessed to the contractholders for management
services are included in revenues. Deposits, net investment income and
realized investment gains and losses for these accounts are excluded
from revenues, and related liability increases are excluded from
benefits and expenses.
22
<PAGE> 58
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
Goodwill
The excess of the 27% share of assigned value of identifiable assets
over cost at December 31, 1992 allocated to the Company as a result of
the 27% Acquisition amounted to approximately $56 million and is being
amortized over 10 years on a straight-line basis. Goodwill resulting
from the excess of the purchase price over the fair value of the 73% of
net assets acquired related to the Merger amounted to approximately $340
million at December 31, 1993 and is being amortized over 40 years on a
straight-line basis. TIHI has goodwill of $239 million.
Contractholder Funds
Contractholder funds represent receipts from the issuance of universal
life, pension investment and certain individual annuity contracts. Such
receipts are considered deposits on investment contracts that do not
have substantial mortality or morbidity risk. Account balances are also
increased by interest credited and reduced by withdrawals, mortality
charges and administrative expenses charged to the contractholders.
Calculations of contractholder account balances for investment contracts
reflect lapse, withdrawal and interest rate assumptions based on
contract provisions, the Company's experience and industry standards.
Interest rates credited to contractholder funds range from 3.8% to 8.6%.
Contractholder funds also include other funds that policyholders leave
on deposit with the Company.
Future Policy Benefits
Benefit reserves represent liabilities for future insurance policy
benefits. Benefit reserves for life insurance, annuities, and accident
and health policies have been computed based upon mortality, morbidity,
persistency and interest assumptions applicable to these coverages,
which range from 2.5% to 10.0%, including adverse deviation. These
assumptions consider Company experience and industry standards and may
be revised if it is determined that the future experience will differ
substantially from that previously assumed. The assumptions vary by
plan, age at issue, year of issue and duration. Appropriate recognition
has been given to experience rating and reinsurance.
Operating Lease Obligations
At December 31, 1993, operating lease obligations were recorded at the
value assigned at the acquisition dates and included in the consolidated
balance sheet as a component of other liabilities. This liability is
being amortized over the respective lease periods.
23
<PAGE> 59
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
Permitted Statutory Accounting Practices
The Company, domiciled principally in Connecticut and Massachusetts,
prepares statutory financial statements in accordance with the accounting
practices prescribed or permitted by the insurance departments of those
states. Prescribed statutory accounting practices include a variety of
publications of the National Association of Insurance Commissioners as
well as state laws, regulations, and general administrative rules.
Permitted statutory accounting practices encompass all accounting
practices not so prescribed. The impact of any permitted accounting
practices on statutory surplus of the Company is not material.
Premiums
Premiums are recognized as revenues when due. Reserves are established
for the portion of premiums that will be earned in future periods and for
deferred profits on limited-payment policies that are being recognized in
income over the policy term.
Other Revenues
Other revenues include surrender, mortality and administrative charges
and fees as earned on investment, universal life and other insurance
contracts. Other revenues also include gains and losses on dispositions
of assets and operations other than realized investment gains and losses,
revenues of noninsurance subsidiaries, and the pretax operating results
of real estate joint ventures.
Interest Credited to Contractholders
Interest credited to contractholders represents amounts earned by
universal life, pension investment and certain individual annuity
contracts in accordance with contract provisions.
Federal Income Taxes
The provision for federal income taxes is comprised of two components,
current income taxes and deferred income taxes. Deferred federal income
taxes arise from changes during the year in cumulative temporary
differences between the tax basis and book basis of assets and
liabilities. The deferred federal income tax asset is recognized to the
extent that future realization of the tax benefit is more likely than
not, with a valuation allowance for the portion that is not likely to be
recognized.
24
<PAGE> 60
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
Accounting Standards not yet Adopted
Statement of Financial Accounting Standards No. 121, "Accounting for
Long-Lived Assets and for Long-Lived Assets to be Disposed Of"
establishes accounting standards for the impairment of long-lived assets,
certain identifiable intangibles, and goodwill related to those assets to
be held and used and for long-lived assets and certain identifiable
intangibles to be disposed of. This statement requires the write down to
fair value when long-lived assets to be held and used are impaired. It
also requires long-lived assets to be disposed of (e.g., real estate held
for sale) to be carried at the lower of cost or fair value less cost to
sell and does not allow such assets to be depreciated. The adoption of
this statement, effective January 1, 1996, did not have a material effect
on the Company's results of operations, financial condition or liquidity.
In October 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 123, "Accounting for
Stock-Based Compensation" (FAS 123). This statement addresses alternative
accounting treatments for stock-based compensation, such as stock options
and restricted stock. FAS 123 permits either expensing the value of
stock-based compensation over the period earned or disclosing in the
financial statement footnotes the pro forma impact to net income as if
the value of stock-based compensation awards had been expensed. The value
of awards would be measured at the grant date based upon estimated fair
value, using option pricing models. The requirements of this statement
will be effective for 1996 financial statements, although earlier
adoption is permissible if an entity elects to expense the cost of
stock-based compensation. The Company, along with affiliated companies,
participates in stock option and incentive plans sponsored by Travelers.
The Company is currently evaluating the disclosures requirements and
expense recognition alternatives addressed by this statement.
3. CHANGES IN ACCOUNTING PRINCIPLES
Accounting by Creditors for Impairment of a Loan
Effective January 1, 1995, the Company adopted Statement of Financial
Accounting Standards No. 114, "Accounting by Creditors for Impairment of
a Loan," and Statement of Financial Accounting Standards No. 118,
"Accounting by Creditors for Impairment of a Loan - Income Recognition
and Disclosures," which describe how impaired loans should be measured
when determining the amount of a loan loss accrual. These statements
amended existing guidance on the measurement of restructured loans in a
troubled debt restructuring involving a modification of terms. Their
adoption did not have a material impact on the Company's financial
condition, results of operations or liquidity.
25
<PAGE> 61
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
3. CHANGES IN ACCOUNTING PRINCIPLES, Continued
Accounting for Certain Debt and Equity Securities
Effective January 1, 1994, the Company adopted Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investments in Debt
and Equity Securities" (FAS 115), which addresses accounting and
reporting for investments in equity securities that have a readily
determinable fair value and for all debt securities. Investment
securities have been classified as "available for sale" and are reported
at fair value, with unrealized gains and losses, net of income taxes,
charged or credited directly to shareholder's equity. Previously,
securities classified as available for sale were carried at the lower of
aggregate cost or market value. Initial adoption of this standard
resulted in an increase of approximately $232 million (net of taxes) to
net unrealized gains which is included in shareholder's equity.
This increase included an unrealized gain of $133 million (net of income
taxes) on TIHI's investment in the common stock of Travelers. See note
15.
4. ACQUISITIONS AND DISPOSITIONS
In December 1994, the Company and its affiliates sold their group dental
insurance business to Metropolitan Life Insurance Company (MetLife) and
realized a gain on the sale of $9 million (aftertax). On January 3, 1995,
the Company and its affiliates completed the sale of their group life and
related non-medical group insurance businesses to MetLife for $350
million and realized a gain on the sale of $20 million (aftertax). In
connection with the sale, the Company ceded 100% of its risks in the
group life and related businesses to MetLife on an indemnity reinsurance
basis, effective January 1, 1995. In connection with the reinsurance
transaction, the Company transferred assets with a fair market value of
approximately $1.5 billion to MetLife, equal to the statutory reserves
and other liabilities transferred.
On January 3, 1995, the Company and MetLife and certain of their
affiliates formed The MetraHealth Companies, Inc. (MetraHealth) joint
venture by contributing their group medical businesses to MetraHealth, in
exchange for shares of common stock of MetraHealth. No gain was
recognized upon the formation of the joint venture. Upon formation of the
joint venture, the Company owned 42.6% of the outstanding capital stock
of MetraHealth, TIGI owned 7.4% and the other 50% was owned by MetLife
and its affiliates. In March 1995, MetraHealth acquired HealthSpring,
Inc. for common stock of MetraHealth, resulting in a reduction in the
ownership interests of the Company to 41.10%, TIGI to 7.15%, and MetLife
to 48.25%.
In connection with the formation of the joint venture, the transfer of
the fee-based medical business (Administrative Services Only) and other
noninsurance business to MetraHealth was completed on January 3, 1995. As
the medical insurance business of the Company came due for renewal, the
risks were transferred to MetraHealth and the related operating results
for this medical insurance business were reported by the Company in 1995
as part of discontinued operations.
26
<PAGE> 62
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
4. ACQUISITIONS AND DISPOSITIONS, continued
On October 2, 1995, the Company and its affiliates completed the sale of
their ownership in MetraHealth to United HealthCare Corporation. Gross
proceeds to the Company were $708 million in cash, and could increase by
up to $144 million if a contingency payment based on 1995 results is
made. The gain to the Company, not including the contingency payment,
was $111 million (aftertax) and was recognized in the fourth quarter of
1995.
All of the businesses sold to MetLife or contributed to MetraHealth were
included in the Company's MCEBO segment in 1994. In 1995 the Company's
results reflect the medical insurance business not yet transferred, plus
its equity interest in the earnings of MetraHealth through the date of
the sale. These operations have been accounted for as a discontinued
operation. Revenues from discontinued operations for the years ended
December 31, 1995, 1994 and 1993 amounted to $1.2 billion, $3.3 billion
and $3.3 billion, respectively. The assets and liabilities of the
discontinued operations have not been segregated in the consolidated
balance sheet as of December 31, 1995 and 1994. The assets and
liabilities of the discontinued operations consist primarily of
investments and insurance-related assets and liabilities. At December
31, 1995, these assets and liabilities each amounted to $1.8 billion. At
December 31, 1994, these assets and liabilities amounted to $3.4 billion
and $3.2 billion, respectively.
In September 1995, Travelers made a pro rata distribution to its
stockholders of shares of Class A Common Stock of Transport Holdings
Inc., which at the time was a wholly owned subsidiary of Travelers and
was the indirect owner of the business of Transport Life Insurance
Company (Transport). Immediately prior to this distribution, the Company
dividended Transport, an indirect, wholly owned subsidiary of the
Company, to its parent, resulting in a reduction in additional paid-in
capital of $334 million. The results of Transport through September 1995
are included in income from continuing operations.
On December 31, 1993, in conjunction with the Merger, Travelers
contributed TIHI to TIGI, which TIGI then contributed to the Company at
a carrying value of $2.1 billion. Through its subsidiaries, TIHI
primarily offers individual life insurance and, until the dividend of
Transport, specialty accident and health insurance.
5. COMMERCIAL PAPER AND LINES OF CREDIT
The Company issues commercial paper directly to investors and had $73
million outstanding at December 31, 1995. The Company maintains unused
credit availability under bank lines of credit at least equal to the
amount of the outstanding commercial paper.
Travelers, Commercial Credit Company (CCC) (an indirect wholly owned
subsidiary of Travelers) and the Company have an agreement with a
syndicate of banks to provide $1.0 billion of revolving credit, to be
allocated to any of Travelers, CCC or the Company. The Company's
participation in this agreement is limited to $250 million. The
revolving credit facility consists of a five-year revolving credit
facility which expires in 1999. At December 31, 1995, $125 million was
allocated to the Company. Under this facility the Company is required to
maintain certain minimum equity and risk-based capital levels. At
December 31, 1995, the Company was in compliance with these provisions.
27
<PAGE> 63
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
6. REINSURANCE
The Company participates in reinsurance in order to limit losses,
minimize exposure to large risks, provide additional capacity for future
growth and to effect business-sharing arrangements. Reinsurance is
accomplished through various plans of reinsurance, primarily
coinsurance, modified coinsurance and yearly renewable term. The Company
remains primarily liable as the direct insurer on all risks reinsured.
It is the policy of the Company to obtain reinsurance for amounts above
certain retention limits on individual life policies which vary with age
and underwriting classification. Generally, the maximum retention on an
ordinary life risk is $1.5 million. The Company writes workers'
compensation business through its Accident Department. This business is
ceded 100% to an affiliate, The Travelers Indemnity Company.
A summary of reinsurance financial data reflected within the
consolidated statement of operations and retained earnings is presented
below (in millions):
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
1995 1994 | 1993
-------------------------------------------------------------------------------|---------
<S> <C> <C> | <C>
Written Premiums: |
Direct $2,166 $2,153 | $ 854
|
Assumed from: |
Non-affiliated companies - - | 13
|
Ceded to: |
Affiliated companies (374) (358) | (480)
Non-affiliated companies (302) (306) | (57)
-------------------------------------------------------------------------------|---------
Total net written premiums $1,490 $1,489 | $ 330
===============================================================================|=========
|
Earned Premiums: |
Direct $2,067 $2,301 | $ 850
|
Assumed from: |
Non-affiliated companies - - | 13
|
|
Ceded to: |
Affiliated companies (283) (384) | (480)
Non-affiliated companies (298) (305) | (58)
-------------------------------------------------------------------------------|---------
Total net earned premiums $1,486 $1,612 | $ 325
=========================================================================================
</TABLE>
28
<PAGE> 64
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
6. REINSURANCE, Continued
Reinsurance recoverables at December 31 include amounts recoverable on
unpaid and paid losses and were as follows (in millions):
<TABLE>
<CAPTION>
----------------------------------------------------------------------------
1995 1994
----------------------------------------------------------------------------
<S> <C> <C>
Reinsurance Recoverables:
Life and accident and health business:
Non-affiliated companies $1,744 $ 661
Affiliated companies - 3
Property-casualty business:
Affiliated companies 2,363 2,251
----------------------------------------------------------------------------
Total Reinsurance Recoverables $4,107 $2,915
============================================================================
</TABLE>
Total reinsurance recoverable at December 31, 1995 includes $929 million
recoverable from MetLife in connection with the sale of the Company's
group life and related businesses. See note 4.
7. SHAREHOLDER'S EQUITY
Additional Paid-In Capital
The decrease of $318 million in additional paid-in capital during 1995 is
due primarily to the dividend of Transport to the Company's parent (see
note 4).
The increase of $273 million in additional paid-in capital during 1994 is
due primarily to the finalization of the evaluations and appraisals used
to assign fair values to assets and liabilities under purchase
accounting.
The increase of $1.7 billion in additional paid-in capital during 1993
arose from a contribution of $400 million from The Travelers Corporation
and the contribution of TIHI (see notes 2 and 4). This was partially
offset by the impact of the initial evaluations and appraisals used to
assign fair values to assets and liabilities under purchase accounting.
Unrealized Investment Gains (Losses)
An analysis of the change in unrealized gains and losses on investments
is shown in note 15.
Shareholder's Equity and Dividend Availability
Statutory net income, including TIHI, was $235 million and $100 million
for the years ended December 31, 1995 and 1994, respectively. Statutory
net loss, excluding TIHI, was $648 million for the year ended December
31, 1993.
Statutory capital and surplus was $3.2 billion and $2.1 billion at
December 31, 1995 and 1994, respectively.
29
<PAGE> 65
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
7. SHAREHOLDER'S EQUITY, Continued
The Company is currently subject to various regulatory restrictions that
limit the maximum amount of dividends available to be paid to its parent
without prior approval of insurance regulatory authorities. Statutory
surplus of $506 million is available in 1996 for dividend payments by the
Company without prior approval of the Connecticut Insurance Department.
Dividend payments to the Company from its insurance subsidiaries are
subject to similar restrictions and are limited to $16 million in 1996.
8. DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS
Derivative Financial Instruments with Off-Balance Sheet Risk
The Company uses derivative financial instruments, including financial
futures, interest rate swaps and forward contracts, as a means of hedging
exposure to foreign currency and/or interest rate risk on anticipated
transactions or existing assets and liabilities. Also, in the normal
course of business, the Company has fixed and variable rate loan
commitments and unfunded commitments to partnerships. The Company does
not hold or issue derivative instruments for trading purposes.
These derivative financial instruments have off-balance-sheet risk.
Financial instruments with off-balance-sheet risk involve, to varying
degrees, elements of credit and market risk in excess of the amount
recognized in the consolidated balance sheet. The contract or notional
amounts of these instruments reflect the extent of involvement the
Company has in a particular class of financial instrument. However, the
maximum loss or cash flow associated with these instruments can be less
than these amounts. For forward contracts and interest rate swaps, credit
risk is limited to the amounts calculated to be due the Company on such
contracts. For unfunded commitments to partnerships, credit exposure is
the amount of the unfunded commitments. For fixed and variable rate loan
commitments, credit exposure is represented by the contractual amount of
these instruments.
The Company monitors creditworthiness of counterparties to these
financial instruments by using criteria of acceptable risk that are
consistent with on-balance-sheet financial instruments. The controls
include credit approvals, limits and other monitoring procedures. Some
transactions include the use of collateral to minimize credit risk and
lower the effective cost to the borrower.
The Company uses exchange traded financial futures contracts to manage
its exposure to changes in interest rates which arises from the sale of
certain insurance and investment products. To hedge against adverse
changes in interest rates, the Company enters short positions in
financial futures contracts which offset asset price changes resulting
from changes in market interest rates until an investment is purchased.
30
<PAGE> 66
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
8. DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS,
Continued
Futures contracts have little credit risk since organized exchanges are
the counterparties. Margin payments are required to enter a futures
contract and contract gains or losses are settled daily in cash. The
contract amount of futures contracts represents the extent of the
Company's involvement, but not future cash requirements, as open
positions are typically closed out prior to the delivery date of the
contract. At December 31, 1995, the Company's futures contracts have no
fair value because these contracts are marked to market and settled in
cash.
The Company may occasionally enter into interest rate swaps in connection
with other financial instruments to provide greater risk diversification
and better match an asset with a corresponding liability. Under interest
rate swaps, the Company agrees with other parties to exchange, at
specified intervals, the difference between fixed-rate and floating rate
interest amounts calculated by reference to an agreed notional principal
amount. Generally, no cash is exchanged at the outset of the contract and
no principal payments are made by either party. A single net payment is
usually made by one counterparty at each due date. Swap agreements are
not exchange traded so they are subject to the risk of default by the
counterparty. In all cases, counterparties under these agreements are
major financial institutions with the risk of non-performance considered
remote.
The off-balance-sheet risks of interest rate swaps, financial futures
contracts, forward contracts, fixed and variable rate loan commitments
and unfunded commitments to partnerships were not significant at December
31, 1995 and 1994.
Derivative Financial Instruments without Off-Balance Sheet Risk
The Company purchased a 5-year interest rate cap, with a notional amount
of $200 million, from Travelers Group Inc. in 1995 to hedge against
losses that could result from increasing interest rates. This instrument,
which does not have off-balance sheet risk, gives the Company the right
to receive payments if interest rates exceed specific levels at specified
dates. The premium of $2 million paid for this instrument is being
amortized over its life. The interest rate cap asset is reported at fair
value which is $1 million at December 31, 1995.
Fair Value of Certain Financial Instruments
The Company uses various financial instruments in the normal course of
its business. Fair values of financial instruments which are considered
insurance contracts are not required to be disclosed and are not included
in the amounts discussed.
At December 31, 1995, investments in fixed maturities had a carrying
value and a fair value of $18.8 billion, compared with a carrying value
and a fair value of $17.3 billion at December 31, 1994. See note 15.
At December 31, 1995, mortgage loans had a carrying value of $3.6
billion, which approximated fair value, compared with a carrying value of
$4.9 billion, which approximated fair value at December 31, 1994. In
estimating fair value, the Company used interest rates reflecting the
higher returns required in the real estate financing market.
31
<PAGE> 67
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
8. DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS,
Continued
The carrying values of $647 million and $417 million of financial
instruments classified as other assets approximated their fair values at
December 31, 1995 and 1994, respectively. The carrying values of $1.3
billion and $1.2 billion of financial instruments classified as other
liabilities also approximated their fair values at December 31, 1995 and
1994, respectively. Fair value is determined using various methods
including discounted cash flows, as appropriate for the various financial
instruments.
At December 31, 1995, contractholder funds with defined maturities had a
carrying value of $2.4 billion and a fair value of $2.5 billion, compared
with a carrying value of $4.2 billion and a fair value of $4.0 billion at
December 31, 1994. The fair value of these contracts is determined by
discounting expected cash flows at an interest rate commensurate with the
Company's credit risk and the expected timing of cash flows.
Contractholder funds without defined maturities had a carrying value of
$9.3 billion and a fair value of $9.0 billion at December 31, 1995,
compared with a carrying value of $9.1 billion and a fair value of $8.8
billion at December 31, 1994. These contracts generally are valued at
surrender value.
The assets of separate accounts providing a guaranteed return had a
carrying value and a fair value of $1.5 billion and $1.6 billion,
respectively, at December 31, 1995, compared with a carrying value and a
fair value of $1.5 billion and $1.4 billion, respectively, at December
31, 1994. The liabilities of separate accounts providing a guaranteed
return had a carrying value and a fair value of $1.5 billion and $1.4
billion, respectively, at December 31, 1995, compared with a carrying
value and a fair value of $1.5 billion and $1.3 billion, respectively, at
December 31, 1994.
The carrying values of cash, short-term securities and investment income
accrued approximated their fair values.
The carrying value of policy loans, which have no defined maturities, was
considered to be fair value.
9. COMMITMENTS AND CONTINGENCIES
Financial Instruments with Off-Balance-Sheet Risk
See note 8 for a discussion of financial instruments with
off-balance-sheet risk.
Litigation
The Company is a defendant or codefendant in various litigation matters.
Although there can be no assurances, as of December 31, 1995, the Company
believes, based on information currently available, that the ultimate
resolution of these legal proceedings would not be likely to have a
material adverse effect on its results of operations, financial condition
or liquidity.
32
<PAGE> 68
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
10. BENEFIT PLANS
Pension Plans
The Company participates in qualified and nonqualified, noncontributory
defined benefit pension plans sponsored by an affiliate covering the
majority of the Company's U.S. employees. Benefits for the qualified plan
are based on an account balance formula. Under this formula, each
employee's accrued benefit can be expressed as an account that is
credited with amounts based upon the employee's pay, length of service
and a specified interest rate, all subject to a minimum benefit level.
This plan is funded in accordance with the Employee Retirement Income
Security Act of 1974 and the Internal Revenue Code. For the nonqualified
plan, contributions are based on benefits paid.
Certain subsidiaries of TIHI participate in a noncontributory defined
benefit plan sponsored by their ultimate parent, Travelers.
The Company's share of net pension expense was not significant for 1995,
1994 and 1993.
Through plans sponsored by TIGI, the Company also provides defined
contribution pension plans for certain agents. Company contributions are
primarily a function of production. The expense for these plans was not
significant in 1995, 1994 and 1993.
Other Benefit Plans
In addition to pension benefits, the Company provides certain health care
and life insurance benefits for retired employees through a plan
sponsored by TIGI. This plan does not include employees of TIHI. Covered
employees may become eligible for these benefits if they reach retirement
age while working for the Company. These retirees may elect certain
prepaid health care benefit plans. Life insurance benefits generally are
set at a fixed amount. The cost recognized by the Company for these
benefits represents its allocated share of the total costs of the plan,
net of employee contributions. The Company's share of the total cost of
the plan for 1995, 1994 and 1993 was not significant.
The Merger resulted in a change in control of The Travelers Corporation
as defined in the applicable plans, and provisions of some employee
benefit plans secured existing compensation and benefit entitlements
earned prior to the change in control, and provided a salary and benefit
continuation floor for employees whose employment was affected. These
merger-related costs were assumed by TIGI.
Savings, Investment and Stock Ownership Plan
Under the savings, investment and stock ownership plan available to
substantially all employees of TIGI (except TIHI), the Company matches a
portion of employee contributions. Effective April 1, 1993, the match
decreased from 100% to 50% of an employee's first 5% contribution and a
variable match based on the profitability of TIGI and its subsidiaries
was added. The Company's matching obligation was not significant in 1995,
1994 and 1993.
33
<PAGE> 69
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
11. RELATED PARTY TRANSACTIONS
The principal banking functions, including payment of salaries and
expenses, for certain subsidiaries and affiliates of TIGI (excluding
TIHI) are handled by the Company. Settlements for these payments between
the Company and its affiliates are made regularly. The Company provides
various employee benefits coverages to employees of certain subsidiaries
of TIGI. The premiums for these coverages were charged in accordance with
cost allocation procedures based upon salaries or census. In addition,
investment advisory and management services, data processing services and
claims processing services are shared with affiliated companies. Charges
for these services are shared by the companies on cost allocation methods
based generally on estimated usage by department.
TIGI and its subsidiaries maintain a short-term investment pool in which
the Company participates. The position of each company participating in
the pool is calculated and adjusted daily. At December 31, 1995 and 1994,
the pool totaled approximately $2.2 billion and $1.5 billion,
respectively. The Company's share of the pool amounted to $1.4 billion
and $1.1 billion at December 31, 1995 and 1994, respectively, and is
included in short-term securities in the consolidated balance sheet.
The Company sells structured settlement annuities to its affiliates, The
Travelers Indemnity Company and its subsidiaries. Such deposits were $38
million, $39 million and $50 million for 1995, 1994 and 1993,
respectively.
The Company markets individual annuity products through The Copeland
Companies, a subsidiary of TIGI. Deposits related to these products were
$684 million, $635 million and $581 million in 1995, 1994 and 1993,
respectively.
The Company markets variable annuity products and life and accident and
health insurance through its affiliate, Smith Barney. Premiums and
deposits related to these products were $580 million and $161 million in
1995 and 1994, respectively.
The Company leases new furniture and equipment from a noninsurance
subsidiary of TIGI. The rental expense charged to the Company for this
furniture and equipment was not significant in 1995, 1994 and 1993.
At December 31, 1995 and 1994, TIC had an investment of $24 million and
$23 million, respectively, in bonds of its affiliate, Commercial Credit
Company. This is included in fixed maturities in the consolidated balance
sheet.
TIHI had an investment of $445 million and $231 million in common stock
of Travelers at December 31, 1995 and 1994, respectively. This is carried
at fair value. At December 31, 1994, Transport had an investment of $35
million in nonredeemable preferred stock of Travelers which was carried
at fair value. TIHI had notes receivable from Travelers of $30 million at
December 31, 1994, which were carried at cost. The notes were paid during
1995. These assets are included in other investments in the consolidated
balance sheet.
34
<PAGE> 70
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
12. LEASES
The Company has entered into various operating and capital lease
agreements for office space and data processing and certain other
equipment. Rental expense under operating leases was $22 million, $23
million and $26 million, in 1995, 1994 and 1993, respectively. Future net
minimum rental and lease payments are estimated as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
Minimum operating Sublease
(in millions) rental payments rental income
--------------------------------------------------------------------------------------
<S> <C> <C>
Year ending December 31,
1996 $103 $26
1997 88 19
1998 77 10
1999 71 6
2000 64 6
Thereafter 310 28
--------------------------------------------------------------------------------------
$713 $95
--------------------------------------------------------------------------------------
</TABLE>
The Company is reimbursed by affiliates of TIGI for utilization of space
and equipment.
35
<PAGE> 71
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
13. FEDERAL INCOME TAXES
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
(in millions) 1995 1994 | 1993
----------------------------------------------------------------------------|---------
<S> <C> <C> | <C>
Effective tax rate |
|
Income before federal income taxes $837 $ 597 | $ (85)
Statutory tax rate 35% 35% | 35%
----------------------------------------------------------------------------|---------
|
Expected federal income taxes $293 $ 209 | $ (30)
Tax effect of: |
Nontaxable investment income (4) (4) | (1)
Adjustments to benefit and other reserves - - | (50)
Adjustment to deferred tax asset for |
enacted change in tax rates from |
34% to 35% - - | (18)
Other, net 1 6 | (7)
----------------------------------------------------------------------------|---------
Federal income taxes (benefit) $290 $ 211 | $(106)
----------------------------------------------------------------------------|---------
|
Effective tax rate 35% 35% | 125%
----------------------------------------------------------------------------|---------
|
Composition of federal income taxes |
Current: |
United States $220 $(108) | $ (61)
Foreign 13 12 | 3
----------------------------------------------------------------------------|---------
Total 233 (96) | (58)
----------------------------------------------------------------------------|---------
|
Deferred: |
United States 52 302 | (48)
Foreign 5 5 | -
----------------------------------------------------------------------------|-----------
Total 57 307 | (48)
----------------------------------------------------------------------------|-----------
Federal income taxes $290 $ 211 | $ (106)
----------------------------------------------------------------------------------------
</TABLE>
Tax benefits allocated directly to shareholder's equity for the years
ended December 31, 1995 and 1994 were $7 million and $2 million,
respectively.
36
<PAGE> 72
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
13. FEDERAL INCOME TAXES, Continued
The net deferred tax liability at December 31, 1995 and the net deferred
tax asset at December 31, 1994 were comprised of the tax effects of
temporary differences related to the following assets and liabilities:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
(in millions) 1995 1994
--------------------------------------------------------------------------------------------
<S> <C> <C>
Deferred tax assets:
Benefit, reinsurance and other reserves $ 447 $ 453
Contractholder funds 54 158
Investments - 690
Other employee benefits 83 87
Other 264 257
--------------------------------------------------------------------------------------------
Total 848 1,645
--------------------------------------------------------------------------------------------
Deferred tax liabilities:
Deferred acquisition costs and value of insurance in force 538 529
Investments 152 -
Prepaid pension expense 9 5
Other 81 61
--------------------------------------------------------------------------------------------
Total 780 595
--------------------------------------------------------------------------------------------
Net deferred tax asset before valuation allowance 68 1,050
Valuation allowance for deferred tax assets (100) (100)
--------------------------------------------------------------------------------------------
Net deferred tax (liability) asset after valuation allowance $ (32) $ 950
--------------------------------------------------------------------------------------------
</TABLE>
Starting in 1994 and continuing for at least five years, the Company and
its life insurance subsidiaries will file a consolidated federal income
tax return. Federal income taxes are allocated to each member of the
consolidated return on a separate return basis adjusted for credits and
other amounts required by the consolidation process. Any resulting
liability will be paid currently to the Company. Any credits for losses
will be paid by the Company to the extent that such credits are for tax
benefits that have been utilized in the consolidated federal income tax
return.
37
<PAGE> 73
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
13. FEDERAL INCOME TAXES, Continued
A net deferred tax asset valuation allowance of $100 million has been
established to reduce the deferred tax asset on investment losses to the
amount that, based upon available evidence, is more likely than not to be
realized. Reversal of the valuation allowance is contingent upon the
recognition of future capital gains in the Company's consolidated life
insurance company federal income tax return through 1998, and the
consolidated federal income tax return of Travelers commencing in 1999,
or a change in circumstances which causes the recognition of the benefits
to become more likely than not. There was no change in the valuation
allowance during 1995. The initial recognition of any benefit produced by
the reversal of the valuation allowance will be recognized by reducing
goodwill.
At December 31, 1995, the Company has no ordinary or capital loss
carryforwards.
The "policyholders surplus account", which arose under prior tax law, is
generally that portion of the gain from operations that has not been
subjected to tax, plus certain deductions. The balance of this account,
which, under provisions of the Tax Reform Act of 1984, will not increase
after 1983, is estimated to be $932 million. This amount has not been
subjected to current income taxes but, under certain conditions that
management considers to be remote, may become subject to income taxes in
future years. At current rates, the maximum amount of such tax (for which
no provision has been made in the financial statements) would be
approximately $326 million.
14. NET INVESTMENT INCOME
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
(For the year ended December 31, in millions) 1995 1994 | 1993
--------------------------------------------------------------------------------|-----------
<S> <C> <C> | <C>
Gross investment income |
Fixed maturities $1,191 $1,082 | $1,069
Mortgage loans 419 511 | 655
Policy loans 163 110 | 104
Real estate held for sale 111 174 | 371
Other 97 52 | 8
--------------------------------------------------------------------------------|-----------
1,981 1,929 | 2,207
--------------------------------------------------------------------------------|-----------
|
Investment expenses 157 227 | 477
--------------------------------------------------------------------------------|-----------
Net investment income $1,824 $1,702 | $1,730
--------------------------------------------------------------------------------------------
</TABLE>
38
<PAGE> 74
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
15. INVESTMENTS AND INVESTMENT GAINS (LOSSES)
Realized investment gains (losses) for the periods were as follows:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
(For the year ended December 31, in millions) 1995 1994 | 1993
-------------------------------------------------------------------------------|----------
<S> <C> <C> | <C>
Realized |
Fixed maturities $(43) $(3) | $ 159
Equity securities 36 18 | 12
Mortgage loans 47 - | (35)
Real estate held for sale 18 - | (212)
Other 48 (2) | 37
-------------------------------------------------------------------------------|----------
Realized investment gains (losses) $106 $13 | $ (39)
------------------------------------------------------------------------------------------
</TABLE>
Changes in net unrealized investment gains (losses) that are included as
a separate component of shareholder's equity were as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
(For the year ended December 31, in millions) 1995 1994 | 1993
---------------------------------------------------------------------------------|----------
<S> <C> <C> | <C>
Unrealized |
Fixed maturities $1,974 $(1,319) | $(235)
Equity securities 46 (25) | (17)
Other 200 165 | 28
---------------------------------------------------------------------------------|----------
2,220 (1,179) | (224)
Related taxes 778 (412) | (83)
---------------------------------------------------------------------------------|----------
Change in unrealized investment gains (losses) 1,442 (767) | (141)
Contribution of TIHI - - | 5
Balance beginning of year (760) 7 | 143
--------------------------------------------------------------------------------------------
Balance end of year $ 682 $ (760) $ 7
--------------------------------------------------------------------------------------------
</TABLE>
The initial adoption of FAS 115 resulted in an increase of approximately
$232 million (net of taxes) to net unrealized gains in 1994.
Fixed Maturities
Proceeds from sales of fixed maturities classified as available for sale
were $6.8 billion and $1.3 billion in 1995 and 1994, respectively. Gross
gains of $80 million and $14 million and gross losses of $124 million and
$26 million in 1995 and 1994, respectively, were realized on those sales.
Prior to December 31, 1993, fixed maturities that were intended to be
held to maturity were recorded at amortized cost and classified as held
for investment. Sales from the amortized cost portfolios have been made
periodically. Such sales were $99 million in 1993, resulting in gross
realized gains of $6 million and gross realized losses of $1 million.
39
<PAGE> 75
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
15. INVESTMENTS AND INVESTMENT GAINS (LOSSES), Continued
Prior to December 31, 1993, the carrying values of the trading portfolio
fixed maturities were adjusted to market value as it was likely they
would be sold prior to maturity. Sales of trading portfolio fixed
maturities were $4.0 billion in 1993. Gross gains of $139 million and
gross losses of $2 million were realized on those sales.
The amortized cost and market value of investments in fixed maturities
were as follows:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
December 31, 1995
-------------------------------------------------------------------------------------------------
Gross Gross
Amortized unrealized unrealized Market
(in millions) cost gains losses value
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Available for sale:
Mortgage-backed securities -
CMOs and pass through
securities $ 4,174 $103 $15 $ 4,262
U.S. Treasury securities
and obligations of U.S.
Government and
government agencies
and authorities 1,327 116 - 1,443
Obligations of states,
municipalities and
political subdivisions 91 2 - 93
Debt securities issued by
foreign governments 311 17 - 328
All other corporate bonds 12,283 442 10 12,715
Redeemable preferred stock 1 - - 1
-------------------------------------------------------------------------------------------------
Total $18,187 $680 $25 $18,842
-------------------------------------------------------------------------------------------------
</TABLE>
40
<PAGE> 76
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
15. INVESTMENTS AND INVESTMENT GAINS (LOSSES), Continued
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
December 31, 1994
-------------------------------------------------------------------------------------------------
Gross Gross
Amortized unrealized unrealized Market
(in millions) cost gains losses value
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Available for sale:
Mortgage-backed securities -
CMOs and pass through
securities $ 3,779 $ 3 $ 304 $ 3,478
U.S. Treasury securities
and obligations of U.S.
Government and
government agencies
and authorities 3,080 3 306 2,777
Obligations of states,
municipalities and
political subdivisions 87 - 7 80
Debt securities issued by
foreign governments 398 - 26 372
All other corporate bonds 11,225 14 696 10,543
Redeemable preferred stock 10 - - 10
-------------------------------------------------------------------------------------------------
Total $18,579 $20 $1,339 $17,260
-------------------------------------------------------------------------------------------------
</TABLE>
The amortized cost and market value of fixed maturities at December 31,
1995, by contractual maturity, are shown below. Actual maturities will
differ from contractual maturities because borrowers may have the right
to call or prepay obligations with or without call or prepayment
penalties.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
Maturity Amortized Market
(in millions) cost value
-----------------------------------------------------------------------------------------------
<S> <C> <C>
Due in one year or less $ 788 $ 792
Due after 1 year through 5 years 5,053 5,156
Due after 5 years through 10 years 5,176 5,416
Due after 10 years 2,996 3,216
-----------------------------------------------------------------------------------------------
14,013 14,580
Mortgage-backed securities 4,174 4,262
-----------------------------------------------------------------------------------------------
Total $18,187 $18,842
-----------------------------------------------------------------------------------------------
</TABLE>
41
<PAGE> 77
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
15. INVESTMENTS AND INVESTMENT GAINS (LOSSES), Continued
The Company makes significant investments in collateralized mortgage
obligations (CMOs). CMOs typically have high credit quality, offer good
liquidity, and provide a significant advantage in yield and total return
compared to U.S. Treasury securities. The Company's investment strategy
is to purchase CMO tranches which are protected against prepayment risk,
primarily planned amortization class (PAC) tranches. Prepayment protected
tranches are preferred because they provide stable cash flows in a
variety of scenarios. The Company does invest in other types of CMO
tranches if a careful assessment indicates a favorable risk/return
tradeoff. The Company does not purchase residual interests in CMOs.
At December 31, 1995 and 1994, the Company held CMOs with a market value
of $2.3 billion and $2.2 billion, respectively. Approximately 89% of the
Company's CMO holdings are fully collateralized by GNMA, FNMA or FHLMC
securities at December 31, 1995 and 1994. In addition, the Company held
$917 million and $1.3 billion of GNMA, FNMA or FHLMC mortgage-backed
securities at December 31, 1995 and 1994, respectively. Virtually all of
these securities are rated AAA. The Company also held $1.3 billion and
$927 million of securities that are backed primarily by credit card or
car loan receivables at December 31, 1995 and 1994, respectively.
Equity Securities
The cost and market values of investments in equity securities were as
follows:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
December 31, 1995
-------------------------------------------------------------------------------------------------
Gross Gross
unrealized unrealized Market
(in millions) Cost gains losses value
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common stocks $138 $48 $5 $181
Nonredeemable preferred stocks 44 2 3 43
-------------------------------------------------------------------------------------------------
Total $182 $50 $8 $224
-------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
December 31, 1994
---------------------------------------------------------------------------------------------------
Gross Gross
unrealized unrealized Market
(in millions) Cost gains losses value
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common stocks $ 133 $ 19 $ 21 $ 131
Nonredeemable preferred stocks 40 - 2 38
---------------------------------------------------------------------------------------------------
Total $ 173 $ 19 $ 23 $ 169
---------------------------------------------------------------------------------------------------
</TABLE>
42
<PAGE> 78
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
15. INVESTMENTS AND INVESTMENT GAINS (LOSSES), Continued
Proceeds from sales of equity securities were $379 million and $357
million in 1995 and 1994, respectively. Gross gains of $27 million and
$24 million and gross losses of $2 million and $6 million in 1995 and
1994, respectively, were realized on those sales.
Mortgage loans and real estate held for sale
Underperforming assets include delinquent mortgage loans, loans in the
process of foreclosure, foreclosed loans and loans modified at interest
rates below market. The Company continues its strategy, adopted in
conjunction with the Merger, to dispose of these real estate assets and
some of the mortgage loans and to reinvest the proceeds to obtain current
market yields.
At December 31, 1995 and 1994, the Company's mortgage loan and real
estate held for sale portfolios consisted of the following (in millions):
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
1995 1994
---------------------------------------------------------------------------------
<S> <C> <C>
Current mortgage loans $ 3,385 $ 4,467
Underperforming mortgage loans 241 471
---------------------------------------------------------------------------------
Total 3,626 4,938
---------------------------------------------------------------------------------
Real estate held for sale 293 383
---------------------------------------------------------------------------------
Total $ 3,919 $ 5,321
---------------------------------------------------------------------------------
</TABLE>
Aggregate annual maturities on mortgage loans at December 31, 1995 are
as follows:
<TABLE>
<CAPTION>
-------------------------------------------------------
(in millions)
-------------------------------------------------------
<S> <C>
Past maturity $ 189
1996 462
1997 398
1998 589
1999 339
2000 382
Thereafter 1,267
-------------------------------------------------------
Total $ 3,626
-------------------------------------------------------
</TABLE>
43
<PAGE> 79
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
15. INVESTMENTS AND INVESTMENT GAINS (LOSSES), Continued
Concentrations
At December 31, 1995 and 1994, the Company had no concentration of credit
risk in a single investee exceeding 10% of consolidated shareholder's
equity.
The Company participates in a short-term investment pool maintained by
TIGI and its subsidiaries. See note 11.
Included in fixed maturities are below investment grade assets totaling
$1.0 billion and $922 million at December 31, 1995 and 1994,
respectively. The Company defines its below investment grade assets as
those securities rated "Ba1" or below by external rating agencies, or the
equivalent by internal analysts when a public rating does not exist. Such
assets include publicly traded below investment grade bonds and certain
other privately issued bonds that are classified as below investment
grade loans.
The Company also had significant concentrations of investments, primarily
fixed maturities, in the following industries:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
(in millions) 1995 1994
---------------------------------------------------------------------------------------------------
<S> <C> <C>
Finance $ 1,491 $ 1,241
Banking 1,226 953
Electric utilities 1,023 1,222
Oil and gas 861 859
---------------------------------------------------------------------------------------------------
</TABLE>
Below investment grade assets included in the totals above, were as
follows:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
(in millions) 1995 1994
---------------------------------------------------------------------------------------------------
<S> <C> <C>
Finance $ 56 $ 75
Banking 8 21
Electric utilities 26 32
Oil and gas 66 33
---------------------------------------------------------------------------------------------------
</TABLE>
At December 31, 1995 and 1994, significant concentrations of mortgage
loans were for properties located in highly populated areas in the states
listed below:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
(in millions) 1995 1994
---------------------------------------------------------------------------------------------------
<S> <C> <C>
California $ 736 $ 929
New York 400 558
---------------------------------------------------------------------------------------------------
</TABLE>
44
<PAGE> 80
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
15. INVESTMENTS AND INVESTMENT GAINS (LOSSES), Continued
Other mortgage loan investments are fairly evenly dispersed throughout
the United States, with no holdings in any state exceeding $332 million
and $432 million at December 31, 1995 and 1994, respectively.
Concentrations of mortgage loans by property type at December 31, 1995
and 1994 were as follows:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
(in millions) 1995 1994
---------------------------------------------------------------------------------------------------
<S> <C> <C>
Office $ 1,513 $ 2,065
Apartment 580 1,029
Agricultural 556 540
Retail 426 606
---------------------------------------------------------------------------------------------------
</TABLE>
The Company monitors creditworthiness of counterparties to all financial
instruments by using controls that include credit approvals, limits and
other monitoring procedures. Collateral for fixed maturities often
includes pledges of assets, including stock and other assets, guarantees
and letters of credit. The Company's underwriting standards with respect
to new mortgage loans generally require loan to value ratios of 75% or
less at the time of mortgage origination.
Investment Valuation Reserves
There were no investment valuation reserves at December 31, 1995 and
1994. Investment valuation reserve activity during 1994 and 1993 was as
follows:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
(in millions) 1994 | 1993
--------------------------------------------------------------------------------------|------------
<S> <C> | <C>
Beginning of year $ 67 | $ 1,417
Increase - | 195
Impairments, net of gains/recoveries - | (602)
FAS 115/Purchase accounting adjustment (67) | (943)
---------------------------------------------------------------------------------------------------
End of year $ - $ 67
---------------------------------------------------------------------------------------------------
</TABLE>
At December 31, 1993, investment valuation reserves were comprised of $67
million for securities. Increases in the investment valuation reserves
were reflected as realized investment losses.
45
<PAGE> 81
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
15. INVESTMENTS AND INVESTMENT GAINS (LOSSES), Continued
Nonincome Producing
Investments included in the consolidated balance sheets that were
nonincome producing for the preceding 12 months were as follows:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
(in millions) 1995 1994
---------------------------------------------------------------------------------------------------
<S> <C> <C>
Mortgage loans $ 65 $ 127
Real estate 18 73
Fixed maturities 4 6
---------------------------------------------------------------------------------------------------
Total $ 87 $ 206
---------------------------------------------------------------------------------------------------
</TABLE>
Restructured Investments
The Company had mortgage loans and debt securities which were
restructured at below market terms totaling approximately $67 million and
$259 million at December 31, 1995 and 1994, respectively. The new terms
typically defer a portion of contract interest payments to varying future
periods. The accrual of interest is suspended on all restructured assets,
and interest income is reported only as payment is received. Gross
interest income on restructured assets that would have been recorded in
accordance with the original terms of such loans amounted to $16 million
in 1995 and $52 million in 1994. Interest on these assets, included in
net investment income, aggregated $8 million and $17 million in 1995 and
1994, respectively.
16. LIFE AND ANNUITY DEPOSIT FUNDS AND RESERVES
At December 31, 1995, the Company had $22.4 billion of life and annuity
deposit funds and reserves. Of that total, $11.4 billion were not subject
to discretionary withdrawal based on contract terms and related market
conditions. The remaining $11.0 billion were for life and annuity
products that were subject to discretionary withdrawal by the
contractholders. Included in the amount that were subject to
discretionary withdrawal were $1.5 billion of liabilities that are
surrenderable with market value adjustments. An additional $5.8 billion
of the life insurance and individual annuity liabilities are subject to
discretionary withdrawals with an average surrender charge of 5.2%.
Another $870 million of liabilities are surrenderable at book value over
5 to 10 years. In the payout phase, these funds are credited at
significantly reduced interest rates. The remaining $2.8 billion of
liabilities are surrenderable without charge. Approximately 25% of these
liabilities relate to individual life products. These risks would have to
be underwritten again if transferred to another carrier, which is
considered a significant deterrent for long-term policyholders. Insurance
liabilities that are surrendered or withdrawn from the Company are
reduced by outstanding policy loans and related accrued interest prior to
payout.
46
<PAGE> 82
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
17. RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES
The following table reconciles net income to net cash provided by (used
in) operating activities:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
(For the year ended December 31, in millions) 1995 1994 | 1993
---------------------------------------------------------------------------------------|-----------
<S> <C> <C> | <C>
Net income from continuing operations $ 547 $ 386 | $ 21
Reconciling adjustments |
Realized (gains) losses (106) (13) | 39
Deferred federal income taxes 57 307 | (48)
Amortization of deferred policy acquisition |
costs and value of insurance in force 290 281 | 56
Additions to deferred policy acquisition costs (454) (435) | 51
Trading account investments, |
(purchases) sales, net - - | (1,585)
Investment income accrued (9) (47) | 3
Premium balances receivable (8) 5 | (5)
Insurance reserves and accrued expenses 291 212 | 166
Restructuring reserves - - | (79)
Other, including investment valuation reserves |
in 1993 62 (212) | 32
---------------------------------------------------------------------------------------|-----------
Net cash provided by (used in) |
operating activities 670 484 | (1,349)
Net cash provided by (used in) |
discontinued operations (596) 233 | (23)
---------------------------------------------------------------------------------------|-----------
Net cash provided by (used in) |
operations $ 74 $ 717 | $ (1,372)
---------------------------------------------------------------------------------------------------
</TABLE>
47
<PAGE> 83
THE TRAVELERS INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
18. NONCASH INVESTING AND FINANCING ACTIVITIES
Significant noncash investing and financing activities include: a) the
1995 transfer of assets with a fair market value of approximately $1.5
billion and statutory reserves and other liabilities of approximately
$1.5 billion to MetLife (see note 4); b) the 1995 dividend of Transport
Life Insurance Company to the Company's parent (see note 4); c) the
acquisition of real estate through foreclosures of mortgage loans
amounting to $97 million, $229 million and $563 million in 1995, 1994 and
1993, respectively; d) the acceptance of purchase money mortgages for
sales of real estate aggregating $27 million, $96 million and $190
million in 1995, 1994 and 1993, respectively; e) the 1994 exchange of $23
million of TIHI's investment in Travelers common stock for $35 million of
Travelers nonredeemable preferred stock; f) the 1993 contribution of TIHI
by Travelers (see note 4); g) the 1993 contribution of $400 million of
bond investments by The Travelers Corporation (see note 7); h) increases
in investment valuation reserves in 1993 for real estate held for sale
(see note 15); and i) the 1993 transfer of $352 million of mortgage loans
and bonds from the Company's general account to two separate accounts.
48
<PAGE> 84
STATEMENT OF ADDITIONAL INFORMATION
FUND QP
Group Variable Annuity Contract
issued by
The Travelers Insurance Company
One Tower Square
Hartford, Connecticut 06183
L-12549S (_______, 1996)
<PAGE> 85
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) The financial statements of the Registrant are not provided since the
Registrant will have no assets as of the effective date of the
Registration Statement.
The consolidated financial statements of The Travelers Insurance
Company and Subsidiaries and the Reports of Independent Accountants,
are contained in the Statement of Additional Information. The
consolidated financial statements of The Travelers Insurance Company
and Subsidiaries include:
Consolidated Statement of Operations and Retained Earnings for the
years ended December 31, 1995, 1994 and 1993
Consolidated Balance Sheet as of December 31, 1995 and 1994
Consolidated Statement of Cash Flows for the years ended December
31, 1995, 1994 and 1993
Notes to Consolidated Financial Statements.
(b) Exhibits
1. Resolution of The Travelers Insurance Company Board of Directors
authorizing the establishment of the Registrant. (Incorporated
herein by reference to Exhibit 1 to the Registration statement
on Form N-4, filed January 11, 1996.)
2. Exempt.
3(a). Form of Distribution and Management Agreement among the
Registrant, The Travelers Insurance Company and Tower Square
Securities, Inc. (Incorporated herein by reference to Exhibit
3(a) to the Registration Statement on Form N-4, filed January
11, 1996.)
3(b). Form of Selling Agreement. (Incorporated herein by reference to
Exhibit 3(b) to the Registration Statement on Form N-4, filed
January 11, 1996.)
4. Variable Annuity Contract(s). (Incorporated herein by reference
to Exhibit 4 to the Registration Statement on Form N-4, filed
August 27, 1996.)
5. None.
6(a). Charter of The Travelers Insurance Company, as amended on
October 19, 1994. (Incorporated herein by reference to Exhibit
3(a)(i) to Registration Statement on Form S-2, File No.
33-58677, filed via Edgar on April 18, 1995.)
<PAGE> 86
6(b). By-Laws of The Travelers Insurance Company, as amended on
October 20, 1994. (Incorporated herein by reference to Exhibit
3(b)(i) to the Registration Statement on Form S-2, File No.
33-58677, filed via Edgar on April 18, 1995.)
7. None.
8. None.
9. Opinion of Counsel as to the legality of securities being
registered. (Incorporated herein by reference to Exhibit 9 to
the Registration Statement on Form N-4, filed January 11, 1996.)
10(a). Consent of Coopers & Lybrand L.L.P., Certified Public
Accountants.
10(b). Consent of KPMG Peat Marwick LLP, Independent Certified Public
Accountants.
11. Not Applicable.
12. None
13. Schedule for computation of each performance quotation.
15. Powers of Attorney authorizing Jay S. Fishman or Ernest J.
Wright as signatory for Robert I. Lipp, Michael A. Carpenter,
Charles O. Prince III, Marc P. Weill, Irwin R. Ettinger, Donald
T. DeCarlo and Christine B. Mead. (Incorporated herein by
reference to Exhibit 15 to the Registration Statement on Form
N-4, filed January 11, 1996.)
15(b). Powers of Attorney authorizing Ernest J. Wright or Kathleen A.
McGah as signatory for Michael A. Carpenter, Jay S. Benet,
George C. Kokulis, Ian R. Stuart, and Katherine M. Sullivan.
(Incorporated herein by reference to Exhibit 15(b) to the
Registration Statement on Form N-4, filed August 27, 1996.)
<PAGE> 87
Item 26. Persons Controlled by or Under Common Control with the Depositor or
Registrant
OWNERSHIP OF THE TRAVELERS INSURANCE COMPANY
<TABLE>
<CAPTION>
Company State of Organization Ownership Principal Business
- ------- ---------------------- --------- ------------------
<S> <C> <C> <C>
Travelers Group Inc. Delaware Publicly Held ----------------
Associated Madison Companies Inc. Delaware 100.00 ----------------
The Travelers Insurance Group, Inc. Connecticut 100.00 ----------------
The Travelers Insurance Company Connecticut 100.00 Insurance
</TABLE>
PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH
THE TRAVELERS INSURANCE COMPANY
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
AC Health Ventures, Inc. Delaware 100.00 Inactive
AMCO Biotech, Inc. Delaware 100.00 Inactive
Associated Madison Companies, Inc. Delaware 100.00 Holding company.
American National Life Insurance (T & C), Ltd. Turks and 100.00 Insurance
Caicos Islands
ERISA Corporation New York 100.00 Inactive
Mid-America Insurance Services, Inc. Georgia 100.00 Third party administrator
National Marketing Corporation Pennsylvania 100.00 Inactive
PFS Services, Inc. Georgia 100.00 General partner
The Travelers Insurance Group Inc. Connecticut 100.00 Holding company
Constitution Plaza, Inc. Connecticut 100.00 Real estate brokerage
KP Properties Corporation Massachusetts 100.00 Real estate
KPI 85, Inc. Massachusetts 100.00 Real estate
</TABLE>
<PAGE> 88
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
KRA Advisers Corporation Massachusetts 100.00 Real estate
KRP Corporation Massachusetts 100.00 Real estate
La Metropole S.A. Belgium 98.83 P-C insurance/reinsurance
Principal Financial Associates, Inc. Delaware 100.00 Inactive
Winthrop Financial Group, Inc. Delaware 100.00 Leasing company.
The Prospect Company Delaware 100.00 Investments
89th & York Avenue Corporation New York 100.00 Real estate
979 Third Avenue Corporation Delaware 100.00 Real estate
Meadow Lane, Inc. Georgia 100.00 Real estate development
Panther Valley, Inc. New Jersey 100.00 Real estate management
Prospect Management Services Company Delaware 100.00 Real estate management
The Travelers Asset Funding Corporation Connecticut 100.00 Investment adviser
Travelers Capital Funding Corporation Connecticut 100.00 Furniture/equipment
The Travelers Corporation of Bermuda Limited Bermuda 99.99 Pensions
The Travelers Insurance Company Connecticut 100.00 Insurance
The Plaza Corporation Connecticut 100.00 Holding company
Joseph A. Wynne Agency California 100.00 Inactive
The Copeland Companies New Jersey 100.00 Holding company
American Odyssey Funds Management, Inc. New Jersey 100.00 Investment advisor
American Odyssey Funds, Inc. Maryland 100.00 Investment management
Copeland Administrative Services, Inc. New Jersey 100.00 Administrative services
Copeland Associates, Inc. Delaware 100.00 Fixed/variable annuities
Copeland Associates Agency of Ohio, Inc. Ohio 99.00 Fixed/variable annuities
Copeland Associates of Alabama, Inc. Alabama 100.00 Fixed/variable annuities
Copeland Associates of Montana, Inc. Montana 100.00 Fixed/variable annuities
Copeland Benefits Management Company New Jersey 51.00 Investment marketing
Copeland Equities, Inc. New Jersey 100.00 Fixed/variable annuities
H.C. Copeland Associates, Inc. of Massachusetts Massachusetts 100.00 Fixed annuities
Copeland Financial Services, Inc. New Jersey 100.00 Investment advisory
services.
Copeland Healthcare Services, Inc. New Jersey 100.00 Life insurance marketing
</TABLE>
2
<PAGE> 89
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
H.C. Copeland and Associates, Inc. of Texas Texas 100.00 Fixed/variable annuities
Tower Square Securities, Inc. Connecticut 100.00 Broker dealer
Travelers/Net Plus Insurance Agency, Inc. Massachusetts 100.00
Travelers/Net Plus, Inc. Connecticut 100.00
The Travelers Life and Annuity Company Connecticut 100.00 Life insurance
Three Parkway Inc. - I Pennsylvania 100.00 Investment real estate
Three Parkway Inc. - II Pennsylvania 100.00 Investment real estate
Three Parkway Inc. - III Pennsylvania 100.00 Investment real estate
Travelers Insurance Holdings Inc. Georgia 100.00 Holding company
AC RE, Ltd. Bermuda 100.00 Reinsurance
American Financial Life Insurance Company Texas 100.00 Insurance
Primerica Life Insurance Company Massachusetts 100.00 Life insurance
National Benefit Life Insurance Company New York 100.00 Insurance
Primerica Financial Services (Canada) Ltd. Canada 100.00 Holding company
PFSL Investments Canada Ltd. Canada 100.00 Mutual fund dealer
Primerica Financial Services Ltd. Canada 82.82 General agent
Primerica Life Insurance Company of Canada Canada 100.00 Life insurance
The Travelers Insurance Corporation Proprietary Limited Australia 100.00 Inactive
Travelers Asset Management International Corporation New York 100.00 Investment adviser
Travelers Canada Corporation Canada 100.00 Inactive
Travelers Mortgage Securities Corporation Delaware 100.00 Collateralized obligations
Travelers of Ireland Limited Ireland 99.90 Data processing
Travelers/Aetna Property Casualty Corp. Delaware 100.00 Holding company
The Aetna Casualty and Surety Company Connecticut 100.00 Insurance company
AE Development Group, Inc. Connecticut 100.00
Aetna Casualty & Surety Company of Canada Canada 100.00
Aetna Casualty and Surety Company of America Connecticut 100.00 Insurance company
Aetna Casualty and Surety Company of Illinois Illinois 100.00 Insurance company
Aetna Commercial Insurance Company Connecticut 100.00 Insurance company
Aetna Financial Futures, Inc. Connecticut 100.00
</TABLE>
3
<PAGE> 90
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
Aetna Lloyds of Texas Insurance Company Texas 100.00 Insurance company
Aetna National Accounts U.K. Limited United Kingdom 100.00 Insurance company
Aetna Opportunity Corporation Connecticut 100.00
Aetna Property Services, Inc. Delaware 100.00
Axia Services, Inc. New York 100.00
Farmington Casualty Company Connecticut 100.00 Insurance company
Farmington Management, Inc. Connecticut 100.00
Urban Diversified Properties, Inc. Connecticut 100.00
The Standard Fire Insurance Company Connecticut 100.00
AE Properties, Inc. California 100.00
Aetna Insurance Company Connecticut 100.00 Insurance company
Aetna Insurance Company of Illinois Illinois 100.00 Insurance company
Aetna Personal Security Insurance Company Connecticut 100.00 Insurance company
Community Rehabilitation Investment Corporation Connecticut 100.00
The Automobile Insurance Company of Hartford, Connecticut Connecticut 100.00 Insurance company
The Travelers Indemnity Company Connecticut 100.00 P-C insurance
Commercial Insurance Resources, Inc. Delaware 100.00 Holding company
Gulf Insurance Company Missouri 100.00 P-C insurance
Atlantic Insurance Company Texas 100.00 P-C insurance
Gulf Risk Services, Inc. Delaware 100.00 Claims/risk management
Gulf Underwriters Insurance Company North Carolina 100.00 P-C ins/surplus lines
Select Insurance Company Texas 100.00 P-C insurance
Countersignature Agency, Inc. Florida 100.00 Countersign ins policies
First Floridian Auto and Home Insurance Company Florida 100.00 Insurance company
First Trenton Indemnity Company New Jersey 100.00 P-C insurance
Laramia Insurance Agency, Inc. North Carolina 100.00 Flood insurance
Lynch, Ryan & Associates, Inc. Massachusetts 100.00 Cost containment
The Charter Oak Fire Insurance Company Connecticut 100.00 P-C insurance
The Parker Realty and Insurance Agency, Inc. Vermont 58.00 Real estate
The Phoenix Insurance Company Connecticut 100.00 P-C insurance
</TABLE>
4
<PAGE> 91
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
Constitution State Service Company Montana 100.00 Service company
The Travelers Indemnity Company of America Georgia 100.00 P-C insurance
The Travelers Indemnity Company of Connecticut Connecticut 100.00 Insurance
The Travelers Indemnity Company of Illinois Illinois 100.00 P-C insurance
The Premier Insurance Company of Massachusetts Massachusetts 100.00 Insurance
The Travelers Home and Marine Insurance Company Indiana 100.00 P-C insurance
The Travelers Indemnity Company of Missouri Missouri 100.00 P-C insurance
The Travelers Lloyds Insurance Company Texas 100.00 Non-life insurance
The Travelers Marine Corporation California 100.00 General insurance
brokerage
TI Home Mortgage Brokerage, Inc. Delaware 100.00 Mortgage brokerage
services
TravCo Insurance Company Indiana 100.00 P-C insurance
Travelers Bond Investments, Inc. Connecticut 100.00 Bond investments
Travelers General Agency of Hawaii, Inc. Hawaii 100.00 Insurance agency
Travelers Medical Management Services Inc. Delaware 100.00 Managed care
Travelers Specialty Property Casualty Connecticut 100.00 Insurance management
Company, Inc.
VIPortfolio Agency, Inc. Delaware 100.00 Insurance agency
Primerica Finance Corporation Delaware 100.00 Holding company
PFS Distributors, Inc. Georgia 100.00 General partner
PFS Investments Inc. Georgia 100.00 Broker dealer
PFS T.A., Inc. Delaware 100.00 Joint venture partner
Primerica Financial Services Home Mortgages, Inc. Georgia 100.00 Mortgage loan broker
Primerica Financial Services, Inc. Nevada 100.00 General agency
Primerica Financial Services Agency of New York, Inc. New York 100.00 General agency
licensing
Primerica Financial Services Insurance Marketing of Connecticut 100.00 General agency
Connecticut, Inc. licensing
Primerica Financial Services Insurance Marketing of Idaho 100.00 General agency
Idaho, Inc. licensing
Primerica Financial Services Insurance Marketing of Nevada 100.00 General agency
Nevada, Inc. licensing
Primerica Financial Services Insurance Marketing of Pennsylvania 100.00 General agency
Pennsylvania, Inc. licensing
Primerica Financial Services Insurance Marketing of the United States 100.00 General agency
Virgin Islands, Inc. Virgin Islands licensing
Primerica Financial Services Insurance Marketing of Wyoming 100.00 General agency
Wyoming, Inc. licensing
Primerica Financial Services Insurance Marketing, Inc. Delaware 100.00 General agency
licensing
</TABLE>
5
<PAGE> 92
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
Primerica Financial Services of Alabama, Inc. Alabama 100.00 General agency
licensing
Primerica Financial Services of New Mexico, Inc. New Mexico 100.00 General agency
licensing
Primerica Insurance Agency of Massachusetts, Inc. Massachusetts 100.00 General agency
licensing
Primerica Insurance Marketing Services of Puerto Rico, Inc. Puerto Rico 100.00 Insurance agency
Primerica Insurance Services of Louisiana, Inc. Louisiana 100.00 General agency
licensing
Primerica Insurance Services of Maryland, Inc. Maryland 100.00 General agency
licensing
Primerica Services, Inc. Georgia 100.00 Print operations
RCM Acquisition Inc. Delaware 100.00 Investments
SCN Acquisitions Company Delaware 100.00 Investments
SL&H Reinsurance, Ltd. Nevis 100.00 Reinsurance
Southwest Service Agreements, Inc. North Carolina 100.00 Warranty/service
agreements
Southwest Warranty Corporation Florida 100.00 Extended automobile
warranty
CCC Holdings, Inc. Delaware 100.00 Holding company
Commercial Credit Company Delaware 100.00 Holding company.
American Health and Life Insurance Company Maryland 100.00 LH&A Insurance
Brookstone Insurance Company Vermont 100.00 Insurance managers
CC Finance Company, Inc. New York 100.00 Consumer lending
CC Financial Services, Inc. Hawaii 100.00 Financial services
CCC Fairways, Inc. Delaware 100.00 Investment company
Chesapeake Appraisal and Settlement Services Inc. Maryland 100.00
City Loan Financial Services, Inc. Ohio 100.00 Consumer finance
Commercial Credit Banking Corporation Oregon 100.00 Consumer finance
Commercial Credit Consumer Services, Inc. Minnesota 100.00 Consumer finance
Commercial Credit Corporation (AL) Alabama 100.00 Consumer finance
Commercial Credit Corporation (CA) California 100.00 Consumer finance
Commercial Credit Corporation (HI) Hawaii 100.00
Commercial Credit Corporation (IA) Iowa 100.00 Consumer finance
Commercial Credit of Alabama, Inc. Delaware 100.00 Consumer lending
Commercial Credit of Mississippi, Inc. Delaware 100.00
Commercial Credit Corporation (KY) Kentucky 100.00 Consumer finance
</TABLE>
6
<PAGE> 93
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
Certified Insurance Agency, Inc. Kentucky 100.00 Insurance agency
Commercial Credit Investment, Inc. Kentucky 100.00 Investment company
National Life Insurance Agency of Kentucky, Inc. Kentucky 100.00 Insurance agency
Union Casualty Insurance Agency, Inc. Kentucky 100.00 Insurance agency
Commercial Credit Corporation (MD) Maryland 100.00 Consumer finance
Action Data Services, Inc. Missouri 100.00 Data processing
Commercial Credit Plan, Incorporated (OK) Oklahoma 100.00 Consumer finance
Commercial Credit Corporation (NY) New York 100.00 Consumer finance
Commercial Credit Corporation (SC) South Carolina 100.00 Consumer finance
Commercial Credit Corporation (WV) West Virginia 100.00 Consumer finance
Commercial Credit Corporation NC North Carolina 100.00 Consumer finance
Commercial Credit Europe, Inc. Delaware 100.00 Inactive
Commercial Credit Far East Inc. Delaware 100.00 Inactive
Commercial Credit Insurance Services, Inc. Maryland 100.00 Insurance broker
Commercial Credit Insurance Agency (P&C) of Mississippi, Inc. Mississippi 100.00 Insurance agency
Commercial Credit Insurance Agency of Alabama, Inc. Alabama 100.00 Insurance agency
Commercial Credit Insurance Agency of Kentucky, Inc. Kentucky 100.00 Insurance agency
Commercial Credit Insurance Agency of Massachusetts, Inc. Massachusetts 100.00 Insurance agency
Commercial Credit Insurance Agency of Nevada, Inc. Nevada 100.00 Credit LH&A, P-C insurance
Commercial Credit Insurance Agency of New Mexico, Inc. New Mexico 100.00 Insurance agency/Broker
Commercial Credit Insurance Agency of Ohio, Inc. Ohio 100.00 Insurance agency/broker
Commercial Credit International, Inc. Delaware 100.00 Holding company
Commercial Credit International Banking Corporation Oregon 100.00 International lending
Commercial Credit Corporation CCC Limited Canada 100.00 Second mortgage loans
Commercial Credit Services do Brazil Ltda. Brazil 99.00 Inactive
Commercial Credit Services Belgium S.A. Belgium 100.00 Inactive
Commercial Credit Limited Delaware 100.00 Inactive
Commercial Credit Loan, Inc. (NY) New York 100.00 Consumer finance
Commercial Credit Loans, Inc. (DE) Delaware 100.00 Consumer finance
Commercial Credit Loans, Inc. (OH) Ohio 100.00 Consumer finance
</TABLE>
7
<PAGE> 94
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
Commercial Credit Loans, Inc. (VA) Virginia 100.00 Consumer finance
Commercial Credit Management Corporation Maryland 100.00 Intercompany services
Commercial Credit Plan Incorporated (TN) Tennessee 100.00 Consumer finance
Commercial Credit Plan Incorporated (UT) Utah 100.00 Consumer finance
Commercial Credit Plan Incorporated of Georgetown Delaware 100.00 Consumer finance
Commercial Credit Plan Industrial Loan Company Virginia 100.00 Consumer finance
Commercial Credit Plan, Incorporated (CO) Colorado 100.00 Consumer finance
Commercial Credit Plan, Incorporated (DE) Delaware 100.00 Consumer finance
Commercial Credit Plan, Incorporated (GA) Georgia 100.00 Consumer finance
Commercial Credit Plan, Incorporated (MO) Missouri 100.00 Consumer finance
Commercial Credit Securities, Inc. Delaware 100.00 Broker dealer
DeAlessandro & Associates, Inc. Delaware 100.00 Insurance consulting
Park Tower Holdings, Inc. Delaware 100.00 Holding company
CC Retail Services, Inc. Delaware 100.00 Leasing, financing
Troy Textiles, Inc. Delaware 100.00 Factoring. Company is inactive.
COMCRES, Inc. Delaware 100.00 Inactive
Commercial Credit Development Corporation Delaware 100.00 Direct loan
Myers Park Properties, Inc. Delaware 100.00 Inactive
Penn Re, Inc. North Carolina 100.00 Management company
Plympton Concrete Products, Inc. Delaware 100.00 Inactive
Resource Deployment, Inc. Texas 100.00 Management company
The Travelers Bank Delaware 100.00 Banking services
The Travelers Bank USA Delaware 100.00 Credit card bank
Travelers Home Equity, Inc. North Carolina 100.00 Financial services
CC Consumer Services of Alabama, Inc. Alabama 100.00 Financial services
CC Home Lenders Financial, Inc. Georgia 100.00 Financial services
CC Home Lenders, Inc. Ohio 100.00 Financial services
Commercial Credit Corporation (TX) Texas 100.00 Consumer finance
Commercial Credit Financial of Kentucky, Inc. Kentucky 100.00 Consumer finance
Commercial Credit Financial of West Virginia, Inc. West Virginia 100.00 Consumer finance
</TABLE>
8
<PAGE> 95
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
Commercial Credit Plan Consumer Discount Company Pennsylvania 100.00 Financial services
Commercial Credit Services of Kentucky, Inc. Kentucky 100.00 Financial services.
Travelers Home Equity Services, Inc. North Carolina 100.00 Financial services
Triton Insurance Company Missouri 100.00 P-C insurance
Verochris Corporation Delaware 100.00 Joint venture company
AMC Aircraft Corp. Delaware 100.00 Aviation
World Service Life Insurance Company Colorado 100.00 Life insurance
Diversified Distributors Services, Inc. Delaware 100.00 Alternative marketing
Greenwich Street Capital Partners, Inc. Delaware 100.00 Investments
Greenwich Street Investments, Inc. Delaware 100.00 Investments
Greenwich Street Capital Partners Offshore Holdings, Inc. Delaware 100.00 Investments
Margco Holdings, Inc. Delaware 100.00 Holding company
Berg Associates New Jersey 100.00 Inactive
Berg Enterprises Realty, Inc. (NY) New York 100.00 Inactive
Dublin Escrow, Inc. California 100.00 Inactive
M.K.L. Realty Corporation New Jersey 66.67 Holding company
MRC Holdings, Inc. Delaware 100.00 Real estate
The Berg Agency, Inc. (NJ) New Jersey 100.00 Inactive
Mirasure Insurance Company, Ltd. Bermuda 100.00 Inactive
Pacific Basin Investments Ltd. Delaware 100.00 Inactive
Primerica Corporation (WY) Wyoming 100.00 Inactive
Primerica, Inc. Delaware 100.00 Name saver
Smith Barney Corporate Trust Company Delaware 100.00 Trust company
Smith Barney Holdings Inc. Delaware 100.00 Holding company
Mutual Management Corp. New York 100.00 Inactive
R-H Capital, Inc. Delaware 100.00 Investments
R-H Sports Enterprises Inc Georgia 100.00 Sports representation
SB Cayman Holdings I Inc. Delaware 100.00 Holding company
Greenwich (Cayman) I Limited Cayman Islands 100.00 Corporate services
Greenwich (Cayman) II Limited Cayman Islands 100.00 Corporate services
</TABLE>
9
<PAGE> 96
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
Greenwich (Cayman) III Limited Cayman Islands 100.00 Corporate services
SB Cayman Holdings II Inc. Delaware 100.00 Holding company
SB Cayman Holdings III Inc. Delaware 100.00 Holding company
SB Cayman Holdings IV Inc. Delaware 100.00 Holding company
Smith Barney (Delaware) Inc. Delaware 100.00 Holding company
1345 Media Corp. Delaware 100.00 Holding company
Americas Avenue Corporation Delaware 100.00 Inactive
Corporate Realty Advisors, Inc. Delaware 100.00 Realty trust adviser
IPO Holdings Inc. Delaware 100.00 Holding company
Institutional Property Owners, Inc. V Delaware 100.00 Investments
Institutional Property Owners, Inc. VI Delaware 100.00 General partner
MLA 50 Corporation Delaware 100.00 Limited partner
MLA GP Corporation Delaware 100.00 General partner
Smith Barney Acquisition Corporation Delaware 100.00 Offshore fund adviser
Smith Barney Global Capital Management, Inc. Delaware 100.00 Investment management
Smith Barney Investment, Inc. Delaware 100.00 Inactive
Smith Barney Realty, Inc. Delaware 100.00 Investments
Smith Barney Risk Investors, Inc. Delaware 100.00 Investments
Smith Barney Venture Corp. Delaware 100.00 Investments
Smith Barney (Ireland) Limited Ireland 100.00 Fund management
Smith Barney Asia Inc. Delaware 100.00 Investment banking
Smith Barney Asset Management Group (Asia) Pte. Ltd. Singapore 100.00 Asset management
Smith Barney Canada Inc. Canada 100.00 Investment dealer
Smith Barney Capital Services Inc. Delaware 100.00 Derivative product
transactions
Smith Barney Cayman Islands, Ltd. Cayman Islands 100.00 Securities trading
Smith Barney Commercial Corp. Delaware 100.00 Commercial credit
Smith Barney Commercial Corporation Asia Limited Hong Kong 99.00 Commodities trading
Smith Barney Europe Holdings, Ltd. United Kingdom 100.00 Holding corp.
Smith Barney Europe, Ltd. United Kingdom 100.00 Securities brokerage
Smith Barney Shearson Futures, Ltd. United Kingdom 100.00 Inactive
</TABLE>
10
<PAGE> 97
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
Smith Barney Futures Management Inc. Delaware 100.00 Commodities pool
operator
Smith Barney Offshore Fund Ltd. Delaware 100.00 Commodity pool
Smith Barney Overview Fund PLC Dublin 100.00 Commodity fund
Smith Barney Inc. Delaware 100.00 Broker dealer
Institutional Property Owners, Inc. VII Delaware 100.00 Never activated
SBHU Life Agency, Inc. Delaware 100.00 Insurance brokerage
Robinson-Humphrey Insurance Services Inc. Georgia 100.00 Insurance brokerage
Robinson-Humphrey Insurance Services of Alabama, Inc. Alabama 100.00 Insurance brokerage
SBHU Life & Health Agency, Inc. Delaware 100.00 Insurance brokerage
SBHU Life Agency of Arizona, Inc. Arizona 100.00 Insurance brokerage
SBHU Life Agency of Indiana, Inc. Indiana 100.00 Insurance brokerage
SBHU Life Agency of Utah, Inc. Utah 100.00 Insurance brokerage
SBHU Life Insurance Agency of Massachusetts, Inc. Massachusetts 100.00 Insurance brokerage
SBS Insurance Agency of Hawaii, Inc. Hawaii 100.00 Insurance brokerage
SBS Insurance Agency of Idaho, Inc. Idaho 100.00 Insurance brokerage
SBS Insurance Agency of Maine, Inc. Maine 100.00 Insurance brokerage
SBS Insurance Agency of Montana, Inc. Montana 100.00 Insurance brokerage
SBS Insurance Agency of Nevada, Inc. Nevada 100.00 Insurance brokerage
SBS Insurance Agency of North Carolina, Inc. North Carolina 100.00 Insurance brokerage
SBS Insurance Agency of Ohio, Inc. Ohio 100.00 Insurance brokerage
SBS Insurance Agency of South Dakota, Inc. South Dakota 100.00 Insurance brokerage
SBS Insurance Agency of Wyoming, Inc. Wyoming 100.00 Insurance brokerage
SBS Insurance Brokerage Agency of Arkansas, Inc. Arkansas 100.00 Insurance brokerage
SBS Insurance Brokers of Kentucky, Inc. Kentucky 100.00 Insurance brokerage
SBS Insurance Brokers of Louisiana, Inc. Louisiana 100.00 Insurance brokerage
SBS Insurance Brokers of New Hampshire, Inc. New Hampshire 100.00 Insurance brokerage
SBS Insurance Brokers of North Dakota, Inc. North Dakota 100.00 Insurance brokerage
SBS Life Insurance Agency of Puerto Rico, Inc. Puerto Rico 100.00 Insurance brokerage
SLB Insurance Agency of Maryland, Inc. Maryland 100.00 Insurance brokerage
Smith Barney Life Agency Inc. Louisiana 100.00 Insurance brokerage
</TABLE>
11
<PAGE> 98
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
Smith Barney (France) S.A. France 100.00 Commodities trading
Smith Barney (Hong Kong) Limited Hong Kong 100.00 Broker dealer
Smith Barney (Netherlands) Inc. Delaware 100.00 Broker dealer
Smith Barney International Incorporated Oregon 100.00 Broker dealer
Smith Barney (Singapore) Pte Ltd Singapore 100.00 Commodities
Smith Barney Pacific Holdings, Inc. British 100.00 Holding company
Virgin Islands
Smith Barney (Asia) Limited Hong Kong 100.00 Broker dealer
Smith Barney (Pacific) Limited Hong Kong 100.00 Commodities dealer
Smith Barney Securities Pte Ltd Singapore 100.00 Securities brokerage
Smith Barney Research Pte. Ltd. Singapore 100.00 Inactive
The Robinson-Humphrey Company, Inc. Delaware 100.00 Broker dealer
Smith Barney Mortgage Brokers Inc. Delaware 100.00 Mortgage brokerage
Smith Barney Mortgage Capital Corp. Delaware 100.00 Mortgage-backed securities
Smith Barney Mortgage Capital Group, Inc. Delaware 100.00 Mortgage trading
Smith Barney Mutual Funds Management Inc. Delaware 100.00 Investment management
Smith Barney Strategy Advisers Inc. Delaware 100.00 Investment management
E.C. Tactical Management S.A. Luxembourg 100.00 Investment management
Smith Barney Offshore, Inc. Delaware 100.00 Decathlon Fund advisor
Decathlon Offshore Limited Cayman Islands 100.00 Commodity fund
Smith Barney S.A. France 100.00 Commodities trading
Smith Barney Asset Management France S.A. France 100.00 Com. based asset management
Smith Barney Securities Investment Consulting Co. Ltd. Taiwan 99.00 Investrment analysis
Smith Barney Shearson (Chile) Corredora de Seguro Limitada Chile 100.00 Insurance brokerage
Structured Mortgage Securities Corporation Delaware 100.00 Mortgage-backed securities
The Travelers Investment Management Company Connecticut 100.00 Investment advisor
Smith Barney Private Trust Company New York 100.00 Trust company.
Smith Barney Private Trust Company of Florida Florida 100.00 Trust company
Tinmet Corporation Delaware 100.00 Inactive
Travelers Services Inc. Delaware 100.00 Holding company
Tribeca Management Inc. Delaware 100.00
</TABLE>
12
<PAGE> 99
<TABLE>
<CAPTION>
% of Voting
Securities
Owned Directly
State of or Indirectly by
Organization The Travelers Inc. Principal Business
<S> <C> <C> <C>
TRV Employees Investments, Inc. Delaware 100.00 Investments
TRV/RCM Corp. Delaware 100.00 Inactive
TRV/RCM LP Corp. Delaware 100.00 Inactive
</TABLE>
13
<PAGE> 100
THE TRAVELERS SEPARATE ACCOUNT QP FOR VARIABLE ANNUITIES
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS:
That I, KATHERINE M. SULLIVAN of Longmeadow, Massachusetts, Director,
Senior Vice President and General Counsel of The Travelers Insurance Company
(hereafter the "Company"), do hereby make, constitute and appoint ERNEST J.
WRIGHT, Secretary of said Company, and KATHLEEN A. McGAH, Assistant Secretary
of said Company, or either one of them acting alone, my true and lawful
attorney-in-fact, for me, and in my name, place and stead, to sign registration
statements on behalf of said Company on Form N-4 or other appropriate form
under the Securities Act of 1933 for The Travelers Separate Account QP II for
Variable Annuities, a separate account of the Company dedicated specifically to
the funding of variable annuity contracts to be offered by the Company, and
further, to sign any and all amendments thereto, including post-effective
amendments, that may be filed by the Company on behalf of said registrant.
IN WITNESS WHEREOF, I have hereunto set my hand this 10th day of June,
1996.
/s/Katherine M. Sullivan
Director, Senior Vice President
and General Counsel
The Travelers Insurance Company
<PAGE> 101
Item 25. Directors and Officers of the Depositor
<TABLE>
<CAPTION>
Name and Principal Positions and Offices
Business Address with Depositor
- ---------------- --------------
<S> <C>
Michael A. Carpenter* Director and Chairman of the Board, President and Chief Executive Officer
Jay S. Benet* Director and Senior Vice President
George C. Kokulis* Director and Senior Vice President
Robert I. Lipp* Director
Katherine M. Sullivan* Director, Senior Vice President and General Counsel
Marc P. Weill** Director, Senior Vice President and Chief Investment Officer
Ian R. Stuart* Director, Vice President, Chief Financial Officer, Chief
Accounting Officer and Controller
Stuart Baritz** Senior Vice President
Barry Jacobson* Senior Vice President
Russell H. Johnson* Senior Vice President
Warren H. May* Senior Vice President
David A. Tyson* Senior Vice President
F. Denney Voss** Senior Vice President
Kathleen A. D'Auria* Vice President
Robert C. Hamilton* Vice President
Charles N. Vest* Vice President and Actuary
William H. White* Vice President and Treasurer
Ernest J. Wright* Vice President and Secretary
Elizabeth Charron* Second Vice President
Charles O. Prince** Assistant Counsel
Kathleen A. McGah* Assistant Secretary
William D. Wilcox* Assistant Secretary
</TABLE>
Principal Business Address:
* The Travelers Insurance Company **Travelers Group Inc.
One Tower Square 388 Greenwich Street
Hartford, CT 06183 New York, N.Y. 10013
<PAGE> 102
Item 27. Number of Contract Owners
Not Applicable.
Item 28. Indemnification
Section 33-320a of the Connecticut General Statutes ("C.G.S.") regarding
indemnification of directors and officers of Connecticut corporations provides
in general that Connecticut corporations shall indemnify their officers,
directors and certain other defined individuals against judgments, fines,
penalties, amounts paid in settlement and reasonable expenses actually incurred
in connection with proceedings against the corporation. The corporation's
obligation to provide such indemnification generally does not apply unless (1)
the individual is successful on the merits in the defense of any such
proceeding; or (2) a determination is made (by persons specified in the
statute) that the individual acted in good faith and in the best interests of
the corporation; or (3) the court, upon application by the individual,
determines in view of all of the circumstances that such person is fairly and
reasonably entitled to be indemnified, and then for such amount as the court
shall determine. With respect to proceedings brought by or in the right of the
corporation, the statute provides that the corporation shall indemnify its
officers, directors and certain other defined individuals, against reasonable
expenses actually incurred by them in connection with such proceedings, subject
to certain limitations.
C.G.S. Section 33-320a provides an exclusive remedy; a Connecticut corporation
cannot indemnify a director or officer to an extent either greater or less than
that authorized by the statute, e.g., pursuant to its certificate of
incorporation, by-laws, or any separate contractual arrangement. However, the
statute does specifically authorize a corporation to procure indemnification
insurance to provide greater indemnification rights. The premiums for such
insurance may be shared with the insured individuals on an agreed basis.
Travelers Group Inc. also provides liability insurance for its directors and
officers and the directors and officers of its subsidiaries, including the
Depositor. This insurance provides for coverage against loss from claims made
against directors and officers in their capacity as such, including, subject to
certain exceptions, liabilities under the Federal securities laws.
Rule 484 Undertaking
Insofar as indemnification for liability arising under 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 liability (other than the payment by the registrant of expenses
incurred or paid 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 its 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.
<PAGE> 103
Item 29. Principal Underwriter
(a) In addition to The Travelers Separate Account QP for Variable
Annuities, Tower Square Securities, Inc. also serves as the principal
underwriter for:
The Travelers Growth and Income Stock Account for Variable Annuities
The Travelers Quality Bond Account for Variable Annuities
The Travelers Money Market Account for Variable Annuities
The Travelers Timed Growth and Income Stock Account for Variable
Annuities
The Travelers Timed Short-Term Bond Account for Variable Annuities
The Travelers Timed Aggressive Stock Account for Variable Annuities
The Travelers Timed Bond Account for Variable Annuities
The Travelers Fund U for Variable Annuities
The Travelers Fund VA for Variable Annuities
The Travelers Fund UL for Variable Life Insurance
The Travelers Fund UL II for Variable Life Insurance
The Travelers Fund BD for Variable Annuities
The Travelers Fund BD II for Variable Annuities
The Travelers Variable Life Insurance Separate Account One
The Travelers Variable Life Insurance Separate Account Three
The Travelers Fund ABD for Variable Annuities
The Travelers Fund ABD II for Variable Annuities
The Travelers Separate Account QP II for Variable Annuities
<TABLE>
<CAPTION>
(b) Name and Principal Positions and Offices Positions and Offices
Business Address * With Underwriter With Registrant
------------------ --------------------- ---------------------
<S> <C> <C>
Russell H. Johnson Chairman and Chief Executive -----
Officer
Donald R. Munson, Jr. Director, President and Chief -----
Operating Officer
William F. Scully, III Member, Board of Directors, -----
Senior Vice President, Treasurer
and Chief Financial Officer
Cynthia P. Macdonald Vice President, Chief Compliance -----
Officer, Assistant Secretary
Jay S. Benet Member, Board of Directors -----
George C. Kokulis Member, Board of Directors -----
Warren H. May Member, Board of Directors -----
Kathleen A. McGah General Counsel and Secretary Assistant Secretary
Stuart L. Baritz Vice President -----
Robert C. Hamilton Vice President -----
Tracey Kiff-Judson Second Vice President -----
Robin A. Jones Second Vice President -----
Whitney F. Burr Second Vice President -----
Marlene M. Ibsen Second Vice President -----
John J. Williams, Jr. Director and Assistant Compliance -----
Officer
</TABLE>
<PAGE> 104
(cont'd)
<TABLE>
<CAPTION>
(b) Name and Principal Positions and Offices Positions and Offices
Business Address * With Underwriter With Registrant
------------------ ---------------------------------------------------------
<S> <C> <C>
Susan M. Curcio Director and Operations Manager -----
Thomas P. Tooley Director -----
Dennis D. D'Angelo Director -----
Nancy S. Waldrop Assistant Treasurer -----
</TABLE>
* Principal business address: One Tower Square, Hartford,
Connecticut 06183
(c) Not Applicable.
Item 30. Location of Accounts and Records
The Travelers Insurance Company
One Tower Square
Hartford, Connecticut 06183
Item 31. Management Services
Not applicable.
Item 32. Undertakings
The undersigned Registrant hereby undertakes:
(a) To file a post-effective amendment to this registration statement as
frequently as is necessary to ensure that the audited financial
statements in the registration statement are never more than sixteen
months old for so long as payments under the variable annuity
contracts may be accepted;
(b) To include either (1) 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 (2) 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; and
(c) 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.
<PAGE> 105
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant has caused this Post-Effective Amendment No. 1 to the
Registration Statement to be signed on its behalf, in the City of Hartford, and
State of Connecticut, on this __th day of October, 1996.
THE TRAVELERS SEPARATE ACCOUNT QP FOR VARIABLE ANNUITIES
(Registrant)
THE TRAVELERS INSURANCE COMPANY
(Depositor)
By: *IAN R. STUART
----------------------------
Ian R. Stuart
Director, Vice President, Chief Financial Officer
Chief Accounting Officer and Controller
As required by the Securities Act of 1933, this amendment to this Registration
Statement has been signed below by the following persons in the capacities on
this __th day of October, 1996.
<TABLE>
<S> <C>
*MICHAEL A. CARPENTER Chairman of the Board, President and Chief
- ------------------------- Executive Officer
(Michael A. Carpenter)
*JAY S. BENET Director
- -------------------------
(Jay S. Benet)
*GEORGE C. KOKULIS Director
- -------------------------
(George C. Kokulis)
*ROBERT I. LIPP Director
- -------------------------
(Robert I. Lipp)
*KATHERINE M. SULLIVAN Director, Senior Vice President and General
- ------------------------- Counsel
(Katherine M. Sullivan)
*IAN R. STUART Director, Vice President, Chief Financial Officer
- ------------------------- Chief Accounting Officer and Controller
(Ian R. Stuart)
*MARC P. WEILL Director
- -------------------------
(Marc P. Weill)
*By: /s/Ernest J. Wright
--------------------------------------------
Ernest J. Wright, Attorney-in-Fact
</TABLE>
<PAGE> 106
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No. Description Method of Filing
- --- ----------- ----------------
<S> <C> <C>
1. Resolution of The Travelers Insurance Company
Board of Directors authorizing the establishment
of the Registrant. (Incorporated herein by reference
to Exhibit 1 to the Registration Statement on
Form N-4, filed January 11, 1996.)
3(a). Form of Distribution and Management Agreement
among the Registrant, The Travelers Insurance
Company and Tower Square Securities, Inc.
(Incorporated herein by reference to Exhibit 3(a)
to the Registration Statement on Form N-4,
filed January 11, 1996.)
3(b). Form of Selling Agreement. (Incorporated herein
by reference to Exhibit 3(b) to the Registration Statement
on Form N-4, filed January 11, 1996.)
4. Variable Annuity Contract(s). (Incorporated herein by reference
to Exhibit 4 on Form N-4, filed August 27, 1996.)
6(a). Charter of The Travelers Insurance Company, as
amended on October 19, 1994. (Incorporated herein
by reference to Exhibit 3(a)(i) to the Registration
Statement on Form S-2, File No. 33-58677, filed via
Edgar on April 18, 1995.)
6(b). By-Laws of The Travelers Insurance Company, as
amended on October 20, 1994. (Incorporated herein
by reference to Exhibit 3(b)(i) to the Registration
Statement on Form S-2, File No. 33-58677, filed via
Edgar on April 18, 1995.)
9. Opinion of Counsel as to the legality of securities being
registered by Registrant. (Incorporated herein by
reference to Exhibit 9 to the Registration Statement
on Form N-4, filed January 11, 1996.)
10(a). Consent of Coopers & Lybrand L.L.P., Certified Public Electronically
Accountants.
10(b). Consent of KPMG Peat Marwick LLP, Independent Electronically
Certified Public Accountants.
</TABLE>
<PAGE> 107
<TABLE>
<S> <C> <C>
13. Schedule of Computation of Total Return Calculations. Electronically
15. Powers of Attorney authorizing Jay S. Fishman or
Ernest J. Wright as signatory for Robert I. Lipp,
Michael A Carpenter, Charles O. Prince III,
Marc P. Weill, Irwin R. Ettinger, Donald T. DeCarlo
and Christine B. Mead. (Incorporated herein by
reference to Exhibit 15 to the Registration Statement
on Form N-4, filed January 11, 1996.)
15(b). Powers of Attorney authorizing Ernest J. Wright
or Kathleen A. McGah as signatory for Michael A.
Carpenter, Jay S. Benet, George C. Kokulis, Ian R.
Stuart and Katherine M. Sullivan. (Incorporated herein
by reference to Exhibit 15(b) to the Registration
Statement on Form N-4, filed August 27, 1996.)
</TABLE>
<PAGE> 1
Exhibit 10(A)
LETTERHEAD OF COOPERS & LYBRAND L.L.P.
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the inclusion in this Post-Effective Amendment No. 1 of the
Registration Statement No. 333-00165/811-07487 on form N-4 of The Travelers
Separate Account QP for Variable Annuities of our report dated January 24,
1994, on our audit of the consolidated statements of operations and retained
earnings and cash flows of The Travelers Insurance Company and Subsidiaries for
the year ended December 31, 1993. We also consent to the reference to our Firm
as experts in accounting and auditing under the caption "Independent
Accountants" in the Statement of Additional Information.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P
Hartford Connecticut
October 15, 1996
<PAGE> 1
EXH-10(b)
Consent of Independent Certified Public Accountants
The Board of Directors
The Travelers Insurance Company:
We consent to the use of our reports included herein and to the
reference to our firm under the heading "Independent Accountants" in the
Prospectus.
Our reports refer to a change in accounting for investments in accordance with
the provisions of Statement of Financial Accounting Standards No. 115,
"Accounting for Certain Investments in Debt and Equity Securities," in 1994.
/s/ KPMG Peat Marwick LLP
Hartford, Connecticut
October 15, 1996
<PAGE> 1
EXHIBIT 13
THE TRAVELERS SEPARATE ACCOUNT QP FOR VARIABLE ANNUITIES
SCHEDULE FOR COMPUTATION OF TOTAL RETURN CALCULATIONS
The standardized and nonstandardized average annual total returns are computed
according to the formula described below. A hypothetical initial investment of
$1,000 is applied to the Funding Option, and then related to ending redeemable
values as of the most recent fiscal year end over a 1-year, 3-year (non
standardized only), 5-year, and 10-year period, or since inception if a fund
has not been in existence for one of the prescribed periods.
1/n
T = (ERV/P) -1 where:
T = average annual total return
P = a hypothetical initial payment of $1,000
n = the applicable year (1, 3, 5, 10) or portion thereof
ERV = ending redeemable value of a hypothetical $1,000
payment made at the beginning of each of the periods
Both the standardized and nonstandardized performance returns reflect the
deduction for the management fees and other expenses for a Funding Option, the
applicable mortality and expense risk fee and the Funding Option administrative
charge (if applicable).
For Funding Options that were in existence prior to the date they became
available under Fund QP, the standardized and nonstandardized average total
return quotations will show the investment performance that such Funding
Options would have achieved (reduced by the applicable maximum charges) had
they been held under the Contract for the period quoted. The total return
quotations are based upon historical earnings and are not necessarily
representative of future performance. An Owner's Cash Value at redemption may
be more or less than original cost.
Standardized Method
The standardized returns take into consideration the maximum fees and/or
charges applicable to the Funding Option or contract.
Under the standardized method, the $15 semiannual account charge is reflected
in the calculation and is assumed to be deducted at the end of June and
December of each year. It is expressed as a percentage of assets based on the
fees collected (or, anticipated, if a new product) divided by the average net
assets (or, anticipated average net assets, if a new product) for contracts
sold under the prospectus for each year for which performance is shown.
Each standardized average annual total return quotation assumes a total
redemption at the end of each period with the assessment of the maximum
applicable deferred sales charge/surrender charge at that time.
Nonstandardized Method
Nonstandardized returns do not reflect the deduction of any applicable deferred
sales charge/surrender charge or the $15 semiannual account charge, which, if
reflected, would decrease the level of performance shown. The deferred sales
charge/surrender charge is not reflected because the contract is designed for
long-term investment.
For a Schedule of the Computation of the Total Return Quotations, both
Standardized and Nonstandardized, see attached.
<PAGE> 2
GOLDTRACK STANDARDIZED PERFORMANCE
Capital Appreciation Fund
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.228688 1000 813.876 0.090%
06/30/86 1.539766 -0.50697 -0.329 0.090%
12/31/86 1.342680 -0.52763 -0.393 0.090%
06/30/87 1.726462 -0.56153 -0.325 0.090%
12/31/87 1.229121 -0.54054 -0.440 0.090%
06/30/88 1.435009 -0.48697 -0.339 0.090%
12/31/88 1.344498 -0.50785 -0.378 0.090%
06/30/89 1.481169 -0.51604 -0.348 0.090%
12/31/89 1.543225 -0.55210 -0.358 0.090%
06/30/90 1.653233 -0.58325 -0.353 0.090%
12/31/90 1.481314 1000 675.076 -0.57170 -0.386 0.090%
06/30/91 1.757918 -0.49201 -0.280 -0.59052 -0.336 0.090%
12/31/91 1.971928 -0.56630 -0.287 -0.67967 -0.345 0.090%
06/30/92 1.947150 -0.59478 -0.305 -0.71385 -0.367 0.090%
12/31/92 2.305613 -0.64513 -0.280 -0.77428 -0.336 0.090%
06/30/93 2.531558 -0.73347 -0.290 -0.88032 -0.348 0.090%
12/31/93 2.637083 -0.78340 -0.297 -0.94023 -0.357 0.090%
06/30/94 2.379880 -0.76007 -0.319 -0.91224 -0.383 0.090%
12/31/94 2.495981 1000 400.644 -0.73835 -0.296 -0.88616 -0.355 0.090%
06/30/95 2.987396 -0.49430 -0.165 -0.82998 -0.278 -0.99614 -0.333 0.090%
12/31/95 3.383258 -0.57405 -0.170 -0.96388 -0.285 -1.15685 -0.342 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 400.309 672.159 806.725
Account Value $1,354.35 $2,274.09 $2,729.36
Cash Surrender Value $1,354.35 $2,274.09 $2,729.36
Total Return 35.43% 127.41% 172.94%
Annualized Return 17.86% 10.56%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.225602 1000 815.926 0.090%
06/30/86 1.534379 -0.50669 -0.330 0.090%
12/31/86 1.336630 -0.52686 -0.394 0.090%
06/30/87 1.716981 -0.56009 -0.326 0.090%
12/31/87 1.221130 -0.53869 -0.441 0.090%
06/30/88 1.424261 -0.48476 -0.340 0.090%
12/31/88 1.333089 -0.50507 -0.379 0.090%
06/30/89 1.467136 -0.51268 -0.349 0.090%
12/31/89 1.527081 -0.54796 -0.359 0.090%
06/30/90 1.634307 -0.57830 -0.354 0.090%
12/31/90 1.454840 1000 687.361 -0.56484 -0.388 0.090%
06/30/91 1.724809 -0.49175 -0.285 -0.58111 -0.337 0.090%
12/31/91 1.932820 -0.56544 -0.293 -0.66819 -0.346 0.090%
06/30/92 1.906630 -0.59330 -0.311 -0.70111 -0.368 0.090%
12/31/92 2.255361 -0.64285 -0.285 -0.75966 -0.337 0.090%
06/30/93 2.473929 -0.73016 -0.295 -0.86285 -0.349 0.090%
12/31/93 2.574455 -0.77910 -0.303 -0.92067 -0.358 0.090%
06/30/94 2.321055 -0.75517 -0.325 -0.89240 -0.384 0.090%
12/31/94 2.431848 1000 411.210 -0.73282 -0.301 -0.86599 -0.356 0.090%
06/30/95 2.907738 -0.49403 -0.170 -0.82292 -0.283 -0.97246 -0.334 0.090%
12/31/95 3.289765 -0.57317 -0.174 -0.95474 -0.290 -1.12824 -0.343 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 410.866 684.390 808.754
Account Value $1,351.65 $2,251.48 $2,660.61
Cash Surrender Value $1,284.07 $2,183.94 $2,660.61
Total Return 28.41% 118.39% 166.06%
Annualized Return 16.91% 10.28%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.223293 1000 817.466 0.090%
06/30/86 1.530351 -0.50648 -0.331 0.090%
12/31/86 1.332111 -0.52628 -0.395 0.090%
06/30/87 1.709905 -0.55902 -0.327 0.090%
12/31/87 1.215171 -0.53732 -0.442 0.090%
06/30/88 1.416253 -0.48311 -0.341 0.090%
12/31/88 1.324596 -0.50299 -0.380 0.090%
06/30/89 1.456699 -0.51018 -0.350 0.090%
12/31/89 1.515084 -0.54488 -0.360 0.090%
06/30/90 1.620255 -0.57462 -0.355 0.090%
12/31/90 1.435266 1000 696.735 -0.55975 -0.390 0.090%
06/30/91 1.700353 -0.49156 -0.289 -0.57414 -0.338 0.090%
12/31/91 1.903961 -0.56480 -0.297 -0.65969 -0.346 0.090%
06/30/92 1.876757 -0.59219 -0.316 -0.69168 -0.369 0.090%
12/31/92 2.218348 -0.64114 -0.289 -0.74886 -0.338 0.090%
06/30/93 2.431520 -0.72769 -0.299 -0.84995 -0.350 0.090%
12/31/93 2.528410 -0.77588 -0.307 -0.90624 -0.358 0.090%
06/30/94 2.277847 -0.75151 -0.330 -0.87777 -0.385 0.090%
12/31/94 2.384784 1000 419.325 -0.72871 -0.306 -0.85114 -0.357 0.090%
06/30/95 2.849334 -0.49383 -0.173 -0.81766 -0.287 -0.95504 -0.335 0.090%
12/31/95 3.221279 -0.57251 -0.178 -0.94795 -0.294 -1.10721 -0.344 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 418.974 693.721 810.275
Account Value $1,349.63 $2,234.67 $2,610.12
Cash Surrender Value $1,282.15 $2,167.63 $2,610.12
Total Return 28.22% 116.76% 161.01%
Annualized Return 16.73% 10.07%
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.220220 1000 819.524 0.090%
06/30/86 1.524996 -0.50620 -0.332 0.090%
12/31/86 1.326108 -0.52551 -0.396 0.090%
06/30/87 1.700516 -0.55759 -0.328 0.090%
12/31/87 1.207271 -0.53548 -0.444 0.090%
06/30/88 1.405645 -0.48092 -0.342 0.090%
12/31/88 1.313355 -0.50024 -0.381 0.090%
06/30/89 1.442898 -0.50685 -0.351 0.090%
12/31/89 1.499233 -0.54080 -0.361 0.090%
06/30/90 1.601706 -0.56974 -0.356 0.090%
12/31/90 1.409539 1000 709.452 -0.55302 -0.392 0.090%
06/30/91 1.668239 -0.49130 -0.294 -0.56497 -0.339 0.090%
12/31/91 1.866099 -0.56394 -0.302 -0.64851 -0.348 0.090%
06/30/92 1.837602 -0.59071 -0.321 -0.67929 -0.370 0.090%
12/31/92 2.169880 -0.63887 -0.294 -0.73468 -0.339 0.090%
06/30/93 2.376039 -0.72441 -0.305 -0.83304 -0.351 0.090%
12/31/93 2.468229 -0.77162 -0.313 -0.88733 -0.360 0.090%
06/30/94 2.221423 -0.74666 -0.336 -0.85863 -0.387 0.090%
12/31/94 2.323382 1000 430.407 -0.72326 -0.311 -0.83171 -0.358 0.090%
06/30/95 2.773206 -0.49356 -0.178 -0.81071 -0.292 -0.93228 -0.336 0.090%
12/31/95 3.132091 -0.57164 -0.183 -0.93897 -0.300 -1.07977 -0.345 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 430.046 706.384 812.308
Account Value $1,346.94 $2,212.46 $2,544.22
Cash Surrender Value $1,279.60 $2,146.09 $2,544.22
Total Return 27.96% 114.61% 154.42%
Annualized Return 16.50% 9.79%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.217921 1000 821.071 0.090%
06/30/86 1.520992 -0.50599 -0.333 0.090%
12/31/86 1.321624 -0.52493 -0.397 0.090%
06/30/87 1.693507 -0.55652 -0.329 0.090%
12/31/87 1.201380 -0.53411 -0.445 0.090%
06/30/88 1.397742 -0.47928 -0.343 0.090%
12/31/88 1.304988 -0.49818 -0.382 0.090%
06/30/89 1.432633 -0.50438 -0.352 0.090%
12/31/89 1.487455 -0.53776 -0.362 0.090%
06/30/90 1.587934 -0.56611 -0.357 0.090%
12/31/90 1.390518 1000 719.156 -0.54803 -0.394 0.090%
06/30/91 1.644517 -0.49110 -0.299 -0.55817 -0.339 0.090%
12/31/91 1.838161 -0.56330 -0.306 -0.64023 -0.348 0.090%
06/30/92 1.808735 -0.58961 -0.326 -0.67014 -0.370 0.090%
12/31/92 2.134182 -0.63718 -0.299 -0.72420 -0.339 0.090%
06/30/93 2.335212 -0.72196 -0.309 -0.82056 -0.351 0.090%
12/31/93 2.423984 -0.76844 -0.317 -0.87339 -0.360 0.090%
06/30/94 2.179980 -0.74305 -0.341 -0.84453 -0.387 0.090%
12/31/94 2.278324 1000 438.919 -0.71919 -0.316 -0.81742 -0.359 0.090%
06/30/95 2.717393 -0.49336 -0.182 -0.80553 -0.296 -0.91555 -0.337 0.090%
12/31/95 3.066761 -0.57099 -0.186 -0.93228 -0.304 -1.05961 -0.346 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 438.551 716.043 813.841
Account Value $1,344.93 $2,195.93 $2,495.86
Cash Surrender Value $1,277.68 $2,130.05 $2,495.86
Total Return 27.77% 113.01% 149.59%
Annualized Return 16.33% 9.58%
</TABLE>
<PAGE> 4
GOLDTRACK STANDARDIZED PERFORMANCE
<TABLE>
<CAPTION>
High Yield Bond Trust
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.255725 1000 796.353 0.090%
06/30/86 1.349549 -0.46681 -0.346 0.090%
12/31/86 1.347914 -0.48312 -0.358 0.090%
06/30/87 1.397493 -0.49149 -0.352 0.090%
12/31/87 1.333492 -0.48869 -0.366 0.090%
06/30/88 1.444289 -0.49683 -0.344 0.090%
12/31/88 1.519149 -0.52981 -0.349 0.090%
06/30/89 1.628944 -0.56258 -0.345 0.090%
12/31/89 1.531059 -0.56446 -0.369 0.090%
06/30/90 1.488650 -0.53915 -0.362 0.090%
12/31/90 1.477227 1000 676.944 -0.52929 -0.358 0.090%
06/30/91 1.683750 -0.48146 -0.286 -0.56386 -0.335 0.090%
12/31/91 1.873314 -0.54156 -0.289 -0.63424 -0.339 0.090%
06/30/92 2.006284 -0.59041 -0.294 -0.69146 -0.345 0.090%
12/31/92 2.106675 -0.62565 -0.297 -0.73273 -0.348 0.090%
06/30/93 2.293467 -0.66904 -0.292 -0.78355 -0.342 0.090%
12/31/93 2.387202 -0.71139 -0.298 -0.83314 -0.349 0.090%
06/30/94 2.311102 -0.71375 -0.309 -0.83591 -0.362 0.090%
12/31/94 2.342781 1000 426.843 -0.70668 -0.302 -0.82763 -0.353 0.090%
06/30/95 2.593333 -0.47406 -0.183 -0.74920 -0.289 -0.87743 -0.338 0.090%
12/31/95 2.690205 -0.50721 -0.189 -0.80159 -0.298 -0.93878 -0.349 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 426.471 673.990 789.344
Account Value $1,147.29 $1,813.17 $2,123.50
Cash Surrender Value $1,147.29 $1,813.17 $2,123.50
Total Return 14.73% 81.32% 112.35%
Annualized Return 12.64% 7.82%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.252573 1000 798.357 0.090%
06/30/86 1.344829 -0.46657 -0.347 0.090%
12/31/86 1.341846 -0.48240 -0.360 0.090%
06/30/87 1.389823 -0.49026 -0.353 0.090%
12/31/87 1.324836 -0.48699 -0.368 0.090%
06/30/88 1.433486 -0.49459 -0.345 0.090%
12/31/88 1.506275 -0.52690 -0.350 0.090%
06/30/89 1.613530 -0.55892 -0.346 0.090%
12/31/89 1.515060 -0.56025 -0.370 0.090%
06/30/90 1.471625 -0.53459 -0.363 0.090%
12/31/90 1.427335 1000 700.606 -0.51865 -0.363 0.090%
06/30/91 1.625291 -0.48120 -0.296 -0.54590 -0.336 0.090%
12/31/91 1.806433 -0.54074 -0.299 -0.61343 -0.340 0.090%
06/30/92 1.932728 -0.58893 -0.305 -0.66810 -0.346 0.090%
12/31/92 2.027395 -0.62346 -0.308 -0.70727 -0.349 0.090%
06/30/93 2.204971 -0.66602 -0.302 -0.75556 -0.343 0.090%
12/31/93 2.292778 -0.70748 -0.309 -0.80259 -0.350 0.090%
06/30/94 2.217487 -0.70914 -0.320 -0.80447 -0.363 0.090%
12/31/94 2.245630 1000 445.309 -0.70140 -0.312 -0.79569 -0.354 0.090%
06/30/95 2.483317 -0.47381 -0.191 -0.74285 -0.299 -0.84271 -0.339 0.090%
12/31/95 2.573513 -0.50645 -0.197 -0.79401 -0.309 -0.90075 -0.350 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 444.921 697.547 791.322
Account Value $1,145.01 $1,795.15 $2,036.48
Cash Surrender Value $1,087.76 $1,741.29 $2,036.48
Total Return 8.78% 74.13% 103.65%
Annualized Return 11.73% 7.37%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.250215 1000 799.862 0.090%
06/30/86 1.341299 -0.46639 -0.348 0.090%
12/31/86 1.337313 -0.48186 -0.360 0.090%
06/30/87 1.384099 -0.48934 -0.354 0.090%
12/31/87 1.318382 -0.48572 -0.368 0.090%
06/30/88 1.425436 -0.49292 -0.346 0.090%
12/31/88 1.496691 -0.52472 -0.351 0.090%
06/30/89 1.602066 -0.55620 -0.347 0.090%
12/31/89 1.503170 -0.55712 -0.371 0.090%
06/30/90 1.458984 -0.53120 -0.364 0.090%
12/31/90 1.390581 1000 719.124 -0.51078 -0.367 0.090%
06/30/91 1.582276 -0.48102 -0.304 -0.53263 -0.337 0.090%
12/31/91 1.757282 -0.54012 -0.307 -0.59808 -0.340 0.090%
06/30/92 1.878736 -0.58782 -0.313 -0.65089 -0.346 0.090%
12/31/92 1.969269 -0.62182 -0.316 -0.68854 -0.350 0.090%
06/30/93 2.140163 -0.66377 -0.310 -0.73499 -0.343 0.090%
12/31/93 2.223707 -0.70456 -0.317 -0.78017 -0.351 0.090%
06/30/94 2.149085 -0.70569 -0.328 -0.78141 -0.364 0.090%
12/31/94 2.174725 1000 459.828 -0.69747 -0.321 -0.77231 -0.355 0.090%
06/30/95 2.403110 -0.47363 -0.197 -0.73812 -0.307 -0.81732 -0.340 0.090%
12/31/95 2.488532 -0.50588 -0.203 -0.78837 -0.317 -0.87297 -0.351 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 459.428 715.984 792.809
Account Value $1,143.30 $1,781.75 $1,972.93
Cash Surrender Value $1,086.14 $1,728.30 $1,972.93
Total Return 8.61% 72.83% 97.29%
Annualized Return 11.56% 7.03%
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.247077 1000 801.875 0.090%
06/30/86 1.336608 -0.46615 -0.349 0.090%
12/31/86 1.331293 -0.48114 -0.361 0.090%
06/30/87 1.376502 -0.48811 -0.355 0.090%
12/31/87 1.309824 -0.48403 -0.370 0.090%
06/30/88 1.414773 -0.49070 -0.347 0.090%
12/31/88 1.484007 -0.52184 -0.352 0.090%
06/30/89 1.586907 -0.55259 -0.348 0.090%
12/31/89 1.487461 -0.55297 -0.372 0.090%
06/30/90 1.442298 -0.52671 -0.365 0.090%
12/31/90 1.342448 1000 744.908 -0.50041 -0.373 0.090%
06/30/91 1.526012 -0.48077 -0.315 -0.51521 -0.338 0.090%
12/31/91 1.693070 -0.53930 -0.319 -0.57795 -0.341 0.090%
06/30/92 1.808282 -0.58634 -0.324 -0.62836 -0.347 0.090%
12/31/92 1.893511 -0.61964 -0.327 -0.66404 -0.351 0.090%
06/30/93 2.055793 -0.66078 -0.321 -0.70813 -0.344 0.090%
12/31/93 2.133892 -0.70070 -0.328 -0.75090 -0.352 0.090%
06/30/94 2.060239 -0.70113 -0.340 -0.75137 -0.365 0.090%
12/31/94 2.082730 1000 480.139 -0.69226 -0.332 -0.74186 -0.356 0.090%
06/30/95 2.299163 -0.47338 -0.206 -0.73185 -0.318 -0.78429 -0.341 0.090%
12/31/95 2.378517 -0.50512 -0.212 -0.78092 -0.328 -0.83688 -0.352 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 479.721 741.656 794.796
Account Value $1,141.02 $1,764.04 $1,890.44
Cash Surrender Value $1,083.97 $1,711.12 $1,890.44
Total Return 8.40% 71.11% 89.04%
Annualized Return 11.34% 6.58%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.244729 1000 803.388 0.090%
06/30/86 1.333100 -0.46597 -0.350 0.090%
12/31/86 1.326795 -0.48060 -0.362 0.090%
06/30/87 1.370832 -0.48720 -0.355 0.090%
12/31/87 1.303442 -0.48277 -0.370 0.090%
06/30/88 1.406828 -0.48904 -0.348 0.090%
12/31/88 1.474564 -0.51969 -0.352 0.090%
06/30/89 1.575631 -0.54989 -0.349 0.090%
12/31/89 1.475788 -0.54987 -0.373 0.090%
06/30/90 1.429908 -0.52337 -0.366 0.090%
12/31/90 1.306992 1000 765.116 -0.49274 -0.377 0.090%
06/30/91 1.484617 -0.48058 -0.324 -0.50236 -0.338 0.090%
12/31/91 1.645886 -0.53869 -0.327 -0.56310 -0.342 0.090%
06/30/92 1.756574 -0.58524 -0.333 -0.61176 -0.348 0.090%
12/31/92 1.837976 -0.61801 -0.336 -0.64601 -0.351 0.090%
06/30/93 1.994015 -0.65854 -0.330 -0.68838 -0.345 0.090%
12/31/93 2.068204 -0.69781 -0.337 -0.72943 -0.353 0.090%
06/30/94 1.995334 -0.69773 -0.350 -0.72934 -0.366 0.090%
12/31/94 2.015600 1000 496.130 -0.68838 -0.342 -0.71957 -0.357 0.090%
06/30/95 2.223394 -0.47320 -0.213 -0.72719 -0.327 -0.76014 -0.342 0.090%
12/31/95 2.298414 -0.50455 -0.220 -0.77538 -0.337 -0.81051 -0.353 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 495.697 761.773 796.291
Account Value $1,139.32 $1,750.87 $1,830.21
Cash Surrender Value $1,082.35 $1,698.34 $1,830.21
Total Return 8.24% 69.83% 83.02%
Annualized Return 11.17% 6.23%
</TABLE>
<PAGE> 6
GOLDTRACK STANDARDIZED PERFORMANCE
Managed Assets Trust
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.291947 1000 774.026 0.090%
06/30/86 1.567001 -0.49790 -0.318 0.090%
12/31/86 1.528836 -0.53894 -0.353 0.090%
06/30/87 1.857515 -0.58924 -0.317 0.090%
12/31/87 1.552258 -0.59307 -0.382 0.090%
06/30/88 1.663579 -0.55907 -0.336 0.090%
12/31/88 1.685407 -0.58196 -0.345 0.090%
06/30/89 1.919849 -0.62621 -0.326 0.090%
12/31/89 2.129931 -0.70313 -0.330 0.090%
06/30/90 2.195150 -0.75060 -0.342 0.090%
12/31/90 2.159851 1000 462.995 -0.75546 -0.350 0.090%
06/30/91 2.324388 -0.46714 -0.201 -0.77753 -0.335 0.090%
12/31/91 2.626457 -0.51552 -0.196 -0.85806 -0.327 0.090%
06/30/92 2.603626 -0.54437 -0.209 -0.90607 -0.348 0.090%
12/31/92 2.744536 -0.55641 -0.203 -0.92611 -0.337 0.090%
06/30/93 2.887310 -0.58567 -0.203 -0.97480 -0.338 0.090%
12/31/93 2.983671 -0.61027 -0.205 -1.01575 -0.340 0.090%
06/30/94 2.846392 -0.60574 -0.213 -1.00822 -0.354 0.090%
12/31/94 2.898727 1000 344.979 -0.59664 -0.206 -0.99308 -0.343 0.090%
06/30/95 3.336953 -0.48402 -0.145 -0.64730 -0.194 -1.07739 -0.323 0.090%
12/31/95 3.662590 -0.54308 -0.148 -0.72629 -0.198 -1.20886 -0.330 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 344.686 460.967 767.252
Account Value $1,262.44 $1,688.33 $2,810.13
Cash Surrender Value $1,262.44 $1,688.33 $2,810.13
Total Return 26.24% 68.83% 181.01%
Annualized Return 11.04% 10.88%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.288704 1000 775.973 0.090%
06/30/86 1.561520 -0.49763 -0.319 0.090%
12/31/86 1.521952 -0.53813 -0.354 0.090%
06/30/87 1.847320 -0.58774 -0.318 0.090%
12/31/87 1.542175 -0.59103 -0.383 0.090%
06/30/88 1.651127 -0.55654 -0.337 0.090%
12/31/88 1.671116 -0.57876 -0.346 0.090%
06/30/89 1.901673 -0.62213 -0.327 0.090%
12/31/89 2.107665 -0.69786 -0.331 0.090%
06/30/90 2.170037 -0.74425 -0.343 0.090%
12/31/90 2.132979 1000 468.828 -0.74832 -0.351 0.090%
06/30/91 2.293220 -0.46690 -0.204 -0.76939 -0.336 0.090%
12/31/91 2.588603 -0.51474 -0.199 -0.84822 -0.328 0.090%
06/30/92 2.563543 -0.54301 -0.212 -0.89481 -0.349 0.090%
12/31/92 2.699562 -0.55446 -0.205 -0.91367 -0.338 0.090%
06/30/93 2.837183 -0.58303 -0.205 -0.96075 -0.339 0.090%
12/31/93 2.928918 -0.60691 -0.207 -1.00011 -0.341 0.090%
06/30/94 2.791387 -0.60183 -0.216 -0.99173 -0.355 0.090%
12/31/94 2.839862 1000 352.130 -0.59218 -0.209 -0.97584 -0.344 0.090%
06/30/95 3.265933 -0.48376 -0.148 -0.64180 -0.197 -1.05760 -0.324 0.090%
12/31/95 3.581070 -0.54225 -0.151 -0.71941 -0.201 -1.18549 -0.331 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 351.831 466.773 769.179
Account Value $1,259.93 $1,671.55 $2,754.48
Cash Surrender Value $1,196.93 $1,621.40 $2,754.48
Total Return 19.69% 62.14% 175.45%
Annualized Return 10.15% 10.66%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.286277 1000 777.438 0.090%
06/30/86 1.557423 -0.49743 -0.319 0.090%
12/31/86 1.516810 -0.53754 -0.354 0.090%
06/30/87 1.839711 -0.58663 -0.319 0.090%
12/31/87 1.534656 -0.58950 -0.384 0.090%
06/30/88 1.641850 -0.55466 -0.338 0.090%
12/31/88 1.660476 -0.57638 -0.347 0.090%
06/30/89 1.888154 -0.61909 -0.328 0.090%
12/31/89 2.091118 -0.69393 -0.332 0.090%
06/30/90 2.151392 -0.73952 -0.344 0.090%
12/31/90 2.113045 1000 473.251 -0.74301 -0.352 0.090%
06/30/91 2.270119 -0.46673 -0.206 -0.76335 -0.336 0.090%
12/31/91 2.560570 -0.51415 -0.201 -0.84092 -0.328 0.090%
06/30/92 2.533885 -0.54200 -0.214 -0.88646 -0.350 0.090%
12/31/92 2.666315 -0.55300 -0.207 -0.90445 -0.339 0.090%
06/30/93 2.800160 -0.58106 -0.208 -0.95035 -0.339 0.090%
12/31/93 2.888513 -0.60441 -0.209 -0.98854 -0.342 0.090%
06/30/94 2.750831 -0.59891 -0.218 -0.97954 -0.356 0.090%
12/31/94 2.796498 1000 357.590 -0.58886 -0.211 -0.96311 -0.344 0.090%
06/30/95 3.213662 -0.48356 -0.150 -0.63771 -0.198 -1.04300 -0.325 0.090%
12/31/95 3.521122 -0.54164 -0.154 -0.71429 -0.203 -1.16826 -0.332 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 357.286 471.176 770.630
Account Value $1,258.05 $1,659.07 $2,713.48
Cash Surrender Value $1,195.15 $1,609.30 $2,713.48
Total Return 19.51% 60.93% 171.35%
Annualized Return 9.98% 10.50%
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.283048 1000 779.394 0.090%
06/30/86 1.551975 -0.49716 -0.320 0.090%
12/31/86 1.509980 -0.53674 -0.355 0.090%
06/30/87 1.829615 -0.58514 -0.320 0.090%
12/31/87 1.524688 -0.58747 -0.385 0.090%
06/30/88 1.629560 -0.55216 -0.339 0.090%
12/31/88 1.646396 -0.57322 -0.348 0.090%
06/30/89 1.870278 -0.61506 -0.329 0.090%
12/31/89 2.069257 -0.68873 -0.333 0.090%
06/30/90 2.126779 -0.73326 -0.345 0.090%
12/31/90 2.086756 1000 479.213 -0.73599 -0.353 0.090%
06/30/91 2.239678 -0.46649 -0.208 -0.75536 -0.337 0.090%
12/31/91 2.523665 -0.51337 -0.203 -0.83128 -0.329 0.090%
06/30/92 2.494875 -0.54065 -0.217 -0.87545 -0.351 0.090%
12/31/92 2.622622 -0.55106 -0.210 -0.89231 -0.340 0.090%
06/30/93 2.751545 -0.57845 -0.210 -0.93665 -0.340 0.090%
12/31/93 2.835504 -0.60109 -0.212 -0.97332 -0.343 0.090%
06/30/94 2.697671 -0.59503 -0.221 -0.96351 -0.357 0.090%
12/31/94 2.739708 1000 365.002 -0.58446 -0.213 -0.94639 -0.345 0.090%
06/30/95 3.145265 -0.48331 -0.154 -0.63229 -0.201 -1.02384 -0.326 0.090%
12/31/95 3.442749 -0.54082 -0.157 -0.70753 -0.206 -1.14567 -0.333 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 364.691 477.112 772.566
Account Value $1,255.54 $1,642.58 $2,659.75
Cash Surrender Value $1,192.76 $1,593.30 $2,659.75
Total Return 19.28% 59.33% 165.98%
Annualized Return 9.76% 10.28%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.280632 1000 780.864 0.090%
06/30/86 1.547903 -0.49696 -0.321 0.090%
12/31/86 1.504877 -0.53614 -0.356 0.090%
06/30/87 1.822078 -0.58402 -0.321 0.090%
12/31/87 1.517254 -0.58595 -0.386 0.090%
06/30/88 1.620404 -0.55029 -0.340 0.090%
12/31/88 1.635914 -0.57085 -0.349 0.090%
06/30/89 1.856982 -0.61205 -0.330 0.090%
12/31/89 2.053011 -0.68485 -0.334 0.090%
06/30/90 2.108505 -0.72859 -0.346 0.090%
12/31/90 2.067254 1000 483.733 -0.73076 -0.353 0.090%
06/30/91 2.217116 -0.46631 -0.210 -0.74943 -0.338 0.090%
12/31/91 2.496335 -0.51279 -0.205 -0.82412 -0.330 0.090%
06/30/92 2.466011 -0.53964 -0.219 -0.86727 -0.352 0.090%
12/31/92 2.590322 -0.54961 -0.212 -0.88330 -0.341 0.090%
06/30/93 2.715638 -0.57649 -0.212 -0.92650 -0.341 0.090%
12/31/93 2.796387 -0.59862 -0.214 -0.96206 -0.344 0.090%
06/30/94 2.658477 -0.59215 -0.223 -0.95166 -0.358 0.090%
12/31/94 2.697873 1000 370.662 -0.58118 -0.215 -0.93404 -0.346 0.090%
06/30/95 3.094924 -0.48311 -0.156 -0.62826 -0.203 -1.00970 -0.326 0.090%
12/31/95 3.385115 -0.54020 -0.160 -0.70250 -0.208 -1.12901 -0.334 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 370.346 481.612 774.018
Account Value $1,253.66 $1,630.31 $2,620.14
Cash Surrender Value $1,190.98 $1,580.31 $2,620.14
Total Return 19.10% 58.03% 162.01%
Annualized Return 9.58% 10.11%
</TABLE>
<PAGE> 8
GOLDTRACK STANDARDIZED PERFORMANCE
Dreyfus Stock Index Fund
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/29/89 1.000000 1000 1000.000 0.090%
12/31/89 1.020073 -0.23162 -0.227 0.090%
06/30/90 1.045637 -0.46468 -0.444 0.090%
12/31/90 0.978586 1000 1021.883 -0.45514 -0.465 0.090%
06/30/91 1.112612 -0.48082 -0.432 -0.46999 -0.422 0.090%
12/31/91 1.263066 -0.54599 -0.432 -0.53369 -0.423 0.090%
06/30/92 1.247768 -0.57681 -0.462 -0.56382 -0.452 0.090%
12/31/92 1.344616 -0.59528 -0.443 -0.58187 -0.433 0.090%
06/30/93 1.400185 -0.63000 -0.450 -0.61581 -0.440 0.090%
12/31/93 1.461279 -0.65649 -0.449 -0.64170 -0.439 0.090%
06/30/94 1.405183 -0.65735 -0.468 -0.64254 -0.457 0.090%
12/31/94 1.465327 1000 682.442 -0.65797 -0.449 -0.64315 -0.439 0.090%
06/30/95 1.750845 -0.49384 -0.282 -0.73688 -0.421 -0.72028 -0.411 0.090%
12/31/95 1.992334 -0.57453 -0.288 -0.85727 -0.430 -0.83796 -0.421 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 681.872 1017.447 994.527
Account Value $1,358.52 $2,027.09 $1,981.43
Cash Surrender Value $1,358.52 $2,027.09 $1,981.43
Total Return 35.85% 102.71% 98.14%
Annualized Return 15.18% 11.55%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/29/89 1.000000 1000 1000.000 0.090%
12/31/89 1.019565 -0.23156 -0.227 0.090%
06/30/90 1.044075 -0.46421 -0.445 0.090%
12/31/90 0.976134 1000 1024.450 -0.45424 -0.465 0.090%
06/30/91 1.108737 -0.48057 -0.433 -0.46856 -0.423 0.090%
12/31/91 1.257386 -0.54516 -0.434 -0.53155 -0.423 0.090%
06/30/92 1.240920 -0.57538 -0.464 -0.56100 -0.452 0.090%
12/31/92 1.335889 -0.59319 -0.444 -0.57837 -0.433 0.090%
06/30/93 1.389719 -0.62717 -0.451 -0.61150 -0.440 0.090%
12/31/93 1.448896 -0.65288 -0.451 -0.63658 -0.439 0.090%
06/30/94 1.391894 -0.65309 -0.469 -0.63678 -0.457 0.090%
12/31/94 1.450016 1000 689.648 -0.65305 -0.450 -0.63674 -0.439 0.090%
06/30/95 1.730826 -0.49357 -0.285 -0.73061 -0.422 -0.71237 -0.412 0.090%
12/31/95 1.967592 -0.57365 -0.292 -0.84915 -0.432 -0.82794 -0.421 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 689.071 1020.000 994.524
Account Value $1,355.81 $2,006.94 $1,956.82
Cash Surrender Value $1,288.02 $1,946.74 $1,917.68
Total Return 28.80% 94.67% 91.77%
Annualized Return 14.25% 10.97%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/29/89 1.000000 1000 1000.000 0.090%
12/31/89 1.019184 -0.23151 -0.227 0.090%
06/30/90 1.042905 -0.46386 -0.445 0.090%
12/31/90 0.974299 1000 1026.379 -0.45357 -0.466 0.090%
06/30/91 1.105839 -0.48038 -0.434 -0.46750 -0.423 0.090%
12/31/91 1.253143 -0.54454 -0.435 -0.52994 -0.423 0.090%
06/30/92 1.235808 -0.57430 -0.465 -0.55890 -0.452 0.090%
12/31/92 1.329382 -0.59162 -0.445 -0.57576 -0.433 0.090%
06/30/93 1.381922 -0.62505 -0.452 -0.60829 -0.440 0.090%
12/31/93 1.439677 -0.65019 -0.452 -0.63276 -0.440 0.090%
06/30/94 1.382010 -0.64992 -0.470 -0.63250 -0.458 0.090%
12/31/94 1.438637 1000 695.102 -0.64939 -0.451 -0.63198 -0.439 0.090%
06/30/95 1.715961 -0.49337 -0.288 -0.72595 -0.423 -0.70649 -0.412 0.090%
12/31/95 1.949237 -0.57299 -0.294 -0.84310 -0.433 -0.82050 -0.421 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 694.52 1021.919 994.521
Account Value $1,353.78 $1,991.96 $1,938.56
Cash Surrender Value $1,286.09 $1,932.20 $1,899.79
Total Return 28.61% 93.22% 89.98%
Annualized Return 14.08% 10.80%
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/29/89 1.000000 1000 1000.000 0.090%
12/31/89 1.018676 -0.23146 -0.227 0.090%
06/30/90 1.041347 -0.46340 -0.445 0.090%
12/31/90 0.971858 1000 1028.957 -0.45267 -0.466 0.090%
06/30/91 1.101988 -0.48013 -0.436 -0.46608 -0.423 0.090%
12/31/91 1.247509 -0.54371 -0.436 -0.52781 -0.423 0.090%
06/30/92 1.229024 -0.57287 -0.466 -0.55611 -0.452 0.090%
12/31/92 1.320754 -0.58955 -0.446 -0.57230 -0.433 0.090%
06/30/93 1.371593 -0.62224 -0.454 -0.60404 -0.440 0.090%
12/31/93 1.427477 -0.64662 -0.453 -0.62771 -0.440 0.090%
06/30/94 1.368940 -0.64572 -0.472 -0.62683 -0.458 0.090%
12/31/94 1.423604 1000 702.443 -0.64453 -0.453 -0.62568 -0.440 0.090%
06/30/95 1.696340 -0.49311 -0.291 -0.71978 -0.424 -0.69873 -0.412 0.090%
12/31/95 1.925030 -0.57212 -0.297 -0.83511 -0.434 -0.81069 -0.421 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 701.855 1024.483 994.520
Account Value $1,351.09 $1,972.16 $1,914.48
Cash Surrender Value $1,283.54 $1,913.00 $1,876.19
Total Return 28.35% 91.30% 87.62%
Annualized Return 13.85% 10.58%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/29/89 1.000000 1000 1000.000 0.090%
12/31/89 1.018296 -0.23141 -0.227 0.090%
06/30/90 1.040179 -0.46305 -0.445 0.090%
12/31/90 0.970031 1000 1030.895 -0.45199 -0.466 0.090%
06/30/91 1.099108 -0.47994 -0.437 -0.46503 -0.423 0.090%
12/31/91 1.243299 -0.54309 -0.437 -0.52622 -0.423 0.090%
06/30/92 1.223961 -0.57180 -0.467 -0.55403 -0.453 0.090%
12/31/92 1.314319 -0.58799 -0.447 -0.56972 -0.433 0.090%
06/30/93 1.363897 -0.62014 -0.455 -0.60087 -0.441 0.090%
12/31/93 1.418395 -0.64395 -0.454 -0.62394 -0.440 0.090%
06/30/94 1.359218 -0.64259 -0.473 -0.62262 -0.458 0.090%
12/31/94 1.412432 1000 707.999 -0.64091 -0.454 -0.62100 -0.440 0.090%
06/30/95 1.681771 -0.49291 -0.293 -0.71518 -0.425 -0.69296 -0.412 0.090%
12/31/95 1.907072 -0.57147 -0.300 -0.82917 -0.435 -0.80340 -0.421 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 707.406 1026.411 994.518
Account Value $1,349.07 $1,957.44 $1,896.62
Cash Surrender Value $1,281.62 $1,898.72 $1,858.69
Total Return 28.16% 89.87% 85.87%
Annualized Return 13.68% 10.41%
</TABLE>
<PAGE> 10
GOLDTRACK STANDARDIZED PERFORMANCE
US Government Securities
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
01/24/92 1.000000 1000 1000.000 0.090%
06/30/92 1.031425 -0.39571 -0.384 0.090%
12/31/92 1.072782 -0.47326 -0.441 0.090%
06/30/93 1.148042 -0.49927 -0.435 0.090%
12/31/93 1.167674 -0.52038 -0.446 0.090%
06/30/94 1.094267 -0.50807 -0.464 0.090%
12/31/94 1.095116 1000 913.145 -0.49154 -0.449 0.090%
06/30/95 1.258517 -0.48357 -0.384 -0.52818 -0.420 0.090%
12/31/95 1.355077 -0.53676 -0.396 -0.58627 -0.433 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 912.365 996.528
Account Value $1,236.32 $1,350.37
Cash Surrender Value $1,236.32 $1,350.37
Total Return 23.63% 35.04%
Annualized Return 7.93%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
01/24/92 1.000000 1000 1000.000 0.090%
06/30/92 1.030533 -0.39554 -0.384 0.090%
12/31/92 1.070774 -0.47261 -0.441 0.090%
06/30/93 1.144758 -0.49808 -0.435 0.090%
12/31/93 1.163161 -0.51863 -0.446 0.090%
06/30/94 1.088957 -0.50586 -0.465 0.090%
12/31/94 1.088709 1000 918.519 -0.48891 -0.449 0.090%
06/30/95 1.249909 -0.48331 -0.387 -0.52481 -0.420 0.090%
12/31/95 1.344468 -0.53595 -0.399 -0.58196 -0.433 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 917.733 996.527
Account Value $1,233.86 $1,339.80
Cash Surrender Value $1,172.17 $1,286.21
Total Return 17.22% 28.62%
Annualized Return 6.60%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
01/24/92 1.000000 1000 1000.000 0.090%
06/30/92 1.029864 -0.39541 -0.384 0.090%
12/31/92 1.069270 -0.47212 -0.442 0.090%
06/30/93 1.142301 -0.49719 -0.435 0.090%
12/31/93 1.159788 -0.51732 -0.446 0.090%
06/30/94 1.084991 -0.50421 -0.465 0.090%
12/31/94 1.083928 1000 922.571 -0.48695 -0.449 0.090%
06/30/95 1.243491 -0.48312 -0.389 -0.52230 -0.420 0.090%
12/31/95 1.336565 -0.53534 -0.401 -0.57875 -0.433 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 921.781 996.526
Account Value $1,232.02 $1,331.92
Cash Surrender Value $1,170.42 $1,278.64
Total Return 17.04% 27.86%
Annualized Return 6.44%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
01/24/92 1.000000 1000 1000.000 0.090%
06/30/92 1.028972 -0.39523 -0.384 0.090%
12/31/92 1.067268 -0.47147 -0.442 0.090%
06/30/93 1.139033 -0.49601 -0.435 0.090%
12/31/93 1.155305 -0.51558 -0.446 0.090%
06/30/94 1.079725 -0.50202 -0.465 0.090%
12/31/94 1.077587 1000 927.999 -0.48434 -0.449 0.090%
06/30/95 1.234985 -0.48286 -0.391 -0.51896 -0.420 0.090%
12/31/95 1.326101 -0.53453 -0.403 -0.57449 -0.433 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 927.205 996.526
Account Value $1,229.57 $1,321.49
Cash Surrender Value $1,168.09 $1,268.63
Total Return 16.81% 26.86%
Annualized Return 6.23%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
01/24/92 1.000000 1000 1000.000 0.090%
06/30/92 1.028304 -0.39510 -0.384 0.090%
12/31/92 1.065770 -0.47099 -0.442 0.090%
06/30/93 1.136589 -0.49512 -0.436 0.090%
12/31/93 1.151954 -0.51427 -0.446 0.090%
06/30/94 1.075793 -0.50039 -0.465 0.090%
12/31/94 1.072855 1000 932.092 -0.48240 -0.450 0.090%
06/30/95 1.228644 -0.48267 -0.393 -0.51648 -0.420 0.090%
12/31/95 1.318306 -0.53392 -0.405 -0.57132 -0.433 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 931.294 996.524
Account Value $1,227.73 $1,313.72
Cash Surrender Value $1,166.34 $1,261.17
Total Return 16.63% 26.12%
Annualized Return 6.07%
</TABLE>
<PAGE> 11
GOLDTRACK STANDARDIZED PERFORMANCE
Social Awareness
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
05/01/92 1.000000 1000 1000.000 0.090%
06/30/92 0.991024 -0.14728 -0.149 0.090%
12/31/92 1.090621 -0.46830 -0.429 0.090%
06/30/93 1.131907 -0.49978 -0.442 0.090%
12/31/93 1.165550 -0.51640 -0.443 0.090%
06/30/94 1.102960 -0.50967 -0.462 0.090%
12/31/94 1.128233 1000 886.342 -0.50105 -0.444 0.090%
06/30/95 1.347694 -0.49377 -0.366 -0.55576 -0.412 0.090%
12/31/95 1.496077 -0.56689 -0.379 -0.63807 -0.426 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 885.597 996.793
Account Value $1,324.92 $1,491.28
Cash Surrender Value $1,324.92 $1,491.28
Total Return 32.49% 49.13%
Annualized Return 11.51%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
05/01/92 1.000000 1000 1000.000 0.090%
06/30/92 0.990698 -0.14726 -0.149 0.090%
12/31/92 1.089165 -0.46790 -0.430 0.090%
06/30/93 1.129276 -0.49886 -0.442 0.090%
12/31/93 1.161669 -0.51494 -0.443 0.090%
06/30/94 1.098197 -0.50773 -0.462 0.090%
12/31/94 1.122236 1000 891.078 -0.49864 -0.444 0.090%
06/30/95 1.339195 -0.49350 -0.369 -0.55251 -0.413 0.090%
12/31/95 1.485163 -0.56603 -0.381 -0.63371 -0.427 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 890.328 996.790
Account Value $1,322.28 $1,480.40
Cash Surrender Value $1,256.17 $1,421.18
Total Return 25.62% 42.12%
Annualized Return 10.06%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
05/01/92 1.000000 1000 1000.000 0.090%
06/30/92 0.990454 -0.14724 -0.149 0.090%
12/31/92 1.088074 -0.46760 -0.430 0.090%
06/30/93 1.127307 -0.49817 -0.442 0.090%
12/31/93 1.158767 -0.51384 -0.443 0.090%
06/30/94 1.094639 -0.50627 -0.463 0.090%
12/31/94 1.117759 1000 894.647 -0.49683 -0.444 0.090%
06/30/95 1.332857 -0.49330 -0.370 -0.55008 -0.413 0.090%
12/31/95 1.477029 -0.56538 -0.383 -0.63046 -0.427 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 893.894 996.789
Account Value $1,320.31 $1,472.29
Cash Surrender Value $1,254.29 $1,413.39
Total Return 25.43% 41.34%
Annualized Return 9.89%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
05/01/92 1.000000 1000 1000.000 0.090%
06/30/92 0.990129 -0.14722 -0.149 0.090%
12/31/92 1.086622 -0.46720 -0.430 0.090%
06/30/93 1.124687 -0.49726 -0.442 0.090%
12/31/93 1.154909 -0.51239 -0.444 0.090%
06/30/94 1.089913 -0.50435 -0.463 0.090%
12/31/94 1.111818 1000 899.428 -0.49443 -0.445 0.090%
06/30/95 1.324452 -0.49303 -0.372 -0.54686 -0.413 0.090%
12/31/95 1.466253 -0.56453 -0.385 -0.62616 -0.427 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 898.671 996.787
Account Value $1,317.68 $1,461.54
Cash Surrender Value $1,251.80 $1,403.08
Total Return 25.18% 40.31%
Annualized Return 9.67%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
05/01/92 1.000000 1000 1000.000 0.090%
06/30/92 0.989885 -0.14720 -0.149 0.090%
12/31/92 1.085533 -0.46690 -0.430 0.090%
06/30/93 1.122726 -0.49657 -0.442 0.090%
12/31/93 1.152024 -0.51130 -0.444 0.090%
06/30/94 1.086381 -0.50290 -0.463 0.090%
12/31/94 1.107383 1000 903.030 -0.49265 -0.445 0.090%
06/30/95 1.318184 -0.49283 -0.374 -0.54446 -0.413 0.090%
12/31/95 1.458223 -0.56388 -0.387 -0.62295 -0.427 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 902.269 996.787
Account Value $1,315.71 $1,453.54
Cash Surrender Value $1,249.92 $1,395.40
Total Return 24.99% 39.54%
Annualized Return 9.51%
</TABLE>
<PAGE> 12
GOLDTRACK STANDARDIZED PERFORMANCE
Utilities Portfolio
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
02/04/94 1.000000 1000 1000.000 0.090%
06/30/94 0.986630 -0.35759 -0.362 0.090%
12/31/94 1.011441 1000 988.688 -0.44940 -0.444 0.090%
06/30/95 1.126251 -0.47554 -0.422 -0.48059 -0.427 0.090%
12/31/95 1.299919 -0.53948 -0.415 -0.54522 -0.419 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 987.851 998.348
Account Value $1,284.13 $1,297.77
Cash Surrender Value $1,284.13 $1,297.77
Total Return 28.41% 29.78%
Annualized Return 14.67%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
02/04/94 1.000000 1000 1000.000 0.090%
06/30/94 0.985841 -0.35745 -0.363 0.090%
12/31/94 1.009619 1000 990.473 -0.44882 -0.445 0.090%
06/30/95 1.123103 -0.47529 -0.423 -0.47947 -0.427 0.090%
12/31/95 1.294994 -0.53866 -0.416 -0.54340 -0.420 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 989.634 998.345
Account Value $1,281.57 $1,292.85
Cash Surrender Value $1,217.49 $1,228.21
Total Return 21.75% 22.82%
Annualized Return 11.40%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
02/04/94 1.000000 1000 1000.000 0.090%
06/30/94 0.985249 -0.35734 -0.363 0.090%
12/31/94 1.008255 1000 991.813 -0.44838 -0.445 0.090%
06/30/95 1.120747 -0.47510 -0.424 -0.47864 -0.427 0.090%
12/31/95 1.291313 -0.53804 -0.417 -0.54204 -0.420 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 990.972 998.345
Account Value $1,279.66 $1,289.18
Cash Surrender Value $1,215.67 $1,224.72
Total Return 21.57% 22.47%
Annualized Return 11.23%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
02/04/94 1.000000 1000 1000.000 0.090%
06/30/94 0.984461 -0.35720 -0.363 0.090%
12/31/94 1.006439 1000 993.602 -0.44779 -0.445 0.090%
06/30/95 1.117614 -0.47485 -0.425 -0.47753 -0.427 0.090%
12/31/95 1.286421 -0.53722 -0.418 -0.54024 -0.420 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 992.759 998.345
Account Value $1,277.11 $1,284.29
Cash Surrender Value $1,213.25 $1,220.08
Total Return 21.33% 22.01%
Annualized Return 11.01%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
02/04/94 1.000000 1000 1000.000 0.090%
06/30/94 0.983870 -0.35710 -0.363 0.090%
12/31/94 1.005079 1000 994.947 -0.44735 -0.445 0.090%
06/30/95 1.115270 -0.47467 -0.426 -0.47669 -0.427 0.090%
12/31/95 1.282764 -0.53660 -0.418 -0.53889 -0.420 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 994.103 998.345
Account Value $1,275.20 $1,280.64
Cash Surrender Value $1,211.44 $1,216.61
Total Return 21.14% 21.66%
Annualized Return 10.85%
</TABLE>
<PAGE> 13
GOLDTRACK STANDARDIZED PERFORMANCE
Templeton's Global Bond
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.016975 -0.30338 -0.298 0.090%
06/30/89 1.050889 -0.46513 -0.443 0.090%
12/31/89 1.088240 -0.48095 -0.442 0.090%
06/30/90 1.108186 -0.49361 -0.445 0.090%
12/31/90 1.150198 1000 869.416 -0.50731 -0.441 0.090%
06/30/91 1.186740 -0.45715 -0.385 -0.52472 -0.442 0.090%
12/31/91 1.324747 -0.49108 -0.371 -0.56367 -0.425 0.090%
06/30/92 1.345310 -0.52186 -0.388 -0.59900 -0.445 0.090%
12/31/92 1.388734 -0.53413 -0.385 -0.61308 -0.441 0.090%
06/30/93 1.481094 -0.56040 -0.378 -0.64324 -0.434 0.090%
12/31/93 1.538668 -0.58943 -0.383 -0.67655 -0.440 0.090%
06/30/94 1.441737 -0.58149 -0.403 -0.66744 -0.463 0.090%
12/31/94 1.454827 1000 687.367 -0.56487 -0.388 -0.64836 -0.446 0.090%
06/30/95 1.585528 -0.47021 -0.297 -0.59264 -0.374 -0.68025 -0.429 0.090%
12/31/95 1.661958 -0.50203 -0.302 -0.63274 -0.381 -0.72628 -0.437 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 686.768 865.580 993.529
Account Value $1,141.38 $1,438.56 $1,651.20
Cash Surrender Value $1,141.38 $1,438.56 $1,651.20
Total Return 14.14% 43.86% 65.12%
Annualized Return 7.54% 7.07%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.016301 -0.30327 -0.298 0.090%
06/30/89 1.049146 -0.46459 -0.443 0.090%
12/31/89 1.085353 -0.47991 -0.442 0.090%
06/30/90 1.104144 -0.49205 -0.446 0.090%
12/31/90 1.144841 1000 873.484 -0.50520 -0.441 0.090%
06/30/91 1.180055 -0.45692 -0.387 -0.52202 -0.442 0.090%
12/31/91 1.315944 -0.49033 -0.373 -0.56019 -0.426 0.090%
06/30/92 1.335039 -0.52055 -0.390 -0.59472 -0.445 0.090%
12/31/92 1.376742 -0.53226 -0.387 -0.60809 -0.442 0.090%
06/30/93 1.466850 -0.55788 -0.380 -0.63736 -0.435 0.090%
12/31/93 1.522335 -0.58619 -0.385 -0.66970 -0.440 0.090%
06/30/94 1.425018 -0.57773 -0.405 -0.66004 -0.463 0.090%
12/31/94 1.436516 1000 696.129 -0.56065 -0.390 -0.64052 -0.446 0.090%
06/30/95 1.564012 -0.46997 -0.300 -0.58761 -0.376 -0.67133 -0.429 0.090%
12/31/95 1.637772 -0.50128 -0.306 -0.62676 -0.383 -0.71605 -0.437 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 695.523 869.628 993.525
Account Value $1,139.11 $1,424.25 $1,627.17
Cash Surrender Value $1,082.15 $1,381.52 $1,594.62
Total Return 8.22% 38.15% 59.46%
Annualized Return 6.68% 6.57%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.015796 -0.30320 -0.298 0.090%
06/30/89 1.047841 -0.46418 -0.443 0.090%
12/31/89 1.083192 -0.47913 -0.442 0.090%
06/30/90 1.101122 -0.49089 -0.446 0.090%
12/31/90 1.140839 1000 876.548 -0.50362 -0.441 0.090%
06/30/91 1.175066 -0.45675 -0.389 -0.52000 -0.443 0.090%
12/31/91 1.309380 -0.48977 -0.374 -0.55760 -0.426 0.090%
06/30/92 1.327386 -0.51958 -0.391 -0.59153 -0.446 0.090%
12/31/92 1.367816 -0.53086 -0.388 -0.60437 -0.442 0.090%
06/30/93 1.456257 -0.55599 -0.382 -0.63298 -0.435 0.090%
12/31/93 1.510199 -0.58377 -0.387 -0.66461 -0.440 0.090%
06/30/94 1.412606 -0.57493 -0.407 -0.65454 -0.463 0.090%
12/31/94 1.422933 1000 702.774 -0.55750 -0.392 -0.63470 -0.446 0.090%
06/30/95 1.548067 -0.46979 -0.303 -0.58387 -0.377 -0.66472 -0.429 0.090%
12/31/95 1.619863 -0.50071 -0.309 -0.62230 -0.384 -0.70848 -0.437 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 702.162 872.677 993.523
Account Value $1,137.41 $1,413.62 $1,609.37
Cash Surrender Value $1,080.54 $1,371.21 $1,577.18
Total Return 8.05% 37.12% 57.72%
Annualized Return 6.52% 6.41%
</TABLE>
<PAGE> 14
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.015123 -0.30310 -0.299 0.090%
06/30/89 1.046103 -0.46364 -0.443 0.090%
12/31/89 1.080318 -0.47809 -0.443 0.090%
06/30/90 1.097105 -0.48934 -0.446 0.090%
12/31/90 1.135525 1000 880.650 -0.50152 -0.442 0.090%
06/30/91 1.168447 -0.45652 -0.391 -0.51732 -0.443 0.090%
12/31/91 1.300679 -0.48903 -0.376 -0.55416 -0.426 0.090%
06/30/92 1.317251 -0.51828 -0.393 -0.58730 -0.446 0.090%
12/31/92 1.356005 -0.52900 -0.390 -0.59944 -0.442 0.090%
06/30/93 1.442251 -0.55349 -0.384 -0.62720 -0.435 0.090%
12/31/93 1.494168 -0.58056 -0.389 -0.65788 -0.440 0.090%
06/30/94 1.396225 -0.57121 -0.409 -0.64728 -0.464 0.090%
12/31/94 1.405023 1000 711.732 -0.55333 -0.394 -0.62702 -0.446 0.090%
06/30/95 1.527059 -0.46954 -0.307 -0.57892 -0.379 -0.65601 -0.430 0.090%
12/31/95 1.596289 -0.49996 -0.313 -0.61642 -0.386 -0.69851 -0.438 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 711.112 876.759 993.517
Account Value $1,135.14 $1,399.56 $1,585.94
Cash Surrender Value $1,078.38 $1,354.56 $1,554.22
Total Return 7.84% 35.46% 55.42%
Annualized Return 6.26% 6.19%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.014618 -0.30302 -0.299 0.090%
06/30/89 1.044801 -0.46323 -0.443 0.090%
12/31/89 1.078167 -0.47731 -0.443 0.090%
06/30/90 1.094103 -0.48818 -0.446 0.090%
12/31/90 1.131556 1000 883.739 -0.49996 -0.442 0.090%
06/30/91 1.163507 -0.45635 -0.392 -0.51532 -0.443 0.090%
12/31/91 1.294191 -0.48848 -0.377 -0.55159 -0.426 0.090%
06/30/92 1.309701 -0.51731 -0.395 -0.58415 -0.446 0.090%
12/31/92 1.347213 -0.52761 -0.392 -0.59578 -0.442 0.090%
06/30/93 1.431835 -0.55162 -0.385 -0.62289 -0.435 0.090%
12/31/93 1.482257 -0.57817 -0.390 -0.65287 -0.440 0.090%
06/30/94 1.384063 -0.56844 -0.411 -0.64189 -0.464 0.090%
12/31/94 1.391738 1000 718.526 -0.55023 -0.395 -0.62133 -0.446 0.090%
06/30/95 1.511490 -0.46936 -0.311 -0.57523 -0.381 -0.64956 -0.430 0.090%
12/31/95 1.578833 -0.49939 -0.316 -0.61204 -0.388 -0.69112 -0.438 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 717.899 879.833 993.517
Account Value $1,133.44 $1,389.11 $1,568.60
Cash Surrender Value $1,076.77 $1,339.11 $1,537.23
Total Return 7.68% 33.91% 53.72%
Annualized Return 6.01% 6.04%
</TABLE>
<PAGE> 15
GOLDTRACK STANDARDIZED PERFORMANCE
Templeton's Global Stock
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.024959 -0.30458 -0.297 0.090%
06/30/89 1.075676 -0.47250 -0.439 0.090%
12/31/89 1.167881 -0.50443 -0.432 0.090%
06/30/90 1.190145 -0.52994 -0.445 0.090%
12/31/90 1.033052 1000 968.005 -0.49941 -0.483 0.090%
06/30/91 1.130253 -0.47117 -0.417 -0.48572 -0.430 0.090%
12/31/91 1.308946 -0.53103 -0.406 -0.54743 -0.418 0.090%
06/30/92 1.382656 -0.58574 -0.424 -0.60383 -0.437 0.090%
12/31/92 1.393170 -0.60380 -0.433 -0.62245 -0.447 0.090%
06/30/93 1.566132 -0.64342 -0.411 -0.66329 -0.424 0.090%
12/31/93 1.855612 -0.74365 -0.401 -0.76662 -0.413 0.090%
06/30/94 1.794378 -0.79293 -0.442 -0.81742 -0.456 0.090%
12/31/94 1.803868 1000 554.364 -0.78133 -0.433 -0.80546 -0.447 0.090%
06/30/95 2.052503 -0.48101 -0.234 -0.83700 -0.408 -0.86285 -0.420 0.090%
12/31/95 2.245748 -0.53590 -0.239 -0.93251 -0.415 -0.96132 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 553.891 963.815 993.584
Account Value $1,243.90 $2,164.49 $2,231.34
Cash Surrender Value $1,243.90 $2,164.49 $2,231.34
Total Return 24.39% 116.45% 123.13%
Annualized Return 16.70% 11.56%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.024279 -0.30447 -0.297 0.090%
06/30/89 1.073891 -0.47195 -0.439 0.090%
12/31/89 1.164781 -0.50333 -0.432 0.090%
06/30/90 1.185803 -0.52826 -0.445 0.090%
12/31/90 1.028238 1000 972.537 -0.49736 -0.484 0.090%
06/30/91 1.123884 -0.47093 -0.419 -0.48321 -0.430 0.090%
12/31/91 1.300246 -0.53022 -0.408 -0.54405 -0.418 0.090%
06/30/92 1.372097 -0.58427 -0.426 -0.59951 -0.437 0.090%
12/31/92 1.381138 -0.60169 -0.436 -0.61738 -0.447 0.090%
06/30/93 1.551069 -0.64051 -0.413 -0.65722 -0.424 0.090%
12/31/93 1.835915 -0.73954 -0.403 -0.75883 -0.413 0.090%
06/30/94 1.773571 -0.78780 -0.444 -0.80834 -0.456 0.090%
12/31/94 1.781164 1000 561.431 -0.77549 -0.435 -0.79572 -0.447 0.090%
06/30/95 2.024652 -0.48076 -0.237 -0.82989 -0.410 -0.85154 -0.421 0.090%
12/31/95 2.213068 -0.53509 -0.242 -0.92368 -0.417 -0.94778 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 560.952 968.326 993.582
Account Value $1,241.42 $2,142.97 $2,198.86
Cash Surrender Value $1,179.35 $2,078.68 $2,154.89
Total Return 17.94% 107.87% 115.49%
Annualized Return 15.76% 11.03%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.023770 -0.30440 -0.297 0.090%
06/30/89 1.072555 -0.47153 -0.440 0.090%
12/31/89 1.162461 -0.50251 -0.432 0.090%
06/30/90 1.182556 -0.52701 -0.446 0.090%
12/31/90 1.024643 1000 975.950 -0.49582 -0.484 0.090%
06/30/91 1.119131 -0.47075 -0.421 -0.48134 -0.430 0.090%
12/31/91 1.293758 -0.52961 -0.409 -0.54153 -0.419 0.090%
06/30/92 1.364231 -0.58317 -0.427 -0.59628 -0.437 0.090%
12/31/92 1.372182 -0.60011 -0.437 -0.61361 -0.447 0.090%
06/30/93 1.539867 -0.63834 -0.415 -0.65270 -0.424 0.090%
12/31/93 1.821280 -0.73648 -0.404 -0.75304 -0.413 0.090%
06/30/94 1.758124 -0.78397 -0.446 -0.80161 -0.456 0.090%
12/31/94 1.764323 1000 566.790 -0.77114 -0.437 -0.78849 -0.447 0.090%
06/30/95 2.004011 -0.48057 -0.240 -0.82460 -0.411 -0.84315 -0.421 0.090%
12/31/95 2.188870 -0.53448 -0.244 -0.91712 -0.419 -0.93774 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 566.306 971.724 993.579
Account Value $1,239.57 $2,126.98 $2,174.82
Cash Surrender Value $1,177.59 $2,063.17 $2,131.32
Total Return 17.76% 106.32% 113.13%
Annualized Return 15.59% 10.86%
</TABLE>
<PAGE> 16
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.023092 -0.30430 -0.297 0.090%
06/30/89 1.070775 -0.47098 -0.440 0.090%
12/31/89 1.159376 -0.50141 -0.432 0.090%
06/30/90 1.178242 -0.52535 -0.446 0.090%
12/31/90 1.019868 1000 980.519 -0.49378 -0.484 0.090%
06/30/91 1.112824 -0.47051 -0.423 -0.47885 -0.430 0.090%
12/31/91 1.285158 -0.52881 -0.411 -0.53818 -0.419 0.090%
06/30/92 1.353813 -0.58171 -0.430 -0.59202 -0.437 0.090%
12/31/92 1.360331 -0.59801 -0.440 -0.60862 -0.447 0.090%
06/30/93 1.525056 -0.63546 -0.417 -0.64672 -0.424 0.090%
12/31/93 1.801948 -0.73241 -0.406 -0.74539 -0.414 0.090%
06/30/94 1.737737 -0.77890 -0.448 -0.79271 -0.456 0.090%
12/31/94 1.742117 1000 574.014 -0.76538 -0.439 -0.77895 -0.447 0.090%
06/30/95 1.976817 -0.48031 -0.243 -0.81760 -0.414 -0.83210 -0.421 0.090%
12/31/95 2.157017 -0.53367 -0.247 -0.90843 -0.421 -0.92454 -0.429 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 573.524 976.270 993.577
Account Value $1,237.10 $2,105.83 $2,143.16
Cash Surrender Value $1,175.25 $2,042.66 $2,100.30
Total Return 17.52% 104.27% 110.03%
Annualized Return 15.36% 10.64%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.022583 -0.30422 -0.298 0.090%
06/30/89 1.069442 -0.47057 -0.440 0.090%
12/31/89 1.157067 -0.50059 -0.433 0.090%
06/30/90 1.175016 -0.52410 -0.446 0.090%
12/31/90 1.016302 1000 983.959 -0.49225 -0.484 0.090%
06/30/91 1.108118 -0.47033 -0.424 -0.47699 -0.430 0.090%
12/31/91 1.278746 -0.52820 -0.413 -0.53569 -0.419 0.090%
06/30/92 1.346052 -0.58061 -0.431 -0.58884 -0.437 0.090%
12/31/92 1.351510 -0.59645 -0.441 -0.60490 -0.448 0.090%
06/30/93 1.514041 -0.63330 -0.418 -0.64228 -0.424 0.090%
12/31/93 1.787583 -0.72937 -0.408 -0.73970 -0.414 0.090%
06/30/94 1.722601 -0.77512 -0.450 -0.78610 -0.456 0.090%
12/31/94 1.725645 1000 579.493 -0.76109 -0.441 -0.77188 -0.447 0.090%
06/30/95 1.956664 -0.48012 -0.245 -0.81239 -0.415 -0.82390 -0.421 0.090%
12/31/95 2.133431 -0.53307 -0.250 -0.90197 -0.423 -0.91475 -0.429 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 578.998 979.695 993.574
Account Value $1,235.25 $2,090.11 $2,119.72
Cash Surrender Value $1,173.49 $2,027.41 $2,077.33
Total Return 17.35% 102.74% 107.73%
Annualized Return 15.18% 10.48%
</TABLE>
<PAGE> 17
GOLDTRACK STANDARDIZED PERFORMANCE
Templeton's Global Asset Allocation
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.025957 -0.30473 -0.297 0.090%
06/30/89 1.066724 -0.47071 -0.441 0.090%
12/31/89 1.154983 -0.49952 -0.432 0.090%
06/30/90 1.178495 -0.52442 -0.445 0.090%
12/31/90 1.056410 1000 946.602 -0.50204 -0.475 0.090%
06/30/91 1.155073 -0.47101 -0.408 -0.49654 -0.430 0.090%
12/31/91 1.340874 -0.53137 -0.396 -0.56017 -0.418 0.090%
06/30/92 1.432457 -0.59018 -0.412 -0.62217 -0.434 0.090%
12/31/92 1.439728 -0.61095 -0.424 -0.64406 -0.447 0.090%
06/30/93 1.588383 -0.64383 -0.405 -0.67872 -0.427 0.090%
12/31/93 1.804942 -0.72117 -0.400 -0.76026 -0.421 0.090%
06/30/94 1.716132 -0.74800 -0.436 -0.78854 -0.459 0.090%
12/31/94 1.740934 1000 574.404 -0.73406 -0.422 -0.77385 -0.445 0.090%
06/30/95 1.943069 -0.47612 -0.245 -0.78190 -0.402 -0.82428 -0.424 0.090%
12/31/95 2.120738 -0.52499 -0.248 -0.86214 -0.407 -0.90888 -0.429 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 573.911 942.490 993.576
Account Value $1,217.11 $1,998.77 $2,107.11
Cash Surrender Value $1,217.11 $1,998.77 $2,107.11
Total Return 21.71% 99.88% 110.71%
Annualized Return 14.86% 10.69%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.025277 -0.30462 -0.297 0.090%
06/30/89 1.064954 -0.47016 -0.441 0.090%
12/31/89 1.151918 -0.49843 -0.433 0.090%
06/30/90 1.174196 -0.52276 -0.445 0.090%
12/31/90 1.051489 1000 951.032 -0.49997 -0.475 0.090%
06/30/91 1.148565 -0.47077 -0.410 -0.49398 -0.430 0.090%
12/31/91 1.331964 -0.53056 -0.398 -0.55671 -0.418 0.090%
06/30/92 1.421521 -0.58870 -0.414 -0.61771 -0.435 0.090%
12/31/92 1.427296 -0.60881 -0.427 -0.63882 -0.448 0.090%
06/30/93 1.573108 -0.64092 -0.407 -0.67251 -0.428 0.090%
12/31/93 1.785785 -0.71719 -0.402 -0.75254 -0.421 0.090%
06/30/94 1.696234 -0.74316 -0.438 -0.77979 -0.460 0.090%
12/31/94 1.719024 1000 581.725 -0.72858 -0.424 -0.76449 -0.445 0.090%
06/30/95 1.916704 -0.47587 -0.248 -0.77527 -0.404 -0.81348 -0.424 0.090%
12/31/95 2.089879 -0.52419 -0.251 -0.85398 -0.409 -0.89607 -0.429 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 581.226 946.899 993.571
Account Value $1,214.69 $1,978.90 $2,076.44
Cash Surrender Value $1,153.96 $1,919.54 $2,034.91
Total Return 15.40% 91.95% 103.49%
Annualized Return 13.93% 10.17%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.024767 -0.30455 -0.297 0.090%
06/30/89 1.063629 -0.46975 -0.442 0.090%
12/31/89 1.149625 -0.49761 -0.433 0.090%
06/30/90 1.170981 -0.52152 -0.445 0.090%
12/31/90 1.047814 1000 954.368 -0.49842 -0.476 0.090%
06/30/91 1.143709 -0.47059 -0.411 -0.49206 -0.430 0.090%
12/31/91 1.325319 -0.52995 -0.400 -0.55413 -0.418 0.090%
06/30/92 1.413373 -0.58759 -0.416 -0.61439 -0.435 0.090%
12/31/92 1.418042 -0.60722 -0.428 -0.63492 -0.448 0.090%
06/30/93 1.561748 -0.63875 -0.409 -0.66789 -0.428 0.090%
12/31/93 1.771551 -0.71422 -0.403 -0.74680 -0.422 0.090%
06/30/94 1.681461 -0.73956 -0.440 -0.77330 -0.460 0.090%
12/31/94 1.702772 1000 587.278 -0.72449 -0.425 -0.75754 -0.445 0.090%
06/30/95 1.897165 -0.47569 -0.251 -0.77033 -0.406 -0.80547 -0.425 0.090%
12/31/95 2.067029 -0.52360 -0.253 -0.84791 -0.410 -0.88659 -0.429 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 586.774 950.220 993.567
Account Value $1,212.88 $1,964.13 $2,053.73
Cash Surrender Value $1,152.23 $1,905.21 $2,012.66
Total Return 15.22% 90.52% 101.27%
Annualized Return 13.76% 10.00%
</TABLE>
<PAGE> 18
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.024088 -0.30445 -0.297 0.090%
06/30/89 1.061864 -0.46920 -0.442 0.090%
12/31/89 1.146574 -0.49653 -0.433 0.090%
06/30/90 1.166709 -0.51988 -0.446 0.090%
12/31/90 1.042933 1000 958.834 -0.49637 -0.476 0.090%
06/30/91 1.137266 -0.47035 -0.414 -0.48952 -0.430 0.090%
12/31/91 1.316512 -0.52914 -0.402 -0.55071 -0.418 0.090%
06/30/92 1.402582 -0.58611 -0.418 -0.61000 -0.435 0.090%
12/31/92 1.405797 -0.60509 -0.430 -0.62975 -0.448 0.090%
06/30/93 1.546729 -0.63587 -0.411 -0.66178 -0.428 0.090%
12/31/93 1.752748 -0.71028 -0.405 -0.73922 -0.422 0.090%
06/30/94 1.661965 -0.73478 -0.442 -0.76472 -0.460 0.090%
12/31/94 1.681342 1000 594.763 -0.71908 -0.428 -0.74838 -0.445 0.090%
06/30/95 1.871423 -0.47544 -0.254 -0.76379 -0.408 -0.79491 -0.425 0.090%
12/31/95 2.036950 -0.52280 -0.257 -0.83988 -0.412 -0.87410 -0.429 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 594.252 954.664 993.566
Account Value $1,210.46 $1,944.60 $2,023.84
Cash Surrender Value $1,149.94 $1,886.26 $1,983.37
Total Return 14.99% 88.63% 98.34%
Annualized Return 13.53% 9.78%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000 0.090%
12/31/88 1.023579 -0.30437 -0.297 0.090%
06/30/89 1.060543 -0.46879 -0.442 0.090%
12/31/89 1.144291 -0.49572 -0.433 0.090%
06/30/90 1.163516 -0.51865 -0.446 0.090%
12/31/90 1.039287 1000 962.198 -0.49483 -0.476 0.090%
06/30/91 1.132457 -0.47017 -0.415 -0.48762 -0.431 0.090%
12/31/91 1.309945 -0.52854 -0.403 -0.54815 -0.418 0.090%
06/30/92 1.394543 -0.58501 -0.419 -0.60672 -0.435 0.090%
12/31/92 1.396683 -0.60351 -0.432 -0.62590 -0.448 0.090%
06/30/93 1.535560 -0.63371 -0.413 -0.65723 -0.428 0.090%
12/31/93 1.738777 -0.70734 -0.407 -0.73359 -0.422 0.090%
06/30/94 1.647490 -0.73121 -0.444 -0.75835 -0.460 0.090%
12/31/94 1.665446 1000 600.440 -0.71505 -0.429 -0.74158 -0.445 0.090%
06/30/95 1.852345 -0.47525 -0.257 -0.75892 -0.410 -0.78709 -0.425 0.090%
12/31/95 2.014679 -0.52221 -0.259 -0.83391 -0.414 -0.86485 -0.429 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 599.924 958.012 993.565
Account Value $1,208.65 $1,930.09 $2,001.71
Cash Surrender Value $1,148.22 $1,872.18 $1,961.68
Total Return 14.82% 87.22% 96.17%
Annualized Return 13.36% 9.62%
</TABLE>
<PAGE> 19
GOLDTRACK STANDARDIZED PERFORMANCE
Fidelity's High Income
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.061982 1000 941.636 0.090%
06/30/86 1.187176 -0.47652 -0.401 0.090%
12/31/86 1.242267 -0.51450 -0.414 0.090%
06/30/87 1.292103 -0.53649 -0.415 0.090%
12/31/87 1.249852 -0.53786 -0.430 0.090%
06/30/88 1.352142 -0.55031 -0.407 0.090%
12/31/88 1.387010 -0.57907 -0.417 0.090%
06/30/89 1.455413 -0.60063 -0.413 0.090%
12/31/89 1.321193 -0.58646 -0.444 0.090%
06/30/90 1.304723 -0.55437 -0.425 0.090%
12/31/90 1.283917 1000 778.867 -0.54626 -0.425 0.090%
06/30/91 1.533646 -0.49376 -0.322 -0.59429 -0.388 0.090%
12/31/91 1.723926 -0.57064 -0.331 -0.68682 -0.398 0.090%
06/30/92 1.996216 -0.65139 -0.326 -0.78401 -0.393 0.090%
12/31/92 2.108770 -0.71847 -0.341 -0.86476 -0.410 0.090%
06/30/93 2.356238 -0.78114 -0.332 -0.94019 -0.399 0.090%
12/31/93 2.526091 -0.85379 -0.338 -1.02762 -0.407 0.090%
06/30/94 2.481932 -0.87539 -0.353 -1.05362 -0.425 0.090%
12/31/94 2.472188 1000 404.500 -0.86557 -0.350 -1.04180 -0.421 0.090%
06/30/95 2.760499 -0.47624 -0.173 -0.91383 -0.331 -1.09989 -0.398 0.090%
12/31/95 2.963849 -0.52076 -0.176 -0.99927 -0.337 -1.20272 -0.406 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 404.151 775.506 933.400
Account Value $1,197.84 $2,298.48 $2,766.46
Cash Surrender Value $1,197.84 $2,298.48 $2,766.46
Total Return 19.78% 129.85% 176.65%
Annualized Return 18.11% 10.71%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.061383 1000 942.167 0.090%
06/30/86 1.185332 -0.47628 -0.402 0.090%
12/31/86 1.239088 -0.51373 -0.415 0.090%
06/30/87 1.287518 -0.53514 -0.416 0.090%
12/31/87 1.244161 -0.53598 -0.431 0.090%
06/30/88 1.344645 -0.54783 -0.407 0.090%
12/31/88 1.377937 -0.57588 -0.418 0.090%
06/30/89 1.444452 -0.59673 -0.413 0.090%
12/31/89 1.309935 -0.58210 -0.444 0.090%
06/30/90 1.292315 -0.54969 -0.425 0.090%
12/31/90 1.270419 1000 787.142 -0.54109 -0.426 0.090%
06/30/91 1.516037 -0.49350 -0.326 -0.58806 -0.388 0.090%
12/31/91 1.702398 -0.56977 -0.335 -0.67895 -0.399 0.090%
06/30/92 1.969325 -0.64974 -0.330 -0.77424 -0.393 0.090%
12/31/92 2.078268 -0.71595 -0.344 -0.85314 -0.411 0.090%
06/30/93 2.319856 -0.77762 -0.335 -0.92662 -0.399 0.090%
12/31/93 2.484582 -0.84909 -0.342 -1.01179 -0.407 0.090%
06/30/94 2.438728 -0.86972 -0.357 -1.03638 -0.425 0.090%
12/31/94 2.426719 1000 412.079 -0.85911 -0.354 -1.02373 -0.422 0.090%
06/30/95 2.707029 -0.47599 -0.176 -0.90608 -0.335 -1.07970 -0.399 0.090%
12/31/95 2.903545 -0.51998 -0.179 -0.98981 -0.341 -1.17947 -0.406 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 411.724 783.743 933.921
Account Value $1,195.46 $2,275.63 $2,711.68
Cash Surrender Value $1,135.69 $2,207.36 $2,711.68
Total Return 13.57% 120.74% 171.17%
Annualized Return 17.16% 10.49%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.060935 1000 942.565 0.090%
06/30/86 1.183951 -0.47609 -0.402 0.090%
12/31/86 1.236709 -0.51315 -0.415 0.090%
06/30/87 1.284090 -0.53414 -0.416 0.090%
12/31/87 1.239911 -0.53458 -0.431 0.090%
06/30/88 1.339050 -0.54597 -0.408 0.090%
12/31/88 1.371172 -0.57351 -0.418 0.090%
06/30/89 1.436286 -0.59382 -0.413 0.090%
12/31/89 1.301555 -0.57885 -0.445 0.090%
06/30/90 1.283087 -0.54620 -0.426 0.090%
12/31/90 1.260388 1000 793.406 -0.53725 -0.426 0.090%
06/30/91 1.502962 -0.49330 -0.328 -0.58343 -0.388 0.090%
12/31/91 1.686428 -0.56912 -0.337 -0.67310 -0.399 0.090%
06/30/92 1.949395 -0.64851 -0.333 -0.76700 -0.393 0.090%
12/31/92 2.055681 -0.71407 -0.347 -0.84454 -0.411 0.090%
06/30/93 2.292939 -0.77498 -0.338 -0.91658 -0.400 0.090%
12/31/93 2.453898 -0.84559 -0.345 -1.00008 -0.408 0.090%
06/30/94 2.406818 -0.86550 -0.360 -1.02363 -0.425 0.090%
12/31/94 2.393167 1000 417.856 -0.85430 -0.357 -1.01038 -0.422 0.090%
06/30/95 2.667607 -0.47580 -0.178 -0.90031 -0.337 -1.06480 -0.399 0.090%
12/31/95 2.859123 -0.51939 -0.182 -0.98278 -0.344 -1.16234 -0.407 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 417.496 789.980 934.313
Account Value $1,193.67 $2,258.65 $2,671.32
Cash Surrender Value $1,133.99 $2,190.89 $2,671.32
Total Return 13.40% 119.09% 167.13%
Annualized Return 16.98% 10.32%
</TABLE>
<PAGE> 20
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.060336 1000 943.097 0.090%
06/30/86 1.182111 -0.47584 -0.403 0.090%
12/31/86 1.233543 -0.51238 -0.415 0.090%
06/30/87 1.279534 -0.53280 -0.416 0.090%
12/31/87 1.234266 -0.53272 -0.432 0.090%
06/30/88 1.331626 -0.54351 -0.408 0.090%
12/31/88 1.362203 -0.57036 -0.419 0.090%
06/30/89 1.425469 -0.58997 -0.414 0.090%
12/31/89 1.290464 -0.57454 -0.445 0.090%
06/30/90 1.270885 -0.54158 -0.426 0.090%
12/31/90 1.247137 1000 801.837 -0.53218 -0.427 0.090%
06/30/91 1.485705 -0.49304 -0.332 -0.57731 -0.389 0.090%
12/31/91 1.665368 -0.56826 -0.341 -0.66539 -0.400 0.090%
06/30/92 1.923134 -0.64687 -0.336 -0.75744 -0.394 0.090%
12/31/92 2.025946 -0.71157 -0.351 -0.83319 -0.411 0.090%
06/30/93 2.257534 -0.77149 -0.342 -0.90335 -0.400 0.090%
12/31/93 2.413574 -0.84094 -0.348 -0.98468 -0.408 0.090%
06/30/94 2.364921 -0.85990 -0.364 -1.00688 -0.426 0.090%
12/31/94 2.349150 1000 425.686 -0.84792 -0.361 -0.99285 -0.423 0.090%
06/30/95 2.615935 -0.47555 -0.182 -0.89267 -0.341 -1.04525 -0.400 0.090%
12/31/95 2.800948 -0.51860 -0.185 -0.97348 -0.348 -1.13987 -0.407 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 425.319 798.373 934.834
Account Value $1,191.30 $2,236.20 $2,618.42
Cash Surrender Value $1,131.73 $2,169.12 $2,618.42
Total Return 13.17% 116.91% 161.84%
Annualized Return 16.75% 10.10%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.059888 1000 943.496 0.090%
06/30/86 1.180734 -0.47565 -0.403 0.090%
12/31/86 1.231175 -0.51180 -0.416 0.090%
06/30/87 1.276128 -0.53180 -0.417 0.090%
12/31/87 1.230049 -0.53133 -0.432 0.090%
06/30/88 1.326084 -0.54167 -0.408 0.090%
12/31/88 1.355515 -0.56801 -0.419 0.090%
06/30/89 1.417410 -0.58710 -0.414 0.090%
12/31/89 1.282207 -0.57133 -0.446 0.090%
06/30/90 1.261809 -0.53814 -0.426 0.090%
12/31/90 1.237290 1000 808.218 -0.52840 -0.427 0.090%
06/30/91 1.472892 -0.49284 -0.335 -0.57277 -0.389 0.090%
12/31/91 1.649745 -0.56761 -0.344 -0.65966 -0.400 0.090%
06/30/92 1.903671 -0.64564 -0.339 -0.75035 -0.394 0.090%
12/31/92 2.003927 -0.70970 -0.354 -0.82479 -0.412 0.090%
06/30/93 2.231339 -0.76887 -0.345 -0.89356 -0.400 0.090%
12/31/93 2.383767 -0.83747 -0.351 -0.97328 -0.408 0.090%
06/30/94 2.333977 -0.85572 -0.367 -0.99450 -0.426 0.090%
12/31/94 2.316669 1000 431.654 -0.84317 -0.364 -0.97991 -0.423 0.090%
06/30/95 2.577839 -0.47537 -0.184 -0.88698 -0.344 -1.03082 -0.400 0.090%
12/31/95 2.758095 -0.51802 -0.188 -0.96656 -0.350 -1.12331 -0.407 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Ten-Year
<S> <C> <C> <C>
Ending units 431.282 804.725 935.229
Account Value $1,189.52 $2,219.51 $2,579.45
Cash Surrender Value $1,130.04 $2,152.92 $2,579.45
Total Return 13.00% 115.29% 157.95%
Annualized Return 16.58% 9.94%
</TABLE>
<PAGE> 21
GOLDTRACK STANDARDIZED PERFORMANCE
Fidelity's Equity Income
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000 0.090%
12/31/86 1.000633 -0.20472 -0.205 0.090%
06/30/87 1.168774 -0.48802 -0.418 0.090%
12/31/87 0.983371 -0.48393 -0.492 0.090%
06/30/88 1.179194 -0.48603 -0.412 0.090%
12/31/88 1.199489 -0.53439 -0.446 0.090%
06/30/89 1.381218 -0.57951 -0.420 0.090%
12/31/89 1.399135 -0.62408 -0.446 0.090%
06/30/90 1.335447 -0.61353 -0.459 0.090%
12/31/90 1.178124 1000 848.807 -0.56369 -0.478 0.090%
06/30/91 1.372627 -0.48715 -0.355 -0.57175 -0.417 0.090%
12/31/91 1.539304 -0.55589 -0.361 -0.65244 -0.424 0.090%
06/30/92 1.634591 -0.60564 -0.371 -0.71083 -0.435 0.090%
12/31/92 1.788521 -0.65291 -0.365 -0.76631 -0.428 0.090%
06/30/93 1.983510 -0.71916 -0.363 -0.84406 -0.426 0.090%
12/31/93 2.102667 -0.77872 -0.370 -0.91396 -0.435 0.090%
06/30/94 2.120540 -0.80448 -0.379 -0.94420 -0.445 0.090%
12/31/94 2.237798 1000 446.868 -0.82985 -0.371 -0.97397 -0.435 0.090%
06/30/95 2.613614 -0.48779 -0.187 -0.92333 -0.353 -1.08369 -0.415 0.090%
12/31/95 3.004950 -0.56468 -0.188 -1.06889 -0.356 -1.25452 -0.417 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 446.493 845.163 991.947
Account Value $1,341.69 $2,539.67 $2,980.75
Cash Surrender Value $1,341.69 $2,539.67 $2,980.75
Total Return 34.17% 153.97% 198.08%
Annualized Return 20.49% 12.56%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000 0.090%
12/31/86 1.000178 -0.20468 -0.205 0.090%
06/30/87 1.167086 -0.48753 -0.418 0.090%
12/31/87 0.980956 -0.48301 -0.492 0.090%
06/30/88 1.175129 -0.48458 -0.412 0.090%
12/31/88 1.194157 -0.53228 -0.446 0.090%
06/30/89 1.373708 -0.57663 -0.420 0.090%
12/31/89 1.390141 -0.62038 -0.446 0.090%
06/30/90 1.325539 -0.60929 -0.460 0.090%
12/31/90 1.168198 1000 856.019 -0.55924 -0.479 0.090%
06/30/91 1.359729 -0.48689 -0.358 -0.56663 -0.417 0.090%
12/31/91 1.523287 -0.55505 -0.364 -0.64596 -0.424 0.090%
06/30/92 1.615972 -0.60412 -0.374 -0.70307 -0.435 0.090%
12/31/92 1.766367 -0.65062 -0.368 -0.75718 -0.429 0.090%
06/30/93 1.957002 -0.71591 -0.366 -0.83316 -0.426 0.090%
12/31/93 2.072477 -0.77444 -0.374 -0.90128 -0.435 0.090%
06/30/94 2.088021 -0.79927 -0.383 -0.93017 -0.445 0.090%
12/31/94 2.201274 1000 454.282 -0.82364 -0.374 -0.95854 -0.435 0.090%
06/30/95 2.568397 -0.48752 -0.190 -0.91548 -0.356 -1.06542 -0.415 0.090%
12/31/95 2.950023 -0.56382 -0.191 -1.05875 -0.359 -1.23216 -0.418 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 453.901 852.343 991.943
Account Value $1,339.02 $2,514.43 $2,926.25
Cash Surrender Value $1,272.07 $2,439.00 $2,926.25
Total Return 27.21% 143.90% 192.63%
Annualized Return 19.52% 12.33%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000 0.090%
12/31/86 0.999837 -0.20464 -0.205 0.090%
06/30/87 1.165822 -0.48717 -0.418 0.090%
12/31/87 0.979149 -0.48232 -0.493 0.090%
06/30/88 1.172089 -0.48349 -0.413 0.090%
12/31/88 1.190173 -0.53070 -0.446 0.090%
06/30/89 1.368102 -0.57448 -0.420 0.090%
12/31/89 1.383433 -0.61761 -0.446 0.090%
06/30/90 1.318156 -0.60613 -0.460 0.090%
12/31/90 1.160808 1000 861.469 -0.55593 -0.479 0.090%
06/30/91 1.350135 -0.48670 -0.360 -0.56283 -0.417 0.090%
12/31/91 1.511385 -0.55442 -0.367 -0.64114 -0.424 0.090%
06/30/92 1.602147 -0.60299 -0.376 -0.69731 -0.435 0.090%
12/31/92 1.749932 -0.64890 -0.371 -0.75040 -0.429 0.090%
06/30/93 1.937353 -0.71349 -0.368 -0.82509 -0.426 0.090%
12/31/93 2.050119 -0.77124 -0.376 -0.89188 -0.435 0.090%
06/30/94 2.063960 -0.79538 -0.385 -0.91979 -0.446 0.090%
12/31/94 2.174273 1000 459.924 -0.81902 -0.377 -0.94713 -0.436 0.090%
06/30/95 2.534998 -0.48733 -0.192 -0.90964 -0.359 -1.05193 -0.415 0.090%
12/31/95 2.909486 -0.56318 -0.194 -1.05122 -0.361 -1.21565 -0.418 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 459.538 857.769 991.939
Account Value $1,337.02 $2,495.67 $2,886.03
Cash Surrender Value $1,270.17 $2,420.80 $2,886.03
Total Return 27.02% 142.08% 188.60%
Annualized Return 19.34% 12.16%
</TABLE>
<PAGE> 22
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000 0.090%
12/31/86 0.999382 -0.20459 -0.205 0.090%
06/30/87 1.164138 -0.48669 -0.418 0.090%
12/31/87 0.976744 -0.48140 -0.493 0.090%
06/30/88 1.168048 -0.48204 -0.413 0.090%
12/31/88 1.184882 -0.52860 -0.446 0.090%
06/30/89 1.360663 -0.57162 -0.420 0.090%
12/31/89 1.374539 -0.61395 -0.447 0.090%
06/30/90 1.308376 -0.60194 -0.460 0.090%
12/31/90 1.151028 1000 868.789 -0.55154 -0.479 0.090%
06/30/91 1.337448 -0.48644 -0.364 -0.55779 -0.417 0.090%
12/31/91 1.495659 -0.55358 -0.370 -0.63477 -0.424 0.090%
06/30/92 1.583897 -0.60148 -0.380 -0.68970 -0.435 0.090%
12/31/92 1.728257 -0.64662 -0.374 -0.74147 -0.429 0.090%
06/30/93 1.911461 -0.71026 -0.372 -0.81444 -0.426 0.090%
12/31/93 2.020683 -0.76700 -0.380 -0.87950 -0.435 0.090%
06/30/94 2.032308 -0.79023 -0.389 -0.90613 -0.446 0.090%
12/31/94 2.138785 1000 467.555 -0.81289 -0.380 -0.93212 -0.436 0.090%
06/30/95 2.491140 -0.48707 -0.196 -0.90191 -0.362 -1.03420 -0.415 0.090%
12/31/95 2.856303 -0.56231 -0.197 -1.04125 -0.365 -1.19398 -0.418 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 467.162 865.053 991.938
Account Value $1,334.36 $2,470.85 $2,833.28
Cash Surrender Value $1,267.64 $2,396.73 $2,833.28
Total Return 26.76% 139.67% 183.33%
Annualized Return 19.10% 11.94%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000 0.090%
12/31/86 0.999041 -0.20456 -0.205 0.090%
06/30/87 1.162877 -0.48633 -0.418 0.090%
12/31/87 0.974945 -0.48071 -0.493 0.090%
06/30/88 1.165026 -0.48096 -0.413 0.090%
12/31/88 1.180929 -0.52703 -0.446 0.090%
06/30/89 1.355111 -0.56948 -0.420 0.090%
12/31/89 1.367907 -0.61121 -0.447 0.090%
06/30/90 1.301089 -0.59882 -0.460 0.090%
12/31/90 1.143747 1000 874.319 -0.54827 -0.479 0.090%
06/30/91 1.328011 -0.48625 -0.366 -0.55404 -0.417 0.090%
12/31/91 1.483972 -0.55295 -0.373 -0.63004 -0.425 0.090%
06/30/92 1.570346 -0.60034 -0.382 -0.68404 -0.436 0.090%
12/31/92 1.712176 -0.64492 -0.377 -0.73483 -0.429 0.090%
06/30/93 1.892269 -0.70786 -0.374 -0.80655 -0.426 0.090%
12/31/93 1.998883 -0.76384 -0.382 -0.87033 -0.435 0.090%
06/30/94 2.008888 -0.78638 -0.391 -0.89602 -0.446 0.090%
12/31/94 2.112550 1000 473.362 -0.80832 -0.383 -0.92102 -0.436 0.090%
06/30/95 2.458745 -0.48687 -0.198 -0.89616 -0.364 -1.02110 -0.415 0.090%
12/31/95 2.817053 -0.56167 -0.199 -1.03384 -0.367 -1.17798 -0.418 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 472.965 870.560 991.936
Account Value $1,332.37 $2,452.41 $2,794.34
Cash Surrender Value $1,265.75 $2,378.84 $2,794.34
Total Return 26.57% 137.88% 179.43%
Annualized Return 18.92% 11.77%
</TABLE>
<PAGE> 23
GOLDTRACK STANDARDIZED PERFORMANCE
Fidelity's Growth Portfolio
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000 0.090%
12/31/86 1.001632 -0.20482 -0.204 0.090%
06/30/87 1.221760 -0.50016 -0.409 0.090%
12/31/87 1.032113 -0.50681 -0.491 0.090%
06/30/88 1.187347 -0.49883 -0.420 0.090%
12/31/88 1.185805 -0.53315 -0.450 0.090%
06/30/89 1.375587 -0.57518 -0.418 0.090%
12/31/89 1.550295 -0.65675 -0.424 0.090%
06/30/90 1.605235 -0.70799 -0.441 0.090%
12/31/90 1.360146 1000 735.215 -0.66504 -0.489 0.090%
06/30/91 1.555470 -0.48231 -0.310 -0.65356 -0.420 0.090%
12/31/91 1.967371 -0.58251 -0.296 -0.78934 -0.401 0.090%
06/30/92 1.827122 -0.62718 -0.343 -0.84986 -0.465 0.090%
12/31/92 2.139026 -0.65525 -0.306 -0.88789 -0.415 0.090%
06/30/93 2.379073 -0.74612 -0.314 -1.01104 -0.425 0.090%
12/31/93 2.537810 -0.81163 -0.320 -1.09980 -0.433 0.090%
06/30/94 2.285975 -0.79592 -0.348 -1.07851 -0.472 0.090%
12/31/94 2.522094 1000 396.496 -0.79295 -0.314 -1.07448 -0.426 0.090%
06/30/95 3.112452 -0.50267 -0.162 -0.92885 -0.298 -1.25864 -0.404 0.090%
12/31/95 3.393814 -0.58020 -0.171 -1.07212 -0.316 -1.45277 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 396.163 732.050 991.965
Account Value $1,344.50 $2,484.44 $3,366.54
Cash Surrender Value $1,344.50 $2,484.44 $3,366.54
Total Return 34.45% 148.44% 236.65%
Annualized Return 19.96% 14.05%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000 0.090%
12/31/86 1.001176 -0.20478 -0.205 0.090%
06/30/87 1.219996 -0.49966 -0.410 0.090%
12/31/87 1.029579 -0.50584 -0.491 0.090%
06/30/88 1.183254 -0.49734 -0.420 0.090%
12/31/88 1.180532 -0.53104 -0.450 0.090%
06/30/89 1.368106 -0.57231 -0.418 0.090%
12/31/89 1.540329 -0.65283 -0.424 0.090%
06/30/90 1.593326 -0.70309 -0.441 0.090%
12/31/90 1.348686 1000 741.462 -0.65980 -0.489 0.090%
06/30/91 1.540852 -0.48206 -0.313 -0.64771 -0.420 0.090%
12/31/91 1.946902 -0.58161 -0.299 -0.78147 -0.401 0.090%
06/30/92 1.806307 -0.62563 -0.346 -0.84061 -0.465 0.090%
12/31/92 2.112529 -0.65293 -0.309 -0.87730 -0.415 0.090%
06/30/93 2.347275 -0.74275 -0.316 -0.99799 -0.425 0.090%
12/31/93 2.501368 -0.80717 -0.323 -1.08454 -0.434 0.090%
06/30/94 2.250913 -0.79078 -0.351 -1.06252 -0.472 0.090%
12/31/94 2.480924 1000 403.076 -0.78700 -0.317 -1.05744 -0.426 0.090%
06/30/95 3.058597 -0.50239 -0.164 -0.92094 -0.301 -1.23741 -0.405 0.090%
12/31/95 3.331767 -0.57932 -0.174 -1.06196 -0.319 -1.42689 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 402.738 738.268 991.961
Account Value $1,341.83 $2,459.74 $3,304.98
Cash Surrender Value $1,274.74 $2,385.94 $3,304.98
Total Return 27.47% 138.59% 230.50%
Annualized Return 19.00% 13.82%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000 0.090%
12/31/86 1.000835 -0.20474 -0.205 0.090%
06/30/87 1.218675 -0.49929 -0.410 0.090%
12/31/87 1.027682 -0.50512 -0.492 0.090%
06/30/88 1.180193 -0.49622 -0.420 0.090%
12/31/88 1.176593 -0.52947 -0.450 0.090%
06/30/89 1.362522 -0.57017 -0.418 0.090%
12/31/89 1.532896 -0.64991 -0.424 0.090%
06/30/90 1.584451 -0.69943 -0.441 0.090%
12/31/90 1.340155 1000 746.182 -0.65589 -0.489 0.090%
06/30/91 1.529979 -0.48187 -0.315 -0.64336 -0.421 0.090%
12/31/91 1.931689 -0.58094 -0.301 -0.77563 -0.402 0.090%
06/30/92 1.790851 -0.62446 -0.349 -0.83374 -0.466 0.090%
12/31/92 2.092872 -0.65120 -0.311 -0.86944 -0.415 0.090%
06/30/93 2.323705 -0.74024 -0.319 -0.98831 -0.425 0.090%
12/31/93 2.474379 -0.80383 -0.325 -1.07322 -0.434 0.090%
06/30/94 2.224970 -0.78695 -0.354 -1.05068 -0.472 0.090%
12/31/94 2.450488 1000 408.082 -0.78257 -0.319 -1.04484 -0.426 0.090%
06/30/95 3.018817 -0.50218 -0.166 -0.91506 -0.303 -1.22172 -0.405 0.090%
12/31/95 3.285977 -0.57866 -0.176 -1.05441 -0.321 -1.40778 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 407.74 742.965 991.957
Account Value $1,339.82 $2,441.37 $3,259.55
Cash Surrender Value $1,272.83 $2,368.12 $3,259.55
Total Return 27.28% 136.81% 225.95%
Annualized Return 18.82% 13.65%
</TABLE>
<PAGE> 24
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000 0.090%
12/31/86 1.000380 -0.20470 -0.205 0.090%
06/30/87 1.216915 -0.49879 -0.410 0.090%
12/31/87 1.025159 -0.50416 -0.492 0.090%
06/30/88 1.176124 -0.49474 -0.421 0.090%
12/31/88 1.171361 -0.52738 -0.450 0.090%
06/30/89 1.355112 -0.56733 -0.419 0.090%
12/31/89 1.523041 -0.64603 -0.424 0.090%
06/30/90 1.572696 -0.69458 -0.442 0.090%
12/31/90 1.328863 1000 752.523 -0.65072 -0.490 0.090%
06/30/91 1.515601 -0.48162 -0.318 -0.63760 -0.421 0.090%
12/31/91 1.911590 -0.58004 -0.303 -0.76790 -0.402 0.090%
06/30/92 1.770449 -0.62292 -0.352 -0.82467 -0.466 0.090%
12/31/92 2.066947 -0.64890 -0.314 -0.85906 -0.416 0.090%
06/30/93 2.292646 -0.73689 -0.321 -0.97555 -0.426 0.090%
12/31/93 2.438847 -0.79941 -0.328 -1.05832 -0.434 0.090%
06/30/94 2.190843 -0.78187 -0.357 -1.03510 -0.472 0.090%
12/31/94 2.410486 1000 414.854 -0.77671 -0.322 -1.02827 -0.427 0.090%
06/30/95 2.966581 -0.50191 -0.169 -0.90727 -0.306 -1.20111 -0.405 0.090%
12/31/95 3.225901 -0.57778 -0.179 -1.04443 -0.324 -1.38269 -0.429 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 414.506 749.278 991.949
Account Value $1,337.16 $2,417.10 $3,199.93
Cash Surrender Value $1,270.30 $2,344.58 $3,199.93
Total Return 27.03% 134.46% 219.99%
Annualized Return 18.58% 13.43%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000 0.090%
12/31/86 1.000039 -0.20466 -0.205 0.090%
06/30/87 1.215597 -0.49842 -0.410 0.090%
12/31/87 1.023271 -0.50344 -0.492 0.090%
06/30/88 1.173081 -0.49363 -0.421 0.090%
12/31/88 1.167453 -0.52582 -0.450 0.090%
06/30/89 1.349581 -0.56521 -0.419 0.090%
12/31/89 1.515691 -0.64314 -0.424 0.090%
06/30/90 1.563936 -0.69096 -0.442 0.090%
12/31/90 1.320457 1000 757.314 -0.64687 -0.490 0.090%
06/30/91 1.504906 -0.48143 -0.320 -0.63332 -0.421 0.090%
12/31/91 1.896653 -0.57937 -0.305 -0.76216 -0.402 0.090%
06/30/92 1.755300 -0.62176 -0.354 -0.81793 -0.466 0.090%
12/31/92 2.047714 -0.64718 -0.316 -0.85136 -0.416 0.090%
06/30/93 2.269624 -0.73440 -0.324 -0.96610 -0.426 0.090%
12/31/93 2.412533 -0.79611 -0.330 -1.04729 -0.434 0.090%
06/30/94 2.165592 -0.77808 -0.359 -1.02357 -0.473 0.090%
12/31/94 2.380914 1000 420.007 -0.77234 -0.324 -1.01602 -0.427 0.090%
06/30/95 2.927998 -0.50170 -0.171 -0.90147 -0.308 -1.18588 -0.405 0.090%
12/31/95 3.181565 -0.57713 -0.181 -1.03700 -0.326 -1.36417 -0.429 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 419.655 754.048 991.948
Account Value $1,335.16 $2,399.05 $3,155.95
Cash Surrender Value $1,268.40 $2,327.08 $3,155.95
Total Return 26.84% 132.71% 215.59%
Annualized Return 18.40% 13.26%
</TABLE>
<PAGE> 25
GOLDTRACK STANDARDIZED PERFORMANCE
Fidelity's Asset Manager
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/06/89 1.000000 1000 1000.000 0.090%
12/31/89 1.006213 -0.28692 -0.285 0.090%
06/30/90 1.044462 -0.46127 -0.442 0.090%
12/31/90 1.067375 1000 936.878 -0.47482 -0.445 0.090%
06/30/91 1.200388 -0.47804 -0.398 -0.50965 -0.425 0.090%
12/31/91 1.300338 -0.52692 -0.405 -0.56176 -0.432 0.090%
06/30/92 1.367764 -0.56195 -0.411 -0.59910 -0.438 0.090%
12/31/92 1.445841 -0.59233 -0.410 -0.63150 -0.437 0.090%
06/30/93 1.568294 -0.63427 -0.404 -0.67621 -0.431 0.090%
12/31/93 1.739547 -0.69578 -0.400 -0.74178 -0.426 0.090%
06/30/94 1.634683 -0.70944 -0.434 -0.75635 -0.463 0.090%
12/31/94 1.623829 1000 615.828 -0.68479 -0.422 -0.73007 -0.450 0.090%
06/30/95 1.718426 -0.46311 -0.269 -0.70207 -0.409 -0.74849 -0.436 0.090%
12/31/95 1.887901 -0.49948 -0.265 -0.75721 -0.401 -0.80728 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 615.294 932.784 994.462
Account Value $1,161.61 $1,761.00 $1,877.45
Cash Surrender Value $1,161.61 $1,761.00 $1,877.45
Total Return 16.16% 76.10% 87.74%
Annualized Return 11.98% 10.48%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/06/89 1.000000 1000 1000.000 0.090%
12/31/89 1.005584 -0.28683 -0.285 0.090%
06/30/90 1.042770 -0.46075 -0.442 0.090%
12/31/90 1.064566 1000 939.350 -0.47381 -0.445 0.090%
06/30/91 1.196056 -0.47779 -0.399 -0.50804 -0.425 0.090%
12/31/91 1.294327 -0.52613 -0.406 -0.55944 -0.432 0.090%
06/30/92 1.360085 -0.56054 -0.412 -0.59603 -0.438 0.090%
12/31/92 1.436276 -0.59026 -0.411 -0.62763 -0.437 0.090%
06/30/93 1.556375 -0.63141 -0.406 -0.67139 -0.431 0.090%
12/31/93 1.724588 -0.69194 -0.401 -0.73575 -0.427 0.090%
06/30/94 1.619018 -0.70485 -0.435 -0.74948 -0.463 0.090%
12/31/94 1.606657 1000 622.410 -0.67968 -0.423 -0.72271 -0.450 0.090%
06/30/95 1.698559 -0.46287 -0.273 -0.69612 -0.410 -0.74020 -0.436 0.090%
12/31/95 1.864216 -0.49872 -0.268 -0.75004 -0.402 -0.79753 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 621.869 935.245 994.461
Account Value $1,159.30 $1,743.50 $1,853.89
Cash Surrender Value $1,101.33 $1,691.19 $1,816.81
Total Return 10.13% 69.12% 81.68%
Annualized Return 11.08% 9.91%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/06/89 1.000000 1000 1000.000 0.090%
12/31/89 1.005113 -0.28676 -0.285 0.090%
06/30/90 1.041503 -0.46036 -0.442 0.090%
12/31/90 1.062464 1000 941.208 -0.47305 -0.445 0.090%
06/30/91 1.192818 -0.47761 -0.400 -0.50684 -0.425 0.090%
12/31/91 1.289837 -0.52553 -0.407 -0.55771 -0.432 0.090%
06/30/92 1.354354 -0.55948 -0.413 -0.59374 -0.438 0.090%
12/31/92 1.429143 -0.58870 -0.412 -0.62474 -0.437 0.090%
06/30/93 1.547496 -0.62928 -0.407 -0.66780 -0.432 0.090%
12/31/93 1.713454 -0.68908 -0.402 -0.73127 -0.427 0.090%
06/30/94 1.607369 -0.70143 -0.436 -0.74437 -0.463 0.090%
12/31/94 1.593897 1000 627.393 -0.67587 -0.424 -0.71724 -0.450 0.090%
06/30/95 1.683810 -0.46269 -0.275 -0.69169 -0.411 -0.73404 -0.436 0.090%
12/31/95 1.846647 -0.49815 -0.270 -0.74470 -0.403 -0.79029 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 626.848 937.093 994.460
Account Value $1,157.57 $1,730.48 $1,836.42
Cash Surrender Value $1,099.69 $1,678.57 $1,799.69
Total Return 9.97% 67.86% 79.97%
Annualized Return 10.91% 9.74%
</TABLE>
<PAGE> 26
GOLDTRACK STANDARDIZED PERFORMANCE
Fidelity's Asset Manager
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/06/89 1.000000 1000 1000.000 0.090%
12/31/89 1.004486 -0.28667 -0.285 0.090%
06/30/90 1.039815 -0.45984 -0.442 0.090%
12/31/90 1.059669 1000 943.691 -0.47204 -0.445 0.090%
06/30/91 1.188514 -0.47736 -0.402 -0.50525 -0.425 0.090%
12/31/91 1.283875 -0.52474 -0.409 -0.55540 -0.433 0.090%
06/30/92 1.346750 -0.55808 -0.414 -0.59069 -0.439 0.090%
12/31/92 1.419688 -0.58664 -0.413 -0.62091 -0.437 0.090%
06/30/93 1.535735 -0.62644 -0.408 -0.66304 -0.432 0.090%
12/31/93 1.698719 -0.68528 -0.403 -0.72532 -0.427 0.090%
06/30/94 1.591966 -0.69690 -0.438 -0.73762 -0.463 0.090%
12/31/94 1.577040 1000 634.099 -0.67082 -0.425 -0.71001 -0.450 0.090%
06/30/95 1.664343 -0.46246 -0.278 -0.68583 -0.412 -0.72590 -0.436 0.090%
12/31/95 1.823480 -0.49740 -0.273 -0.73765 -0.405 -0.78075 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 633.548 939.562 994.458
Account Value $1,155.26 $1,713.27 $1,813.37
Cash Surrender Value $1,097.50 $1,661.87 $1,777.11
Total Return 9.75% 66.19% 77.71%
Annualized Return 10.69% 9.52%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/06/89 1.000000 1000 1000.000 0.090%
12/31/89 1.004015 -0.28660 -0.285 0.090%
06/30/90 1.038551 -0.45945 -0.442 0.090%
12/31/90 1.057577 1000 945.558 -0.47129 -0.446 0.090%
06/30/91 1.185296 -0.47717 -0.403 -0.50405 -0.425 0.090%
12/31/91 1.279421 -0.52415 -0.410 -0.55368 -0.433 0.090%
06/30/92 1.341075 -0.55703 -0.415 -0.58841 -0.439 0.090%
12/31/92 1.412637 -0.58509 -0.414 -0.61805 -0.438 0.090%
06/30/93 1.526973 -0.62432 -0.409 -0.65949 -0.432 0.090%
12/31/93 1.687752 -0.68245 -0.404 -0.72090 -0.427 0.090%
06/30/94 1.580510 -0.69352 -0.439 -0.73259 -0.464 0.090%
12/31/94 1.564515 1000 639.176 -0.66706 -0.426 -0.70464 -0.450 0.090%
06/30/95 1.649890 -0.46228 -0.280 -0.68147 -0.413 -0.71986 -0.436 0.090%
12/31/95 1.806294 -0.49683 -0.275 -0.73240 -0.405 -0.77366 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Five-Year Since inception
<S> <C> <C> <C>
Ending units 638.621 941.420 994.455
Account Value $1,153.54 $1,700.48 $1,796.28
Cash Surrender Value $1,095.86 $1,649.47 $1,760.35
Total Return 9.59% 64.95% 76.04%
Annualized Return 10.53% 9.36%
</TABLE>
<PAGE> 27
GOLDTRACK STANDARDIZED PERFORMANCE
Am Odyssey International Equity
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.974749 -0.14608 -0.150 0.090%
12/31/93 1.185481 -0.48598 -0.410 0.090%
06/30/94 1.096072 -0.51306 -0.468 0.090%
12/31/94 1.096130 1000 912.301 -0.49274 -0.450 0.090%
06/30/95 1.192413 -0.46976 -0.394 -0.51416 -0.431 0.090%
12/31/95 1.296618 -0.51070 -0.394 -0.55896 -0.431 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 911.513 997.660
Account Value $1,181.88 $1,293.58
Cash Surrender Value $1,181.88 $1,293.58
Total Return 18.19% 29.36%
Annualized Return 10.13%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.974428 -0.14605 -0.150 0.090%
12/31/93 1.183899 -0.48555 -0.410 0.090%
06/30/94 1.093523 -0.51213 -0.468 0.090%
12/31/94 1.092485 1000 915.344 -0.49135 -0.450 0.090%
06/30/95 1.187264 -0.46952 -0.395 -0.51219 -0.431 0.090%
12/31/95 1.289733 -0.50992 -0.395 -0.55626 -0.431 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 914.554 997.660
Account Value $1,179.53 $1,286.72
Cash Surrender Value $1,120.55 $1,235.25
Total Return 12.06% 23.52%
Annualized Return 8.24%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.974188 -0.14604 -0.150 0.090%
12/31/93 1.182713 -0.48523 -0.410 0.090%
06/30/94 1.091615 -0.51144 -0.469 0.090%
12/31/94 1.089760 1000 917.633 -0.49030 -0.450 0.090%
06/30/95 1.183417 -0.46934 -0.397 -0.51071 -0.432 0.090%
12/31/95 1.284594 -0.50934 -0.397 -0.55424 -0.431 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 916.839 997.658
Account Value $1,177.77 $1,281.59
Cash Surrender Value $1,118.88 $1,230.32
Total Return 11.89% 23.03%
Annualized Return 8.08%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.973867 -0.14601 -0.150 0.090%
12/31/93 1.181135 -0.48480 -0.410 0.090%
06/30/94 1.089077 -0.51051 -0.469 0.090%
12/31/94 1.086136 1000 920.695 -0.48892 -0.450 0.090%
06/30/95 1.178307 -0.46909 -0.398 -0.50875 -0.432 0.090%
12/31/95 1.277773 -0.50857 -0.398 -0.55156 -0.432 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 919.899 997.657
Account Value $1,175.42 $1,274.78
Cash Surrender Value $1,116.65 $1,223.79
Total Return 11.67% 22.38%
Annualized Return 7.86%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.973627 -0.14599 -0.150 0.090%
12/31/93 1.179952 -0.48448 -0.411 0.090%
06/30/94 1.087177 -0.50982 -0.469 0.090%
12/31/94 1.083427 1000 922.997 -0.48788 -0.450 0.090%
06/30/95 1.174489 -0.46891 -0.399 -0.50728 -0.432 0.090%
12/31/95 1.272681 -0.50799 -0.399 -0.54956 -0.432 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 922.199 997.656
Account Value $1,173.67 $1,269.70
Cash Surrender Value $1,114.98 $1,218.91
Total Return 11.50% 21.89%
Annualized Return 7.70%
</TABLE>
<PAGE> 28
GOLDTRACK STANDARDIZED PERFORMANCE
Am Odyssey Emerging Opportunities
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.970536 -0.14577 -0.150 0.090%
12/31/93 1.083486 -0.46209 -0.426 0.090%
06/30/94 1.020993 -0.47324 -0.464 0.090%
12/31/94 1.181192 1000 846.602 -0.49498 -0.419 0.090%
06/30/95 1.431549 -0.49769 -0.348 -0.58701 -0.410 0.090%
12/31/95 1.552746 -0.56823 -0.366 -0.67021 -0.432 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 845.888 997.699
Account Value $1,313.45 $1,549.17
Cash Surrender Value $1,313.45 $1,549.17
Total Return 31.34% 54.92%
Annualized Return 17.83%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.970217 -0.14574 -0.150 0.090%
12/31/93 1.082039 -0.46169 -0.427 0.090%
06/30/94 1.018618 -0.47238 -0.464 0.090%
12/31/94 1.177264 1000 849.427 -0.49356 -0.419 0.090%
06/30/95 1.425369 -0.49742 -0.349 -0.58474 -0.410 0.090%
12/31/95 1.544502 -0.56737 -0.367 -0.66697 -0.432 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 848.711 997.698
Account Value $1,310.84 $1,540.95
Cash Surrender Value $1,245.29 $1,479.31
Total Return 24.53% 47.93%
Annualized Return 15.81%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.969978 -0.14572 -0.150 0.090%
12/31/93 1.080955 -0.46139 -0.427 0.090%
06/30/94 1.016840 -0.47173 -0.464 0.090%
12/31/94 1.174327 1000 851.552 -0.49250 -0.419 0.090%
06/30/95 1.420752 -0.49722 -0.350 -0.58304 -0.410 0.090%
12/31/95 1.538347 -0.56673 -0.368 -0.66455 -0.432 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 850.834 997.698
Account Value $1,308.88 $1,534.81
Cash Surrender Value $1,243.43 $1,473.41
Total Return 24.34% 47.34%
Annualized Return 15.63%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.969659 -0.14570 -0.150 0.090%
12/31/93 1.079511 -0.46099 -0.427 0.090%
06/30/94 1.014475 -0.47087 -0.464 0.090%
12/31/94 1.170422 1000 854.393 -0.49109 -0.420 0.090%
06/30/95 1.414618 -0.49694 -0.351 -0.58078 -0.411 0.090%
12/31/95 1.530180 -0.56587 -0.370 -0.66134 -0.432 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 853.672 997.696
Account Value $1,306.27 $1,526.65
Cash Surrender Value $1,240.96 $1,465.59
Total Return 24.10% 46.56%
Annualized Return 15.40%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.969419 -0.14568 -0.150 0.090%
12/31/93 1.078430 -0.46070 -0.427 0.090%
06/30/94 1.012704 -0.47023 -0.464 0.090%
12/31/94 1.167502 1000 856.530 -0.49004 -0.420 0.090%
06/30/95 1.410035 -0.49674 -0.352 -0.57910 -0.411 0.090%
12/31/95 1.524082 -0.56523 -0.371 -0.65894 -0.432 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 855.807 997.696
Account Value $1,304.32 $1,520.57
Cash Surrender Value $1,239.10 $1,459.75
Total Return 23.91% 45.97%
Annualized Return 15.23%
</TABLE>
<PAGE> 29
GOLDTRACK STANDARDIZED PERFORMANCE
Am Odyssey Core Equity
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.995171 -0.14759 -0.148 0.090%
12/31/93 1.016780 -0.45262 -0.445 0.090%
06/30/94 0.993160 -0.45197 -0.455 0.090%
12/31/94 1.000462 1000 999.538 -0.44809 -0.448 0.090%
06/30/95 1.192826 -0.49326 -0.414 -0.49275 -0.413 0.090%
12/31/95 1.378004 -0.57793 -0.419 -0.57733 -0.419 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 998.705 997.672
Account Value $1,376.22 $1,374.80
Cash Surrender Value $1,376.22 $1,374.80
Total Return 37.62% 37.48%
Annualized Return 12.67%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.994843 -0.14756 -0.148 0.090%
12/31/93 1.015422 -0.45224 -0.445 0.090%
06/30/94 0.990850 -0.45114 -0.455 0.090%
12/31/94 0.997135 1000 1002.873 -0.44683 -0.448 0.090%
06/30/95 1.187676 -0.49299 -0.415 -0.49085 -0.413 0.090%
12/31/95 1.370688 -0.57705 -0.421 -0.57453 -0.419 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1002.037 997.672
Account Value $1,373.48 $1,367.50
Cash Surrender Value $1,304.81 $1,312.80
Total Return 30.48% 31.28%
Annualized Return 10.74%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.994598 -0.14755 -0.148 0.090%
12/31/93 1.014405 -0.45196 -0.446 0.090%
06/30/94 0.989122 -0.45053 -0.455 0.090%
12/31/94 0.994647 1000 1005.382 -0.44588 -0.448 0.090%
06/30/95 1.183828 -0.49279 -0.416 -0.48942 -0.413 0.090%
12/31/95 1.365227 -0.57639 -0.422 -0.57244 -0.419 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1004.544 997.671
Account Value $1,371.43 $1,362.05
Cash Surrender Value $1,302.86 $1,307.57
Total Return 30.29% 30.76%
Annualized Return 10.57%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.994271 -0.14752 -0.148 0.090%
12/31/93 1.013050 -0.45158 -0.446 0.090%
06/30/94 0.986821 -0.44970 -0.456 0.090%
12/31/94 0.991340 1000 1008.736 -0.44462 -0.449 0.090%
06/30/95 1.178717 -0.49253 -0.418 -0.48753 -0.414 0.090%
12/31/95 1.357979 -0.57550 -0.424 -0.56966 -0.419 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1007.894 997.668
Account Value $1,368.70 $1,354.81
Cash Surrender Value $1,300.26 $1,300.62
Total Return 30.03% 30.06%
Annualized Return 10.35%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 0.994026 -0.14750 -0.148 0.090%
12/31/93 1.012035 -0.45130 -0.446 0.090%
06/30/94 0.985099 -0.44909 -0.456 0.090%
12/31/94 0.988866 1000 1011.259 -0.44368 -0.449 0.090%
06/30/95 1.174898 -0.49233 -0.419 -0.48612 -0.414 0.090%
12/31/95 1.352569 -0.57484 -0.425 -0.56759 -0.420 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1010.415 997.667
Account Value $1,366.66 $1,349.41
Cash Surrender Value $1,298.32 $1,295.44
Total Return 29.83% 29.54%
Annualized Return 10.19%
</TABLE>
<PAGE> 30
GOLDTRACK STANDARDIZED PERFORMANCE
Am Odyssey LTB
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.023773 -0.14970 -0.146 0.090%
12/31/93 1.089473 -0.47541 -0.436 0.090%
06/30/94 1.017150 -0.47371 -0.466 0.090%
12/31/94 1.020606 1000 979.810 -0.45801 -0.449 0.090%
06/30/95 1.157715 -0.48023 -0.415 -0.48939 -0.423 0.090%
12/31/95 1.242304 -0.52888 -0.426 -0.53897 -0.434 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 978.969 997.646
Account Value $1,216.18 $1,239.38
Cash Surrender Value $1,216.18 $1,239.38
Total Return 21.62% 23.94%
Annualized Return 8.37%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.023437 -0.14968 -0.146 0.090%
12/31/93 1.088019 -0.47501 -0.437 0.090%
06/30/94 1.014784 -0.47285 -0.466 0.090%
12/31/94 1.017212 1000 983.079 -0.45672 -0.449 0.090%
06/30/95 1.152716 -0.47997 -0.416 -0.48750 -0.423 0.090%
12/31/95 1.235707 -0.52808 -0.427 -0.53636 -0.434 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 982.236 997.645
Account Value $1,213.76 $1,232.80
Cash Surrender Value $1,153.07 $1,183.49
Total Return 15.31% 18.35%
</TABLE>
Annualized Return 6.52%
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.023185 -0.14966 -0.146 0.090%
12/31/93 1.086929 -0.47471 -0.437 0.090%
06/30/94 1.013014 -0.47221 -0.466 0.090%
12/31/94 1.014673 1000 985.539 -0.45575 -0.449 0.090%
06/30/95 1.148980 -0.47978 -0.418 -0.48609 -0.423 0.090%
12/31/95 1.230782 -0.52748 -0.429 -0.53442 -0.434 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 984.692 997.645
Account Value $1,211.94 $1,227.88
Cash Surrender Value $1,151.34 $1,178.77
Total Return 15.13% 17.88%
Annualized Return 6.36%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.022849 -0.14964 -0.146 0.090%
12/31/93 1.085478 -0.47430 -0.437 0.090%
06/30/94 1.010657 -0.47136 -0.466 0.090%
12/31/94 1.011298 1000 988.828 -0.45446 -0.449 0.090%
06/30/95 1.144018 -0.47953 -0.419 -0.48422 -0.423 0.090%
12/31/95 1.224246 -0.52668 -0.430 -0.53184 -0.434 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 987.979 997.645
Account Value $1,209.53 $1,221.36
Cash Surrender Value $1,149.05 $1,172.51
Total Return 14.91% 17.25%
Annualized Return 6.15%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.022597 -0.14962 -0.146 0.090%
12/31/93 1.084391 -0.47400 -0.437 0.090%
06/30/94 1.008893 -0.47071 -0.467 0.090%
12/31/94 1.008774 1000 991.302 -0.45350 -0.450 0.090%
06/30/95 1.140311 -0.47934 -0.420 -0.48282 -0.423 0.090%
12/31/95 1.219367 -0.52609 -0.431 -0.52991 -0.435 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 990.451 997.642
Account Value $1,207.72 $1,216.49
Cash Surrender Value $1,147.34 $1,166.49
Total Return 14.73% 16.65%
Annualized Return 5.94%
</TABLE>
<PAGE> 31
GOLDTRACK STANDARDIZED PERFORMANCE
Am Odyssey Interm. Term Bond
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.014036 -0.14898 -0.147 0.090%
12/31/93 1.039273 -0.46193 -0.444 0.090%
06/30/94 1.002973 -0.45923 -0.458 0.090%
12/31/94 1.003647 1000 996.366 -0.45102 -0.449 0.090%
06/30/95 1.093373 -0.47011 -0.430 -0.47112 -0.431 0.090%
12/31/95 1.147483 -0.50214 -0.438 -0.50322 -0.439 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 995.498 997.632
Account Value $1,142.32 $1,144.77
Cash Surrender Value $1,142.32 $1,144.77
Total Return 14.23% 14.48%
Annualized Return 5.20%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.013703 -0.14896 -0.147 0.090%
12/31/93 1.037885 -0.46154 -0.445 0.090%
06/30/94 1.000640 -0.45840 -0.458 0.090%
12/31/94 1.000309 1000 999.691 -0.44974 -0.450 0.090%
06/30/95 1.088651 -0.46987 -0.432 -0.46931 -0.431 0.090%
12/31/95 1.141389 -0.50139 -0.439 -0.50079 -0.439 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 998.82 997.630
Account Value $1,140.04 $1,138.68
Cash Surrender Value $1,083.04 $1,093.14
Total Return 8.30% 9.31%
Annualized Return 3.39%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.013453 -0.14894 -0.147 0.090%
12/31/93 1.036845 -0.46125 -0.445 0.090%
06/30/94 0.998893 -0.45777 -0.458 0.090%
12/31/94 0.997812 1000 1002.193 -0.44879 -0.450 0.090%
06/30/95 1.085123 -0.46969 -0.433 -0.46796 -0.431 0.090%
12/31/95 1.136839 -0.50082 -0.441 -0.49898 -0.439 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1001.319 997.630
Account Value $1,138.34 $1,134.14
Cash Surrender Value $1,081.42 $1,088.78
Total Return 8.14% 8.88%
Annualized Return 3.24%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.013120 -0.14892 -0.147 0.090%
12/31/93 1.035460 -0.46086 -0.445 0.090%
06/30/94 0.996570 -0.45694 -0.459 0.090%
12/31/94 0.994493 1000 1005.537 -0.44752 -0.450 0.090%
06/30/95 1.080437 -0.46944 -0.434 -0.46616 -0.431 0.090%
12/31/95 1.130802 -0.50007 -0.442 -0.49657 -0.439 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1004.661 997.629
Account Value $1,136.07 $1,128.12
Cash Surrender Value $1,079.27 $1,083.00
Total Return 7.93% 8.30%
Annualized Return 3.03%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.012871 -0.14890 -0.147 0.090%
12/31/93 1.034422 -0.46057 -0.445 0.090%
06/30/94 0.994831 -0.45631 -0.459 0.090%
12/31/94 0.992011 1000 1008.053 -0.44657 -0.450 0.090%
06/30/95 1.076935 -0.46926 -0.436 -0.46481 -0.432 0.090%
12/31/95 1.126295 -0.49950 -0.443 -0.49477 -0.439 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1007.174 997.628
Account Value $1,134.38 $1,123.62
Cash Surrender Value $1,077.66 $1,073.62
Total Return 7.77% 7.36%
Annualized Return 2.70%
</TABLE>
<PAGE> 32
GOLDTRACK STANDARDIZED PERFORMANCE
Am Odyssey Short Term Bond
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.007080 -0.14847 -0.147 0.090%
12/31/93 1.024557 -0.45705 -0.446 0.090%
06/30/94 1.013412 -0.45827 -0.452 0.090%
12/31/94 1.017011 1000 983.274 -0.45637 -0.449 0.090%
06/30/95 1.085252 -0.46510 -0.429 -0.47230 -0.435 0.090%
12/31/95 1.120762 -0.48784 -0.435 -0.49540 -0.442 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 982.41 997.629
Account Value $1,101.05 $1,118.10
Cash Surrender Value $1,101.05 $1,118.10
Total Return 10.10% 11.81%
Annualized Return 4.27%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.006749 -0.14844 -0.147 0.090%
12/31/93 1.023189 -0.45667 -0.446 0.090%
06/30/94 1.011055 -0.45743 -0.452 0.090%
12/31/94 1.013628 1000 986.555 -0.45508 -0.449 0.090%
06/30/95 1.080565 -0.46486 -0.430 -0.47049 -0.435 0.090%
12/31/95 1.114809 -0.48711 -0.437 -0.49301 -0.442 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 985.688 997.629
Account Value $1,098.85 $1,112.17
Cash Surrender Value $1,043.91 $1,067.68
Total Return 4.39% 6.77%
Annualized Return 2.48%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.006501 -0.14843 -0.147 0.090%
12/31/93 1.022163 -0.45638 -0.446 0.090%
06/30/94 1.009290 -0.45681 -0.453 0.090%
12/31/94 1.011099 1000 989.023 -0.45411 -0.449 0.090%
06/30/95 1.077063 -0.46468 -0.431 -0.46913 -0.436 0.090%
12/31/95 1.110366 -0.48656 -0.438 -0.49122 -0.442 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 988.154 997.627
Account Value $1,097.21 $1,107.73
Cash Surrender Value $1,042.35 $1,063.42
Total Return 4.24% 6.34%
Annualized Return 2.33%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.006170 -0.14840 -0.147 0.090%
12/31/93 1.020798 -0.45600 -0.447 0.090%
06/30/94 1.006943 -0.45597 -0.453 0.090%
12/31/94 1.007736 1000 992.323 -0.45283 -0.449 0.090%
06/30/95 1.072411 -0.46444 -0.433 -0.46733 -0.436 0.090%
12/31/95 1.104469 -0.48583 -0.440 -0.48885 -0.443 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 991.45 997.625
Account Value $1,095.03 $1,101.85
Cash Surrender Value $1,040.27 $1,056.85
Total Return 4.03% 5.68%
Annualized Return 2.09%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000 0.090%
06/30/93 1.005922 -0.14838 -0.148 0.090%
12/31/93 1.019775 -0.45571 -0.447 0.090%
06/30/94 1.005186 -0.45535 -0.453 0.090%
12/31/94 1.005221 1000 994.806 -0.45187 -0.450 0.090%
06/30/95 1.068936 -0.46426 -0.434 -0.46599 -0.436 0.090%
12/31/95 1.100067 -0.48528 -0.441 -0.48708 -0.443 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 993.931 997.623
Account Value $1,093.39 $1,097.45
Cash Surrender Value $1,038.72 $1,047.45
Total Return 3.87% 4.75%
Annualized Return 1.75%
</TABLE>
<PAGE> 33
GOLDTRACK STANDARDIZED PERFORMANCE
Am Odyssey Intnl Equity with CHART fees
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.974749 -0.14170 -0.14500 0.090%
07/31/93 0.968314 -2.93476 -3.03100 0.090% 0.3125%
10/29/93 1.076815 -3.25341 -3.02100 0.090% 0.3125%
12/31/93 1.185481 -0.46846 -0.39500 0.090%
01/31/94 1.221483 -3.67746 -3.01100 0.090% 0.3125%
04/29/94 1.133747 -3.40265 -3.00100 0.090% 0.3125%
06/30/94 1.096072 -0.49148 -0.44800 0.090%
07/29/94 1.131055 -3.38238 -2.99000 0.090% 0.3125%
10/31/94 1.165741 -3.47521 -2.98100 0.090% 0.3125%
12/31/94 1.096130 970 884.932 -0.46907 -0.42800 0.090%
01/31/95 1.052782 -2.91138 -2.765 -3.12725 -2.97000 0.090% 0.3125%
04/28/95 1.148897 -3.16725 -2.757 -3.40210 -2.96100 0.090% 0.3125%
06/30/95 1.192413 -0.45283 -0.380 -0.48640 -0.40800 0.090%
07/31/95 1.266956 -3.48029 -2.747 -3.73835 -2.95100 0.090% 0.3125%
10/31/95 1.248820 -3.41975 -2.738 -3.67332 -2.94100 0.090% 0.3125%
12/31/95 1.296618 -0.48921 -0.377 -0.52549 -0.40500 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 873.168 937.913
Account Value $1,132.17 $1,216.11
Surrender Value $1,132.17 $1,216.11
Total Return 13.22% 21.61%
Annualized Return 7.61%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.974428 -0.14167 -0.14500 0.090%
07/31/93 0.967836 -2.93331 -3.03100 0.090% 0.3125%
10/29/93 1.075748 -3.25018 -3.02100 0.090% 0.3125%
12/31/93 1.183899 -0.46805 -0.39500 0.090%
01/31/94 1.219646 -3.67193 -3.01100 0.090% 0.3125%
04/29/94 1.131495 -3.39589 -3.00100 0.090% 0.3125%
06/30/94 1.093523 -0.49059 -0.44900 0.090%
07/29/94 1.128246 -3.37397 -2.99000 0.090% 0.3125%
10/31/94 1.162248 -3.46480 -2.98100 0.090% 0.3125%
12/31/94 1.092485 970 887.884 -0.46774 -0.42800 0.090%
01/31/95 1.049097 -2.91086 -2.775 -3.11630 -2.97000 0.090% 0.3125%
04/28/95 1.144331 -3.16518 -2.766 -3.38857 -2.96100 0.090% 0.3125%
06/30/95 1.187264 -0.45259 -0.381 -0.48454 -0.40800 0.090%
07/31/95 1.261272 -3.47623 -2.756 -3.72158 -2.95100 0.090% 0.3125%
10/31/95 1.242591 -3.41404 -2.748 -3.65500 -2.94100 0.090% 0.3125%
12/31/95 1.289733 -0.48847 -0.379 -0.52295 -0.40500 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 876.079 937.912
Account Value $1,129.91 $1,209.66
Surrender Value $1,073.41 $1,161.27
Total Return 7.34% 16.13%
Annualized Return 5.76%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.974188 -0.14165 -0.14500 0.090%
07/31/93 0.967478 -2.93223 -3.03100 0.090% 0.3125%
10/29/93 1.074948 -3.24777 -3.02100 0.090% 0.3125%
12/31/93 1.182713 -0.46774 -0.39500 0.090%
01/31/94 1.218270 -3.66778 -3.01100 0.090% 0.3125%
04/29/94 1.129809 -3.39083 -3.00100 0.090% 0.3125%
06/30/94 1.091615 -0.48992 -0.44900 0.090%
07/29/94 1.126144 -3.36769 -2.99000 0.090% 0.3125%
10/31/94 1.159635 -3.45701 -2.98100 0.090% 0.3125%
12/31/94 1.089760 970 890.104 -0.46675 -0.42800 0.090%
01/31/95 1.046342 -2.91048 -2.782 -3.10812 -2.97000 0.090% 0.3125%
04/28/95 1.140918 -3.16363 -2.773 -3.37846 -2.96100 0.090% 0.3125%
06/30/95 1.183417 -0.45242 -0.382 -0.48314 -0.40800 0.090%
07/31/95 1.257025 -3.47319 -2.763 -3.70904 -2.95100 0.090% 0.3125%
10/31/95 1.237939 -3.40976 -2.754 -3.64131 -2.94100 0.090% 0.3125%
12/31/95 1.284594 -0.48792 -0.380 -0.52105 -0.40600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 878.27 937.911
Account Value $1,128.22 $1,204.83
Surrender Value $1,071.81 $1,156.64
Total Return 7.18% 15.66%
Annualized Return 5.60%
</TABLE>
<PAGE> 34
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.973867 -0.14163 -0.14500 0.090%
07/31/93 0.967001 -2.93078 -3.03100 0.090% 0.3125%
10/29/93 1.073883 -3.24455 -3.02100 0.090% 0.3125%
12/31/93 1.181135 -0.46732 -0.39600 0.090%
01/31/94 1.216438 -3.66227 -3.01100 0.090% 0.3125%
04/29/94 1.127565 -3.38409 -3.00100 0.090% 0.3125%
06/30/94 1.089077 -0.48904 -0.44900 0.090%
07/29/94 1.123348 -3.35932 -2.99000 0.090% 0.3125%
10/31/94 1.156160 -3.44664 -2.98100 0.090% 0.3125%
12/31/94 1.086136 970 893.074 -0.46543 -0.42900 0.090%
01/31/95 1.042679 -2.90997 -2.791 -3.09723 -2.97000 0.090% 0.3125%
04/28/95 1.136384 -3.16157 -2.782 -3.36503 -2.96100 0.090% 0.3125%
06/30/95 1.178307 -0.45218 -0.384 -0.48128 -0.40800 0.090%
07/31/95 1.251385 -3.46914 -2.772 -3.69240 -2.95100 0.090% 0.3125%
10/31/95 1.231763 -3.40407 -2.764 -3.62314 -2.94100 0.090% 0.3125%
12/31/95 1.277773 -0.48718 -0.381 -0.51853 -0.40600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 881.2 937.909
Account Value $1,125.97 $1,198.43
Surrender Value $1,069.67 $1,150.50
Total Return 6.97% 15.05%
Annualized Return 5.39%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.973627 -0.14161 -0.14500 0.090%
07/31/93 0.966643 -2.92970 -3.03100 0.090% 0.3125%
10/29/93 1.073085 -3.24214 -3.02100 0.090% 0.3125%
12/31/93 1.179952 -0.46702 -0.39600 0.090%
01/31/94 1.215066 -3.65813 -3.01100 0.090% 0.3125%
04/29/94 1.125885 -3.37905 -3.00100 0.090% 0.3125%
06/30/94 1.087177 -0.48837 -0.44900 0.090%
07/29/94 1.121255 -3.35306 -2.99000 0.090% 0.3125%
10/31/94 1.153560 -3.43889 -2.98100 0.090% 0.3125%
12/31/94 1.083427 970 895.307 -0.46444 -0.42900 0.090%
01/31/95 1.039941 -2.90958 -2.798 -3.08910 -2.97000 0.090% 0.3125%
04/28/95 1.132994 -3.16002 -2.789 -3.35499 -2.96100 0.090% 0.3125%
06/30/95 1.174489 -0.45201 -0.385 -0.47989 -0.40900 0.090%
07/31/95 1.247172 -3.46611 -2.779 -3.67996 -2.95100 0.090% 0.3125%
10/31/95 1.227152 -3.39981 -2.770 -3.60957 -2.94100 0.090% 0.3125%
12/31/95 1.272681 -0.48662 -0.382 -0.51665 -0.40600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 883.404 937.908
Account Value $1,124.29 $1,193.66
Surrender Value $1,068.08 $1,143.66
Total Return 6.81% 14.37%
Annualized Return 5.16%
</TABLE>
<PAGE> 35
GOLDTRACK STANDARDIZED PERFORMANCE
Am Odyssey Emerging Opp with CHART fees
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.970536 -0.14139 -0.14600 0.090%
07/31/93 0.941261 -2.85277 -3.03100 0.090% 0.3125%
10/29/93 1.069745 -3.23204 -3.02100 0.090% 0.3125%
12/31/93 1.083486 -0.44543 -0.41100 0.090%
01/31/94 1.118568 -3.36756 -3.01100 0.090% 0.3125%
04/29/94 1.113983 -3.34327 -3.00100 0.090% 0.3125%
06/30/94 1.020993 -0.45333 -0.44400 0.090%
07/29/94 1.012602 -3.02811 -2.99000 0.090% 0.3125%
10/31/94 1.179573 -3.51640 -2.98100 0.090% 0.3125%
12/31/94 1.181192 970 821.204 -0.47119 -0.39900 0.090%
01/31/95 1.157803 -2.97123 -2.566 -3.43927 -2.97100 0.090% 0.3125%
04/28/95 1.250762 -3.19975 -2.558 -3.70380 -2.96100 0.090% 0.3125%
06/30/95 1.431549 -0.47975 -0.335 -0.55532 -0.38800 0.090%
07/31/95 1.534261 -3.91114 -2.549 -4.52724 -2.95100 0.090% 0.3125%
10/31/95 1.527944 -3.88287 -2.541 -4.49451 -2.94200 0.090% 0.3125%
12/31/95 1.552746 -0.54433 -0.351 -0.63007 -0.40600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 810.304 937.946
Account Value $1,258.20 $1,456.39
Surrender Value $1,258.20 $1,456.39
Total Return 25.82% 45.64%
Annualized Return 15.13%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.970217 -0.14137 -0.14600 0.090%
07/31/93 0.940796 -2.85136 -3.03100 0.090% 0.3125%
10/29/93 1.068685 -3.22884 -3.02100 0.090% 0.3125%
12/31/93 1.082039 -0.44504 -0.41100 0.090%
01/31/94 1.116885 -3.36249 -3.01100 0.090% 0.3125%
04/29/94 1.111770 -3.33663 -3.00100 0.090% 0.3125%
06/30/94 1.018618 -0.45250 -0.44400 0.090%
07/29/94 1.010086 -3.02058 -2.99000 0.090% 0.3125%
10/31/94 1.176037 -3.50586 -2.98100 0.090% 0.3125%
12/31/94 1.177264 970 823.944 -0.46985 -0.39900 0.090%
01/31/95 1.153750 -2.97070 -2.575 -3.42723 -2.97100 0.090% 0.3125%
04/28/95 1.245791 -3.19767 -2.567 -3.68908 -2.96100 0.090% 0.3125%
06/30/95 1.425369 -0.47948 -0.336 -0.55317 -0.38800 0.090%
07/31/95 1.527378 -3.90658 -2.558 -4.50693 -2.95100 0.090% 0.3125%
10/31/95 1.520323 -3.87639 -2.550 -4.47210 -2.94200 0.090% 0.3125%
12/31/95 1.544502 -0.54350 -0.352 -0.62703 -0.40600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 813.006 937.946
Account Value $1,255.69 $1,448.66
Surrender Value $1,192.90 $1,390.71
Total Return 19.29% 39.07%
Annualized Return 13.16%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.969978 -0.14135 -0.14600 0.090%
07/31/93 0.940448 -2.85030 -3.03100 0.090% 0.3125%
10/29/93 1.067891 -3.22644 -3.02100 0.090% 0.3125%
12/31/93 1.080955 -0.44476 -0.41100 0.090%
01/31/94 1.115624 -3.35869 -3.01100 0.090% 0.3125%
04/29/94 1.110113 -3.33166 -3.00100 0.090% 0.3125%
06/30/94 1.016840 -0.45189 -0.44400 0.090%
07/29/94 1.008203 -3.01495 -2.99000 0.090% 0.3125%
10/31/94 1.173392 -3.49797 -2.98100 0.090% 0.3125%
12/31/94 1.174327 970 826.005 -0.46884 -0.39900 0.090%
01/31/95 1.150720 -2.97031 -2.581 -3.41823 -2.97100 0.090% 0.3125%
04/28/95 1.242076 -3.19611 -2.573 -3.67807 -2.96100 0.090% 0.3125%
06/30/95 1.420752 -0.47929 -0.337 -0.55156 -0.38800 0.090%
07/31/95 1.522237 -3.90318 -2.564 -4.49176 -2.95100 0.090% 0.3125%
10/31/95 1.514633 -3.87154 -2.556 -4.45536 -2.94200 0.090% 0.3125%
12/31/95 1.538347 -0.54289 -0.353 -0.62475 -0.40600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 815.041 937.946
Account Value $1,253.82 $1,442.89
Surrender Value $1,191.13 $1,385.17
Total Return 19.11% 38.52%
Annualized Return 12.99%
</TABLE>
<PAGE> 36
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.969659 -0.14133 -0.14600 0.090%
07/31/93 0.939984 -2.84890 -3.03100 0.090% 0.3125%
10/29/93 1.066833 -3.22325 -3.02100 0.090% 0.3125%
12/31/93 1.079511 -0.44437 -0.41200 0.090%
01/31/94 1.113945 -3.35364 -3.01100 0.090% 0.3125%
04/29/94 1.107908 -3.32504 -3.00100 0.090% 0.3125%
06/30/94 1.014475 -0.45107 -0.44500 0.090%
07/29/94 1.005697 -3.00745 -2.99000 0.090% 0.3125%
10/31/94 1.169875 -3.48748 -2.98100 0.090% 0.3125%
12/31/94 1.170422 970 828.761 -0.46749 -0.39900 0.090%
01/31/95 1.146693 -2.96980 -2.590 -3.40626 -2.97100 0.090% 0.3125%
04/28/95 1.237139 -3.19403 -2.582 -3.66345 -2.96100 0.090% 0.3125%
06/30/95 1.414618 -0.47903 -0.339 -0.54943 -0.38800 0.090%
07/31/95 1.515409 -3.89863 -2.573 -4.47161 -2.95100 0.090% 0.3125%
10/31/95 1.507078 -3.86508 -2.565 -4.43313 -2.94200 0.090% 0.3125%
12/31/95 1.530180 -0.54206 -0.354 -0.62173 -0.40600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 817.758 937.944
Account Value $1,251.32 $1,435.22
Surrender Value $1,188.75 $1,377.81
Total Return 18.88% 37.78%
Annualized Return 12.76%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.969419 -0.14131 -0.14600 0.090%
07/31/93 0.939636 -2.84784 -3.03100 0.090% 0.3125%
10/29/93 1.066040 -3.22085 -3.02100 0.090% 0.3125%
12/31/93 1.078430 -0.44409 -0.41200 0.090%
01/31/94 1.112687 -3.34985 -3.01100 0.090% 0.3125%
04/29/94 1.106257 -3.32008 -3.00100 0.090% 0.3125%
06/30/94 1.012704 -0.45045 -0.44500 0.090%
07/29/94 1.003822 -3.00184 -2.99000 0.090% 0.3125%
10/31/94 1.167244 -3.47964 -2.98100 0.090% 0.3125%
12/31/94 1.167502 970 830.834 -0.46649 -0.40000 0.090%
01/31/95 1.143681 -2.96940 -2.596 -3.39731 -2.97100 0.090% 0.3125%
04/28/95 1.233449 -3.19247 -2.588 -3.65252 -2.96100 0.090% 0.3125%
06/30/95 1.410035 -0.47883 -0.340 -0.54783 -0.38900 0.090%
07/31/95 1.510308 -3.89523 -2.579 -4.45655 -2.95100 0.090% 0.3125%
10/31/95 1.501437 -3.86025 -2.571 -4.41652 -2.94200 0.090% 0.3125%
12/31/95 1.524082 -0.54145 -0.355 -0.61948 -0.40600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 819.805 937.942
Account Value $1,249.45 $1,429.50
Surrender Value $1,186.98 $1,372.32
Total Return 18.70% 37.23%
Annualized Return 12.59%
</TABLE>
<PAGE> 37
GOLDTRACK STANDARDIZED PERFORMANCE
Am Odyssey Core Equity with CHART fees
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.995171 -0.14316 -0.14400 0.090%
07/31/93 1.002528 -3.03846 -3.03100 0.090% 0.3125%
10/29/93 1.026462 -3.10128 -3.02100 0.090% 0.3125%
12/31/93 1.016780 -0.43630 -0.42900 0.090%
01/31/94 1.055640 -3.17805 -3.01100 0.090% 0.3125%
04/29/94 1.007934 -3.02495 -3.00100 0.090% 0.3125%
06/30/94 0.993160 -0.43295 -0.43600 0.090%
07/29/94 1.025058 -3.06533 -2.99000 0.090% 0.3125%
10/31/94 1.032287 -3.07730 -2.98100 0.090% 0.3125%
12/31/94 1.000462 970 969.552 -0.42657 -0.42600 0.090%
01/31/95 1.015844 -3.07785 -3.030 -3.01747 -2.97000 0.090% 0.3125%
04/28/95 1.121590 -3.38763 -3.020 -3.32117 -2.96100 0.090% 0.3125%
06/30/95 1.192826 -0.47548 -0.399 -0.46615 -0.39100 0.090%
07/31/95 1.237822 -3.72547 -3.010 -3.65238 -2.95100 0.090% 0.3125%
10/31/95 1.290394 -3.87156 -3.000 -3.79560 -2.94100 0.090% 0.3125%
12/31/95 1.378004 -0.55362 -0.402 -0.54276 -0.39400 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 956.691 937.922
Account Value $1,318.32 $1,292.46
Surrender Value $1,318.32 $1,292.46
Total Return 31.83% 29.25%
Annualized Return 10.09%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.994843 -0.14314 -0.14400 0.090%
07/31/93 1.002034 -3.03696 -3.03100 0.090% 0.3125%
10/29/93 1.025445 -3.09821 -3.02100 0.090% 0.3125%
12/31/93 1.015422 -0.43594 -0.42900 0.090%
01/31/94 1.054051 -3.17327 -3.01100 0.090% 0.3125%
04/29/94 1.005932 -3.01894 -3.00100 0.090% 0.3125%
06/30/94 0.990850 -0.43216 -0.43600 0.090%
07/29/94 1.022512 -3.05772 -2.99000 0.090% 0.3125%
10/31/94 1.029193 -3.06808 -2.98100 0.090% 0.3125%
12/31/94 0.997135 970 972.787 -0.42536 -0.42700 0.090%
01/31/95 1.012289 -3.07732 -3.040 -3.00691 -2.97000 0.090% 0.3125%
04/28/95 1.117132 -3.38542 -3.030 -3.30796 -2.96100 0.090% 0.3125%
06/30/95 1.187676 -0.47522 -0.400 -0.46435 -0.39100 0.090%
07/31/95 1.232269 -3.72113 -3.020 -3.63599 -2.95100 0.090% 0.3125%
10/31/95 1.283958 -3.86510 -3.010 -3.77667 -2.94100 0.090% 0.3125%
12/31/95 1.370688 -0.55277 -0.403 -0.54012 -0.39400 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 959.884 937.921
Account Value $1,315.70 $1,285.60
Surrender Value $1,249.92 $1,234.17
Total Return 24.99% 23.42%
Annualized Return 8.20%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.994598 -0.14312 -0.14400 0.090%
07/31/93 1.001663 -3.03584 -3.03100 0.090% 0.3125%
10/29/93 1.024683 -3.09590 -3.02100 0.090% 0.3125%
12/31/93 1.014405 -0.43566 -0.42900 0.090%
01/31/94 1.052861 -3.16969 -3.01100 0.090% 0.3125%
04/29/94 1.004433 -3.01444 -3.00100 0.090% 0.3125%
06/30/94 0.989122 -0.43157 -0.43600 0.090%
07/29/94 1.020606 -3.05202 -2.99000 0.090% 0.3125%
10/31/94 1.026878 -3.06118 -2.98100 0.090% 0.3125%
12/31/94 0.994647 970 975.220 -0.42446 -0.42700 0.090%
01/31/95 1.009630 -3.07691 -3.048 -2.99901 -2.97000 0.090% 0.3125%
04/28/95 1.113800 -3.38377 -3.038 -3.29810 -2.96100 0.090% 0.3125%
06/30/95 1.183828 -0.47503 -0.401 -0.46300 -0.39100 0.090%
07/31/95 1.228120 -3.71788 -3.027 -3.62375 -2.95100 0.090% 0.3125%
10/31/95 1.279152 -3.86026 -3.018 -3.76253 -2.94100 0.090% 0.3125%
12/31/95 1.365227 -0.55214 -0.404 -0.53816 -0.39400 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 962.284 937.921
Account Value $1,313.74 $1,280.48
Surrender Value $1,248.05 $1,229.26
Total Return 24.80% 22.93%
Annualized Return 8.04%
</TABLE>
<PAGE> 38
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.994271 -0.14310 -0.14400 0.090%
07/31/93 1.001170 -3.03435 -3.03100 0.090% 0.3125%
10/29/93 1.023667 -3.09283 -3.02100 0.090% 0.3125%
12/31/93 1.013050 -0.43530 -0.43000 0.090%
01/31/94 1.051276 -3.16491 -3.01100 0.090% 0.3125%
04/29/94 1.002438 -3.00845 -3.00100 0.090% 0.3125%
06/30/94 0.986821 -0.43079 -0.43700 0.090%
07/29/94 1.018071 -3.04443 -2.99000 0.090% 0.3125%
10/31/94 1.023800 -3.05200 -2.98100 0.090% 0.3125%
12/31/94 0.991340 970 978.474 -0.42326 -0.42700 0.090%
01/31/95 1.006096 -3.07637 -3.058 -2.98850 -2.97000 0.090% 0.3125%
04/28/95 1.109374 -3.38157 -3.048 -3.28498 -2.96100 0.090% 0.3125%
06/30/95 1.178717 -0.47477 -0.403 -0.46121 -0.39100 0.090%
07/31/95 1.222611 -3.71355 -3.037 -3.60749 -2.95100 0.090% 0.3125%
10/31/95 1.272772 -3.85383 -3.028 -3.74376 -2.94100 0.090% 0.3125%
12/31/95 1.357979 -0.55129 -0.406 -0.53555 -0.39400 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 965.494 937.919
Account Value $1,311.12 $1,273.67
Surrender Value $1,245.56 $1,222.73
Total Return 24.56% 22.27%
Annualized Return 7.83%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 0.994026 -0.14308 -0.14400 0.090%
07/31/93 1.000800 -3.03322 -3.03100 0.090% 0.3125%
10/29/93 1.022906 -3.09053 -3.02100 0.090% 0.3125%
12/31/93 1.012035 -0.43503 -0.43000 0.090%
01/31/94 1.050090 -3.16134 -3.01100 0.090% 0.3125%
04/29/94 1.000944 -3.00397 -3.00100 0.090% 0.3125%
06/30/94 0.985099 -0.43020 -0.43700 0.090%
07/29/94 1.016174 -3.03876 -2.99000 0.090% 0.3125%
10/31/94 1.021497 -3.04513 -2.98100 0.090% 0.3125%
12/31/94 0.988866 970 980.922 -0.42236 -0.42700 0.090%
01/31/95 1.003454 -3.07597 -3.065 -2.98066 -2.97000 0.090% 0.3125%
04/28/95 1.106065 -3.37992 -3.056 -3.27519 -2.96100 0.090% 0.3125%
06/30/95 1.174898 -0.47458 -0.404 -0.45987 -0.39100 0.090%
07/31/95 1.218495 -3.71031 -3.045 -3.59534 -2.95100 0.090% 0.3125%
10/31/95 1.268008 -3.84901 -3.035 -3.72974 -2.94100 0.090% 0.3125%
12/31/95 1.352569 -0.55066 -0.407 -0.53360 -0.39500 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 967.91 937.918
Account Value $1,309.17 $1,268.60
Surrender Value $1,243.71 $1,217.85
Total Return 24.37% 21.79%
Annualized Return 7.67%
</TABLE>
<PAGE> 39
GOLDTRACK STANDARDIZED PERFORMANCE
Am Odyssey LTB - with CHART fees
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.023773 -0.14521 -0.14200 0.090%
07/31/93 1.032152 -3.12825 -3.03100 0.090% 0.3125%
10/29/93 1.100517 -3.32503 -3.02100 0.090% 0.3125%
12/31/93 1.089473 -0.45827 -0.42100 0.090%
01/31/94 1.100870 -3.31426 -3.01100 0.090% 0.3125%
04/29/94 1.023458 -3.07157 -3.00100 0.090% 0.3125%
06/30/94 1.017150 -0.45379 -0.44600 0.090%
07/29/94 1.041026 -3.11308 -2.99000 0.090% 0.3125%
10/31/94 1.010764 -3.01314 -2.98100 0.090% 0.3125%
12/31/94 1.020606 970 950.416 -0.43601 -0.42700 0.090%
01/31/95 1.042996 -3.09775 -2.970 -3.09812 -2.97000 0.090% 0.3125%
04/28/95 1.095851 -3.24456 -2.961 -3.24495 -2.96100 0.090% 0.3125%
06/30/95 1.157715 -0.46291 -0.400 -0.46297 -0.40000 0.090%
07/31/95 1.148442 -3.38821 -2.950 -3.38861 -2.95100 0.090% 0.3125%
10/31/95 1.202000 -3.53514 -2.941 -3.53556 -2.94100 0.090% 0.3125%
12/31/95 1.242304 -0.50663 -0.408 -0.50669 -0.40800 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 937.786 937.898
Account Value $1,165.02 $1,165.15
Surrender Value $1,165.02 $1,165.15
Total Return 16.50% 16.52%
Annualized Return 5.90%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.023437 -0.14519 -0.14200 0.090%
07/31/93 1.031643 -3.12671 -3.03100 0.090% 0.3125%
10/29/93 1.099427 -3.32174 -3.02100 0.090% 0.3125%
12/31/93 1.088019 -0.45788 -0.42100 0.090%
01/31/94 1.099213 -3.30927 -3.01100 0.090% 0.3125%
04/29/94 1.021425 -3.06547 -3.00100 0.090% 0.3125%
06/30/94 1.014784 -0.45296 -0.44600 0.090%
07/29/94 1.038440 -3.10535 -2.99000 0.090% 0.3125%
10/31/94 1.007733 -3.00411 -2.98100 0.090% 0.3125%
12/31/94 1.017212 970 953.587 -0.43478 -0.42700 0.090%
01/31/95 1.039345 -3.09721 -2.980 -3.08727 -2.97000 0.090% 0.3125%
04/28/95 1.091495 -3.24245 -2.971 -3.23205 -2.96100 0.090% 0.3125%
06/30/95 1.152716 -0.46267 -0.401 -0.46118 -0.40000 0.090%
07/31/95 1.143288 -3.38426 -2.960 -3.37341 -2.95100 0.090% 0.3125%
10/31/95 1.196004 -3.52924 -2.951 -3.51792 -2.94100 0.090% 0.3125%
12/31/95 1.235707 -0.50586 -0.409 -0.50424 -0.40800 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 940.915 937.898
Account Value $1,162.70 $1,158.97
Surrender Value $1,104.56 $1,112.61
Total Return 10.46% 11.26%
Annualized Return 4.08%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.023185 -0.14517 -0.14200 0.090%
07/31/93 1.031262 -3.12556 -3.03100 0.090% 0.3125%
10/29/93 1.098610 -3.31927 -3.02100 0.090% 0.3125%
12/31/93 1.086929 -0.45759 -0.42100 0.090%
01/31/94 1.097972 -3.30553 -3.01100 0.090% 0.3125%
04/29/94 1.019902 -3.06090 -3.00100 0.090% 0.3125%
06/30/94 1.013014 -0.45235 -0.44700 0.090%
07/29/94 1.036504 -3.09956 -2.99000 0.090% 0.3125%
10/31/94 1.005466 -2.99734 -2.98100 0.090% 0.3125%
12/31/94 1.014673 970 955.973 -0.43385 -0.42800 0.090%
01/31/95 1.036615 -3.09680 -2.987 -3.07916 -2.97000 0.090% 0.3125%
04/28/95 1.088239 -3.24086 -2.978 -3.22240 -2.96100 0.090% 0.3125%
06/30/95 1.148980 -0.46248 -0.403 -0.45985 -0.40000 0.090%
07/31/95 1.139438 -3.38130 -2.968 -3.36204 -2.95100 0.090% 0.3125%
10/31/95 1.191526 -3.52482 -2.958 -3.50474 -2.94100 0.090% 0.3125%
12/31/95 1.230782 -0.50529 -0.411 -0.50241 -0.40800 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 943.268 937.896
Account Value $1,160.96 $1,154.35
Surrender Value $1,102.91 $1,108.17
Total Return 10.29% 10.82%
Annualized Return 3.92%
</TABLE>
<PAGE> 40
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.022849 -0.14515 -0.14200 0.090%
07/31/93 1.030754 -3.12402 -3.03100 0.090% 0.3125%
10/29/93 1.097522 -3.31598 -3.02100 0.090% 0.3125%
12/31/93 1.085478 -0.45720 -0.42100 0.090%
01/31/94 1.096320 -3.30056 -3.01100 0.090% 0.3125%
04/29/94 1.017876 -3.05482 -3.00100 0.090% 0.3125%
06/30/94 1.010657 -0.45153 -0.44700 0.090%
07/29/94 1.033929 -3.09185 -2.99000 0.090% 0.3125%
10/31/94 1.002451 -2.98836 -2.98100 0.090% 0.3125%
12/31/94 1.011298 970 959.163 -0.43263 -0.42800 0.090%
01/31/95 1.032986 -3.09626 -2.997 -3.06838 -2.97000 0.090% 0.3125%
04/28/95 1.083913 -3.23875 -2.988 -3.20959 -2.96100 0.090% 0.3125%
06/30/95 1.144018 -0.46224 -0.404 -0.45808 -0.40000 0.090%
07/31/95 1.134324 -3.37736 -2.977 -3.34695 -2.95100 0.090% 0.3125%
10/31/95 1.185581 -3.51894 -2.968 -3.48726 -2.94100 0.090% 0.3125%
12/31/95 1.224246 -0.50453 -0.412 -0.49998 -0.40800 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 946.417 937.896
Account Value $1,158.65 $1,148.22
Surrender Value $1,100.71 $1,102.29
Total Return 10.07% 10.23%
Annualized Return 3.72%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.022597 -0.14513 -0.14200 0.090%
07/31/93 1.030373 -3.12286 -3.03100 0.090% 0.3125%
10/29/93 1.096706 -3.31352 -3.02100 0.090% 0.3125%
12/31/93 1.084391 -0.45691 -0.42100 0.090%
01/31/94 1.095083 -3.29683 -3.01100 0.090% 0.3125%
04/29/94 1.016359 -3.05026 -3.00100 0.090% 0.3125%
06/30/94 1.008893 -0.45091 -0.44700 0.090%
07/29/94 1.032002 -3.08609 -2.99000 0.090% 0.3125%
10/31/94 1.000196 -2.98163 -2.98100 0.090% 0.3125%
12/31/94 1.008774 970 961.563 -0.43171 -0.42800 0.090%
01/31/95 1.030272 -3.09585 -3.005 -3.06032 -2.97000 0.090% 0.3125%
04/28/95 1.080679 -3.23717 -2.995 -3.20002 -2.96100 0.090% 0.3125%
06/30/95 1.140311 -0.46206 -0.405 -0.45675 -0.40100 0.090%
07/31/95 1.130504 -3.37441 -2.985 -3.33568 -2.95100 0.090% 0.3125%
10/31/95 1.181142 -3.51454 -2.976 -3.47420 -2.94100 0.090% 0.3125%
12/31/95 1.219367 -0.50395 -0.413 -0.49817 -0.40900 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 948.784 937.894
Account Value $1,156.92 $1,143.64
Surrender Value $1,099.07 $1,093.64
Total Return 9.91% 9.36%
3.41%
</TABLE>
<PAGE> 41
GOLDTRACK STANDARDIZED PERFORMANCE
Am Odyssey Interm. Term Bond with CHART fees
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.014036 -0.14451 -0.14300 0.090%
07/31/93 1.016525 -3.08089 -3.03100 0.090% 0.3125%
10/29/93 1.042850 -3.15080 -3.02100 0.090% 0.3125%
12/31/93 1.039273 -0.44527 -0.42800 0.090%
01/31/94 1.047892 -3.15473 -3.01100 0.090% 0.3125%
04/29/94 1.006013 -3.01919 -3.00100 0.090% 0.3125%
06/30/94 1.002973 -0.43991 -0.43900 0.090%
07/29/94 1.014587 -3.03401 -2.99000 0.090% 0.3125%
10/31/94 1.004967 -2.99586 -2.98100 0.090% 0.3125%
12/31/94 1.003647 970 966.475 -0.42935 -0.42800 0.090%
01/31/95 1.017778 -3.07393 -3.020 -3.02320 -2.97000 0.090% 0.3125%
04/28/95 1.055931 -3.17919 -3.011 -3.12673 -2.96100 0.090% 0.3125%
06/30/95 1.093373 -0.45317 -0.414 -0.44569 -0.40800 0.090%
07/31/95 1.091774 -3.27542 -3.000 -3.22137 -2.95100 0.090% 0.3125%
10/31/95 1.120273 -3.35042 -2.991 -3.29513 -2.94100 0.090% 0.3125%
12/31/95 1.147483 -0.48102 -0.419 -0.47308 -0.41200 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 953.62 937.884
Account Value $1,094.26 $1,076.21
Surrender Value $1,094.26 $1,076.21
Total Return 9.43% 7.62%
Annualized Return 2.79%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.013703 -0.14449 -0.14300 0.090%
07/31/93 1.016024 -3.07937 -3.03100 0.090% 0.3125%
10/29/93 1.041816 -3.14767 -3.02100 0.090% 0.3125%
12/31/93 1.037885 -0.44490 -0.42900 0.090%
01/31/94 1.046314 -3.14998 -3.01100 0.090% 0.3125%
04/29/94 1.004014 -3.01319 -3.00100 0.090% 0.3125%
06/30/94 1.000640 -0.43911 -0.43900 0.090%
07/29/94 1.012066 -3.02647 -2.99000 0.090% 0.3125%
10/31/94 1.001954 -2.98687 -2.98100 0.090% 0.3125%
12/31/94 1.000309 970 969.700 -0.42813 -0.42800 0.090%
01/31/95 1.014215 -3.07339 -3.030 -3.01262 -2.97000 0.090% 0.3125%
04/28/95 1.051733 -3.17712 -3.021 -3.11430 -2.96100 0.090% 0.3125%
06/30/95 1.088651 -0.45293 -0.416 -0.44397 -0.40800 0.090%
07/31/95 1.086874 -3.27160 -3.010 -3.20691 -2.95100 0.090% 0.3125%
10/31/95 1.114684 -3.34483 -3.001 -3.27869 -2.94100 0.090% 0.3125%
12/31/95 1.141389 -0.48029 -0.421 -0.47080 -0.41200 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 956.801 937.883
Account Value $1,092.08 $1,070.49
Surrender Value $1,037.48 $1,027.67
Total Return 3.75% 2.77%
Annualized Return 1.03%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.013453 -0.14447 -0.14300 0.090%
07/31/93 1.015649 -3.07823 -3.03100 0.090% 0.3125%
10/29/93 1.041042 -3.14533 -3.02100 0.090% 0.3125%
12/31/93 1.036845 -0.44462 -0.42900 0.090%
01/31/94 1.045133 -3.14643 -3.01100 0.090% 0.3125%
04/29/94 1.002518 -3.00870 -3.00100 0.090% 0.3125%
06/30/94 0.998893 -0.43851 -0.43900 0.090%
07/29/94 1.010180 -3.02083 -2.99000 0.090% 0.3125%
10/31/94 0.999700 -2.98015 -2.98100 0.090% 0.3125%
12/31/94 0.997812 970 972.127 -0.42722 -0.42800 0.090%
01/31/95 1.011551 -3.07299 -3.038 -3.00470 -2.97000 0.090% 0.3125%
04/28/95 1.048596 -3.17557 -3.028 -3.10501 -2.96100 0.090% 0.3125%
06/30/95 1.085123 -0.45275 -0.417 -0.44269 -0.40800 0.090%
07/31/95 1.083214 -3.26875 -3.018 -3.19611 -2.95100 0.090% 0.3125%
10/31/95 1.110510 -3.34064 -3.008 -3.26641 -2.94100 0.090% 0.3125%
12/31/95 1.136839 -0.47975 -0.422 -0.46909 -0.41300 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 959.196 937.882
Account Value $1,090.45 $1,066.22
Surrender Value $1,035.93 $1,023.57
Total Return 3.59% 2.36%
Annualized Return 0.88%
</TABLE>
<PAGE> 42
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.013120 -0.14445 -0.14300 0.090%
07/31/93 1.015148 -3.07671 -3.03100 0.090% 0.3125%
10/29/93 1.040010 -3.14221 -3.02100 0.090% 0.3125%
12/31/93 1.035460 -0.44425 -0.42900 0.090%
01/31/94 1.043560 -3.14169 -3.01100 0.090% 0.3125%
04/29/94 1.000526 -3.00272 -3.00100 0.090% 0.3125%
06/30/94 0.996570 -0.43771 -0.43900 0.090%
07/29/94 1.007670 -3.01333 -2.99000 0.090% 0.3125%
10/31/94 0.996702 -2.97122 -2.98100 0.090% 0.3125%
12/31/94 0.994493 970 975.371 -0.42602 -0.42800 0.090%
01/31/95 1.008010 -3.07245 -3.048 -2.99419 -2.97000 0.090% 0.3125%
04/28/95 1.044427 -3.17350 -3.039 -3.09267 -2.96100 0.090% 0.3125%
06/30/95 1.080437 -0.45252 -0.419 -0.44099 -0.40800 0.090%
07/31/95 1.078353 -3.26493 -3.028 -3.18177 -2.95100 0.090% 0.3125%
10/31/95 1.104969 -3.33506 -3.018 -3.25011 -2.94100 0.090% 0.3125%
12/31/95 1.130802 -0.47903 -0.424 -0.46683 -0.41300 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 962.395 937.882
Account Value $1,088.28 $1,060.56
Surrender Value $1,033.86 $1,015.56
Total Return 3.39% 1.56%
Annualized Return 0.58%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.012871 -0.14443 -0.14300 0.090%
07/31/93 1.014773 -3.07558 -3.03100 0.090% 0.3125%
10/29/93 1.039237 -3.13988 -3.02100 0.090% 0.3125%
12/31/93 1.034422 -0.44397 -0.42900 0.090%
01/31/94 1.042381 -3.13814 -3.01100 0.090% 0.3125%
04/29/94 0.999034 -2.99824 -3.00100 0.090% 0.3125%
06/30/94 0.994831 -0.43712 -0.43900 0.090%
07/29/94 1.005791 -3.00771 -2.99000 0.090% 0.3125%
10/31/94 0.994460 -2.96453 -2.98100 0.090% 0.3125%
12/31/94 0.992011 970 977.812 -0.42511 -0.42900 0.090%
01/31/95 1.005362 -3.07205 -3.056 -2.98632 -2.97000 0.090% 0.3125%
04/28/95 1.041312 -3.17195 -3.046 -3.08344 -2.96100 0.090% 0.3125%
06/30/95 1.076935 -0.45234 -0.420 -0.43972 -0.40800 0.090%
07/31/95 1.074721 -3.26208 -3.035 -3.17105 -2.95100 0.090% 0.3125%
10/31/95 1.100832 -3.33089 -3.026 -3.23794 -2.94100 0.090% 0.3125%
12/31/95 1.126295 -0.47849 -0.425 -0.46514 -0.41300 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 964.804 937.881
Account Value $1,086.65 $1,056.33
Surrender Value $1,032.32 $1,006.33
Total Return 3.23% 0.63%
Annualized Return 0.24%
</TABLE>
<PAGE> 43
GOLDTRACK STANDARDIZED PERFORMANCE
Am Odyssey STB with CHART fees
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.007080 -0.14401 -0.14300 0.090%
07/31/93 1.009583 -3.05985 -3.03100 0.090% 0.3125%
10/29/93 1.022038 -3.08792 -3.02100 0.090% 0.3125%
12/31/93 1.024557 -0.44057 -0.43000 0.090%
01/31/94 1.028124 -3.09522 -3.01100 0.090% 0.3125%
04/29/94 1.013430 -3.04144 -3.00100 0.090% 0.3125%
06/30/94 1.013412 -0.43899 -0.43300 0.090%
07/29/94 1.023067 -3.05939 -2.99000 0.090% 0.3125%
10/31/94 1.020468 -3.04208 -2.98100 0.090% 0.3125%
12/31/94 1.017011 970 953.775 -0.43444 -0.42700 0.090%
01/31/95 1.028069 -3.06421 -2.981 -3.05379 -2.97000 0.090% 0.3125%
04/28/95 1.058055 -3.14373 -2.971 -3.13304 -2.96100 0.090% 0.3125%
06/30/95 1.085252 -0.44833 -0.413 -0.44680 -0.41200 0.090%
07/31/95 1.085746 -3.21452 -2.961 -3.20359 -2.95100 0.090% 0.3125%
10/31/95 1.102924 -3.25517 -2.951 -3.24411 -2.94100 0.090% 0.3125%
12/31/95 1.120762 -0.46732 -0.417 -0.46573 -0.41600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 941.081 937.881
Account Value $1,054.73 $1,051.14
Surrender Value $1,054.73 $1,051.14
Total Return 5.47% 5.11%
Annualized Return 1.89%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.006749 -0.14399 -0.14300 0.090%
07/31/93 1.009086 -3.05834 -3.03100 0.090% 0.3125%
10/29/93 1.021025 -3.08485 -3.02100 0.090% 0.3125%
12/31/93 1.023189 -0.44020 -0.43000 0.090%
01/31/94 1.026576 -3.09056 -3.01100 0.090% 0.3125%
04/29/94 1.011416 -3.03540 -3.00100 0.090% 0.3125%
06/30/94 1.011055 -0.43819 -0.43300 0.090%
07/29/94 1.020526 -3.05179 -2.99000 0.090% 0.3125%
10/31/94 1.017408 -3.03296 -2.98100 0.090% 0.3125%
12/31/94 1.013628 970 956.959 -0.43321 -0.42700 0.090%
01/31/95 1.024470 -3.06367 -2.990 -3.04310 -2.97000 0.090% 0.3125%
04/28/95 1.053850 -3.14169 -2.981 -3.12059 -2.96100 0.090% 0.3125%
06/30/95 1.080565 -0.44810 -0.415 -0.44509 -0.41200 0.090%
07/31/95 1.080874 -3.21078 -2.971 -3.18922 -2.95100 0.090% 0.3125%
10/31/95 1.097422 -3.24975 -2.961 -3.22792 -2.94100 0.090% 0.3125%
12/31/95 1.114809 -0.46661 -0.419 -0.46348 -0.41600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 944.222 937.881
Account Value $1,052.63 $1,045.56
Surrender Value $1,000.00 $1,003.74
Total Return -0.00% 0.37%
Annualized Return 0.14%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.006501 -0.14397 -0.14300 0.090%
07/31/93 1.008713 -3.05721 -3.03100 0.090% 0.3125%
10/29/93 1.020266 -3.08256 -3.02100 0.090% 0.3125%
12/31/93 1.022163 -0.43993 -0.43000 0.090%
01/31/94 1.025417 -3.08707 -3.01100 0.090% 0.3125%
04/29/94 1.009908 -3.03087 -3.00100 0.090% 0.3125%
06/30/94 1.009290 -0.43759 -0.43400 0.090%
07/29/94 1.018624 -3.04610 -2.99000 0.090% 0.3125%
10/31/94 1.015120 -3.02613 -2.98100 0.090% 0.3125%
12/31/94 1.011099 970 959.352 -0.43229 -0.42800 0.090%
01/31/95 1.021780 -3.06327 -2.998 -3.03510 -2.97000 0.090% 0.3125%
04/28/95 1.050706 -3.14015 -2.989 -3.11127 -2.96100 0.090% 0.3125%
06/30/95 1.077063 -0.44793 -0.416 -0.44381 -0.41200 0.090%
07/31/95 1.077234 -3.20797 -2.978 -3.17847 -2.95100 0.090% 0.3125%
10/31/95 1.093312 -3.24567 -2.969 -3.21583 -2.94100 0.090% 0.3125%
12/31/95 1.110366 -0.46609 -0.420 -0.46180 -0.41600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 946.582 937.879
Account Value $1,051.05 $1,041.39
Surrender Value $998.50 $999.73
Total Return -0.15% -0.03%
Annualized Return -0.01%
</TABLE>
<PAGE> 44
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.006170 -0.14395 -0.14300 0.090%
07/31/93 1.008216 -3.05570 -3.03100 0.090% 0.3125%
10/29/93 1.019255 -3.07951 -3.02100 0.090% 0.3125%
12/31/93 1.020798 -0.43956 -0.43100 0.090%
01/31/94 1.023873 -3.08241 -3.01100 0.090% 0.3125%
04/29/94 1.007902 -3.02485 -3.00100 0.090% 0.3125%
06/30/94 1.006943 -0.43679 -0.43400 0.090%
07/29/94 1.016093 -3.03852 -2.99000 0.090% 0.3125%
10/31/94 1.012076 -3.01706 -2.98100 0.090% 0.3125%
12/31/94 1.007736 970 962.554 -0.43107 -0.42800 0.090%
01/31/95 1.018203 -3.06274 -3.008 -3.02447 -2.97000 0.090% 0.3125%
04/28/95 1.046529 -3.13810 -2.999 -3.09890 -2.96100 0.090% 0.3125%
06/30/95 1.072411 -0.44770 -0.417 -0.44210 -0.41200 0.090%
07/31/95 1.072399 -3.20423 -2.988 -3.16420 -2.95100 0.090% 0.3125%
10/31/95 1.087857 -3.24026 -2.979 -3.19978 -2.94100 0.090% 0.3125%
12/31/95 1.104469 -0.46539 -0.421 -0.45957 -0.41600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 949.742 937.878
Account Value $1,048.96 $1,035.86
Surrender Value $996.51 $990.86
Total Return -0.35% -0.91%
Annualized Return -0.34%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units S/A Fee CHART Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C>
05/01/93 1.000000 970 970.00000 0.090%
06/30/93 1.005922 -0.14393 -0.14300 0.090%
07/31/93 1.007843 -3.05457 -3.03100 0.090% 0.3125%
10/29/93 1.018497 -3.07722 -3.02100 0.090% 0.3125%
12/31/93 1.019775 -0.43928 -0.43100 0.090%
01/31/94 1.022717 -3.07893 -3.01100 0.090% 0.3125%
04/29/94 1.006399 -3.02034 -3.00100 0.090% 0.3125%
06/30/94 1.005186 -0.43619 -0.43400 0.090%
07/29/94 1.014199 -3.03286 -2.99000 0.090% 0.3125%
10/31/94 1.009800 -3.01027 -2.98100 0.090% 0.3125%
12/31/94 1.005221 970 964.962 -0.43016 -0.42800 0.090%
01/31/95 1.015528 -3.06233 -3.016 -3.01653 -2.97000 0.090% 0.3125%
04/28/95 1.043407 -3.13657 -3.006 -3.08966 -2.96100 0.090% 0.3125%
06/30/95 1.068936 -0.44752 -0.419 -0.44083 -0.41200 0.090%
07/31/95 1.068787 -3.20142 -2.995 -3.15354 -2.95100 0.090% 0.3125%
10/31/95 1.083784 -3.23620 -2.986 -3.18780 -2.94100 0.090% 0.3125%
12/31/95 1.100067 -0.46486 -0.423 -0.45791 -0.41600 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 952.117 937.878
Account Value $1,047.39 $1,031.73
Surrender Value $995.02 $981.73
Total Return -0.50% -1.83%
Annualized Return -0.69%
</TABLE>
<PAGE> 45
GOLDTRACK STANDARDIZED PERFORMANCE
Smith Barney Income & Growth
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.986850 -0.02450 -0.025 0.090%
12/31/94 0.984453 1000 1015.793 -0.44353 -0.451 0.090%
06/30/95 1.142243 -0.48606 -0.426 -0.47828 -0.419 0.090%
12/31/95 1.302140 -0.55844 -0.429 -0.54949 -0.422 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1014.938 998.683
Account Value $1,321.59 $1,300.43
Cash Surrender Value $1,321.59 $1,300.43
Total Return 32.16% 30.04%
Annualized Return 18.71%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.986796 -0.02449 -0.025 0.090%
12/31/94 0.983413 1000 1016.867 -0.44329 -0.451 0.090%
06/30/95 1.139900 -0.48580 -0.426 -0.47752 -0.419 0.090%
12/31/95 1.298175 -0.55759 -0.430 -0.54808 -0.422 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1016.011 998.683
Account Value $1,318.96 $1,296.47
Cash Surrender Value $1,253.01 $1,231.64
Total Return 25.30% 23.16%
Annualized Return 14.57%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.986756 -0.02449 -0.025 0.090%
12/31/94 0.982633 1000 1017.674 -0.44310 -0.451 0.090%
06/30/95 1.138146 -0.48561 -0.427 -0.47695 -0.419 0.090%
12/31/95 1.295209 -0.55695 -0.430 -0.54701 -0.422 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1016.817 998.683
Account Value $1,316.99 $1,293.50
Cash Surrender Value $1,251.14 $1,228.83
Total Return 25.11% 22.88%
Annualized Return 14.40%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.986701 -0.02449 -0.025 0.090%
12/31/94 0.981595 1000 1018.750 -0.44286 -0.451 0.090%
06/30/95 1.135811 -0.48535 -0.427 -0.47619 -0.419 0.090%
12/31/95 1.291265 -0.55610 -0.431 -0.54560 -0.423 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1017.892 998.682
Account Value $1,314.37 $1,289.56
Cash Surrender Value $1,248.65 $1,225.08
Total Return 24.86% 22.51%
Annualized Return 14.17%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.986661 -0.02449 -0.025 0.090%
12/31/94 0.980817 1000 1019.558 -0.44267 -0.451 0.090%
06/30/95 1.134063 -0.48515 -0.428 -0.47562 -0.419 0.090%
12/31/95 1.288314 -0.55546 -0.431 -0.54455 -0.423 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1018.699 998.682
Account Value $1,312.40 $1,286.62
Cash Surrender Value $1,246.78 $1,222.29
Total Return 24.68% 22.23%
Annualized Return 14.00%
</TABLE>
<PAGE> 46
GOLDTRACK STANDARDIZED PERFORMANCE
Alliance Growth Portfolio
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.985613 -0.02448 -0.025 0.090%
12/31/94 1.050345 1000 952.068 -0.45808 -0.436 0.090%
06/30/95 1.279161 -0.49902 -0.390 -0.52390 -0.410 0.090%
12/31/95 1.407993 -0.57539 -0.409 -0.60408 -0.429 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 951.269 998.700
Account Value $1,339.38 $1,406.16
Cash Surrender Value $1,339.38 $1,406.16
Total Return 33.94% 40.62%
Annualized Return 24.93%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.985559 -0.02448 -0.025 0.090%
12/31/94 1.049235 1000 953.075 -0.45782 -0.436 0.090%
06/30/95 1.276538 -0.49874 -0.391 -0.52306 -0.410 0.090%
12/31/95 1.403705 -0.57452 -0.409 -0.60253 -0.429 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 952.275 998.700
Account Value $1,336.71 $1,401.88
Cash Surrender Value $1,269.88 $1,331.79
Total Return 26.99% 33.18%
Annualized Return 20.57%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.985518 -0.02448 -0.025 0.090%
12/31/94 1.048403 1000 953.832 -0.45762 -0.436 0.090%
06/30/95 1.274573 -0.49854 -0.391 -0.52243 -0.410 0.090%
12/31/95 1.400498 -0.57387 -0.410 -0.60137 -0.429 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 953.031 998.700
Account Value $1,334.72 $1,398.68
Cash Surrender Value $1,267.98 $1,328.74
Total Return 26.80% 32.87%
Annualized Return 20.39%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.985464 -0.02448 -0.025 0.090%
12/31/94 1.047296 1000 954.840 -0.45736 -0.437 0.090%
06/30/95 1.271959 -0.49827 -0.392 -0.52159 -0.410 0.090%
12/31/95 1.396233 -0.57300 -0.410 -0.59982 -0.430 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 954.038 998.698
Account Value $1,332.06 $1,394.42
Cash Surrender Value $1,265.46 $1,324.69
Total Return 26.55% 32.47%
Annualized Return 20.15%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.985424 -0.02448 -0.025 0.090%
12/31/94 1.046466 1000 955.597 -0.45716 -0.437 0.090%
06/30/95 1.270002 -0.49806 -0.392 -0.52096 -0.410 0.090%
12/31/95 1.393043 -0.57234 -0.411 -0.59866 -0.430 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 954.794 998.698
Account Value $1,330.07 $1,391.23
Cash Surrender Value $1,263.57 $1,321.67
Total Return 26.36% 32.17%
Annualized Return 19.97%
</TABLE>
<PAGE> 47
GOLDTRACK STANDARDIZED PERFORMANCE
Smith Barney International Equity
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.026833 -0.02499 -0.024 0.090%
12/31/94 0.957827 1000 1044.030 -0.44654 -0.466 0.090%
06/30/95 1.017604 -0.46404 -0.456 -0.44425 -0.437 0.090%
12/31/95 1.059457 -0.48770 -0.460 -0.46691 -0.441 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1043.114 998.632
Account Value $1,105.13 $1,058.01
Cash Surrender Value $1,105.13 $1,058.01
Total Return 10.51% 5.80%
Annualized Return 3.75%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.026777 -0.02499 -0.024 0.090%
12/31/94 0.956815 1000 1045.134 -0.44630 -0.466 0.090%
06/30/95 1.015515 -0.46380 -0.457 -0.44356 -0.437 0.090%
12/31/95 1.056228 -0.48697 -0.461 -0.46571 -0.441 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1044.216 998.632
Account Value $1,102.93 $1,054.78
Cash Surrender Value $1,047.78 $1,002.04
Total Return 4.78% 0.20%
Annualized Return 0.13%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.026735 -0.02499 -0.024 0.090%
12/31/94 0.956056 1000 1045.964 -0.44612 -0.467 0.090%
06/30/95 1.013951 -0.46363 -0.457 -0.44303 -0.437 0.090%
12/31/95 1.053813 -0.48642 -0.462 -0.46482 -0.441 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1045.045 998.631
Account Value $1,101.28 $1,052.37
Cash Surrender Value $1,046.22 $999.75
Total Return 4.62% -0.02%
Annualized Return -0.02%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.026679 -0.02499 -0.024 0.090%
12/31/94 0.955045 1000 1047.071 -0.44588 -0.467 0.090%
06/30/95 1.011869 -0.46339 -0.458 -0.44234 -0.437 0.090%
12/31/95 1.050601 -0.48569 -0.462 -0.46363 -0.441 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1046.151 998.631
Account Value $1,099.09 $1,049.16
Cash Surrender Value $1,044.13 $996.70
Total Return 4.41% -0.33%
Annualized Return -0.22%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.026636 -0.02499 -0.024 0.090%
12/31/94 0.954288 1000 1047.902 -0.44570 -0.467 0.090%
06/30/95 1.010310 -0.46321 -0.458 -0.44182 -0.437 0.090%
12/31/95 1.048198 -0.48514 -0.463 -0.46273 -0.441 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1046.981 998.631
Account Value $1,097.44 $1,046.76
Cash Surrender Value $1,042.57 $994.42
Total Return 4.26% -0.56%
Annualized Return -0.36%
</TABLE>
<PAGE> 48
GOLDTRACK STANDARDIZED PERFORMANCE
Putnam Diversified Income Portfolio
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000836 -0.02467 -0.025 0.090%
12/31/94 1.011554 1000 988.578 -0.45278 -0.448 0.090%
06/30/95 1.108794 -0.47163 -0.425 -0.47685 -0.430 0.090%
12/31/95 1.180319 -0.50895 -0.431 -0.51459 -0.436 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 987.722 998.661
Account Value $1,165.83 $1,178.74
Cash Surrender Value $1,165.83 $1,178.74
Total Return 16.58% 17.87%
Annualized Return 11.34%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000781 -0.02467 -0.025 0.090%
12/31/94 1.010485 1000 989.624 -0.45252 -0.448 0.090%
06/30/95 1.106519 -0.47138 -0.426 -0.47610 -0.430 0.090%
12/31/95 1.176724 -0.50818 -0.432 -0.51327 -0.436 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 988.766 998.661
Account Value $1,163.50 $1,175.15
Cash Surrender Value $1,105.33 $1,116.39
Total Return 10.53% 11.64%
Annualized Return 7.45%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000740 -0.02467 -0.025 0.090%
12/31/94 1.009684 1000 990.409 -0.45233 -0.448 0.090%
06/30/95 1.104816 -0.47120 -0.426 -0.47554 -0.430 0.090%
12/31/95 1.174034 -0.50761 -0.432 -0.51228 -0.436 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 989.551 998.661
Account Value $1,161.77 $1,172.46
Cash Surrender Value $1,103.68 $1,113.84
Total Return 10.37% 11.38%
Annualized Return 7.29%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000685 -0.02467 -0.025 0.090%
12/31/94 1.008617 1000 991.457 -0.45208 -0.448 0.090%
06/30/95 1.102548 -0.47095 -0.427 -0.47479 -0.431 0.090%
12/31/95 1.170458 -0.50684 -0.433 -0.51096 -0.437 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 990.597 998.659
Account Value $1,159.45 $1,168.89
Cash Surrender Value $1,101.48 $1,110.44
Total Return 10.15% 11.04%
Annualized Return 7.08%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000644 -0.02467 -0.025 0.090%
12/31/94 1.007817 1000 992.244 -0.45189 -0.448 0.090%
06/30/95 1.100851 -0.47077 -0.428 -0.47423 -0.431 0.090%
12/31/95 1.167783 -0.50627 -0.434 -0.50998 -0.437 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 991.382 998.659
Account Value $1,157.72 $1,166.22
Cash Surrender Value $1,099.83 $1,107.91
Total Return 9.98% 10.79%
6.92%
</TABLE>
<PAGE> 49
GOLDTRACK STANDARDIZED PERFORMANCE
Smith Barney High Income
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
06/22/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000868 -0.01973 -0.020 0.090%
12/31/94 0.990541 1000 1009.549 -0.44806 -0.452 0.090%
06/30/95 1.089091 -0.47239 -0.434 -0.46770 -0.429 0.090%
12/31/95 1.172482 -0.51349 -0.438 -0.50840 -0.434 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1008.677 998.665
Account Value $1,182.66 $1,170.92
Cash Surrender Value $1,182.66 $1,170.92
Total Return 18.27% 17.09%
Annualized Return 10.89%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
06/22/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000824 -0.01973 -0.020 0.090%
12/31/94 0.989505 1000 1010.606 -0.44782 -0.453 0.090%
06/30/95 1.086869 -0.47214 -0.434 -0.46696 -0.430 0.090%
12/31/95 1.168923 -0.51272 -0.439 -0.50709 -0.434 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1009.733 998.663
Account Value $1,180.30 $1,167.36
Cash Surrender Value $1,121.29 $1,108.99
Total Return 12.13% 10.90%
Annualized Return 7.01%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
06/22/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000791 -0.01973 -0.020 0.090%
12/31/94 0.988729 1000 1011.399 -0.44763 -0.453 0.090%
06/30/95 1.085204 -0.47195 -0.435 -0.46641 -0.430 0.090%
12/31/95 1.166261 -0.51213 -0.439 -0.50612 -0.434 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1010.525 998.663
Account Value $1,178.54 $1,164.70
Cash Surrender Value $1,119.61 $1,106.47
Total Return 11.96% 10.65%
Annualized Return 6.85%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
06/22/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000747 -0.01973 -0.020 0.090%
12/31/94 0.987694 1000 1012.459 -0.44739 -0.453 0.090%
06/30/95 1.082989 -0.47171 -0.436 -0.46568 -0.430 0.090%
12/31/95 1.162721 -0.51136 -0.440 -0.50483 -0.434 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1011.583 998.663
Account Value $1,176.19 $1,161.17
Cash Surrender Value $1,117.38 $1,103.11
Total Return 11.74% 10.31%
Annualized Return 6.64%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
06/22/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000714 -0.01973 -0.020 0.090%
12/31/94 0.986919 1000 1013.254 -0.44721 -0.453 0.090%
06/30/95 1.081331 -0.47152 -0.436 -0.46514 -0.430 0.090%
12/31/95 1.160074 -0.51078 -0.440 -0.50386 -0.434 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1012.378 998.663
Account Value $1,174.43 $1,158.52
Cash Surrender Value $1,115.71 $1,100.60
Total Return 11.57% 10.06%
Annualized Return 6.48%
</TABLE>
<PAGE> 50
GOLDTRACK STANDARDIZED PERFORMANCE
MFS Total Return Portfolio
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.984746 -0.02447 -0.025 0.090%
12/31/94 0.981721 1000 1018.619 -0.44244 -0.451 0.090%
06/30/95 1.105340 -0.47833 -0.433 -0.46937 -0.425 0.090%
12/31/95 1.226540 -0.53421 -0.436 -0.52420 -0.427 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1017.75 998.672
Account Value $1,248.31 $1,224.91
Cash Surrender Value $1,248.31 $1,224.91
Total Return 24.83% 22.49%
Annualized Return 14.16%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.984692 -0.02447 -0.025 0.090%
12/31/94 0.980683 1000 1019.697 -0.44220 -0.451 0.090%
06/30/95 1.103072 -0.47808 -0.433 -0.46862 -0.425 0.090%
12/31/95 1.222804 -0.53340 -0.436 -0.52285 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1018.828 998.671
Account Value $1,245.83 $1,221.18
Cash Surrender Value $1,183.54 $1,160.12
Total Return 18.35% 16.01%
Annualized Return 10.18%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.984651 -0.02447 -0.025 0.090%
12/31/94 0.979905 1000 1020.507 -0.44201 -0.451 0.090%
06/30/95 1.101374 -0.47789 -0.434 -0.46806 -0.425 0.090%
12/31/95 1.220010 -0.53280 -0.437 -0.52184 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1019.636 998.671
Account Value $1,243.97 $1,218.39
Cash Surrender Value $1,181.77 $1,157.47
Total Return 18.18% 15.75%
Annualized Return 10.02%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.984597 -0.02447 -0.025 0.090%
12/31/94 0.978870 1000 1021.586 -0.44177 -0.451 0.090%
06/30/95 1.099114 -0.47764 -0.435 -0.46732 -0.425 0.090%
12/31/95 1.216294 -0.53199 -0.437 -0.52050 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1020.714 998.671
Account Value $1,241.49 $1,214.68
Cash Surrender Value $1,179.41 $1,153.94
Total Return 17.94% 15.39%
Annualized Return 9.80%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 0.984557 -0.02447 -0.025 0.090%
12/31/94 0.978093 1000 1022.398 -0.44159 -0.451 0.090%
06/30/95 1.097422 -0.47745 -0.435 -0.46677 -0.425 0.090%
12/31/95 1.213514 -0.53138 -0.438 -0.51949 -0.428 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1021.525 998.671
Account Value $1,239.63 $1,211.90
Cash Surrender Value $1,177.65 $1,151.31
Total Return 17.77% 15.13%
9.64%
</TABLE>
<PAGE> 51
GOLDTRACK STANDARDIZED PERFORMANCE
Smith Barney Money Market
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000765 -0.02467 -0.025 0.090%
12/31/94 1.018752 1000 981.593 -0.45438 -0.446 0.090%
06/30/95 1.043168 -0.45539 -0.437 -0.46371 -0.445 0.090%
12/31/95 1.067438 -0.46594 -0.437 -0.47445 -0.444 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 980.719 998.640
Account Value $1,046.86 $1,065.99
Cash Surrender Value $1,046.86 $1,065.99
Total Return 4.69% 6.60%
Annualized Return 4.26%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000710 -0.02467 -0.025 0.090%
12/31/94 1.017676 1000 982.631 -0.45413 -0.446 0.090%
06/30/95 1.041027 -0.45516 -0.437 -0.46299 -0.445 0.090%
12/31/95 1.064186 -0.46524 -0.437 -0.47324 -0.445 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 981.757 998.639
Account Value $1,044.77 $1,062.74
Cash Surrender Value $992.53 $1,009.60
Total Return -0.75% 0.96%
Annualized Return 0.63%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000669 -0.02467 -0.025 0.090%
12/31/94 1.016869 1000 983.411 -0.45393 -0.446 0.090%
06/30/95 1.039424 -0.45499 -0.438 -0.46245 -0.445 0.090%
12/31/95 1.061753 -0.46472 -0.438 -0.47233 -0.445 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 982.535 998.639
Account Value $1,043.21 $1,060.31
Cash Surrender Value $991.05 $1,007.29
Total Return -0.90% 0.73%
Annualized Return 0.48%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000614 -0.02467 -0.025 0.090%
12/31/94 1.015794 1000 984.452 -0.45368 -0.447 0.090%
06/30/95 1.037291 -0.45476 -0.438 -0.46173 -0.445 0.090%
12/31/95 1.058518 -0.46402 -0.438 -0.47112 -0.445 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 983.576 998.638
Account Value $1,041.13 $1,057.08
Cash Surrender Value $989.08 $1,004.22
Total Return -1.09% 0.42%
Annualized Return 0.28%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units S/A Fee
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000 0.090%
06/30/94 1.000573 -0.02466 -0.025 0.090%
12/31/94 1.014989 1000 985.232 -0.45349 -0.447 0.090%
06/30/95 1.035694 -0.45459 -0.439 -0.46119 -0.445 0.090%
12/31/95 1.056098 -0.46350 -0.439 -0.47022 -0.445 0.090%
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 984.354 998.638
Account Value $1,039.57 $1,054.66
Cash Surrender Value $987.60 $1,001.93
Total Return -1.24% 0.19%
Annualized Return 0.13%
</TABLE>
<PAGE> 52
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Capital Appreciation Fund
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.228688 1000 813.876
06/30/86 1.539766
12/31/86 1.342680
06/30/87 1.726462
12/31/87 1.229121
06/30/88 1.435009
12/31/88 1.344498
06/30/89 1.481169
12/31/89 1.543225
06/30/90 1.653233
12/31/90 1.481314 1000 675.076
06/30/91 1.757918
12/31/91 1.971928
06/30/92 1.947150
12/31/92 2.305613 1000 433.724
06/30/93 2.531558
12/31/93 2.637083
06/30/94 2.379880
12/31/94 2.495981 1000 400.644
06/30/95 2.987396
12/31/95 3.383258
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 400.644 433.724 675.076 813.876
Account Value $1,355.48 $1,467.40 $2,283.96 $2,753.55
Total Return 35.55% 46.74% 128.40% 175.36%
Annualized Return 13.64% 17.96% 10.66%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.225602 1000 815.926
06/30/86 1.534379
12/31/86 1.336630
06/30/87 1.716981
12/31/87 1.221130
06/30/88 1.424261
12/31/88 1.333089
06/30/89 1.467136
12/31/89 1.527081
06/30/90 1.634307
12/31/90 1.454840 1000 687.361
06/30/91 1.724809
12/31/91 1.932820
06/30/92 1.906630
12/31/92 2.255361 1000 443.388
06/30/93 2.473929
12/31/93 2.574455
06/30/94 2.321055
12/31/94 2.431848 1000 411.210
06/30/95 2.907738
12/31/95 3.289765
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 411.21 443.388 687.361 815.926
Account Value $1,352.78 $1,458.64 $2,261.26 $2,684.20
Total Return 35.28% 45.86% 126.13% 168.42%
Annualized Return 13.41% 17.73% 10.38%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.223293 1000 817.466
06/30/86 1.530351
12/31/86 1.332111
06/30/87 1.709905
12/31/87 1.215171
06/30/88 1.416253
12/31/88 1.324596
06/30/89 1.456699
12/31/89 1.515084
06/30/90 1.620255
12/31/90 1.435266 1000 696.735
06/30/91 1.700353
12/31/91 1.903961
06/30/92 1.876757
12/31/92 2.218348 1000 450.786
06/30/93 2.431520
12/31/93 2.528410
06/30/94 2.277847
12/31/94 2.384784 1000 419.325
06/30/95 2.849334
12/31/95 3.221279
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 419.325 450.786 696.735 817.466
Account Value $1,350.76 $1,452.11 $2,244.38 $2,633.29
Total Return 35.08% 45.21% 124.44% 163.33%
Annualized Return 13.24% 17.55% 10.17%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.220220 1000 819.524
06/30/86 1.524996
12/31/86 1.326108
06/30/87 1.700516
12/31/87 1.207271
06/30/88 1.405645
12/31/88 1.313355
06/30/89 1.442898
12/31/89 1.499233
06/30/90 1.601706
12/31/90 1.409539 1000 709.452
06/30/91 1.668239
12/31/91 1.866099
06/30/92 1.837602
12/31/92 2.169880 1000 460.855
06/30/93 2.376039
12/31/93 2.468229
06/30/94 2.221423
12/31/94 2.323382 1000 430.407
06/30/95 2.773206
12/31/95 3.132091
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 430.407 460.855 709.452 819.524
Account Value $1,348.07 $1,443.44 $2,222.07 $2,566.82
Total Return 34.81% 44.34% 122.21% 156.68%
Annualized Return 13.01% 17.31% 9.89%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.217921 1000 821.071
06/30/86 1.520992
12/31/86 1.321624
06/30/87 1.693507
12/31/87 1.201380
06/30/88 1.397742
12/31/88 1.304988
06/30/89 1.432633
12/31/89 1.487455
06/30/90 1.587934
12/31/90 1.390518 1000 719.156
06/30/91 1.644517
12/31/91 1.838161
06/30/92 1.808735
12/31/92 2.134182 1000 468.564
06/30/93 2.335212
12/31/93 2.423984
06/30/94 2.179980
12/31/94 2.278324 1000 438.919
06/30/95 2.717393
12/31/95 3.066761
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 438.919 468.564 719.156 821.071
Account Value $1,346.06 $1,436.97 $2,205.48 $2,518.03
Total Return 34.61% 43.70% 120.55% 151.80%
Annualized Return 12.85% 17.14% 9.67%
</TABLE>
<PAGE> 53
GOLDTRACK NON-STANDARDIZED PERFORMANCE
High Yield Bond Trust
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.255725 1000 796.353
06/30/86 1.349549
12/31/86 1.347914
06/30/87 1.397493
12/31/87 1.333492
06/30/88 1.444289
12/31/88 1.519149
06/30/89 1.628944
12/31/89 1.531059
06/30/90 1.488650
12/31/90 1.477227 1000 676.944
06/30/91 1.683750
12/31/91 1.873314
06/30/92 2.006284
12/31/92 2.106675 1000 474.682
06/30/93 2.293467
12/31/93 2.387202
06/30/94 2.311102
12/31/94 2.342781 1000 426.843
06/30/95 2.593333
12/31/95 2.690205
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 426.843 474.682 676.944 796.353
Account Value $1,148.30 $1,276.99 $1,821.12 $2,142.35
Total Return 14.83% 27.70% 82.11% 114.24%
Annualized Return 8.49% 12.74% 7.92%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.252573 1000 798.357
06/30/86 1.344829
12/31/86 1.341846
06/30/87 1.389823
12/31/87 1.324836
06/30/88 1.433486
12/31/88 1.506275
06/30/89 1.613530
12/31/89 1.515060
06/30/90 1.471625
12/31/90 1.427335 1000 700.606
06/30/91 1.625291
12/31/91 1.806433
06/30/92 1.932728
12/31/92 2.027395 1000 493.244
06/30/93 2.204971
12/31/93 2.292778
06/30/94 2.217487
12/31/94 2.245630 1000 445.309
06/30/95 2.483317
12/31/95 2.573513
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 445.309 493.244 700.606 798.357
Account Value $1,146.01 $1,269.37 $1,803.02 $2,054.58
Total Return 14.60% 26.94% 80.30% 105.46%
Annualized Return 8.28% 12.51% 7.47%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.250215 1000 799.862
06/30/86 1.341299
12/31/86 1.337313
06/30/87 1.384099
12/31/87 1.318382
06/30/88 1.425436
12/31/88 1.496691
06/30/89 1.602066
12/31/89 1.503170
06/30/90 1.458984
12/31/90 1.390581 1000 719.124
06/30/91 1.582276
12/31/91 1.757282
06/30/92 1.878736
12/31/92 1.969269 1000 507.803
06/30/93 2.140163
12/31/93 2.223707
06/30/94 2.149085
12/31/94 2.174725 1000 459.828
06/30/95 2.403110
12/31/95 2.488532
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 459.828 507.803 719.124 799.862
Account Value $1,144.30 $1,263.68 $1,789.56 $1,990.48
Total Return 14.43% 26.37% 78.96% 99.05%
Annualized Return 8.11% 12.34% 7.13%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.247077 1000 801.875
06/30/86 1.336608
12/31/86 1.331293
06/30/87 1.376502
12/31/87 1.309824
06/30/88 1.414773
12/31/88 1.484007
06/30/89 1.586907
12/31/89 1.487461
06/30/90 1.442298
12/31/90 1.342448 1000 744.908
06/30/91 1.526012
12/31/91 1.693070
06/30/92 1.808282
12/31/92 1.893511 1000 528.119
06/30/93 2.055793
12/31/93 2.133892
06/30/94 2.060239
12/31/94 2.082730 1000 480.139
06/30/95 2.299163
12/31/95 2.378517
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 480.139 528.119 744.908 801.875
Account Value $1,142.02 $1,256.14 $1,771.78 $1,907.27
Total Return 14.20% 25.61% 77.18% 90.73%
Annualized Return 7.90% 12.12% 6.67%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.244729 1000 803.388
06/30/86 1.333100
12/31/86 1.326795
06/30/87 1.370832
12/31/87 1.303442
06/30/88 1.406828
12/31/88 1.474564
06/30/89 1.575631
12/31/89 1.475788
06/30/90 1.429908
12/31/90 1.306992 1000 765.116
06/30/91 1.484617
12/31/91 1.645886
06/30/92 1.756574
12/31/92 1.837976 1000 544.077
06/30/93 1.994015
12/31/93 2.068204
06/30/94 1.995334
12/31/94 2.015600 1000 496.130
06/30/95 2.223394
12/31/95 2.298414
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 496.13 544.077 765.116 803.388
Account Value $1,140.31 $1,250.51 $1,758.55 $1,846.52
Total Return 14.03% 25.05% 75.86% 84.65%
Annualized Return 7.74% 11.95% 6.32%
</TABLE>
<PAGE> 54
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Managed Assets Trust
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.291947 1000 774.026
06/30/86 1.567001
12/31/86 1.528836
06/30/87 1.857515
12/31/87 1.552258
06/30/88 1.663579
12/31/88 1.685407
06/30/89 1.919849
12/31/89 2.129931
06/30/90 2.195150
12/31/90 2.159851 1000 462.995
06/30/91 2.324388
12/31/91 2.626457
06/30/92 2.603626
12/31/92 2.744536 1000 364.360
06/30/93 2.887310
12/31/93 2.983671
06/30/94 2.846392
12/31/94 2.898727 1000 344.979
06/30/95 3.336953
12/31/95 3.662590
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 344.979 364.360 462.995 774.026
Account Value $1,263.52 $1,334.50 $1,695.76 $2,834.94
Total Return 26.35% 33.45% 69.58% 183.49%
Annualized Return 10.10% 11.14% 10.98%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.288704 1000 775.973
06/30/86 1.561520
12/31/86 1.521952
06/30/87 1.847320
12/31/87 1.542175
06/30/88 1.651127
12/31/88 1.671116
06/30/89 1.901673
12/31/89 2.107665
06/30/90 2.170037
12/31/90 2.132979 1000 468.828
06/30/91 2.293220
12/31/91 2.588603
06/30/92 2.563543
12/31/92 2.699562 1000 370.430
06/30/93 2.837183
12/31/93 2.928918
06/30/94 2.791387
12/31/94 2.839862 1000 352.130
06/30/95 3.265933
12/31/95 3.581070
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 352.13 370.430 468.828 775.973
Account Value $1,261.00 $1,326.54 $1,678.91 $2,778.81
Total Return 26.10% 32.65% 67.89% 177.88%
Annualized Return 9.88% 10.92% 10.76%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.286277 1000 777.438
06/30/86 1.557423
12/31/86 1.516810
06/30/87 1.839711
12/31/87 1.534656
06/30/88 1.641850
12/31/88 1.660476
06/30/89 1.888154
12/31/89 2.091118
06/30/90 2.151392
12/31/90 2.113045 1000 473.251
06/30/91 2.270119
12/31/91 2.560570
06/30/92 2.533885
12/31/92 2.666315 1000 375.049
06/30/93 2.800160
12/31/93 2.888513
06/30/94 2.750831
12/31/94 2.796498 1000 357.590
06/30/95 3.213662
12/31/95 3.521122
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 357.59 375.049 473.251 777.438
Account Value $1,259.12 $1,320.59 $1,666.37 $2,737.45
Total Return 25.91% 32.06% 66.64% 173.75%
Annualized Return 9.71% 10.75% 10.59%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.283048 1000 779.394
06/30/86 1.551975
12/31/86 1.509980
06/30/87 1.829615
12/31/87 1.524688
06/30/88 1.629560
12/31/88 1.646396
06/30/89 1.870278
12/31/89 2.069257
06/30/90 2.126779
12/31/90 2.086756 1000 479.213
06/30/91 2.239678
12/31/91 2.523665
06/30/92 2.494875
12/31/92 2.622622 1000 381.298
06/30/93 2.751545
12/31/93 2.835504
06/30/94 2.697671
12/31/94 2.739708 1000 365.002
06/30/95 3.145265
12/31/95 3.442749
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 365.002 381.298 479.213 779.394
Account Value $1,256.61 $1,312.71 $1,649.81 $2,683.26
Total Return 25.66% 31.27% 64.98% 168.33%
Annualized Return 9.49% 10.53% 10.37%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.280632 1000 780.864
06/30/86 1.547903
12/31/86 1.504877
06/30/87 1.822078
12/31/87 1.517254
06/30/88 1.620404
12/31/88 1.635914
06/30/89 1.856982
12/31/89 2.053011
06/30/90 2.108505
12/31/90 2.067254 1000 483.733
06/30/91 2.217116
12/31/91 2.496335
06/30/92 2.466011
12/31/92 2.590322 1000 386.052
06/30/93 2.715638
12/31/93 2.796387
06/30/94 2.658477
12/31/94 2.697873 1000 370.662
06/30/95 3.094924
12/31/95 3.385115
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 370.662 386.052 483.733 780.864
Account Value $1,254.73 $1,306.83 $1,637.49 $2,643.31
Total Return 25.47% 30.68% 63.75% 164.33%
Annualized Return 9.33% 10.37% 10.21%
</TABLE>
<PAGE> 55
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Dreyfus Stock Index Fund
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/29/89 1.000000 1000 1000.000
12/31/89 1.020073
06/30/90 1.045637
12/31/90 0.978586 1000 1021.883
06/30/91 1.112612
12/31/91 1.263066
06/30/92 1.247768
12/31/92 1.344616 1000 743.707
06/30/93 1.400185
12/31/93 1.461279
06/30/94 1.405183
12/31/94 1.465327 1000 682.442
06/30/95 1.750845
12/31/95 1.992334
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 682.442 743.707 1021.883 1000.000
Account Value $1,359.65 $1,481.71 $2,035.93 $1,992.33
Total Return 35.97% 48.17% 103.59% 99.23%
Annualized Return 14.00% 15.28% 11.65%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/29/89 1.000000 1000 1000.000
12/31/89 1.019565
06/30/90 1.044075
12/31/90 0.976134 1000 1024.450
06/30/91 1.108737
12/31/91 1.257386
06/30/92 1.240920
12/31/92 1.335889 1000 748.565
06/30/93 1.389719
12/31/93 1.448896
06/30/94 1.391894
12/31/94 1.450016 1000 689.648
06/30/95 1.730826
12/31/95 1.967592
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 689.648 748.565 1024.450 1000.000
Account Value $1,356.95 $1,472.87 $2,015.70 $1,967.59
Total Return 35.69% 47.29% 101.57% 96.76%
Annualized Return 13.78% 15.05% 11.42%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/29/89 1.000000 1000 1000.000
12/31/89 1.019184
06/30/90 1.042905
12/31/90 0.974299 1000 1026.379
06/30/91 1.105839
12/31/91 1.253143
06/30/92 1.235808
12/31/92 1.329382 1000 752.229
06/30/93 1.381922
12/31/93 1.439677
06/30/94 1.382010
12/31/94 1.438637 1000 695.102
06/30/95 1.715961
12/31/95 1.949237
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 695.102 752.229 1026.379 1000.000
Account Value $1,354.92 $1,466.27 $2,000.66 $1,949.24
Total Return 35.49% 46.63% 100.07% 94.92%
Annualized Return 13.61% 14.88% 11.26%
</TABLE>
<PAGE> 56
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/29/89 1.000000 1000 1000.000
12/31/89 1.018676
06/30/90 1.041347
12/31/90 0.971858 1000 1028.957
06/30/91 1.101988
12/31/91 1.247509
06/30/92 1.229024
12/31/92 1.320754 1000 757.143
06/30/93 1.371593
12/31/93 1.427477
06/30/94 1.368940
12/31/94 1.423604 1000 702.443
06/30/95 1.696340
12/31/95 1.925030
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 702.443 757.143 1028.957 1000.000
Account Value $1,352.22 $1,457.52 $1,980.77 $1,925.03
Total Return 35.22% 45.75% 98.08% 92.50%
Annualized Return 13.38% 14.65% 11.03%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/29/89 1.000000 1000 1000.000
12/31/89 1.018296
06/30/90 1.040179
12/31/90 0.970031 1000 1030.895
06/30/91 1.099108
12/31/91 1.243299
06/30/92 1.223961
12/31/92 1.314319 1000 760.850
06/30/93 1.363897
12/31/93 1.418395
06/30/94 1.359218
12/31/94 1.412432 1000 707.999
06/30/95 1.681771
12/31/95 1.907072
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 707.999 760.850 1030.895 1000.000
Account Value $1,350.21 $1,451.00 $1,965.99 $1,907.07
Total Return 35.02% 45.10% 96.60% 90.71%
Annualized Return 13.21% 14.48% 10.87%
</TABLE>
<PAGE> 57
GOLDTRACK NON-STANDARDIZED PERFORMANCE
US Government Securities
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C>
01/24/92 1.000000 1000 1000.000
06/30/92 1.031425
12/31/92 1.072782 1000 932.156
06/30/93 1.148042
12/31/93 1.167674
06/30/94 1.094267
12/31/94 1.095116 1000 913.145
06/30/95 1.258517
12/31/95 1.355077
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Since inception
<S> <C> <C> <C>
Ending units 913.145 932.156 1000.000
Account Value $1,237.38 $1,263.14 $1,355.08
Total Return 23.74% 26.31% 35.51%
Annualized Return 8.10% 8.02%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C>
01/24/92 1.000000 1000 1000.000
06/30/92 1.030533
12/31/92 1.070774 1000 933.904
06/30/93 1.144758
12/31/93 1.163161
06/30/94 1.088957
12/31/94 1.088709 1000 918.519
06/30/95 1.249909
12/31/95 1.344468
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Since inception
<S> <C> <C> <C>
Ending units 918.519 933.904 1000.000
Account Value $1,234.92 $1,255.60 $1,344.47
Total Return 23.49% 25.56% 34.45%
Annualized Return 7.88% 7.81%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C>
01/24/92 1.000000 1000 1000.000
06/30/92 1.029864
12/31/92 1.069270 1000 935.217
06/30/93 1.142301
12/31/93 1.159788
06/30/94 1.084991
12/31/94 1.083928 1000 922.571
06/30/95 1.243491
12/31/95 1.336565
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Since inception
<S> <C> <C> <C>
Ending units 922.571 935.217 1000.000
Account Value $1,233.08 $1,249.98 $1,336.57
Total Return 23.31% 25.00% 33.66%
Annualized Return 7.72% 7.65%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C>
01/24/92 1.000000 1000 1000.000
06/30/92 1.028972
12/31/92 1.067268 1000 936.972
06/30/93 1.139033
12/31/93 1.155305
06/30/94 1.079725
12/31/94 1.077587 1000 927.999
06/30/95 1.234985
12/31/95 1.326101
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Since inception
<S> <C> <C> <C>
Ending units 927.999 936.972 1000.000
Account Value $1,230.62 $1,242.52 $1,326.10
Total Return 23.06% 24.25% 32.61%
Annualized Return 7.51% 7.43%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C>
01/24/92 1.000000 1000 1000.000
06/30/92 1.028304
12/31/92 1.065770 1000 938.289
06/30/93 1.136589
12/31/93 1.151954
06/30/94 1.075793
12/31/94 1.072855 1000 932.092
06/30/95 1.228644
12/31/95 1.318306
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Since inception
<S> <C> <C> <C>
Ending units 932.092 938.289 1000.000
Account Value $1,228.78 $1,236.95 $1,318.31
Total Return 22.88% 23.70% 31.83%
Annualized Return 7.35% 7.27%
</TABLE>
<PAGE> 58
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Social Awareness
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C>
05/01/92 1.000000 1000 1000.000
06/30/92 0.991024
12/31/92 1.090621 1000 916.909
06/30/93 1.131907
12/31/93 1.165550
06/30/94 1.102960
12/31/94 1.128233 1000 886.342
06/30/95 1.347694
12/31/95 1.496077
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Since inception
<S> <C> <C> <C>
Ending units 886.342 916.909 1000.000
Account Value $1,326.04 $1,371.77 $1,496.08
Total Return 32.60% 37.18% 49.61%
Annualized Return 11.11% 11.61%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C>
05/01/92 1.000000 1000 1000.000
06/30/92 0.990698
12/31/92 1.089165 1000 918.135
06/30/93 1.129276
12/31/93 1.161669
06/30/94 1.098197
12/31/94 1.122236 1000 891.078
06/30/95 1.339195
12/31/95 1.485163
One-Year Three-Year Since inception
Ending units 891.078 918.135 1000.000
Account Value $1,323.40 $1,363.58 $1,485.16
Total Return 32.34% 36.36% 48.52%
Annualized Return 10.89% 11.38%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C>
05/01/92 1.000000 1000 1000.000
06/30/92 0.990454
12/31/92 1.088074 1000 919.055
06/30/93 1.127307
12/31/93 1.158767
06/30/94 1.094639
12/31/94 1.117759 1000 894.647
06/30/95 1.332857
12/31/95 1.477029
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Since inception
<S> <C> <C> <C>
Ending units 894.647 919.055 1000.000
Account Value $1,321.42 $1,357.47 $1,477.03
Total Return 32.14% 35.75% 47.70%
Annualized Return 10.72% 11.22%
</TABLE>
<PAGE> 59
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C>
05/01/92 1.000000 1000 1000.000
06/30/92 0.990129
12/31/92 1.086622 1000 920.283
06/30/93 1.124687
12/31/93 1.154909
06/30/94 1.089913
12/31/94 1.111818 1000 899.428
06/30/95 1.324452
12/31/95 1.466253
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Since inception
<S> <C> <C> <C>
Ending units 899.428 920.283 1000.000
Account Value $1,318.79 $1,349.37 $1,466.25
Total Return 31.88% 34.94% 46.63%
Annualized Return 10.50% 11.00%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C>
05/01/92 1.000000 1000 1000.000
06/30/92 0.989885
12/31/92 1.085533 1000 921.206
06/30/93 1.122726
12/31/93 1.152024
06/30/94 1.086381
12/31/94 1.107383 1000 903.030
06/30/95 1.318184
12/31/95 1.458223
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Since inception
<S> <C> <C> <C>
Ending units 903.03 921.206 1000.000
Account Value $1,316.82 $1,343.32 $1,458.22
Total Return 31.68% 34.33% 45.82%
Annualized Return 10.34% 10.83%
</TABLE>
<PAGE> 60
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Utilities Portfolio
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
02/04/94 1.000000 1000 1000.000
06/30/94 0.986630
12/31/94 1.011441 1000 988.688
06/30/95 1.126251
12/31/95 1.299919
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 988.688 1000.000
Account Value $1,285.21 $1,299.92
Total Return 28.52% 29.99%
Annualized Return 14.77%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
02/04/94 1.000000 1000 1000.000
06/30/94 0.985841
12/31/94 1.009619 1000 990.473
06/30/95 1.123103
12/31/95 1.294994
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 990.473 1000.000
Account Value $1,282.66 $1,294.99
Total Return 28.27% 29.50%
Annualized Return 14.54%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
02/04/94 1.000000 1000 1000.000
06/30/94 0.985249
12/31/94 1.008255 1000 991.813
06/30/95 1.120747
12/31/95 1.291313
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 991.813 1000.000
Account Value $1,280.74 $1,291.31
Total Return 28.07% 29.13%
Annualized Return 14.37%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
02/04/94 1.000000 1000 1000.000
06/30/94 0.984461
12/31/94 1.006439 1000 993.602
06/30/95 1.117614
12/31/95 1.286421
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 993.602 1000.000
Account Value $1,278.19 $1,286.42
Total Return 27.82% 28.64%
Annualized Return 14.14%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
02/04/94 1.000000 1000 1000.000
06/30/94 0.983870
12/31/94 1.005079 1000 994.947
06/30/95 1.115270
12/31/95 1.282764
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 994.947 1000.000
Account Value $1,276.28 $1,282.76
Total Return 27.63% 28.28%
Annualized Return 13.97%
</TABLE>
<PAGE> 61
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Templeton's Global Bond
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.016975
06/30/89 1.050889
12/31/89 1.088240
06/30/90 1.108186
12/31/90 1.150198 1000 869.416
06/30/91 1.186740
12/31/91 1.324747
06/30/92 1.345310
12/31/92 1.388734 1000 720.080
06/30/93 1.481094
12/31/93 1.538668
06/30/94 1.441737
12/31/94 1.454827 1000 687.367
06/30/95 1.585528
12/31/95 1.661958
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 687.367 720.080 869.416 1000.000
Account Value $1,142.38 $1,196.74 $1,444.93 $1,661.96
Total Return 14.24% 19.67% 44.49% 66.20%
Annualized Return 6.17% 7.64% 7.17%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.016301
06/30/89 1.049146
12/31/89 1.085353
06/30/90 1.104144
12/31/90 1.144841 1000 873.484
06/30/91 1.180055
12/31/91 1.315944
06/30/92 1.335039
12/31/92 1.376742 1000 726.353
06/30/93 1.466850
12/31/93 1.522335
06/30/94 1.425018
12/31/94 1.436516 1000 696.129
06/30/95 1.564012
12/31/95 1.637772
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 696.129 726.353 873.484 1000.000
Account Value $1,140.10 $1,189.60 $1,430.57 $1,637.77
Total Return 14.01% 18.96% 43.06% 63.78%
Annualized Return 5.96% 7.42% 6.96%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.015796
06/30/89 1.047841
12/31/89 1.083192
06/30/90 1.101122
12/31/90 1.140839 1000 876.548
06/30/91 1.175066
12/31/91 1.309380
06/30/92 1.327386
12/31/92 1.367816 1000 731.092
06/30/93 1.456257
12/31/93 1.510199
06/30/94 1.412606
12/31/94 1.422933 1000 702.774
06/30/95 1.548067
12/31/95 1.619863
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 702.774 731.092 876.548 1000.000
Account Value $1,138.40 $1,184.27 $1,419.89 $1,619.86
Total Return 13.84% 18.43% 41.99% 61.99%
Annualized Return 5.80% 7.26% 6.80%
</TABLE>
<PAGE> 62
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
08/31/88 1.000000 1000 1000.000
12/31/88 1.015123
06/30/89 1.046103
12/31/89 1.080318
06/30/90 1.097105
12/31/90 1.135525 1000 880.650
06/30/91 1.168447
12/31/91 1.300679
06/30/92 1.317251
12/31/92 1.356005 1000 737.460
06/30/93 1.442251
12/31/93 1.494168
06/30/94 1.396225
12/31/94 1.405023 1000 711.732
06/30/95 1.527059
12/31/95 1.596289
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 711.732 737.460 880.650 1000.000
Account Value $1,136.13 $1,177.20 $1,405.77 $1,596.29
Total Return 13.61% 17.72% 40.58% 59.63%
Annualized Return 5.59% 7.05% 6.58%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.014618
06/30/89 1.044801
12/31/89 1.078167
06/30/90 1.094103
12/31/90 1.131556 1000 883.739
06/30/91 1.163507
12/31/91 1.294191
06/30/92 1.309701
12/31/92 1.347213 1000 742.273
06/30/93 1.431835
12/31/93 1.482257
06/30/94 1.384063
12/31/94 1.391738 1000 718.526
06/30/95 1.511490
12/31/95 1.578833
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 718.526 742.273 883.739 1000.000
Account Value $1,134.43 $1,171.93 $1,395.28 $1,578.83
Total Return 13.44% 17.19% 39.53% 57.88%
Annualized Return 5.43% 6.89% 6.42%
</TABLE>
<PAGE> 63
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Templeton's Global Stock
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.024959
06/30/89 1.075676
12/31/89 1.167881
06/30/90 1.190145
12/31/90 1.033052 1000 968.005
06/30/91 1.130253
12/31/91 1.308946
06/30/92 1.382656
12/31/92 1.393170 1000 717.787
06/30/93 1.566132
12/31/93 1.855612
06/30/94 1.794378
12/31/94 1.803868 1000 554.364
06/30/95 2.052503
12/31/95 2.245748
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 554.364 717.787 968.005 1000.000
Account Value $1,244.96 $1,611.97 $2,173.90 $2,245.75
Total Return 24.50% 61.20% 117.39% 124.57%
Annualized Return 17.25% 16.80% 11.66%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.024279
06/30/89 1.073891
12/31/89 1.164781
06/30/90 1.185803
12/31/90 1.028238 1000 972.537
06/30/91 1.123884
12/31/91 1.300246
06/30/92 1.372097
12/31/92 1.381138 1000 724.041
06/30/93 1.551069
12/31/93 1.835915
06/30/94 1.773571
12/31/94 1.781164 1000 561.431
06/30/95 2.024652
12/31/95 2.213068
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 561.431 724.041 972.537 1000.000
Account Value $1,242.48 $1,602.35 $2,152.29 $2,213.07
Total Return 24.25% 60.24% 115.23% 121.31%
Annualized Return 17.02% 16.57% 11.43%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.023770
06/30/89 1.072555
12/31/89 1.162461
06/30/90 1.182556
12/31/90 1.024643 1000 975.950
06/30/91 1.119131
12/31/91 1.293758
06/30/92 1.364231
12/31/92 1.372182 1000 728.766
06/30/93 1.539867
12/31/93 1.821280
06/30/94 1.758124
12/31/94 1.764323 1000 566.790
06/30/95 2.004011
12/31/95 2.188870
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 566.79 728.766 975.950 1000.000
Account Value $1,240.63 $1,595.17 $2,136.23 $2,188.87
Total Return 24.06% 59.52% 113.62% 118.89%
Annualized Return 16.84% 16.39% 11.27%
</TABLE>
<PAGE> 64
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.023092
06/30/89 1.070775
12/31/89 1.159376
06/30/90 1.178242
12/31/90 1.019868 1000 980.519
06/30/91 1.112824
12/31/91 1.285158
06/30/92 1.353813
12/31/92 1.360331 1000 735.115
06/30/93 1.525056
12/31/93 1.801948
06/30/94 1.737737
12/31/94 1.742117 1000 574.014
06/30/95 1.976817
12/31/95 2.157017
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 574.014 735.115 980.519 1000.000
Account Value $1,238.16 $1,585.66 $2,115.00 $2,157.02
Total Return 23.82% 58.57% 111.50% 115.70%
Annualized Return 16.61% 16.16% 11.05%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.022583
06/30/89 1.069442
12/31/89 1.157067
06/30/90 1.175016
12/31/90 1.016302 1000 983.959
06/30/91 1.108118
12/31/91 1.278746
06/30/92 1.346052
12/31/92 1.351510 1000 739.913
06/30/93 1.514041
12/31/93 1.787583
06/30/94 1.722601
12/31/94 1.725645 1000 579.493
06/30/95 1.956664
12/31/95 2.133431
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 579.493 739.913 983.959 1000.000
Account Value $1,236.31 $1,578.55 $2,099.21 $2,133.43
Total Return 23.63% 57.86% 109.92% 113.34%
Annualized Return 16.44% 15.99% 10.88%
</TABLE>
<PAGE> 65
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Templeton's Global Asset Allocation
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.025957
06/30/89 1.066724
12/31/89 1.154983
06/30/90 1.178495
12/31/90 1.056410 1000 946.602
06/30/91 1.155073
12/31/91 1.340874
06/30/92 1.432457
12/31/92 1.439728 1000 694.576
06/30/93 1.588383
12/31/93 1.804942
06/30/94 1.716132
12/31/94 1.740934 1000 574.404
06/30/95 1.943069
12/31/95 2.120738
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 574.404 694.576 946.602 1000.000
Account Value $1,218.16 $1,473.01 $2,007.49 $2,120.74
Total Return 21.82% 47.30% 100.75% 112.07%
Annualized Return 13.78% 14.96% 10.79%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.025277
06/30/89 1.064954
12/31/89 1.151918
06/30/90 1.174196
12/31/90 1.051489 1000 951.032
06/30/91 1.148565
12/31/91 1.331964
06/30/92 1.421521
12/31/92 1.427296 1000 700.626
06/30/93 1.573108
12/31/93 1.785785
06/30/94 1.696234
12/31/94 1.719024 1000 581.725
06/30/95 1.916704
12/31/95 2.089879
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 581.725 700.626 951.032 1000.000
Account Value $1,215.73 $1,464.22 $1,987.54 $2,089.88
Total Return 21.57% 46.42% 98.75% 108.99%
Annualized Return 13.55% 14.73% 10.57%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.024767
06/30/89 1.063629
12/31/89 1.149625
06/30/90 1.170981
12/31/90 1.047814 1000 954.368
06/30/91 1.143709
12/31/91 1.325319
06/30/92 1.413373
12/31/92 1.418042 1000 705.198
06/30/93 1.561748
12/31/93 1.771551
06/30/94 1.681461
12/31/94 1.702772 1000 587.278
06/30/95 1.897165
12/31/95 2.067029
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 587.278 705.198 954.368 1000.000
Account Value $1,213.92 $1,457.66 $1,972.71 $2,067.03
Total Return 21.39% 45.77% 97.27% 106.70%
Annualized Return 13.38% 14.55% 10.40%
</TABLE>
<PAGE> 66
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.024088
06/30/89 1.061864
12/31/89 1.146574
06/30/90 1.166709
12/31/90 1.042933 1000 958.834
06/30/91 1.137266
12/31/91 1.316512
06/30/92 1.402582
12/31/92 1.405797 1000 711.340
06/30/93 1.546729
12/31/93 1.752748
06/30/94 1.661965
12/31/94 1.681342 1000 594.763
06/30/95 1.871423
12/31/95 2.036950
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 594.763 711.340 958.834 1000.000
Account Value $1,211.50 $1,448.96 $1,953.10 $2,036.95
Total Return 21.15% 44.90% 95.31% 103.70%
Annualized Return 13.16% 14.33% 10.18%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08/31/88 1.000000 1000 1000.000
12/31/88 1.023579
06/30/89 1.060543
12/31/89 1.144291
06/30/90 1.163516
12/31/90 1.039287 1000 962.198
06/30/91 1.132457
12/31/91 1.309945
06/30/92 1.394543
12/31/92 1.396683 1000 715.982
06/30/93 1.535560
12/31/93 1.738777
06/30/94 1.647490
12/31/94 1.665446 1000 600.440
06/30/95 1.852345
12/31/95 2.014679
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 600.44 715.982 962.198 1000.000
Account Value $1,209.69 $1,442.47 $1,938.52 $2,014.68
Total Return 20.97% 44.25% 93.85% 101.47%
Annualized Return 12.99% 14.15% 10.02%
</TABLE>
<PAGE> 67
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Fidelity's High Income
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.061982 1000 941.636
06/30/86 1.187176
12/31/86 1.242267
06/30/87 1.292103
12/31/87 1.249852
06/30/88 1.352142
12/31/88 1.387010
06/30/89 1.455413
12/31/89 1.321193
06/30/90 1.304723
12/31/90 1.283917 1000 778.867
06/30/91 1.533646
12/31/91 1.723926
06/30/92 1.996216
12/31/92 2.108770 1000 474.210
06/30/93 2.356238
12/31/93 2.526091
06/30/94 2.481932
12/31/94 2.472188 1000 404.500
06/30/95 2.760499
12/31/95 2.963849
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 404.5 474.210 778.867 941.636
Account Value $1,198.88 $1,405.49 $2,308.44 $2,790.87
Total Return 19.89% 40.55% 130.84% 179.09%
Annualized Return 12.01% 18.21% 10.81%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.061383 1000 942.167
06/30/86 1.185332
12/31/86 1.239088
06/30/87 1.287518
12/31/87 1.244161
06/30/88 1.344645
12/31/88 1.377937
06/30/89 1.444452
12/31/89 1.309935
06/30/90 1.292315
12/31/90 1.270419 1000 787.142
06/30/91 1.516037
12/31/91 1.702398
06/30/92 1.969325
12/31/92 2.078268 1000 481.170
06/30/93 2.319856
12/31/93 2.484582
06/30/94 2.438728
12/31/94 2.426719 1000 412.079
06/30/95 2.707029
12/31/95 2.903545
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 412.079 481.170 787.142 942.167
Account Value $1,196.49 $1,397.10 $2,285.50 $2,735.62
Total Return 19.65% 39.71% 128.55% 173.56%
Annualized Return 11.79% 17.98% 10.59%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.060935 1000 942.565
06/30/86 1.183951
12/31/86 1.236709
06/30/87 1.284090
12/31/87 1.239911
06/30/88 1.339050
12/31/88 1.371172
06/30/89 1.436286
12/31/89 1.301555
06/30/90 1.283087
12/31/90 1.260388 1000 793.406
06/30/91 1.502962
12/31/91 1.686428
06/30/92 1.949395
12/31/92 2.055681 1000 486.457
06/30/93 2.292939
12/31/93 2.453898
06/30/94 2.406818
12/31/94 2.393167 1000 417.856
06/30/95 2.667607
12/31/95 2.859123
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 417.856 486.457 793.406 942.565
Account Value $1,194.70 $1,390.84 $2,268.45 $2,694.91
Total Return 19.47% 39.08% 126.84% 169.49%
Annualized Return 11.62% 17.80% 10.42%
</TABLE>
<PAGE> 68
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.060336 1000 943.097
06/30/86 1.182111
12/31/86 1.233543
06/30/87 1.279534
12/31/87 1.234266
06/30/88 1.331626
12/31/88 1.362203
06/30/89 1.425469
12/31/89 1.290464
06/30/90 1.270885
12/31/90 1.247137 1000 801.837
06/30/91 1.485705
12/31/91 1.665368
06/30/92 1.923134
12/31/92 2.025946 1000 493.597
06/30/93 2.257534
12/31/93 2.413574
06/30/94 2.364921
12/31/94 2.349150 1000 425.686
06/30/95 2.615935
12/31/95 2.800948
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 425.686 493.597 801.837 943.097
Account Value $1,192.32 $1,382.54 $2,245.90 $2,641.57
Total Return 19.23% 38.25% 124.59% 164.16%
Annualized Return 11.40% 17.57% 10.20%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/85 1.059888 1000 943.496
06/30/86 1.180734
12/31/86 1.231175
06/30/87 1.276128
12/31/87 1.230049
06/30/88 1.326084
12/31/88 1.355515
06/30/89 1.417410
12/31/89 1.282207
06/30/90 1.261809
12/31/90 1.237290 1000 808.218
06/30/91 1.472892
12/31/91 1.649745
06/30/92 1.903671
12/31/92 2.003927 1000 499.020
06/30/93 2.231339
12/31/93 2.383767
06/30/94 2.333977
12/31/94 2.316669 1000 431.654
06/30/95 2.577839
12/31/95 2.758095
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Ten-Year
<S> <C> <C> <C> <C>
Ending units 431.654 499.020 808.218 943.496
Account Value $1,190.54 $1,376.34 $2,229.14 $2,602.25
Total Return 19.05% 37.63% 122.91% 160.23%
Annualized Return 11.24% 17.39% 10.04%
</TABLE>
<PAGE> 69
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Fidelity's Equity Income
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000
12/31/86 1.000633
06/30/87 1.168774
12/31/87 0.983371
06/30/88 1.179194
12/31/88 1.199489
06/30/89 1.381218
12/31/89 1.399135
06/30/90 1.335447
12/31/90 1.178124 1000 848.807
06/30/91 1.372627
12/31/91 1.539304
06/30/92 1.634591
12/31/92 1.788521 1000 559.121
06/30/93 1.983510
12/31/93 2.102667
06/30/94 2.120540
12/31/94 2.237798 1000 446.868
06/30/95 2.613614
12/31/95 3.004950
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 446.868 559.121 848.807 1000.000
Account Value $1,342.82 $1,680.13 $2,550.62 $3,004.95
Total Return 34.28% 68.01% 155.06% 200.50%
Annualized Return 18.88% 20.59% 12.66%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000
12/31/86 1.000178
06/30/87 1.167086
12/31/87 0.980956
06/30/88 1.175129
12/31/88 1.194157
06/30/89 1.373708
12/31/89 1.390141
06/30/90 1.325539
12/31/90 1.168198 1000 856.019
06/30/91 1.359729
12/31/91 1.523287
06/30/92 1.615972
12/31/92 1.766367 1000 566.134
06/30/93 1.957002
12/31/93 2.072477
06/30/94 2.088021
12/31/94 2.201274 1000 454.282
06/30/95 2.568397
12/31/95 2.950023
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 454.282 566.134 856.019 1000.000
Account Value $1,340.14 $1,670.11 $2,525.28 $2,950.02
Total Return 34.01% 67.01% 152.53% 195.00%
Annualized Return 18.64% 20.35% 12.43%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000
12/31/86 0.999837
06/30/87 1.165822
12/31/87 0.979149
06/30/88 1.172089
12/31/88 1.190173
06/30/89 1.368102
12/31/89 1.383433
06/30/90 1.318156
12/31/90 1.160808 1000 861.469
06/30/91 1.350135
12/31/91 1.511385
06/30/92 1.602147
12/31/92 1.749932 1000 571.451
06/30/93 1.937353
12/31/93 2.050119
06/30/94 2.063960
12/31/94 2.174273 1000 459.924
06/30/95 2.534998
12/31/95 2.909486
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 459.924 571.451 861.469 1000.000
Account Value $1,338.14 $1,662.63 $2,506.43 $2,909.49
Total Return 33.81% 66.26% 150.64% 190.95%
Annualized Return 18.47% 20.17% 12.26%
</TABLE>
<PAGE> 70
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000
12/31/86 0.999382
06/30/87 1.164138
12/31/87 0.976744
06/30/88 1.168048
12/31/88 1.184882
06/30/89 1.360663
12/31/89 1.374539
06/30/90 1.308376
12/31/90 1.151028 1000 868.789
06/30/91 1.337448
12/31/91 1.495659
06/30/92 1.583897
12/31/92 1.728257 1000 578.618
06/30/93 1.911461
12/31/93 2.020683
06/30/94 2.032308
12/31/94 2.138785 1000 467.555
06/30/95 2.491140
12/31/95 2.856303
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 467.555 578.618 868.789 1000.000
Account Value $1,335.48 $1,652.71 $2,481.52 $2,856.30
Total Return 33.55% 65.27% 148.15% 185.63%
Annualized Return 18.23% 19.93% 12.04%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000
12/31/86 0.999041
06/30/87 1.162877
12/31/87 0.974945
06/30/88 1.165026
12/31/88 1.180929
06/30/89 1.355111
12/31/89 1.367907
06/30/90 1.301089
12/31/90 1.143747 1000 874.319
06/30/91 1.328011
12/31/91 1.483972
06/30/92 1.570346
12/31/92 1.712176 1000 584.052
06/30/93 1.892269
12/31/93 1.998883
06/30/94 2.008888
12/31/94 2.112550 1000 473.362
06/30/95 2.458745
12/31/95 2.817053
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 473.362 584.052 874.319 1000.000
Account Value $1,333.49 $1,645.31 $2,463.00 $2,817.05
Total Return 33.35% 64.53% 146.30% 181.71%
Annualized Return 18.05% 19.75% 11.87%
</TABLE>
<PAGE> 71
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Fidelity's Growth Portfolio
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000
12/31/86 1.001632
06/30/87 1.221760
12/31/87 1.032113
06/30/88 1.187347
12/31/88 1.185805
06/30/89 1.375587
12/31/89 1.550295
06/30/90 1.605235
12/31/90 1.360146 1000 735.215
06/30/91 1.555470
12/31/91 1.967371
06/30/92 1.827122
12/31/92 2.139026 1000 467.502
06/30/93 2.379073
12/31/93 2.537810
06/30/94 2.285975
12/31/94 2.522094 1000 396.496
06/30/95 3.112452
12/31/95 3.393814
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 396.496 467.502 735.215 1000.000
Account Value $1,345.63 $1,586.61 $2,495.18 $3,393.81
Total Return 34.56% 58.66% 149.52% 239.38%
Annualized Return 16.63% 20.07% 14.15%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000
12/31/86 1.001176
06/30/87 1.219996
12/31/87 1.029579
06/30/88 1.183254
12/31/88 1.180532
06/30/89 1.368106
12/31/89 1.540329
06/30/90 1.593326
12/31/90 1.348686 1000 741.462
06/30/91 1.540852
12/31/91 1.946902
06/30/92 1.806307
12/31/92 2.112529 1000 473.366
06/30/93 2.347275
12/31/93 2.501368
06/30/94 2.250913
12/31/94 2.480924 1000 403.076
06/30/95 3.058597
12/31/95 3.331767
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 403.076 473.366 741.462 1000.000
Account Value $1,342.96 $1,577.15 $2,470.38 $3,331.77
Total Return 34.30% 57.71% 147.04% 233.18%
Annualized Return 16.40% 19.83% 13.92%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000
12/31/86 1.000835
06/30/87 1.218675
12/31/87 1.027682
06/30/88 1.180193
12/31/88 1.176593
06/30/89 1.362522
12/31/89 1.532896
06/30/90 1.584451
12/31/90 1.340155 1000 746.182
06/30/91 1.529979
12/31/91 1.931689
06/30/92 1.790851
12/31/92 2.092872 1000 477.812
06/30/93 2.323705
12/31/93 2.474379
06/30/94 2.224970
12/31/94 2.450488 1000 408.082
06/30/95 3.018817
12/31/95 3.285977
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 408.082 477.812 746.182 1000.000
Account Value $1,340.95 $1,570.08 $2,451.94 $3,285.98
Total Return 34.09% 57.01% 145.19% 228.60%
Annualized Return 16.23% 19.65% 13.75%
</TABLE>
<PAGE> 72
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000
12/31/86 1.000380
06/30/87 1.216915
12/31/87 1.025159
06/30/88 1.176124
12/31/88 1.171361
06/30/89 1.355112
12/31/89 1.523041
06/30/90 1.572696
12/31/90 1.328863 1000 752.523
06/30/91 1.515601
12/31/91 1.911590
06/30/92 1.770449
12/31/92 2.066947 1000 483.805
06/30/93 2.292646
12/31/93 2.438847
06/30/94 2.190843
12/31/94 2.410486 1000 414.854
06/30/95 2.966581
12/31/95 3.225901
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 414.854 483.805 752.523 1000.000
Account Value $1,338.28 $1,560.71 $2,427.56 $3,225.90
Total Return 33.83% 56.07% 142.76% 222.59%
Annualized Return 16.00% 19.41% 13.52%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/09/86 1.000000 1000 1000.000
12/31/86 1.000039
06/30/87 1.215597
12/31/87 1.023271
06/30/88 1.173081
12/31/88 1.167453
06/30/89 1.349581
12/31/89 1.515691
06/30/90 1.563936
12/31/90 1.320457 1000 757.314
06/30/91 1.504906
12/31/91 1.896653
06/30/92 1.755300
12/31/92 2.047714 1000 488.349
06/30/93 2.269624
12/31/93 2.412533
06/30/94 2.165592
12/31/94 2.380914 1000 420.007
06/30/95 2.927998
12/31/95 3.181565
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 420.007 488.349 757.314 1000.000
Account Value $1,336.28 $1,553.71 $2,409.44 $3,181.57
Total Return 33.63% 55.37% 140.94% 218.16%
Annualized Return 15.82% 19.23% 13.35%
</TABLE>
<PAGE> 73
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Fidelity's Asset Manager
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/06/89 1.000000 1000 1000.000
12/31/89 1.006213
06/30/90 1.044462
12/31/90 1.067375 1000 936.878
06/30/91 1.200388
12/31/91 1.300338
06/30/92 1.367764
12/31/92 1.445841 1000 691.639
06/30/93 1.568294
12/31/93 1.739547
06/30/94 1.634683
12/31/94 1.623829 1000 615.828
06/30/95 1.718426
12/31/95 1.887901
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 615.828 691.639 936.878 1000.000
Account Value $1,162.62 $1,305.75 $1,768.73 $1,887.90
Total Return 16.26% 30.57% 76.87% 88.79%
Annualized Return 9.30% 12.08% 10.58%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/06/89 1.000000 1000 1000.000
12/31/89 1.005584
06/30/90 1.042770
12/31/90 1.064566 1000 939.350
06/30/91 1.196056
12/31/91 1.294327
06/30/92 1.360085
12/31/92 1.436276 1000 696.245
06/30/93 1.556375
12/31/93 1.724588
06/30/94 1.619018
12/31/94 1.606657 1000 622.410
06/30/95 1.698559
12/31/95 1.864216
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 622.41 696.245 939.350 1000.000
Account Value $1,160.31 $1,297.95 $1,751.15 $1,864.22
Total Return 16.03% 29.80% 75.12% 86.42%
Annualized Return 9.08% 11.86% 10.36%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/06/89 1.000000 1000 1000.000
12/31/89 1.005113
06/30/90 1.041503
12/31/90 1.062464 1000 941.208
06/30/91 1.192818
12/31/91 1.289837
06/30/92 1.354354
12/31/92 1.429143 1000 699.720
06/30/93 1.547496
12/31/93 1.713454
06/30/94 1.607369
12/31/94 1.593897 1000 627.393
06/30/95 1.683810
12/31/95 1.846647
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 627.393 699.720 941.208 1000.000
Account Value $1,158.57 $1,292.14 $1,738.08 $1,846.65
Total Return 15.86% 29.21% 73.81% 84.66%
Annualized Return 8.92% 11.69% 10.19%
</TABLE>
<PAGE> 74
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/06/89 1.000000 1000 1000.000
12/31/89 1.004486
06/30/90 1.039815
12/31/90 1.059669 1000 943.691
06/30/91 1.188514
12/31/91 1.283875
06/30/92 1.346750
12/31/92 1.419688 1000 704.380
06/30/93 1.535735
12/31/93 1.698719
06/30/94 1.591966
12/31/94 1.577040 1000 634.099
06/30/95 1.664343
12/31/95 1.823480
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 634.099 704.380 943.691 1000.000
Account Value $1,156.27 $1,284.42 $1,720.80 $1,823.48
Total Return 15.63% 28.44% 72.08% 82.35%
Annualized Return 8.70% 11.47% 9.97%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/06/89 1.000000 1000 1000.000
12/31/89 1.004015
06/30/90 1.038551
12/31/90 1.057577 1000 945.558
06/30/91 1.185296
12/31/91 1.279421
06/30/92 1.341075
12/31/92 1.412637 1000 707.896
06/30/93 1.526973
12/31/93 1.687752
06/30/94 1.580510
12/31/94 1.564515 1000 639.176
06/30/95 1.649890
12/31/95 1.806294
</TABLE>
<TABLE>
<CAPTION>
One-Year Three-Year Five-Year Since inception
<S> <C> <C> <C> <C>
Ending units 639.176 707.896 945.558 1000.000
Account Value $1,154.54 $1,278.67 $1,707.96 $1,806.29
Total Return 15.45% 27.87% 70.80% 80.63%
Annualized Return 8.54% 11.30% 9.81%
</TABLE>
<PAGE> 75
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Am Odyssey International Equity
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.974749
12/31/93 1.185481
06/30/94 1.096072
12/31/94 1.096130 1000 912.301
06/30/95 1.192413
12/31/95 1.296618
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 912.301 1000.000
Account Value $1,182.91 $1,296.62
Total Return 18.29% 29.66%
Annualized Return 10.22%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.974428
12/31/93 1.183899
06/30/94 1.093523
12/31/94 1.092485 1000 915.344
06/30/95 1.187264
12/31/95 1.289733
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 915.344 1000.000
Account Value $1,180.55 $1,289.73
Total Return 18.05% 28.97%
Annualized Return 10.00%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.974188
12/31/93 1.182713
06/30/94 1.091615
12/31/94 1.089760 1000 917.633
06/30/95 1.183417
12/31/95 1.284594
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 917.633 1000.000
Account Value $1,178.79 $1,284.59
Total Return 17.88% 28.46%
Annualized Return 9.84%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.973867
12/31/93 1.181135
06/30/94 1.089077
12/31/94 1.086136 1000 920.695
06/30/95 1.178307
12/31/95 1.277773
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 920.695 1000.000
Account Value $1,176.44 $1,277.77
Total Return 17.64% 27.78%
Annualized Return 9.62%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.973627
12/31/93 1.179952
06/30/94 1.087177
12/31/94 1.083427 1000 922.997
06/30/95 1.174489
12/31/95 1.272681
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 922.997 1000.000
Account Value $1,174.68 $1,272.68
Total Return 17.47% 27.27%
Annualized Return 9.46%
</TABLE>
<PAGE> 76
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Am Odyssey Emerging Opportunities
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.970536
12/31/93 1.083486
06/30/94 1.020993
12/31/94 1.181192 1000 846.602
06/30/95 1.431549
12/31/95 1.552746
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 846.602 1000.000
Account Value $1,314.56 $1,552.75
Total Return 31.46% 55.27%
Annualized Return 17.93%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.970217
12/31/93 1.082039
06/30/94 1.018618
12/31/94 1.177264 1000 849.427
06/30/95 1.425369
12/31/95 1.544502
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 849.427 1000.000
Account Value $1,311.94 $1,544.50
Total Return 31.19% 54.45%
Annualized Return 17.69%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.969978
12/31/93 1.080955
06/30/94 1.016840
12/31/94 1.174327 1000 851.552
06/30/95 1.420752
12/31/95 1.538347
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 851.552 1000.000
Account Value $1,309.98 $1,538.35
Total Return 31.00% 53.83%
Annualized Return 17.52%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.969659
12/31/93 1.079511
06/30/94 1.014475
12/31/94 1.170422 1000 854.393
06/30/95 1.414618
12/31/95 1.530180
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 854.393 1000.000
Account Value $1,307.38 $1,530.18
Total Return 30.74% 53.02%
Annualized Return 17.28%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.969419
12/31/93 1.078430
06/30/94 1.012704
12/31/94 1.167502 1000 856.530
06/30/95 1.410035
12/31/95 1.524082
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 856.53 1000.000
Account Value $1,305.42 $1,524.08
Total Return 30.54% 52.41%
Annualized Return 17.11%
</TABLE>
<PAGE> 77
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Am Odyssey Core Equity
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.995171
12/31/93 1.016780
06/30/94 0.993160
12/31/94 1.000462 1000 999.538
06/30/95 1.192826
12/31/95 1.378004
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 999.538 1000.000
Account Value $1,377.37 $1,378.00
Total Return 37.74% 37.80%
Annualized Return 12.77%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.994843
12/31/93 1.015422
06/30/94 0.990850
12/31/94 0.997135 1000 1002.873
06/30/95 1.187676
12/31/95 1.370688
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1002.873 1000.000
Account Value $1,374.63 $1,370.69
Total Return 37.46% 37.07%
Annualized Return 12.54%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.994598
12/31/93 1.014405
06/30/94 0.989122
12/31/94 0.994647 1000 1005.382
06/30/95 1.183828
12/31/95 1.365227
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1005.382 1000.000
Account Value $1,372.57 $1,365.23
Total Return 37.26% 36.52%
Annualized Return 12.37%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.994271
12/31/93 1.013050
06/30/94 0.986821
12/31/94 0.991340 1000 1008.736
06/30/95 1.178717
12/31/95 1.357979
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1008.736 1000.000
Account Value $1,369.84 $1,357.98
Total Return 36.98% 35.80%
Annualized Return 12.15%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 0.994026
12/31/93 1.012035
06/30/94 0.985099
12/31/94 0.988866 1000 1011.259
06/30/95 1.174898
12/31/95 1.352569
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1011.259 1000.000
Account Value $1,367.80 $1,352.57
Total Return 36.78% 35.26%
Annualized Return 11.98%
</TABLE>
<PAGE> 78
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Am Odyssey LTB
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.023773
12/31/93 1.089473
06/30/94 1.017150
12/31/94 1.020606 1000 979.810
06/30/95 1.157715
12/31/95 1.242304
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 979.81 1000.000
Account Value $1,217.22 $1,242.30
Total Return 21.72% 24.23%
Annualized Return 8.47%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.023437
12/31/93 1.088019
06/30/94 1.014784
12/31/94 1.017212 1000 983.079
06/30/95 1.152716
12/31/95 1.235707
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 983.079 1000.000
Account Value $1,214.80 $1,235.71
Total Return 21.48% 23.57%
Annualized Return 8.25%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.023185
12/31/93 1.086929
06/30/94 1.013014
12/31/94 1.014673 1000 985.539
06/30/95 1.148980
12/31/95 1.230782
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 985.539 1000.000
Account Value $1,212.98 $1,230.78
Total Return 21.30% 23.08%
Annualized Return 8.09%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.022849
12/31/93 1.085478
06/30/94 1.010657
12/31/94 1.011298 1000 988.828
06/30/95 1.144018
12/31/95 1.224246
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 988.828 1000.000
Account Value $1,210.57 $1,224.25
Total Return 21.06% 22.42%
Annualized Return 7.88%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.022597
12/31/93 1.084391
06/30/94 1.008893
12/31/94 1.008774 1000 991.302
06/30/95 1.140311
12/31/95 1.219367
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 991.302 1000.000
Account Value $1,208.76 $1,219.37
Total Return 20.88% 21.94%
Annualized Return 7.72%
</TABLE>
<PAGE> 79
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Am Odyssey Interm. Term Bond
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.014036
12/31/93 1.039273
06/30/94 1.002973
12/31/94 1.003647 1000 996.366
06/30/95 1.093373
12/31/95 1.147483
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 996.366 1000.000
Account Value $1,143.31 $1,147.48
Total Return 14.33% 14.75%
Annualized Return 5.29%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.013703
12/31/93 1.037885
06/30/94 1.000640
12/31/94 1.000309 1000 999.691
06/30/95 1.088651
12/31/95 1.141389
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 999.691 1000.000
Account Value $1,141.04 $1,141.39
Total Return 14.10% 14.14%
Annualized Return 5.08%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.013453
12/31/93 1.036845
06/30/94 0.998893
12/31/94 0.997812 1000 1002.193
06/30/95 1.085123
12/31/95 1.136839
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1002.193 1000.000
Account Value $1,139.33 $1,136.84
Total Return 13.93% 13.68%
Annualized Return 4.92%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.013120
12/31/93 1.035460
06/30/94 0.996570
12/31/94 0.994493 1000 1005.537
06/30/95 1.080437
12/31/95 1.130802
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1005.537 1000.000
Account Value $1,137.06 $1,130.80
Total Return 13.71% 13.08%
Annualized Return 4.71%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.012871
12/31/93 1.034422
06/30/94 0.994831
12/31/94 0.992011 1000 1008.053
06/30/95 1.076935
12/31/95 1.126295
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1008.053 1000.000
Account Value $1,135.37 $1,126.30
Total Return 13.54% 12.63%
Annualized Return 4.56%
</TABLE>
<PAGE> 80
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Am Odyssey Short Term Bond
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.007080
12/31/93 1.024557
06/30/94 1.013412
12/31/94 1.017011 1000 983.274
06/30/95 1.085252
12/31/95 1.120762
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 983.274 1000.000
Account Value $1,102.02 $1,120.76
Total Return 10.20% 12.08%
Annualized Return 4.36%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.006749
12/31/93 1.023189
06/30/94 1.011055
12/31/94 1.013628 1000 986.555
06/30/95 1.080565
12/31/95 1.114809
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 986.555 1000.000
Account Value $1,099.82 $1,114.81
Total Return 9.98% 11.48%
Annualized Return 4.16%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.006501
12/31/93 1.022163
06/30/94 1.009290
12/31/94 1.011099 1000 989.023
06/30/95 1.077063
12/31/95 1.110366
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 989.023 1000.000
Account Value $1,098.18 $1,110.37
Total Return 9.82% 11.04%
Annualized Return 4.00%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.006170
12/31/93 1.020798
06/30/94 1.006943
12/31/94 1.007736 1000 992.323
06/30/95 1.072411
12/31/95 1.104469
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 992.323 1000.000
Account Value $1,095.99 $1,104.47
Total Return 9.60% 10.45%
Annualized Return 3.79%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
05/01/93 1.000000 1000 1000.000
06/30/93 1.005922
12/31/93 1.019775
06/30/94 1.005186
12/31/94 1.005221 1000 994.806
06/30/95 1.068936
12/31/95 1.100067
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 994.806 1000.000
Account Value $1,094.35 $1,100.07
Total Return 9.44% 10.01%
Annualized Return 3.64%
</TABLE>
<PAGE> 81
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Am Odyssey Intnl Equity with CHART fees
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
1R
M&E: 0.60%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.974749
07/31/93 0.968314 -2.93520 -3.03100 0.3125%
10/29/93 1.076815 -3.25390 -3.02200 0.3125%
12/31/93 1.185481
01/31/94 1.221483 -3.67952 -3.01200 0.3125%
04/29/94 1.133747 -3.40455 -3.00300 0.3125%
06/30/94 1.096072
07/29/94 1.131055 -3.38586 -2.99400 0.3125%
10/31/94 1.165741 -3.47878 -2.98400 0.3125%
12/31/94 1.096130 970 884.932
01/31/95 1.052782 -2.91138 -2.765 -3.13188 -2.97500 0.3125%
04/28/95 1.148897 -3.16725 -2.757 -3.40712 -2.96600 0.3125%
06/30/95 1.192413
07/31/95 1.266956 -3.48179 -2.748 -3.74549 -2.95600 0.3125%
10/31/95 1.248820 -3.42123 -2.740 -3.68034 -2.94700 0.3125%
12/31/95 1.296618
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 873.922 940.110
Account Value $1,133.14 $1,218.96
Total Return 13.31% 21.90%
Annualized Return 7.70%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
2R
M&E: 0.80%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.974428
07/31/93 0.967836 -2.93375 -3.03100 0.3125%
10/29/93 1.075748 -3.25067 -3.02200 0.3125%
12/31/93 1.183899
01/31/94 1.219646 -3.67398 -3.01200 0.3125%
04/29/94 1.131495 -3.39779 -3.00300 0.3125%
06/30/94 1.093523
07/29/94 1.128246 -3.37745 -2.99400 0.3125%
10/31/94 1.162248 -3.46836 -2.98400 0.3125%
12/31/94 1.092485 970 887.884
01/31/95 1.049097 -2.91086 -2.775 -3.12091 -2.97500 0.3125%
04/28/95 1.144331 -3.16518 -2.766 -3.39358 -2.96600 0.3125%
06/30/95 1.187264
07/31/95 1.261272 -3.47773 -2.757 -3.72869 -2.95600 0.3125%
10/31/95 1.242591 -3.41552 -2.749 -3.66198 -2.94700 0.3125%
12/31/95 1.289733
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 876.837 940.110
Account Value $1,130.89 $1,212.49
Total Return 13.09% 21.25%
Annualized Return 7.49%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
3R
M&E: 0.95%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.974188
07/31/93 0.967478 -2.93267 -3.03100 0.3125%
10/29/93 1.074948 -3.24825 -3.02200 0.3125%
12/31/93 1.182713
01/31/94 1.218270 -3.66984 -3.01200 0.3125%
04/29/94 1.129809 -3.39273 -3.00300 0.3125%
06/30/94 1.091615
07/29/94 1.126144 -3.37115 -2.99400 0.3125%
10/31/94 1.159635 -3.46056 -2.98400 0.3125%
12/31/94 1.089760 970 890.104
01/31/95 1.046342 -2.91048 -2.782 -3.11272 -2.97500 0.3125%
04/28/95 1.140918 -3.16363 -2.773 -3.38346 -2.96600 0.3125%
06/30/95 1.183417
07/31/95 1.257025 -3.47469 -2.764 -3.71613 -2.95600 0.3125%
10/31/95 1.237939 -3.41124 -2.756 -3.64827 -2.94700 0.3125%
12/31/95 1.284594
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 879.029 940.110
Account Value $1,129.20 $1,207.66
Total Return 12.92% 20.77%
Annualized Return 7.33%
</TABLE>
<PAGE> 82
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
4R
M&E: 1.15%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.973867
07/31/93 0.967001 -2.93122 -3.03100 0.3125%
10/29/93 1.073883 -3.24504 -3.02200 0.3125%
12/31/93 1.181135
01/31/94 1.216438 -3.66432 -3.01200 0.3125%
04/29/94 1.127565 -3.38599 -3.00300 0.3125%
06/30/94 1.089077
07/29/94 1.123348 -3.36278 -2.99400 0.3125%
10/31/94 1.156160 -3.45019 -2.98400 0.3125%
12/31/94 1.086136 970 893.074
01/31/95 1.042679 -2.90997 -2.791 -3.10182 -2.97500 0.3125%
04/28/95 1.136384 -3.16157 -2.782 -3.37001 -2.96600 0.3125%
06/30/95 1.178307
07/31/95 1.251385 -3.47064 -2.773 -3.69946 -2.95600 0.3125%
10/31/95 1.231763 -3.40555 -2.765 -3.63007 -2.94700 0.3125%
12/31/95 1.277773
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 881.963 940.110
Account Value $1,126.95 $1,201.25
Total Return 12.69% 20.12%
Annualized Return 7.11%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
5R
M&E: 1.30%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.973627
07/31/93 0.966643 -2.93014 -3.03100 0.3125%
10/29/93 1.073085 -3.24262 -3.02200 0.3125%
12/31/93 1.179952
01/31/94 1.215066 -3.66019 -3.01200 0.3125%
04/29/94 1.125885 -3.38094 -3.00300 0.3125%
06/30/94 1.087177
07/29/94 1.121255 -3.35652 -2.99400 0.3125%
10/31/94 1.153560 -3.44243 -2.98400 0.3125%
12/31/94 1.083427 970 895.307
01/31/95 1.039941 -2.90958 -2.798 -3.09367 -2.97500 0.3125%
04/28/95 1.132994 -3.16002 -2.789 -3.35996 -2.96600 0.3125%
06/30/95 1.174489
07/31/95 1.247172 -3.46761 -2.780 -3.68700 -2.95600 0.3125%
10/31/95 1.227152 -3.40128 -2.772 -3.61648 -2.94700 0.3125%
12/31/95 1.272681
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 884.168 940.110
Account Value $1,125.26 $1,196.46
Total Return 12.53% 19.65%
Annualized Return 6.95%
</TABLE>
<PAGE> 83
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Am Odyssey Emerging Opp with CHART fees
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
1R
M&E: 0.60%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.970536
07/31/93 0.941261 -2.85320 -3.03100 0.3125%
10/29/93 1.069745 -3.23253 -3.02200 0.3125%
12/31/93 1.083486
01/31/94 1.118568 -3.36950 -3.01200 0.3125%
04/29/94 1.113983 -3.34520 -3.00300 0.3125%
06/30/94 1.020993
07/29/94 1.012602 -3.03126 -2.99400 0.3125%
10/31/94 1.179573 -3.52006 -2.98400 0.3125%
12/31/94 1.181192 970 821.204
01/31/95 1.157803 -2.97123 -2.566 -3.44430 -2.97500 0.3125%
04/28/95 1.250762 -3.19975 -2.558 -3.70921 -2.96600 0.3125%
06/30/95 1.431549
07/31/95 1.534261 -3.91275 -2.550 -4.53572 -2.95600 0.3125%
10/31/95 1.527944 -3.88446 -2.542 -4.50293 -2.94700 0.3125%
12/31/95 1.552746
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 810.988 940.110
Account Value $1,259.26 $1,459.75
Total Return 25.93% 45.98%
Annualized Return 15.23%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
2R
M&E: 0.80%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.970217
07/31/93 0.940796 -2.85179 -3.03100 0.3125%
10/29/93 1.068685 -3.22933 -3.02200 0.3125%
12/31/93 1.082039
01/31/94 1.116885 -3.36443 -3.01200 0.3125%
04/29/94 1.111770 -3.33856 -3.00300 0.3125%
06/30/94 1.018618
07/29/94 1.010086 -3.02373 -2.99400 0.3125%
10/31/94 1.176037 -3.50951 -2.98400 0.3125%
12/31/94 1.177264 970 823.944
01/31/95 1.153750 -2.97070 -2.575 -3.43224 -2.97500 0.3125%
04/28/95 1.245791 -3.19767 -2.567 -3.69447 -2.96600 0.3125%
06/30/95 1.425369
07/31/95 1.527378 -3.90819 -2.559 -4.51537 -2.95600 0.3125%
10/31/95 1.520323 -3.87798 -2.551 -4.48047 -2.94700 0.3125%
12/31/95 1.544502
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 813.692 940.110
Account Value $1,256.75 $1,452.00
Total Return 25.67% 45.20%
Annualized Return 15.00%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
3R
M&E: 0.95%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.969978
07/31/93 0.940448 -2.85073 -3.03100 0.3125%
10/29/93 1.067891 -3.22693 -3.02200 0.3125%
12/31/93 1.080955
01/31/94 1.115624 -3.36063 -3.01200 0.3125%
04/29/94 1.110113 -3.33358 -3.00300 0.3125%
06/30/94 1.016840
07/29/94 1.008203 -3.01809 -2.99400 0.3125%
10/31/94 1.173392 -3.50161 -2.98400 0.3125%
12/31/94 1.174327 970 826.005
01/31/95 1.150720 -2.97031 -2.581 -3.42323 -2.97500 0.3125%
04/28/95 1.242076 -3.19611 -2.573 -3.68345 -2.96600 0.3125%
06/30/95 1.420752
07/31/95 1.522237 -3.90478 -2.565 -4.50017 -2.95600 0.3125%
10/31/95 1.514633 -3.87313 -2.557 -4.46370 -2.94700 0.3125%
12/31/95 1.538347
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 815.729 940.110
Account Value $1,254.87 $1,446.22
Total Return 25.49% 44.62%
Annualized Return 14.83%
</TABLE>
<PAGE> 84
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
4R
M&E: 1.15%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.969659
07/31/93 0.939984 -2.84933 -3.03100 0.3125%
10/29/93 1.066833 -3.22373 -3.02200 0.3125%
12/31/93 1.079511
01/31/94 1.113945 -3.35557 -3.01200 0.3125%
04/29/94 1.107908 -3.32696 -3.00300 0.3125%
06/30/94 1.014475
07/29/94 1.005697 -3.01059 -2.99400 0.3125%
10/31/94 1.169875 -3.49112 -2.98400 0.3125%
12/31/94 1.170422 970 828.761
01/31/95 1.146693 -2.96980 -2.590 -3.41125 -2.97500 0.3125%
04/28/95 1.237139 -3.19403 -2.582 -3.66881 -2.96600 0.3125%
06/30/95 1.414618
07/31/95 1.515409 -3.90023 -2.574 -4.47999 -2.95600 0.3125%
10/31/95 1.507078 -3.86667 -2.566 -4.44144 -2.94700 0.3125%
12/31/95 1.530180
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 818.449 940.110
Account Value $1,252.37 $1,438.54
Total Return 25.24% 43.85%
Annualized Return 14.60%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
5R
M&E: 1.30%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.969419
07/31/93 0.939636 -2.84827 -3.03100 0.3125%
10/29/93 1.066040 -3.22134 -3.02200 0.3125%
12/31/93 1.078430
01/31/94 1.112687 -3.35179 -3.01200 0.3125%
04/29/94 1.106257 -3.32200 -3.00300 0.3125%
06/30/94 1.012704
07/29/94 1.003822 -3.00498 -2.99400 0.3125%
10/31/94 1.167244 -3.48327 -2.98400 0.3125%
12/31/94 1.167502 970 830.834
01/31/95 1.143681 -2.96940 -2.596 -3.40229 -2.97500 0.3125%
04/28/95 1.233449 -3.19247 -2.588 -3.65787 -2.96600 0.3125%
06/30/95 1.410035
07/31/95 1.510308 -3.89683 -2.580 -4.46491 -2.95600 0.3125%
10/31/95 1.501437 -3.86184 -2.572 -4.42481 -2.94700 0.3125%
12/31/95 1.524082
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 820.498 940.110
Account Value $1,250.51 $1,432.80
Total Return 25.05% 43.28%
Annualized Return 14.43%
</TABLE>
<PAGE> 85
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Am Odyssey Core Equity with CHART fees
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
1R
M&E: 0.60%
<S> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.995171
07/31/93 1.002528 -3.03891 -3.03100 0.3125%
10/29/93 1.026462 -3.10174 -3.02200 0.3125%
12/31/93 1.016780
01/31/94 1.055640 -3.17994 -3.01200 0.3125%
04/29/94 1.007934 -3.02675 -3.00300 0.3125%
06/30/94 0.993160
07/29/94 1.025058 -3.06855 -2.99400 0.3125%
10/31/94 1.032287 -3.08053 -2.98400 0.3125%
12/31/94 1.000462 970 969.552
01/31/95 1.015844 -3.07785 -3.030 -3.02199 -2.97500 0.3125%
04/28/95 1.121590 -3.38763 -3.020 -3.32614 -2.96600 0.3125%
06/30/95 1.192826
07/31/95 1.237822 -3.72701 -3.011 -3.65936 -2.95600 0.3125%
10/31/95 1.290394 -3.87316 -3.002 -3.80286 -2.94700 0.3125%
12/31/95 1.378004
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 957.489 940.110
Account Value $1,319.42 $1,295.48
Total Return 31.94% 29.55%
Annualized Return 10.19%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
2R
M&E: 0.80%
<S> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.994843
07/31/93 1.002034 -3.03742 -3.03100 0.3125%
10/29/93 1.025445 -3.09867 -3.02200 0.3125%
12/31/93 1.015422
01/31/94 1.054051 -3.17515 -3.01200 0.3125%
04/29/94 1.005932 -3.02074 -3.00300 0.3125%
06/30/94 0.990850
07/29/94 1.022512 -3.06093 -2.99400 0.3125%
10/31/94 1.029193 -3.07130 -2.98400 0.3125%
12/31/94 0.997135 970 972.787
01/31/95 1.012289 -3.07732 -3.040 -3.01141 -2.97500 0.3125%
04/28/95 1.117132 -3.38542 -3.030 -3.31292 -2.96600 0.3125%
06/30/95 1.187676
07/31/95 1.232269 -3.72267 -3.021 -3.64295 -2.95600 0.3125%
10/31/95 1.283958 -3.86670 -3.012 -3.78389 -2.94700 0.3125%
12/31/95 1.370688
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 960.684 940.110
Account Value $1,316.80 $1,288.60
Total Return 31.68% 28.86%
Annualized Return 9.97%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
3R
M&E: 0.95%
<S> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.994598
07/31/93 1.001663 -3.03629 -3.03100 0.3125%
10/29/93 1.024683 -3.09636 -3.02200 0.3125%
12/31/93 1.014405
01/31/94 1.052861 -3.17157 -3.01200 0.3125%
04/29/94 1.004433 -3.01623 -3.00300 0.3125%
06/30/94 0.989122
07/29/94 1.020606 -3.05522 -2.99400 0.3125%
10/31/94 1.026878 -3.06439 -2.98400 0.3125%
12/31/94 0.994647 970 975.220
01/31/95 1.009630 -3.07691 -3.048 -3.00350 -2.97500 0.3125%
04/28/95 1.113800 -3.38377 -3.038 -3.30304 -2.96600 0.3125%
06/30/95 1.183828
07/31/95 1.228120 -3.71942 -3.029 -3.63068 -2.95600 0.3125%
10/31/95 1.279152 -3.86186 -3.019 -3.76973 -2.94700 0.3125%
12/31/95 1.365227
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 963.086 940.110
Account Value $1,314.83 $1,283.46
Total Return 31.48% 28.35%
Annualized Return 9.80%
</TABLE>
<PAGE> 86
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
4R
M&E: 1.15%
<S> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.994271
07/31/93 1.001170 -3.03480 -3.03100 0.3125%
10/29/93 1.023667 -3.09329 -3.02200 0.3125%
12/31/93 1.013050
01/31/94 1.051276 -3.16679 -3.01200 0.3125%
04/29/94 1.002438 -3.01024 -3.00300 0.3125%
06/30/94 0.986821
07/29/94 1.018071 -3.04763 -2.99400 0.3125%
10/31/94 1.023800 -3.05520 -2.98400 0.3125%
12/31/94 0.991340 970 978.474
01/31/95 1.006096 -3.07637 -3.058 -2.99299 -2.97500 0.3125%
04/28/95 1.109374 -3.38157 -3.048 -3.28991 -2.96600 0.3125%
06/30/95 1.178717
07/31/95 1.222611 -3.71509 -3.039 -3.61439 -2.95600 0.3125%
10/31/95 1.272772 -3.85542 -3.029 -3.75093 -2.94700 0.3125%
12/31/95 1.357979
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 966.3 940.110
Account Value $1,312.22 $1,276.65
Total Return 31.22% 27.66%
Annualized Return 9.58%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
5R
M&E: 1.30%
<S> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 0.994026
07/31/93 1.000800 -3.03368 -3.03100 0.3125%
10/29/93 1.022906 -3.09099 -3.02200 0.3125%
12/31/93 1.012035
01/31/94 1.050090 -3.16322 -3.01200 0.3125%
04/29/94 1.000944 -3.00576 -3.00300 0.3125%
06/30/94 0.985099
07/29/94 1.016174 -3.04195 -2.99400 0.3125%
10/31/94 1.021497 -3.04833 -2.98400 0.3125%
12/31/94 0.988866 970 980.922
01/31/95 1.003454 -3.07597 -3.065 -2.98513 -2.97500 0.3125%
04/28/95 1.106065 -3.37992 -3.056 -3.28010 -2.96600 0.3125%
06/30/95 1.174898
07/31/95 1.218495 -3.71184 -3.046 -3.60223 -2.95600 0.3125%
10/31/95 1.268008 -3.85060 -3.037 -3.73689 -2.94700 0.3125%
12/31/95 1.352569
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 968.718 940.110
Account Value $1,310.26 $1,271.56
Total Return 31.03% 27.16%
Annualized Return 9.42%
</TABLE>
<PAGE> 87
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Am Odyssey LTB - with CHART fees
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
1R
M&E: 0.60%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.023773
07/31/93 1.032152 -3.12871 -3.03100 0.3125%
10/29/93 1.100517 -3.32552 -3.02200 0.3125%
12/31/93 1.089473
01/31/94 1.100870 -3.31619 -3.01200 0.3125%
04/29/94 1.023458 -3.07336 -3.00300 0.3125%
06/30/94 1.017150
07/29/94 1.041026 -3.11635 -2.99400 0.3125%
10/31/94 1.010764 -3.01630 -2.98400 0.3125%
12/31/94 1.020606 970 950.416
01/31/95 1.042996 -3.09775 -2.970 -3.10276 -2.97500 0.3125%
04/28/95 1.095851 -3.24456 -2.961 -3.24981 -2.96600 0.3125%
06/30/95 1.157715
07/31/95 1.148442 -3.38964 -2.952 -3.39513 -2.95600 0.3125%
10/31/95 1.202000 -3.53663 -2.942 -3.54236 -2.94700 0.3125%
12/31/95 1.242304
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 938.591 940.110
Account Value $1,166.02 $1,167.90
Total Return 16.60% 16.79%
Annualized Return 5.99%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
2R
M&E: 0.80%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.023437
07/31/93 1.031643 -3.12717 -3.03100 0.3125%
10/29/93 1.099427 -3.32222 -3.02200 0.3125%
12/31/93 1.088019
01/31/94 1.099213 -3.31120 -3.01200 0.3125%
04/29/94 1.021425 -3.06726 -3.00300 0.3125%
06/30/94 1.014784
07/29/94 1.038440 -3.10861 -2.99400 0.3125%
10/31/94 1.007733 -3.00726 -2.98400 0.3125%
12/31/94 1.017212 970 953.587
01/31/95 1.039345 -3.09721 -2.980 -3.09190 -2.97500 0.3125%
04/28/95 1.091495 -3.24245 -2.971 -3.23689 -2.96600 0.3125%
06/30/95 1.152716
07/31/95 1.143288 -3.38569 -2.961 -3.37989 -2.95600 0.3125%
10/31/95 1.196004 -3.53073 -2.952 -3.52469 -2.94700 0.3125%
12/31/95 1.235707
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 941.723 940.110
Account Value $1,163.69 $1,161.70
Total Return 16.37% 16.17%
Annualized Return 5.78%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
3R
M&E: 0.95%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.023185
07/31/93 1.031262 -3.12601 -3.03100 0.3125%
10/29/93 1.098610 -3.31976 -3.02200 0.3125%
12/31/93 1.086929
01/31/94 1.097972 -3.30746 -3.01200 0.3125%
04/29/94 1.019902 -3.06269 -3.00300 0.3125%
06/30/94 1.013014
07/29/94 1.036504 -3.10281 -2.99400 0.3125%
10/31/94 1.005466 -3.00049 -2.98400 0.3125%
12/31/94 1.014673 970 955.973
01/31/95 1.036615 -3.09680 -2.987 -3.08378 -2.97500 0.3125%
04/28/95 1.088239 -3.24086 -2.978 -3.22724 -2.96600 0.3125%
06/30/95 1.148980
07/31/95 1.139438 -3.38274 -2.969 -3.36851 -2.95600 0.3125%
10/31/95 1.191526 -3.52632 -2.959 -3.51149 -2.94700 0.3125%
12/31/95 1.230782
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 944.08 940.110
Account Value $1,161.96 $1,157.07
Total Return 16.20% 15.71%
Annualized Return 5.62%
</TABLE>
<PAGE> 88
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
4R
M&E: 1.15%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.022849
07/31/93 1.030754 -3.12447 -3.03100 0.3125%
10/29/93 1.097522 -3.31647 -3.02200 0.3125%
12/31/93 1.085478
01/31/94 1.096320 -3.30248 -3.01200 0.3125%
04/29/94 1.017876 -3.05660 -3.00300 0.3125%
06/30/94 1.010657
07/29/94 1.033929 -3.09511 -2.99400 0.3125%
10/31/94 1.002451 -2.99150 -2.98400 0.3125%
12/31/94 1.011298 970 959.163
01/31/95 1.032986 -3.09626 -2.997 -3.07298 -2.97500 0.3125%
04/28/95 1.083913 -3.23875 -2.988 -3.21441 -2.96600 0.3125%
06/30/95 1.144018
07/31/95 1.134324 -3.37879 -2.979 -3.35339 -2.95600 0.3125%
10/31/95 1.185581 -3.52043 -2.969 -3.49397 -2.94700 0.3125%
12/31/95 1.224246
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 947.23 940.110
Account Value $1,159.64 $1,150.93
Total Return 15.96% 15.09%
Annualized Return 5.41%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
5R
M&E: 1.30%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.022597
07/31/93 1.030373 -3.12332 -3.03100 0.3125%
10/29/93 1.096706 -3.31400 -3.02200 0.3125%
12/31/93 1.084391
01/31/94 1.095083 -3.29876 -3.01200 0.3125%
04/29/94 1.016359 -3.05205 -3.00300 0.3125%
06/30/94 1.008893
07/29/94 1.032002 -3.08934 -2.99400 0.3125%
10/31/94 1.000196 -2.98477 -2.98400 0.3125%
12/31/94 1.008774 970 961.563
01/31/95 1.030272 -3.09585 -3.005 -3.06491 -2.97500 0.3125%
04/28/95 1.080679 -3.23717 -2.995 -3.20482 -2.96600 0.3125%
06/30/95 1.140311
07/31/95 1.130504 -3.37584 -2.986 -3.34210 -2.95600 0.3125%
10/31/95 1.181142 -3.51603 -2.977 -3.48089 -2.94700 0.3125%
12/31/95 1.219367
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 949.6 940.110
Account Value $1,157.91 $1,146.34
Total Return 15.79% 14.63%
5.25%
</TABLE>
<PAGE> 89
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Am Odyssey Interm. Term Bond with CHART fees
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
1R
M&E: 0.60%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.014036
07/31/93 1.016525 -3.08134 -3.03100 0.3125%
10/29/93 1.042850 -3.15126 -3.02200 0.3125%
12/31/93 1.039273
01/31/94 1.047892 -3.15660 -3.01200 0.3125%
04/29/94 1.006013 -3.02098 -3.00300 0.3125%
06/30/94 1.002973
07/29/94 1.014587 -3.03720 -2.99400 0.3125%
10/31/94 1.004967 -2.99900 -2.98400 0.3125%
12/31/94 1.003647 970 966.475
01/31/95 1.017778 -3.07393 -3.020 -3.02774 -2.97500 0.3125%
04/28/95 1.055931 -3.17919 -3.011 -3.13143 -2.96600 0.3125%
06/30/95 1.093373
07/31/95 1.091774 -3.27684 -3.001 -3.22760 -2.95600 0.3125%
10/31/95 1.120273 -3.35187 -2.992 -3.30150 -2.94700 0.3125%
12/31/95 1.147483
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 954.451 940.110
Account Value $1,095.22 $1,078.76
Total Return 9.52% 7.88%
Annualized Return 2.88%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
2R
M&E: 0.80%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.013703
07/31/93 1.016024 -3.07982 -3.03100 0.3125%
10/29/93 1.041816 -3.14814 -3.02200 0.3125%
12/31/93 1.037885
01/31/94 1.046314 -3.15185 -3.01200 0.3125%
04/29/94 1.004014 -3.01498 -3.00300 0.3125%
06/30/94 1.000640
07/29/94 1.012066 -3.02966 -2.99400 0.3125%
10/31/94 1.001954 -2.99001 -2.98400 0.3125%
12/31/94 1.000309 970 969.700
01/31/95 1.014215 -3.07339 -3.030 -3.01714 -2.97500 0.3125%
04/28/95 1.051733 -3.17712 -3.021 -3.11898 -2.96600 0.3125%
06/30/95 1.088651
07/31/95 1.086874 -3.27302 -3.011 -3.21312 -2.95600 0.3125%
10/31/95 1.114684 -3.34627 -3.002 -3.28503 -2.94700 0.3125%
12/31/95 1.141389
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 957.636 940.110
Account Value $1,093.04 $1,073.03
Total Return 9.30% 7.30%
Annualized Return 2.68%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
3R
M&E: 0.95%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.013453
07/31/93 1.015649 -3.07869 -3.03100 0.3125%
10/29/93 1.041042 -3.14580 -3.02200 0.3125%
12/31/93 1.036845
01/31/94 1.045133 -3.14829 -3.01200 0.3125%
04/29/94 1.002518 -3.01048 -3.00300 0.3125%
06/30/94 0.998893
07/29/94 1.010180 -3.02401 -2.99400 0.3125%
10/31/94 0.999700 -2.98329 -2.98400 0.3125%
12/31/94 0.997812 970 972.127
01/31/95 1.011551 -3.07299 -3.038 -3.00922 -2.97500 0.3125%
04/28/95 1.048596 -3.17557 -3.028 -3.10967 -2.96600 0.3125%
06/30/95 1.085123
07/31/95 1.083214 -3.27016 -3.019 -3.20230 -2.95600 0.3125%
10/31/95 1.110510 -3.34209 -3.010 -3.27273 -2.94700 0.3125%
12/31/95 1.136839
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 960.032 940.110
Account Value $1,091.40 $1,068.75
Total Return 9.14% 6.88%
Annualized Return 2.52%
</TABLE>
<PAGE> 90
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
4R
M&E: 1.15%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.013120
07/31/93 1.015148 -3.07717 -3.03100 0.3125%
10/29/93 1.040010 -3.14268 -3.02200 0.3125%
12/31/93 1.035460
01/31/94 1.043560 -3.14355 -3.01200 0.3125%
04/29/94 1.000526 -3.00450 -3.00300 0.3125%
06/30/94 0.996570
07/29/94 1.007670 -3.01650 -2.99400 0.3125%
10/31/94 0.996702 -2.97434 -2.98400 0.3125%
12/31/94 0.994493 970 975.371
01/31/95 1.008010 -3.07245 -3.048 -2.99868 -2.97500 0.3125%
04/28/95 1.044427 -3.17350 -3.039 -3.09731 -2.96600 0.3125%
06/30/95 1.080437
07/31/95 1.078353 -3.26634 -3.029 -3.18792 -2.95600 0.3125%
10/31/95 1.104969 -3.33651 -3.020 -3.25640 -2.94700 0.3125%
12/31/95 1.130802
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 963.235 940.110
Account Value $1,089.23 $1,063.08
Total Return 8.92% 6.31%
Annualized Return 2.32%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
5R
M&E: 1.30%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.012871
07/31/93 1.014773 -3.07603 -3.03100 0.3125%
10/29/93 1.039237 -3.14034 -3.02200 0.3125%
12/31/93 1.034422
01/31/94 1.042381 -3.14000 -3.01200 0.3125%
04/29/94 0.999034 -3.00002 -3.00300 0.3125%
06/30/94 0.994831
07/29/94 1.005791 -3.01087 -2.99400 0.3125%
10/31/94 0.994460 -2.96765 -2.98400 0.3125%
12/31/94 0.992011 970 977.812
01/31/95 1.005362 -3.07205 -3.056 -2.99081 -2.97500 0.3125%
04/28/95 1.041312 -3.17195 -3.046 -3.08807 -2.96600 0.3125%
06/30/95 1.076935
07/31/95 1.074721 -3.26349 -3.037 -3.17719 -2.95600 0.3125%
10/31/95 1.100832 -3.33233 -3.027 -3.24421 -2.94700 0.3125%
12/31/95 1.126295
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 965.646 940.110
Account Value $1,087.60 $1,058.84
Total Return 8.76% 5.88%
Annualized Return 2.17%
</TABLE>
<PAGE> 91
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Am Odyssey STB with CHART fees
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
1R
M&E: 0.60%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.007080
07/31/93 1.009583 -3.06030 -3.03100 0.3125%
10/29/93 1.022038 -3.08837 -3.02200 0.3125%
12/31/93 1.024557
01/31/94 1.028124 -3.09705 -3.01200 0.3125%
04/29/94 1.013430 -3.04325 -3.00300 0.3125%
06/30/94 1.013412
07/29/94 1.023067 -3.06259 -2.99400 0.3125%
10/31/94 1.020468 -3.04526 -2.98400 0.3125%
12/31/94 1.017011 970 953.775
01/31/95 1.028069 -3.06421 -2.981 -3.05836 -2.97500 0.3125%
04/28/95 1.058055 -3.14373 -2.971 -3.13772 -2.96600 0.3125%
06/30/95 1.085252
07/31/95 1.085746 -3.21592 -2.962 -3.20978 -2.95600 0.3125%
10/31/95 1.102924 -3.25659 -2.953 -3.25038 -2.94700 0.3125%
12/31/95 1.120762
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 941.908 940.110
Account Value $1,055.65 $1,053.64
Total Return 5.57% 5.36%
Annualized Return 1.98%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
2R
M&E: 0.80%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.006749
07/31/93 1.009086 -3.05879 -3.03100 0.3125%
10/29/93 1.021025 -3.08531 -3.02200 0.3125%
12/31/93 1.023189
01/31/94 1.026576 -3.09239 -3.01200 0.3125%
04/29/94 1.011416 -3.03720 -3.00300 0.3125%
06/30/94 1.011055
07/29/94 1.020526 -3.05498 -2.99400 0.3125%
10/31/94 1.017408 -3.03613 -2.98400 0.3125%
12/31/94 1.013628 970 956.959
01/31/95 1.024470 -3.06367 -2.990 -3.04765 -2.97500 0.3125%
04/28/95 1.053850 -3.14169 -2.981 -3.12525 -2.96600 0.3125%
06/30/95 1.080565
07/31/95 1.080874 -3.21218 -2.972 -3.19538 -2.95600 0.3125%
10/31/95 1.097422 -3.25117 -2.963 -3.23416 -2.94700 0.3125%
12/31/95 1.114809
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 945.053 940.110
Account Value $1,053.55 $1,048.04
Total Return 5.36% 4.80%
Annualized Return 1.77%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
3R
M&E: 0.95%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.006501
07/31/93 1.008713 -3.05766 -3.03100 0.3125%
10/29/93 1.020266 -3.08302 -3.02200 0.3125%
12/31/93 1.022163
01/31/94 1.025417 -3.08890 -3.01200 0.3125%
04/29/94 1.009908 -3.03267 -3.00300 0.3125%
06/30/94 1.009290
07/29/94 1.018624 -3.04929 -2.99400 0.3125%
10/31/94 1.015120 -3.02930 -2.98400 0.3125%
12/31/94 1.011099 970 959.352
01/31/95 1.021780 -3.06327 -2.998 -3.03965 -2.97500 0.3125%
04/28/95 1.050706 -3.14015 -2.989 -3.11593 -2.96600 0.3125%
06/30/95 1.077063
07/31/95 1.077234 -3.20937 -2.979 -3.18462 -2.95600 0.3125%
10/31/95 1.093312 -3.24709 -2.970 -3.22205 -2.94700 0.3125%
12/31/95 1.110366
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 947.416 940.110
Account Value $1,051.98 $1,043.87
Total Return 5.20% 4.39%
Annualized Return 1.62%
</TABLE>
<PAGE> 92
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
4R
M&E: 1.15%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.006170
07/31/93 1.008216 -3.05615 -3.03100 0.3125%
10/29/93 1.019255 -3.07996 -3.02200 0.3125%
12/31/93 1.020798
01/31/94 1.023873 -3.08425 -3.01200 0.3125%
04/29/94 1.007902 -3.02665 -3.00300 0.3125%
06/30/94 1.006943
07/29/94 1.016093 -3.04171 -2.99400 0.3125%
10/31/94 1.012076 -3.02022 -2.98400 0.3125%
12/31/94 1.007736 970 962.554
01/31/95 1.018203 -3.06274 -3.008 -3.02901 -2.97500 0.3125%
04/28/95 1.046529 -3.13810 -2.999 -3.10354 -2.96600 0.3125%
06/30/95 1.072411
07/31/95 1.072399 -3.20563 -2.989 -3.17032 -2.95600 0.3125%
10/31/95 1.087857 -3.24167 -2.980 -3.20597 -2.94700 0.3125%
12/31/95 1.104469
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 950.578 940.110
Account Value $1,049.88 $1,038.32
Total Return 4.99% 3.83%
Annualized Return 1.42%
</TABLE>
<TABLE>
<CAPTION>
Unit Value Dollars Units Dollars Units Dollars Units CHART Fee
5R
M&E: 1.30%
<S> <C> <C> <C>
05/01/93 1.000000 970 970.00000
06/30/93 1.005922
07/31/93 1.007843 -3.05502 -3.03100 0.3125%
10/29/93 1.018497 -3.07767 -3.02200 0.3125%
12/31/93 1.019775
01/31/94 1.022717 -3.08077 -3.01200 0.3125%
04/29/94 1.006399 -3.02214 -3.00300 0.3125%
06/30/94 1.005186
07/29/94 1.014199 -3.03604 -2.99400 0.3125%
10/31/94 1.009800 -3.01343 -2.98400 0.3125%
12/31/94 1.005221 970 964.962
01/31/95 1.015528 -3.06233 -3.016 -3.02105 -2.97500 0.3125%
04/28/95 1.043407 -3.13657 -3.006 -3.09429 -2.96600 0.3125%
06/30/95 1.068936
07/31/95 1.068787 -3.20282 -2.997 -3.15964 -2.95600 0.3125%
10/31/95 1.083784 -3.23761 -2.987 -3.19397 -2.94700 0.3125%
12/31/95 1.100067
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 952.956 940.110
Account Value $1,048.32 $1,034.18
Total Return 4.83% 3.42%
Annualized Return 1.27%
</TABLE>
<PAGE> 93
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Smith Barney Income & Growth
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.986850
12/31/94 0.984453 1000 1015.793
06/30/95 1.142243
12/31/95 1.302140
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1015.793 1000.000
Account Value $1,322.70 $1,302.14
Total Return 32.27% 30.21%
Annualized Return 18.81%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.986796
12/31/94 0.983413 1000 1016.867
06/30/95 1.139900
12/31/95 1.298175
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1016.867 1000.000
Account Value $1,320.07 $1,298.18
Total Return 32.01% 29.82%
Annualized Return 18.58%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.986756
12/31/94 0.982633 1000 1017.674
06/30/95 1.138146
12/31/95 1.295209
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1017.674 1000.000
Account Value $1,318.10 $1,295.21
Total Return 31.81% 29.52%
Annualized Return 18.40%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.986701
12/31/94 0.981595 1000 1018.750
06/30/95 1.135811
12/31/95 1.291265
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1018.75 1000.000
Account Value $1,315.48 $1,291.27
Total Return 31.55% 29.13%
Annualized Return 18.16%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.986661
12/31/94 0.980817 1000 1019.558
06/30/95 1.134063
12/31/95 1.288314
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1019.558 1000.000
Account Value $1,313.51 $1,288.31
Total Return 31.35% 28.83%
Annualized Return 17.99%
</TABLE>
<PAGE> 94
GOLDTRACK NON-STANDARIZED PERFORMANCE
Alliance Growth Portfolio
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.985613
12/31/94 1.050345 1000 952.068
06/30/95 1.279161
12/31/95 1.407993
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 952.068 1000.000
Account Value $1,340.51 $1,407.99
Total Return 34.05% 40.80%
Annualized Return 25.03%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.985559
12/31/94 1.049235 1000 953.075
06/30/95 1.276538
12/31/95 1.403705
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 953.075 1000.000
Account Value $1,337.84 $1,403.71
Total Return 33.78% 40.37%
Annualized Return 24.79%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.985518
12/31/94 1.048403 1000 953.832
06/30/95 1.274573
12/31/95 1.400498
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 953.832 1000.000
Account Value $1,335.84 $1,400.50
Total Return 33.58% 40.05%
Annualized Return 24.60%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.985464
12/31/94 1.047296 1000 954.840
06/30/95 1.271959
12/31/95 1.396233
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 954.84 1000.000
Account Value $1,333.18 $1,396.23
Total Return 33.32% 39.62%
Annualized Return 24.35%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.985424
12/31/94 1.046466 1000 955.597
06/30/95 1.270002
12/31/95 1.393043
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 955.597 1000.000
Account Value $1,331.19 $1,393.04
Total Return 33.12% 39.30%
Annualized Return 24.17%
</TABLE>
<PAGE> 95
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Smith Barney International Equity
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.026833
12/31/94 0.957827 1000 1044.030
06/30/95 1.017604
12/31/95 1.059457
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1044.03 1000.000
Account Value $1,106.10 $1,059.46
Total Return 10.61% 5.95%
Annualized Return 3.84%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.026777
12/31/94 0.956815 1000 1045.134
06/30/95 1.015515
12/31/95 1.056228
</TABLE>
<TABLE>
<CAPTION>
Since inception
<S> <C> <C>
Ending units 1045.134 1000.000
Account Value $1,103.90 $1,056.23
Total Return 10.39% 5.62%
Annualized Return 3.64%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.026735
12/31/94 0.956056 1000 1045.964
06/30/95 1.013951
12/31/95 1.053813
</TABLE>
<TABLE>
<CAPTION>
Since inception
<S> <C> <C>
Ending units 1045.964 1000.000
Account Value $1,102.25 $1,053.81
Total Return 10.23% 5.38%
Annualized Return 3.48%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.026679
12/31/94 0.955045 1000 1047.071
06/30/95 1.011869
12/31/95 1.050601
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1047.071 1000.000
Account Value $1,100.05 $1,050.60
Total Return 10.01% 5.06%
Annualized Return 3.28%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.026636
12/31/94 0.954288 1000 1047.902
06/30/95 1.010310
12/31/95 1.048198
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1047.902 1000.000
Account Value $1,098.41 $1,048.20
Total Return 9.84% 4.82%
Annualized Return 3.12%
</TABLE>
<PAGE> 96
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Putnam Diversified Income Portfolio
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.000836
12/31/94 1.011554 1000 988.578
06/30/95 1.108794
12/31/95 1.180319
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 988.578 1000.000
Account Value $1,166.84 $1,180.32
Total Return 16.68% 18.03%
Annualized Return 11.43%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.000781
12/31/94 1.010485 1000 989.624
06/30/95 1.106519
12/31/95 1.176724
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 989.624 1000.000
Account Value $1,164.51 $1,176.72
Total Return 16.45% 17.67%
Annualized Return 11.21%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.000740
12/31/94 1.009684 1000 990.409
06/30/95 1.104816
12/31/95 1.174034
</TABLE>
<TABLE>
<CAPTION>
Since inception
<S> <C> <C>
Ending units 990.409 1000.000
Account Value $1,162.77 $1,174.03
Total Return 16.28% 17.40%
Annualized Return 11.04%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.000685
12/31/94 1.008617 1000 991.457
06/30/95 1.102548
12/31/95 1.170458
</TABLE>
<TABLE>
<CAPTION>
Since inception
<S> <C> <C>
Ending units 991.457 1000.000
Account Value $1,160.46 $1,170.46
Total Return 16.05% 17.05%
Annualized Return 10.82%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.000644
12/31/94 1.007817 1000 992.244
06/30/95 1.100851
12/31/95 1.167783
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 992.244 1000.000
Account Value $1,158.73 $1,167.78
Total Return 15.87% 16.78%
Annualized Return 10.66%
</TABLE>
<PAGE> 97
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Smith Barney High Income
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
06/22/94 1.000000 1000 1000.000
06/30/94 1.000868
12/31/94 0.990541 1000 1009.549
06/30/95 1.089091
12/31/95 1.172482
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1009.549 1000.000
Account Value $1,183.68 $1,172.48
Total Return 18.37% 17.25%
Annualized Return 10.99%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
06/22/94 1.000000 1000 1000.000
06/30/94 1.000824
12/31/94 0.989505 1000 1010.606
06/30/95 1.086869
12/31/95 1.168923
</TABLE>
<TABLE>
<CAPTION>
Since inception
<S> <C> <C>
Ending units 1010.606 1000.000
Account Value $1,181.32 $1,168.92
Total Return 18.13% 16.89%
Annualized Return 10.77%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
06/22/94 1.000000 1000 1000.000
06/30/94 1.000791
12/31/94 0.988729 1000 1011.399
06/30/95 1.085204
12/31/95 1.166261
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1011.399 1000.000
Account Value $1,179.56 $1,166.26
Total Return 17.96% 16.63%
Annualized Return 10.60%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
06/22/94 1.000000 1000 1000.000
06/30/94 1.000747
12/31/94 0.987694 1000 1012.459
06/30/95 1.082989
12/31/95 1.162721
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1012.459 1000.000
Account Value $1,177.21 $1,162.72
Total Return 17.72% 16.27%
Annualized Return 10.38%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
06/22/94 1.000000 1000 1000.000
06/30/94 1.000714
12/31/94 0.986919 1000 1013.254
06/30/95 1.081331
12/31/95 1.160074
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1013.254 1000.000
Account Value $1,175.45 $1,160.07
Total Return 17.54% 16.01%
Annualized Return 10.22%
</TABLE>
<PAGE> 98
GOLDTRACK NON-STANDARDIZED PERFORMANCE
MFS Total Return Portfolio
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.984746
12/31/94 0.981721 1000 1018.619
06/30/95 1.105340
12/31/95 1.226540
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1018.619 1000.000
Account Value $1,249.38 $1,226.54
Total Return 24.94% 22.65%
Annualized Return 14.26%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.984692
12/31/94 0.980683 1000 1019.697
06/30/95 1.103072
12/31/95 1.222804
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1019.697 1000.000
Account Value $1,246.89 $1,222.80
Total Return 24.69% 22.28%
Annualized Return 14.04%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.984651
12/31/94 0.979905 1000 1020.507
06/30/95 1.101374
12/31/95 1.220010
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1020.507 1000.000
Account Value $1,245.03 $1,220.01
Total Return 24.50% 22.00%
Annualized Return 13.87%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.984597
12/31/94 0.978870 1000 1021.586
06/30/95 1.099114
12/31/95 1.216294
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1021.586 1000.000
Account Value $1,242.55 $1,216.29
Total Return 24.25% 21.63%
Annualized Return 13.64%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 0.984557
12/31/94 0.978093 1000 1022.398
06/30/95 1.097422
12/31/95 1.213514
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 1022.398 1000.000
Account Value $1,240.69 $1,213.51
Total Return 24.07% 21.35%
Annualized Return 13.47%
</TABLE>
<PAGE> 99
GOLDTRACK NON-STANDARDIZED PERFORMANCE
Smith Barney Money Market
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
1R
M&E: 0.60%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.000765
12/31/94 1.018752 1000 981.593
06/30/95 1.043168
12/31/95 1.067438
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 981.593 1000.000
Account Value $1,047.79 $1,067.44
Total Return 4.78% 6.74%
Annualized Return 4.35%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
2R
M&E: 0.80%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.000710
12/31/94 1.017676 1000 982.631
06/30/95 1.041027
12/31/95 1.064186
</TABLE>
<TABLE>
<CAPTION>
Since inception
<S> <C> <C>
Ending units 982.631 1000.000
Account Value $1,045.70 $1,064.19
Total Return 4.57% 6.42%
Annualized Return 4.15%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
3R
M&E: 0.95%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.000669
12/31/94 1.016869 1000 983.411
06/30/95 1.039424
12/31/95 1.061753
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 983.411 1000.000
Account Value $1,044.14 $1,061.75
Total Return 4.41% 6.18%
Annualized Return 3.99%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
4R
M&E: 1.15%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.000614
12/31/94 1.015794 1000 984.452
06/30/95 1.037291
12/31/95 1.058518
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 984.452 1000.000
Account Value $1,042.06 $1,058.52
Total Return 4.21% 5.85%
Annualized Return 3.78%
</TABLE>
<TABLE>
<CAPTION>
Unit Values Dollars Units Dollars Units
5R
M&E: 1.30%
<S> <C> <C> <C> <C> <C>
06/20/94 1.000000 1000 1000.000
06/30/94 1.000573
12/31/94 1.014989 1000 985.232
06/30/95 1.035694
12/31/95 1.056098
</TABLE>
<TABLE>
<CAPTION>
One-Year Since inception
<S> <C> <C>
Ending units 985.232 1000.000
Account Value $1,040.50 $1,056.10
Total Return 4.05% 5.61%
Annualized Return 3.63%
</TABLE>
