<PAGE> 1
UNIVERSAL ANNUITY
SEMI-ANNUAL REPORT
THE TRAVELERS FUND U FOR VARIABLE ANNUITIES
JUNE 30, 1995
[TRAVELERS INSURANCE LOGO]
THE TRAVELERS INSURANCE COMPANY
ONE TOWER SQUARE
HARTFORD, CONNECTICUT 06183
<PAGE> 2
THE TRAVELERS FUND U
FOR VARIABLE ANNUITIES
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1995
<TABLE>
<S> <C>
ASSETS:
Investments in eligible mutual funds at market value:
The Travelers Variable Products Mutual Funds, 19,517,707 shares (cost $275,779,170) . . . $ 309,439,248
Templeton Variable Products Series Fund, 18,743,659 shares (cost $298,598,001) . . . . . . 331,155,454
Fidelity's Variable Insurance Products Fund, 23,841,370 shares (cost $415,006,584) . . . . 488,061,560
Fidelity's Variable Insurance Products Fund II, 25,108,291 shares (cost $357,091,753) . . 359,801,815
Dreyfus Stock Index Fund, 3,235,138 shares (cost $47,062,327) . . . . . . . . . . . . . . 49,627,018
American Odyssey Funds, Inc., 43,403,839 shares (cost $457,338,577) . . . . . . . . . . . 515,913,836
Smith Barney/Travelers Series Fund Inc., 257,318 shares (cost $2,846,567) . . . . . . . . 2,938,617
Receivables:
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258,811
Purchase payments and transfers from other Travelers accounts . . . . . . . . . . . . . . 6,035,515
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,063
--------------
Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,063,241,937
--------------
LIABILITIES:
Payable for contract surrenders and transfers to other Travelers accounts . . . . . . . . . . 2,733,626
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314,342
--------------
Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,047,968
--------------
NET ASSETS: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,060,193,969
==============
</TABLE>
See Notes to Financial Statements
-1-
<PAGE> 3
THE TRAVELERS FUND U
FOR VARIABLE ANNUITIES
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1995
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 34,598,773
EXPENSES:
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,245,598
-------------
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . 23,353,175
-------------
REALIZED GAIN AND CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain from investment transactions:
Proceeds from investments sold . . . . . . . . . . . . . . . . . . . . . . . $ 49,109,233
Cost of investments sold . . . . . . . . . . . . . . . . . . . . . . . . . . 43,440,131
-------------
Net realized gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,669,102
Change in unrealized gain (loss) on investments:
Unrealized loss at December 31, 1994 . . . . . . . . . . . . . . . . . . . . (8,676,019)
Unrealized gain at June 30, 1995 . . . . . . . . . . . . . . . . . . . . . . 203,214,569
-------------
Net change in unrealized gain (loss) for the period . . . . . . . . . . . 211,890,588
-------------
Net realized gain and change in unrealized gain (loss) . . . . . . . . 217,559,690
-------------
Net increase in net assets resulting from operations . . . . . . . . . . . . . . . $ 240,912,865
=============
</TABLE>
See Notes to Financial Statements
-2-
<PAGE> 4
THE TRAVELERS FUND U
FOR VARIABLE ANNUITIES
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1995 1994
---- ----
(UNAUDITED)
<S> <C> <C>
OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,353,175 $ 35,977,438
Net realized gain from investment transactions . . . . . . . . . . . . . . . . 5,669,102 5,781,870
Net change in unrealized gain (loss) on investments . . . . . . . . . . . . . . 211,890,588 (90,470,991)
-------------- --------------
Net increase (decrease) in net assets resulting from operations . . . . . . 240,912,865 (48,711,683)
-------------- --------------
UNIT TRANSACTIONS:
Participant purchase payments
(applicable to 172,909,806 and 347,994,427 units, respectively) . . . . . . 215,745,859 427,701,738
Participant transfers from other Travelers accounts
(applicable to 144,084,959 and 502,271,333 units, respectively) . . . . . . 178,524,167 601,760,125
Administrative and asset allocation charges
(applicable to 3,331,478 and 5,180,119 units, respectively) . . . . . . . . (4,080,059) (5,793,309)
Contract surrenders
(applicable to 28,662,756 and 33,835,413 units, respectively) . . . . . . . (38,828,534) (45,824,121)
Participant transfers to other Travelers accounts
(applicable to 121,875,292 and 186,102,321 units, respectively) . . . . . . (157,681,224) (243,643,400)
Other payments to participants
(applicable to 1,284,037 and 1,836,572 units, respectively) . . . . . . . . (1,505,208) (2,362,947)
-------------- --------------
Net increase in net assets resulting from unit transactions . . . . . . . . 192,175,001 731,838,086
-------------- --------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . . . . . 433,087,866 683,126,403
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,627,106,103 943,979,700
-------------- --------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,060,193,969 $1,627,106,103
============== ==============
</TABLE>
See Notes to Financial Statements
-3-
<PAGE> 5
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Travelers Fund U for Variable Annuities ("Fund U") is a separate account of
The Travelers Insurance Company ("The Travelers"), an indirect wholly owned
subsidiary of Travelers Group Inc., and is available for funding certain
variable annuity contracts issued by The Travelers. Fund U is registered under
the Investment Company Act of 1940, as amended, as a unit investment trust.
The Travelers interest in the net assets of Fund U was $1,320,270 at June 30,
1995.
Participant purchase payments applied to Fund U are invested in one or more
eligible mutual funds in accordance with the selection made by the contract
owner. As of June 30, 1995, the eligible mutual funds available under Fund U
are: Managed Assets Trust; High Yield Bond Trust; Capital Appreciation Fund;
U.S. Government Securities Portfolio, Social Awareness Stock Portfolio and
Utilities Portfolio of The Travelers Series Trust; American Odyssey Core Equity
Fund, American Odyssey Emerging Opportunities Fund, American Odyssey
International Equity Fund, American Odyssey Long-Term Bond Fund, American
Odyssey Intermediate-Term Bond Fund and American Odyssey Short-Term Bond Fund
of American Odyssey Funds, Inc.; Alliance Growth Portfolio, G.T. Global
Strategic Income Portfolio, Smith Barney High Income Portfolio, Smith Barney
International Equity Portfolio, Smith Barney Income and Growth Portfolio,
Putnam Diversified Income Portfolio and MFS Total Return Portfolio of Smith
Barney/Travelers Series Fund Inc. (all of which are managed by affiliates of
The Travelers); Templeton Bond Fund, Templeton Stock Fund and Templeton Asset
Allocation Fund of Templeton Variable Products Series Fund; High Income
Portfolio, Growth Portfolio and Equity-Income Portfolio of Fidelity's Variable
Insurance Products Fund; Asset Manager Portfolio of Fidelity's Variable
Insurance Products Fund II; and Dreyfus Stock Index Fund. All of the mutual
funds are Massachusetts business trusts, except for American Odyssey Funds,
Inc., Dreyfus Stock Index Fund and Smith Barney/Travelers Series Fund Inc.
which are incorporated under Maryland law.
The following is a summary of significant accounting policies consistently
followed by Fund U in the preparation of its financial statements.
SECURITY VALUATION. Investments are valued daily at the net asset values per
share of the underlying mutual funds.
FEDERAL INCOME TAXES. The operations of Fund U form a part of the total
operations of The Travelers and are not taxed separately. The Travelers is
taxed as a life insurance company under the Internal Revenue Code of 1986, as
amended (the "Code"). Under existing federal income tax law, no taxes are
payable on the investment income of Fund U. Fund U is not taxed as a
"regulated investment company" under Subchapter M of the Code.
OTHER. Security transactions are accounted for on the trade date. Dividend
income is recorded on the ex-dividend date.
2. INVESTMENTS
Purchases and sales of investments aggregated $271,127,056 and $49,109,233,
respectively, for the six months ended June 30, 1995. Realized gains and
losses from investment transactions are reported on an identified-cost basis.
The cost of investments in eligible mutual funds was $1,853,722,979 at June 30,
1995. Gross unrealized appreciation for all investments at June 30, 1995 was
$203,392,309. Gross unrealized depreciation for all investments at June 30,
1995 was $177,740.
3. CONTRACT CHARGES
Insurance charges are paid to The Travelers for the mortality and expense risks
assumed by The Travelers. These charges are equivalent to 1.25% of the average
net assets of Fund U on an annual basis. Additionally, for certain contracts
in the accumulation phase, a semi-annual charge of $15 (prorated for partial
periods and the level of participation in other separate accounts of The
Travelers) is deducted from participant account balances and paid to The
Travelers to cover administrative charges.
Participants in American Odyssey Funds, Inc. (the "Funds"), may elect to enter
into a separate asset allocation advisory agreement with Copeland Financial
Services, Inc. ("Copeland"), an affiliate of The Travelers. Under this
arrangement, Copeland provides asset allocation advice and charges participants
an annual fee, plus a one-time set-up fee of $30. The annual fee, which
decreases as a participant's assets in the Funds increase, is equivalent to an
amount of up to 1.50% of the participant's assets in the Funds. Copeland has
currently agreed to waive 0.25% of this fee. These fees totaled $2,292,320 and
$3,045,220, for the six months ended June 30, 1995, and the year ended December
31, 1994, respectively.
No sales charge is deducted from participant purchase payments when they are
received. However, The Travelers assesses a 5% contingent deferred sales
charge if a participant's purchase payment is surrendered within five years of
its payment date. Contract surrender payments are stated prior to the
deduction of $657,502 and $666,955 of contingent deferred sales charges for the
six months ended June 30, 1995 and the year ended December 31, 1994,
respectively.
-4-
<PAGE> 6
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
4. NET ASSETS HELD BY AFFILIATE
Approximately $5,219,000 and $4,925,000 of the net assets of Fund U were held
on behalf of an affiliate of The Travelers as of June 30, 1995 and December 31,
1994, respectively. Transactions with this affiliate during the six months
ended June 30, 1995 and the year ended December 31, 1994, comprised participant
purchase payments of approximately $1,020,000 and $1,949,000 and contract
surrenders of approximately $1,653,000 and $363,000, respectively.
-5-
<PAGE> 7
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
5. STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
JUNE 30, 1995
---------------------------------
NO. OF MARKET
SHARES VALUE
------------- ---------------
<S> <C> <C>
MUTUAL FUNDS
THE TRAVELERS VARIABLE PRODUCTS MUTUAL FUNDS (15.1%)
Managed Assets Trust (Cost $139,034,199) 10,983,265 $ 154,644,375
High Yield Bond Trust (Cost $12,383,397) 1,443,874 12,489,511
Capital Appreciation Fund (Cost $84,020,787) 3,413,482 99,707,896
U.S. Government Securities Portfolio (Cost $25,396,706) 2,276,672 26,204,499
Social Awareness Stock Portfolio (Cost $5,499,313) 482,035 6,198,965
Utilities Portfolio (Cost $9,444,768) 918,379 10,194,002
---------------
Total Cost $275,779,170 309,439,248
---------------
TEMPLETON VARIABLE PRODUCT SERIES FUND (16.1%)
Templeton Bond Fund (Cost $12,610,227) 1,100,220 12,432,487
Templeton Stock Fund (Cost $150,456,040) 8,959,421 170,139,413
Templeton Asset Allocation Fund (Cost $135,531,734) 8,684,018 148,583,554
---------------
Total Cost $298,598,001 331,155,454
---------------
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND (23.7%)
High Income Portfolio (Cost $42,744,569) 3,854,587 43,132,826
Growth Portfolio (Cost $231,962,174) 10,943,115 292,181,175
Equity-Income Portfolio (Cost $140,299,841) 9,043,668 152,747,559
---------------
Total Cost $415,006,584 488,061,560
---------------
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND II (17.5%)
Asset Manager Portfolio (Cost $357,091,753) 25,108,291 359,801,815
---------------
Total Cost $357,091,753
DREYFUS STOCK INDEX FUND (2.4%)
Total Cost $47,062,327 3,235,138 49,627,018
---------------
AMERICAN ODYSSEY FUNDS, INC. (25.1%)
American Odyssey Core Equity Fund (Cost $121,500,982) 11,627,853 139,883,074
American Odyssey Emerging Opportunities Fund (Cost $97,589,727) 8,774,279 126,261,874
American Odyssey International Equity Fund (Cost $63,735,813) 5,728,679 67,254,692
American Odyssey Long-Term Bond Fund (Cost $91,800,334) 9,095,523 96,958,274
American Odyssey Intermediate-Term Bond Fund (Cost $60,568,807) 5,978,398 62,773,176
American Odyssey Short-Term Bond Fund (Cost $22,142,914) 2,199,107 22,782,746
---------------
Total Cost $457,338,577 515,913,836
---------------
SMITH BARNEY/TRAVELERS SERIES FUND INC. (0.1%)
Alliance Growth Portfolio (Cost $807,791) 68,909 866,192
G.T. Global Strategic Income Portfolio (Cost $80,033) 7,835 81,253
Smith Barney High Income Portfolio (Cost $59,907) 5,593 60,009
Smith Barney International Equity Portfolio (Cost $238,714) 23,914 244,884
Smith Barney Income and Growth Portfolio (Cost $559,625) 49,378 564,879
Putnam Diversified Income Portfolio (Cost $516,654) 46,962 519,400
MFS Total Return Portfolio (Cost $583,843) 54,727 602,000
---------------
Total Cost $2,846,567 2,938,617
---------------
TOTAL MUTUAL FUNDS (100.0%)
(COST $1,853,722,979) $ 2,056,937,548
===============
</TABLE>
-6-
<PAGE> 8
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
6. NET CONTRACT OWNERS' EQUITY
<TABLE>
<CAPTION>
JUNE 30, 1995
------------------------------------------------------------------
ACCUMULATION ANNUITY UNIT NET
UNITS UNITS VALUE ASSETS
----- ----- ----- ------
<S> <C> <C> <C> <C>
Managed Assets Trust
Qualified . . . . . . . . . . . . . . . . . . . . . . . 56,942,363 52,954 $2.526 $ 143,967,251
Non-Qualified . . . . . . . . . . . . . . . . . . . . . 3,955,137 28,170 2.719 10,829,966
High Yield Bond Trust
Qualified . . . . . . . . . . . . . . . . . . . . . . . 4,706,811 - 2.391 11,253,372
Non-Qualified . . . . . . . . . . . . . . . . . . . . . 514,301 11,581 2.416 1,270,375
Capital Appreciation Fund
Qualified . . . . . . . . . . . . . . . . . . . . . . . 42,831,344 23,373 2.123 90,970,007
Non-Qualified . . . . . . . . . . . . . . . . . . . . . 3,926,383 39,537 2.201 8,730,725
The Travelers Series Trust
U.S. Government Securities Portfolio . . . . . . . . . . 21,376,517 - 1.231 26,309,214
Social Awareness Stock Portfolio . . . . . . . . . . . . 4,707,471 - 1.320 6,215,134
Utilities Portfolio . . . . . . . . . . . . . . . . . . 9,097,924 - 1.116 10,153,747
Templeton Variable Products Series Fund
Templeton Bond Fund . . . . . . . . . . . . . . . . . . 10,412,824 9,542 1.196 12,466,214
Templeton Stock Fund . . . . . . . . . . . . . . . . . . 112,218,165 25,115 1.517 170,333,074
Templeton Asset Allocation Fund . . . . . . . . . . . . 104,549,401 9,661 1.421 148,594,881
Fidelity's Variable Insurance Products Fund
High Income Portfolio . . . . . . . . . . . . . . . . . 29,491,924 35,513 1.465 43,261,265
Growth Portfolio . . . . . . . . . . . . . . . . . . . . 199,583,831 13,972 1.466 292,681,825
Equity-Income Portfolio . . . . . . . . . . . . . . . . 118,481,364 72,615 1.294 153,474,328
Fidelity's Variable Insurance Products Fund II
Asset Manager Portfolio . . . . . . . . . . . . . . . . 282,205,877 219,196 1.273 359,450,320
Dreyfus Stock Index Fund . . . . . . . . . . . . . . . . . . 36,654,675 - 1.363 49,950,559
American Odyssey Funds, Inc.
American Odyssey Core Equity Fund . . . . . . . . . . . 119,203,364 - 1.176 140,203,493
American Odyssey Emerging Opportunities Fund . . . . . . 89,699,213 - 1.412 126,615,835
American Odyssey International Equity Fund . . . . . . . 57,338,573 - 1.176 67,416,364
American Odyssey Long-Term Bond Fund . . . . . . . . . . 85,155,954 - 1.142 97,209,264
American Odyssey Intermediate-Term Bond Fund . . . . . . 58,299,705 - 1.078 62,853,012
American Odyssey Short-Term Bond Fund . . . . . . . . . 21,326,297 - 1.070 22,821,133
Smith Barney/Travelers Series Fund Inc.
Alliance Growth Portfolio . . . . . . . . . . . . . . . 775,317 - 1.170 907,153
G.T. Global Strategic Income Portfolio . . . . . . . . . 71,275 - 1.105 78,737
Smith Barney High Income Portfolio . . . . . . . . . . . 57,354 - 1.047 60,051
Smith Barney International Equity Portfolio . . . . . . 223,799 - 1.096 245,278
Smith Barney Income and Growth Portfolio . . . . . . . . 560,859 - 1.096 614,840
Putnam Diversified Income Portfolio . . . . . . . . . . 513,665 - 1.063 546,126
MFS Total Return Portfolio . . . . . . . . . . . . . . . 652,024 - 1.090 710,426
--------------
Net Contract Owners' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,060,193,969
==============
</TABLE>
-7-
<PAGE> 9
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
7. SCHEDULE OF FUND U OPERATIONS AND CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
CAPITAL
MANAGED ASSETS TRUST HIGH YIELD BOND TRUST APPRECIATION FUND
-------------------------- ------------------------ -----------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends . . . . . . . . . . . . . . . . . . . . . $ 7,184,513 $ 11,797,895 $ 941,371 $ 908,267 $ 538,025 $ 358,325
------------ ------------ ----------- ----------- ----------- -----------
EXPENSES:
Insurance charges . . . . . . . . . . . . . . . . . 908,236 1,838,017 74,580 152,609 534,719 874,820
------------ ------------ ----------- ----------- ----------- -----------
Net investment income (loss) . . . . . . . . . . 6,276,277 9,959,878 866,791 755,658 3,306 (516,495)
------------ ------------ ----------- ----------- ----------- -----------
REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment transactions:
Proceeds from investments sold . . . . . . . . . 7,842,002 17,256,950 1,372,658 2,915,483 5,312,937 9,689,951
Cost of investments sold . . . . . . . . . . . . 6,883,486 15,400,891 1,361,232 2,839,358 4,020,138 7,636,698
------------ ------------ ----------- ----------- ----------- -----------
Net realized gain (loss) . . . . . . . . . . . 958,516 1,856,059 11,426 76,125 1,292,799 2,053,253
------------ ------------ ----------- ----------- ----------- -----------
Change in unrealized gain (loss) on investments:
Unrealized gain (loss) beginning of period . . . 2,677,803 19,765,458 (190,385) 976,104 1,236,789 6,901,611
Unrealized gain (loss) end of period . . . . . . 15,610,176 2,677,803 106,114 (190,385) 15,687,109 1,236,789
------------ ------------ ----------- ----------- ----------- -----------
Net change in unrealized gain (loss)
for the period . . . . . . . . . . . . . . . 12,932,373 (17,087,655) 296,499 (1,166,489) 14,450,320 (5,664,822)
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . . . . 20,167,166 (5,271,718) 1,174,716 (334,706) 15,746,425 (4,128,064)
------------ ------------ ----------- ----------- ----------- -----------
UNIT TRANSACTIONS:
Participant purchase payments . . . . . . . . . . . 5,918,740 16,108,507 644,150 1,293,542 8,252,311 18,411,998
Participant transfers from other Travelers accounts 1,315,787 6,051,512 1,187,730 1,967,398 11,261,278 30,791,524
Administrative and asset allocation charges . . . . (110,873) (237,574) (9,522) (20,252) (76,721) (137,533)
Contract surrenders . . . . . . . . . . . . . . . . (5,721,294) (9,072,855) (463,589) (1,210,352) (1,726,475) (2,976,142)
Participant transfers to other Travelers accounts . (6,506,086) (23,379,919) (1,481,389) (2,784,688) (11,828,862) (26,099,388)
Other payments to participants . . . . . . . . . . (126,337) (262,973) (10,870) (40,146) (34,390) (67,334)
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting
from unit transactions . . . . . . . . . . . . (5,230,063) (10,793,302) (133,490) (794,498) 5,847,141 19,923,125
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets . . . . 14,937,103 (16,065,020) 1,041,226 (1,129,204) 21,593,566 15,795,061
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . 139,860,114 155,925,134 11,482,521 12,611,725 78,107,166 62,312,105
------------ ------------ ----------- ----------- ----------- -----------
End of period . . . . . . . . . . . . . . . . . $154,797,217 $139,860,114 $12,523,747 $11,482,521 $99,700,732 $78,107,166
============ ============ =========== =========== =========== ===========
</TABLE>
-8-
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
<TABLE>
<CAPTION>
U.S. GOVERNMENT SOCIAL AWARENESS
SECURITIES PORTFOLIO STOCK PORTFOLIO UTILITIES PORTFOLIO TEMPLETON BOND FUND
----------------------------- ---------------------------- ------------------------------ -----------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,398,521 $ 947,128 $ 119,821 $ 87,669 $ 150,180 $ - $ 554,133 $ 625,209
----------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
159,688 318,691 31,269 45,194 53,937 42,161 73,332 133,981
----------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
1,238,833 628,437 88,552 42,475 96,243 (42,161) 480,801 491,228
----------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
4,486,876 6,627,937 175,811 768,125 1,086,280 1,913,029 826,263 2,096,128
4,397,271 6,550,850 146,141 677,069 1,025,410 1,895,166 845,913 2,193,743
----------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
89,605 77,087 29,670 91,056 60,870 17,863 (19,650) (97,615)
----------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
(1,427,050) 1,147,389 (63,248) 208,441 52,210 - (698,498) 359,548
807,793 (1,427,050) 699,652 (63,248) 749,234 52,210 (177,740) (698,498)
----------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
2,234,843 (2,574,439) 762,900 (271,689) 697,024 52,210 520,758 (1,058,046)
----------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
3,563,281 (1,868,915) 881,122 (138,158) 854,137 27,912 981,909 (664,433)
----------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
1,463,497 6,745,869 844,246 929,015 1,415,082 2,324,950 903,553 3,392,436
884,619 6,392,347 914,932 863,341 4,646,938 6,101,993 811,594 3,673,260
(15,757) (33,644) (5,484) (9,227) (5,956) (5,145) (7,135) (13,693)
(690,490) (2,155,692) (25,836) (66,269) (86,041) (56,197) (190,812) (294,123)
(3,257,238) (10,024,208) (272,590) (1,066,309) (2,432,826) (2,612,177) (1,247,460) (4,267,516)
(37,077) (189,210) (877) - (8,912) (10,011) (401) (4,036)
----------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
(1,652,446) 735,462 1,454,391 650,551 3,528,285 5,743,413 269,339 2,486,328
----------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
1,910,835 (1,133,453) 2,335,513 512,393 4,382,422 5,771,325 1,251,248 1,821,895
24,398,379 25,531,832 3,879,621 3,367,228 5,771,325 - 11,214,966 9,393,071
----------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
$26,309,214 $24,398,379 $6,215,134 $3,879,621 $10,153,747 $5,771,325 $12,466,214 $11,214,966
=========== =========== ========== ========== =========== ========== =========== ===========
</TABLE>
-9-
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
7. SCHEDULE OF FUND U OPERATIONS AND CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND THE YEAR ENDED DECEMBER 31, 1994
(CONTINUED)
<TABLE>
<CAPTION>
TEMPLETON ASSET FIDELITY'S HIGH
TEMPLETON STOCK FUND ALLOCATION FUND INCOME PORTFOLIO
-------------------------- -------------------------- ------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends . . . . . . . . . . . . . . . . . . . $ 2,523,957 $ 944,994 $ 3,447,325 $ 2,082,812 $ 2,457,673 $ 2,410,696
------------ ------------ ------------ ------------ ----------- -----------
EXPENSES:
Insurance charges . . . . . . . . . . . . . . . 931,046 1,306,677 853,988 1,398,064 236,508 359,644
------------ ------------ ------------ ------------ ----------- -----------
Net investment income (loss) . . . . . . . . 1,592,911 (361,683) 2,593,337 684,748 2,221,165 2,051,052
------------ ------------ ------------ ------------ ----------- -----------
REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED .
GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment transactions:
Proceeds from investments sold . . . . . . . 1,854,259 4,887,673 4,922,462 1,531,028 1,440,068 7,810,635
Cost of investments sold . . . . . . . . . . 1,418,082 3,777,878 4,133,798 1,234,719 1,418,844 7,586,042
------------ ------------ ------------ ------------ ----------- -----------
Net realized gain (loss) . . . . . . . . 436,177 1,109,795 788,664 296,309 21,224 224,593
------------ ------------ ------------ ------------ ----------- -----------
Change in unrealized gain (loss) on investments:
Unrealized gain (loss) beginning of period . 2,277,411 8,478,654 1,519,117 7,840,073 (1,388,217) 1,749,503
Unrealized gain (loss) end of period . . . . 19,683,373 2,277,411 13,051,820 1,519,117 388,257 (1,388,217)
------------ ------------ ------------ ------------ ----------- -----------
Net change in unrealized gain (loss)
for the period . . . . . . . . . . . . 17,405,962 (6,201,243) 11,532,703 (6,320,956) 1,776,474 (3,137,720)
------------ ------------ ------------ ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . . 19,435,050 (5,453,131) 14,914,704 (5,339,899) 4,018,863 (862,075)
------------ ------------ ------------ ------------ ----------- -----------
UNIT TRANSACTIONS:
Participant purchase payments . . . . . . . . . 19,692,435 39,232,523 12,887,607 42,047,835 5,066,931 9,491,538
Participant transfers from other Travelers
accounts 13,057,637 70,703,053 4,256,779 45,091,664 6,149,101 17,854,012
Administrative and asset allocation charges . . (141,055) (199,800) (96,665) (166,499) (28,375) (48,036)
Contract surrenders . . . . . . . . . . . . . . (2,518,476) (2,290,591) (3,155,578) (2,870,674) (783,785) (864,220)
Participant transfers to other Travelers
accounts . . . . . . . . . . . . . . . . . (14,890,010) (26,870,976) (12,109,593) (15,669,794) (5,123,256) (14,826,130)
Other payments to participants . . . . . . . . (56,870) (111,447) (194,707) (174,731) (16,630) (297,022)
------------ ------------ ------------ ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from unit transactions . . . . . 15,143,661 80,462,762 1,587,843 68,257,801 5,263,986 11,310,142
------------ ------------ ------------ ------------ ----------- -----------
Net increase (decrease) in net assets . . 34,578,711 75,009,631 16,502,547 62,917,902 9,282,849 10,448,067
NET ASSETS:
Beginning of period . . . . . . . . . . . . 135,754,363 60,744,732 132,092,334 69,174,432 33,978,416 23,530,349
------------ ------------ ------------ ------------ ----------- -----------
End of period . . . . . . . . . . . . . . . $170,333,074 $135,754,363 $148,594,881 $132,092,334 $43,261,265 $33,978,416
============ ============ ============ ============ =========== ===========
</TABLE>
-10-
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
<TABLE>
<CAPTION>
FIDELITY'S FIDELITY'S EQUITY- FIDELITY'S ASSET DREYFUS STOCK
GROWTH PORTFOLIO INCOME PORTFOLIO MANAGER PORTFOLIO INDEX FUND
----------------------------- ----------------------------- ------------------------------ -----------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,191,787 $ 7,980,052 $ 6,408,190 $ 2,272,534 $ 7,188,186 $ 11,642,403 $ 495,091 $ 967,727
------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
1,496,383 2,076,224 745,519 584,739 2,168,226 3,776,729 261,208 414,165
------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
(304,596) 5,903,828 5,662,671 1,687,795 5,019,960 7,865,674 233,883 553,562
------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
2,138,860 536,929 1,008,034 63,435 11,077,381 1,082,303 1,034,159 3,142,570
1,761,980 479,211 945,488 66,022 9,951,113 950,713 1,118,845 3,550,672
------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
376,880 57,718 62,546 (2,587) 1,126,268 131,590 (84,686) (408,102)
------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
7,539,489 13,687,213 313,667 104,352 (9,997,449) 20,934,353 (4,598,353) (4,368,729)
60,219,001 7,539,489 12,447,718 313,667 2,710,062 (9,997,449) 2,564,691 (4,598,353)
------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
52,679,512 (6,147,724) 12,134,051 209,315 12,707,511 (30,931,802) 7,163,044 (229,624)
------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
52,751,796 (186,178) 17,859,268 1,894,523 18,853,739 (22,934,538) 7,312,241 (84,164)
------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
30,500,439 59,359,898 21,219,856 23,978,386 33,909,350 101,058,500 4,866,521 9,301,654
22,261,143 60,520,647 40,788,304 58,461,159 9,267,893 99,669,238 6,188,448 5,962,556
(259,818) (398,535) (119,454) (94,158) (320,307) (601,917) (41,349) (72,647)
(5,415,105) (5,309,379) (2,172,109) (1,231,613) (7,663,924) (9,663,263) (800,516) (1,100,500)
(17,185,151) (25,808,607) (11,714,955) (9,413,073) (34,864,985) (37,372,036) (3,708,829) (8,460,165)
(133,511) (267,912) (71,626) (17,389) (544,237) (635,352) (22,115) (157,002)
------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
29,767,997 88,096,112 47,930,016 71,683,312 (216,210) 152,455,170 6,482,160 5,473,896
------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
82,519,793 87,909,934 65,789,284 73,577,835 18,637,529 129,520,632 13,794,401 5,389,732
210,162,032 122,252,098 87,685,044 14,107,209 340,812,791 211,292,159 36,156,158 30,766,426
------------ ------------ ------------ ----------- ------------ ------------ ----------- -----------
$292,681,825 $210,162,032 $153,474,328 $87,685,044 $359,450,320 $340,812,791 $49,950,559 $36,156,158
============ ============ ============ =========== ============ ============ =========== ===========
</TABLE>
-11-
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
7. SCHEDULE OF FUND U OPERATIONS AND CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND THE YEAR ENDED DECEMBER 31, 1994
(CONTINUED)
<TABLE>
<CAPTION>
AMERICAN ODYSSEY
AMERICAN ODYSSEY EMERGING OPPORTUNITIES AMERICAN ODYSSEY
CORE EQUITY FUND FUND INTERNATIONAL EQUITY FUND
-------------------------- ---------------------- ------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends . . . . . . . . . . . . . . . . . . . $ - $ 1,600,417 $ - $ 1,137,975 $ - $ 1,758,846
------------ ----------- ------------ ----------- ----------- -----------
EXPENSES:
Insurance charges . . . . . . . . . . . . . . . 731,366 872,511 627,956 700,451 357,621 457,980
------------ ----------- ------------ ----------- ----------- -----------
Net investment income (loss) . . . . . . . . (731,366) 727,906 (627,956) 437,524 (357,621) 1,300,866
------------ ----------- ------------ ----------- ----------- -----------
REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment transactions:
Proceeds from investments sold . . . . . . . 270,012 51,333 1,704,235 1,279,750 631,564 675,821
Cost of investments sold . . . . . . . . . . 239,170 50,337 1,325,270 1,073,345 565,415 582,141
------------ ----------- ------------ ----------- ----------- -----------
Net realized gain (loss) . . . . . . . . . 30,842 996 378,965 206,405 66,149 93,680
------------ ----------- ------------ ----------- ----------- -----------
Change in unrealized gain (loss) on investments:
Unrealized gain (loss) beginning of period . (2,790,941) 156,938 7,749,282 2,448,079 (1,757,196) 2,674,845
Unrealized gain (loss) end of period . . . . 18,382,092 (2,790,941) 28,672,147 7,749,282 3,518,879 (1,757,196)
------------ ----------- ------------ ----------- ----------- -----------
Net change in unrealized gain (loss)
for the period . . . . . . . . . . . . . 21,173,033 (2,947,879) 20,922,865 5,301,203 5,276,075 (4,432,041)
------------ ----------- ------------ ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . . 20,472,509 (2,218,977) 20,673,874 5,945,132 4,984,603 (3,037,495)
------------ ----------- ------------ ----------- ----------- -----------
UNIT TRANSACTIONS:
Participant purchase payments . . . . . . . . . 17,669,277 25,149,323 16,398,058 20,528,669 10,176,377 14,428,964
Participant transfers from other Travelers
accounts . . . . . . . . . . . . . . . . . . 11,697,558 48,123,620 14,962,063 41,201,751 7,833,903 28,811,508
Administrative and asset allocation charges . . (795,304) (1,028,088) (635,620) (807,375) (367,131) (506,764)
Contract surrenders . . . . . . . . . . . . . . (2,096,244) (1,734,704) (1,686,361) (1,348,510) (924,973) (884,711)
Participant transfers to other Travelers
accounts . . . . . . . . . . . . . . . . . . (5,715,225) (6,791,621) (9,320,070) (8,362,877) (5,331,370) (7,736,620)
Other payments to participants . . . . . . . . (75,578) (48,880) (50,734) (21,881) (20,378) (9,112)
------------ ----------- ------------ ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from unit transactions . . . . . 20,684,484 63,669,650 19,667,336 51,189,777 11,366,428 34,103,265
------------ ----------- ------------ ----------- ----------- -----------
Net increase (decrease) in net assets . . 41,156,993 61,450,673 40,341,210 57,134,909 16,351,031 31,065,770
Net Assets:
Beginning of period . . . . . . . . . . . . 99,046,500 37,595,827 86,274,625 29,139,716 51,065,333 19,999,563
------------ ----------- ------------ ----------- ----------- -----------
End of period . . . . . . . . . . . . . . . $140,203,493 $99,046,500 $126,615,835 $86,274,625 $67,416,364 $51,065,333
============ =========== ============ =========== =========== ===========
</TABLE>
-12-
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
<TABLE>
<CAPTION>
AMERICAN ODYSSEY
AMERICAN ODYSSEY INTERMEDIATE-TERM AMERICAN ODYSSEY
LONG-TERM BOND FUND BOND FUND SHORT-TERM BOND FUND ALLIANCE GROWTH PORTFOLIO
------------------------------ ---------------------------- ----------------------------- ---------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
$ - $ 2,487,367 $ - $ 1,887,104 $ - $ 661,843 $ - $ -
----------- ----------- ----------- ----------- ----------- ----------- -------- ------------
520,885 615,088 348,639 446,612 125,011 167,468 1,514 -
----------- ----------- ----------- ----------- ----------- ----------- -------- ------------
(520,885) 1,872,279 (348,639) 1,440,492 (125,011) 494,375 (1,514) -
----------- ----------- ----------- ----------- ----------- ----------- -------- ------------
182,308 54,554 246,104 111,706 602,436 465,840 43,674
176,847 57,696 241,862 111,618 606,405 465,141 40,223 -
----------- ----------- ----------- ----------- ----------- ----------- -------- ------------
5,461 (3,142) 4,242 88 (3,969) 699 3,451 -
----------- ----------- ----------- ----------- ----------- ----------- -------- ------------
(5,640,279) (1,103,433) (2,767,442) (94,877) (722,729) (70,550) - -
5,157,940 (5,640,279) 2,204,369 (2,767,442) 639,832 (722,729) 58,401 -
----------- ----------- ----------- ----------- ----------- ----------- -------- ------------
10,798,219 (4,536,846) 4,971,811 (2,672,565) 1,362,561 (652,179) 58,401 -
----------- ----------- ----------- ----------- ----------- ----------- -------- ------------
10,282,795 (2,667,709) 4,627,414 (1,231,985) 1,233,581 (157,105) 60,338 -
----------- ----------- ----------- ----------- ----------- ----------- -------- ------------
13,088,055 18,654,620 7,720,589 11,886,853 2,059,788 3,376,658 342,212 -
8,252,974 35,228,874 5,276,606 24,768,105 4,528,603 9,522,563 587,766 -
(572,509) (747,449) (357,555) (499,007) (111,982) (165,966) (441) -
(1,306,747) (1,137,829) (1,007,724) (1,030,466) (376,380) (526,031) (10,495) -
(4,101,354) (5,329,266) (3,411,821) (4,080,359) (2,205,381) (2,687,671) (72,227) -
(41,422) (18,691) (34,443) (17,982) (24,093) (11,836) - -
----------- ----------- ----------- ----------- ----------- ----------- -------- ------------
15,318,997 46,650,259 8,185,652 31,027,144 3,870,555 9,507,717 846,815 -
----------- ----------- ----------- ----------- ----------- ----------- -------- ------------
25,601,792 43,982,550 12,813,066 29,795,159 5,104,136 9,350,612 907,153 -
71,607,472 27,624,922 50,039,946 20,244,787 17,716,997 8,366,385 - -
----------- ----------- ----------- ----------- ----------- ----------- -------- ------------
$97,209,264 $71,607,472 $62,853,012 $50,039,946 $22,821,133 $17,716,997 $907,153 $ -
=========== =========== =========== =========== =========== =========== ======== ============
</TABLE>
-13-
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
7. SCHEDULE OF FUND U OPERATIONS AND CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND THE YEAR ENDED DECEMBER 31, 1994
(CONTINUED)
<TABLE>
<CAPTION>
G.T. GLOBAL STRATEGIC SMITH BARNEY SMITH BARNEY INTERNATIONAL
INCOME PORTFOLIO HIGH INCOME PORTFOLIO EQUITY PORTFOLIO
-------------------------- -------------------------- --------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends . . . . . . . . . . . . . . . . . . . $ - $ - $ - $ - $ - $ -
------------ ------------ ------------ ------------ ------------ ------------
EXPENSES:
Insurance charges . . . . . . . . . . . . . . . 161 - 108 - 511 -
------------ ------------ ------------ ------------ ------------ ------------
Net investment income (loss) . . . . . . . . (161) - (108) - (511) -
------------ ------------ ------------ ------------ ------------ ------------
REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment
transactions:
Proceeds from investments sold . . . . . . . 32,366 - 198,507 - 200,398 -
Cost of investments sold . . . . . . . . . . 30,740 - 198,229 - 192,744 -
------------ ------------ ------------ ------------ ------------ ------------
Net realized gain (loss) . . . . . . . . 1,626 - 278 - 7,654 -
------------ ------------ ------------ ------------ ------------ ------------
Change in unrealized gain (loss) on investments:
Unrealized gain (loss) beginning of period . - - - - - -
Unrealized gain (loss) end of period . . . . 1,220 - 102 - 6,170 -
------------ ------------ ------------ ------------ ------------ ------------
Net change in unrealized gain (loss)
for the period . . . . . . . . . . . . 1,220 - 102 - 6,170 -
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . . 2,685 - 272 - 13,313 -
------------ ------------ ------------ ------------ ------------ ------------
UNIT TRANSACTIONS:
Participant purchase payments . . . . . . . . . 15,776 - 41,430 - 75,103 -
Participant transfers from other Travelers
accounts. . . . . . . . . . . . . . . . . . . 105,066 - 219,023 - 371,981 -
Administrative and asset allocation charges . . (83) - (39) - (188) -
Contract surrenders . . . . . . . . . . . . . . (20) - (20) - (95) -
Participant transfers to other Travelers
accounts . . . . . . . . . . . . . . . . . . (44,687) - (200,615) - (214,836) -
Other payments to participants . . . . . . . . - - - - - -
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)in net assets
resulting from unit transactions . . . . 76,052 - 59,779 - 231,965 -
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets . 78,737 - 60,051 - 245,278 -
NET ASSETS:
Beginning of period . . . . . . . . . . . . - - - - - -
------------ ------------ ------------ ------------ ------------ ------------
End of period . . . . . . . . . . . . . . . $ 78,737 $ - $ 60,051 $ - $ 245,278 $ -
============ ============ ============ ============ ============ ============
</TABLE>
-14-
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
<TABLE>
<CAPTION>
SMITH BARNEY INCOME PUTNAM DIVERSIFIED
AND GROWTH PORTFOLIO INCOME PORTFOLIO MFS TOTAL RETURN PORTFOLIO COMBINED
----------------------------- ----------------------------- ------------------------------ -------------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
$ - $ - $ - $ - $ - $ - $ 34,598,773 $ 52,559,263
------------ ------------ ------------ ------------ ------------ ------------ -------------- --------------
1,407 - 652 - 1,128 - 11,245,598 16,581,825
------------ ------------ ------------ ------------ ------------ ------------ -------------- --------------
(1,407) - (652) - (1,128) - 23,353,175 35,977,438
------------ ------------ ------------ ------------ ------------ ------------ -------------- --------------
399,183 30 20,366 49,109,233 62,961,180
376,574 - 28 - 18,883 - 43,440,131 57,179,310
------------ ------------ ------------ ------------ ------------ ------------ -------------- --------------
22,609 - 2 - 1,483 - 5,669,102 5,781,870
------------ ------------ ------------ ------------ ------------ ------------ -------------- --------------
- - - - - - (8,676,019) 81,794,972
5,254 - 2,746 - 18,157 - 203,214,569 (8,676,019)
------------ ------------ ------------ ------------ ------------ ------------ -------------- --------------
5,254 - 2,746 - 18,157 - 211,890,588 (90,470,991)
------------ ------------ ------------ ------------ ------------ ------------ -------------- --------------
26,456 - 2,096 - 18,512 - 240,912,865 (48,711,683)
------------ ------------ ------------ ------------ ------------ ------------ -------------- --------------
253,134 - 80,445 - 240,897 - 215,745,859 427,701,738
762,723 - 463,844 - 469,874 - 178,524,167 601,760,125
(221) - (144) - (371) - (4,080,059) (5,793,309)
(4,852) - (15) - (578) - (38,828,534) (45,824,121)
(422,400) - (100) - (17,908) - (157,681,224) (243,643,400)
- - - - - - (1,505,208) (2,362,947)
------------ ------------ ------------ ------------ ------------ ------------ -------------- --------------
588,384 - 544,030 - 691,914 - 192,175,001 731,838,086
------------ ------------ ------------ ------------ ------------ ------------ -------------- --------------
614,840 - 546,126 - 710,426 - 433,087,866 683,126,403
- - - - - - 1,627,106,103 943,979,700
------------ ------------ ------------ ------------ ------------ ------------ -------------- --------------
$ 614,840 $ - $ 546,126 $ - $ 710,426 $ - $2,060,193,969 $1,627,106,103
============ ============ ============ ============ ============ ============ ============== ==============
</TABLE>
-15-
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
8. SCHEDULE OF ACCUMULATION AND ANNUITY UNITS FOR FUND U
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
MANAGED ASSETS TRUST HIGH YIELD BOND TRUST CAPITAL APPRECIATION FUND
------------------------ ---------------------- -------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period . . . . . . . . . 63,168,528 68,027,761 5,293,204 5,668,742 43,765,022 32,827,520
Accumulation units purchased and
transferred from other Travelers
accounts . . . . . . . . . . . . . . 3,087,795 9,829,134 797,527 1,483,985 10,183,240 26,936,524
Accumulation units redeemed and
transferred to other Travelers
accounts . . . . . . . . . . . . . . (5,274,564) (14,680,729) (857,673) (1,858,672) (7,125,373) (15,994,317)
Annuity units . . . . . . . . . . . . . . (3,135) (7,638) (365) (851) (2,252) (4,705)
----------- ----------- --------- ---------- ---------- -----------
Accumulation and annuity units
end of period . . . . . . . . . . . . 60,978,624 63,168,528 5,232,693 5,293,204 46,820,637 43,765,022
=========== =========== ========= ========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT SOCIAL AWARENESS
SECURITIES PORTFOLIO STOCK PORTFOLIO UTILITIES PORTFOLIO
------------------------ ---------------------- -------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period . . . . . . . . . 22,709,043 22,142,424 3,498,916 2,920,464 5,739,775 -
Accumulation units purchased and
transferred from other Travelers
accounts . . . . . . . . . . . . . . 2,186,811 11,851,220 1,457,894 1,580,346 5,735,541 8,412,648
Accumulation units redeemed and
transferred to other Travelers
accounts . . . . . . . . . . . . . . (3,519,337) (11,284,601) (249,339) (1,001,894) (2,377,392) (2,672,873)
Annuity units . . . . . . . . . . . . . . - - - - - -
----------- ----------- --------- ---------- ---------- ----------
Accumulation and annuity units
end of period . . . . . . . . . . . . 21,376,517 22,709,043 4,707,471 3,498,916 9,097,924 5,739,775
=========== =========== ========= ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
TEMPLETON ASSET
TEMPLETON BOND FUND TEMPLETON STOCK FUND ALLOCATION FUND
------------------------- ----------------------- --------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period . . . . . . . . . 10,185,995 8,013,975 101,461,716 43,847,436 103,406,989 51,892,645
Accumulation units purchased and
transferred from other Travelers
accounts . . . . . . . . . . . . . . 1,487,275 6,253,420 23,404,122 79,071,044 12,963,700 65,958,367
Accumulation units redeemed and
transferred to other Travelers
accounts . . . . . . . . . . . . . . (1,250,557) (4,080,815) (12,621,570) (21,455,245) (11,811,277) (14,443,661)
Annuity units . . . . . . . . . . . . . . (347) (585) (988) (1,519) (350) (362)
----------- ---------- ----------- ----------- ----------- -----------
Accumulation and annuity units
end of period . . . . . . . . . . . . 10,422,366 10,185,995 112,243,280 101,461,716 104,559,062 103,406,989
=========== ========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
FIDELITY'S HIGH FIDELITY'S GROWTH FIDELITY'S EQUITY-
INCOME PORTFOLIO PORTFOLIO INCOME PORTFOLIO
-------------------------- ------------------------ -------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period . . . . . . . . . 25,813,287 17,380,805 176,304,261 101,260,373 78,856,048 13,414,425
Accumulation units purchased and
transferred from other Travelers accounts 7,993,237 20,326,066 41,249,790 102,249,321 51,286,329 75,280,518
Accumulation units redeemed and
transferred to other Travelers accounts (4,277,695) (11,891,324) (17,955,737) (27,204,765) (11,585,631) (9,833,706)
Annuity units . . . . . . . . . . . . . . (1,392) (2,260) (511) (668) (2,767) (5,189)
---------- ----------- ----------- ----------- ----------- ----------
Accumulation and annuity units
end of period . . . . . . . . . . . . 29,527,437 25,813,287 199,597,803 176,304,261 118,553,979 78,856,048
========== =========== =========== =========== =========== ==========
</TABLE>
-16-
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
8. SCHEDULE OF ACCUMULATION AND ANNUITY UNITS FOR FUND U
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND THE YEAR ENDED DECEMBER 31, 1994
(CONTINUED)
<TABLE>
<CAPTION>
FIDELITY'S ASSET DREYFUS STOCK AMERICAN ODYSSEY
MANAGER PORTFOLIO INDEX FUND CORE EQUITY FUND
--------------------------- -------------------------- ----------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period . . . . . . . . . 282,474,420 162,412,958 31,599,969 26,788,975 100,081,556 37,136,233
Accumulation units purchased and
transferred from other Travelers accounts 35,126,125 158,768,309 8,727,943 13,394,123 27,182,151 72,443,145
Accumulation units redeemed and
transferred to other Travelers accounts (35,167,877) (38,691,316) (3,673,237) (8,583,129) (8,060,343) (9,497,822)
Annuity units . . . . . . . . . . . . . . (7,595) (15,531) - - - -
----------- ----------- ---------- ---------- ----------- -----------
Accumulation and annuity units
end of period . . . . . . . . . . . . 282,425,073 282,474,420 36,654,675 31,599,969 119,203,364 100,081,556
=========== =========== ========== ========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
AMERICAN ODYSSEY
EMERGING OPPORTUNITIES AMERICAN ODYSSEY AMERICAN ODYSSEY
FUND INTERNATIONAL EQUITY FUND LONG-TERM BOND FUND
--------------------------- -------------------------- ----------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period . . . . . . . . . 73,837,797 27,011,473 47,095,715 16,943,798 70,927,733 25,466,509
Accumulation units purchased and
transferred from other Travelers accounts 25,313,648 56,410,964 16,291,237 38,245,426 19,841,689 52,554,483
Accumulation units redeemed and
transferred to other Travelers accounts (9,452,232) (9,584,640) (6,048,379) (8,093,509) (5,613,468) (7,093,259)
Annuity units . . . . . . . . . . . . . . - - - - - -
---------- ---------- ---------- ---------- ---------- ----------
Accumulation and annuity units
end of period . . . . . . . . . . . . 89,699,213 73,837,797 57,338,573 47,095,715 85,155,954 70,927,733
========== ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
AMERICAN ODYSSEY
INTERMEDIATE-TERM AMERICAN ODYSSEY
BOND FUND SHORT-TERM BOND FUND ALLIANCE GROWTH PORTFOLIO
--------------------------- -------------------------- ----------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period . . . . . . . . . 50,402,986 19,564,524 17,610,778 8,201,363 - -
Accumulation units purchased and
transferred from other Travelers accounts 12,548,133 36,451,352 6,343,614 12,765,365 850,898 -
Accumulation units redeemed and
transferred to other Travelers accounts (4,651,414) (5,612,890) (2,628,095) (3,355,950) (75,581) -
Annuity units . . . . . . . . . . . . . . - - - - - -
---------- ---------- ---------- ---------- ------- -------
Accumulation and annuity units
end of period . . . . . . . . . . . . 58,299,705 50,402,986 21,326,297 17,610,778 775,317 -
========== ========== ========== ========== ======= =======
</TABLE>
<TABLE>
<CAPTION>
G.T. GLOBAL STRATEGIC SMITH BARNEY SMITH BARNEY INTERNATIONAL
INCOME PORTFOLIO HIGH INCOME PORTFOLIO EQUITY PORTFOLIO
--------------------------- -------------------------- ----------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period . . . . . . . . . - - - - - -
Accumulation units purchased and
transferred from other Travelers accounts 112,306 - 249,673 - 434,246 -
Accumulation units redeemed and
transferred to other Travelers accounts (41,031) - (192,319) - (210,447) -
Annuity units . . . . . . . . . . . . . . - - - - - -
-------- ------ -------- ------ --------- -------
Accumulation and annuity units
end of period . . . . . . . . . . . . 71,275 - 57,354 - 223,799 -
======== ====== ======== ====== ========= =======
</TABLE>
-17-
<PAGE> 19
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
8. SCHEDULE OF ACCUMULATION AND ANNUITY UNITS FOR FUND U
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND THE YEAR ENDED DECEMBER 31, 1994
(CONTINUED)
<TABLE>
<CAPTION>
SMITH BARNEY INCOME PUTNAM DIVERSIFIED
AND GROWTH PORTFOLIO INCOME PORTFOLIO MFS TOTAL RETURN PORTFOLIO
----------------------- ---------------------- ---------------------------
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period . . . . . . . . . - - - - - -
Accumulation units purchased and
transferred from other Travelers accounts 956,429 - 513,908 - 669,504 -
Accumulation units redeemed and
transferred to other Travelers accounts (395,570) - (243) - (17,480) -
Annuity units . . . . . . . . . . . . . . - - - - - -
-------- --------- ------- ------- ------- --------
Accumulation and annuity units
end of period . . . . . . . . . . . . 560,859 - 513,665 - 652,024 -
======== ========= ======= ======= ======= ========
</TABLE>
-18-
<PAGE> 20
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<PAGE> 21
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<PAGE> 22
Independent Accountants
COOPERS & LYBRAND, L.L.P.
Hartford, Connecticut
The financial information included herein has been taken from the records of
Fund U. This financial information has not been audited by the Fund's
independent accountants, who therefore express no opinion concerning its
accuracy. However, it is management's opinion that all proper adjustments have
been made.
This report is prepared for the general information of contract owners and is
not an offer of shares of The Travelers Fund U for Variable Annuities or Fund
U's underlying mutual funds. It should not be used in connection with any offer
except in conjunction with the Prospectuses for the Variable Annuity products
offered by The Travelers Insurance Company and the Prospectuses for the
underlying mutual funds, which collectively contain all pertinent information,
including the applicable selling commissions.
VG-FNDU (S/A) (6-95) Printed in U.S.A.
