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[CIGNA TREE LOGO APPEARS HERE]
CIGNA VARIABLE PRODUCTS
S&P 500 INDEX FUND
Annual Report
December 31, 1996
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CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND MANAGEMENT'S DISCUSSION AND ANALYSIS
(Unaudited) 1
During 1996, the perceived pace of economic growth within the United States
dominated investors' thinking. Expectations during the first half of the year
were of excessive growth, wage/price acceleration and consequent Federal Reserve
tightening. In the second half, investors anticipated subdued growth, benign
inflation and accommodative monetary actions.
The fourth quarter proved to be the strongest for 1996. Pre-election jitters
that had previously held the market at bay were gradually overcome by evidence
of a slowing economy and lower rates. Post-election optimism was reflected in
large inflows to domestic equity funds; in turn, this influx quickly translated
into purchases of large cap stocks. As a result, November marked the highest
single monthly return to the S&P 500 in nearly five years.
For the 12-month period ending December 31, 1996, CIGNA Variable Products S&P
500 Index Fund's return after expenses was 22.48%, compared with 22.96% for the
S&P 500. By contrast, the average return for general domestic equity funds,
according to Lipper Analytical Services, Inc., was 19.47%.
During the fourth quarter, returns for value stocks within the Index (9.47%
for the quarter, 21.99% for the year) finally began to outpace those of growth
stocks (7.27% for the quarter, 23.77% for the year). This perhaps reflected a
growing uneasiness with the market's ability to maintain current levels. As in
1995, large capitalization stocks served to increase participation efficiency in
market advances. As a result, the S&P 500 once again outperformed the S&P MidCap
and S&P SmallCap indices, which on the year returned 19.20% and 21.32%,
respectively. Leading industry groups in terms of returns were Oil & Gas (104%),
Shoes (65%), Semiconductors (57%) and Personal Loans (50%). Big losers included
Trucking (-32%), Broadcast/Media (-18%), Machines (-18%) and Steel (-12%).
We anticipate a more volatile market in 1997. Investors will continue to give
a wide range of interpretations to the perceived pace of economic growth.
History would argue against a third consecutive year of significant returns for
the S&P 500. Yet an essentially sound economy - as evidenced by mild inflation,
improving corporate operation efficiencies and continued efforts to control
costs - may enhance the potential for reasonable results.
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GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT (Unaudited)
1/1/87 - 12/31/96
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AVERAGE ANNUAL RETURN
1 Year 5 Year 10 Year
12/31/96 22.48% 12.47% 13.40%
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CIGNA Variable S&P 500
Point of Products S&P Index
Measurement 500 Index Fund Total Return
----------- -------------- ------------
1/1/87 $10,000 $10,000
12/31/87 $10,390 $14,135
12/31/88 $11,464 $12,263
12/31/89 $14,814 $16,144
12/31/90 $14,223 $15,642
12/31/91 $19,550 $20,398
12/31/92 $20,251 $21,952
12/31/93 $20,852 $24,159
12/31/94 $20,992 $24,466
12/31/95 $28,720 $33,661
12/31/96 $35,177 $41,389
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CIGNA Variable Products S&P 500 Index Fund's figures are historical and reflect
reinvestment of all dividends and capital gains distributions and changes in
the net asset value. The Fund does not change a sales load, but may be used
with variable annuities that contain other charges which would affect the
ultimate return to an investor. The Fund's investment return and principal
value will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost. Past performance cannot guarantee
comparable future results. The Fund's performance has been compared with the
total return performance for the Standard & Poor's Composite Index of 500 Stocks
(S&P 500). This index is a group of unmanaged securities widely regarded by
investors to be representative of the stock market in general. An investment
cannot be made in the index. Index results do not reflect brokerage charges or
other investment expenses. As of November 1993, the Fund changed its investment
approach from active management to an index method which attempts to replicate
the total return performance of the S&P 500, after Fund expenses.
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CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND INVESTMENTS IN SECURITIES December
31, 1996 2
NUMBER OF MARKET
SHARES VALUE
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COMMON STOCKS - 99.5%
General Electric Co. 21,000 $ 2,076,375
Coca-Cola Co. 31,600 1,662,950
Exxon Corp. 15,600 1,528,800
Intel Corp. 10,300 1,348,656
Microsoft Corp.* 15,000 1,239,375
Merck & Co., Inc. 15,500 1,228,375
Philip Morris Companies, Inc. 10,300 1,160,038
Royal Dutch Petroleum Co. 6,700 1,144,025
International Business Machines Corp. 6,600 996,600
Procter & Gamble Co. 8,600 924,500
A T & T Corp. 20,100 874,350
Johnson & Johnson 16,800 835,800
Bristol-Myers Squibb Co. 6,400 696,000
Pfizer, Inc. 8,000 663,000
Wal-Mart Stores, Inc. 28,900 661,088
du Pont (E.I.) de Nemours & Co. 7,000 660,625
American International Group, Inc. 5,950 644,088
Hewlett-Packard Co. 12,800 643,200
Citicorp 6,100 628,300
Mobil Corp. 5,000 611,250
Disney ( Walt) Co. 8,500 591,813
PepsiCo, Inc. 19,800 579,150
GTE Corp. 12,200 555,100
Chevron Corp. 8,200 533,000
General Motors Corp. 9,400 524,050
Federal National Mortgage Association 13,700 510,325
Cisco Systems, Inc.* 8,000 509,000
Amoco Corp. 6,300 507,150
BellSouth Corp. 12,500 504,688
Lilly (Eli) & Co. 6,900 503,700
Abbott Laboratories 9,900 502,425
Chase Manhattan Corp. 5,492 490,161
Boeing Company 4,413 469,433
Ford Motor Co. 14,700 468,563
American Home Products Corp. 7,800 457,275
Motorola, Inc. 7,400 454,175
BankAmerica Corp. 4,500 448,875
Minnesota Mining and Manufacturing Co. 5,300 439,237
NUMBER OF MARKET
SHARES VALUE
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Gillette Co. 5,600 $ 435,400
Ameritech Corp. 7,000 424,375
SBC Communications, Inc. 7,700 398,475
McDonald's Corp. 8,800 398,200
Anheuser-Busch Companies, Inc. 9,400 376,000
Lucent Technologies, Inc. 7,884 364,635
NationsBank Corp. 3,700 361,675
Travelers Group, Inc. 7,893 358,145
Bell Atlantic Corp. 5,500 356,125
Unilever NV 2,000 350,500
Eastman Kodak Co. 4,300 345,075
American Express Company 6,100 344,650
Columbia/HCA Healthcare Corp. 8,400 342,300
Oracle Systems Corp.* 8,175 341,306
Kimberly-Clark Corp. 3,516 334,899
Allstate Corp. 5,598 323,984
Texaco, Inc. 3,300 323,812
Chrysler Corp. 9,600 316,800
Wells Fargo & Co. 1,166 314,529
Home Depot, Inc. 6,000 300,750
Schlumberger Ltd. 3,000 299,625
Schering-Plough Corp. 4,600 297,850
Monsanto Company 7,500 291,563
MCI Communications Corp. 8,533 278,922
Emerson Electric Co. 2,800 270,900
First Union Corp. 3,620 267,880
Time Warner, Inc. 7,100 266,250
Atlantic Richfield Co. 2,000 265,000
NYNEX Corp. 5,400 259,875
Dow Chemical Co. 3,300 258,638
Warner-Lambert Co. 3,400 255,000
Federal Home Loan Mortgage Corp. 2,300 253,288
Pharmacia & Upjohn, Inc. 6,310 250,034
Campbell Soup Company 3,100 248,775
Banc One Corp. 5,744 246,992
Compaq Computer Corp.* 3,300 245,025
Allied-Signal, Inc. 3,600 241,200
Morgan (J.P.) & Co. 2,400 234,300
Lockheed Martin Corp. 2,530 231,495
The Notes to Financial Statements are an integral part of these statements.
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CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND INVESTMENTS IN SECURITIES December
31, 1996 (continued) 3
NUMBER OF MARKET
SHARES VALUE
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Computer Associates International, Inc. 4,575 $ 227,606
Sara Lee Corp. 6,100 227,225
Sears, Roebuck & Company 4,900 226,013
Xerox Corp. 4,200 221,025
Sprint Corp. 5,500 219,313
First Chicago NBD Corp. 4,053 217,849
Union Pacific Corp. 3,600 216,450
NIKE, Inc., Class B 3,600 215,100
First Data Corp. 5,600 204,400
WMX Technologies, Inc. 6,100 199,013
Pacific Telesis Group 5,400 198,450
United Technologies Corp. 3,000 198,000
Northern Telecom Ltd. 3,200 198,000
Medtronic, Inc. 2,900 197,200
Norwest Corp. 4,400 191,400
U. S. WEST Communications, Inc. 5,900 190,275
Southern Company 8,400 190,050
Caterpillar, Inc. 2,500 188,125
Seagram Company Ltd. 4,700 182,125
Amgen, Inc.* 3,300 179,438
Merrill Lynch & Co., Inc. 2,200 179,300
McDonnell Douglas Corp. 2,800 179,200
Kellogg Co. 2,700 177,187
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TOTAL 100-LARGEST STOCKS 45,972,506
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Bank of New York, Inc. 5,000 168,750
Heinz (H.J.) Co. 4,700 168,025
Colgate-Palmolive Co. 1,800 166,050
Fleet Financial Group, Inc. 3,316 165,386
Rockwell International Corp. 2,700 164,362
PNC Bank Corp. 4,300 161,787
Viacom, Inc., Class B* 4,600 160,425
Automatic Data Processing, Inc. 3,700 158,638
General Re Corp. 1,000 157,750
International Paper Co. 3,907 157,745
Airtouch Communications, Inc.* 6,200 156,550
Burlington Northern Santa Fe Corp. 1,789 154,525
ConAgra, Inc. 3,100 154,225
3Com Corp.* 2,100 154,088
NUMBER OF MARKET
SHARES VALUE
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Texas Instruments, Inc. 2,400 $ 153,000
Archer-Daniels-Midland Co. 6,832 150,304
KeyCorp 2,958 149,379
Raytheon Co. 3,100 149,188
Phillips Petroleum Co. 3,300 146,025
CoreStates Financial Corp. 2,800 145,250
May Department Stores Co. 3,100 144,925
Loews Corp. 1,500 141,375
Aluminum Co. of America 2,200 140,250
Norfolk Southern Corp. 1,600 140,000
CPC International, Inc. 1,800 139,500
Baxter International, Inc. 3,400 139,400
Dean Witter, Discover and Co. 2,100 139,125
Enron Corp. 3,200 138,000
SunTrust Banks, Inc. 2,800 137,900
CIGNA Corp. 1,000 136,625
Penney (J.C.) Co., Inc. 2,800 136,500
Gannett Co., Inc. 1,800 134,775
PPG Industries, Inc. 2,400 134,700
Corning, Inc. 2,900 134,125
Deere & Co. 3,300 134,063
Boston Scientific Corp.* 2,200 132,000
Boatmen's Bancshares, Inc. 2,000 129,000
Bank of Boston Corp. 2,000 128,500
Dell Computer Corp.* 2,400 127,500
Hershey Foods Corp. 2,900 126,875
General Mills, Inc. 2,000 126,750
Barrick Gold Corp. 4,400 126,500
Unocal Corp. 3,100 125,938
National City Corp. 2,800 125,650
WorldCom, Inc.* 4,800 125,100
Walgreen Co. 3,100 124,000
Barnett Banks, Inc. 3,000 123,375
First Bank System, Inc. 1,800 122,850
Duke Power Co. 2,600 120,250
Illinois Tool Works, Inc. 1,500 119,812
Wachovia Corp. 2,100 118,650
Weyerhaeuser Co. 2,500 118,438
MBNA Corp. 2,850 118,275
The Notes to Financial Statements are an integral part of these statements.
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CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND INVESTMENTS IN SECURITIES December
31, 1996 (continued) 4
NUMBER OF MARKET
SHARES VALUE
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Chubb Corp. 2,200 $ 118,250
Sun Microsystems, Inc.* 4,600 118,162
Mellon Bank Corp. 1,650 117,150
Morgan Stanley Group, Inc. 2,000 114,250
American Brands, Inc. 2,300 114,138
Texas Utilities Co. 2,800 114,100
Aetna, Inc. 1,426 114,080
Albertson's, Inc. 3,200 114,000
U. S. WEST Media Group* 6,100 112,850
Edison International 5,600 111,300
Pacific Gas & Electric Co. 5,300 111,300
Household International, Inc. 1,200 110,700
CSX Corp. 2,600 109,850
GAP, Inc. 3,600 108,450
Tele-Communications, Inc., Class A* 8,200 107,113
CUC International, Inc.* 4,500 106,875
American General Corp. 2,600 106,275
Dayton Hudson Corp. 2,700 105,975
FPL Group, Inc. 2,300 105,800
Tyco International Ltd. 2,000 105,750
Honeywell, Inc. 1,600 105,200
AMP, Inc. 2,712 104,073
Union Pacific Resources Group, Inc. 3,549 103,808
Textron, Inc. 1,100 103,675
Pitney-Bowes, Inc. 1,900 103,550
Westinghouse Electric Corp. 5,200 103,350
Avon Products, Inc. 1,800 102,825
Seagate Technology, Inc.* 2,600 102,700
Toys 'R' Us, Inc.* 3,400 102,000
ITT Hartford Group, Inc. 1,500 101,250
Conrail, Inc. 1,000 99,625
Tenneco, Inc. 2,200 99,275
United Healthcare Corp. 2,200 99,000
Goodyear Tire & Rubber Co. 1,900 97,612
Air Products & Chemicals, Inc. 1,400 96,775
Mattel, Inc. 3,445 95,599
Ralston Purina Co. 1,300 95,388
American Electric Power Co., Inc. 2,300 94,588
Alcan Aluminum Ltd. 2,800 94,150
NUMBER OF MARKET
SHARES VALUE
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Marsh & McLennan Companies, Inc. 900 $ 93,600
Occidental Petroleum Corp. 4,000 93,500
EMC Corp.* 2,800 92,750
HFS, Inc.* 1,500 89,625
Federated Department Stores, Inc.* 2,600 88,725
Marriott International, Inc. 1,600 88,400
AMR Corp.* 1,000 88,125
Consolidated Edison Co. of N.Y., Inc. 3,000 87,750
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TOTAL 200-LARGEST STOCKS 58,277,970
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Crown Cork & Seal Co., Inc. 1,600 87,000
Aon Corp. 1,400 86,975
Georgia-Pacific Corp. 1,200 86,400
Bankers Trust New York Corp. 1,000 86,250
USX-Marathon Group 3,600 85,950
PanEnergy Corp. 1,900 85,500
U. S. Bancorp, Inc. 1,900 85,381
Dominion Resources, Inc. 2,200 84,700
Public Service Enterprises Group, Inc. 3,100 84,475
Wrigley (Wm.) Jr. Company 1,500 84,375
Halliburton Co. 1,400 84,350
Service Corporation International 3,000 84,000
Praxair, Inc. 1,800 83,025
Tellabs, Inc.* 2,200 82,775
Applied Materials, Inc.* 2,300 82,656
Alco Standard Corporation 1,600 82,600
Fifth Third Bancorp 1,300 81,625
Hilton Hotels Corp. 3,100 80,988
Burlington Resources, Inc. 1,600 80,600
Entergy Corp. 2,900 80,475
TRW, Inc. 1,600 79,200
Comerica, Inc. 1,500 78,563
UST, Inc. 2,400 77,700
Morton International, Inc. 1,900 77,425
Pioneer Hi-Bred International, Inc. 1,100 77,000
PacifiCorp 3,700 75,850
Micron Technology, Inc. 2,600 75,725
ALLTEL Corp. 2,400 75,300
Sysco Corp. 2,300 75,038
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
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CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND INVESTMENTS IN SECURITIES December
31, 1996 (continued) 5
NUMBER OF MARKET
SHARES VALUE
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Freeport McMoRan Copper & Gold, Inc.,
Class B 2,500 $ 74,687
Houston Industries, Inc. 3,300 74,663
Lowes Companies, Inc. 2,100 74,550
Kroger Co.* 1,600 74,400
Computer Sciences Corp.* 900 73,913
American Stores Co. 1,800 73,575
Unicom Corp. 2,700 73,238
Williams Companies, Inc. 1,950 73,125
Masco Corp. 2,000 72,000
Dresser Industries, Inc. 2,300 71,300
Transamerica Corp. 900 71,100
Browning-Ferris Industries, Inc. 2,700 70,875
Delta Air Lines, Inc. 1,000 70,875
PECO Energy Co. 2,800 70,700
Dover Corp. 1,400 70,350
Clorox Co. 700 70,263
Inco Ltd. 2,200 70,125
Eaton Corp. 1,000 69,750
Times Mirror Co., Class A 1,400 69,650
Union Carbide Corp. 1,700 69,488
Amerada Hess Corp. 1,200 69,450
Becton, Dickinson and Co. 1,600 69,400
Carolina Power & Light Co. 1,900 69,350
Cognizant Corp.* 2,100 69,300
Central & Southwest Corp. 2,700 69,188
Digital Equipment Corp.* 1,900 69,113
Fluor Corp. 1,100 69,025
Lincoln National Corp. 1,300 68,250
Cinergy Corp. 2,020 67,418
Genuine Parts Co. 1,500 66,750
Consolidated Natural Gas Co. 1,200 66,300
Green Tree Financial Corp. 1,700 65,662
Rohm & Haas Co. 800 65,300
Placer Dome, Inc. 3,000 65,250
ITT Corp. 1,500 65,063
UNUM Corp. 900 65,025
Quaker Oats Co. 1,700 64,812
St. Paul Companies, Inc. 1,100 64,488
Coastal Corp. 1,300 63,538
NUMBER OF MARKET
SHARES VALUE
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SAFECO Corp. 1,600 $ 63,100
Tribune Co. 800 63,100
International Flavors & Fragrances, Inc. 1,400 63,000
Newell Company 2,000 63,000
Price/Costco, Inc.* 2,500 62,813
Limited, Inc. 3,400 62,475
Ingersol-Rand Co. 1,400 62,300
Federal Express Corp.* 1,400 62,300
Grace (W.R.) & Co. 1,200 62,100
Baker Hughes, Inc. 1,800 62,100
Providian Corp. 1,200 61,650
Sherwin-Williams Co. 1,100 61,600
Salomon, Inc. 1,300 61,263
Phelps Dodge Corp. 900 60,750
Hercules, Inc. 1,400 60,550
Kmart Corp. 5,800 60,175
Winn-Dixie Stores, Inc. 1,900 60,088
Cabletron Systems, Inc.* 1,800 59,850
Donnelley (R.R.) & Sons Co. 1,900 59,613
Cooper Industries, Inc. 1,400 58,975
DTE Energy Co. 1,800 58,275
Republic New York Corp. 700 57,137
Tenet Healthcare Corp. 2,600 56,875
Sonat, Inc. 1,100 56,650
General Dynamics Corp. 800 56,400
Andrew Corp.* 1,062 56,352
Nucor Corp. 1,100 56,100
McGraw-Hill, Inc. 1,200 55,350
Eastman Chemical Co. 1,000 55,250
VF Corp. 800 54,000
Allegheny Teledyne, Inc. 2,340 53,820
GPU, Inc. 1,600 53,800
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TOTAL 300-LARGEST STOCKS 65,261,991
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CVS Corp. 1,300 53,788
MGIC Investment Corp. 700 53,200
Newmont Mining Corp. 1,172 52,447
Ahmanson (H. F.) & Co. 1,600 52,000
Champion International Corp. 1,200 51,900
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
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CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND INVESTMENTS IN SECURITIES December
31, 1996 (continued) 6
NUMBER OF MARKET
SHARES VALUE
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Guidant Corp. 900 $ 51,300
Silicon Graphics, Inc.* 2,000 51,000
Baltimore Gas & Electric Co. 1,900 50,825
MBIA, Inc. 500 50,625
Union Electric Co. 1,300 50,050
Dun & Bradstreet Corp. 2,100 49,875
Northrop Grumman Corp. 600 49,650
Western Atlas, Inc.* 700 49,613
Avery Dennison Corp. 1,400 49,525
Great Western Financial Corp. 1,700 49,300
Case Corp. 900 49,050
Willamette Industries, Inc. 700 48,650
Grainger (W.W.), Inc. 600 48,150
Jefferson-Pilot Corp. 850 48,131
Comcast Corp., Class A (Special) 2,700 48,094
Raychem Corp. 600 48,075
Bay Networks, Inc.* 2,300 48,013
Interpublic Group of Comoanies, Inc. 1,000 47,500
TJX Companies, Inc. 1,000 47,375
Advanced Micro Devices, Inc.* 1,800 46,350
PP & L Resources, Inc. 2,000 46,000
Knight-Ridder, Inc. 1,200 45,900
New York Times Co., Class A 1,200 45,600
Rubbermaid, Inc. 2,000 45,500
Torchmark Corp. 900 45,450
Reynolds Metals Co. 800 45,100
Laidlaw, Inc., Class B, (non-voting) 3,900 44,850
Beneficial Corp. 700 44,363
Golden West Financial Corp. 700 44,188
Rite Aid Corp. 1,100 43,725
Novell, Inc.* 4,600 43,556
Ohio Edison Co. 1,900 43,225
Dillard Department Stores, Inc., Class A 1,400 43,225
Kerr-McGee Corp. 600 43,200
Union Camp Corp. 900 42,975
Tupperware Corp. 800 42,900
LSI Logic Corp.* 1,600 42,800
Hasbro, Inc. 1,100 42,763
Dana Corp. 1,300 42,413
NUMBER OF MARKET
SHARES VALUE
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Whirlpool Corp. 900 $ 41,963
Harcourt General, Inc. 900 41,512
Johnson Controls, Inc. 500 41,438
National Semiconductor Corp.* 1,700 41,438
Northern States Power Co. 900 41,288
Brown-Forman Corporation, Class B 900 41,175
Mead Corp. 700 40,688
Dow Jones & Co., Inc. 1,200 40,650
Southwest Airlines Co. 1,800 39,825
Mallinckrodt Group, Inc. 900 39,712
Westvaco Corp. 1,350 38,813
Humana, Inc.* 2,000 38,250
Columbia Gas Systems, Inc. 600 38,175
Temple-Inland, Inc. 700 37,887
Fruit of the Loom, Inc., Class A* 1,000 37,875
Block (H & R), Inc. 1,300 37,700
Sigma-Aldrich Corp. 600 37,463
Great Lakes Chemical Corp. 800 37,400
Engelhard Corp. 1,950 37,294
Woolworth Corp. 1,700 37,188
Parker-Hannifin Corp. 950 36,813
ITT Industries, Inc. 1,500 36,750
James River Corp. 1,100 36,438
St. Jude Medical, Inc. 850 36,231
Circuit City Stores, Inc. 1,200 36,150
Pall Corp. 1,400 35,700
Nordstrom, Inc. 1,000 35,438
Perkin-Elmer Corp. 600 35,325
Tandy Corp. 800 35,200
Ashland, Inc. 800 35,100
FMC Corp.* 500 35,063
Liz Claiborne, Inc. 900 34,763
Armstrong World Industries, Inc. 500 34,750
Oryx Energy Co. 1,400 34,650
USX-U.S. Steel Group 1,100 34,512
Harris Corp. 500 34,313
Pennzoil Co. 600 33,900
Reebok International Ltd. 800 33,600
Pacific Enterprises 1,100 33,413
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
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CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND INVESTMENTS IN SECURITIES December
31, 1996 (continued) 7
NUMBER OF MARKET
SHARES VALUE
- ------------------------------------------------------------------
Apple Computer, Inc. 1,600 $ 33,400
Black & Decker Corp. 1,100 33,138
Wendy's International, Inc. 1,600 32,800
Deluxe Corp. 1,000 32,750
General Instrument Corp.* 1,500 32,438
Ceridian Corp.* 800 32,400
Stanley Works 1,200 32,400
PACCAR, Inc. 475 32,300
United States Surgical Corp. 800 31,500
Brunswick Corp. 1,300 31,200
Ryder System, Inc. 1,100 30,938
Ecolab, Inc. 800 30,100
Whitman Corp. 1,300 29,738
Maytag Corp. 1,500 29,625
Louisiana-Pacific Corp. 1,400 29,575
Lehman Brothers Holdings, Inc. 940 29,492
Nalco Chemical Co. 800 28,900
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TOTAL 400-LARGEST STOCKS 69,332,747
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Harnischfeger Industries, Inc. 600 28,875
Moore Corporation Ltd. 1,400 28,525
Allergan, Inc. 800 28,500
Cox Communications, Inc., Class A* 1,229 28,421
American Greetings Corp., Class A 1,000 28,375
Santa Fe Pacific Gold Corp. 1,840 28,290
Cyprus Amax Minerals Co. 1,200 28,050
Giant Foods, Inc., Class A 800 27,600
Rowan Companies, Inc.* 1,200 27,150
USF&G Corp. 1,300 27,138
Homestake Mining Co. 1,900 27,075
DSC Communications Corp.* 1,500 26,813
Snap-On, Inc. 750 26,719
Thomas & Betts Corp. 600 26,625
Comcast Corp., Class A 1,500 26,438
NorAm Energy Corp. 1,700 26,137
Polaroid Corp. 600 26,100
ALZA Corp.* 1,000 25,875
Bemis Company, Inc. 700 25,813
General Signal Corp. 600 25,650
NUMBER OF MARKET
SHARES VALUE
- -------------------------------------------------------------------
Owens-Corning Fiberglas Corp. 600 $ 25,575
SuperValu, Inc. 900 25,538
Echlin, Inc. 800 25,300
NICOR, Inc. 700 25,025
Harrah's Entertainment, Inc.* 1,250 24,844
Millipore Corp. 600 24,825
Mercantile Stores Co., Inc. 500 24,688
Pep Boys-Manny, Moe & Jack 800 24,600
Bausch & Lomb, Inc. 700 24,500
Goodrich (B.F.) Co. 600 24,300
Biomet, Inc. 1,600 24,200
Cummins Engine Co., Inc. 500 23,000
National Service Industries, Inc. 600 22,425
Tandem Computers, Inc.* 1,600 22,000
Sun Company, Inc. 900 21,937
Cooper Tire & Rubber Co. 1,100 21,725
Manor Care, Inc. 800 21,600
Louisiana Land & Exploration Co. 400 21,450
Meredith Corp. 400 21,100
USAir Group, Inc.* 900 21,038
ENSERCH Corp. 900 20,700
Tektronix, Inc. 400 20,500
Worthington Industries, Inc. 1,100 19,938
Niagara Mohawk Power Co. 2,000 19,750
Bard (C. R.), Inc. 700 19,600
Amdahl Corp.* 1,600 19,400
Battle Mountain Gold Co. 2,800 19,250
Darden Restaurants, Inc. 2,200 19,250
Alberto-Culver Co., Class B 400 19,200
Boise Cascade Corp. 600 19,050
Payless ShoeSource, Inc.* 496 18,600
Foster Wheeler Corp. 500 18,563
King World Productions, Inc.* 500 18,438
Timken Co. 400 18,350
Santa Fe Energy Resources, Inc. 1,300 18,038
Briggs & Stratton Corp. 400 17,600
Crane Co. 600 17,400
Potlatch Corp. 400 17,200
Peoples Energy Corp. 500 16,938
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S$P 500 INDEX FUND INVESTMENTS IN SECURITIES December
31, 1996 (continue) 8
NUMBER OF MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
Autodesk, Inc. 600 $ 16,800
Fleetwood Enterprises, Inc. 600 16,500
Scientific-Atlanta, Inc. 1,100 16,500
Stone Container Corp. 1,100 16,362
Unisys Corp.* 2,400 16,200
Great Atlantic & Pacific Tea Co., Inc. 500 15,937
Helmerich & Payne, Inc. 300 15,638
Beverly Enterprises, Inc.* 1,200 15,300
Centex Corp. 400 15,050
USLIFE Corp. 450 14,962
Asarco, Inc. 600 14,925
Russell Corp. 500 14,875
Shared Medical Systems Corp. 300 14,775
Longs Drug Stores Corp. 300 14,737
TRINOVA Corp. 400 14,550
Bethlehem Steel Corp.* 1,500 13,500
McDermott International, Inc. 800 13,300
Harland (J.H.) Co. 400 13,200
Safety-Kleen Corp. 800 13,100
Jostens, Inc. 600 12,675
Pulte Corp. 400 12,300
EG & G, Inc. 600 12,075
ONEOK, Inc. 400 12,000
Inland Steel Industries, Inc. 600 12,000
Cincinnati Milacron, Inc. 500 10,938
Eastern Enterprises 300 10,613
Echo Bay Mines Ltd. 1,600 10,600
Alexander & Alexander Services, Inc. 600 10,425
Ball Corp. 400 10,400
El Paso Natural Gas Co. 205 10,332
Navistar International Corp.* 1,100 10,038
Caliber System, Inc. 500 9,625
Coors (Adolph) Co., Class B 500 9,500
Fleming Companies, Inc. 500 8,625
Springs Industries, Inc., Class A 200 8,600
Schweitzer-Mauduit International, Inc. 230 7,274
Data General Corp.* 500 7,250
Charming Shoppes, Inc. 1,400 7,088
Stride Rite Corp. 700 7,000
NUMBER OF MARKET
SHARES VALUE
- -------------------------------------------------------------------
Earthgrains Co. 128 $ 6,688
Newport News Shipbuilding & Dry Dock Co.* 440 6,600
Giddings & Lewis, Inc. 500 6,438
Kaufman & Broad Home Corp. 500 6,437
Armco, Inc. 1,500 6,188
Intergraph Corp.* 600 6,150
Luby's Cafeterias, Inc. 300 5,963
Roadway Express, Inc. 300 5,813
Ryans Family Steak Houses, Inc.* 800 5,500
NACCO Industries, Inc., Class A 100 5,350
Zurn Industries, Inc. 200 5,225
Bassett Furniture Industries, Inc. 200 4,900
Shoney's, Inc.* 600 4,200
GC Companies, Inc.* 120 4,155
Strattec Security Corp.* 180 3,285
Highlands Insurance Group, Inc.* 160 3,240
Aviall, Inc. 300 2,775
Bally Total Fitness Holding Co.* 175 1,389
CyberGuard Corp.* 90 1,091
Crown Vantage, Inc.* 120 1,020
Brunos, Inc.* 31 535
-------------
TOTAL COMMON STOCKS - 99.5%
(Cost $45,431,830) 71,282,862
-------------
PREFERRED STOCK - 0 .1%
(Cost $9,274)
Aetna, Inc., Class C* 142 11,271
-------------
WARRANTS - 0 .1%
(Cost $162)
Morrison Knudsen Corp., Expire 2003* 37 134
-------------
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND INVESTMENTS IN SECURITIES December
31, 1996 (continued) 9
MARKET
PRINCIPAL VALUE
- --------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 0.6%
COMMERCIAL PAPER - 0.3%
Philip Morris Capital Co., 6.45%, 1/2/97 $ 202,000 $ 201,964
U.S. GOVERNMENT AND AGENCIES - 0.3%
U.S. Treasury Bills,
4.975%, 1/23/97** 250,000 249,240
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Cost - $451,204) 451,204
-----------
TOTAL INVESTMENT IN SECURITIES - 100.3%
(Total Cost - $45,892,470) 71,745,471
Liabilities, Less Cash and Other Assets - (0.3)% (232,711)
-----------
NET ASSETS - 100.0%
(equivalent to $12.40 per share based on 5,769,459 $71,512,760
shares outstanding) -----------
-----------
* Non-income producing securities.
** Pledged as initial margin for Stock Index Futures Contracts.
At December 31, 1996, the Fund was long 1 S&P 500 Futures
Contract expiring in March 1997. Unrealized loss amounted to $4,775.
The Notes to Financial Statements are an integral part to these statements.
<PAGE>
- -------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND 10
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
- ----------------------------------------------------------
ASSETS:
Investments at market value
(Cost $45,892,470) $ 71,745,471
Cash 550
Receivable for fund shares sold 33,854
Dividend receivable 125,056
Investment for deferred compensation plan 64,972
(Cost $51,752)
Other 3,441
--------------
TOTAL ASSETS 71,973,344
--------------
LIABILITIES:
Payable for fund shares repurchased 330,454
Deferred directors' fees payable 64,972
Accrued advisory fees payable 16,467
Variation margin payable 7,315
Other accrued expenses (including $1,400
due to affiliate) 41,376
--------------
TOTAL LIABILITIES 460,584
--------------
NET ASSETS
(Equivalent to $12.40 per share
based on 5,769,459 shares outstanding) $ 71,512,760
==============
COMPONENTS OF NET ASSETS:
Paid in capital 45,860,167
Overdistributed net investment income (62,747)
Unrealized appreciation of investments 25,861,446
Accumulated net realized loss (146,106)
--------------
NET ASSETS $71,512,760
==============
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
- ---------------------------------------------------------
INVESTMENT INCOME
INCOME:
Dividend $ 1,447,321
Interest 182,595
--------------
1,629,916
EXPENSES:
Investment advisory fees 172,165
Custodian fees 139,025
Administrative services 63,886
Directors' fees 20,386
Shareholder reports 20,256
Auditing and legal fees 14,952
Other 5,546
--------------
Total expenses 436,216
Less expenses waived by advisor (25,864)
--------------
Net Expenses 410,352
--------------
NET INVESTMENT INCOME 1,219,564
--------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain from investments 2,228,193
Net realized gain from futures
contracts 421,267
Unrealized appreciation of
investments 10,039,959
Net unrealized loss from futures
contracts (4,775)
--------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 12,684,644
--------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 13,904,208
==============
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND STATEMENT OF CHANGES IN NET ASSETS
11
YEARS ENDED DECEMBER 31,
1996 1995
---- ----
OPERATIONS:
Net investment income $ 1,219,564 $ 1,251,996
Net realized gain from investments 2,228,193 841,069
Net realized gain from futures contracts 421,267 836,257
Unrealized appreciation on investments 10,039,959 16,116,399
Unrealized depreciation on futures
contracts (4,775) (29,550)
--------------- ----------------
Net increase in net assets
from operations 13,904,208 19,016,171
--------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
($.29 and $.27 per share, respectively) (1,598,881) (1,592,502)
In excess of net investment income
(less than $.01 per share) (7,129) (46,038)
From net realized gain ($.45 and
$.18 per share, respectively (2,487,222) (1,065,000)
--------------- ----------------
Total distributions to shareholders (4,093,232) (2,703,540)
--------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Net decrease from capital share
transactions (4,581,327) (4,757,930)
--------------- ----------------
NET INCREASE IN NET ASSETS 5,236,778 11,554,701
NET ASSETS:
Beginning of period 66,283,111 54,728,410
--------------- ----------------
End of period (Including overdistributed
net investment income of $62,747
and $46,038, respectively) $71,519,889 $ 66,283,111
=============== ================
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND NOTES TO FINANCIAL STATEMENTS 12
1. UTILIZATION OF INDEXATION APPROACH. The CIGNA Variable Products S&P 500 Index
Fund (the "Fund"), known as the Companion Fund prior to January 2, 1996, seeks
to achieve its long term growth objective by attempting to replicate the total
return performance, reduced by Fund expenses, of the Standard & Poor's 500
Composite Stock Price Index.
2. SIGNIFICANT ACCOUNTING POLICIES. The Fund is a separate series of CIGNA
Variable Products Group, a Massachusetts business trust (the "Trust"). The Trust
is registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. The preparation of
financial statements in accordance with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates. The following is a summary of significant accounting
policies consistently followed by the Fund in the preparation of its financial
statements.
A. SECURITY VALUATION - Equity securities, including warrants, that are listed
on a national securities exchange or part of the NASDAQ National Market System
are valued at the last sale price or, if there has been no sale that day, at the
last bid price. Debt and other equity securities traded in the over-the-counter
market, including listed securities whose primary markets are believed to be
over-the-counter, are valued at the most recent bid price. Short-term
investments with remaining maturities of up to and including 60 days are valued
at amortized cost, which approximates market value. Short-term investments that
mature in more than 60 days are valued at current market quotations. Other
securities and assets of the Fund are appraised at fair value as determined in
good faith by, or under the authority of, the Trust's Board of Trustees.
FUTURES CONTRACTS - The Fund may purchase Standard & Poor's 500 futures
contracts with the objective of earning returns on its short-term investments
equivalent to returns on the Standard & Poor's 500 Composite Stock Price Index.
As a result, the purchase of futures contracts simulates a fully invested
position in the underlying index while maintaining liquidity. Upon entering into
a futures contract, the Fund is required to pledge to the broker an amount of
cash and/or securities equal to the initial margin requirements. During the
period a futures contract is open, changes in the value of a contract are
recognized as unrealized gains or losses by "marking to market" on a daily basis
to reflect the market value of the contract at the end of each day's trading.
Daily variation margin payments are received or made, depending on whether there
were unrealized gains or losses. When a contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed. Futures
contracts include the risk that a change in the value of the contract may not
correlate with the value of the underlying securities.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions
are accounted for on the trade date (date the order to buy or sell is executed).
Dividend income is recorded on the ex-dividend date, and interest income is
recorded on the accrual basis. Securities gains and losses are determined on the
basis of identified cost.
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND NOTES TO FINANCIAL STATEMENTS
(Continued) 13
C. FEDERAL TAXES - It is the Fund's policy to continue to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income and capital gains, if any,
to its shareholders.
Therefore, no federal income or excise taxes on realized income have been
accrued.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and distributions are
recorded by the Fund on the ex-dividend date. Payments in excess of financial
accounting income due to differences between financial and tax accounting, to
meet the minimum distribution requirements for tax basis income, are deducted
from paid in capital when such differences are determined to be permanent.
3. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES. Investment
advisory fees were paid or accrued to CIGNA Investments, Inc. ("CII"), certain
officers and directors of which are affiliated with the Fund. Such advisory fees
are based on an annual rate of 0.25% applied to the daily average net assets of
the Fund. Beginning January 1, 1996, CII voluntarily agreed to reimburse the
Fund for any amount by which its expenses (including the advisory fee but
excluding interest, taxes, amortized organization expenses, transaction costs
incurred in acquiring and disposing of portfolio securities, and extraordinary
expenses) exceed 0.60% of average daily net assets. Effective January 1, 1997,
this was lowered to 0.25% of average daily net assets until December 31, 1997,
and afterwards to the extent described in the Fund's then current prospectus.
The Fund reimburses CII for a portion of the compensation and related expenses
of the Fund's Treasurer and Secretary and certain persons who assist in carrying
out the responsibilities of those offices. For the year ended December 31, 1996,
the Fund paid or accrued $63,886.
CII is an indirect, wholly-owned subsidiary of CIGNA Corporation.
4. TRUSTEES' FEES. Trustees' fees represent remuneration paid or accrued to
trustees who are not employees of CIGNA Corporation or any of its affiliates.
Trustees may elect to defer receipt of all or a portion of their fees which are
invested in mutual fund shares in accordance with a deferred compensation plan.
5. PURCHASES AND SALES OF SECURITIES. Purchases and sales of securities,
excluding short-term obligations, aggregated $2,375,449 and $8,000,239,
respectively, for the year ended December 31, 1996. As of December 31, 1996, the
cost of securities held for Federal income tax purpose was $46,334,280. At
December 31, 1996, unrealized appreciation for Federal income tax purposes
aggregated $25,411,190, of which $26,641,815 related to appreciated securities
and $1,230,625 related to depreciated securities.
6. CAPITAL STOCK. The Fund offers an unlimited number of shares of beneficial
interest without par value. Of the 5,769,459 shares outstanding at December 31,
1996, 5,631,669, shares were held by State Street Bank and Trust Company as
custodian under agreement with Connecticut General Life Insurance Company ("CG
Life") relating to variable annuity contracts issued by that company. The
remainder, representing 2.4% of the shares outstanding, was held by an employee
benefit plan established by CG Life for certain of its employees.
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND NOTES TO FINANCIAL STATEMENTS
(Continued) 14
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1996 DECEMBER 31, 1995
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 86,654 $ 1,004,154 161,710 $ 1,578,966
Shares issued to shareholders
in reinvestment of dividends
and distributions 340,816 4,093,232 252,673 2,703,540
--------- ---------- --------- ------------
427,470 5,097,386 414,383 4,282,506
--------- ---------- --------- ------------
Shares redeemed (822,161) (9,678,713) (935,565) (9,040,436)
--------- ---------- --------- ------------
Net decrease (394,691) $ (4,581,327) (521,182) $ (4,757,930)
--------- ---------- --------- -----------
--------- ---------- --------- -----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDE FUND NOTES TO FINANCIAL STATEMENTS
(Continued) 15
7. Financial Highlights. The following selected per share data, ratios and
supplemental data is computed on the basis of a share outstanding throughout
the period.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.75 $ 8.19 $ 9.20 $ 11.94 $ 12.83
-------- -------- --------- -------- --------
Income from investment operations
Net investment income * 0.22 0.21 0.19 0.16 0.12
Net realized and unrealized gain (loss) 2.17 2.80 (0.13) 0.22 0.34
-------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 2.39 3.01 0.06 0.38 0.46
LESS DISTRIBUTIONS: -------- -------- -------- -------- --------
From net investment income (0.29) (0.27) (0.14) (0.17) (0.12)
From capital gains (0.45) (0.18) (0.85) (2.95) (1.23)
In excess of net capital gains -- -- (0.08) -- --
-------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS (0.74) (0.45) (1.07) (3.12) (1.35)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 12.40 $ 10.75 $ 8.19 $ 9.20 $ 11.94
-------- -------- -------- -------- --------
-------- -------- -------- --------
TOTAL INVESTMENT RETURN 22.48% 36.82% 0.67% 2.97% 3.59%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $71,513 $66,283 $54,728 $61,478 $68,287
Ratio of operating expenses to
average net assets 0.60%a 0.73% 0.78% 0.66% 0.59%
Ratio of net investment income
to average net assets 1.78%b 2.05% 2.23% 1.30% 0.94%
Portfolio Turnover 4% 4% 4% 185%** 82%
Average Commission Rate *** $0.0272
</TABLE>
a. Ratio of expenses to average net assets prior to expense reimbursements was
0.64% for 1996.
b. Ratio of net investment income to average net assets prior to expense
reimbursements was 1.74% for 1996.
* Net investment income per share has been calculated in accordance with SEC
requirements, with the exception that end of year accumulated undistributed/
(overdistributed) net investment income has not been adjusted to reflect current
year permanent difference between financial and tax accounting.
** During November 1993, the portfolio was indexed to the S&P 500, resulting in
a complete turnover of the portfolio at that time.
*** For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on which
commissions are charged. This amount may vary from period to period and fund to
fund depending on the mix of trades executed in various markets where trading
practices and commission rule structures may differ.
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND REPORT OF INDEPENDENT ACCOUNTANTS 16
To the Trustees and Shareholders of
CIGNA Variable Products S&P 500 Index Fund
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of CIGNA Variable Products S&P 500
Index Fund, formerly the Companion Fund, (the "Fund") at December 31, 1996, the
results of its operations for the year then ended, the changes in its net assets
and the financial highlights for each of the years indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements" ) are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1996 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
Price Waterhouse LLP
Boston, Massachusetts
February 14, 1997
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND 17
TRUSTEES: OFFICERS:
R. Bruce Albro (Chairman) R. Bruce Albro
Senior Managing Director, Chairman of the Board and President
CIGNA Investments, Inc.
Alfred A. Bingham III
Hugh R. Beath Vice President and Treasurer
Advisory Director,
AdMedia Corporate Advisors, Inc. Jeffrey S. Winer
Vice President and Secretary
Russell H. Jones
Vice President,
Kaman Corporation CUSTODIAN AND TRANSFER AGENT:
State Street Bank and Trust Company
Paul J. McDonald P.O. Box 2351
Senior Executive Vice President Boston, Massachusetts 02107
and Chief Administrative Officer,
Friendly Ice Cream Corporation INVESTMENT ADVISER:
CIGNA Investments, Inc.
Arthur C. Reeds, III Hartford, Connecticut 06152
President, CIGNA Investment
Management and CIGNA ADDRESS OF THE FUND:
Investments, Inc.
950 Winter Street
Waltham, Massachusetts 02154
- --------------------------------------------------------------------------------
"Standard & Poor's/R/", "S&P/R/," "Standard & Poor's 500," and "500" are
trademarks of the Standard & Poor's Corporation (S&P) and have been licensed for
use by CG Life. The S&P 500 Index Fund is not sponsored, endorsed, sold or
promoted by S&P, and S&P makes no representation regarding the advisability of
investing in the Fund.
