As filed with the Securities and Exchange File No. 33-12723
Commission on March 10, 1999 File No. 811-5062
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
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REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 14
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF
1940
Amendment No. 17
AETNA GET FUND
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151 Farmington Avenue RE4A, Hartford, Connecticut 06156
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(860) 275-2032
Amy R. Doberman, Counsel
10 State House Square SH11, Hartford, Connecticut 06103-3602
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(Name and Address of Agent for Service)
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It is proposed that this filing will become effective:
X On June 1, 1999 pursuant to paragraph (a)(2) of Rule 485
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Aetna GET Fund - Series E
Prospectus
____________, 1999
Aetna GET Fund (Fund) is an open-end investment company authorized to issue
multiple series of shares. This prospectus offers shares of Series E (GET E).
GET E shares will be offered from June 15, 1999 through September 14, 1999, as a
funding option under certain variable annuity contracts issued by Aetna Life
Insurance and Annuity Company (Aetna).
The Securities and Exchange Commission has not approved or disapproved these
securities or determined whether this prospectus is truthful or complete. Anyone
who represents to the contrary has committed a criminal offense.
SUBJECT TO COMPLETION OR AMENDMENT
INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A
REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY
OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES
EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF ANY OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES
IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR
TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.
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TABLE OF CONTENTS
Page
Investment Objective, Principal Investment Strategies and Risks................1
Other Considerations...........................................................4
Management of GET E............................................................4
Investments in, Exchanges and Redemptions from GET E...........................5
Tax Information................................................................6
Performance of a Similarly Managed Fund........................................7
Additional Information.........................................................8
<PAGE>
Investment Objective, Principal Investment Strategies and Risks
Shares of GET E are offered to Aetna separate accounts that fund variable
annuity contracts. GET E has both an Offering Period and a Guarantee Period. The
Offering Period is the only time investors can invest in GET E. The Offering
Period will run from June 15, 1999 through September 14, 1999. During the
Offering Period all deposits made by investors will be invested exclusively in
money market securities. Once the Offering Period terminates, the Guarantee
Period begins. The Guarantee Period will run from September 15, 1999 through
September 14, 2004 (Maturity Date). During the Guarantee Period all assets will
be invested in accordance with the investment objective and strategies described
below. Investors receive a guarantee from Aetna that on the Maturity Date, if
they do not redeem their shares prior to the Maturity Date, they will receive no
less than the value of their separate account investment directed to GET E, as
of the last day of the Offering Period, adjusted for certain charges
(Guarantee). Please refer to the contract prospectus, prospectus summary or
disclosure statement for more information about the Guarantee.
o Set forth below is a description of the investment objective, the principal
investment strategies, and the principal risks associated with investing in
GET E.
o Aeltus Investment Management, Inc. (Aeltus) serves as investment adviser of
GET E.
Shares of GET E will rise and fall in value and you could lose money by
investing in GET E if you redeem your shares prior to the Maturity Date. There
is no guaranty that GET E will achieve its investment objective. An investment
in GET E is not a bank deposit and is not insured or guaranteed by the FDIC or
any other government agency.
Investment Objective. GET E seeks to achieve maximum total return without
compromising a minimum targeted return (Targeted Return) by participating in
favorable equity market performance during the Guarantee Period. There is no
assurance that the Targeted Return will be achieved.
Principal Investment Strategies. Under normal market conditions, GET E allocates
its assets among the following asset classes:
o Prior to September 15, 1999, all of GET E assets will be invested in money
market instruments.
o On and after September 15, 1999, GET E assets will be allocated between the:
o Equity Component, consisting primarily of common stocks; and the
o Fixed Component, consisting primarily of short- to intermediate-term U.S.
Government securities.
The Targeted Return is ______% per year over the Guarantee Period.
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Equity Component Aeltus invests at least 80% of the Equity Component's net
assets in stocks included in the Standard and Poor's 500 Index (S&P 500), other
than Aetna Inc. common stock. The S&P 500 is a stock market index comprised of
common stocks of 500 of the largest companies in the U.S. selected by Standard
and Poor's (S&P).
Aeltus manages the Equity Component by overweighting those stocks in the S&P 500
that it believes will outperform the S&P 500, and underweighting (or avoiding
altogether) those stocks that Aeltus believes will underperform the S&P 500.
Stocks that Aeltus believes are likely to match the performance of the S&P 500
are invested in proportion to their representation in the index. To determine
which stocks to weight more or less heavily, Aeltus uses internally developed
quantitative computer models to evaluate various criteria, such as the financial
strength of each company and its potential for strong, sustained earnings
growth. At any one time, Aeltus generally includes in the Equity Component
approximately 400 stocks included in the S&P 500. Although the Equity Component
will not hold all of the stocks in the S&P 500, Aeltus expects that there will
be a close correlation between the performance of the Equity Component and that
of the S&P 500 in both rising and falling markets.
Fixed Component Aeltus looks to select investments for the Fixed Component with
financial characteristics that will, at any point in time, closely resemble
those of a portfolio of zero coupon bonds which mature on the Maturity Date. The
Fixed Component will consist primarily of securities issued or guaranteed by the
U.S. Government, its agencies or instrumentalities, particularly STRIPS
(Separate Trading of Registered Interest and Principal of Securities). STRIPS
are created by the Federal Reserve Bank by separating the interest and principal
components of an outstanding U.S. Treasury bond and selling them as individual
securities. The Fixed Component may also consist of corporate obligations which
are rated at the time of purchase within one of the four highest rating
categories assigned by Moody's Investors Service, Inc. (Aaa, Aa, A or Baa) or
S&P (AAA, AA, A or BBB), or, if not so rated, are considered by Aeltus to be of
comparable investment quality. The Fixed Component may also include money market
instruments.
Asset Allocation Aeltus uses a proprietary computer model to determine on a
daily basis the percentage of assets allocated to the Equity Component and to
the Fixed Component in an attempt to meet or exceed the Targeted Return. The
model evaluates a number of factors, including the then current market value of
GET E, interest rates, market volatility, the Targeted Return and the Maturity
Date. The model determines the initial allocation between the Equity Component
and the Fixed Component on September 15, 1999 and evaluates the allocations on a
daily basis thereafter. Generally, as the value of the Equity Component rises,
more assets are allocated to the Equity Component. As the value of the Equity
Component declines, more assets are allocated to the Fixed Component.
2
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Principal Risks. The principal risks of investing in GET E are those generally
attributable to stock and bond investing. The success of GET E's strategy
depends on Aeltus' skill in allocating assets between the Equity Component and
the Fixed Component and in selecting investments within each component. Because
GET E invests in both stocks and bonds, GET E may underperform stock funds when
stocks are in favor and underperform bond funds when bonds are in favor.
The risks associated with investing in stocks include sudden and unpredictable
drops in the value of the market as a whole and periods of lackluster or
negative performance. The performance of the Equity Component also depends
significantly on Aeltus' skill in determining which securities to overweight,
underweight or avoid altogether.
The principal risk associated with investing in bonds is that interest rates may
rise, which generally causes bond prices to fall. The market price of STRIPS
generally are more volatile than the market prices of other fixed income
securities with similar maturities that pay interest periodically. STRIPS are
likely to respond to changes in interest rates to a greater degree than do
securities having similar maturities and credit quality. For corporate bonds,
there is a risk that the issuer will default on the payment of principal or
interest.
If at the inception of, or any time during, the Guarantee Period interest rates
are low, GET E assets may be largely invested in the Fixed Component in order to
increase the likelihood of achieving the Targeted Return at the Maturity Date.
The effect of low interest rates on GET E would likely be more pronounced at the
beginning of the Guarantee Period, as the initial allocation of assets would
include more fixed income securities. In addition, if during the Guarantee
Period the equity markets experienced a major decline, GET E assets may become
largely invested in the Fixed Component in order to increase the likelihood of
achieving the Targeted Return at the Maturity Date. In fact, if the value of the
Equity Component were to decline by 30% in a single day, a complete reallocation
to the Fixed Component would likely occur to ensure that the Targeted Return
would be achieved at the end of the Guarantee Period. Use of the Fixed Component
reduces GET E's ability to participate as fully in upward equity market
movements, and therefore represents some loss of opportunity, or opportunity
cost, compared to a portfolio that is fully invested in equities.
3
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Other Considerations
In addition to the principal investments, strategies and risks described above,
GET E may also invest in other securities, engage in other practices, and be
subject to additional risks, as discussed below and in the Statement of
Additional Information (SAI).
Futures Contracts. GET E may invest in futures contracts, which provide for the
future sale by one party and purchase by another party of a specified amount of
a financial instrument or a specific stock market index for a specified price on
a designated date. GET E uses futures primarily to increase exposure to a
particular asset class.
The main risk with futures contracts is that they can amplify a gain or loss,
potentially earning or losing substantially more money than the actual
investment made in the futures contract.
Year 2000. The date-related computer issue known as the "Year 2000 problem"
could have an adverse impact on the quality of services provided to GET E and
its shareholders. However, GET E understands that its key service providers,
including but not limited to the investment adviser and its affiliates, transfer
agent, custodian, and the broker-dealers through which its trades are executed,
are taking steps to address the issue. The costs of these efforts will not
affect GET E. The Year 2000 problem also may adversely affect the issuers in
which GET E invests. For example, issuers may incur substantial costs to address
the problem. They may also suffer losses caused by corporate and governmental
data processing errors. GET E and its investment adviser will continue to
monitor developments relating to this issue.
Closing the Fund. If GET E assets do not reach $100 million by the end of the
Offering Period, or in the event of severe market volatility or adverse market
conditions during the Offering Period, the Fund's Board of Trustees (Board)
reserves the right not to operate GET E in accordance with its Investment
Objective and its Principal Investment Strategies. In that event, Aeltus will
continue to invest GET E assets in money market instruments and Aetna will
notify investors within 15 days after the end of the Offering Period that GET E
is being discontinued. Investors will have 45 days following the end of the
Offering Period to transfer their money from GET E. If at the end of the 45-day
period, an investor does not make an election, his or her investment in GET E
will be transferred to Aetna Money Market VP, a money market fund.
Management of GET E
Aeltus Investment Management, Inc., 10 State House Square, Hartford, Connecticut
06103-3602, serves as investment adviser of GET E. Aeltus is responsible for
managing the assets of GET E in accordance with its investment objective and
policies, subject to oversight by the Board. Aeltus has acted as adviser or
subadviser to mutual funds since 1994 and has managed institutional accounts
since 1972.
Advisory Fees. For its services, Aeltus is entitled to receive an advisory fee,
which is set forth below. The advisory fee is expressed as an annual rate based
on the average daily net assets of GET E.
Offering Period %
Guarantee Period %
Portfolio Management. The following people are primarily responsible for the
day-to-day management of GET E.
Equity Component. Geoffrey A. Brod, Portfolio Manager, Aeltus, manages the
Equity Component. He has over 30 years of experience in quantitative
applications and has over 11 years of experience in equity investments. Mr. Brod
has been with the Aetna organization since 1966.
Fixed Component. Hugh T.M. Whelan, Portfolio Manager, Aeltus, manages the Fixed
Component. Mr. Whelan joined the Aetna organization in 1989 and manages
fixed-income portfolios employing different strategies.
4
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Investments in, Exchanges and Redemptions from GET E
Investors purchasing shares in connection with an insurance company contract or
policy should refer to the documents pertaining to the contract or policy for
information on how to direct investments in or redemptions from (including
making exchanges into or out of) the Fund, and any fees that may apply. The Fund
has authorized the insurance company to receive purchase and redemption orders
on its behalf.
Orders for the purchase or redemption of Fund shares that are received before
the close of regular trading on the New York Stock Exchange (normally 4 p.m.
eastern time) are effected at the net asset value (NAV) per share determined
that day, as described below. The insurance company has been appointed a
designee of the Fund for receipt of purchase and redemption orders. Therefore,
receipt of an order by the insurance company constitutes receipt by the Fund,
provided that the Fund receives notice of the orders by 9:30 a.m.
eastern time the next day on which the New York Stock Exchange is open for
trading.
Net Asset Value. The NAV of the Fund is determined as of the close of regular
trading on the New York Stock Exchange.
In calculating the NAV, securities are valued primarily by independent pricing
services using market quotations. Short-term debt securities maturing in less
than 60 days are valued using amortized cost. Securities for which market
quotations are not readily available are valued at their fair value, subject to
procedures adopted by the Board.
Business Hours. The Fund is open on the same days as the New York Stock Exchange
(generally, Monday through Friday). Representatives are available from 8 a.m. to
8 p.m. eastern time on those days.
The Fund may refuse to accept any purchase request, especially if as a result of
such request, in Aeltus' judgment, it would be too difficult to invest
effectively in accordance with the Fund's investment objective.
The Fund reserves the right to suspend the offering of shares, or to reject any
specific purchase order. The Fund may suspend redemptions or postpone payments
when the New York Stock Exchange is closed or when trading is restricted for any
reason or under emergency circumstances as determined by the Securities and
Exchange Commission.
5
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Tax Information
GET E intends to qualify as a regulated investment company by satisfying the
requirements under Subchapter M of the Internal Revenue Code of 1986, as amended
(Code), including requirements with respect to diversification of assets,
distribution of income and sources of income. As a regulated investment company,
GET E generally will not be subject to tax on its ordinary income and net
realized capital gains.
GET E also intends to comply with the diversification requirements of Section
817(h) of the Code for those investors who acquire shares through variable
annuity contracts so that those contract owners should not be subject to federal
tax on distributions from GET E to the insurance company separate accounts.
Contract owners should review their contract prospectus, prospectus summary or
disclosure statement for information regarding the personal tax consequences of
purchasing a contract.
Dividends and Distributions. Dividends and capital gains distributions, if any,
are paid on an annual basis around the end of the year, December 31.
Both income dividends and capital gains distributions are paid by GET E on a per
share basis. As a result, at the time of payment, the share price of GET E will
be reduced by the amount of the payment.
6
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Performance of a Similarly Managed Fund
GET E is recently organized and does not yet have a performance record. However,
GET E has an investment objective and investment strategies substantially
similar to a separate series of the Fund, GET C. Therefore, the performance of
GET C is provided below.
The results shown reflect the reinvestment of dividends and distributions, and
were calculated in the same manner that will be used by GET E to calculate its
own performance. GET C performance data:
o Was calculated on a total return basis and includes all dividends and
interest, accrued income and realized and unrealized gains and losses.
o Reflects the deduction of the historical fees and expenses paid by GET C,
and not those charged to GET E.
The performance information does not reflect the deduction of any fees or
charges that are imposed by Aetna in connection with its sale of variable
contracts. Had those fees and charges been deducted, performance would have been
lower. Please refer to your contract prospectus for information pertaining to
these fees and charges.
Investors should be mindful that the performance of GET E will be driven, to a
great extent, by the allocation of assets between the Equity Component and the
Fixed Component, and the performance of the equity and bond markets during the
Guarantee Period. Investors should not expect that the initial or subsequent
allocations of assets of GET E, or pertinent market conditions during GET E's
Guarantee Period, will be similar to those in effect during GET C's Guarantee
Period.
The following table shows average annual total returns for the period ended
March 31, 1999 for GET C and its respective benchmark index. Investors should
not consider the performance data of GET C to be an indication of the future
performance of GET E.
<TABLE>
<CAPTION>
GET C 1 YEAR SINCE INCEPTION (12/17/96)
<S> <C> <C>
GET C % %
S&P 500 Index % N/A
</TABLE>
7
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Additional Information
The SAI, which is incorporated by reference into this Prospectus, contains
additional information about GET E and the Fund generally.
You may request free of charge the current SAI or other information about GET E,
by calling 1-800-525-4225 or writing to:
Aetna GET Fund
151 Farmington Avenue
Hartford, Connecticut 06156-8962
The SEC also makes available to the public reports and information about the
Fund. Certain reports and information, including the SAI, are available on the
SEC's website (http://www.sec.gov) or at the SEC's public reference room in
Washington, D.C. You may call 1-800-SEC-0330 to get information about the
operations of the public reference room or you may write to Public Reference
Section, Washington, D.C. 20549-6009 to get information from the Public
Reference Section. The Public Reference Section will charge a duplicating fee
for copying and sending any information you request.
Investment Company Act File No. 811-5062.
8
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AETNA GET FUND
SERIES E
Statement of Additional Information dated ____________, 1999
This Statement of Additional Information (Statement) is not a Prospectus and
should be read in conjunction with the current Prospectus for Aetna GET Fund
(Fund), Series E (GET E). Capitalized terms not defined herein are used as
defined in the Prospectus. Aetna GET Fund is authorized to issue multiple series
of shares, each representing a diversified portfolio of investments with
different investment objectives, policies and restrictions. Aetna GET Fund
currently has authorized five series. This Statement applies to GET E.
A free copy of GET E's Prospectus is available upon request by writing to the
Fund at: 151 Farmington Avenue, Hartford, Connecticut 06156, or by calling:
(800) 525-4225.
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TABLE OF CONTENTS
GENERAL INFORMATION............................................................1
INVESTMENT OBJECTIVE AND RESTRICTIONS..........................................2
INVESTMENT TECHNIQUES AND RISK FACTORS.........................................3
OTHER CONSIDERATIONS...........................................................8
THE ASSET ALLOCATION PROCESS...................................................9
TRUSTEES AND OFFICERS OF THE FUND.............................................10
CONTROL PERSONS AND PRINCIPAL SHAREHOLDERS....................................13
INVESTMENT ADVISORY AGREEMENT.................................................13
ADMINISTRATIVE SERVICES AGREEMENT.............................................13
CUSTODIAN.....................................................................14
TRANSFER AGENT................................................................14
INDEPENDENT AUDITORS..........................................................14
PRINCIPAL UNDERWRITER.........................................................14
BROKERAGE ALLOCATION AND TRADING POLICIES.....................................14
PURCHASE AND REDEMPTION OF SHARES.............................................16
NET ASSET VALUE...............................................................16
TAX STATUS....................................................................16
PERFORMANCE INFORMATION.......................................................17
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GENERAL INFORMATION
Organization Aetna GET Fund was organized as a Massachusetts business trust on
March 9, 1987. GET E currently operates under a Declaration of Trust
(Declaration) dated March 9, 1987.
Capital Stock Shares of GET E have no preemptive or conversion rights. Each
share has the same rights to share in dividends declared by GET E. Upon
liquidation of GET E, shareholders are entitled to share pro rata in the net
assets of the Fund available for distribution to shareholders. Shares of GET E
are fully paid and nonassessable.
Shareholder Liability Aetna GET Fund is organized as a "Massachusetts business
trust." Under Massachusetts law, shareholders of such a business trust may,
under certain circumstances, be held personally liable as partners for the
obligations of GET E, which is not true in the case of a corporation. The
Declaration of GET E provides that shareholders shall not be subject to any
personal liability for the acts or obligations of the Fund and that every
written agreement, obligation, instrument or undertaking made by GET E shall
contain a provision to the effect that shareholders are not personally liable
thereunder. With respect to tort claims, contract claims where the provision
referred to is omitted from the undertaking, and claims for taxes and certain
statutory liabilities in other jurisdictions, a shareholder may be held
personally liable to the extent that claims are not satisfied by GET E. However,
upon payment of any such liability the shareholder will be entitled to
reimbursement from the general assets of the Fund. The Board of Trustees (Board)
intends to conduct the operations of GET E, with the advice of counsel, in such
a way as to avoid, as much as possible, ultimate liability of the shareholders
for liabilities of the Fund.
Voting Rights Shareholders of GET E are entitled to one vote for each full share
held (and fractional votes for fractional shares held) and will vote in the
election of the Board (to the extent hereinafter provided) and on other matters
submitted to the vote of shareholders. Investors who select GET E for investment
through their variable annuity contract (VA Contract) are not the shareholders
of the Fund. The insurance companies who issue the separate accounts are the
true shareholders, but generally pass through voting to investors as described
in the prospectus for the applicable VA Contract. Once the initial members of
the Board are elected, no meeting of the shareholders for the purpose of
electing Trustees will be held unless and until such time as less than a
majority of the Board holding office have been elected by the shareholders, or
shareholders holding 10% or more of the outstanding shares request such a vote.
The Board members then in office will call a shareholder meeting for election of
Trustees. Vacancies occurring between any such meeting shall be filled as
allowed by law, provided that immediately after filling any such vacancy, at
least two-thirds of the Board holding office have been elected by the
shareholders. Except as set forth above, the Trustees shall continue to hold
office and may appoint successor Trustees. A Trustee may be removed from office
(1) at any time by two-thirds vote of the Board; (2) by a majority vote of the
Board where any Trustee becomes mentally or physically incapacitated; or (3) at
a special meeting of shareholders by a two-thirds vote of the outstanding
shares. Trustees may be removed at any meeting of shareholders by the vote of a
majority of all shares entitled to vote. Any Trustee may also voluntarily resign
from office. Voting rights are not cumulative, so that the holders of more than
50% of the shares voting in the election of Trustees can, if they choose to do
so, elect all the Trustees of GET E, in which event the holders of the remaining
shares will be unable to elect any person as a Trustee.
1940 Act Classification GET E is a diversified series of Aetna GET Fund, an
open-end management investment company, as that term is defined under the
Investment Company Act of 1940 (1940 Act). The 1940 Act generally requires that
with respect to 75% of its total assets, a diversified company may not invest
more than 5% of its total assets in the securities of any one issuer.
1
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INVESTMENT OBJECTIVE AND RESTRICTIONS
The investment objective for GET E is to achieve maximum total return by
participating in favorable equity market performance without compromising a
minimum targeted rate of return during a specified five year period, the
"Guarantee Period," from September 15, 1999 through September 14, 2004, the
Maturity Date. In seeking to achieve its investment objective, GET E has adopted
the following restrictions which are matters of fundamental policy and cannot be
changed without approval by the holders of the lesser of: (i) 67% of the shares
of GET E present or represented at a shareholders' meeting at which the holders
of more than 50% of such shares are present or represented; or (ii) more than
50% of the outstanding shares of GET E.
As a matter of fundamental policy, GET E will not:
(1) Borrow money, except that (a) the Series may enter into certain futures
contracts and options related thereto; (b) the Series may enter into commitments
to purchase securities in accordance with the Series' investment program,
including delayed delivery and when-issued securities and reverse repurchase
agreements; (c) the Series may borrow money for temporary or emergency purposes
in amounts not exceeding 15% of the value of its total assets at the time when
the loan is made; and (d) for purposes of leveraging, the Series may borrow
money from banks (including its custodian bank) only if, immediately after such
borrowing, the value of the Series' assets, including the amount borrowed, less
its liabilities, is equal to at least 300% of the amount borrowed, plus all
outstanding borrowings. If at any time the value of the Series' assets fails to
meet the 300% coverage requirement relative only to leveraging, the Series
shall, within three days (not including Sundays and holidays), reduce its
borrowings to the extent necessary to meet the 300% test.
(2) Act as an underwriter of securities except to the extent that, in
connection with the disposition of securities by GET E for its portfolio, GET E
or the Fund may be deemed to be an underwriter under the provisions of the 1933
Act.
(3) Purchase real estate, interests in real estate or real estate limited
partnership interests except that, to the extent appropriate under its
investment program, GET E may invest in securities secured by real estate or
interests therein or issued by companies, including real estate investment
trusts, which deal in real estate or interests therein.
(4) Make loans, except that, to the extent appropriate under its investment
program, GET E may purchase bonds, debentures or other debt securities,
including short-term obligations and enter into repurchase transactions.
(5) Invest in commodity contracts, except that GET E may, to the extent
appropriate under its investment program, purchase securities of companies
engaged in such activities; may enter into futures contracts and related
options, may engage in transactions on a when-issued or forward commitment
basis.
(6) Alter, amend or modify either the Investment Objective or the Principal
Investment Strategies of GET E, as described in the Prospectus.
Whenever any of the foregoing provisions states a maximum percentage of the
assets of GET E which may be invested in any securities or other property, any
excess of the actual percentage limitation shall be considered a violation of
such restriction only if such excess exists immediately after the acquisition of
such security or property and resulted in whole or in part from such
acquisition.
GET E also has adopted certain other investment policies and restrictions
reflecting the current investment practices of GET E, which may be changed by
the Board and without shareholder vote. Under such policies and restrictions,
GET E will not:
2
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(1) Invest more than 5% of its total assets in the securities of any issuer
excluding securities issued or guaranteed by the U.S. Government or its agencies
or instrumentalities, or purchase more than 10% of the outstanding voting
securities of any issuer.
(2) Mortgage, pledge or hypothecate its assets except in connection with
loans of securities as described in (4) above, borrowings as described in (1)
above, and permitted transactions involving options, futures contracts and
options on such contracts.
(3) Invest in companies for the purpose of exercising control or
management.
(4) Make short sales of securities, other than short sales "against the
box," or purchase securities on margin except for short-term credits necessary
for clearance of portfolio transactions, provided that this restriction will not
be applied to limit the use of options, futures contracts and related options in
the manner otherwise permitted by the investment restrictions, policies and
investment programs of GET E.
(5) Concentrate its investments in any one industry except that GET E may
invest up to 25% of its total assets in securities issued by companies
principally engaged in any one industry. For purposes of this restriction,
finance companies will be classified as separate industries according to the end
users of their services, such as automobile finance, computer finance and
consumer finance. This limitation will not apply to securities issued or
guaranteed as to principal and/or interest by the U.S. Government, its agencies
or instrumentalities.
INVESTMENT TECHNIQUES AND RISK FACTORS
Futures and Other Derivative Instruments
GET E may use certain derivative instruments, described below and in the
Prospectus, as a means of achieving its investment objective. GET E may invest
up to 30% of its assets in derivatives to gain additional exposure to certain
markets for investment purposes while maintaining liquidity to meet shareholder
redemptions and minimizing trading costs. GET E may also use derivative
instruments for hedging purposes.
The following provides additional information about those derivative instruments
GET E may use.
Futures Contracts GET E may enter into futures contracts subject to the
restrictions described below under "Additional Restrictions on the Use of
Futures Contracts." GET E may enter into futures contracts that are traded on
national futures exchanges and are standardized as to maturity date and
underlying financial instrument. The futures exchanges and trading in the U.S.
are regulated under the Commodity Exchange Act by the Commodities Futures
Trading Commission (CFTC).
A futures contract provides for the future sale by one party and purchase by
another party of a specified amount of a financial instrument or a specific
stock market index for a specified price on a designated date. Brokerage fees
are incurred when a futures contract is bought or sold and at expiration, and
margin deposits must be maintained.
Although interest rate futures contracts typically require actual future
delivery of and payment for the underlying instruments, those contracts are
usually closed out before the delivery date. Stock index futures contracts do
not contemplate actual future delivery and will be settled in cash at expiration
or closed out prior to expiration. Closing out an open futures contract sale or
purchase is effected by entering into an offsetting futures contract purchase or
sale, respectively, for the same aggregate amount of the identical type of
underlying instrument and the same delivery date.
3
<PAGE>
There can be no assurance, however, that GET E will be able to enter into an
offsetting transaction with respect to a particular contract at a particular
time. If GET E is not able to enter into an offsetting transaction, it will
continue to be required to maintain the margin deposits on the contract.
The prices of futures contracts are volatile and are influenced by, among other
things, actual and anticipated changes in interest rates and equity prices,
which in turn are affected by fiscal and monetary policies and national and
international political and economic events. Small price movements in futures
contracts may result in immediate and potentially unlimited loss or gain to GET
E relative to the size of the margin commitment. A purchase or sale of a futures
contract may result in losses in excess of the amount initially invested in the
futures contract.
When using futures contracts as a hedging technique, at best, the correlation
between changes in prices of futures contracts and of the instruments or
securities being hedged can be only approximate. The degree of imperfection of
correlation depends upon circumstances such as: variations in speculative market
demand for futures and for securities, including technical influences in futures
trading, and differences between the financial instruments being hedged and the
instruments underlying the standard futures contracts available for trading.
Even a well-conceived hedge may be unsuccessful to some degree because of
unexpected market behavior or stock market or interest rate trends as well as
the expenses associated with creating the hedge.
Most U.S. futures exchanges limit the amount of fluctuation permitted in
interest rate futures contract prices during a single trading day, and temporary
regulations limiting price fluctuations for stock index futures contracts are
also in effect. The daily limit establishes the maximum amount that the price of
a futures contract may vary either up or down from the previous day's settlement
price at the end of a trading session. Once the daily limit has been reached in
a particular type of contract, no trades may be made on that day at a price
beyond that limit. The daily limit governs only price movement during a
particular trading day and therefore does not limit potential losses, because
the limit may prevent the liquidation of unfavorable positions. Futures contract
prices have occasionally moved to the daily limit for several consecutive
trading days with little or no trading, thereby preventing prompt liquidation of
futures positions and subjecting some persons engaging in futures transactions
to substantial losses.
"Margin" is the amount of funds that must be deposited by GET E with a
commodities broker in a custodian account in order to initiate futures trading
and to maintain open positions in GET E's futures contracts. A margin deposit is
intended to assure GET E's performance of the futures contract. The margin
required for a particular futures contract is set by the exchange on which the
contract is traded and may be significantly modified from time to time by the
exchange during the term of the contract.
If the price of an open futures contract changes (by increase in the case of a
sale or by decrease in the case of a purchase) so that the loss on the futures
contract reaches a point at which the margin on deposit does not satisfy the
margin requirement, the broker will require an increase in the margin. However,
if the value of a position increases because of favorable price changes in the
futures contract so that the margin deposit exceeds the required margin, the
broker will promptly pay the excess to GET E. These daily payments to and from
GET E are called variation margin. At times of extreme price volatility,
intra-day variation margin payments may be required. In computing daily net
asset values, GET E will mark-to-market the current value of its open futures
contracts. GET E expects to earn interest income on its initial margin deposits.
When GET E buys or sells a futures contract, unless it already owns an
offsetting position, it will designate cash and/or liquid securities having an
aggregate value at least equal to the full "notional" value of the futures
contract, thereby insuring that the leveraging effect of such futures contract
is minimized, in accordance with regulatory requirements.
4
<PAGE>
GET E may purchase and sell futures contracts under the following conditions:
(a) the then-current aggregate futures market prices of financial instruments
required to be delivered and purchased under open futures contracts shall not
exceed 30% of GET E's total assets at market value at the time of entering into
a contract and (b) no more than 5% of the assets, at market value at the time of
entering into a contract, shall be committed to margin deposits in relation to
futures contracts.
Additional Restrictions on the Use of Futures Contracts CFTC regulations require
that to prevent GET E from being a commodity pool, GET E enter into all short
futures for the purpose of hedging the value of securities held, and that all
long futures positions either constitute bona fide hedging transactions, as
defined in such regulations, or have a total value not in excess of an amount
determined by reference to certain cash and securities positions maintained, and
accrued profits on such positions. As evidence of its hedging intent, GET E
expects that at least 75% of futures contract purchases will be "completed";
that is, upon the sale of these long contracts, equivalent amounts of related
securities will have been or are then being purchased by it in the cash market.
With respect to futures contracts that are entered into for purposes that may be
considered speculative, the aggregate initial margin for futures contracts will
not exceed 5% of GET E's net assets, after taking into account realized profits
and unrealized losses on such futures contracts.
Interest Rate Swap Transactions Swap agreements entail both interest rate risk
and credit risk. There is a risk that, based on movements of interest rates in
the future, the payments made by GET E under a swap agreement will have been
greater than those received by it. Credit risk arises from the possibility that
the counterparty will default. If the counterparty to an interest rate swap
defaults, GET E's loss will consist of the net amount of contractual interest
payments that GET E has not yet received. Aeltus will monitor the
creditworthiness of counterparties to GET E's interest rate swap transactions on
an ongoing basis. GET E will enter into swap transactions with appropriate
counterparties pursuant to master netting agreements. A master netting agreement
provides that all swaps done between GET E and that counterparty under that
master agreement shall be regarded as parts of an integral agreement. If on any
date amounts are payable in the same currency in respect of one or more swap
transactions, the net amount payable on that date in that currency shall be
paid. In addition, the master netting agreement may provide that if one party
defaults generally or on one swap, the counterparty may terminate the swaps with
that party. Under such agreements, if there is a default resulting in a loss to
one party, the measure of that party's damages is calculated by reference to the
average cost of a replacement swap with respect to each swap (i.e., the
mark-to-market value at the time of the termination of each swap). The gains and
losses on all swaps are then netted, and the result is the counterparty's gain
or loss on termination. The termination of all swaps and the netting of gains
and losses on termination is generally referred to as "aggregation."
Zero Coupon Securities and STRIPS
GET E may invest in zero coupon securities and STRIPS (Separate Trading of
Registered Interest and Principal of Securities). Zero coupon or deferred
interest securities are debt obligations that do not entitle the holder to any
periodic payment of interest prior to maturity or a specified date when the
securities begin paying current interest (the "cash payment date") and therefore
are issued and traded at a discount from their face amounts or par value. The
discount varies, depending on the time remaining until maturity or cash payment
date, prevailing interest rates, liquidity of the security and the perceived
credit quality of the issuer. The discount, in the absence of financial
difficulties of the issuer, decreases as the final maturity or cash payment date
of the security approaches. STRIPS are created by the Federal Reserve Bank by
separating the interest and principal components of an outstanding U.S. Treasury
bond and selling them as individual securities. The market prices of zero coupon
securities and STRIPS generally are more volatile than the market prices of
securities with similar maturities that pay interest periodically and are likely
to respond to changes in interest rates to a greater degree than do non-zero
coupon securities having similar maturities and credit quality.
5
<PAGE>
Zero coupon securities issued by corporations are also subject to the risk that
in the event of a default, GET E may realize no return on its investment.
Additional Risk Factors in Using Derivatives In addition to any risk factors
which may be described elsewhere in this section, or in the Prospectus, the
following sets forth certain information regarding the potential risks
associated with GET E's transactions in derivatives.
Risk of Imperfect Correlation GET E's ability to hedge effectively all or a
portion of its portfolio through transactions in futures on securities and
indices depends on the degree to which movements in the value of the securities
or index underlying such hedging instrument correlates with movements in the
value of the assets being hedged. If the value of the assets being hedged do not
move in the same amount or direction as the underlying security or index, the
hedging strategy for GET E might not be successful and it could sustain losses
on its hedging transactions which would not be offset by gains on its portfolio.
It is also possible that there may be a negative correlation between the
security or index underlying a futures contract and the portfolio securities
being hedged, which could result in losses both on the hedging transaction and
the portfolio securities. In such instances, GET E's overall return could be
less than if the hedging transactions had not been undertaken.
Potential Lack of a Liquid Secondary Market Prior to exercise or expiration, a
futures position may be terminated only by entering into a closing sale
transaction, which requires a secondary market on the exchange on which the
position was originally established. While GET E will establish a futures
position only if there appears to be a liquid secondary market therefor, there
can be no assurance that such a market will exist for any particular futures
contract at any specific time. In such event, it may not be possible to close
out a position held by GET E which could require it to purchase or sell the
instrument underlying the position, make or receive a cash settlement, or meet
ongoing variation margin requirements. The inability to close out futures
positions also could have an adverse impact on GET E's ability effectively to
hedge its portfolio, or the relevant portion thereof.
The trading of futures contracts also is subject to the risk of trading halts,
suspensions, exchange or clearing house equipment failures, government
intervention, insolvency of the brokerage firm or clearing house or other
disruptions of normal trading activity, which could at times make it difficult
or impossible to liquidate existing positions or to recover excess variation
margin payments.
Risk of Predicting Interest Rate Movements Investments in futures contracts on
fixed income securities and related indices involve the risk that if Aeltus'
judgment concerning the general direction of interest rates is incorrect, the
overall performance of GET E may be poorer than if it had not entered into any
such contract. For example, if GET E has been hedged against the possibility of
an increase in interest rates which would adversely affect the price of bonds
held in its portfolio and interest rates decrease instead, GET E will lose part
or all of the benefit of the increased value of its bonds which have been hedged
because it will have offsetting losses in its futures positions. In addition, in
such situations, if GET E has insufficient cash, it may have to sell bonds from
its portfolio to meet daily variation margin requirements, possibly at a time
when it may be disadvantageous to do so. Such sale of bonds may be, but will not
necessarily be, at increased prices which reflect the rising market.
Counterparty Risk With some derivatives there is also the risk that the
counterparty may fail to honor its contract terms, causing a loss for GET E.
6
<PAGE>
Repurchase Agreements
GET E may enter into repurchase agreements with domestic banks and
broker-dealers meeting certain size and creditworthiness standards approved by
the Board. Under a repurchase agreement, GET E may acquire a debt instrument for
a relatively short period (usually not more than one week) subject to an
obligation of the seller to repurchase and GET E to resell the instrument at a
fixed price and time, thereby determining the yield during the GET E's holding
period. This results in a fixed rate of return insulated from market
fluctuations during such period. Such underlying debt instruments serving as
collateral will meet the quality standards of GET E. The market value of the
underlying debt instruments will, at all times, be equal to the dollar amount
invested. Repurchase agreements, although fully collateralized, involve the risk
that the seller of the securities may fail to repurchase them from GET E. In
that event, GET E may incur disposition costs in connection with liquidating the
collateral, or a loss if the collateral declines in value. Also, if the default
on the part of the seller is due to insolvency and the seller initiates
bankruptcy proceedings, GET E's ability to liquidate the collateral may be
delayed or limited. Repurchase agreements maturing in more than seven days will
not exceed 10% of the total assets of GET E.
Variable Rate Demand Instruments
GET E may invest in variable rate demand instruments. Variable rate demand
instruments (including floating rate instruments) held by GET E may have
maturities of more than one year, provided: (i) GET E is entitled to the payment
of principal at any time, or during specified intervals not exceeding one year,
upon giving the prescribed notice (which may not exceed 30 days), and (ii) the
rate of interest on such instruments is adjusted at periodic intervals not to
exceed one year. In determining whether a variable rate demand instrument has a
remaining maturity of one year or less, each instrument will be deemed to have a
maturity equal to the longer of the period remaining until its next interest
rate adjustment or the period remaining until the principal amount can be
recovered through demand. GET E will be able (at any time or during specified
periods not exceeding one year, depending upon the note involved) to demand
payment of the principal of a note. If an issuer of a variable rate demand note
defaulted on its payment obligation, GET E might be unable to dispose of the
note and a loss would be incurred to the extent of the default. GET E may invest
in variable rate demand notes only when the investment is deemed to involve
minimal credit risk. The continuing creditworthiness of issuers of variable rate
demand notes held by GET E will also be monitored to determine whether such
notes should continue to be held. Variable and floating rate instruments with
demand periods in excess of seven days and which cannot be disposed of promptly
within seven business days and in the usual course of business without taking a
reduced price will be treated as illiquid securities.
Foreign Securities
GET E may invest in depositary receipts of foreign companies included in the S&P
500. Depositary receipts are typically dollar denominated, although their market
price is subject to fluctuations of the foreign currency in which the underlying
securities are denominated. Depositary receipts are typically American
Depositary Receipts (ADRs), which are designed for U.S. investors and held
either in physical form or in book entry form.
Real Estate Securities
GET E may invest in real estate securities through interests in real estate
investment trusts (REITs). REITs are trusts that sell securities to investors
and use the proceeds to invest in real estate or interests in real estate. A
REIT may focus on a particular project, such as apartment complexes, or
geographic region, such as the Northeastern U.S., or both.
7
<PAGE>
Investing in stocks of real estate-related companies presents certain risks that
are more closely associated with investing in real estate directly than with
investing in the stock market generally, including: periodic declines in the
value of real estate, generally, or in the rents and other income generated by
real estate; periodic over-building, which creates gluts in the market, as well
as changes in laws (such as zoning laws) that impair the property rights of real
estate owners; and adverse developments in the real estate industry.
Bank Obligations
GET E may invest in obligations issued by domestic banks (including banker's
acceptances, commercial paper, bank notes, time deposits and certificates of
deposit).
Illiquid Securities
GET E may invest in illiquid securities. Illiquid securities are securities that
are not readily marketable or cannot be disposed of promptly within seven days
and in the usual course of business without taking a materially reduced price.
Such securities include, but are not limited to, time deposits and repurchase
agreements with maturities in excess of seven days. Securities that may be
resold under Rule 144A under the Securities Act of 1933, as amended (1933 Act)
or securities offered pursuant to Section 4(2) of the 1933 Act shall not be
deemed illiquid solely by reason of being unregistered. Aeltus shall determine
whether a particular security is deemed to be illiquid based on the trading
markets for the specific security and other factors. Illiquid securities will
not exceed 15% of the total assets of GET E.
OTHER CONSIDERATIONS
Acceptance of Deposits During Guarantee Period
In extreme circumstances, Aetna reserves the right to accept additional
deposits, including both new annuity monies and internal variable annuity
transfers, during the Guarantee Period and to discontinue this practice at its
discretion at any time.
Year 2000
As a healthcare and financial services enterprise, Aetna Inc. (referred to
collectively with its affiliates and subsidiaries as "Aetna Inc."), is dependent
on computer systems and applications to conduct its business. Aetna Inc. has
developed and is currently executing a comprehensive risk-based plan designed to
make its mission-critical information technology ("IT") systems and embedded
systems Year 2000 ready. The plan for IT systems covers five stages including
(i) assessment, (ii) remediation, (iii) testing, (iv) implementation and (v)
Year 2000 approval. At year-end 1997, Aetna Inc., including Aeltus, had
substantially completed the assessment stage. The remediation of
mission-critical IT systems was completed year-end 1998. Testing of all
mission-critical IT systems is underway with Year 2000 approval targeted for
completion by mid-1999. The costs of these efforts will not affect the Fund.
Aeltus and the Fund also have relationships with broker-dealers, transfer
agents, custodians or other securities industry participants or other service
providers that are not affiliated with Aetna Inc. Aetna Inc., including Aeltus,
has initiated communication with its critical external relationships to
determine the extent to which Aetna may be vulnerable to such parties' failure
to resolve their own Year 2000 issues. Aetna Inc. and Aeltus have assessed and
are prioritizing responses in an attempt to mitigate risks with respect to the
failure of these parties to be Year 2000 ready. There can be no assurance that
failure of third parties to complete adequate preparations in a timely manner,
and any resulting systems interruptions or other consequences, would not have an
adverse effect, directly or indirectly, on GET E, including, without limitation,
its operation or the valuation of its assets.
8
<PAGE>
In addition, the Year 2000 problem may adversely affect issuers in which GET E
invests. For example, issuers may incur substantial costs to address the
problem. Aeltus and GET E will continue to monitor developments relating to this
issue.
THE ASSET ALLOCATION PROCESS
The initial allocation of the GET E assets between the Equity Component and the
Fixed Component will be determined principally by the prevailing level of
interest rates and the volatility of the stock market at the beginning of the
Guarantee Period. In periods of low interest rates, more assets have to be
allocated to the Fixed Component. Aeltus will then monitor the allocation of GET
E assets on a daily basis.
The asset allocation process will also be affected by Aeltus' ability to manage
the Fixed Component. If the Fixed Component provides a return better than that
assumed by the proprietary software model, fewer assets would have to be
allocated to the Fixed Component. On the other hand, if the Fixed Component
performance is poorer than expected, more assets would have to be allocated to
the Fixed Component, and the ability of GET E to participate in any subsequent
upward movement in the equity market would be limited.
The process of asset reallocation results in additional transaction costs such
as brokerage commissions. To moderate such costs, Aeltus has built into the
proprietary software program a factor that will require reallocations only when
Equity Component and Fixed Component values have deviated by more than certain
minimal amounts since the last reallocation.
9
<PAGE>
TRUSTEES AND OFFICERS OF THE FUND
The investments and administration of the Fund are under the direction of the
Board. The Board and executive officers of the Fund and their principal
occupations for the past five years are listed below. Those Trustees who are
"interested persons," as defined in the 1940 Act, are indicated by an asterisk
(*). Trustees and officers hold the same positions with other investment
companies in the same Fund Complex: Aetna Series Fund, Inc., Aetna Variable
Fund, Aetna Income Shares, Aetna Variable Encore Fund, Aetna Balanced VP, Inc.,
Aetna Generation Portfolios, Inc., and Aetna Variable Portfolios, Inc.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
Principal Occupation During Past Five Years (and
Name, Position(s) Held Positions held with Affiliated Persons or
Address and Age With each Fund Principal Underwriters of the Fund)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
J. Scott Fox* Trustee and President Director, Managing Director, Chief Operating
10 State House Square Officer, Chief Financial Officer, Aeltus
Hartford, Connecticut Investment Management, Inc., October 1997 to
Age 44 present; Director and Senior Vice President,
Aetna Life Insurance and Annuity Company,
March 1997 to February 1998; Director,
Managing Director, Chief Operating Officer,
Chief Financial Officer and Treasurer,
Aeltus, April 1994 to March 1997.
- --------------------------------------------------------------------------------------------------------------------
Wayne F. Baltzer Vice President Vice President, Aeltus Capital, Inc., May 1998 to
10 State House Square present.
Hartford, Connecticut
Age 55
- --------------------------------------------------------------------------------------------------------------------
Albert E. DePrince, Jr. Trustee Professor, Middle Tennessee State University,
3029 St. Johns Drive 1991 to present.
Murfreesboro, Tennessee
Age 58
- --------------------------------------------------------------------------------------------------------------------
Stephanie A. DeSisto Vice President, Vice President, Mutual Fund Accounting, Aeltus
10 State House Square Treasurer and Chief Investment Management, Inc., November 1995 to
Hartford, Connecticut Financial Officer present; Director, Mutual Fund Accounting, Aetna
Age 45 Life Insurance and Annuity Company, August 1994
to November 1995; Assistant Vice President,
Investors Bank & Trust, January 1993 to August
1994.
- --------------------------------------------------------------------------------------------------------------------
Amy R. Doberman Secretary General Counsel, Aeltus Investment Management,
10 State House Square Inc., February 1999 to present; Counsel, Aetna
Hartford, Connecticut Life Insurance and Annuity Company, December 1996
Age 37 to present; Attorney, Securities and Exchange
Commission, March 1990 to November 1996.
- --------------------------------------------------------------------------------------------------------------------
10
<PAGE>
- --------------------------------------------------------------------------------------------------------------------
Maria T. Fighetti Trustee Manager/Attorney, Health Services, New York City
325 Piermont Road Department of Mental Health, Mental Retardation
Closter, New Jersey and Alcohol Services, 1973 to present.
Age 55
- --------------------------------------------------------------------------------------------------------------------
David L. Grove Trustee Private Investor; Economic/Financial Consultant,
5 The Knoll December 1985 to present.
Armonk, New York
Age 81
- --------------------------------------------------------------------------------------------------------------------
John Y. Kim* Trustee Director, President, Chief Executive Officer,
10 State House Square Chief Investment Officer, Aeltus Investment
Hartford, Connecticut Management, Inc., December 1995 to present;
Age 38 Director, Aetna Life Insurance and Annuity Company,
February 1995 to March 1998; Senior Vice President,
Aetna Life Insurance and Annuity Company, September
1994 to present.
- --------------------------------------------------------------------------------------------------------------------
Sidney Koch Trustee Financial Adviser, self-employed, January 1993 to
455 East 86th Street present.
New York, New York
Age 64
- --------------------------------------------------------------------------------------------------------------------
Frank Litwin Vice President Managing Director, Aeltus Investment Management,
10 State House Square Inc., August 1997 to present; Managing Director,
Hartford, Connecticut Aeltus Capital, Inc., May 1998 to present; Vice
Age 49 President, Fidelity Investments Institutional
Services Company, April 1992 to August 1997.
- --------------------------------------------------------------------------------------------------------------------
Shaun P. Mathews* Trustee Director, Vice President/Senior Vice President,
151 Farmington Avenue Aetna Life Insurance and Annuity Company, March
Hartford, Connecticut 1991 to present; Director, Aetna Investment
Age 43 Services, Inc., July 1993 to present; Senior
Vice President, Aetna Investment Services,
Inc., July 1993 to February, 1999.
- --------------------------------------------------------------------------------------------------------------------
Corine T. Norgaard Trustee Dean of the Barney School of Business, University
556 Wormwood Hill of Hartford (West Hartford, CT), August 1996 to
Mansfield Center, Connecticut present; Professor, Accounting and Dean of the
Age 61 School of Management, SUNY Binghamton
(Binghamton, NY), August 1993 to August 1996
- --------------------------------------------------------------------------------------------------------------------
11
<PAGE>
- --------------------------------------------------------------------------------------------------------------------
Richard G. Scheide Trustee Trust and Private Banking Consultant, David Ross
11 Lily Street Palmer Consultants, July 1991 to present.
Nantucket, Massachusetts
Age 70
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
During the fiscal year ended December 31, 1998, members of the Board who are
also directors, officers or employees of Aetna Inc. and its affiliates were not
entitled to any compensation from the Funds. As of December 31, 1998, the
unaffiliated members of the Board received compensation in the amounts included
in the following table. No member of the Board was entitled to receive pension
or retirement benefits.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Aggregate Aggregate Aggregate Aggregate Aggregate Aggregate Total
Name of Person Compensation Compensation Compensation Compensation Compensation Compensation Compensation
Position from Aetna from Aetna from Aetna from Aetna from Aetna from Aetna from the Funds
Variable Generation Variable Balanced VP, Income Shares Variable Fund and Fund Complex
Portfolios, Portfolios, Encore Fund Inc. Paid to Trustees
Inc. Inc.
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Corine
Norgaard
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Sidney Koch
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Maria T.
Fighetti*
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
Richard G.
Scheide
Trustee,
Chairperson
Audit
Committee
- --------------------------------------------------------------------------------------------------------------------------------
David L.
Grove*
Trustee,
Chairperson
Contract
Committee
- --------------------------------------------------------------------------------------------------------------------------------
Albert E.
DePrince, Jr.
Trustee
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*During the fiscal year ended December 31, 1998, Ms. Fighetti and Dr. Grove
elected to defer compensation in the amount of $__________ and $___________,
respectively.
12
<PAGE>
CONTROL PERSONS AND PRINCIPAL SHAREHOLDERS
It is expected that GET E shares will be sold to Aetna and its affiliates and
allocated to variable annuity separate accounts to fund obligations thereunder.
Contract holders in these separate accounts are provided the right to direct the
voting of fund shares at shareholder meetings. Aetna and its affiliates vote the
shares that they own in these separate accounts in accordance with contract
holders' directions. Undirected shares of GET E will be voted for each account
in the same proportion as directed shares.
Aetna (like Aeltus) is an indirect wholly-owned subsidiary of Aetna Retirement
Services, Inc., which is in turn an indirect wholly-owned subsidiary of Aetna
Inc. Aetna's principal office is located at 151 Farmington Avenue, Hartford,
Connecticut 06156.
INVESTMENT ADVISORY AGREEMENT
The Fund entered into an investment advisory agreement (Advisory Agreement)
appointing Aeltus as the investment adviser of GET E. Under the Advisory
Agreement, and subject to the supervision of the Board, Aeltus has
responsibility for supervising all aspects of the operations of GET E including
the selection, purchase and sale of securities. Under the Advisory Agreement,
Aeltus is given the right to delegate any or all of its obligations to a
subadviser. Aeltus is an indirect wholly-owned subsidiary of Aetna Inc., a
publicly-owned holding company whose principal operating subsidiaries engage in
the health benefits, insurance and financial services businesses in the U.S. and
internationally.
The Advisory Agreement provides that Aeltus is responsible for payment of all
costs of its personnel, its overhead and of its employees who also serve as
officers or members of the Board of GET E and that GET E is responsible for
payment of all other of its costs.
For the services under the Advisory Agreement, Aeltus will receive an annual
fee, payable monthly, as described in the Prospectus.
The service mark of GET E and the name "Aetna" have been adopted by the Fund
with the permission of Aetna Services, Inc. (ASI). Their continued use is
subject to the right of ASI to withdraw this permission in the event Aeltus or
another subsidiary or affiliate of Aetna Inc. should not be the investment
adviser of GET E.
ADMINISTRATIVE SERVICES AGREEMENT
Pursuant to an Administrative Services Agreement, Aeltus acts as administrator
and provides certain administrative and shareholder services necessary for GET
E's operations and is responsible for the supervision of other service
providers. The services provided by Aeltus include: (1) internal accounting
services; (2) monitoring regulatory compliance, such as reports and filings with
the Commission and state securities commissions; (3) preparing financial
information for proxy statements; (4) preparing semi-annual and annual reports
to shareholders; (5) calculating the net asset value (NAV); (6) preparing
certain shareholder communications; (7) supervising the custodians and transfer
agent; and (8) reporting to the Board.
Aeltus is the administrator for GET E. Aeltus has responsibility for certain
administrative and internal accounting and reporting services, maintenance of
relationships with third party service providers such as the transfer agent and
custodian, calculation of the NAV and other financial reports prepared for GET
E.
Listed below is the administrative services fee Aeltus is entitled to receive on
an annual rate based on average daily net assets of GET E:
13
<PAGE>
<TABLE>
<CAPTION>
Administrative Fee Series Assets
------------------ -------------
<S> <C>
% on the first $5 billion
% on all assets over $5 billion
</TABLE>
Aeltus is contractually obligated through the Maturity Date to waive all or a
portion of its investment advisory fee and/or its administrative services fee
and/or to reimburse a portion of GET E's other expenses in order to ensure that
the Fund's total expense ratio does not exceed __% of GET E's average daily net
assets.
CUSTODIAN
Mellon Bank, N.A., One Mellon Bank Center, Pittsburgh, Pennsylvania, 15258,
serves as custodian for the assets of GET E. The custodian does not participate
in determining the investment policies of GET E nor in deciding which securities
are purchased or sold by GET E. GET E may, however, invest in obligations of the
custodian and may purchase or sell securities from or to the custodian.
TRANSFER AGENT
First Data Investor Services Group, Inc. 4400 Computer Drive, Westborough,
Massachusetts 01581 serves as the transfer agent and dividend-paying agent to
GET E.
INDEPENDENT AUDITORS
_______________________, CityPlace II, Hartford, Connecticut 06103 serves as
independent auditors to GET E. ______________ provides audit services,
assistance and consultation in connection with the Commission filings.
PRINCIPAL UNDERWRITER
Aetna has agreed to use its best efforts to distribute the shares as the
principal underwriter of GET E pursuant to an Underwriting Agreement between it
and the Fund. The Agreement was approved on ___________, 1999 to continue
through December 31, 2000. The Underwriting Agreement may be continued from year
to year thereafter if approved annually by the Trustees or by a vote of holders
of a majority of GET E's shares, and by a vote of a majority of the Trustees who
are not "interested persons," as that term is defined in the 1940 Act, of Aetna,
and who are not interested persons of the Fund, appearing in person at a meeting
called for the purpose of approving such Agreement. This Agreement terminates
automatically upon assignment, and may be terminated at any time on sixty (60)
days' written notice by the Trustees or Aetna or by vote of holders of a
majority of GET E's shares without the payment of any penalty.
BROKERAGE ALLOCATION AND TRADING POLICIES
Subject to the supervision of the Board, Aeltus has responsibility for making
investment decisions, for effecting the execution of trades and for negotiating
any brokerage commissions thereon. It is Aeltus' policy to obtain the best
quality of execution available, giving attention to net price (including
commissions where applicable), execution capability (including the adequacy of a
firm's capital position), research and other services related to execution. The
relative priority given to these factors will depend on all of the circumstances
regarding a specific trade. Aeltus may also consider the sale of shares of
registered investment companies advised by Aeltus as a factor in the selection
of brokerage firms to execute GET E's portfolio transactions, subject to Aeltus'
duty to obtain best execution.
14
<PAGE>
Aeltus receives a variety of brokerage and research services from brokerage
firms in return for the execution by such brokerage firms of trades on behalf of
GET E. These brokerage and research services include, but are not limited to,
quantitative and qualitative research information and purchase and sale
recommendations regarding securities and industries, analyses and reports
covering a broad range of economic factors and trends, statistical data relating
to the strategy and performance of GET E and other investment companies,
services related to the execution of trades on behalf of GET E and advice as to
the valuation of securities, the providing of equipment used to communicate
research information and specialized consultations with Fund personnel with
respect to computerized systems and data furnished to GET E as a component of
other research services. Aeltus considers the quantity and quality of such
brokerage and research services provided by a brokerage firm along with the
nature and difficulty of the specific transaction in negotiating commissions for
trades in GET E's securities and may pay higher commission rates than the lowest
available when it is reasonable to do so in light of the value of the brokerage
and research services received generally or in connection with a particular
transaction. Aeltus' policy in selecting a broker to effect a particular
transaction is to seek to obtain "best execution," which means prompt and
efficient execution of the transaction at the best obtainable price with payment
of commissions which are reasonable in relation to the value of the services
provided by the broker, taking into consideration research and brokerage
services provided. When the trader believes that more than one broker can
provide best execution, preference may be given to brokers that provide
additional services to Aeltus.
Research services furnished by brokers through whom GET E effects securities
transactions may be used by Aeltus in servicing all of its accounts; not all
such services will be used by Aeltus to benefit GET E.
Consistent with federal law, Aeltus may obtain such brokerage and research
services regardless of whether they are paid for (1) by means of commissions, or
(2) by means of separate, non-commission payments. Aeltus' judgment as to
whether and how it will obtain the specific brokerage and research services will
be based upon its analysis of the quality of such services and the cost
(depending upon the various methods of payment which may be offered by brokerage
firms) and will reflect Aeltus' opinion as to which services and which means of
payment are in the long-term best interests of GET E.
GET E has no present intention of effecting any brokerage transactions in
portfolio securities with Aeltus or any other affiliated person.
GET E and another advisory client of Aeltus or Aeltus itself, may desire to buy
or sell the same security at or about the same time. In such a case, the
purchases or sales will normally be aggregated, and then allocated as nearly as
practicable on a pro rata basis in proportion to the amounts to be purchased or
sold by each. In some cases the smaller orders will be filled first. In
determining the amounts to be purchased and sold, the main factors to be
considered are the respective investment objectives of GET E and the other
accounts, the relative size of portfolio holdings of the same or comparable
securities, availability of cash for investment, and the size of their
respective investment commitments. Prices are averaged for aggregated trades.
The Board adopted a policy allowing trades to be made between affiliated
registered investment companies or series thereof provided they meet the terms
of Rule 17a-7 under the 1940 Act.
The Board also adopted a Code of Ethics governing personal trading by persons
who manage, or who have access to trading activity by, GET E. The Code of Ethics
allows trades to be made in securities that may be held by GET E. However, it
prohibits a person from taking advantage of GET E trades or from acting on
inside information. Aeltus also has adopted a Code of Ethics, which the Board
reviews annually.
15
<PAGE>
PURCHASE AND REDEMPTION OF SHARES
Shares of GET E are purchased and redeemed at the NAV next determined after
receipt of a purchase or redemption order in acceptable form as described in the
Prospectus.
The value of shares redeemed may be more or less than the shareholder's costs,
depending upon the market value of the portfolio securities at the time of
redemption. Payment for shares redeemed will be made by GET E within seven days
or the maximum period allowed by law, if shorter, after the redemption request
is received by GET E or by Aetna.
NET ASSET VALUE
Securities of GET E are generally valued by independent pricing services which
have been approved by the Board. The values for equity securities traded on
registered securities exchanges are based on the last sale price or, if there
has been no sale that day, at the mean of the last bid and asked price on the
exchange where the security is principally traded. Securities traded over the
counter are valued at the mean of the last bid and asked price if current market
quotations are not readily available. Short-term debt securities that have a
maturity date of more than sixty days and long-term debt securities are valued
at the mean of the last bid and asked price of such securities obtained from a
broker that is a market-maker in the securities or a service providing
quotations based upon the assessment of market-makers in those securities.
Short-term debt securities maturing in sixty days or less at the date of
purchase will be valued using the "amortized cost" method of valuation. This
involves valuing an instrument at its cost and thereafter assuming a constant
amortization of premium or increase of discount. Options are valued at the mean
of the last bid and asked price on the exchange where the option is primarily
traded. Futures contracts are valued daily at a settlement price based on rules
of the exchange where the futures contract is primarily traded. Securities for
which market quotations are not readily available are valued at their fair value
in such manner as may be determined, from time to time, in good faith, by or
under the authority of, the Board.
TAX STATUS
The following is only a limited discussion of certain additional tax
considerations generally affecting GET E. No attempt is made to present a
detailed explanation of the tax treatment of GET E and no explanation is
provided with respect to the tax treatment of any shareholder. The discussions
here and in the Prospectus are not intended as substitutes for careful tax
planning. Holders of VA Contracts must consult their contract prospectus,
prospectus summary or disclosure statement for information concerning the
federal income tax consequences of owning such contracts.
Qualification as a Regulated Investment Company
GET E has elected to be taxed as a regulated investment company under Subchapter
M of the Code. If for any taxable year GET E does not qualify as a regulated
investment company, all of its taxable income (including its net capital gain)
will be subject to tax at regular corporate rates without any deduction for
distributions to shareholders, and such distributions will be taxable to the
shareholders as ordinary dividends to the extent of GET E's current and
accumulated earnings and profits. Such distributions generally will be eligible
for the dividends-received deduction in the case of corporate shareholders.
Qualification of Segregated Asset Accounts
Under Code section 817(h), a segregated asset account upon which a variable
annuity contract is based must be "adequately diversified." A segregated asset
account will be adequately diversified if it satisfies one of two alternative
tests set forth in the Treasury Regulations. Specifically, the Treasury
Regulations provide, that except as permitted by
16
<PAGE>
the "safe harbor" discussed below, as of the end of each calendar quarter (or
within 30 days thereafter) no more than 55% of GET E's total assets may be
represented by any one investment, no more than 70% by any two investments, no
more than 80% by any three investments and no more than 90% by any four
investments. For this purpose, all securities of the same issuer are considered
a single investment, and while each U.S. Government agency and instrumentality
is considered a separate issuer, a particular foreign government and its
agencies, instrumentalities and political subdivisions may be considered the
same issuer. As a safe harbor, a separate account will be treated as being
adequately diversified if the diversification requirements under Subchapter M
are satisfied and no more than 55% of the value of the account's total assets
are cash and cash items, U.S. government securities and securities of other
regulated investment companies.
For purposes of these alternative diversification tests, a segregated asset
account investing in shares of a regulated investment company will be entitled
to "look-through" the regulated investment company to its pro rata portion of
the regulated investment company's assets, provided the regulated investment
company satisfies certain conditions relating to the ownership of the shares.
Foreign Investments
Investment income from foreign securities may be subject to foreign taxes
withheld at the source. It is impossible to determine the effective rate of
foreign tax in advance since the amount of GET E's assets to be invested in
various countries is not known.
Excise Tax on Regulated Investment Companies
A 4% non-deductible excise tax is imposed on the undistributed income of a
regulated investment company that fails to distribute in each calendar year an
amount equal to 98% of ordinary taxable income for the calendar year and 98% of
capital gain net income for the one-year period ended on October 31 of such
calendar year (or, at the election of a regulated investment company having a
taxable year ending November 30 or December 31, for its taxable year).
Tax-exempt interest on municipal obligations is not subject to the excise tax.
The balance of such income must be distributed during the next calendar year.
For the foregoing purposes, a regulated investment company is treated as having
distributed any amount on which it is subject to income tax for any taxable year
ending in such calendar year.
GET E intends to make sufficient distributions or deemed distributions of its
ordinary taxable income and capital gain net income prior to the end of each
calendar year to avoid liability for the excise tax. However, investors should
note that GET E may in certain circumstances be required to liquidate portfolio
investments to make sufficient distributions to avoid excise tax liability.
PERFORMANCE INFORMATION
Performance information for GET E including the total return, may appear in
reports or promotional literature to current or prospective shareholders.
Average Annual Total Return
Quotations of average annual total return for GET E will be expressed in terms
of the average annual compounded rate of return of a hypothetical investment in
GET E over a period of one and five years (or, if Get E has not been in
existence for such periods, up to the life of GET E), calculated pursuant to the
formula:
P(1 + T)(n) = ERV
17
<PAGE>
Where:
P = a hypothetical initial payment of $1,000
T = an average annual total return
n = the number of years
ERV = the ending redeemable value of a hypothetical $1,000 payment made at the
beginning of the 1, 5, or 10 year period at the end of the 1, 5, or 10 year
period (or fractional portion thereof).
Performance information for GET E may be compared, in reports and promotional
literature, to: (a) the S&P 500 and/or the Lehman Brothers Aggregate Bond Index,
or other indices (including, where appropriate, a blending of indices) that
measure performance of a pertinent group of securities widely regarded by
investors as representative of the securities markets in general; (b) other
groups of investment companies tracked by Morningstar or Lipper Analytical
Services, widely used independent research firms that rank mutual funds and
other investment companies by overall performance, investment objectives, and
assets, or tracked by other services, companies, publications, or persons who
rank such investment companies on overall performance or other criteria; and (c)
the Consumer Price Index (measure for inflation) to assess the real rate of
return from an investment in GET E.
Statement of Additional Information
18
<PAGE>
PART C
OTHER INFORMATION
-----------------
Item 23. Exhibits
- ------------------
(a.1) Declaration of Trust(1)
(a.2) Form of Amendment to Declaration of Trust (October 28, 1993)
(a.3) Amendment to Declaration of Trust (June 18, 1996)(1)
(a.4) Amendment to Declaration of Trust (July 19, 1996)(1)
(a.5) Amendment to Declaration of Trust (September 24, 1998)(1)
(a.6) Amendment to Declaration of Trust (________, 1999)*
(b) Amended and Restated By-laws(2)
(c) Instruments Defining Rights of Holders(3)
(d) Investment Advisory Agreement between Aeltus Investment Management,
Inc. and Aetna GET Fund*
(e) Underwriting Agreement between Aetna GET Fund and Aetna Life
Insurance and Annuity Company(1)
(f) Trustees' Deferred Compensation Plan(1)
(g.1) Custodian Agreement between Mellon Bank, N.A. and Aetna GET Fund(1)
(g.2) Amendment to Custodian Agreement (November 24, 1993)(1)
(g.3) Amendment to Custodian Agreement (August 26, 1996)(1)
(g.4) Amendment to Custodian Agreement (September 29, 1998)(1)
(g.5) Amendment to Custodian Agreement (________, 1999)*
(h.1) Administrative Services Agreement between Aeltus and Aetna GET Fund
(March 25, 1998)(1)
(h.2) Amendment to Administrative Services Agreement between Aeltus and
Aetna GET Fund (September 25, 1998)(1)
(h.3) Amendment to Administrative Services Agreement between Aeltus and
Aetna GET Fund (__________, 1999)*
(i) Opinion and Consent of Counsel
(j) Not applicable
(k) Not applicable
(l) Agreement Concerning Initial Capital(4)
(m) Not applicable
(n) Not applicable
(o) Not applicable
(p.1) Power of Attorney (November 6, 1998)
(p.2) Authorization for Signatures(5)
*To be filed by amendment
<PAGE>
1. Incorporated by reference to Post-Effective Amendment No. 13 to
Registration Statement on Form N-1A (File No. 33-12723), as filed with the
Securities and Exchange Commission on September 30, 1998.
2. Incorporated by reference to Post-Effective Amendment No. 8 to Registration
Statement on Form N-1A (File No. 33-12723), as filed with the Securities
and Exchange Commission on June 14, 1996.
3. Incorporated by reference to Post-Effective Amendment No. 9 to Registration
Statement on Form N-1A (File No. 33-12723), as filed with the Securities
and Exchange Commission on December 31, 1996.
4. Incorporated by reference to Post-Effective Amendment No. 11 to
Registration Statement on Form N-1A (File No. 33-12723) as filed with the
Securities and Exchange Commission on March 11, 1997.
5. Incorporated by reference to Post-Effective Amendment No. 2 to Registration
Statement on Form N-1A (File No. 333-05173), as filed with the Securities
and Exchange Commission on September 26, 1997.
<PAGE>
Item 24. Persons Controlled by or Under Common Control
- ------------------------------------------------------
Registrant is a Massachusetts business trust for which separate
financial statements are filed. As of February 28, 1999, all of the
Registrant's outstanding voting securities were held in the name of
Aetna Life Insurance and Annuity Company ("Aetna").
Aetna is an indirect wholly-owned subsidiary of Aetna Inc.
Attached is a listing of all persons directly or indirectly controlled
by or under common control with the Registrant. The listing indicates
(1) the state or other sovereign power under the laws of which the
entity is organized, (2) the percentage of voting securities owned or
other basis of control by the person, if any, immediately controlling
it (percentages are rounded to the nearest whole percentage and are
based on ownership of voting rights), and (3) its principal business.
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Inc. CT(1) Publicly Held Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Services, Inc. CT(1)(*) Aetna Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare Inc. PA(1)(*) Aetna Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Risk Indemnity Bermuda(1)(*) Aetna Inc. 100% Insurance
Company Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Life and Health
Insurance Company CT(1)(*) Aetna Services, Inc. 100% Insurance and
Related Services
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Retirement
Services, Inc. CT(1)(*) Aetna Services, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International, Inc. CT(1)(*) Aetna Services, Inc. 100% Holding Company
for International
Subsidiaries
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health and Life and Health
Life Insurance Company CT(1)(*) Aetna Services, Inc. 100% Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Capital Trust I DE(4)(*) Aetna Services, Inc. 100% Business Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Capital Trust II DE(4)(*) Aetna Services, Inc. 100% Business Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Capital Trust III DE(4)(*) Aetna Services, Inc. 100% Business Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Capital Trust IV DE(4)(*) Aetna Services, Inc. 100% Business Trust
- ------------------------------------------------------------------------------------------------------------------------------------
AUSHC Holdings, Inc. CT(1)(*) Aetna Services, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
(1)Corporation (*)Fully Consolidated
(2)Partnership (**)One Line Consolidation
(3)Joint Venture (***)Not Consolidated
(4)Trust
(5)Limited Liability Company
</TABLE>
+ Percentages are rounded to the nearest whole percent and are based on
ownership of voting rights.
1
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Foundation, Inc. CT(1)(***) Aetna Services, Inc. 100%(a) Supports Charitable
Scientific, Literary
and Educational
Activities
- ------------------------------------------------------------------------------------------------------------------------------------
Imperial Fire & Marine U.K.(1)(***) Aetna Services, Inc. 10% Reinsurance
Re-Insurance Company
Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Business CT(1)(*) Aetna Services, Inc. 100% Provides Business
Resources, Inc. Services to External
Clients
- ------------------------------------------------------------------------------------------------------------------------------------
AE Fifteen, Incorporated CT(1)(*) Aetna Services, Inc. 100% Shell Corp. for
Interest in Cogeneration
- ------------------------------------------------------------------------------------------------------------------------------------
Luettgens Limited CT(1)(*) Aetna Services, Inc. 100% Retail Specialty Store
- ------------------------------------------------------------------------------------------------------------------------------------
AE Housing Corp. CT(1)(*) Aetna Services, Inc. 100% Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Capital L.L.C. DE(5)(*) Aetna Services, Inc. 95%(b) Finance - Limited
Liability Company
- ------------------------------------------------------------------------------------------------------------------------------------
A.S.I. Wings, L.L.C. DE(5)(*) Aetna Services, Inc. 100% General Business
Corporation
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Realty
Investments I, Inc. CT(1)(*) Aetna Services, Inc. 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Properties I Limited CT(2)(***) Aetna Realty Investments I, 84%(c) Real Estate Investment
Partnership Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
PHPSNE Parent Corporation DE(1)(*) AUSHC Holdings, Inc. 55% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of CT(1)(*) PHPSNE Parent Corporation 100% Health Care
Southern New England, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(a) Nonstock Corporation
(b) Aetna Capital Holdings, Inc. owns 5% of this Limited Liability Company.
(c) Aetna Realty Investments I, Inc. is a 1% general partner and an 83% limited
partner.
2
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CMBS Holdings, Inc. TX(1)(*) Aetna Life Insurance Company 100% Real Estate Investment
and Management
- ------------------------------------------------------------------------------------------------------------------------------------
CMBS Holdings, Inc. - II CT(1)(*) Aetna Life Insurance Company 100% Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
CMBS Holdings, L.L.C. CT(5)(*) Aetna Life Insurance Company 99%(d) Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Real Estate CT(1)(*) Aetna Life Insurance Company 100% Acquire, Develop and
Properties, Inc. Lease Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
AE Fourteen, Inc. CT(1)(*) Aetna Life Insurance Company 100% Cogeneration
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Assignment Company CT(1)(*) Aetna Life Insurance Company 100% Assignment Company for
Structured Settlements
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna/Area Corporation CT(1)(*) Aetna Life Insurance Company 100% Real Estate Investment
and Management
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Institutional CT(2)(**) Aetna Life Insurance Company 13%(e) Real Estate Investment
Investors I
Limited Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
Shadow Ridge At Oak Park CA(2)(**) Aetna Life Insurance Company 80% Real Estate
Condominium Associates
- ------------------------------------------------------------------------------------------------------------------------------------
BPC Equity, Inc. DE(1)(*) Aetna Life Insurance Company 100% General Business Corporation
- ------------------------------------------------------------------------------------------------------------------------------------
BPC Equity, L.L.C. DE(5)(*) Aetna Life Insurance Company 99%(f) General Business Corporation
- ------------------------------------------------------------------------------------------------------------------------------------
85 L.L.C. DE(5)(**) etna Life Insurance Company 100% General Business Corporation
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(d) CMBS Holdings, Inc.-II owns 1% of this Limited Liability Company.
(e) Aetna Real Estate Properties, Inc. is a 1% general partner.
(f) BPC Equity, Inc. owns 1% of this Limited Liability Company.
3
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Affordable Housing, Inc. CT(1)(*) Aetna Life Insurance Company 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
AHP Holdings, Inc. CT(1)(*) Aetna Life Insurance Company 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Bay Area Mall, L.L.C. DE(5)(*) Aetna Life Insurance Company 99%(g) Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Bay Area Mall, Inc. DE(1)(*) Aetna Life Insurance Company 100% Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
455 Market Street CA(2)(**) Aetna Life Insurance Company 90%(h) Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Koll Center Newport A CA(2)(**) Aetna Life Insurance Company 50%(i) Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Koll Center Newport Number 8 CA(2)(**) Aetna Life Insurance Company 50%(j) Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Koll Center Newport Number 9 CA(2)(**) Aetna Life Insurance Company 50%(k) Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Koll Center Newport Number 10 CA(2)(**) Aetna Life Insurance Company 50%(l) Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Koll Center Newport Number 11 CA(2)(**) Aetna Life Insurance Company 50%(m) Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Koll Center Newport Number 14 CA(3)(**) Aetna Life Insurance Company 60% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(g) Bay Area Mall, Inc. owns 1% of this Limited Liability Company.
(h) 89% general partner and 1% limited partner.
(i) Aetna Life Insurance Company is a 49% general partner and a 1% limited
partner.
(j) Aetna Life Insurance Company is a 49% general partner and a 1% limited
partner.
(k) Aetna Life Insurance Company is a 49% general partner and a 1% limited
partner.
(l) Aetna Life Insurance Company is a 49% general partner and a 1% limited
partner.
(m) Aetna Life Insurance Company is a 49% general partner and a 1% limited
partner.
4
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pinnacle McDowell DE(5)(**) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors, L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
1111 Pasquinelli Dr. L.L.C. DE(5)(**) Aetna Life Insurance Company 100% Real Estate Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
1400 Busch Parkway, L.L.C. DE(5)(**) Aetna Life Insurance Company 100% Real Estate Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Hayward Industrial Park CT(2)(**) Aetna Life Insurance Company 99% Real Estate Investment
Associates
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Hamilton Partnership IL(2)(**) Aetna Life Insurance Company 62% Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Waterloo Associates Limited NC(2)(**) Aetna Life Insurance Company 99%(n) Real Estate Investment
Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
Gables At Farmington CT(2)(**) Aetna Life Insurance Company 60% Real Estate Investment
Associates
- ------------------------------------------------------------------------------------------------------------------------------------
Country Club Heights at MA(2)(**) Aetna Life Insurance Company 60% Real Estate Investment
Woburn Associates
- ------------------------------------------------------------------------------------------------------------------------------------
Carlyle Club Apartments DE(5)(**) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors, L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Citation Club DE(5)(**) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors, L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Britcher Aetna-Laguna Hills CA(2)(**) Aetna Life Insurance Company 68% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Harbor Business Park CA(2)(**) Aetna Life Insurance Company 99% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Ensenada De Las Colinas I TX(2)(**) Aetna Life Insurance Company 99%(o) Real Estate Investment
Associates
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(n) Aetna Life Insurance Company is a 99% general partner and Trumbull Three,
Inc. is a 1% limited partner.
(o) Aetna Life Insurance Company is a 99% general partner and Trumbull One,
Inc. is a 1% limited partner.
5
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Trevose Hospitality, Inc. CT(1)(**) Aetna Life Insurance Company 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Oaks at Valley Ranch I TX(2)(**) Aetna Life Insurance Company 99%(p) Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Oaks at Valley Ranch II TX(2)(**) Aetna Life Insurance Company 99%(q) Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
KBC-RED Hill Limited CA(2)(**) Aetna Life Insurance Company 80% Real Estate Investment
Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
KBC-Eastside Limited AZ(2)(**) Aetna Life Insurance Company 80% Real Estate Investment
Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
900 North Stuart Street DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Stuart Park Associates, L.L.C. VA(5)(***) 900 North Stuart Street 50% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Trumbull One, Inc. CT(1)(*) Aetna Life Insurance Company 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Trumbull Three, Inc. CT(1)(*) Aetna Life Insurance Company 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Trumbull Four, Inc. CT(1)(*) Aetna Life Insurance Company 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Southfield Partners MD(2)(**) Aetna Life Insurance Company 99%(r) Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Lincoln Rancho Cucamonga CA(2)(**) Aetna Life Insurance Company 60% Real Estate Investment
Associates
- ------------------------------------------------------------------------------------------------------------------------------------
1010 Executive Court, L.L.C. DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(p) Aetna Life Insurance Company is a 99% general partner and Trumbull One,
Inc. is a 1% limited partner.
(q) Aetna Life Insurance Company is a 99% general partner and Trumbull One,
Inc. is a 1% limited partner.
(r) Aetna Life Insurance Company is a 99% general partner and Trumbull Four,
Inc. is a 1% limited partner.
6
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Becknell Properties IL(2)(**) Aetna Life Insurance Company 75% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
3365 Enterprise Avenue DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors, L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Cherry Hill Investors L.L.C. CT(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Village Green of MI(2)(**) Aetna Life Insurance Company 99%(s) Real Estate Investment
Madison Heights
- ------------------------------------------------------------------------------------------------------------------------------------
Centrum Associates CA(2)(**) Aetna Life Insurance Company 65% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Tri-City Mall Associates AZ(2)(**) Aetna Life Insurance Company 50% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Southwest Financial Associates AZ(2)(**) Aetna Life Insurance Company 60% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
B&H Ventures IV Limited CT(2)(**) Aetna Life Insurance Company 75% Real Estate Investment
Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
Champions Richland Northcourte TX(2)(*) Aetna Life Insurance Company 99%(t) Real Estate Investment
Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
Chris-Town Village Associates AZ(2)(**) Aetna Life Insurance Company 50% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Arshaw Partners I TX(2)(*) Aetna Life Insurance Company 50% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Arshaw Partners II TX(2)(**) Aetna Life Insurance Company 50% Real Estate Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Assembly Square Mall LLC DE(5)(**) Aetna Life Insurance Company 99%(u) Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(s) Aetna Life Insurance Company is a 99% general partner and Trumbull Three,
Inc. is a 1% limited partner.
(t) Aetna Life Insurance Company is a 99% general partner and Trumbull One,
Inc. is a 1% limited partner.
(u) Aetna Life Insurance Company is a 99% general partner and Bay Area Mall,
Inc., is a 1% general partner.
7
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Spectrum Fashion Center AZ(2)(**) Aetna Life Insurance Company 50% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Canyon Springs Investment TX(2)(**) Aetna Life Insurance Company 100%(v) Real Estate Holding Company
Partners L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
Cambridgeside Galleria MA(2)(**) Aetna Life Insurance Company 50% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Stamford Town Center DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Rich-Taubman Associates MA(2)(***) Stamford Town Center 50% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
ADBI Partnership FL(2)(**) Aetna Life Insurance Company 30% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Marriott Inner Harbor Hotel MD(2)(*) Aetna Life Insurance Company 99% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
737 North Michigan Avenue DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Meridian Business Campus DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
I L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
1501 Fourth Ave. Limited WA(2)(**) Aetna Life Insurance Company 91%(w) Real Estate Investment
Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
Thace Associates MI(2)(**) Aetna Life Insurance Company 25% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Eastmeadow Distribution Center GA(2)(**) Aetna Life Insurance Company 99%(x) Real Estate Investment
Limited Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(v) Aetna Life Insurance Company is a 99% limited partner and Trumbull One,
Inc. is a 1% general partner.
(w) Aetna Life Insurance Company is a 90% general partner and a 1%
limited partner.
(x) Aetna Life Insurance Company is a 98% general partner and a 1%
limited partner.
8
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Eastmeadow Distribution Center GA(2)(**) Aetna Life Insurance Company 99%(y) Real Estate Investment
Phase II Limited Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
777 Oak Lane, L.L.C. DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Azalea Mall, L.L.C. DE(5)(**) Aetna Life Insurance Company 100% Real Estate Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Southeast Second Avenue, Inc. DE(1)(*) Aetna Life Insurance Company 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Menlo One, L.L.C. DE(5)(**) Aetna Life Insurance Company 99%(z) Real Estate Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Central Trust Center OH(2)(**) Aetna Life Insurance Company 15% Real Estate Investment
Associates
- ------------------------------------------------------------------------------------------------------------------------------------
South Center I & II Investors DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
South Center III & IV DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
3360 Enterprise Avenue DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
8909 Purdue Road DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Corporate Center II DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Dakota McDowell DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Meridian Business Campus DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors II L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(y) Aetna Life Insurance Company is a 98% general partner and a 1%
limited partner.
(z) Southeast Second Avenue, Inc. owns 1% of these limited liability
companies.
9
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Meridian Business Campus DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors III L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Mountain View Crossing DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Parcel 6 Meridian Parkway DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
The Vintage at Hyland Hills DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
Investors L.L.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Westlake Greens Apartments DE(5)(***) Aetna Life Insurance Company 100% Real Estate Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Capitol District Energy Center CT(2)(**) AE Fourteen, Inc. 50% Cogeneration of Electrical Power
Cogeneration Associates
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Insurance Company of CT(1)(*) AHP Holdings, Inc. 100% Insurance
Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Retirement CT(1)(*) Aetna Retirement Services, 100% Holding Company
Holdings, Inc. Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Adviser CT(1)(*) Aetna Retirement Holdings, 100% Holding Company for Investment
Holding Company, Inc. Inc. Adviser Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance CT(1)(*) Aetna Retirement Holdings, 100% Life Insurance, Pensions
and Annuity Company Inc. And Annuities
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Retail Holding CT(1)(*) Aetna Retirement Holdings, 100% Holding Company for Retail
Company, Inc. Inc. Distribution Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Services Holding CT(1)(*) Aetna Retirement Holdings, 100% Holding Company for Service
Company, Inc. Inc. Contract Companies
- ------------------------------------------------------------------------------------------------------------------------------------
Systematized Benefits CT(1)(*) Aetna Services Holding 100% Third Party Administrator
Administrators, Inc. Company, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aeltus Investment CT(1)(*) Aetna Investment Adviser 100% Investment Advisor
Management, Inc. holding Company, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Insurance Agency CT(1)(*) Aetna Retail Holding Company, 100% Holding Company
Holdings Company, Inc. Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Services, Inc. CT(1)(*) Aetna Retail Holding Company, 100% Distribute Securities Products
Inc. - ALIAC and Outside Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Financial Services, Inc. CT(1)(*) Aetna Retirement Holdings, 100% Broker-Dealer and
Inc. Investment Advisor
- ------------------------------------------------------------------------------------------------------------------------------------
FNI International, Inc. CA(1)(*) Aetna Retail Holding Company, 100% Holding Company
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Insurance Company CT(1)(*) Aetna Life Insurance and 100% Write/Reinsure Life and
of America Annuity Company Annuity Business
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna New Series Fund, Inc. MD(1)(**) Aetna Life Insurance and 100% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Income Shares MA(4)(**) Aetna Life Insurance and 99% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Encore Fund MA(4)(**) Aetna Life Insurance and 100% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna GET Fund MA(4)(**) Aetna Life Insurance and 100% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Portfolios, Inc. MD(1)(**) Aetna Life Insurance and 99%(aa) Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Fund MA(4)(**) Aetna Life Insurance and 98% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Generation MD(1)(**) Aetna Life Insurance and 100% Regulated Investment Company
Portfolios, Inc. Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Balanced VP, Inc. MD(1)(**) Aetna Life Insurance and 100% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Series Fund, Inc. MD(1)(**) Aetna Life Insurance and 39%(bb) Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(aa) Aetna Life Insurance Company owns 1% of these funds.
11
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Portfolio Partners, Inc. MD(1)(**) Aetna Life Insurance and 97%(cc) Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Network Investment CA(1)(*) FNI International, Inc. 100% Broker/Dealer
Corporation
- ------------------------------------------------------------------------------------------------------------------------------------
FN Insurance Agency of MA(1)(*) FNI International, Inc. 100% Broker/Dealer
Massachusetts, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
FN Insurance Services, Inc. CA(1)(*) FNI International, Inc. 100% Insurance Agency
- ------------------------------------------------------------------------------------------------------------------------------------
FN Insurance Services AL(1)(*) FNI International, Inc. 100% sale of life and health and
of Alabama, Inc. variable products
- ------------------------------------------------------------------------------------------------------------------------------------
FN Insurance Services NV(1)(*) FNI International, Inc. 100% To engage as an agent, managing
of Nevada, Inc. general agent broker in all
classes of insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Network Investment HA(1)(*) Financial Network Investment 100% Insurance Agency and Insurance
Corporation of Hawaii Corporation Broker
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Management Bermuda(1)(*) Aeltus Investment Management, 100% Holding Company
(Bermuda) Holdings Limited Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aeltus Trust Company CT(1)(*) Aeltus Investment Management, 100% fiduciary powers re banking
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aeltus Capital, Inc. CT(1)(*) Aeltus Investment Management, 100% Broker-Dealer Related Functions
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
China Dynamic Investment Hong Kong(1)(**) Aetna Investment Management 50% Establish and Manage Collective
Management (Hong Kong) Limited (Bermuda) Holdings Limited Investment Scheme
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(bb) Non-voting interest.
(cc) Aetna Life Insurance Company owns 3% of these funds.
12
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Insurance Agency, Inc. CT(1)(*) Aetna Insurance Agency 100% Insurance agency for the marketing
Holdings Company, Inc. of registered and nonregistered
insurance products
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Insurance Agency of MA(1)(*) Aetna Insurance Agency 100% Insurance agency for the marketing
Massachusetts, Inc. Holdings Company, Inc. of registered and nonregistered
insurance products
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Insurance Agency AL(1)(*) Aetna Insurance Agency 100% Insurance agency for the marketing
of Alabama, Inc. Holdings Company, Inc. of registered and nonregistered
insurance products
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Insurance Agency Ohio(1)(*) Aetna Insurance Agency 90% Insurance agency for the marketing
of Ohio, Inc. Holdings Company, Inc. of registered and nonregistered
insurance products
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International Holdings Hong Kong(1)(*) Aetna International, Inc. 100% Holding Company for Insurance and
(Hong Kong) I Limited Financial Services
- ------------------------------------------------------------------------------------------------------------------------------------
East Asia Aetna Insurance Bermuda(1)(**) Aetna International, Inc. 50% Life Disability and Employee
Company (Bermuda) Ltd. Benefits Ins. in H.K.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International Fund CT(1)(*) Aetna International, Inc. 100% Investment Management Services
Management Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Holdings (Cayman) Ltd. Cayman(1)(**) Aetna International, Inc. 100% Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Argentina S.A. Argentina(1)(*) Aetna Holdings Cayman Limited 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
ALICA Holdings, Inc. CT(1)(*) Aetna International, Inc. 80% Dedicated Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance Company CT(1)(*) Aetna International, Inc. 100% Life Insurance
of America
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International Holdings Hong Kong(1)(*) Aetna International, Inc. 100% Holding Company
(Hong Kong) II Limited
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Internacional y Compania, Mexico(1)(**) Aetna International, Inc. 64%(dd) Holding Company
S. en N.C. de C.V.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna S.A. Chile(1)(*) Aetna International, Inc. 100% Holding Co.
- ------------------------------------------------------------------------------------------------------------------------------------
Arcella Limited Hong Kong(1)(*) Aetna International, Inc. 100% Investment & Holding Co. for
Aetna's Asia Pacific Operations
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life & Casualty Bermuda Bermuda(1)(*) Aetna International, Inc. 100% Insurance, Guaranteed and Indemnity
Limited Business
- ------------------------------------------------------------------------------------------------------------------------------------
Inversiones Mercantil Aetna, Venezuela(1)(*) Aetna International, Inc. 50% Insurance Company
C.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Heart Investment Taiwan(1)(*) Aetna International, Inc. 80% Holding Company
Holdings Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life and Casualty Netherlands Aetna International, Inc. 100% Finance Investment Company
International Finance N.V. Antilles(1)(*)
- ------------------------------------------------------------------------------------------------------------------------------------
Sul America Aetna Seguros de Brazil(1)(**) Aetna International, Inc. 49% Insurance
Previdencia S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Management Australia(1)(*) Aetna International, Inc. 100% Stockbroking
(Australia) Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Capital Holdings, Inc. CT(1)(*) Aetna International, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Securities Investment Taiwan(1)(*) Aetna International, Inc. 80% Securities Investment Advisor
Management (Taiwan) Ltd.
- ------------------------------------------------------------------------------------------------------------------------------------
AE Five Incorporated CT(1)(*) Aetna International, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Pacific-Aetna Life PRC(3)(**) Aetna International, Inc. 50%(ee) Life Insurance
Insurance Co., LTD
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(dd) AE Five, Incorporated owns 36% of Aetna Internacional y Compania,
S. en N.C. de C.V.
(ee) Aetna Life Insurnace Company owns 1% of Pacific - Aetna Life
Insurnace Co. Ltd.
14
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Salud S.A. Argentina(1)(*) Aetna International, Inc. 100% Managing of Health Services
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Vida S.A. Argentina(1)(*) Aetna International, Inc.. 100% Health and Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna MPF Limited Hong Kong(1)(*) Aetna International, Inc. 100% Investment Management. & Advisory
Services for Individual Clients and
Investment Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Canada Holdings Limited Canada(1)(*) Aetna International, Inc. 100% Investment Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Management Taiwan(1)(*) Aetna International, Inc. 80% Provide Non-Security Business and
(Taiwan) Limited Investment Advice
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International (N.Z.) New Zealand(1)(*) Aetna International, Inc. 100% Holding Company
Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Management Hong Kong(1)(*) Aetna International, Inc. 100% Investment Holding Company
(F.E.) Holdings Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Phillippine Phillippine(1)(*) Aetna International, Inc. 100% Holding Company
Ventures, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance Inc. Philippines(1)(*) Aetna Philippine Ventures, 100% Life Insurance
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Healthcare, Inc. Philippines(1)(*) Aetna Life Insurance Inc. 100% Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Blue Cross (Asia Pacific) Hong Kong(1)(**) Aetna International Holdings 35%(ff) Underwriter Casualty and
Insurance Ltd. (Hong Kong) I Limited General Insurance in Hong Kong
and Macau
- ------------------------------------------------------------------------------------------------------------------------------------
East Asia Aetna Services Hong Kong(1)(**) East Asia Aetna Insurance 100% Management services to associate
Company Limited Company (Bermuda) Ltd. companies
- ------------------------------------------------------------------------------------------------------------------------------------
PT Aetna Life Insurance Indonesia(1)(**) Aetna Life Insurance Company 80% Limited Liability Life Insurance
Indonesia of America Company
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(ff) East Asia Aetna Insurance Company (Bermuda) Ltd. Owns 30% of Blue
Cross (Asia Pacific) Insurance Ltd.
15
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Daya Aetna (Malaysia) Malaysia(1)(*) Aetna International Holdings 82% Holding Company
SDN. BHD. (Hong Kong) II Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Universal Malaysia(1)(*) Daya Aetna (Malaysia) 100% Individual Life, Home Service,
Insurance Berhad SDN. BHD. Group and General Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Heart Co., Ltd. Taiwan(1)(*) Aetna Heart Investment 100% Trading Company - Marketing of
Holdings Limited Gifts and Souvenirs
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna South Life Agency Taiwan(1)(*) Aetna Heart Investment 100% Administrative Support
Co., Ltd. Holdings Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Huei Hong Securities Taiwan(1)(*) Aetna Heart Investment 20% Securities Trading
Co., Ltd. Holdings Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Heart Publishing Taiwan(1)(*) Aetna Heart Investment 100% Trading Company
Company Ltd. Holdings Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Seguros Mercantil, C.A. Venezuela(1)(*) Inveriones Mercantil Aetna, 100% Insurance Company
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna (Netherlands) Netherlands(1)(*) Aetna Life and Casualty 100% Finance Company
Holdings B.V. International Finance N.V.
- ------------------------------------------------------------------------------------------------------------------------------------
Travelguard Limited Hong Kong(1)(*) Blue Cross (Asia Pacific) 100% Insurance Agent
Insurance Ltd.
- ------------------------------------------------------------------------------------------------------------------------------------
Toursafe Limited Hong Kong(1)(*) Blue Cross (Asia Pacific) 100% Insurance Agent
Insurance Ltd.
- ------------------------------------------------------------------------------------------------------------------------------------
Travelsafe Limited Hong Kong(1)(*) Blue Cross (Asia Pacific) 100% Insurance Agent for its Ultimate
Insurance Ltd. Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Multiasistencia, S.A. de C.V. Mexico(1)(**) Seguros Bancomer, S.A. de C.V. 50%(gg) Administrative Services in
Connection with Insurance Claims
- ------------------------------------------------------------------------------------------------------------------------------------
Meximed, S.A. de C.V. Mexico(1)(**) Seguros Bancomer, S.A. de C.V. 50%(gg) Services for Insureds for Hospitals
Admissions and Claims Processing
- ------------------------------------------------------------------------------------------------------------------------------------
Seguros Bancomer, S.A. de C.V. Mexico(1)(**) Aetna Internacional Compania 49% Insurance and Reinsurance Company
S en N.C. de C.V.
- ------------------------------------------------------------------------------------------------------------------------------------
Pensiones Bancomer S.A. de C.V. Mexico(1)(**) Aetna Internacional Compania 49% Insurance Company
S en N.C. de C.V.
- ------------------------------------------------------------------------------------------------------------------------------------
Seguros Monterrey Aetna, S.A. Mexico(1)(**) Aetna Internacional Compania 21%(hh) Insurance and Reinsurance
S en N.C. de C.V.
- ------------------------------------------------------------------------------------------------------------------------------------
Fianzas Monterrey Aetna, S.A. Mexico(1)(**) Aetna Internacional Compania 21%(hh) Issuance of Bonds
S en N.C. de C.V.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(gg) Seguros Monterrey Aetna, S.A. owns 50% of the Multiasistencia,
S.A. de C.V. and Meximed S.A. de C.V.
(hh) Aetna International, Inc. and AE Five, Inc. own 14% each of
Seguros Monterrey Aetna S.A. and Fianzas Monterrey Aetna S.A.
17
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Centro Nacional de Servicios Y Mexico(1)(**) Seguros Monterrey Aetna, S.A. 70% Operation Support Services Company
Operaciones S.A. de C.V.
- ------------------------------------------------------------------------------------------------------------------------------------
Centro de Capacitacion Mexico(1)(**) Seguros Monterrey Aetna, S.A. 99% Trining Services Company
Monterrey, A.C.
- ------------------------------------------------------------------------------------------------------------------------------------
Futuro Familiar S.A. de C.V. Mexico(1)(**) Seguros Monterrey Aetna, S.A. 99% Marketing of Financial Services &
Products
- ------------------------------------------------------------------------------------------------------------------------------------
Corporativo Seguros S.A. Mexico(1)(**) Seguros Monterrey Aetna, S.A. 40% Corporate Services Company
de C.V.
- ------------------------------------------------------------------------------------------------------------------------------------
Operadora FMA S.A. de C.V. Mexico(1)(**) Fianzas Monterrey Aetna, S.A. 99% Corporate Services Company
- ------------------------------------------------------------------------------------------------------------------------------------
Administradora de Fondos Para Mexico(1)(**) Aetna Internacional Compania 49%(ii) Retirement Funds Management Company
el Retiro Bancomer, S en N.C. de C.V.
S.A. de C.V.
- ------------------------------------------------------------------------------------------------------------------------------------
Grupo Vamsa, S.A. de C.V. Mexico(1)(**) Aetna Internacional Compania 49% Legal Administration and Financial
S en N.C. de C.V. Services
- ------------------------------------------------------------------------------------------------------------------------------------
Asesores en Promocion Mexico(1)(**) Seguros Bancomer, S.A. de C.V. 33%(jj) Marketing of Seguros
Segunomina S.A. de C.V. Products/Payroll Discounts
- ------------------------------------------------------------------------------------------------------------------------------------
Inverval De Mexico S.A. Mexico(1)(*) Aetna Internacional Compania 100% Holding Company
de C.V. S en N.C. de C.V.
- ------------------------------------------------------------------------------------------------------------------------------------
AE Five Compania S. de R.L. Mexico(1)(*) Aetna Ninernacional Compania 100% Limited Limitability Company formed
de C.V. S en N.C. de C.V. under Mex. Law for the purpose of
issuing CPOs in Mexico.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(ii) Administradora de Fondos de Pensiones Santa Maria S.A. owns 16%
of Administradora de Fondos Para el Retiro Bancomer, S.A. de C.V.
(jj) Seguros Monterrey Aetna, S.A. owns 34% and Pensiones Bancomer,
S.A. de C.V. owns 33% of Agesores en Promocion Segunomina, S.A.
de C.V.
18
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Chile Seguros Chile(1)(*) Aetna S.A. 98% Casualty Insurance Company
Generales S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Administradora de Chile(1)(*) Aetna S.A. 100% Real Estate Investment Trust
Fondos de Inversion S.A. Management Co.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Chile Seguros Chile(1)(*) Aetna S.A. 100% Life Insurance Company
de Vida S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Pensiones S.A. Chile(1)(*) Aetna S.A. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Credito Hipotecario S.A. Chile(1)(*) Aetna S.A. 100% Mortgage Company
- ------------------------------------------------------------------------------------------------------------------------------------
Cruz-Blanca Isapre, S.A. Chile(1)(*) Aetna S.A. 75% Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International Peru S.A. Peru(1)(*) Aetna S.A. 86%(kk) Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Salud S.A. Chile(1)(*) Aetna S.A. 90% Health Indemnity - Chile
- ------------------------------------------------------------------------------------------------------------------------------------
Administradora de Fondos de Chile(1)(*) Aetna Pensiones S.A. 71% Pension Funds Management Company
Pensiones Santa Maria S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Santa Maria Internacional S.A. Chile(1)(*) Administradora de Fondos de 100% Pension Administration
Pensiones Santa Maria S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Pensiones Peru S.A. Peru(1)(**) Santa Maria Internacional S.A. 66%(ll) Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Administradora de Fondos de Peru(1)(**) Aetna Pensiones Peru S.A. 40%(mm) Pension Funds Management Company
Pensiones Integra S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Wiese Aetna Compania Peru(1)(*) Aetna International Peru S.A. 34% Insurance and Reinsurance
de Seguros S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(kk) Aetna Chile Seguros De Vida S.A. and Aetna Chile Seguros
Generales S.A. have combined ownership of 14%.
(ll) Aetna S.A. owns 34% of this company.
(mm) Aetna Pensiones Peru S.A. owns 40% of this company.
19
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Immobilaria Padre Chile(1)(*) Aetna Credito Hipotecario S.A. 99%(nn) Real Estate Development
Marinano S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Sul America Previdencia Brazil(1)(*) Sul America Aetna Seguros de 100% Pension
Privada Previdencia S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Sul America Servicos Brazil(1)(*) Sul America Aetna Seguros de 100% Health Administrator
Medicos S.A. Previdencia S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Clube Dos Executivos, S.A. Brazil(1)(*) Sul American Aetna Seguros de 100% Life insurance sponsor
Previdencia S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Brasilprev Previdencia Brazil(1)(**) Sul America Aetna Seguros de 22% Pension
Privada S.A. Previdencia S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Brasilsaude Companhia Brazil(1)(*) Sul America Aetna Seguros de 51% Insurance
de Segoros Previdencia S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Management Ontario(1)(*) Aetna Canada Holdings Limited 100% Managed Healthcare
Canada, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Acceptance Ontario(1)(*) Aetna Canada Holdings Limited 100% Provision of Financial Assistance
Corporation Limited to Agents to Assist in Growth
of Business
- ------------------------------------------------------------------------------------------------------------------------------------
Equinox Financial Group Inc. Canada(1)(*) Aetna Canada Holdings Limited 92%(oo) Distributor of Life Insurance,
Financial and Related Products
- ------------------------------------------------------------------------------------------------------------------------------------
2733854 Canada Ltd. Canada(1)(*) Aetna Canada Holdings Limited 70%(pp) Marketing of Life Ins. and Related
Products
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(nn) Aetna S.A. owns 1% of this company.
(oo) Aetna Life Insurance Company of Canada owns 8% of this
corporation.
(pp) Equinox Financial Group, Inc. owns 30% of this corporation.
20
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Life Insurance Company Canada(1)(*) Aetna Canada Holdings Limited 100% Life, Accident and Sickness
of Canada Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
First Canadian Health Canada(1)(**) Aetna Health Management 49% Managed Health Services
Management Corporation, Inc. Canada, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Canadian Corporate Canada(1)(*) Aetna Health Management 75% Managed Health Services
Health Solutions Inc. Canada, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Trillenium Investors Canada(1)(*) Equinox Financial Group Inc. 80% Mutual Funds
Services Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Landex Properties Ltd. British Aetna Life Insurance Company 100% Real Estate Acquisitions
Columbia(1)(*) of Canada
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Benefits Management, Inc. Canada(1)(*) Aetna Life Insurance Company 100% Claims Administration and
of Canada Actuarial Services
- ------------------------------------------------------------------------------------------------------------------------------------
Mount-Batten Properties Limited Ontario(1)(*) Aetna Life Insurance Company 100% Acquisition, Development
of Canada and Management of Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
3158047 Canada Limited Canada(1)(*) Aetna Life Insurance Company 100% Acquisition, Development
of Canada and Management of Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Life Assurance Canada(1)(*) Aetna Life Insurance Company 100% Insurance company
Company of Canada of Canada
- ------------------------------------------------------------------------------------------------------------------------------------
Eclipse Claims Services Inc. Canada(1)(**) Aetna Life Insurance Company 25% Electronic Claims Adjudication
of Canada Services
- ------------------------------------------------------------------------------------------------------------------------------------
PVS Preferred Vision Canada(1)(**) Aetna Benefits Management, 20% Provider of Ophthalmic, Service for
Services Inc. Inc. Four Major Shareholders
- ------------------------------------------------------------------------------------------------------------------------------------
Churchill Office Park Limited Canada(1)(**) Mount-Batten Properties 45% Real Estate Development of
Limited Ottawa Site
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health (N.Z.) Limited New Zealand(1)(**) Aetna International (N.Z) 100% Health Insurance Underwriting
Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance (N.Z.) New Zealand(1)(*) Aetna Health (N.Z.) Limited 100% Group Benefits/Pension Management
Limited
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Human Affairs Limited (N.Z.) New Zealand(1)(*) Aetna Health (N.Z.) Limited 100% Indemnity Health Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
First Health New Zealand(1)(*) Aetna Health (N.Z.) Limited 100% Super Annuitization/Long Term Care
(New Zealand Limited)
- ------------------------------------------------------------------------------------------------------------------------------------
Prime Health Limited New Zealand(1)(*) First Health (New Zealand) 50% Buying and Managing Risk for
Limited Publicly Funded Health Services
and Providing Management Services
and Infrastructure To its
Network of Doctors
- ------------------------------------------------------------------------------------------------------------------------------------
Managed Care New Zealand(1)(*) Human Affairs (NZ) Limited 100% Long Term Care provider
New Zealand Limited
- ------------------------------------------------------------------------------------------------------------------------------------
PLJ Holdings Limited Hong Kong(1)(*) Aetna Investment Management 100% Investment Management & Securities
(F.E.) Holdings Limited Trading
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Management Hong Kong(1)(*) Aetna Investment Management 100% Nominee Services Holding Assets of
(F.E.) Limited (F.E.) Holdings Limited AIM F.E.'s Customers in Street Name
- ------------------------------------------------------------------------------------------------------------------------------------
Kwang HUA Securities Taiwan(1)(***) Aetna Investment Management 20% Securities Investment & Trust
Investment & Trust Co. Ltd. (F.E.) Holdings Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Kwang HUA Securities Investment Taiwan(1)(***) PLJ Holdings Limited 20% Investment Consulting Company
Consultant Co. Ltd.
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Financial DE(1)(*) Aetna U.S. Healthcare Inc. 100% Holding Company
Services, Inc. (PA)
- ------------------------------------------------------------------------------------------------------------------------------------
Primary Holdings, Inc. DE(1)(*) Aetna U.S. Healthcare Inc. 100% Holding Company
(PA)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Management, Inc. DE(1)(*) Aetna U.S. Healthcare Inc. 100% HMO Management Company
(PA)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
22
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NYLCare Health Plans, Inc. DE(1)(*) Aetna U.S. Healthcare Inc. 100% Holding Company
(PA)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare Dental PA(1)(*) Aetna U.S. Healthcare Inc. 100% Dental
Plan, Inc. (PA)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Dental NJ(1)(*) Aetna U.S. Healthcare Inc. 100% Dental
Plan, Inc. (PA)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Dental DE(1)(*) Aetna U.S. Healthcare Inc. 100% Dental
Plan, Inc. (PA)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Health Insurance Company NY(1)(*) Aetna U.S. Healthcare Inc. 100% Accident and Health Insurance
(PA) Company
- ------------------------------------------------------------------------------------------------------------------------------------
Corporate Health PA(1)(*) Aetna U.S. Healthcare Inc. 100% Accident and Health Insurance
Insurance Company (PA) Company
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Managed Care, Inc. MD(1)(*) Aetna U.S. Healthcare Inc. 100% Utilization Review
(PA)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. NJ(1)(*) Aetna U.S. Healthcare Inc. 100% HMO
(PA)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. NY(1)(*) Aetna U.S. Healthcare Inc. 100% HMO
(PA)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. CT(1)(*) Aetna U.S. Healthcare Inc. 100% HMO
(PA)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. MA(1)(*) Aetna U.S. Healthcare Inc. 100% HMO
(PA)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. DE(1)(*) Aetna U.S. Healthcare Inc. 100% HMO
(DE) (PA)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare NH(1)(*) Aetna U.S. Healthcare Inc. 100% HMO
of New Hampshire, Inc. (PA)
- ------------------------------------------------------------------------------------------------------------------------------------
Advent Investments, Inc. DE(1)(*) U.S. Healthcare Financial 100% DE Holding Company
Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Independent Investments, Inc. DE(1)(*) U.S. Healthcare Financial 100% DE Holding Company
Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United States Physicians Care PA(1)(*) U.S. Healthcare Financial 100% Financial Services to Physicians
Systems, Inc. Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
United States Home Health Care PA(1)(*) U.S. Healthcare Financial 100% Inactive - other Medical Services
Systems, Inc. Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Health Aviation Corp. PA(1)(*) U.S. Healthcare Financial 100% Ownership and Operation of
Services, Inc. Airplanes
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Properties, Inc. PA(1)(*) U.S. Healthcare Financial 100% Holding Company for Real Estate
Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Inteli-Health, Inc. DE(1)(*) U.S. Healthcare Financial 98% Software Development
Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
USHC Management Services DE(1)(*) U.S. Healthcare Financial 100% Management and Financial Services
Corporation Services, Inc. to Network Providers
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Advantage, Inc. DE(1)(*) Advent Investments, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Wissahickon Payment DE(1)(*) Advent Investments, Inc. 100% Third Party Administrator
Administrators, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Advent Financial Services, Inc. DE(1)(*) U.S. Healthcare Advantage, 100% Holding Company
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Corporate Health PA(1)(*) Advent Financial Services, 100% Third Party Administrator for
Administrators, Inc. Inc. Self-Insured Plans
- ------------------------------------------------------------------------------------------------------------------------------------
Managed Care Coordinators, Inc. DE(1)(*) Advent Financial Services, 100% Evaluation and Administration of
Inc. Multiple Health Plans
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Phoenix Corporation PA(1)(*) Advent Financial Services, 100% Shell
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Quality Algorithms, Inc. PA(1)(*) Advent Financial Services, 100% Services to Analyze the Quality
Inc. and Effectiveness of Medical Care
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Workers Comp Advantage, Inc. PA(1)(*) Advent Financial Services, 100% Case Management and other Medical
Inc. Management Services for Employers
on Costs Related to Workers'
Compensation Claims
- ------------------------------------------------------------------------------------------------------------------------------------
Primary Investments, Inc. DE(1)(*) Primary Holdings, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
United States Health Care PA(1)(*) Primary Investments, Inc. 100% HMO
Systems of Pennsylvania, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare Inc. VA(1)(*) Primary Investments, Inc. 26%(qq) HMO
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. OH(1)(*) Primary Investments, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare of the NC(1)(*) Primary Investments, Inc. 100% HMO
Carolinas, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Chickering Claims MA(1)(**) Primary Investments, Inc. 47% Third Party Claims
Administrators, Inc. Administration Business
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare GA(1)(*) Primary Investments, Inc. 63% HMO
of Georgia, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Advent HMO Corporation ND(1)(*) Primary Investments, Inc. 100% Inactive
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare AL(1)(*) Primary Investments, Inc. 100% HMO
of Alabama, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Health Insurance Company CT(1)(*) Primary Investments, Inc. 100% Accident and Health
Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
AUSHC Inc. AL(1)(*) Primary Investments, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(qq) Aetna Health Management, Inc. owns 74% of Aetna U.S. Healthcare,
Inc. (VA)
25
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna U.S. Healthcare, Inc. MI(1)(*) Primary Investments, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. OK(1)(*) Primary Investments, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. MO(1)(*) Primary Investments, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare DE(1)(*) Primary Investments, Inc. 100% Holding Company
Holdings, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare Inc. WA(1)(*) Primary Investments, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. CO(1)(*) Aetna U.S. Healthcare 100% HMO
Holdings, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. OH(1)(*) Aetna Health Management, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare Dental CA(1)(*) Aetna Health Management, Inc. 100% Provide Pre-Paid Dental Services
Plan of California Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. FL(1)(*) Aetna Health Management, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Informed Health, Inc. DE(1)(*) Aetna Health Management, Inc. 100% Sponsors Health Information
Service
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. TN(1)(*) Aetna Health Management, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare GA(1)(*) Aetna Health Management, Inc. 37%(rr) HMO
of Georgia, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Dental Care NJ(1)(*) Aetna Health Management, Inc. 100% Dental Care
of New Jersey, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(rr) Primary Investments, Inc. owns 63% of Aetna U.S. Healthcare of
Georgia, Inc.
26
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AUSHC Holdings, Inc. DE(1)(*) Aetna Health Management, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. VA(1)(*) Aetna Health Management, Inc. 74%(ss) HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of the NC(1)(*) Aetna Health Management, Inc. 100% HMO
Carolinas, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. AZ(1)(*) Aetna Health Management, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Dental Care TX(1)(*) Aetna Health Management, Inc. 100% HMO offering single health
of Texas, Inc. service plan- dental
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare IL(1)(*) Aetna Health Management, Inc. 100% HMO
of Illinois, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Dental Care KY(1)(*) Aetna Health Management, Inc. 100% Dental Plan Organization
of Kentucky, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of Central PA(1)(*) Aetna Health Management, Inc. 100% HMO
and Eastern Pennsylvania, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. TX(1)(*) Aetna Health Management, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. LA(1)(*) Aetna Health Management, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
MED Southwest, Inc. TX(1)(*) Aetna Health Management, Inc. 55% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Freedom Choice, Inc. PA(1)(*) Aetna Health Plans of Central 100% Third Party Administrator
and Eastern Pennsylvania, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Government CA(1)(*) Aetna Health Management, Inc. 100% Sponsors Champus Business
Health Plans, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(ss) Primary Investments, Inc. owns 26% of Aetna U.S. Healthcare, Inc.
(VA)
27
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna U.S. Healthcare of CA(1)(*) Aetna Health Management, Inc. 100% HMO
California, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans NY(1)(*) AUSHC Holdings, Inc. 100% HMO
of New York, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans NJ(1)(*) AUSHC Holdings, Inc. 100% HMO
of New Jersey, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Southwest Physicians Life TX(1)(*) MED Southwest, Inc. 100% Life and Health Insurer
Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare of North TX(1)(*) MED Southwest, Inc. 100% HMO
Texas Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of the OK(1)(*) NYLCare Health Plans, Inc. 100% Holding Company
Southwest (Oklahoma), Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Lonestar Holding Co. DE(1)(*) NYLCare Health Plans, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare of Texas, Inc. TX(1)(*) NYLCare Health Plans, Inc. 100% Management Company for PPO
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of LA(1)(*) NYLCare Health Plans, Inc. 100% HMO
Louisiana, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of PA(1)(*) NYLCare Health Plans, Inc. 100% HMO
Pennsylvania, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
One Liberty Plaza DE(1)(*) NYLCare Health Plans, Inc. 100% Special Purpose Funding Entity
Holdings, Inc. for industrial Development Agency
Transaction
- ------------------------------------------------------------------------------------------------------------------------------------
Benefit Panel Services, Inc. CA(1)(*) NYLCare Health Plans, Inc. 50% Manages HMOs
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Dental Plans of the TX(1)(*) NYLCare Health Plans, Inc. 100% Dental HMO
Southwest, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sanus Preferred Services of IL(1)(*) NYLCare Health Plans, Inc. 100% PPO
Illinois, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
28
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sanus Preferred Providers CA(1)(*) NYLCare Health Plans, Inc. 100% PPO
West, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sanus Northeast, Inc. DE(1)(*) NYLCare Health Plans, Inc. 100% Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of the TX(1)(*) NYLCare Health Plans, Inc. 100% HMO
Southwest, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of the IL(1)(*) NYLCare Health Plans, Inc. 100% HMO
Midwest, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare of New England, Inc. DE(1)(*) NYLCare Health Plans, Inc. 100% Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of NY(1)(*) NYLCare Health Plans, Inc. 100% HMO
New York, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of NJ(1)(*) NYLCare Health Plans, Inc. 100% HMO
New Jersey, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of CT(1)(*) NYLCare Health Plans, Inc. 100% HMO
Connecticut, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare of Connecticut, Inc. CT(1)(*) NYLCare Health Plans, Inc. 100% PPO
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Preferred MD(1)(*) NYLCare Health Plans, Inc. 100% PPO
Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sanus of New York and NY(1)(*) NYLCare Health Plans, Inc. 100% PPO
New Jersey, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sanus Dental Plan of N.J., Inc. NJ(1)(*) NYLCare Health Plans, Inc. 100% Dental HMO
- ------------------------------------------------------------------------------------------------------------------------------------
The Ethix Corporation DE(1)(*) NYLCare Health Plans, Inc. 100% Holding Company of PPO Network
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna US Healthcare, Inc. ME(1)(*) NYLCare Health Plans, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York Life and Health DE(1)(*) NYLCare Health Plans, Inc. 100% Reinsurance
Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of the MD(1)(*) NYLCare Health Plans, Inc. 80%(tt) HMO
Mid-Atlantic, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Physicians Health Services, MD(1)(*) NYLCare Health Plans of the 100% Physicians Independent Practice
Foundation, Inc. Mid-Atlantic, Inc. Association
- ------------------------------------------------------------------------------------------------------------------------------------
Lone star Health Plan, Inc. TX(1)(*) Lonestar Holding Co. 90%(uu) Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Passport PPO of the TX(1)(*) NYLCare of Texas, Inc. 100% PPO
Southwest, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
BPS Health Plan Administrators CA(1)(*) Benefit Panel Services, Inc. 100% Third Party Administrator
- ------------------------------------------------------------------------------------------------------------------------------------
VivaHealth, Incorporated CA(1)(*) Benefit Panel Services, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of the TX(1)(*) Lonestar Health Plan, Inc. 100% HMO
Gulf Coast, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Ethix Northwest, Inc. WA(1)(*) The Ethix Corporation 100% PPO
- ------------------------------------------------------------------------------------------------------------------------------------
Ethix Northwest Public WA(1)(*) The Ethix Corporation 100% Managed Care Services to Medicaid
Services, Inc. Recipients
- ------------------------------------------------------------------------------------------------------------------------------------
Ethix Pacific, Inc. OR(1)(*) The Ethix Corporation 100% PPO
- ------------------------------------------------------------------------------------------------------------------------------------
Ethix Risk Management, Inc. OR(1)(*) The Ethix Corporation 100% Inactive Shell Corporation
- ------------------------------------------------------------------------------------------------------------------------------------
Ethix Midlands, Inc. DE(1)(*) The Ethix Corporation 100% PPO
- ------------------------------------------------------------------------------------------------------------------------------------
Ethix Great Lakes, Inc. MI(1)(*) The Ethix Corporation 100% PPO
- ------------------------------------------------------------------------------------------------------------------------------------
Ethix Mid-Rivers, Inc. MO(1)(*) The Ethix Corporation 100% PPO
- ------------------------------------------------------------------------------------------------------------------------------------
Ethix Mid-Atlantic, Inc. PA(1)(*) The Ethix Corporation 100% PPO
- ------------------------------------------------------------------------------------------------------------------------------------
Ethix Southwest, Inc. TX(1)(*) The Ethix Corporation 100% PPO
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(tt) Physicians Health Services Foundation, Inc. owns 20% of this
company.
(uu) NYLCare Health Plans, Inc. owns 10% of this company.
30
<PAGE>
December 31, 1998
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna U.S. Healthcare of WA(1)(*) Ethix Northwest, Inc. 100% HMO
Washington, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Item 25. Indemnification
- ------------------------
Article 5.3 of the Registrant's Amendment to Declaration of Trust,
incorporated herein by reference to Exhibit (a.1) to the Registrant's
Registration Statement on Form N-1A (File No. 33-12723), as filed
electronically on September 30, 1998, provides indemnification for the
Registrant's trustees and officers. In addition, the Registrant's
trustees and officers are covered under a directors and officers errors
and omissions liability insurance policy issued by Gulf Insurance
Company which expires on October 1, 1999.
Section XI.B of the Administrative Services Agreement, incorporated
herein as Exhibit (h.1) to the Registrant's Registration Statement on
Form N-1A (File No. 33-12723), as filed electronically on September 30,
1998, provides for indemnification of the Administrator.
Item 26. Business and Other Connections of Investment Adviser
- -------------------------------------------------------------
The investment adviser, Aeltus Investment Management, Inc. ("Aeltus"),
is registered as an investment adviser with the Securities and Exchange
Commission. In addition to serving as the investment adviser and
administrator for the Registrant, Aeltus acts as investment adviser and
administrator for Aetna Income Shares, Aetna Variable Fund, Aetna
Variable Encore Fund, Aetna Balanced VP, Inc., Aetna Generation
Portfolios, Inc., Aetna Variable Portfolios, Inc., and Aetna Series
Fund, Inc. (all management investment companies registered under the
Investment Company Act of 1940 (the "1940 Act")). It also acts as
investment adviser to certain private accounts.
The following table summarizes the business connections of the
directors and principal officers of the investment adviser.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Name Positions and Offices Other Principal Position(s) Held
- ---- with Investment Adviser Since Oct. 31, 1996/Addresses*
----------------------- ------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
John Y. Kim Director, President, Chief Director (February 1995--March 1998) -- Aetna Life Insurance and Annuity
Executive Officer, Chief Company; Senior Vice President (since September 1994) -- Aetna Life Insurance
Investment Officer and Annuity Company.
J. Scott Fox Director, Managing Vice President (since April 1997) -- Aetna Retirement Services, Inc.;
Director, Chief Operating Director and Senior Vice President (March 1997 - February 1998)
Officer, Chief Financial -- Aetna Life Insurance and Annuity Company; Managing Director, Chief
Officer Operating Officer, Chief Financial Officer, Treasurer (April 1994 - March
1997) -- Aeltus Investment Management, Inc.
Thomas J. McInerney Director President (since August 1997) -- Aetna Retirement Services, Inc.; Director
and President (since September 1997) -- Aetna Life Insurance and Annuity
Company; Executive Vice President (since August 1997) -- Aetna Inc.; Vice
President, Strategy (March 1997 - August 1997) -- Aetna Inc.; Vice
President, Marketing and Sales (December 1996 - March 1997) -- Aetna U.S.
Healthcare; Vice President, National Accounts (April 1996 - December 1996)
-- Aetna U.S. Healthcare.
Catherine H. Smith Director Chief Financial Officer (since February 1998) -- Aetna Retirement Services,
Inc.; Director, Senior Vice President and Chief Financial Officer (since
February 1998) -- Aetna Life Insurance and Annuity Company; Vice President,
Strategy, Finance and Administration, Financial Relations (September 1996 -
February 1998) -- Aetna Inc.
Lennart A. Carlson Managing Director, Fixed Managing Director (since January 1996) - Aeltus Trust Company.
Income Investments
Stephanie A. DeSisto Vice President
<PAGE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Name Positions and Offices Other Principal Position(s) Held
- ---- with Investment Adviser Since Oct. 31, 1996/Addresses*
----------------------- ------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Amy R. Doberman Vice President, General Counsel (since December 1996) -- Aetna Life Insurance and Annuity Company;
Counsel and Secretary Attorney (March 1990 to November 1996) -- Securities and Exchange Commission.
Steven C. Huber Managing Director, Fixed Managing Director (since August 1996) -- Aeltus Trust Company.
Income Investments
Brian K. Kawakami Vice President, Chief Chief Compliance Officer & Director (since January 1996) -- Aeltus Trust
Compliance Officer Company; Chief Compliance Officer (since August 1993) -- Aeltus Capital, Inc.
Neil Kochen Managing Director, Managing Director (since April 1996) -- Aeltus Trust Company; Managing
Product Development Director (since August 1996) -- Aeltus Capital, Inc.
Frank Litwin Managing Director, Vice President, Strategic Marketing (April, 1992 - August, 1997) -- Fidelity
Retail Marketing and Investments Institutional Services Company.
Sales
Kevin M. Means Managing Director, Managing Director (since August 1996) -- Aeltus Trust Company.
Equity Investments
L. Charles Meythaler Managing Director, Director (since July 1997) -- Aeltus Trust Company; Managing Director (since
Institutional Marketing June 1997) -- Aeltus Trust Company; President (June 1993 - April 1997) -- New
and Sales England Investment Association.
Jeanne Wong-Boehm Managing Director, Fixed Managing Director (since August 1996) -- Aeltus Trust Company.
Income Investments
</TABLE>
*Except with respect to Mr. McInerney and Ms. Smith, the principal business
address of each person named is 10 State House Square, Hartford,
Connecticut 06103-3602. The address of Mr. McInerney and Ms. Smith is 151
Farmington Avenue, Hartford, Connecticut 06156.
Item 27. Principal Underwriters
- -------------------------------
(a) In addition to serving as the principal underwriter for the
Registrant, Aetna also acts as the principal underwriter for Aetna
Income Shares, Aetna Variable Fund, Aetna Variable Encore Fund,
Aetna Balanced VP, Inc., Aetna Variable Portfolios, Inc. and Aetna
Generation
<PAGE>
Portfolios, Inc. and as investment adviser, principal underwriter and
administrator for Portfolio Partners, Inc. (all management
investment companies registered under the 1940 Act). Additionally,
Aetna acts as the principal underwriter and depositor for Variable
Annuity Account B of Aetna, Variable Annuity Account C of Aetna,
Variable Annuity Account G of Aetna, and Variable Life Account B of
Aetna (separate accounts of Aetna registered as unit investment
trusts under the 1940 Act). Aetna is also the principal underwriter
for Variable Annuity Account I of Aetna Insurance Company of
America ("AICA") (a separate account of AICA registered as a unit
investment trust under the 1940 Act).
(b) The following are the directors and principal officers of the Underwriter:
<TABLE>
<CAPTION>
Name and Principal Positions and Offices Positions and Offices
Business Address* with Principal Underwriter with Registrant
- ----------------- -------------------------- ---------------
<S> <C> <C>
Thomas J. McInerney Director and President None
Shaun P. Mathews Director and Senior Vice President Trustee
Catherine H. Smith Director, Senior Vice President and Chief Financial Officer None
Robert D. Friedhoff Senior Vice President None
Steven A. Haxton Senior Vice President None
John Y. Kim Senior Vice President Trustee
Deborah Koltenuk Vice President, Treasurer and Corporate Controller None
Therese Squillacote Vice President and Chief Compliance Officer None
Kirk P. Wickman Vice President, General Counsel and Corporate Secretary None
</TABLE>
*Except with respect to Mr. Kim, the principal business address of all
directors and officers listed is 151 Farmington Avenue, Hartford,
Connecticut 06156. Mr. Kim's address is 10 State House Square, Hartford,
Connecticut 06103-3602.
(c) Not applicable
Item 28. Location of Accounts and Records
- -----------------------------------------
As required by Section 31(a) of the 1940 Act and the rules thereunder, the
Registrant and its investment adviser, Aeltus, maintain physical possession
of each account, book or other document, at 151 Farmington Avenue,
Hartford, Connecticut 06156 and 10 State House Square, Hartford,
Connecticut 06103-3602, respectively.
<PAGE>
Item 29. Management Services
- ----------------------------
Not applicable.
Item 30. Undertakings
- ---------------------
Not applicable.
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Act and the Investment Company
Act, Aetna GET Fund has duly caused this registration statement to be signed on
its behalf by the undersigned, duly authorized, in the City of Hartford, and
State of Connecticut, on the 10th day of March, 1999.
AETNA GET FUND
--------------
Registrant
By J. Scott Fox*
-------------------
J. Scott Fox
President
Pursuant to the requirements of the Securities Act, this registration statement
has been signed below by the following persons in the capacities and on the
date(s) indicated.
<TABLE>
<CAPTION>
Signature Title Date
- --------- ----- ----
<S> <C> <C>
J. Scott Fox* President and Trustee )
- ------------------------------------- (Principal Executive Officer) )
J. Scott Fox )
)
Albert E. DePrince, Jr.* Trustee )
- ------------------------------------- )
Albert E. DePrince, Jr. )
)
Maria T. Fighetti* Trustee )
- ------------------------------------- )
Maria T. Fighetti )
) March
David L. Grove* Trustee ) 10, 1999
- ------------------------------------- )
David L. Grove )
)
John Y. Kim* Trustee )
- ------------------------------------- )
John Y. Kim )
)
Sidney Koch* Trustee )
- ------------------------------------- )
Sidney Koch )
)
Shaun P. Mathews* Trustee )
- ------------------------------------- )
Shaun P. Mathews )
)
Corine T. Norgaard* Trustee )
- ------------------------------------- )
Corine T. Norgaard )
)
<PAGE>
Richard G. Scheide* Trustee )
- ------------------------------------- )
Richard G. Scheide )
)
Stephanie A. DeSisto* Treasurer and Chief Financial Officer )
- ------------------------------------- (Principal Financial and Accounting Officer) )
Stephanie A. DeSisto )
</TABLE>
By: /s/ Amy R. Doberman
------------------------------
*Amy R. Doberman
Attorney-in-Fact
*Executed pursuant to Power of Attorney dated November 6, 1998 and filed herein
as exhibit (p.1).
<PAGE>
Aetna GET Fund
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Exhibit Page
- ----------- ------- ----
<S> <C> <C>
99-(a.2) Form of Amendment to Declaration of Trust (October 28, 1993) ----------------------------
99-(i) Opinion and Consent of Counsel ----------------------------
99-(p.1) Power of Attorney (November 6, 1998) ----------------------------
</TABLE>
FORM OF
AMENDMENT TO DECLARATION OF TRUST OF
AETNA GUARANTEED EQUITY TRUST
Changing Name of Trust and Establishing and
Designating a New Series of Beneficial Interests
The undersigned, being a majority of the duly elected and qualified
Trustees of Aetna Guaranteed Equity Trust, a Massachusetts business trust (the
"Trust"), acting pursuant to Sections 1.1, 6.2 and 11.3 of the Declaration of
Trust dated March 9, 1987, as amended (the "Declaration of Trust"), hereby
change the name of the Fund to "Aetna GET Fund" and divide the shares of
beneficial interest of the Trust into and establish a separate series (the
"Fund") distinct from shares of the Trust previously issued but no longer
outstanding, with the Fund to have the following special and relative rights:
1. The Fund shall be designated as follows:
Series B
2. The Fund shall be authorized to hold cash and invest in securities
and instruments and use investment techniques as described in the Trust's
registration statement under the Securities Act of 1933, as amended from time to
time. Each share of beneficial interest of the Fund ("share") shall be
redeemable as provided in the Declaration of Trust, shall be entitled to one
vote (or fraction thereof in respect of a fractional share) on matters on which
shares of the Fund shall be entitled to vote and shall represent a pro rata
beneficial interest in the assets allocated to the Fund. The proceeds of sales
of shares of the Fund, together with any income and gain thereon, less any
diminution or expenses thereof, shall irrevocably belong to the Fund, unless
otherwise required by law. Each share of the Fund shall be entitled to receive
its pro rata share of net assets of the Fund upon its liquidation.
3. Shareholders of the Fund shall vote separately as a class on any
matter to the extent required by, and any matter shall be deemed to have been
effectively acted upon with respect to the Fund as provided in, Rule 18f-2 under
the Investment Company Act of 1940, as amended, as from time to time in effect,
or any successor rule and in the Declaration of Trust.
4. The Trustees (including any successor Trustees) shall have the right
at any time and from time to time to reallocate assets and expenses or to change
the designation of any Fund now or hereafter created, or to otherwise change the
special and relative rights of any such Fund provided that such change shall not
adversely affect the rights of shareholders of a Fund.
<PAGE>
The foregoing shall be effective upon execution.
- -------------------------------------------------------------
Shaun P. Mathews, as Trustee and not individually
- -------------------------------------------------------------
David L. Grove, as Trustee and not individually
- -------------------------------------------------------------
Morton Ehrlich, as Trustee and not individually
- -------------------------------------------------------------
Corine T. Norgaard, as Trustee and not individually
Dated: October _____, 1993
Amy R. Doberman
Counsel
March 10, 1999 Aetna GET Fund
(860) 275-2032
Fax: (860) 275-2158
U.S. Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Aetna GET Fund
Post-Effective Amendment No. 14 to
Registration Statement on Form N-1A
(File No. 33-12723 and 811-5062)
Dear Sir or Madam:
The undersigned serves as counsel to Aetna GET Fund a Massachusetts business
trust (the "Fund"). It is my understanding that the Fund has registered an
indefinite number of shares of beneficial interest under the Securities Act of
1933 (the "1933 Act") pursuant to Rule 24f-2 under the Investment Company Act of
1940 (the "1940 Act").
Insofar as it relates or pertains to the Fund, I have reviewed the prospectus
and the Fund's Registration Statement on Form N-1A, as amended to the date
hereof, filed with the Securities and Exchange Commission under the 1933 Act and
the 1940 Act, pursuant to which the Shares will be sold (the "Registration
Statement"). I have also examined originals or copies, certified or otherwise
identified to my satisfaction, of such documents and other instruments I have
deemed necessary or appropriate for the purpose of this opinion. For purposes of
such examination, I have assumed the genuineness of all signatures on original
documents and the conformity to the original of all copies.
I am admitted to practice law in Connecticut, Maryland and the District of
Columbia, and do not purport to be an expert on the laws of any other state.
Based upon the foregoing, and assuming the securities are issued and sold in
accordance with the provisions of the Fund's Declaration of Trust and the
Registration Statement, I am of the opinion that the securities will when sold
be legally issued, fully paid and nonassessable.
I consent to the filing of this opinion as an exhibit to the Registration
Statement.
Sincerely,
/s/ Amy R. Doberman
- -------------------
Amy R. Doberman
Counsel
POWER OF ATTORNEY
We, the undersigned trustees and officers of Aetna GET Fund, Aetna Income
Shares, Aetna Variable Fund and Aetna Variable Encore Fund, hereby severally
constitute and appoint Amy R. Doberman, Daniel E. Burton and Michael J. Gioffre,
and each of them individually, our true and lawful attorneys, with full power to
them and each of them to sign for us, and in our names and in the capacities
indicated below, any and all amendments to the Registration Statements listed
below filed with the Securities and Exchange Commission under the Securities Act
of 1933 and under the Investment Company Act of 1940:
Registration Statements filed under the Securities Act of 1933:
Aetna GET Fund 33-12723
Aetna Income Shares 2-47232
Aetna Variable Fund 2-51739
Aetna Variable Encore Fund 2-53038
Registration Statements filed under the Investment Company Act of 1940:
Aetna GET Fund 811-5062
Aetna Income Shares 811-2361
Aetna Variable Fund 811-2514
Aetna Variable Encore Fund 811-2565
hereby ratifying and confirming on this 6th day of November, 1998, our
signatures as they may be signed by our said attorneys to any and all amendments
to such Registration Statements.
<TABLE>
<CAPTION>
Signature/Title Signature/Title
--------------- ---------------
<S> <C>
/s/ J. Scott Fox /s/ Stephanie A. DeSisto
- ---------------------------------------- ----------------------------------------------------
J. Scott Fox Stephanie A. DeSisto
President and Trustee Treasurer and Chief Financial Officer
(Principal Executive Officer) (Principal Financial and Accounting Officer)
/s/ Albert E. DePrince, Jr. /s/ Sidney Koch
- ---------------------------------------- ----------------------------------------------------
Albert E. DePrince, Jr., Trustee Sidney Koch, Trustee
/s/ Maria T. Fighetti /s/ Shaun P. Mathews
- ---------------------------------------- ----------------------------------------------------
Maria T. Fighetti, Trustee Shaun P. Mathews, Trustee
/s/ David L. Grove /s/ Corine T. Norgaard
- ---------------------------------------- ----------------------------------------------------
David L. Grove, Trustee Corine T. Norgaard, Trustee
/s/ John Y. Kim /s/ Richard G. Scheide
- ----------------------------------------
----------------------------------------------------
John Y. Kim, Trustee Richard G. Scheide, Trustee
</TABLE>
