<PAGE> PAGE 1
000 B000000 12/31/94
000 C000000 810355
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 TEMPLETON VARIABLE ANNUITY FUND
001 B000000 811-5024
001 C000000 3055277591
002 A000000 500 EAST BROWARD BLVD SUITE 2100
002 B000000 FT. LAUDERDALE
002 C000000 FL
002 D010000 33394
002 D020000 3091
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
"008 A000001 TEMPLETON INVESTMENT COUNSEL, INC"
008 B000001 A
008 C000001 801-15125
008 D010001 FT LAUDERDALE
008 D020001 FL
008 D030001 33394
008 D040001 3091
010 A000001 TEMPLETON FUNDS ANNUITY COMPANY
010 B000001 8-126891
010 C010001 ST PETERSBURG
010 C020001 FL
010 C030001 33701
010 C040001 3628
"011 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC."
011 B000001 8-00000
011 C010001 ST. PETERSBURG
011 C020001 FL
011 C030001 33701
<PAGE> PAGE 2
011 C040001 3628
012 A000001 DELETE
013 A000001 MC GLADREY & PULLEN
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10017
013 B040001 2416
015 A000001 THE CHASE MANHATTAN BANK NA
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10036
015 E010001 X
"015 A000002 CHASE MANHATTAN BANK, N.A."
015 B000002 S
015 C010002 BUENOS AIRES
015 D010002 ARGENTINA
015 D020002 25
015 E040002 X
015 A000003 CHASE MANHATTAN BANK AUSTRALIA LTD
015 B000003 S
015 C010003 SYDNEY
015 D010003 AUSTRALIA
015 D020003 2000
015 E040003 X
015 A000004 RESERVE BANK
015 B000004 S
015 C010004 SYDNEY
015 D010004 AUSTRALIA
015 E040004 X
015 A000005 CREDITANSTALT - BANKVEREIN
015 B000005 S
015 C010005 VIENNA
015 D010005 AUSTRIA
015 D020005 A-1011
015 E040005 X
015 A000006 GENERALE BANK
015 B000006 S
015 C010006 BRUXELLES
015 D010006 BELGIUM
015 D020006 1000
015 E040006 X
015 A000007 BANCO CHASE MANHATTAN SA
015 B000007 S
015 C010007 SAO PAULO
015 D010007 BRAZIL
015 D020007 04719-002
015 E040007 X
015 A000008 THE ROYAL BANK OF CANADA
015 B000008 S
015 C010008 TORONTO
<PAGE> PAGE 3
015 D010008 CANADA
015 D020008 M5J-2J5
015 E040008 X
015 A000009 CANADA TRUST COMPANY
015 B000009 S
015 C010009 TORONTO
015 D010009 CANADA
015 D020009 M5J 2T2
015 E040009 X
015 A000010 DEN DANSKE BANK
015 B000010 S
015 C010010 COPENHAGEN
015 D010010 DENMARK
015 E040010 X
015 A000011 KANSALLIS-OSAKE PANKKI
015 B000011 S
015 C010011 HELSINKI
015 D010011 FINLAND
015 D020011 00500
015 E040011 X
015 A000012 BANQUE PARIBAS
015 B000012 S
015 C010012 PARIS
015 D010012 FRANCE
015 D020012 75078
015 E040012 X
"015 A000013 CHASE BANK, AG"
015 B000013 S
015 C010013 FRANKFURT
015 D010013 GERMANY
015 D020013 60441
015 E040013 X
015 A000014 BARCLAYS BANK PLC
015 B000014 S
015 C010014 ATHENS
015 D010014 GREECE
015 D020014 10562
015 E040014 X
"015 A000015 CHASE MANHATTAN BANK, N.A."
015 B000015 S
015 C010015 HONG KONG
015 D010015 HONG KONG
015 E040015 X
015 A000016 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000016 S
015 C010016 JAKARTA
015 D010016 INDONESIA
015 D020016 10023
015 E040016 X
015 A000017 BANK OF IRELAND
015 B000017 S
<PAGE> PAGE 4
015 C010017 DUBLIN
015 D010017 IRELAND
015 D020017 1
015 E040017 X
"015 A000018 CHASE MANHATTAN BANK, NA"
015 B000018 S
015 C010018 MILAN
015 D010018 ITALY
015 D020018 20121
015 E040018 X
"015 A000019 CHASE MANHATTAN BANK, NA"
015 B000019 S
015 C010019 TOKYO
015 D010019 JAPAN
015 D020019 100
015 E040019 X
015 A000020 CEDELE
015 B000020 S
015 C010020 LUXEMBBOURG
015 D010020 LUXEMBOURG
015 D020020 50250
015 E040020 X
"015 A000021 CHASE MANHATTAN BANK, NA"
015 B000021 S
015 C010021 KUALA LUMPUR
015 D010021 MALAYSIA
015 D020021 50250
015 E040021 X
"015 A000022 THE CHASE MANHATTAN BANK, NA"
015 B000022 S
015 C010022 MEXICO CITY
015 D010022 MEXICO
015 E040022 X
015 A000023 ABN-AMRO N.V.
015 B000023 S
015 C010023 DE BREDA
015 D010023 NETHERLANDS
015 D020023 4800
015 E040023 X
"015 A000024 NATIONAL NOMINEES, LTD"
015 B000024 S
015 C010024 AUCKLAND
015 D010024 NEW ZEALAND
015 E040024 X
015 A000025 DEN NORSKE BANK
015 B000025 S
015 C010025 OSLO
015 D010025 NORWAY
015 D020025 1
015 E040025 X
015 A000026 HONGKONG AND SHANGHAI BANKING CORP LTD
<PAGE> PAGE 5
015 B000026 S
015 C010026 MANILA
015 D010026 PHILIPPINES
015 E040026 X
015 A000027 BANCO ESPIRITO SANTO E COMMERCIAL DE LISBOA
015 B000027 S
015 C010027 LISBON
015 D010027 PORTUGAL
015 D020027 1200
015 E040027 X
"015 A000028 CHASE MANHATTAN BANK, NA"
015 B000028 S
015 C010028 SINGAPORE
015 D010028 SINGAPORE
015 D020028 0104
015 E040028 X
015 A000029 THE HONGKONG & SHANGHAI BANKING CORP. LTD
015 B000029 S
015 C010029 SEOUL
015 D010029 SOUTH KOREA
015 E040029 X
"015 A000030 CHASE MANHATTAN BANK, NA"
015 B000030 S
015 C010030 MADRID
015 D010030 SPAIN
015 D020030 28042
015 E040030 X
015 A000031 HONGKONG & SHANGHAI BANKING CORP. LTD.
015 B000031 S
015 C010031 COLOMBO
015 D010031 SRI LANKA
015 D020031 1
015 E040031 X
015 A000032 SKANDINAVISKA ENSKILDA BANKEN
015 B000032 S
015 C010032 STOCKHOLM
015 D010032 SWEDEN
015 D020032 S-10640
015 E040032 X
015 A000033 UNION BANK OF SWITZERLAND
015 B000033 S
015 C010033 ZURICH
015 D010033 SWITZERLAND
015 D020033 8021
015 E040033 X
"015 A000034 CHASE MANHATTAN BANK, N.A."
015 B000034 S
015 C010034 BANGKOK
015 D010034 THAILAND
015 D020034 10500
015 E040034 X
<PAGE> PAGE 6
"015 A000035 CHASE MANHATTAN BANK, NA"
015 B000035 S
015 C010035 ISTANBUL
015 D010035 TURKEY
015 E040035 X
"015 A000036 CHASE MANHATTAN BANK, NA"
015 B000036 S
015 C010036 LONDON
015 D010036 UNITED KINGDOM
015 D020036 EC2P2HD
015 E040036 X
015 A000037 FIRST CHICAGO CLEARING CENTRE
015 B000037 S
015 C010037 LONDON
015 D010037 UNITED KINGDOM
015 E040037 X
015 A000038 STANDARD CHARTERED BANK
015 B000038 S
015 C010038 DHAKA
015 D010038 BANGLADESH
015 D020038 1000
015 E040038 X
015 A000039 BANK LEUMI LE-ISRAEL BM
015 B000039 S
015 C010039 TEL AVIV
015 D010039 ISRAEL
015 D020039 65136
015 E040039 X
"015 A000040 CCSKOSLOVENSKA OBCHODNI BANKA, A.S."
015 B000040 S
015 C010040 PRAHA
015 D010040 CZECH REPUBLIC
015 E040040 X
015 A000041 NATIONAL BANK OF EGYPT
015 B000041 S
015 C010041 CAIRO
015 D010041 EGYPT
015 E040041 X
015 A000042 HONGKONG AND SHANGHAI BANKING CORP. LTD
015 B000042 S
015 C010042 PORT LOUIS
015 D010042 MAURITIUS
015 E040042 X
015 A000043 THE FIRST NATIONAL BANK OF BOSTON
015 B000043 S
015 C010043 MONTEVIDEO
015 D010043 URUGUAY
015 E040043 X
015 A000044 THE STANDARD BANK OF S.AFRICA
015 B000044 S
015 C010044 JOHANNESBURG
<PAGE> PAGE 7
015 D010044 SOUTH AFRICA
015 E040044 X
015 A000045 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000045 S
015 C010045 SHANGHAI
015 D010045 CHINA
015 E040045 X
015 A000046 CITIBANK NA
015 B000046 S
015 C010046 CARACAS
015 D010046 VENEZUELA
015 D020046 1010
015 E040046 X
015 A000047 BARCLAYS BANK OF ZIMBABWE
015 B000047 S
015 C010047 HARARE
015 D010047 ZIMBABWE
015 E040047 X
015 A000048 BANQUE COMMERCIALE DU MAROC
015 B000048 S
015 C010048 CASABLANCA
015 D010048 MOROCCO
015 D020048 01
015 E040048 X
015 A000049 THE HONGKONG AND SHANGHAI BANKING CORP LTD
015 B000049 S
015 C010049 SHENZHEN
015 D010049 CHINA
015 E040049 X
018 000000 Y
019 A000000 Y
019 B000000 40
019 C000000 TEMPLETONX
020 A000001 MERRILL LYNCH
020 B000001 13-5674085
020 C000001 7
020 A000002 FIRST BOSTON
020 B000002 13-5659485
020 C000002 1
020 A000003 GOLDMAN SACHS
020 B000003 13-5108880
020 C000003 1
020 A000004 CREDIT LYONNAIS
020 B000004 13-2602298
020 C000004 1
020 A000005 SOCIETE GENERALE
020 B000005 13-1976032
020 C000005 1
020 A000006 ROBINSON HUMPHREY
020 B000006 58-1472560
020 C000006 1
<PAGE> PAGE 8
020 A000007 SMITH BARNEY
020 B000007 13-1912900
020 C000007 1
020 A000008 MONTGOMERY SECS.
020 B000008 94-1701676
020 C000008 1
020 A000009 W.I. CARR
020 B000009 13-2927466
020 C000009 1
020 A000010 BRIDGE TRADING
020 B000010 43-1450530
020 C000010 1
021 000000 19
"022 A000001 THE CHASE MANHATTAN BANK, N.A."
022 B000001 13-2633612
022 C000001 9730
022 D000001 3267
022 A000002 MERRILL LYNCH
022 B000002 13-5674085
022 C000002 252
022 D000002 429
022 A000003 SMITH BARNEY
022 B000003 13-1912900
022 C000003 166
022 D000003 0
022 A000004 FIRST BOSTON
022 B000004 13-5659485
022 C000004 131
022 D000004 0
022 A000005 ROBINSON HUMPHREY
022 B000005 58-1472560
022 C000005 107
022 D000005 0
022 A000006 BARING SECURITIES
022 B000006 04-2455153
022 C000006 0
022 D000006 96
022 A000007 SMITH NEW COURT
022 B000007 13-3169769
022 C000007 0
022 D000007 50
022 A000008 SAL OPPENHEIM & CO.
022 B000008 13-3469151
022 C000008 0
022 D000008 44
022 A000009 MONTGOMERY SECURITIES
022 B000009 94-1701676
022 C000009 0
022 D000009 7
022 C000010 0
022 D000010 0
<PAGE> PAGE 9
023 C000000 10386
023 D000000 3894
024 000000 N
025 A000001 DELETE
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
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025 D000012 0
025 D000013 0
025 D000014 0
025 D000015 0
025 D000016 0
025 D000017 0
025 D000018 0
025 D000019 0
025 D000020 0
025 D000021 0
025 D000022 0
025 D000023 0
025 D000024 0
025 D000025 0
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025 D000029 0
025 D000030 0
025 D000031 0
025 D000032 0
025 D000033 0
025 D000034 0
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025 D000036 0
025 D000037 0
025 D000038 0
025 D000039 0
025 D000040 0
026 A000000 Y
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
<PAGE> PAGE 10
026 G020000 N
026 H000000 Y
027 000000 Y
028 A010000 160
028 A020000 0
028 A030000 0
028 A040000 126
028 B010000 35
028 B020000 0
028 B030000 0
028 B040000 124
028 C010000 0
028 C020000 0
028 C030000 0
028 C040000 118
028 D010000 64
028 D020000 0
028 D030000 0
028 D040000 215
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 113
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 115
028 G010000 259
028 G020000 0
028 G030000 0
028 G040000 811
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 N
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
<PAGE> PAGE 11
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 200000
048 A020000 0.500
048 B010000 1100000
048 B020000 0.450
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 1300000
048 K020000 0.400
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
<PAGE> PAGE 12
054 M000000 Y
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 Y
058 B000000 Y
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 10000
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
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062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 Y
066 E000000 N
066 F000000 N
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067 000000 N
068 A000000 N
068 B000000 Y
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
<PAGE> PAGE 13
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 2401
071 B000000 2671
071 C000000 12093
071 D000000 20
072 A000000 12
072 B000000 51
072 C000000 228
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072 G000000 20
072 H000000 0
072 I000000 0
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072 K000000 0
072 L000000 20
072 M000000 34
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 24
<PAGE> PAGE 14
072 S000000 12
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 3
072 X000000 198
072 Y000000 65
072 Z000000 146
072AA000000 1135
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072CC010000 0
072CC020000 1600
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073 C000000 0.0000
074 A000000 3
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074 F000000 11115
074 G000000 0
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074 R020000 0
074 R030000 0
074 R040000 77
074 S000000 0
074 T000000 12568
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074 V020000 0.00
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074 X000000 4
074 Y000000 0
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<PAGE> PAGE 15
076 000000 0.00
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 ICI MUTUAL INSURANCE CO.
080 B000000 NONE
080 C000000 130000
081 A000000 Y
081 B000000 185
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
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086 F010000 0
086 F020000 0
SIGNATURE JAMES R. BAIO
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
TEMPLETON VARIABLE ANNUITY FUND, DECEMBER 31, 1994 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000810355
<NAME> VARIABLE ANNUITY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 9545506
<INVESTMENTS-AT-VALUE> 12547918
<RECEIVABLES> 180662
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 3274
<TOTAL-ASSETS> 12731854
<PAYABLE-FOR-SECURITIES> 86678
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 76533
<TOTAL-LIABILITIES> 163211
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8504465
<SHARES-COMMON-STOCK> 699878
<SHARES-COMMON-PRIOR> 651133
<ACCUMULATED-NII-CURRENT> 145533
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 916233
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3002412
<NET-ASSETS> 12568643
<DIVIDEND-INCOME> 228015
<INTEREST-INCOME> 50544
<OTHER-INCOME> 0
<EXPENSES-NET> 133026
<NET-INVESTMENT-INCOME> 145533
<REALIZED-GAINS-CURRENT> 918388
<APPREC-INCREASE-CURRENT> (1595023)
<NET-CHANGE-FROM-OPS> (531102)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2879)
<DISTRIBUTIONS-OF-GAINS> (514109)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 103790
<NUMBER-OF-SHARES-REDEEMED> (82327)
<SHARES-REINVESTED> 27282
<NET-CHANGE-IN-ASSETS> (129057)
<ACCUMULATED-NII-PRIOR> 2879
<ACCUMULATED-GAINS-PRIOR> 511954
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 66500
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 197990
<AVERAGE-NET-ASSETS> 13300677
<PER-SHARE-NAV-BEGIN> 19.50
<PER-SHARE-NII> .21
<PER-SHARE-GAIN-APPREC> (.96)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.79)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.96
<EXPENSE-RATIO> 1.00<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>THE EXPENSE RATIO PER THE TEMPLETON VARIABLE ANNUITY FUND, ANNUAL REPORT
DECEMBER 31, 1994, WITHOUT REIMBURSEMENT EQUALED 1.49%.
</FN>
</TABLE>
REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
The Board of Trustees and Shareholders
Templeton Variable Annuity Fund
In planning and performing our audit of the financial statements of Templeton
Variable Annuity Fund for the year ended December 31, 1994, we considered its
internal control structure, including procedures 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 structure.
The management of Templeton Variable Annuity Fund, is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evalua-
tion of the structure 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 structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements 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 structure, including procedures for safeguard-
ing securities, that we consider to be material weaknesses as defined above
as of December 31, 1994.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
/s/MCGLADREY & PULLEN, LLP
McGladrey & Pullen, LLP
New York, New York
February 3, 1995
