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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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<PAGE> PAGE 17
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SIGNATURE THOMAS M. REYNOLDS
TITLE CONTROLLER
[ARTICLE] 6
[CIK] 0000808244
[NAME] SMITH BARNEY VARIABLE ACCOUNT FUNDS
[SERIES]
[NUMBER] 1
[NAME] INCOME AND GROWTH PORTFOLIO
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 11,671,768
[INVESTMENTS-AT-VALUE] 16,523,652
[RECEIVABLES] 30,159
[ASSETS-OTHER] 126
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 16,553,937
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 317,978
[TOTAL-LIABILITIES] 317,972
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 6,937,174
[SHARES-COMMON-STOCK] 939,010
[SHARES-COMMON-PRIOR] 1,416,734
[ACCUMULATED-NII-CURRENT] 405,947
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 4,040,960
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 4,851,884
[NET-ASSETS] 16,235,965
[DIVIDEND-INCOME] 463,735
[INTEREST-INCOME] 76,371
[OTHER-INCOME] 1,501
[EXPENSES-NET] 140,392
[NET-INVESTMENT-INCOME] 398,213
[REALIZED-GAINS-CURRENT] 4,040,732
[APPREC-INCREASE-CURRENT] 114,008
[NET-CHANGE-FROM-OPS] 4,552,953
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 90,206
[DISTRIBUTIONS-OF-GAINS] 1,210,791
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 12,756
[NUMBER-OF-SHARES-REDEEMED] 568,198
[SHARES-REINVESTED] 77,718
[NET-CHANGE-IN-ASSETS] (4,575,840)
[ACCUMULATED-NII-PRIOR] 96,749
[ACCUMULATED-GAINS-PRIOR] 1,210,824
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 109,300
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 140,392
[AVERAGE-NET-ASSETS] 18,204,924
[PER-SHARE-NAV-BEGIN] 14.69
[PER-SHARE-NII] 00.47
[PER-SHARE-GAIN-APPREC] 03.61
[PER-SHARE-DIVIDEND] 00.10
[PER-SHARE-DISTRIBUTIONS] 01.38
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 17.29
[EXPENSE-RATIO] 00.77
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000808244
[NAME] SMITH BARNEY VARIABLE ACCOUNT FUNDS
[SERIES]
[NUMBER] 2
[NAME] RESERVE ACCOUNT PORTFOLIO
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 0
[INVESTMENTS-AT-VALUE] 0
[RECEIVABLES] 42,529
[ASSETS-OTHER] 63,711
[OTHER-ITEMS-ASSETS] 38
[TOTAL-ASSETS] 106,278
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 9,300
[TOTAL-LIABILITIES] 9,300
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 96,121
[SHARES-COMMON-STOCK] 12,593
[SHARES-COMMON-PRIOR] 39,529
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 857
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 96,978
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 4,930
[OTHER-INCOME] 0
[EXPENSES-NET] 1,905
[NET-INVESTMENT-INCOME] 3,025
[REALIZED-GAINS-CURRENT] 0
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] 3,025
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 2,236
[DISTRIBUTIONS-OF-GAINS] 27,718
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 185
[NUMBER-OF-SHARES-REDEEMED] 31,011
[SHARES-REINVESTED] 3,890
[NET-CHANGE-IN-ASSETS] 337,562
[ACCUMULATED-NII-PRIOR] 64,641
[ACCUMULATED-GAINS-PRIOR] 27,718
[OVERDISTRIB-NII-PRIOR] 68
[OVERDIST-NET-GAINS-PRIOR] 27,718
[GROSS-ADVISORY-FEES] 857
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 22,157
[AVERAGE-NET-ASSETS] 190,158
[PER-SHARE-NAV-BEGIN] 10.99
[PER-SHARE-NII] 00.15
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] 00.25
[PER-SHARE-DISTRIBUTIONS] 03.19
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 07.70
[EXPENSE-RATIO] 01.00
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000808244
[NAME] SMITH BARNEY VARIABLE ACCOUNT FUNDS
[SERIES]
[NUMBER] 3
[NAME] U.S. GOVERNMENT/HIGH QUALITY PORTFOLIO
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 371,000
[INVESTMENTS-AT-VALUE] 371,000
[RECEIVABLES] 15,201
[ASSETS-OTHER] 1,243,733
[OTHER-ITEMS-ASSETS] 109
[TOTAL-ASSETS] 1,630,043
[PAYABLE-FOR-SECURITIES] 58
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 12,820
[TOTAL-LIABILITIES] 12,878
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 1,424,128
[SHARES-COMMON-STOCK] 127,737
[SHARES-COMMON-PRIOR] 222,969
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 88,295
[ACCUMULATED-NET-GAINS] 104,742
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 1,617,165
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 111,450
[OTHER-INCOME] 0
[EXPENSES-NET] 21,001
[NET-INVESTMENT-INCOME] 90,449
[REALIZED-GAINS-CURRENT] 104,975
[APPREC-INCREASE-CURRENT] (83,469)
[NET-CHANGE-FROM-OPS] 111,955
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 90,206
[DISTRIBUTIONS-OF-GAINS] 1,210,791
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 20,511
[NUMBER-OF-SHARES-REDEEMED] 124,615
[SHARES-REINVESTED] 8,832
[NET-CHANGE-IN-ASSETS] 111,955
[ACCUMULATED-NII-PRIOR] 38,858
[ACCUMULATED-GAINS-PRIOR] 145,254
[OVERDISTRIB-NII-PRIOR] 2,604
[OVERDIST-NET-GAINS-PRIOR] 106,821
[GROSS-ADVISORY-FEES] 9,382
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 21,001
[AVERAGE-NET-ASSETS] 2,087,259
[PER-SHARE-NAV-BEGIN] 12.90
[PER-SHARE-NII] 00.72
[PER-SHARE-GAIN-APPREC] (00.02)
[PER-SHARE-DIVIDEND] 00.04
[PER-SHARE-DISTRIBUTIONS] 00.90
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 12.66
[EXPENSE-RATIO] 01.00
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
To the Shareholders and Board of Trustees of
Smith Barney Variable Account Funds:
In planning and performing our audit of the financial statements
of Income and Growth Portfolio, U.S. Government/High Quality
Securities Portfolio and Reserve Account Portfolio of Smith
Barney Variable Account Funds (the "Fund") for the year ended
December 31, 1997, we considered its internal control, including
control activities for safeguarding securities, in order to
determine our auditing procedures for the purpose of expressing
our opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on the
internal control.
The management of the Fund is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or
irregularities may occur and not be detected. Also, projection
of any evaluation of internal control to future periods is
subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control would not necessarily
disclose all matters in the internal control that might be
material weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness
is a condition in which the design or operation of one or more of
the internal control components does not reduce to a relatively
low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned
functions. However, we noted no matters involving the internal
control and its operation, including controls for safeguarding
securities that we consider to be material weaknesses as defined
above.
This report is intended solely for the information and use of
management, the Board of Trustees of the Fund, and the Securities
and Exchange Commission.
February 10, 1998
