<PAGE>
[CIGNA TREE LOGO GRAPHIC APPEARS HERE]
CIGNA VARIABLE PRODUCTS
S&P 500 INDEX FUND
ANNUAL REPORT
DECEMBER 31, 1998
<PAGE>
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CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND MANAGEMENT DISCUSSION AND ANALYSIS 1
(UNAUDITED)
We began 1998 unclear as to how the economic turmoil in Asian markets would
impact US economic growth. Anticipating increased foreign competition as a
result of lower world prices and weakening foreign export demand we expected
positive but more normal returns to US equity markets over the year. This
expectation fell far short of actual returns. While unable to match the
incredible returns of 1997, the S&P 500 produced an unprecedented fourth
consecutive year of better than 20% returns. However, the path of US equity
markets in providing these annual results was less than smooth, reflecting wild
swings in investor sentiment in response to notable world events. For the
12-month period ended December 31, 1998, CIGNA Variable Products S&P 500 Index
Fund's return, after expenses and allowing for the reinvestment of dividends,
was 28.60%, slightly exceeding the 28.57% total return of the S&P 500 Index.
For the better part of the year Asian markets had only a minor negative impact
on a US economy which has become less dependent on basic industrial production
for growth. Indeed, conditions of low inflation, decreasing interest rates and
steady corporate profits responsible for strength in the US equity market for
the last three years remained intact as US consumers found themselves net
beneficiaries of lower world prices associated with economic duress in Asia.
Conditions were suddenly reversed in the third quarter with the combination of
several events. Russia defaulted on its debt, Latin America experienced
weakening, Japan announced reforms deemed to be trivial, and Long Term Capital,
a major US hedge fund, nearly folded as a result of its exposure to emerging
market debts. The S&P 500, which had reached new highs in July, found itself
underwater for the year at the end of August.
At the end of the third quarter, the market appeared to want some resolution of
global concerns before it could resume its advance. That resolution came in the
form of several rate cuts executed in close succession by the Federal Reserve
meant to reverse the building credit crunch and address impending global
recession. Equity markets suddenly reversed course in the fourth quarter,
staging a dramatic rise in response to these initiatives. The S&P 500 regained
new highs in the final three months of the year posting a 21.3% final quarter,
up 28.57% for the year.
As has been the pattern for several years, returns to S&P 500 Index
significantly out paced those of the median mutual fund manager as measured by
the Lipper Universe General Equity Average. Small capitalization and mid
capitalization stocks, as represented by the S&P 600 (19.09 %) and S&P 400
(28.18%) respectively, registered sizeable returns in the fourth quarter but
lagged large-cap returns for the full year, providing -1.33% and 17.581% for the
S&P 600 and S&P 400 respectively. The lack of breadth in index results also
continued with the largest returns confined to a limited list of the largest
firms and half the index constituents losing ground for the year.
While economic conditions in the US remain strong, certainly relative to many
parts of the world, there are elements of fragility that will need to be
successfully navigated if our long running expansion is to continue. A nagging
current account deficit, simultaneous contraction in productivity growth and in
availability of new labor, and the impact of the EMU on our overseas markets
would be among these concerns. They would also include the full impact of the
looming Y2K deadline and the fallout of the realized values attached to
technology stocks (particularly internet-related) which have appreciated quickly
as a group but will surely produce both winners and losers.
<PAGE>
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CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND MANAGEMENT DISCUSSION AND ANALYSIS
(Unaudited) (Continued) 2
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[THE FOLLOWING APPEARS AS A BAR CHART GRAPHIC]
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT (UNAUDITED)
1/1/89 - 12/31/98
|------------------------------------------------------|
| AVERAGE ANNUAL RETURN |
| |
| 1 Year 3 Year 5 Year 10 Year |
|12/31/98 28.60% 28.07% 23.67% 18.06% |
|------------------------------------------------------|
CVP S&P 500 S&P 500 CVP S&P 500 S&P 500
UNIT VALUE UNIT VALUE INVESTMENT INVESTMENT
12/88 54.46724 2.21877 $10,000 $10,000
12/89 70.38122 2.91690 $12,922 $13,146
12/90 67.57532 2.82359 $12,407 $12,726
12/91 92.88598 3.68554 $17,054 $16,611
12/92 96.21627 3.96892 $17,665 $17,888
12/93 99.07173 4.36613 $18,189 $19,678
12/94 99.73383 4.42386 $18,311 $19,938
12/95 136.45345 6.08354 $25,052 $27,419
12/96 167.12847 7.49850 $30,684 $33,796
12/97 222.86407 10.00000 $40,917 $45,070
12/98 286.61326 12.85700 $52,621 $57,947
CVP S&P 500 = CIGNA Variable Products S&P 500 Index Fund
S&P 500 = Standard & Poors 500 Index - Total Return
CIGNA Variable Products S&P 500 Index Fund's performance figures are historical
and reflect reinvestment of all dividends and capital gains distributions and
changes in the net asset value. The Fund does not charge a sales load, but may
be used with variable insurance products that contain other charges which would
affect the ultimate return to the 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.
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, 1998 3
MARKET
NUMBER OF VALUE
SHARES (000)
- ----------------------------------------------------------------
COMMON STOCKS - 90.3%
Microsoft Corp.* 45,500 $ 6,310
General Electric Co. 60,200 6,144
Intel Corp. 31,300 3,711
MCI WorldCommunications, Inc. 49,609 3,559
Wal-Mart Stores, Inc. 41,500 3,380
Exxon Corp. 45,200 3,305
Merck & Co., Inc. 22,100 3,264
International Business Machines Corp. 17,400 3,215
Coca-Cola Co. 45,600 3,050
Pfizer, Inc. 24,100 3,023
Lucent Technologies, Inc. 24,268 2,669
Cisco Systems, Inc.* 28,350 2,631
A T & T Corp. 33,500 2,521
Bristol-Myers Squibb Co. 18,400 2,462
Philip Morris Companies, Inc. 44,900 2,402
Procter & Gamble Co. 24,800 2,265
Johnson & Johnson 24,900 2,088
Citigroup, Inc. 41,992 2,079
SBC Communications, Inc. 36,206 1,942
BankAmerica Corp. 31,918 1,919
Royal Dutch Petroleum Co. 39,600 1,896
American International Group, Inc. 19,412 1,876
BellSouth Corp. 36,600 1,825
Lilly (Eli) & Co. 20,500 1,822
Dell Computer Corp.* 23,800 1,742
Home Depot, Inc. 27,200 1,664
Bell Atlantic Corp. 28,694 1,521
Schering-Plough Corp. 27,200 1,503
Federal National Mortgage Association 19,200 1,421
Abbott Laboratories 28,500 1,397
American Home Products Corp. 24,300 1,368
America Online, Inc.* 8,500 1,360
Time Warner, Inc. 21,800 1,353
Ford Motor Co. 22,400 1,315
Hewlett-Packard Co. 19,100 1,305
Ameritech Corp. 20,300 1,287
Compaq Computer Corp. 30,575 1,282
Mobil Corp. 14,400 1,255
Wells Fargo & Co. 29,660 1,185
MARKET
NUMBER OF VALUE
SHARES (000)
- -------------------------------------------------------------------
GTE Corp. 17,800 $ 1,157
Warner-Lambert Co. 15,100 1,135
Disney (Walt) Co. 37,800 1,134
PepsiCo, Inc. 27,600 1,130
du Pont (E.I.) de Nemours & Co. 20,900 1,109
Banc One Corp. 21,619 1,104
First Union Corp. 17,928 1,090
Chase Manhattan Corp. 15,784 1,074
Gillette Co. 20,800 1,005
Chevron Corp. 12,100 1,004
Unilever NV 11,800 979
McDonald's Corp. 12,700 973
Tyco International Ltd. 11,899 898
General Motors Corp. 12,400 887
American Express Company 8,500 869
Federal Home Loan Mortgage Corp. 12,500 805
Morgan Stanley, Dean Witter, Discover &
Co. 11,070 786
EMC Corp.* 9,200 782
Oracle Systems Corp.* 18,012 777
Airtouch Communications, Inc.* 10,600 765
Xerox Corp. 6,100 720
Sprint Corp. 8,000 673
Motorola, Inc. 11,000 672
Gap (The), Inc. 11,775 662
Medtronic, Inc. 8,700 646
Texas Instruments, Inc. 7,200 616
Boeing Company 18,676 609
Northern Telecom Ltd. 12,060 605
U.S. West, Inc. 9,299 601
Sun Microsystems, Inc.* 7,000 599
Allstate Corp. 15,496 599
Anheuser-Busch Companies, Inc. 9,000 591
Kimberly-Clark Corp. 10,332 563
Bank of New York, Inc. 13,900 559
Safeway, Inc.* 9,100 555
Associates First Capital Corp., Class A 12,738 540
Walgreen Co. 9,200 539
Pharmacia & Upjohn, Inc. 9,410 533
Minnesota Mining and Manufacturing Co. 7,500 533
MediaOne Group, Inc.* 11,300 531
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, 1998 (Continued) 4
MARKET
NUMBER OF VALUE
SHARES (000)
- ----------------------------------------------------------------
Texaco, Inc. 10,000 $ 529
Monsanto Company 11,100 527
Carnival Corp. 10,900 523
Tele-Communications, Inc., Class A* 9,400 520
Colgate-Palmolive Co. 5,500 511
Emerson Electric Co. 8,200 496
Amgen, Inc.* 4,700 491
Viacom, Inc., Class B* 6,600 488
Waste Management, Inc. 10,432 486
U. S. Bancorp, Inc. 13,702 486
Sara Lee Corp. 17,200 485
Fleet Financial Group, Inc. 10,432 466
Campbell Soup Company 8,400 462
Schlumberger Ltd. 10,000 461
Allied-Signal, Inc. 10,400 461
United Technologies Corp. 4,200 457
Electronic Data Systems Corp. 9,100 457
Automatic Data Processing, Inc. 5,600 449
National City Corp. 6,100 442
Dayton Hudson Corp. 8,100 439
CBS Corp. 13,300 436
Eastman Kodak Co. 6,000 432
- ----------------------------------------------------------------
TOTAL 100-LARGEST STOCKS 132,229
- ----------------------------------------------------------------
Computer Associates International,
Inc. 10,112 431
Merrill Lynch & Co., Inc. 6,400 427
Duke Energy Co. 6,662 427
Schwab (Charles) Corp. 7,425 417
Washington Mutual, Inc. 10,505 401
Comcast Corp., Class A (Special) 6,800 399
CVS Corp. 7,100 391
Heinz (H.J.) Co. 6,800 385
Atlantic Richfield Co. 5,900 385
Dow Chemical Co. 4,200 382
Southern Company 12,900 375
Firstar Corp. 4,000 373
American General Corp. 4,698 366
Household International, Inc. 9,046 358
ALLTEL Corp. 5,900 353
Raytheon Co., Class B 6,600 351
MARKET
NUMBER OF VALUE
SHARES (000)
- -------------------------------------------------------------------
MBNA Corp. 13,968 $ 348
Enron Corp. 6,100 348
Morgan (J.P.) & Co. 3,300 347
Fifth Third Bancorp 4,825 344
Gannett Co., Inc. 5,300 342
Pitney-Bowes, Inc. 5,100 337
Baxter International, Inc. 5,200 334
Lowes Companies, Inc. 6,500 333
Wachovia Corp. 3,800 332
Mellon Bank Corp. 4,800 330
Caterpillar, Inc. 6,800 313
Guidant Corp. 2,800 309
CIGNA Corp. 4,000 309
Lockheed Martin Corp. 3,630 308
Sears, Roebuck & Company 7,200 306
PNC Bank Corp. 5,600 303
Cendant Corp.* 15,704 299
SunTrust Banks, Inc. 3,900 298
Burlington Northern Santa Fe Corp. 8,767 296
3Com Corp.* 6,600 296
Columbia/HCA Healthcare Corp. 11,900 295
SunAmerica, Inc. 3,600 292
Applied Materials, Inc.* 6,800 290
Costco Companies, Inc.* 4,000 289
Albertson's, Inc. 4,500 287
Cardinal Health, Inc. 3,750 285
Kroger Co.* 4,700 284
Bestfoods 5,300 282
ConAgra, Inc. 8,900 280
Marsh & McLennan Companies, Inc. 4,700 275
Illinois Tool Works, Inc. 4,600 267
First Data Corp. 8,300 263
Aluminum Co. of America 3,500 261
May Department Stores Co. 4,300 260
KeyCorp 8,116 260
Kellogg Co. 7,600 259
International Paper Co. 5,707 256
Clear Channel Communications, Inc.* 4,600 251
Compuware Corp.* 3,200 250
Tellabs, Inc.* 3,600 247
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, 1998 (Continued) 5
MARKET
NUMBER OF VALUE
SHARES (000)
- ----------------------------------------------------------------
Williams Companies, Inc. 7,800 $ 243
Texas Utilities Co. 5,200 243
Seagram Company Ltd. 6,400 243
Hartford Financial Services Group, Inc. 4,400 241
Staples, Inc.* 5,500 240
Halliburton Co. 8,100 240
FDX Corp.* 2,700 240
Rite Aid Corp. 4,800 238
Ascend Communications, Inc.* 3,600 237
Consolidated Edison Co. of N.Y., Inc. 4,400 233
Textron, Inc. 3,000 228
HBO and Company 7,900 227
IMS Health, Inc. 3,000 226
General Mills, Inc. 2,900 225
PG & E Corp. 7,100 224
Norfolk Southern Corp. 7,000 222
Clorox Co. 1,900 222
Progressive Corp, Ohio 1,300 220
Penney (J.C.) Co., Inc. 4,600 216
NIKE, Inc., Class B 5,300 215
Aetna, Inc. 2,726 214
Avon Products, Inc. 4,800 212
FPL Group, Inc. 3,400 210
BB & T Corp. 5,200 210
BankBoston Corp. 5,400 210
State Street Corp. 3,000 209
AMP, Inc. 4,012 209
Union Pacific Corp. 4,600 207
Loews Corp. 2,100 206
Phillips Petroleum Co. 4,800 205
Providian Financial Corp. 2,700 202
AMR Corp.* 3,400 202
Chubb Corp. 3,100 201
Interpublic Group of Companies, Inc. 2,500 199
Micron Technology, Inc. 3,900 197
Becton, Dickinson and Co. 4,600 196
Solectron Corp.* 2,100 195
Comerica, Inc. 2,850 194
Corning, Inc. 4,300 193
Boston Scientific Corp.* 7,200 193
MARKET
NUMBER OF VALUE
SHARES (000)
- -------------------------------------------------------------------
PPG Industries, Inc. 3,300 $ 192
Ralston Purina Co. 5,900 191
Archer-Daniels-Midland Co. 11,080 190
Wrigley (Wm.) Jr. Company 2,100 188
- ---------------------------------------------------------------------
TOTAL 200-LARGEST STOCKS 159,763
- ---------------------------------------------------------------------
Weyerhaeuser Co. 3,700 188
American Stores Co. 5,100 188
Edison International 6,700 187
Computer Sciences Corp.* 2,900 187
Northern Trust Corp. 2,100 183
McGraw-Hill Cos., Inc. 1,800 183
Masco Corp. 6,300 181
Omnicom Group 3,100 180
Service Corporation International 4,700 179
Sprint Corp. (PCS Group)* 7,700 178
Kohl's Corp.* 2,900 178
Houston Industries, Inc. 5,507 177
Conseco, Inc. 5,758 176
Rockwell International Corp. 3,600 175
Aon Corp. 3,150 174
Honeywell, Inc. 2,300 173
Public Service Enterprises Group, Inc. 4,300 172
Air Products & Chemicals, Inc. 4,300 172
TJX Companies, Inc. 5,900 171
PECO Energy Co. 4,100 171
Sysco Corp. 6,200 170
Federated Department Stores, Inc.* 3,900 170
Meyer (Fred), Inc.* 2,800 169
BMC Software, Inc.* 3,800 169
Dominion Resources, Inc. 3,600 168
CSX Corp. 4,000 166
American Electric Power Co., Inc. 3,500 165
Fort James Corp. 4,100 164
Hershey Foods Corp. 2,600 162
Regions Financial Corp. 4,000 161
USX-Marathon Group 5,300 160
Unisys Corp.* 4,600 158
AES Corp.* 3,300 156
United Healthcare Corp. 3,600 155
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, 1998 (Continued) 6
MARKET
NUMBER OF VALUE
SHARES (000)
- ----------------------------------------------------------------
Quaker Oats Co. 2,600 $ 155
Lincoln National Corp. 1,900 155
Unicom Corp. 4,000 154
Paychex, Inc. 3,000 154
Bankers Trust New York Corp. 1,800 154
UNUM Corp. 2,600 152
Tribune Co. 2,300 152
Deere & Co. 4,600 152
St. Paul Companies, Inc. 4,332 151
Tenet Healthcare Corp.* 5,700 150
Franklin Resources, Inc. 4,700 150
Dover Corp. 4,100 150
SLM Holding Corp. 3,100 149
Jefferson-Pilot Corp. 1,975 148
Gateway 2000, Inc.* 2,900 148
Ingersol-Rand Co. 3,100 146
Goodyear Tire and Rubber Co. 2,900 146
Delta Air Lines, Inc. 2,800 146
Donnelley (R.R.) & Sons Co. 3,300 145
Summit Bancorp 3,300 144
Sempra Energy* 5,654 143
Entergy Corp. 4,600 143
Tricon Global Restaurants, Inc.* 2,840 142
FirstEnergy Corp. 4,300 140
Transamerica Corp. 1,200 139
Coca-Cola Enterprises, Inc. 3,900 139
Southwest Airlines Co. 6,150 138
Kmart Corp.* 9,000 138
Capital One Financial Corp. 1,200 138
Seagate Technology, Inc.* 4,500 136
Marriott International, Inc. 4,700 136
Danaher Corp. 2,500 136
Coastal Corp. 3,900 136
General Dynamics Corp. 2,300 135
Barrick Gold Corp. 6,900 135
Carolina Power & Light Co. 2,800 132
Unocal Corp. 4,500 131
TRW, Inc. 2,300 129
Mercantile Bancorporation, Inc. 2,800 129
Aegon NV ARS 1,042 127
MARKET
NUMBER OF VALUE
SHARES (000)
- -------------------------------------------------------------------
Mattel, Inc. 5,445 $ 124
Dana Corp. 3,043 124
Nabisco (RJR) Holdings Corp. 4,100 122
Limited, Inc. 4,200 122
Winn-Dixie Stores, Inc. 2,700 121
Pioneer Hi-Bred International, Inc. 4,500 121
New York Times Co., Class A 3,500 121
NEXTEL Communications, Inc., Class A* 5,100 120
Newell Company 2,900 120
HealthSouth Corp.* 7,800 120
UST, Inc. 3,400 119
Burlington Resources, Inc. 3,310 119
Synovus Financial Corp. 4,850 118
Novell, Inc.* 6,500 118
MBIA, Inc. 1,800 118
Huntington Bancshares, Inc. 3,890 117
PacifiCorp 5,500 116
DTE Energy Co. 2,700 116
Occidental Petroleum Corp. 6,800 115
Cincinnati Financial Corp. 3,100 114
Alcan Aluminum Ltd. 4,200 114
SAFECO Corp. 2,600 112
Lehman Brothers Holdings, Inc. 2,540 112
Genuine Parts Co. 3,350 112
Union Planters Corp. 2,400 109
Frontier Corp. 3,200 109
Central & Southwest Corp. 3,900 107
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TOTAL 300-LARGEST STOCKS 174,512
- -------------------------------------------------------------------
Ameren Corp. 2,500 107
Union Carbide Corp. 2,500 106
Tenneco, Inc. 3,100 106
Maytag Corp. 1,700 106
GPU, Inc. 2,400 106
Cooper Industries, Inc. 2,200 105
Provident Companies, Inc. 2,500 104
Baker Hughes, Inc. 5,890 104
VF Corp. 2,200 103
Rohm & Haas Co. 3,400 102
Praxair, Inc. 2,900 102
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, 1998 (Continued) 7
MARKET
NUMBER OF VALUE
SHARES (000)
- ----------------------------------------------------------------
New Century Energies, Inc. 2,100 $ 102
Apple Computer, Inc. 2,500 102
Golden West Financial Corp. 1,100 101
Fortune Brands, Inc. 3,200 101
Dun & Bradstreet Corp. 3,200 101
Black & Decker Corp. 1,800 101
Georgia-Pacific Corp. 1,700 100
Countrywide Credit Industries, Inc. 2,000 100
Cinergy Corp. 2,920 100
U.S. Airways Group, Inc.* 1,900 99
Avery Dennison Corp. 2,200 99
Brown-Forman Corporation, Class B 1,300 98
Nordstrom, Inc. 2,800 97
Consolidated Natural Gas Co. 1,800 97
Browning-Ferris Industries, Inc. 3,400 97
Northrop Grumman Corp. 1,300 95
General Instrument Corp.* 2,800 95
Sherwin-Williams Co. 3,200 94
Johnson Controls, Inc. 1,600 94
Torchmark Corp. 2,600 92
Equifax, Inc. 2,700 92
Eaton Corp. 1,300 92
AutoZone, Inc.* 2,800 92
Republic New York Corp. 2,000 91
Ceridian Corp.* 1,300 91
Times Mirror Co., Class A 1,600 90
Circuit City Stores, Inc. 1,800 90
Owens-Illinois, Inc.* 2,900 89
Hasbro, Inc. 2,450 89
Union Camp Corp. 1,300 88
Toys 'R' Us, Inc.* 5,200 88
Rubbermaid, Inc. 2,800 88
Perkin-Elmer Corp. 900 88
International Flavors & Fragrances, Inc. 2,000 88
Hilton Hotels Corp. 4,600 88
ITT Industries, Inc. 2,200 87
Ecolab, Inc. 2,400 87
Columbia Energy Group 1,500 87
PP & L Resources, Inc. 3,100 86
Comcast Corp., Class A 1,500 86
MARKET
NUMBER OF VALUE
SHARES (000)
- -------------------------------------------------------------------
Block (H & R), Inc. 1,900 $ 86
Cox Communications, Inc., Class A* 1,229 85
Biomet, Inc. 2,100 85
Amerada Hess Corp. 1,700 85
MGIC Investment Corp. 2,100 84
ALZA Corp.* 1,600 84
Baltimore Gas & Electric Co. 2,700 83
Tandy Corp. 2,000 82
Parametric Technology Corp.* 5,000 82
Dow Jones & Co., Inc. 1,700 82
PeopleSoft, Inc.* 4,300 81
Dollar General Corp. 3,375 80
Whirlpool Corp. 1,400 78
Sealed Air Corp.* 1,536 78
Northern States Power Co. 2,800 78
Bear Stearns Companies, Inc. 2,100 78
Allergan, Inc. 1,200 78
Knight-Ridder, Inc. 1,500 77
Grainger (W.W.), Inc. 1,800 75
Advanced Micro Devices, Inc.* 2,600 75
Allegheny Teledyne, Inc. 3,640 74
Champion International Corp. 1,800 73
Crown Cork & Seal Co., Inc. 2,300 71
Willamette Industries, Inc. 2,100 70
Nucor Corp. 1,600 69
KLA-Tencor Corp.* 1,600 69
Harcourt General, Inc. 1,300 69
Reynolds Metals Co. 1,300 68
Ashland, Inc. 1,400 68
Anadarko Petroleum Corp. 2,200 68
Eastman Chemical Co. 1,500 67
Parker-Hannifin Corp. 2,025 66
Fluor Corp. 1,500 64
SuperValu, Inc. 2,200 62
Sunoco, Inc. 1,700 61
Laidlaw, Inc., Class B, (non-voting) 6,100 61
PACCAR, Inc. 1,450 60
Bausch & Lomb, Inc. 1,000 60
Temple-Inland, Inc. 1,000 59
Morton International, Inc. 2,400 59
The Notes to Financial Statements are and integral part of these statements.
<PAGE>
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CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND INVESTMENTS IN SECURITIES December
31, 1998 (Continued) 8
MARKET
NUMBER OF VALUE
SHARES (000)
- -------------------------------------------------------------------
Pall Corp. 2,300 $ 58
Dillard Department Stores, Inc., Class A 2,000 57
Sigma-Aldrich Corp. 1,900 56
Phelps Dodge Corp. 1,100 56
Niagara Mohawk Power Co. 3,500 56
Mead Corp. 1,900 56
Adobe Systems, Inc. 1,200 56
Humana, Inc.* 3,100 55
Harris Corp. 1,500 55
Deluxe Corp. 1,500 55
Sonat, Inc. 2,000 54
- -------------------------------------------------------------------
TOTAL 400-LARGEST STOCKS 182,953
- -------------------------------------------------------------------
Placer Dome, Inc. 4,600 53
American Greetings Corp., Class A 1,300 53
Wendy's International, Inc. 2,400 52
Newmont Mining Corp. 2,863 52
Engelhard Corp. 2,650 52
Westvaco Corp. 1,850 50
Centex Corp. 1,100 50
Bard (C. R.), Inc. 1,000 50
Thermo Electron Corp.* 2,900 49
Mirage Resorts, Inc.* 3,300 49
Hercules, Inc. 1,800 49
Darden Restaurants, Inc. 2,700 49
Raychem Corp. 1,500 48
Goodyear Tire & Rubber Co. 1,300 47
Apache Corp. 1,800 46
Silicon Graphics, Inc.* 3,500 45
Brunswick Corp. 1,800 45
Stanley Works 1,600 44
Great Lakes Chemical Corp. 1,100 44
Thomas & Betts Corp.* 1,000 43
St. Jude Medical, Inc.* 1,550 43
Mallinckrodt Group, Inc. 1,400 43
Union Pacific Resources Group, Inc. 4,649 42
LSI Logic Corp.* 2,600 42
Armstrong World Industries., Inc. 700 42
National Semiconductor Corp.* 3,000 41
King World Productions, Inc.* 1,400 41
MARKET
NUMBER OF VALUE
SHARES (000)
- ----------------------------------------------------------------
Coors (Adolph) Co., Class B 700 $ 40
Consolidated Stores Corp.* 2,000 40
NICOR, Inc. 900 38
Meredith Corp. 1,000 38
Liz Claiborne, Inc. 1,200 38
Bemis Company, Inc. 1,000 38
Autodesk, Inc. 900 38
USX-U.S. Steel Group 1,600 37
Snap-On, Inc. 1,050 37
Navistar International Corp., Inc.* 1,300 37
Nalco Chemical Co. 1,200 37
Louisiana-Pacific Corp. 2,000 37
Ryder System, Inc. 1,400 36
Homestake Mining Co. 3,900 36
Crane Co. 1,200 36
Owens-Corning Fiberglas Corp. 1,000 35
HCR Manor Care, Inc.* 1,200 35
Scientific-Atlanta, Inc. 1,500 34
Kerr-McGee Corp. 900 34
Freeport McMoRan Copper & Gold, Inc.,
Class B 3,300 34
FMC Corp.* 600 34
Inco Ltd. 3,100 33
Cooper Tire & Rubber Co. 1,500 31
Case Corp. 1,400 31
Boise Cascade Corp. 1,000 31
National Service Industries, Inc. 800 30
Harrah's Entertainment, Inc.* 1,850 29
Alberto-Culver Co., Class B 1,100 29
Pulte Corp. 1,000 28
Peoples Energy Corp. 700 28
Tektronix, Inc. 900 27
Oryx Energy Co.* 2,000 27
McDermott International, Inc. 1,100 27
Ball Corp. 600 27
Longs Drug Stores Corp. 700 26
Andrew Corp.* 1,593 26
Shared Medical Systems Corp. 500 25
Cummins Engine Co., Inc. 700 25
Briggs & Stratton Corp. 500 25
Fleetwood Enterprises, Inc. 700 24
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, 1998 (Continued) 9
MARKET
NUMBER OF VALUE
SHARES (000)
- -------------------------------------------------------------------
Cabletron Systems, Inc.* 2,900 $ 24
Worthington Industries, Inc. 1,800 23
Payless ShoeSource, Inc.* 496 23
Millipore Corp. 800 23
ONEOK, Inc. 600 22
Grace (W.R.) & Co. 1,400 22
EG & G, Inc. 800 22
Autoliv, Inc. 579 22
Timken Co. 1,100 21
Ikon Office Solutions, Inc. 2,500 21
Great Atlantic & Pacific Tea Co., Inc. 700 21
Covance, Inc.* 725 21
Tupperware Corp. 1,200 20
Kaufman & Broad Home Corp. 700 20
Bethlehem Steel Corp.* 2,400 20
Pep Boys-Manny, Moe & Jack 1,200 19
Moore Corporation Ltd. 1,700 19
Potlatch Corp. 500 18
NACCO Industries, Inc., Class A 200 18
Jostens, Inc. 700 18
Fruit of The Loom, Inc., Class A* 1,300 18
Eastern Enterprises 400 18
Springs Industries, Inc., Class A 400 17
Helmerich & Payne, Inc. 900 17
Cyprus Amax Minerals Co. 1,700 17
Battle Mountain Gold Co. 4,200 17
Rowan Companies, Inc.* 1,600 16
Earthgrains Co. 512 16
Waddell & Reed Financial, Inc., Class B* 636 15
Reebok International Ltd. 1,000 15
Polaroid Corp. 800 15
Newport News Shipbuilding & Dry Dock Co. 440 15
Data General Corp.* 900 15
Aeroquip-Vickers, Inc. 500 15
Russell Corp. 700 14
El Paso Natural Gas Co. 408 14
Nielson Media Research, Inc.* 700 13
Milacron, Inc. 700 13
Corn Products International, Inc.* 425 13
ChoicePoint, Inc.* 180 12
MARKET
NUMBER OF VALUE
SHARES (000)
- ----------------------------------------------------------------
Foster Wheeler Corp. 800 $ 11
Asarco, Inc. 700 11
Inland Steel Industries, Inc. 600 10
Harnischfeger Industries, Inc. 900 9
Safety-Kleen Corp.* 560 8
CommScope, Inc.* 500 8
U.S. Industries, Inc. 320 6
Quest Diagnostics, Inc.* 362 6
Harland (J.H.) Co. 400 6
Donnelley, (R.H.) Corp. 420 6
Strattec Security Corp.* 180 5
GC Companies, Inc.* 120 5
Bassett Furniture Industries, Inc. 200 5
Schweitzer-Mauduit International, Inc. 230 4
Roadway Express, Inc. 300 4
Bally Total Fitness Holding Co.* 175 4
Aviall, Inc. 300 4
Agribrands International, Inc.* 130 4
Waddell & Reed Financial, Inc., Class A 147 3
Octel Corp.* 200 3
General Semiconductor, Inc.* 375 3
Abercrombie and Fitch Co., Class A* 46 3
Highlands Insurance Group, Inc.* 160 2
Crown Vantage, Inc.* 120 1
Crescendo Pharmaceuticals, Class A* 50 1
Brunos, Inc.* 31 1
Allergan Specialty Ther., Inc., Class A* 40 1
------------
TOTAL COMMON STOCKS - 90.3%
(Cost - $105,664,207) 186,371
------------
PREFERRED STOCK - 0 .0%
(Cost - $28,291)
Aetna, Inc., Class C* 142 11
Sealed Air Corp., Class A 475 25
------------
36
------------
WARRANTS -0 .0%
(Cost - $162)
Morrison Knudsen Corp., Expire 2003* 46 1
------------
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND 10
MARKET
PRINCIPAL VALUE
(000) (000)
- -------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 10.1%
COMMERCIAL PAPER - 9.6%
American Express Co.,
6.0%, 1/4/99 $ 2,760 $ 2,760
6.1%, 1/5/99 4,895 4,895
Ford Motor Credit Co., 5.76%, 1/6/99 5,807 5,807
General Electric Capital Corp.,
4.9%, 1/7/99 6,405 6,405
------------
19,867
------------
U.S. GOVERNMENT - .5%
U. S. Treasury Bills,
5.02%, 1/7/99** 616 615
5.0%, 1/21/99** 415 414
------------
1,029
------------
TOTAL SHORT-TERM OBLIGATIONS
(Cost - $20,896,332) 20,896
------------
TOTAL INVESTMENTS IN SECURITIES - 100.4%
(Total Cost - $126,588,992) 207,304
Liabilities, Less Cash and Other Assets - (0.4%) (829)
------------
NET ASSETS - 100.0% $ 206,475
============
* Non-income producing securities.
** Pledged as collateral for Stock Index Futures Contracts. At December 31,
1998, the Fund was long 65 S&P 500 Futures Contracts expiring in March,
1999. Unrealized gains amounted to $1,131,813. Underlying face value was
$18,843,175 and underlying market value was $19,974,988.
- ----------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
(IN THOUSANDS)
--------------
ASSETS:
Investments at market value
(Cost - $126,588,992) $ 207,304
Cash 3
Receivable for investments sold 1,088
Receivable for fund shares sold 95
Dividend receivable 196
Interest receivable 7
Variation margin receivables 55
Investment for trustees' deferred
compensation plan 147
Other 78
-----------
TOTAL ASSETS 208,973
-----------
LIABILITIES:
Payable for investments purchased 2,177
Payable for fund shares repurchased 9
Deferred trustees' fees payable 147
Accrued advisory fees payable 42
Other accrued expenses (including $67,635
due to affiliate) 123
-----------
TOTAL LIABILITIES 2,498
-----------
NET ASSETS (Equivalent to $19.73 per
share based on 10,466,653 shares
outstanding) $ 206,475
===========
COMPONENTS OF NET ASSETS:
Paid in capital $ 123,175
Distributions in excess of net
investment income (18)
Unrealized appreciation of investments 81,848
Accumulated net realized gain 1,470
-----------
NET ASSETS $ 206,475
===========
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND 11
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1998
(IN THOUSANDS)
-------------
INVESTMENT INCOME
INCOME:
Dividends $ 1,834
Interest 1,948
---------
3,782
EXPENSES:
Investment advisory fees 395
Custodian fees 178
Administrative services 71
Auditing and legal fees 26
Shareholder reports 10
Trustees' fees 9
Other 3
---------
Total expenses 692
Less expenses waived by advisor (297)
---------
Net Expenses 395
NET INVESTMENT INCOME 3,387
---------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from investments 737
Net realized gain from futures contracts 2,706
Unrealized appreciation of investments 34,804
Net unrealized gain from futures contracts 1,132
---------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 39,379
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $42,766
=========
- ----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31,
1998 1997
--------------- ----------------
(IN THOUSANDS)
----------------------------------
OPERATIONS:
Net investment income $ 3,387 $ 1,731
Net realized gain from investments 737 2,336
Net realized gain from futures contracts 2,706 1,451
Unrealized appreciation of investments 34,804 19,269
Unrealized appreciation on
futures contracts 1,132 815
--------------- ----------------
Net increase in net assets
from operations 42,766 25,602
--------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
($.40 and $.32 per share) (4,108) (2,245)
From net realized gain
($.18 and $.36 per share) (1,817) (2,517)
--------------- ----------------
Total distributions to shareholders (5,925) (4,762)
--------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Net increase from capital share
transactions 53,326 23,955
--------------- ----------------
NET INCREASE IN NET ASSETS 90,167 44,795
NET ASSETS:
Beginning of period 116,308 71,513
--------------- ----------------
End of period (Including overdistributed
net investment income of $18,123
and $65,539 respectively) $ 206,475 $ 116,308
=============== ================
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. CIGNA Variable Products S&P 500 Index
Fund (the "Fund") 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. 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.
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
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND NOTES TO FINANCIAL STATEMENTS 13
(CONTINUED)
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. CII
has 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 0.25% of average daily
net assets until May 1, 2000, and afterwards to the extent described in the
Fund's 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 twelve months ended December
31, 1998, the Fund paid or accrued $28,636.
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 $61,654,999 and $2,763,565,
respectively, for the year ended December 31, 1998. As of December 31, 1998, the
cost of securities, excluding short term obligations, held for Federal income
tax purposes was $127,016,610. At December 31, 1998, unrealized appreciation for
Federal income tax purposes aggregated $80,287,779, of which $81,941,965 related
to appreciated securities and $1,654,186 related to depreciated securities.
6. CAPITAL STOCK. The Fund offers an unlimited number of shares of beneficial
interest without par value. Of the 10,466,653 shares outstanding at December 31,
1998, 10,318,142, shares were held by State Street Bank and Trust Company as
custodian under an agreement with Connecticut General Life Insurance Company
("CG Life") relating to variable annuity and variable universal life insurance
contracts issued by that company. The remainder, representing 1.4% of the shares
outstanding, was held by an employee benefit plan established by CG Life for
certain of its employees.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
Transactions in capital stock were as follows:
Year Ended Year Ended
December 31, 1998 December 31, 1997
Shares Amount Shares Amount
(000) (000) (000) (000)
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Amount sold 3,608 $ 61,841 1,928 $ 28,750
Amount issued to shareholders
in reinvestment of dividends
and distributions 320 5,925 311 4,762
--------- ----------- -------- -----------
3,928 67,766 2,239 33,512
Amount redeemed (811) (14,440) (660) (9,557)
--------- ----------- -------- -----------
Net increase 3,117 $ 53,326 1,579 $ 23,955
========= =========== ======== ===========
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND NOTES TO FINANCIAL STATEMENTS
(CONTINUED) 14
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,
1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.83 $ 12.40 $ 10.75 $ 8.19 $ 9.20
-------- -------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income* 0.34 0.25 0.22 0.21 0.19
Net realized and unrealized gain (loss) 4.14 3.86 2.17 2.80 (0.13)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 4.48 4.11 2.39 3.01 0.06
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
From net investment income (0.40) (0.32) (0.29) (0.27) (0.14)
From capital gains (0.18) (0.36) (0.45) (0.18) (0.85)
In excess of net capital gains - - - - (0.08)
------ ------- ------- ------- ------
TOTAL DISTRIBUTIONS (0.58) (0.68) (0.74) (0.45) (1.07)
------ ------- ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 19.73 $ 15.83 $ 12.40 $ 10.75 $ 8.19
======== ======== ======== ======== =======
TOTAL INVESTMENT RETURN 28.60% 33.35% 22.48% 36.82% 0.67%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $ 206,475 ** $116,308 ** $ 71,513 ** $ 66,283 $ 54,728
Ratio of operating expenses to average net assets 0.25% a 0.25% a 0.60% a 0.73% 0.78%
Ratio of net investment income to average net assets 2.14% b 1.93% b 1.78% b 2.05% 2.23%
Portfolio turnover 2% 4% 4% 4% 4%
</TABLE>
a. Ratios of expenses to average net assets prior to expense reimbursements were
0.44%, 0.55% and 0.64% for the 1998, 1997 and 1996 periods, respectively.
b. Ratios of net investment income to average net assets prior to expense
reimbursements were 1.95%, 1.63%, and 1.74% for the 1998, 1997 and 1996
periods, respectively.
* 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.
** Total return would have been lower if certain expenses had not been
reimbursed by the Advisor.
<PAGE>
- --------------------------------------------------------------------------------
15
REPORT OF INDEPENDENT ACCOUNTANTS
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 (the "Fund") at December 31, 1998, 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, 1998 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 12, 1999
<PAGE>
- --------------------------------------------------------------------------------
CIGNA VARIABLE PRODUCTS S&P 500 INDEX FUND 16
TRUSTEES OFFICERS
Hugh R. Beath Richard H. Forde
ADVISORY DIRECTOR, CHAIRMAN OF THE BOARD
ADMEDIA CORPORATE ADVISORS, INC. AND PRESIDENT
Richard H. Forde Alfred A. Bingham III
SENIOR MANAGING DIRECTOR, VICE PRESIDENT AND TREASURER
CIGNA INVESTMENTS, INC.
Russell H. Jones Jeffrey S. Winer
VICE PRESIDENT AND TREASURER, VICE PRESIDENT AND SECRETARY
KAMAN CORPORATION
Thomas C. Jones CUSTODIAN AND TRANSFER AGENT
PRESIDENT, CIGNA INVESTMENT State Street Bank and Trust Company
MANAGEMENT AND CIGNA P.O. Box 2351
INVESTMENTS, INC. Boston, Massachusetts 02107
Paul J. McDonald INVESTMENT ADVISER:
SENIOR EXECUTIVE VICE PRESIDENT CIGNA Investment, Inc.
AND CHIEF ADMINISTRATIVE OFFICER, 900 Cottage Grove Road
FRIENDLY ICE CREAM CORPORATION Hartford, Connecticut 06152
- --------------------------------------------------------------------------------
"Standard & Poor's(R)," "S&P(R)," "S&P 500(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.
