<PAGE> 1
VINTAGE ANNUITY
ANNUAL REPORT
THE TRAVELERS FUND BD FOR VARIABLE ANNUITIES
DECEMBER 31, 1995
[LOGO]
THE TRAVELERS INSURANCE COMPANY
ONE TOWER SQUARE
HARTFORD, CONNECTICUT 06183
<PAGE> 2
THE TRAVELERS FUND BD
FOR VARIABLE ANNUITIES
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments in eligible funds at market value:
Smith Barney/Travelers Series Fund Inc.:
Alliance Growth Portfolio, 10,001,039 shares (cost $121,591,429) . . . . . . . . $134,613,989
American Capital Enterprise Portfolio, 3,330,913 shares (cost $40,779,755) . . . 42,968,778
TBC Managed Income Portfolio, 1,297,826 shares (cost $13,702,089) . . . . . . . 14,094,386
G.T. Global Strategic Income Portfolio, 892,517 shares (cost $9,094,420) . . . . 9,701,655
Smith Barney High Income Portfolio, 2,391,941 shares (cost $25,842,064) . . . . 26,526,620
Smith Barney International Equity Portfolio, 5,811,337 shares (cost $59,320,996) 62,065,081
Smith Barney Income and Growth Portfolio, 3,766,892 shares (cost $43,084,361) . 48,442,236
Smith Barney Money Market Portfolio, 47,355,849 shares (cost $47,355,849) . . . 47,355,849
Putnam Diversified Income Portfolio, 3,411,029 shares (cost $37,062,862) . . . . 38,510,523
Smith Barney Pacific Basin Portfolio, 821,044 shares (cost $7,680,475) . . . . . 7,586,445
MFS Total Return Portfolio, 5,067,401 shares (cost $55,295,242) . . . . . . . . 60,302,077
AIM Capital Appreciation Portfolio, 2,481,702 shares (cost $24,394,687) . . . . 23,824,342
Smith Barney Series Fund:
Total Return Portfolio, 3,649,021 shares (cost $44,190,255) . . . . . . . . . . 46,488,528
------------
Total Investments (cost $529,394,484) . . . . . . . . . . . . . . . . . . . . 562,480,509
------------
Receivables:
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,496,694
Purchase payments and transfers from other Travelers accounts . . . . . . . . . . . 4,935,082
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 696
------------
Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 579,912,981
------------
LIABILITIES:
Payable for contract surrenders and transfers to other Travelers accounts . . . . . . . 389,841
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,211
------------
Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487,052
------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $579,425,929
============
</TABLE>
See Notes to Financial Statements
-1-
<PAGE> 3
THE TRAVELERS FUND BD
FOR VARIABLE ANNUITIES
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,236,242
EXPENSES:
Insurance charges . . . . . . . . . . . . . . . . . . . . . . . $ 2,942,696
Administrative fees . . . . . . . . . . . . . . . . . . . . . . 408,008
Total expenses . . . . . . . . . . . . . . . . . . . . . . . 3,350,704
----------- -----------
Net investment income . . . . . . . . . . . . . . . . . . . 10,885,538
-----------
REALIZED GAIN AND CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain from investment transactions:
Proceeds from investments sold . . . . . . . . . . . . . . . 14,726,653
Cost of investments sold . . . . . . . . . . . . . . . . . . 14,522,551
-----------
Net realized gain . . . . . . . . . . . . . . . . . . . . . 204,102
Change in unrealized gain (loss) on investments:
Unrealized loss at December 31, 1994 . . . . . . . . . . . . (2,023,137)
Unrealized gain at December 31, 1995 . . . . . . . . . . . . 33,086,025
-----------
Net change in unrealized gain (loss) for the year . . . . . 35,109,162
-----------
Net realized gain and change in unrealized gain (loss) . . 35,313,264
-----------
Net increase in net assets resulting from operations . . . . $46,198,802
===========
</TABLE>
See Notes to Financial Statements
-2-
<PAGE> 4
THE TRAVELERS FUND BD
FOR VARIABLE ANNUITIES
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995 AND
THE PERIOD JUNE 20, 1994 (DATE OPERATIONS COMMENCED)
TO DECEMBER 31, 1994
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . $ 10,885,538 $ 434,171
Net realized gain (loss) from investment transactions . . . . . 204,102 (3,136)
Net change in unrealized gain (loss) on investments . . . . . . 35,109,162 (2,023,137)
------------ ------------
Net increase (decrease) in net assets resulting from operations 46,198,802 (1,592,102)
------------ ------------
UNIT TRANSACTIONS:
Participant purchase payments
(applicable to 354,498,881 and 107,339,545 units, respectively) 402,861,925 108,566,524
Participant transfers from other Travelers accounts
(applicable to 71,152,191 and 6,423,931 units, respectively) 80,569,733 6,471,798
Administrative charges
(applicable to 47,422 and 811 units, respectively) . . . . . (55,076) (830)
Contract surrenders
(applicable to 8,346,617 and 761,076 units, respectively) . . (7,774,891) (766,681)
Participant transfers to other Travelers accounts
(applicable to 42,873,181 and 5,473,688 units, respectively) (47,707,531) (5,520,208)
Other payments to participants
(applicable to 1,036,056 and 651,396 units, respectively) . . (1,169,880) (655,654)
------------ ------------
Net increase in net assets resulting from unit transactions 426,724,280 108,094,949
------------ ------------
Net increase in net assets . . . . . . . . . . . . . . . . 472,923,082 106,502,847
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . 106,502,847 -
------------ ------------
End of period . . . . . . . . . . . . . . . . . . . . . . . . . $579,425,929 $106,502,847
============ ============
</TABLE>
See Notes to Financial Statements
-3-
<PAGE> 5
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Travelers Fund BD for Variable Annuities ("Fund BD") is a separate
account of The Travelers Insurance Company ("The Travelers"), an
indirect wholly owned subsidiary of Travelers Group Inc., and is
available for funding certain variable annuity contracts issued by The
Travelers. Fund BD is registered under the Investment Company Act of
1940, as amended, as a unit investment trust.
Participant purchase payments applied to Fund BD are invested in one
or more eligible funds in accordance with the selection made by the
contract owner. As of December 31, 1995, the eligible funds available
under Fund BD are: Alliance Growth Portfolio, American Capital
Enterprise Portfolio, TBC Managed Income Portfolio, G.T. Global
Strategic Income Portfolio, Smith Barney High Income Portfolio, Smith
Barney International Equity Portfolio, Smith Barney Income and Growth
Portfolio, Smith Barney Money Market Portfolio, Putnam Diversified
Income Portfolio, Smith Barney Pacific Basin Portfolio, MFS Total
Return Portfolio, and AIM Capital Appreciation Portfolio of Smith
Barney/Travelers Series Fund Inc.; and Total Return Portfolio of Smith
Barney Series Fund. Smith Barney/Travelers Series Fund Inc. is
incorporated under Maryland law. Smith Barney Series Fund is
registered as a Massachusetts business trust. Both Funds are managed
by Smith Barney Mutual Funds Management Inc., an indirect wholly owned
subsidiary of Travelers Group Inc.
The following is a summary of significant accounting policies
consistently followed by Fund BD in the preparation of its financial
statements. Certain prior period amounts have been reclassified to
conform to the current year's presentation.
SECURITY VALUATION. Investments are valued daily at the net asset
values per share of the underlying funds.
FEDERAL INCOME TAXES. The operations of Fund BD form a part of the
total operations of The Travelers and are not taxed separately. The
Travelers is taxed as a life insurance company under the Internal
Revenue Code of 1986, as amended (the "Code"). Under existing federal
income tax law, no taxes are payable on the investment income of Fund
BD. Fund BD is not taxed as a "regulated investment company" under
Subchapter M of the Code.
OTHER. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Security transactions are accounted for on the trade date. Dividend
income is recorded on the ex-dividend date.
2. INVESTMENTS
Purchases and sales of investments aggregated $436,168,475 and
$14,726,653, respectively, for the year ended December 31, 1995.
Realized gains and losses from investment transactions are reported on
an identified cost basis. The cost of investments in eligible funds
was $529,394,484 at December 31, 1995. Gross unrealized appreciation
for all investments at December 31, 1995 was $33,750,400. Gross
unrealized depreciation for all investments at December 31, 1995 was
$664,375.
3. CONTRACT CHARGES
Insurance charges are paid to The Travelers for the mortality and
expense risks assumed by The Travelers. For contracts with a standard
death benefit provision, these charges are equivalent to 1.02% of the
average net assets of Fund BD on an annual basis. For contracts with
an enhanced death benefit provision, these charges are equivalent to
1.30% of the average net assets of Fund BD on an annual basis.
For contracts in the accumulation phase with a contract value less
than $40,000, an annual charge of $30 (prorated for partial periods)
is deducted from participant account balances and paid to The
Travelers to cover contract administrative charges.
Administrative fees are paid to The Travelers for administrative
expenses incurred by The Travelers. This charge is equivalent to 0.15%
of the average net assets of Fund BD on an annual basis.
-4-
<PAGE> 6
NOTES TO FINANCIAL STATEMENTS - CONTINUED
No sales charge is deducted from participant purchase payments when
they are received. However, The Travelers generally assesses a
contingent deferred sales charge of up to 6% if a participant's
purchase payment is surrendered within six years of its payment date.
Contract surrender payments are stated prior to the deduction of
$159,900 and $70 of contingent deferred sales charges for the year
ended December 31, 1995 and the period June 20, 1994 (date operations
commenced) to December 31, 1994, respectively.
4. NET CONTRACT OWNERS' EQUITY
<TABLE>
<CAPTION>
DECEMBER 31, 1995
ACCUMULATION ANNUITY UNIT NET
UNITS UNITS VALUE ASSETS
----- ----- ----- ------
<S> <C> <C> <C> <C>
Smith Barney/Travelers Series Fund Inc.:
Alliance Growth Portfolio
Standard . . . . . . . . . . . . 79,318,813 14,963 $1.396 $110,727,241
Enhanced . . . . . . . . . . . . 20,570,563 - 1.390 28,588,210
American Capital Enterprise Portfolio
Standard . . . . . . . . . . . . 26,472,613 - 1.362 36,052,454
Enhanced . . . . . . . . . . . . 6,569,199 - 1.356 8,908,332
TBC Managed Income Portfolio
Standard . . . . . . . . . . . . 11,294,401 - 1.142 12,894,999
Enhanced . . . . . . . . . . . . 1,782,544 - 1.137 2,026,597
G.T. Global Strategic Income Portfolio
Standard . . . . . . . . . . . . 6,831,898 7,822 1.121 7,664,484
Enhanced . . . . . . . . . . . . 2,179,982 - 1.116 2,432,451
Smith Barney High Income Portfolio
Standard . . . . . . . . . . . . 20,136,396 - 1.162 23,404,348
Enhanced . . . . . . . . . . . . 3,757,709 14,084 1.157 4,365,201
Smith Barney International Equity Portfolio
Standard . . . . . . . . . . . . 47,288,696 27,818 1.050 49,692,250
Enhanced . . . . . . . . . . . . 12,187,363 - 1.046 12,744,554
Smith Barney Income and Growth Portfolio
Standard . . . . . . . . . . . . 31,342,864 - 1.291 40,456,893
Enhanced . . . . . . . . . . . . 7,140,022 - 1.285 9,176,851
Smith Barney Money Market Portfolio
Standard . . . . . . . . . . . . 36,636,844 - 1.058 38,766,381
Enhanced . . . . . . . . . . . . 9,052,010 10,832 1.054 9,548,673
Putnam Diversified Income Portfolio
Standard . . . . . . . . . . . . 26,058,405 19,255 1.170 30,511,423
Enhanced . . . . . . . . . . . . 8,637,241 12,948 1.165 10,077,754
Smith Barney Pacific Basin Portfolio
Standard . . . . . . . . . . . . 6,012,322 11,814 0.910 5,482,716
Enhanced . . . . . . . . . . . . 2,351,049 - 0.906 2,130,650
MFS Total Return Portfolio
Standard . . . . . . . . . . . . 41,793,597 19,648 1.216 50,838,295
Enhanced . . . . . . . . . . . . 9,472,991 - 1.211 11,468,649
AIM Capital Appreciation Portfolio
Standard . . . . . . . . . . . . 20,366,025 - 0.958 19,506,963
Enhanced . . . . . . . . . . . . 5,394,325 - 0.957 5,163,603
Smith Barney Series Fund:
Total Return Portfolio
Standard . . . . . . . . . . . . 32,563,665 - 1.251 40,720,342
Enhanced . . . . . . . . . . . . 4,873,580 - 1.247 6,075,615
------------
Net Contract Owners' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $579,425,929
============
</TABLE>
-5-
<PAGE> 7
NOTES TO FINANCIAL STATEMENTS - CONTINUED
5. SCHEDULE OF FUND BD OPERATIONS AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995 AND THE PERIOD JUNE 20, 1994
(DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1994
<TABLE>
<CAPTION>
ALLIANCE GROWTH AMERICAN CAPITAL TBC MANAGED
PORTFOLIO ENTERPRISE PORTFOLIO INCOME PORTFOLIO
-------------------------- ------------------------ ------------------------
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends . . . . . . . . . . . . . . . . $ 4,161,477 $ 282,361 $ 1,467,553 $ 21,050 $ 735,632 $ 49,991
------------ ----------- ----------- ---------- ----------- ----------
EXPENSES:
Insurance charges . . . . . . . . . . . . 756,535 67,623 196,954 14,518 86,861 10,802
Administrative fees . . . . . . . . . . . 104,779 9,140 27,184 1,949 12,219 1,489
------------ ----------- ----------- ---------- ----------- ----------
Net investment income (loss) . . . . . 3,300,163 205,598 1,243,415 4,583 636,552 37,700
------------ ----------- ----------- ---------- ----------- ----------
REALIZED GAIN (LOSS) AND CHANGE IN
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment
transactions:
Proceeds from investments sold . . . 420,100 5,096 137,452 35,014 175,140 20,259
Cost of investments sold . . . . . . 325,568 5,111 108,756 33,739 170,011 20,167
------------ ----------- ----------- ---------- ----------- ----------
Net realized gain (loss) . . . . . 94,532 (15) 28,696 1,275 5,129 92
------------ ----------- ----------- ---------- ----------- ----------
Change in unrealized gain (loss) on
investments:
Unrealized gain (loss) beginning of
period . . . . . . . . . . . . . . 141,949 - 32,282 - (51,965) -
Unrealized gain (loss) end of period 13,022,560 141,949 2,189,023 32,282 392,297 (51,965)
------------ ----------- ----------- ---------- ----------- ----------
Net change in unrealized gain (loss)
for the period . . . . . . . . . . . . 12,880,611 141,949 2,156,741 32,282 444,262 (51,965)
------------ ----------- ----------- ---------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations . . . . . 16,275,306 347,532 3,428,852 38,140 1,085,943 (14,173)
------------ ----------- ----------- ---------- ----------- ----------
UNIT TRANSACTIONS:
Participant purchase payments . . . . . . 86,330,764 23,776,112 32,824,166 4,637,048 9,503,149 3,694,743
Participant transfers from other
Travelers accounts . . . . . . . . . . 18,954,600 1,597,148 6,023,872 232,338 1,402,447 182,215
Administrative charges . . . . . . . . . (15,912) (198) (3,138) (34) (1,145) (12)
Contract surrenders . . . . . . . . . . . (1,885,730) (67,588) (349,775) (24,746) (258,982) (6,923)
Participant transfers to other
Travelers accounts . . . . . . . . . . (5,093,545) (595,026) (1,671,606) (88,314) (581,784) (33,091)
Other payments to participants . . . . . (224,238) (83,773) (23,650) (62,367) (42,780) (8,011)
------------ ----------- ----------- ---------- ----------- ----------
Net increase in net assets resulting
from unit transactions . . . . . . . . 98,065,939 24,626,675 36,799,869 4,693,925 10,020,905 3,828,921
------------ ----------- ----------- ---------- ----------- ----------
Net increase in net assets . . . . . 114,341,245 24,974,207 40,228,721 4,732,065 11,106,848 3,814,748
NET ASSETS:
Beginning of period . . . . . . . . . . 24,974,207 - 4,732,065 - 3,814,748 -
------------ ----------- ----------- ---------- ----------- ----------
End of period . . . . . . . . . . . . . $139,315,452 $24,974,207 $44,960,786 $4,732,065 $14,921,596 $3,814,748
============ =========== =========== ========== =========== ==========
</TABLE>
-6-
<PAGE> 8
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
SMITH BARNEY SMITH BARNEY
G.T. GLOBAL STRATEGIC SMITH BARNEY INTERNATIONAL EQUITY INCOME AND GROWTH
INCOME PORTFOLIO HIGH INCOME PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------- -------------------------- -------------------------- --------------------------
1995 1994 1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
$ 374,859 $ 31,413 $ 1,166,940 $ 86,229 $ 71,145 $ - $ 823,312 $ 51,640
----------- ---------- ----------- ---------- ----------- ----------- ----------- ----------
66,231 9,319 128,351 10,840 388,285 51,391 249,794 25,244
9,065 1,269 18,031 1,461 53,700 6,926 34,696 3,390
----------- ---------- ----------- ---------- ----------- ----------- ----------- ----------
299,563 20,825 1,020,558 73,928 (370,840) (58,317) 538,822 23,006
----------- ---------- ----------- ---------- ----------- ----------- ----------- ----------
338,190 27,857 596,151 59,482 266,046 3,916 161,301 144,879
330,843 28,070 584,832 59,585 284,870 4,123 139,017 146,756
----------- ---------- ----------- ---------- ----------- ----------- ----------- ----------
7,347 (213) 11,319 (103) (18,824) (207) 22,284 (1,877)
----------- ---------- ----------- ---------- ----------- ----------- ----------- ----------
(179,821) - (113,195) - (1,182,006) - (196,959) -
607,235 (179,821) 684,556 (113,195) 2,744,085 (1,182,006) 5,357,875 (196,959)
----------- ---------- ----------- ---------- ----------- ----------- ----------- ----------
787,056 (179,821) 797,751 (113,195) 3,926,091 (1,182,006) 5,554,834 (196,959)
----------- ---------- ----------- ---------- ----------- ----------- ----------- ----------
1,093,966 (159,209) 1,829,628 (39,370) 3,536,427 (1,240,530) 6,115,940 (175,830)
----------- ---------- ----------- ---------- ----------- ----------- ----------- ----------
5,402,931 3,465,431 20,687,029 4,196,111 33,434,139 19,715,616 30,974,631 9,570,839
952,268 89,455 3,098,805 149,421 9,317,337 1,189,569 4,408,848 355,350
(1,400) (29) (1,805) (68) (10,690) (169) (4,438) (70)
(114,398) (30,970) (428,763) (5,626) (703,459) (59,760) (401,636) (47,477)
(459,906) (89,376) (1,450,391) (86,624) (2,189,208) (405,848) (898,610) (150,971)
(46,771) (5,057) (177,874) (924) (75,039) (71,582) (46,045) (66,787)
----------- ---------- ----------- ---------- ----------- ----------- ----------- ----------
5,732,724 3,429,454 21,727,001 4,252,290 39,773,080 20,367,826 34,032,750 9,660,884
----------- ---------- ----------- ---------- ----------- ----------- ----------- ----------
6,826,690 3,270,245 23,556,629 4,212,920 43,309,507 19,127,296 40,148,690 9,485,054
3,270,245 - 4,212,920 - 19,127,296 - 9,485,054 -
----------- ---------- ----------- ---------- ----------- ----------- ----------- ----------
$10,096,935 $3,270,245 $27,769,549 $4,212,920 $62,436,803 $19,127,296 $49,633,744 $9,485,054
=========== ========== =========== ========== =========== =========== =========== ==========
</TABLE>
-7-
<PAGE> 9
NOTES TO FINANCIAL STATEMENTS - CONTINUED
5. SCHEDULE OF FUND BD OPERATIONS AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995 AND THE PERIOD JUNE 20, 1994
(DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1994 (CONTINUED)
<TABLE>
<CAPTION>
SMITH BARNEY PUTNAM SMITH BARNEY
MONEY MARKET PORTFOLIO DIVERSIFIED INCOME PORTFOLIO PACIFIC BASIN PORTFOLIO
-------------------------- ---------------------------- -------------------------
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends . . . . . . . . . . . . . . . . $ 1,162,345 $ 94,196 $ 1,761,448 $ 78,181 $ 22,050 $ -
----------- ----------- ----------- ----------- ----------- ----------
EXPENSES:
Insurance charges . . . . . . . . . . . . 243,101 23,636 229,754 26,796 48,102 7,615
Administrative fees . . . . . . . . . . . 33,566 3,180 31,336 3,552 6,534 1,035
----------- ----------- ----------- ----------- ----------- ----------
Net investment income (loss) . . . . . 885,678 67,380 1,500,358 47,833 (32,586) (8,650)
----------- ----------- ----------- ----------- ----------- ----------
REALIZED GAIN (LOSS) AND CHANGE IN
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment
transactions:
Proceeds from investments sold . . . . 11,782,693 1,183,375 262,948 110,000 73,530 51,475
Cost of investments sold . . . . . . . 11,782,693 1,183,375 254,352 108,632 83,120 55,325
----------- ----------- ----------- ----------- ----------- ----------
Net realized gain (loss) . . . . . . . - - 8,596 1,368 (9,590) (3,850)
----------- ----------- ----------- ----------- ----------- ----------
CHANGE IN UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Unrealized gain (loss) beginning
of period . . . . . . . . . . . . . . - - (62,230) - (219,183) -
Unrealized gain (loss) end
of period . . . . . . . . . . . . . - - 1,447,661 (62,230) (94,030) (219,183)
----------- ----------- ----------- ----------- ----------- ----------
Net change in unrealized gain (loss)
for the period . . . . . . . . . . . - - 1,509,891 (62,230) 125,153 (219,183)
----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations . . . . . 885,678 67,380 3,018,845 (13,029) 82,977 (231,683)
----------- ----------- ----------- ----------- ----------- ----------
UNIT TRANSACTIONS:
Participant purchase payments . . . . . . 60,911,919 14,531,209 24,989,920 9,015,388 4,212,825 2,824,957
Participant transfers from other
Travelers accounts . . . . . . . . . . 8,062,764 705,274 4,735,354 650,976 992,308 113,041
Administrative charges . . . . . . . . . (2,266) (34) (4,087) (87) (933) (19)
Contract surrenders . . . . . . . . . . . (1,963,486) (387,190) (545,688) (31,316) (79,023) (24,246)
Participant transfers to other Travelers
accounts . . . . . . . . . . . . . . . (30,581,456) (3,580,900) (1,069,291) (51,683) (118,912) (111,286)
Other payments to participants . . . . . (82,649) (251,189) (97,206) (8,919) (11,072) (35,568)
----------- ----------- ----------- ----------- ----------- ----------
Net increase in net assets resulting from
unit transactions . . . . . . . . . . 36,344,826 11,017,170 28,009,002 9,574,359 4,995,193 2,766,879
----------- ----------- ----------- ----------- ----------- ----------
Net increase in net assets . . . . . . 37,230,504 11,084,550 31,027,847 9,561,330 5,078,170 2,535,196
NET ASSETS:
Beginning of period . . . . . . . . . . 11,084,550 - 9,561,330 - 2,535,196 -
----------- ----------- ----------- ----------- ----------- ----------
End of period . . . . . . . . . . . . . $48,315,054 $11,084,550 $40,589,177 $ 9,561,330 $ 7,613,366 $2,535,196
=========== =========== =========== =========== =========== ==========
</TABLE>
-8-
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
MFS AIM CAPITAL TOTAL RETURN
TOTAL RETURN PORTFOLIO APPRECIATION PORTFOLIO PORTFOLIO COMBINED
-------------------------- -------------------------- -------------------------- -----------------------------
1995 1994 1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,727,749 $ 61,075 $ 24,151 $ - $ 737,581 $ - $ 14,236,242 $ 756,136
----------- ----------- ----------- ----------- ----------- ---------- ------------ ------------
328,157 35,131 30,738 - 189,833 748 2,942,696 283,663
45,649 4,808 4,267 - 26,982 103 408,008 38,302
----------- ----------- ----------- ----------- ----------- ---------- ------------ ------------
1,353,943 21,136 (10,854) - 520,766 (851) 10,885,538 434,171
----------- ----------- ----------- ----------- ----------- ---------- ------------ ------------
469,662 76,984 3,087 - 40,353 105 14,726,653 1,718,442
419,739 76,589 3,199 - 35,551 106 14,522,551 1,721,578
----------- ----------- ----------- ----------- ----------- ---------- ------------ ------------
49,923 395 (112) - 4,802 (1) 204,102 (3,136)
----------- ----------- ----------- ----------- ----------- ---------- ------------ ------------
(205,882) - - - 13,873 - (2,023,137) -
5,006,835 (205,882) (570,345) - 2,298,273 13,873 33,086,025 (2,023,137)
----------- ----------- ----------- ----------- ----------- ---------- ------------ ------------
5,212,717 (205,882) (570,345) - 2,284,400 13,873 35,109,162 (2,023,137)
----------- ----------- ----------- ----------- ----------- ---------- ------------ ------------
6,616,583 (184,351) (581,311) - 2,809,968 13,021 46,198,802 (1,592,102)
----------- ----------- ----------- ----------- ----------- ---------- ------------ ------------
37,218,089 11,987,268 19,736,982 - 36,635,381 1,151,802 402,861,925 108,566,524
9,146,918 971,906 6,338,146 - 7,136,066 235,105 80,569,733 6,471,798
(6,585) (110) - - (2,677) - (55,076) (830)
(762,981) (80,839) (26,938) - (254,032) - (7,774,891) (766,681)
(2,036,463) (327,089) (796,313) - (760,046) - (47,707,531) (5,520,208)
(173,925) (61,477) - - (168,631) - (1,169,880) (655,654)
----------- ----------- ----------- ----------- ----------- ---------- ------------ ------------
43,385,053 12,489,659 25,251,877 - 42,586,061 1,386,907 426,724,280 108,094,949
----------- ----------- ----------- ----------- ----------- ---------- ------------ ------------
50,001,636 12,305,308 24,670,566 - 45,396,029 1,399,928 472,923,082 106,502,847
12,305,308 - - - 1,399,928 - 106,502,847 -
----------- ----------- ----------- ----------- ----------- ---------- ------------ ------------
$62,306,944 $12,305,308 $24,670,566 $ - $46,795,957 $1,399,928 $579,425,929 $106,502,847
=========== =========== =========== =========== =========== ========== ============ ============
</TABLE>
-9-
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS - CONTINUED
6. SCHEDULE OF ACCUMULATION AND ANNUITY UNITS FOR FUND BD
FOR THE YEAR ENDED DECEMBER 31, 1995 AND THE PERIOD JUNE 20, 1994
(DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1994
<TABLE>
<CAPTION>
AMERICAN CAPITAL TBC MANAGED
ALLIANCE GROWTH PORTFOLIO ENTERPRISE PORTFOLIO INCOME PORTFOLIO
-------------------------- -------------------------- --------------------------
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period . . . . . . . . 23,860,599 - 4,558,743 - 3,829,067 -
Accumulation units purchased and
transferred to other Travelers
accounts . . . . . . . . . . . . . 81,629,940 24,584,144 30,054,909 4,729,348 10,065,751 3,877,253
Accumulation units redeemed and
transferred to other Travelers
accounts . . . . . . . . . . . . . (5,583,996) (723,545) (1,571,840) (170,605) (817,873) (48,186)
Annuity units . . . . . . . . . . . (2,204) - - - - -
---------- ---------- ---------- ---------- ---------- ----------
Accumulation and annuity units
end of period . . . . . . . . . . . 99,904,339 23,860,599 33,041,812 4,558,743 13,076,945 3,829,067
========== ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
G.T. GLOBAL STRATEGIC SMITH BARNEY SMITH BARNEY INTERNATIONAL
INCOME PORTFOLIO HIGH INCOME PORTFOLIO EQUITY PORTFOLIO
-------------------------- -------------------------- -------------------------
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period . . . . . . . . 3,462,455 - 4,267,721 - 20,039,144 -
Accumulation units purchased and
transferred from other Travelers
accounts . . . . . . . . . . . . . 6,161,791 3,588,907 21,533,742 4,360,944 42,509,931 20,573,922
Accumulation units redeemed and
transferred to other Travelers
accounts . . . . . . . . . . . . . (603,392) (126,452) (1,892,168) (92,280) (3,041,102) (534,778)
Annuity units . . . . . . . . . . . (1,152) - (1,106) (943) (4,096) -
---------- ---------- ---------- ---------- ---------- ----------
Accumulation and annuity units
end of period . . . . . . . . . . . 9,019,702 3,462,455 23,908,189 4,267,721 59,503,877 20,039,144
========== ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
SMITH BARNEY INCOME SMITH BARNEY PUTNAM DIVERSIFIED
AND GROWTH PORTFOLIO MONEY MARKET PORTFOLIO INCOME PORTFOLIO
-------------------------- -------------------------- -------------------------
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period . . . . . . . . 9,668,753 - 10,919,262 - 9,486,475 -
Accumulation units purchased and
transferred from other Travelers
accounts . . . . . . . . . . . . . 29,977,228 9,936,934 66,074,922 15,099,263 26,813,384 9,577,518
Accumulation units redeemed and
transferred to other Travelers
accounts . . . . . . . . . . . . . (1,163,095) (268,181) (31,293,647) (4,179,275) (1,568,158) (90,159)
Annuity units . . . . . . . . . . . - - (851) (726) (3,852) (884)
---------- ---------- ---------- ---------- ---------- ----------
Accumulation and annuity units
end of period . . . . . . . . . . . 38,482,886 9,668,753 45,699,686 10,919,262 34,727,849 9,486,475
========== ========== ========== ========== ========== ==========
</TABLE>
-10-
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS - CONTINUED
6. SCHEDULE OF ACCUMULATION AND ANNUITY UNITS FOR FUND BD
FOR THE YEAR ENDED DECEMBER 31, 1995 AND THE PERIOD JUNE 20, 1994
(DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1994 (CONTINUED)
<TABLE>
<CAPTION>
SMITH BARNEY MFS AIM CAPITAL
PACIFIC BASIN PORTOLIO TOTAL RETURN PORTFOLIO APPRECIATION PORTFOLIO
------------------------- -------------------------- -------------------------
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Accumulation and annuity units
beginning of period 2,820,564 - 12,577,846 - - -
Accumulation units purchased and
transferred from other Travelers
accounts 5,792,679 2,997,045 41,380,324 13,052,322 26,610,743 -
Accumulation units redeemed and
transferred to other Travelers
accounts (236,319) (176,481) (2,669,053) (474,476) (850,393) -
Annuity units (1,739) - (2,881) - - -
--------- --------- ---------- ---------- ---------- ----------
Accumulation and annuity units
end of period 8,375,185 2,820,564 51,286,236 12,577,846 25,760,350 -
========= ========= ========== ========== ========== ----------
TOTAL RETURN
PORTFOLIO
-------------------------
1995 1994
---- ----
Accumulation and annuity units
beginning of period 1,385,876 -
Accumulation units purchased and
transferred from other Travelers
accounts 37,045,728 1,385,876
Accumulation units redeemed and
transferred to other Travelers
accounts (994,359) -
Annuity units - -
---------- ---------
Accumulation and annuity units
end of period 37,437,245 1,385,876
========== =========
</TABLE>
-11-
<PAGE> 13
REPORT OF INDEPENDENT ACCOUNTANTS
To the Owners of Variable Annuity Contracts of
The Travelers Fund BD for Variable Annuities:
We have audited the accompanying statement of assets and liabilities of The
Travelers Fund BD for Variable Annuities as of December 31, 1995, and the
related statement of operations for the year then ended, and the statement of
changes in net assets for each of the applicable periods ended December 31,
1995 and 1994. These financial statements are the responsibility of
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards 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. Our
procedures included confirmation of shares owned as of December 31, 1995, by
correspondence with the underlying funds. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of The Travelers Fund BD for
Variable Annuities as of December 31, 1995, the results of its operations for
the year then ended, and the changes in its net assets for each of the
applicable periods ended December 31, 1995 and 1994, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Hartford, Connecticut
February 7, 1996
-12-
<PAGE> 14
Independent Accountants
COOPERS & LYBRAND L.L.P.
Hartford, Connecticut
This report is prepared for the general information of contract owners and is
not an offer of shares of The Travelers Fund BD for Variable Annuities or Fund
BD's underlying funds. It should not be used in connection with any offer
except in conjunction with the Prospectuses for the Variable Annuity products
offered by The Travelers Insurance Company and the Prospectuses of the
underlying funds, which collectively contain all pertinent information,
including the applicable sales commissions.
VG-FNDBD (Annual) (12-95) Printed in U.S.A.
