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PEGASUS VARIABLE ANNUITY FUND
SUPPLEMENT DATED DECEMBER 31, 1997 TO THE PEGASUS VARIABLE ANNUITY FUND
PROSPECTUS DATED APRIL 30, 1997.
1. The name of the Trust, Pegasus Variable Annuity Fund, shall be changed to
"Pegasus Variable Funds" throughout the Prospectus.
2. The first two paragraphs on Page 1 of the Prospectus shall be amended to
read as follows:
"The Pegasus Variable Funds (the "Trust") is an open-end, management
investment company, shares of which are currently offered only to
separate accounts ("Separate Accounts") funding variable annuity
contracts ("Variable Annuity Contracts") and variable life insurance
policies ("Variable Life Insurance Policies") issued by Hartford Life
Insurance Company and ITT Hartford Life and Annuity Insurance Company
(the "Hartford Companies"). The Hartford Companies will invest in
shares of the Trust in accordance with allocation instructions received
from the holders of Variable Annuity Contracts and Variable Life
Insurance Policies, which allocation rights are further described in
the Prospectus for such contracts and policies. The Hartford Companies
will redeem shares to the extent necessary to provide benefits under
the Variable Annuity Contracts and Variable Life Insurance Policies.
Shares of the Trust are not offered to the general public.
The Trust has filed an application for an exemptive order with the
Securities and Exchange Commission ("SEC") which, if granted, would
permit shares of the Trust to be sold to and held by Separate Accounts
funding Variable Annuity Contracts and Variable Life Insurance Policies
issued by both affiliated and unaffiliated life insurance companies
including the Hartford Companies ("Participating Insurance Companies").
Until such time as the requested order is granted, shares of the Trust
will be offered only to Separate Accounts funding Variable Annuity
Contracts and Variable Life Insurance Policies issued by the Hartford
Companies. There is no assurance that the order will be granted."
3. The sixth paragraph on page 10 shall be amended to read as follows:
"As of the date of this Prospectus, shares of the Trust are offered
only to Separate Accounts funding Variable Annuity Contracts or
Variable Life Insurance Policies issued by the Hartford Companies. If
the requested exemptive relief is granted, shares of the Funds may be
sold to and held by Separate Accounts that fund Variable Annuity
Contracts and Variable Life Insurance Policies issued by both
affiliated and unaffiliated Participating Insurance Companies. The
Trust currently does not foresee any disadvantages to the holders of
Variable Annuity Contracts and Variable Life Insurance Policies of
affiliated and unaffiliated Participating Insurance Companies arising
from the fact that interests of the holders of such contracts and
policies may differ due to differences of tax treatment or other
considerations or due to conflicts between the affiliated or
unaffiliated Participating Insurance Companies. Nevertheless, the Board
of Trustees will monitor events to seek to identify any material
irreconcilable conflicts which may possibly arise and to determine what
action, if any, should be taken in response to such conflicts. Should a
material irreconcilable conflict arise between the holders of Variable
Annuity Contracts and Variable Life Insurance Policies of affiliated or
unaffiliated Participating Insurance Companies, the Participating
Insurance Companies may be required to withdraw the assets allocable to
some or all of the Separate Accounts from the Funds. Any such
withdrawal could disrupt orderly portfolio management to the potential
detriment of such holders. Material conflicts could result from such
things as: (1) changes in state insurance law; (2) changes in federal
income tax law; (3) changes in the investment management of any Fund;
or (4) differences between voting instructions given by the holders of
Variable Annuity Contracts and Variable Life Insurance Policies. The
Variable Annuity Contracts and Variable Life Insurance Policies are
described in the separate Prospectuses issued by the Participating
Insurance Companies. The Trust assumes no responsibility for such
Prospectuses."
4. The word "other" shall be inserted before the defined term "Participating
Insurance Companies" in the second, third and fourth sentences of the last
paragraph on page 15 of the Prospectus which runs over onto page 16.
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PEGASUS VARIABLE ANNUITY FUND
SUPPLEMENT DATED DECEMBER 31, 1997 TO THE PEGASUS VARIABLE ANNUITY
FUND STATEMENT OF ADDITIONAL INFORMATION DATED APRIL 30, 1997.
The name of the Trust, Pegasus Variable Annuity Fund, shall be changed to
"Pegasus Variable Funds" throughout the Statement of Additional
Information.