<PAGE> 1
THE TRAVELERS FUND UL
FOR VARIABLE LIFE INSURANCE
SEMI-ANNUAL REPORT
June 30, 1995
[TRAVELERS INSURANCE LOGO]
THE TRAVELERS INSURANCE COMPANY
ONE TOWER SQUARE
HARTFORD, CONNECTICUT 06183
<PAGE> 2
THE TRAVELERS FUND UL
FOR VARIABLE LIFE INSURANCE
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1995
<TABLE>
<S> <C>
ASSETS:
Investments in eligible mutual funds at market value:
Managed Assets Trust, 62,866 shares (cost $843,791) . . . . . . . . . . . . . . . . . . . . $ 885,146
High Yield Bond Trust, 29,251 shares (cost $248,267) . . . . . . . . . . . . . . . . . . . 253,024
Capital Appreciation Fund, 22,857 shares (cost $578,487) . . . . . . . . . . . . . . . . . 667,666
Cash Income Trust, 1,485,039 shares (cost $1,485,039) . . . . . . . . . . . . . . . . . . . 1,485,039
The Travelers Series Trust:
U.S. Government Securities Portfolio, 11,136 shares (cost $118,027) . . . . . . . . . . . 128,177
Utilities Portfolio, 2,402 shares (cost $25,546) . . . . . . . . . . . . . . . . . . . . . 26,657
Templeton Variable Products Series Fund:
Templeton Bond Fund, 14,563 shares (cost $158,171) . . . . . . . . . . . . . . . . . . . . 164,561
Templeton Stock Fund, 84,522 shares (cost $1,480,250) . . . . . . . . . . . . . . . . . . 1,605,070
Templeton Asset Allocation Fund, 75,584 shares (cost $1,200,686) . . . . . . . . . . . . . 1,293,249
Fidelity's Variable Insurance Products Fund:
High Income Portfolio, 36,593 shares (cost $392,928) . . . . . . . . . . . . . . . . . . . 409,475
Growth Portfolio, 57,090 shares (cost $1,263,027) . . . . . . . . . . . . . . . . . . . . 1,524,301
Equity-Income Portfolio, 63,199 shares (cost $988,496) . . . . . . . . . . . . . . . . . . 1,067,424
Fidelity's Variable Insurance Products Fund II:
Asset Manager Portfolio, 143,945 shares (cost $2,017,970) . . . . . . . . . . . . . . . . 2,062,737
Dreyfus Stock Index Fund, 8,916 shares (cost $122,105) . . . . . . . . . . . . . . . . . . 136,773
American Odyssey Funds, Inc.:
American Odyssey Core Equity Fund, 505 shares (cost $5,336) . . . . . . . . . . . . . . . 6,075
American Odyssey Emerging Opportunities Fund, 5,778 shares (cost $71,432) . . . . . . . . 83,140
American Odyssey International Equity Fund, 3,187 shares (cost $34,448) . . . . . . . . . 37,414
American Odyssey Long-Term Bond Fund, 1,597 shares (cost $15,984) . . . . . . . . . . . . 17,028
American Odyssey Intermediate-Term Bond Fund, 11 shares (cost $110) . . . . . . . . . . . 111
American Odyssey Short-Term Bond Fund, 443 shares (cost $4,444) . . . . . . . . . . . . . 4,585
Dividends receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,429
Receivable for premium payments and transfers from other Travelers accounts . . . . . . . . . 24,562
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
-----------
Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,886,882
-----------
LIABILITIES:
Payable for contract surrenders and transfers to other Travelers accounts . . . . . . . . . . 14,318
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 773
-----------
Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,091
-----------
NET ASSETS: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,871,791
===========
</TABLE>
See Notes to Financial Statements
-1-
<PAGE> 3
THE TRAVELERS FUND UL
FOR VARIABLE LIFE INSURANCE
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1995
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 240,024
EXPENSES:
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . . 27,789
-----------
Net investment income . . . . . . . . . . . . . . . . . . . . . 212,235
-----------
REALIZED GAIN AND CHANGE IN UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain from investment transactions:
Proceeds from investments sold . . . . . . . . . . . . . . . . . $ 2,091,537
Cost of investments sold . . . . . . . . . . . . . . . . . . . . 2,069,024
-----------
Net realized gain . . . . . . . . . . . . . . . . . . . . . . . 22,513
Change in unrealized gain (loss) on investments:
Unrealized loss at December 31, 1994 . . . . . . . . . . . . . . (79,932)
Unrealized gain at June 30, 1995 . . . . . . . . . . . . . . . . 803,108
-----------
Net change in unrealized gain (loss) for the period . . . . . . 883,040
-----------
Net realized gain and change in unrealized gain (loss) . . . 905,553
-----------
Net increase in net assets resulting from operations . . . . . . . $ 1,117,788
===========
</TABLE>
See Notes to Financial Statements
-2-
<PAGE> 4
THE TRAVELERS FUND UL
FOR VARIABLE LIFE INSURANCE
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 . . . . . . . . . . . . . . . . . . . . . . $ 212,235 $ 94,073
Net realized gain (loss) from investment transactions . . . . . . 22,513 (6,549)
Net change in unrealized gain (loss) on investments . . . . . . . 883,040 (140,954)
------------ ------------
Net increase (decrease) in net assets resulting from operations 1,117,788 (53,430)
------------ ------------
UNIT TRANSACTIONS:
Participant premium payments
(applicable to 3,206,285 and 4,481,114 units, respectively) . . 3,717,013 5,311,444
Participant transfers from other Travelers accounts
(applicable to 2,288,240 and 4,833,697 units, respectively) . . 2,538,717 5,175,800
Contract surrenders
(applicable to 759,466 and 723,287 units, respectively) . . . . (870,440) (835,173)
Participant transfers to other Travelers accounts
(applicable to 1,700,657 and 2,824,076 units, respectively) . . (2,205,482) (3,873,682)
------------ ------------
Net increase in net assets resulting from unit transactions . . 3,179,808 5,778,389
------------ ------------
Net increase in net assets . . . . . . . . . . . . . . . . . . 4,297,596 5,724,959
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . 7,574,195 1,849,236
------------ ------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,871,791 $ 7,574,195
============ ============
</TABLE>
See Notes to Financial Statements
-3-
<PAGE> 5
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Travelers Fund UL for Variable Life Insurance ("Fund UL") 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 life insurance contracts issued by The
Travelers. Fund UL 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 UL was $573,876 at June 30, 1995.
Premium payments applied to Fund UL are invested in one or more eligible
mutual funds in accordance with the selection made by the owner. As of
June 30, 1995, the eligible mutual funds available under Fund UL are:
Managed Assets Trust; High Yield Bond Trust; Capital Appreciation Fund;
Cash Income Trust; U.S. Government Securities 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. (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. and Dreyfus Stock Index Fund which are
incorporated under Maryland law.
The following is a summary of significant accounting policies consistently
followed by Fund UL 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 UL 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 UL. Fund UL 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 $5,515,253 and $2,091,537,
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 $11,054,544
at June 30, 1995. Gross unrealized appreciation for all investments at
June 30, 1995 was $803,108. There was no gross unrealized depreciation at
June 30, 1995.
3. CONTRACT CHARGES
Insurance charges and administrative charges up to a maximum of 0.80% and
0.10%, respectively, of the value of Fund UL on an annual basis, are
allowed for mortality and expense risks and administrative expenses
assumed by The Travelers. For the six months ended June 30, 1995, the
insurance charges were 0.60%, and the administrative charges were waived
by The Travelers.
The Travelers received contingent surrender charges on full or partial
contract surrenders. Such charges are computed by applying various
percentages to premiums and/or stated contract amounts. The Travelers
received $13,773 and $8,349 in satisfaction of such surrender 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 CONTRACT OWNERS' EQUITY
<TABLE>
<CAPTION>
JUNE 30, 1995
--------------------------------------
UNIT NET
UNITS VALUE ASSETS
----- ----- ------
<S> <C> <C> <C>
Managed Assets Trust . . . . . . . . . . . . . . . . . . . . . . . . 492,439 $ 1.798 $ 885,136
High Yield Bond Trust . . . . . . . . . . . . . . . . . . . . . . . . 139,518 1.814 253,053
Capital Appreciation Fund . . . . . . . . . . . . . . . . . . . . . . 445,407 1.499 667,848
Cash Income Trust . . . . . . . . . . . . . . . . . . . . . . . . . . 1,056,188 1.409 1,488,144
The Travelers Series Trust
U.S. Government Securities Portfolio . . . . . . . . . . . . . . . 119,842 1.070 128,169
Utilities Portfolio . . . . . . . . . . . . . . . . . . . . . . . . 24,125 1.106 26,680
Templeton Variable Products Series Fund
Templeton Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . 160,389 1.026 164,550
Templeton Stock Fund . . . . . . . . . . . . . . . . . . . . . . . 1,471,621 1.093 1,607,864
Templeton Asset Allocation Fund . . . . . . . . . . . . . . . . . . 1,223,809 1.057 1,293,322
Fidelity's Variable Insurance Products Fund
High Income Portfolio . . . . . . . . . . . . . . . . . . . . . . . 384,917 1.065 409,810
Growth Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . 1,264,825 1.205 1,524,498
Equity-Income Portfolio . . . . . . . . . . . . . . . . . . . . . . 901,344 1.192 1,074,018
Fidelity's Variable Insurance Products Fund II
Asset Manager Portfolio . . . . . . . . . . . . . . . . . . . . . . 2,117,915 0.973 2,060,171
Dreyfus Stock Index Fund . . . . . . . . . . . . . . . . . . . . . . 114,210 1.204 137,477
American Odyssey Funds, Inc.
American Odyssey Core Equity Fund . . . . . . . . . . . . . . . . . 5,084 1.198 6,089
American Odyssey Emerging Opportunities Fund . . . . . . . . . . . 65,163 1.315 85,667
American Odyssey International Equity Fund . . . . . . . . . . . . 36,705 1.023 37,565
American Odyssey Long-Term Bond Fund . . . . . . . . . . . . . . . 15,006 1.135 17,027
American Odyssey Intermediate-Term Bond Fund . . . . . . . . . . . 110 1.009 111
American Odyssey Short-Term Bond Fund . . . . . . . . . . . . . . . 4,308 1.066 4,592
------------
Net Contract Owners' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,871,791
============
</TABLE>
5. SUBSEQUENT EVENTS
Effective July 12, 1995, the following mutual funds will no longer be available
to new contract owners under Fund UL. These mutual funds are: 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.
On or after August 21, 1995, eight new investment alternatives will become
available under Fund UL. These investment alternatives include: Smith Barney
Income and Growth Portfolio, Alliance Growth Portfolio, Smith Barney High
Income Portfolio, and MFS Total Return Portfolio of the Smith Barney/Travelers
Series Fund Inc., the Total Return Portfolio of the Smith Barney Series Fund,
and Zero Coupon Bond Portfolios (Series 1998, 2000 and 2005) of The Travelers
Series Trust.
-5-
<PAGE> 7
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
6. SCHEDULE OF FUND UL 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 $ 40,936 $ 70,237 $ 18,821 $ 11,348 $ 2,760 $ 841
----------- ------------ ----------- ------------ ----------- -----------
EXPENSES:
Insurance charges 2,444 5,908 713 772 1,496 1,554
----------- ------------ ----------- ------------ ----------- -----------
Net investment income (loss) 38,492 64,329 18,108 10,576 1,264 (713)
----------- ------------ ----------- ------------ ----------- -----------
REALIZED GAIN (LOSS) AND CHANGE IN
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment
transactions:
Proceeds from investments sold 140,454 238,758 32,371 101,106 33,391 39,915
Cost of investments sold 143,908 242,915 35,506 106,114 31,265 33,059
----------- ------------ ----------- ------------ ----------- -----------
Net realized gain (loss) (3,454) (4,157) (3,135) (5,008) 2,126 6,856
----------- ------------ ----------- ------------ ----------- -----------
Change in unrealized gain (loss) on
investments:
Unrealized gain (loss) beginning of
period (39,140) 46,522 (4,540) 2,981 (3,117) 11,519
Unrealized gain (loss) end of period 41,355 (39,140) 4,757 (4,540) 89,179 (3,117)
----------- ------------ ----------- ------------ ----------- -----------
Net change in unrealized gain (loss)
for the period 80,495 (85,662) 9,297 (7,521) 92,296 (14,636)
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations 115,533 (25,490) 24,270 (1,953) 95,686 (8,493)
----------- ------------ ----------- ------------ ----------- -----------
UNIT TRANSACTIONS:
Participant premium payments 108,633 183,898 33,636 45,381 141,765 152,844
Participant transfers from other
Travelers accounts 10,415 69,184 439 149,268 99,889 187,041
Contract surrenders (131,943) (123,712) (35,229) (40,505) (55,920) (55,126)
Participant transfers to other
Travelers accounts (42,677) (185,767) (689) (74,029) (7,021) (24,764)
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from unit transactions (55,572) (56,397) (1,843) 80,115 178,713 259,995
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) in net assets 59,961 (81,887) 22,427 78,162 274,399 251,502
NET ASSETS:
Beginning of period 825,175 907,062 230,626 152,464 393,449 141,947
----------- ------------ ----------- ------------ ----------- -----------
End of period $ 885,136 $ 825,175 $ 253,053 $ 230,626 $ 667,848 $ 393,449
=========== ============ =========== ============ =========== ===========
</TABLE>
-6-
<PAGE> 8
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
<TABLE>
<CAPTION>
CASH U.S. GOVERNMENT
INCOME TRUST SECURITIES 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>
$ 25,041 $ 29,710 $ 6,396 $ - $ 56 $ - $ 5,067 $ 11
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
3,410 6,114 359 324 46 3 376 160
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
21,631 23,596 6,037 (324) 10 (3) 4,691 (149)
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
1,307,560 2,478,281 29,535 8,194 7,540 46 9,610 24,059
1,307,560 2,478,281 29,568 8,507 7,300 47 9,282 24,114
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
- - (33) (313) 240 (1) 328 (55)
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
- - (680) - (1) - 332 -
- - 10,150 (680) 1,112 (1) 6,389 332
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
- - 10,830 (680) 1,113 (1) 6,057 332
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
21,631 23,596 16,834 (1,317) 1,363 (5) 11,076 128
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
1,379,617 2,960,609 17,271 32,322 6,366 2,180 79,331 44,718
636,148 1,334,856 14,896 86,590 21,814 305 13,653 43,641
(86,063) (207,394) (8,003) (7,983) (1,118) (89) (9,740) (5,011)
(1,687,234) (3,535,385) (21,003) (1,438) (4,118) (18) (3,401) (9,845)
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
242,468 552,686 3,161 109,491 22,944 2,378 79,843 73,503
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
264,099 576,282 19,995 108,174 24,307 2,373 90,919 73,631
1,224,045 647,763 108,174 - 2,373 - 73,631 -
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
$ 1,488,144 $ 1,224,045 $ 128,169 $ 108,174 $ 26,680 $ 2,373 $ 164,550 $ 73,631
=========== ============ =========== =========== =========== =========== ============ ===========
</TABLE>
-7-
<PAGE> 9
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
6. SCHEDULE OF FUND UL 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 $ 19,051 $ 120 $ 26,362 $ 97 $ 19,756 $ 408
----------- ------------ ----------- ------------ ----------- -----------
EXPENSES:
Insurance charges 3,580 2,207 3,264 2,572 988 644
----------- ------------ ----------- ------------ ----------- -----------
Net investment income (loss) 15,471 (2,087) 23,098 (2,475) 18,768 (236)
----------- ------------ ----------- ------------ ----------- -----------
REALIZED GAIN (LOSS) AND CHANGE IN
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment
transactions:
Proceeds from investments sold 133,950 17,171 40,286 13,283 12,245 11,230
Cost of investments sold 125,139 17,388 39,110 13,585 12,517 12,052
----------- ------------ ----------- ------------ ----------- -----------
Net realized gain (loss) 8,811 (217) 1,176 (302) (272) (822)
----------- ------------ ----------- ------------ ----------- -----------
Change in unrealized gain (loss) on
investments:
Unrealized gain (loss) beginning of
period (19,006) - (10,005) - (924) -
Unrealized gain (loss) end of period 124,820 (19,006) 92,563 (10,005) 16,547 (924)
----------- ------------ ----------- ------------ ----------- -----------
Net change in unrealized gain
(loss) for the period 143,826 (19,006) 102,568 (10,005) 17,471 (924)
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations 168,108 (21,310) 126,842 (12,782) 35,967 (1,982)
----------- ------------ ----------- ------------ ----------- -----------
UNIT TRANSACTIONS:
Participant premium payments 396,257 390,647 269,375 277,719 116,520 107,547
Participant transfers from other
Travelers accounts 477,861 534,732 70,722 714,112 43,947 180,024
Contract surrenders (118,609) (77,915) (72,569) (59,628) (33,837) (26,639)
Participant transfers to other
Travelers accounts (129,825) (12,082) (15,474) (4,995) (6,322) (5,415)
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from unit transactions 625,684 835,382 252,054 927,208 120,308 255,517
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) in net
assets 793,792 814,072 378,896 914,426 156,275 253,535
NET ASSETS:
Beginning of period 814,072 - 914,426 - 253,535 -
----------- ------------ ----------- ------------ ----------- -----------
End of period $ 1,607,864 $ 814,072 $ 1,293,322 $ 914,426 $ 409,810 $ 253,535
=========== ============ =========== ============ =========== ===========
</TABLE>
-8-
<PAGE> 10
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>
$ 4,488 $ 651 $ 37,899 $ 5,526 $ 32,170 $ 871 $ 1,221 $ 807
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
3,112 1,988 2,291 1,064 5,130 4,081 276 112
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
1,376 (1,337) 35,608 4,462 27,040 (3,210) 945 695
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
122,677 18,549 12,545 14,686 173,181 26,613 7,489 4,995
107,237 20,245 11,622 14,486 175,608 27,788 6,532 4,858
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
15,440 (1,696) 923 200 (2,427) (1,175) 957 137
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
30,533 - (795) - (31,871) - (201) -
261,274 30,533 78,928 (795) 44,767 (31,871) 14,668 (201)
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
230,741 30,533 79,723 (795) 76,638 (31,871) 14,869 (201)
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
247,557 27,500 116,254 3,867 101,251 (36,256) 16,771 631
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
389,887 312,051 243,624 184,990 440,697 591,289 53,165 17,235
377,908 487,427 284,075 343,599 405,350 972,105 26,926 34,387
(115,193) (79,931) (61,623) (34,496) (125,938) (111,946) (6,664) (4,088)
(115,041) (7,667) (3,741) (2,531) (167,089) (9,292) (501) (385)
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
537,561 711,880 462,335 491,562 553,020 1,442,156 72,926 47,149
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
785,118 739,380 578,589 495,429 654,271 1,405,900 89,697 47,780
739,380 - 495,429 - 1,405,900 - 47,780 -
----------- ------------ ----------- ----------- ----------- ----------- ------------ -----------
$ 1,524,498 $ 739,380 $ 1,074,018 $ 495,429 $ 2,060,171 $ 1,405,900 $ 137,477 $ 47,780
=========== ============ =========== =========== =========== =========== ============ ===========
</TABLE>
-9-
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
6. SCHEDULE OF FUND UL 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 $ - $ 3 $ - $ 339 $ - $ 504
----------- ------------ ----------- ------------ ----------- ------------
EXPENSES:
Insurance charges 18 - 163 25 90 20
----------- ------------ ----------- ------------ ----------- ------------
Net investment income (loss) (18) 3 (163) 314 (90) 484
----------- ------------ ----------- ------------ ----------- ------------
REALIZED GAIN (LOSS) AND CHANGE IN
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment
transactions:
Proceeds from investments sold 5,670 - 10,808 148 11,532 85
Cost of investments sold 5,037 - 9,436 142 11,732 87
----------- ------------ ----------- ------------ ----------- ------------
Net realized gain (loss) 633 - 1,372 6 (200) (2)
----------- ------------ ----------- ------------ ----------- ------------
Change in unrealized gain (loss) on
investments:
Unrealized gain (loss) beginning of
period (2) - 625 - (1,033) -
Unrealized gain (loss) end of period 739 (2) 11,708 625 2,966 (1,033)
----------- ------------ ----------- ------------ ----------- ------------
Net change in unrealized gain
(loss) for the period 741 (2) 11,083 625 3,999 (1,033)
----------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from operations 1,356 1 12,292 945 3,709 (551)
----------- ------------ ----------- ------------ ----------- ------------
UNIT TRANSACTIONS:
Participant premium payments 115 10 24,819 3,320 8,294 3,257
Participant transfers from other
Travelers accounts 4,618 176 27,747 21,735 13,822 12,193
Contract surrenders (174) (8) (3,795) (327) (2,598) (232)
Participant transfers to other
Travelers accounts (5) - (1,049) (20) (281) (48)
----------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from unit transactions 4,554 178 47,722 24,708 19,237 15,170
----------- ------------ ----------- ------------ ----------- ------------
Net increase (decrease) in net assets 5,910 179 60,014 25,653 22,946 14,619
NET ASSETS:
Beginning of period 179 - 25,653 - 14,619 -
----------- ------------ ----------- ------------ ----------- ------------
End of period $ 6,089 $ 179 $ 85,667 $ 25,653 $ 37,565 $ 14,619
=========== ============ =========== ============ =========== ============
</TABLE>
-10-
<PAGE> 12
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 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>
$ - $ 150 $ - $ - $ - $ 1 $ 240,024 $ 121,624
----------- ------------ ----------- ----------- ----------- ----------- -------------- -------------
26 3 - - 7 - 27,789 27,551
----------- ------------ ----------- ----------- ----------- ----------- -------------- -------------
(26) 147 - - (7) 1 212,235 94,073
----------- ------------ ----------- ----------- ----------- ----------- -------------- -------------
350 98 - - 343 - 2,091,537 2,997,217
331 98 - - 334 - 2,069,024 3,003,766
----------- ------------ ----------- ----------- ----------- ----------- -------------- -------------
19 - - - 9 - 22,513 (6,549)
----------- ------------ ----------- ----------- ----------- ----------- -------------- -------------
(106) - - - (1) - (79,932) 61,022
1,044 (106) 1 - 141 (1) 803,108 (79,932)
----------- ------------ ----------- ----------- ----------- ----------- -------------- -------------
1,150 (106) 1 - 142 (1) 883,040 (140,954)
----------- ------------ ----------- ----------- ----------- ----------- -------------- -------------
1,143 41 1 - 144 - 1,117,788 (53,430)
----------- ------------ ----------- ----------- ----------- ----------- -------------- -------------
5,655 1,410 121 - 1,865 17 3,717,013 5,311,444
5,523 4,424 20 - 2,944 1 2,538,717 5,175,800
(1,032) (136) (25) - (367) (7) (870,440) (835,173)
- (1) (6) - (5) - (2,205,482) (3,873,682)
----------- ------------ ----------- ----------- ----------- ----------- -------------- -------------
10,146 5,697 110 - 4,437 11 3,179,808 5,778,389
----------- ------------ ----------- ----------- ----------- ----------- -------------- -------------
11,289 5,738 111 - 4,581 11 4,297,596 5,724,959
5,738 - - - 11 - 7,574,195 1,849,236
----------- ------------ ----------- ----------- ----------- ----------- -------------- -------------
$ 17,027 $ 5,738 $ 111 $ - $ 4,592 $ 11 $ 11,871,791 $ 7,574,195
=========== ============ =========== =========== =========== =========== ============== =============
</TABLE>
-11-
<PAGE> 13
THIS PAGE INTENTIONALLY LEFT BLANK
12
<PAGE> 14
Independent Accountants
COOPERS & LYBRAND, L.L.P.
Hartford, Connecticut
The financial information included herein has been taken from the records of
Fund UL. 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 UL for Variable Life Insurance or
Fund UL's underlying mutual funds. It should not be used in connection with any
offer except in conjunction with the Variable Universal Life Insurance
Prospectus and the Prospectuses of the underlying mutual funds, which
collectively contain all pertinent information, including the applicable
selling commissions.
