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LIFE & ANNUITY TRUST
ASSET ALLOCATION FUND
GROWTH AND INCOME FUND
MONEY MARKET FUND
U.S. GOVERNMENT ALLOCATION FUND
SUPPLEMENT DATED JANUARY 2, 1996
TO THE PROSPECTUS DATED MAY 1, 1995,
AS PREVIOUSLY SUPPLEMENTED, AND THE
STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1995
Effective January 1, 1996, BZW Barclays Global Fund Advisors ("BGFA")
replaced Wells Fargo Nikko Investment Advisors ("WFNIA") as sub-investment
adviser to the Asset Allocation Fund and the U.S. Government Allocation Fund
(the "Allocation Funds") of Life & Annuity Trust. BGFA was created by the
reorganization of WFNIA with and into an affiliate of Wells Fargo Institutional
Trust Company, N.A. Pursuant to a Sub-Advisory Contract with each Allocation
Fund and subject to the overall supervision of Wells Fargo Bank, the investment
adviser to each Allocation Fund, BGFA is responsible for the day-to-day
portfolio management of each Allocation Fund. BGFA will continue to employ
substantially the same personnel and will continue to use the computer-based
investment model developed and previously used by WFNIA to determine the
recommended mix of assets in each Allocation Fund's portfolio. BGFA is
entitled to receive monthly fees at the annual rate of 0.20% and 0.15% of the
average daily net assets of the Asset Allocation and U.S. Government Allocation
Fund, respectively, as compensation for its sub-advisory services. BGFA is an
indirect subsidiary of Barclays Bank PLC and is located at 45 Fremont Street,
San Francisco, CA 94105. As of January 1, 1996, BGFA and its affiliates
provide investment advisory services for approximately $220 billion of assets
under management. As of January 1, 1996, Wells Fargo Bank provides investment
adviory services for approximately $33 billion of assets.
Effective January 1, 1996, WFITC, due to a change in control of its
outstanding voting securities, became a wholly owned subsidiary of BZW Barclays
Global Investors Holdings Inc. and WFITC was renamed BZW Barclays Global
Investors, N.A. ("BGI"). BGI currently acts as custodian to each Allocation
Fund. BGFA is a subsidiary of BGI. BGI will not be entitled to receive
compensation for its custodial services to the Allocation Funds so long as BGFA
is entitled to receive fees for providing investment advisory services to such
Funds. The principal business address of BGI is 45 Fremont Street, San
Francisco, California 94105.
The Prospectus and Statement of Additional Information describing each
Allocation Fund, the Growth and Income Fund and the Money Market Fund is
amended accordingly.
