Supplement Dated October 1, 1996
to the CIGNA Variable Products Group Prospectus
Dated May 1, 1996
Effective January 1, 1997, the voluntary expense limitation for
the CIGNA Variable Products S&P 500 Index Fund will be reduced
from .60% to .25% of the Fund's Average Daily Net Asset Value.
Effective January 1, 1997 the table of Annual Fund Operating
Expenses and the Example that appears after the table shall state
as follows:
ANNUAL FUND OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
S&P
MONEY 500
MARKET INDEX
- -----------------------------------------------------------------
Management Fees
Investment Management Fees/1/ ................ .35% .25%
12b-1 Fees..................................... None None
All Other Operating Expenses
(After Reimbursement)/1/...................... .15% None
Total Fund Operating Expenses
(Reflects expense limitation. See Footnotes/1/
and/2/ below)................................. .50% .25%
- -------
/1/ For a more complete description of the Management Fees,
see "Management of the Trust." CIGNA Investments, Inc.
("CII"), the Funds' investment adviser, has voluntarily
agreed, as to each Fund, to reimburse such portion of its
management fee as is necessary to cause the annual Total
Fund Operating Expenses of each Fund not to exceed the
following percentages of each of the Fund's average daily
net asset value:
Money Market.............. .50%
S&P 500 Index............. .25%
If this reimbursement is not sufficient to cause the Total
Fund Operating Expenses of any Fund not to exceed the
applicable percentage of average daily net asset value, CII
has agreed to pay such other expenses of the applicable
Fund as is necessary to keep Total Fund Operating Expenses
from exceeding the applicable percentage. These
arrangements will continue in effect until December 31,
1997, and afterwards to the extent described in the Funds'
then current prospectus. To the extent management fees are
reimbursed by CII, or expenses of a Fund are paid by CII,
the total return to shareholders will increase. Total
return to shareholders will decrease to the extent
management fees are no longer reimbursed or expenses of a
Fund are no longer paid.
/2/ Total Fund Operating Expenses for the S&P 500 Index Fund
for 1995, absent expense reimbursements, were .73% of this
Fund's average daily net asset value. Total Fund Operating
Expenses for the Money Market Fund for the period from
March 1, 1996 (commencement of operations) to June 30,
1996, absent expense reimbursements, were .49% (1.47%
annualized) of this Fund's average daily net asset value.
Other Operating Expenses and Total Fund Operating Expenses
reflect the voluntary expense limitation effective January
1, 1997. As to the Money Market Fund, Other Operating
Expenses are based on estimated amounts for the current
fiscal year. Other Operating Expenses include all expenses
not specifically assumed by CII.
EXAMPLE:
The following example illustrates the expenses that you would pay
on a $1,000 investment over various time periods assuming (1) a
5% annual rate of return, and (2) redemption at the end of each
time period. The Funds charge no redemption fees of any kind.
S&P
MONEY 500
MARKET INDEX
1 Year ................................... $ 5 $ 3
3 Years ................................... $16 $ 8
5 Years ................................... $-- $14
10 Years ................................... $-- $32
The purpose of the Expense Table is to assist the investor in
understanding the various costs and expenses that an investor
will bear directly or indirectly. For the purpose of the example,
assume reinvestment of all dividends and distributions. THE
EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN
THOSE SHOWN. For a more complete description of the Management
Fee, see "Management of the Trust." The expense information for
CIGNA Variable Products S&P 500 Index Fund in the above table has
been restated to reflect voluntary expense limitations effective
January 1, 1997. For CIGNA Variable Products Money Market Fund,
Other Operating Expenses are based on estimated amounts for the
current fiscal year.
Effective January 1, 1997, the first complete sentence on page 16
of the prospectus shall state as follows: CII has voluntarily
agreed to reimburse the Funds to the extent that the annual
operating expenses (excluding interest, taxes, amortized
organizational expenses, transaction costs in acquiring and
disposing of portfolio securities and extraordinary expenses) of
a Fund exceed a percentage of the value of the relevant Fund's
average daily net assets, as follows: CIGNA Variable Products
S&P 500 Index Fund - 0.25% and CIGNA Variable Products Money
Market Fund - 0.50%.
