VARIABLE INSURANCE FUNDS
BB&T Growth and Income Fund
Supplement dated December 19, 1997
to Prospectus dated June 1, 1997
The following table is added to the Prospectus after the section captioned
"Fund Expenses":
FINANCIAL HIGHLIGHTS
The following table of selected financial information is included
to assist investors in evaluating the performance of the Fund
since its commencement of operations through November 30, 1997.
This information has not been audited, and it should be read in
conjunction with the Trust's financial statements relating to the
Fund.
<TABLE>
<S> <C>
June 3, 1997
to
For a Share outstanding throughout the period: November 30, 1997 (a)
---------------------------------------------
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Net Asset Value, Beginning of Period $ 10.00
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Investment Activities:
Net investment income 0.08
Net realized and unrealized gains from investments 1.52
-----------------------
Total from investment activities 1.60
-----------------------
Distributions:
Net investment income (0.05)
-----------------------
Total distributions (0.05)
-----------------------
Net Asset Value, End of Period $ 11.55
=======================
Total Return 16.05%(c)
Ratios/Supplementary Data:
Net assets, at end of period (000) 27,081
Ratio of net expenses to average net assets 0.90%(d)
Ratio of net investment income to average net 1.80%(d)
assets*
Ratio of gross expenses to average net assets* 2.54%(d)
Ratio of gross investment income to average net
assets* 0.16%(d)
Portfolio turnover 2.04%
Average commission rate paid(b) $ 0.0708
* During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not
occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Represents the dollar amount of commission paid on
portfolio transactions divided by total number of shares
purchased and sold by the Fund for which commissions were
charged.
(c) Not annualized.
(d) Annualized.
</TABLE>
INVESTORS SHOULD KEEP THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE