<PAGE> 1
FEBRUARY 1, 1997 SUPPLEMENT TO
PROSPECTUS DATED MAY 1, 1996
VINTAGE
THE FOLLOWING INFORMATION SUPPLEMENTS THE PROSPECTUSES DATED MAY 1, 1996 FOR
THE TRAVELERS FUND BD FOR VARIABLE ANNUITIES, AND FOR THE TRAVELERS FUND BD II
FOR VARIABLE ANNUITIES. FOR MORE INFORMATION, REFER TO THE PROSPECTUS FOR THE
SELECT PORTFOLIOS OF THE SMITH BARNEY CONCERT SERIES INC. WHICH MUST ACCOMPANY
THE VINTAGE CONTRACT PROSPECTUS.
Effective February 1, 1997, 5 new funding options will be offered under the
Contracts. Select High Growth, Select Growth, Select Balanced, Select
Conservative and Select Income Portfolios (each a "Portfolio," together, the
"Select Portfolios") are portfolios of Smith Barney Concert Series Inc., an
open-end, non-diversified management company. The Select Portfolios invest
their net assets in Underlying Smith Barney Mutual Funds as described below.
SELECT PORTFOLIOS: INVESTMENT OBJECTIVES AND INVESTMENT ADVISER
The Select High Growth Portfolio seeks capital appreciation.
The Select Growth Portfolio seeks long-term growth of capital.
The Select Balanced Portfolio seeks a balance of growth of capital and
income.
The Select Conservative Portfolio seeks income and, secondarily,
long-term growth of capital.
The Select Income Portfolio seeks high current income.
Travelers Investment Adviser ("TIA") serves as each Select Portfolio's
investment manager. TIA is an indirect wholly owned subsidiary of Travelers
Group Inc. ("Travelers"). Smith Barney Mutual Funds Management Inc. ("SBMFM")
serves as the investment adviser of each of the Underlying Smith Barney Funds
(other than Smith Barney Premium Total Return Fund, for which Smith Barney
Strategy Advisers Inc., a wholly owned subsidiary of SBMFM, serves as the
investment adviser).
Each Select Portfolio seeks to achieve its investment objective by investing
its assets in a combination of Equity and Fixed Income funds. In addition, each
Select Portfolio may invest its short-term cash in repurchase agreements.The
following table illustrates each Select Portfolio's initial equity/fixed income
fund allocation targets and ranges.
<TABLE>
<CAPTION>
PORTFOLIO TARGET RANGE
- -----------------------------------------------------------
<S> <C> <C>
Select High Growth Portfolio
Equity 90% 80-100%
Fixed Income 10% 0-20%
- -----------------------------------------------------------
Select Growth Portfolio
Equity 70% 60-80%
Fixed Income 30% 20-40%
- -----------------------------------------------------------
Select Balanced Portfolio
Equity 50% 40-60%
Fixed Income 50% 40-60%
- -----------------------------------------------------------
Select Conservative Portfolio
Equity 30% 20-40%
Fixed Income 70% 60-80%
- -----------------------------------------------------------
Select Income Portfolio
Equity 10% 0-20%
Fixed Income 90% 80-100%
- -----------------------------------------------------------
</TABLE>
The Select Portfolios invest their net assets in the "Underlying Smith Barney
Funds" in the ranges listed below. The Underlying Smith Barney Funds are
open-end management investment companies or series thereof which Smith Barney
Inc. or any of its affiliates sponsor now or in the future.
<PAGE> 2
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
UNDERLYING SMITH BARNEY FUND SELECT SELECT SELECT SELECT SELECT
HIGH GROWTH BALANCED CONSERVATIVE INCOME
GROWTH
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Smith Barney Aggressive Growth Fund Inc. 10-30% 0-15% - - -
- --------------------------------------------------------------------------------------------------------
Smith Barney Appreciation Fund Inc. 0-20% 10-30% 0-20% - -
- --------------------------------------------------------------------------------------------------------
Smith Barney Equity Funds:
Smith Barney Growth and Income Fund 0-20% 0-20% 5-20% - -
- --------------------------------------------------------------------------------------------------------
Smith Barney Fundamental Value Fund Inc. 0-20% 10-30% 0-20% - -
- --------------------------------------------------------------------------------------------------------
Smith Barney Funds, Inc.:
Equity Income Portfolio - 0-20% 5-20% 5-20% 0-15%
Short-Term U.S. Treasury Securities Portfolio* - 0-15% 5-20% 5-20% 5-30%
- --------------------------------------------------------------------------------------------------------
Smith Barney Income Funds:
Smith Barney High Income Fund* 0-20% 5-20% 0-15% 0-20% 0-20%
Smith Barney Utilities Fund* - 0-20% 5-20% 5-20% 0-15%
Smith Barney Premium Total Return Fund - - 5-20% 5-25% 0-15%
Smith Barney Convertible Fund* - - 5-20% 5-15% 0-15%
Smith Barney Diversified Strategic Income Fund* - - 5-25% 10-30% 10-30%
- --------------------------------------------------------------------------------------------------------
Smith Barney Investment Funds Inc:
Smith Barney Managed Growth Fund 0-20% 10-30% 0-15% - -
Smith Barney Special Equities Fund 10-30% 0-15% - - -
Smith Barney Government Securities Fund* 0-15% 0-20% 0-20% 5-20% 5-20%
Smith Barney Investment Grade Bond Fund* 0-15% 0-15% - - 0-15%
- --------------------------------------------------------------------------------------------------------
Smith Barney Managed Governments Fund Inc.* - 0-15% 5-20% 5-25% 5-30%
- --------------------------------------------------------------------------------------------------------
Smith Barney Money Funds, Inc.:
Cash Portfolio* 0-20% 0-20% 0-25% 0-30% 0-30%
- --------------------------------------------------------------------------------------------------------
Smith Barney Natural Resources Fund Inc. 0-10% 0-10% 0-10% - -
- --------------------------------------------------------------------------------------------------------
Smith Barney World Funds, Inc.:
International Equity Portfolio 10-25% 5-20% 0-15% 0-10% 0-10%
Emerging Markets Portfolio 0-20% - - - -
International Balanced Portfolio* 0-15% 0-10% 0-10% 0-10% 0-10%
Global Government Bond Portfolio* 0-15% 0-15% 0-15% 0-20% 0-20%
- --------------------------------------------------------------------------------------------------------
</TABLE>
*Denotes a Fixed Income Fund, that is, one that invests primarily in fixed
income securities, including the money market fund.
UNDERLYING FUND EXPENSE RATIOS
As of October 31, 1996, the expense ratios of the Underlying Smith Barney Funds
were as follows, based on estimated operating expenses for each fund's then
current fiscal year:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
UNDERLYING SMITH BARNEY FUND EXPENSE RATIO
- --------------------------------------------------------------------------
<S> <C>
Smith Barney Aggressive Growth Fund Inc. 0.92%
- --------------------------------------------------------------------------
Smith Barney Appreciation Fund Inc. 0.69%
- --------------------------------------------------------------------------
Smith Barney Equity Funds:
Smith Barney Growth and Income Fund 0.87%
- --------------------------------------------------------------------------
Smith Barney Fundamental Value Fund Inc. 0.90%
- --------------------------------------------------------------------------
Smith Barney Funds, Inc.:
Equity Income Portfolio 0.67%
Short-Term U.S. Treasury Securities Portfolio 0.54%
- --------------------------------------------------------------------------
Smith Barney Income Funds:
Smith Barney High Income Fund 0.81%
Smith Barney Utilities Fund 0.74%
Smith Barney Premium Total Return Fund 0.83%
Smith Barney Convertible Fund 0.92%
Smith Barney Diversified Strategic Income Fund 0.79%
- --------------------------------------------------------------------------
Smith Barney Investment Funds Inc.:
Smith Barney Managed Growth Fund 0.95%
Smith Barney Special Equities Fund 0.86%
Smith Barney Government Securities Fund 0.64%
Smith Barney Investment Grade Bond Fund 0.76%
- --------------------------------------------------------------------------
Smith Barney Managed Governments Fund Inc. 0.74%
- --------------------------------------------------------------------------
</TABLE>
2
<PAGE> 3
<TABLE>
<CAPTION>
- -----------------------------------------------------------
UNDERLYING SMITH BARNEY FUND EXPENSE RATIO
- -----------------------------------------------------------
<S> <C>
Smith Barney Money Funds, Inc.:
Cash Portfolio 0.46%
- -----------------------------------------------------------
Smith Barney Natural Resources Fund Inc. 1.74%
- -----------------------------------------------------------
Smith Barney World Funds, Inc.:
International Equity Portfolio 0.98%
Emerging Markets Portfolio 1.40%
International Balanced Portfolio 1.07%
Global Government Bond Portfolio 0.95%
- -----------------------------------------------------------
</TABLE>
Based on a weighted average of the Class Y expense ratios of Underlying Smith
Barney Funds in which a particular Select Portfolio was expected to invest at
the beginning of investment operations, the approximate expense ratios
(including the management fee for each Select Portfolio) were expected to be as
follows: Select High Growth Portfolio 1.26%; Select Growth Portfolio, 1.20%;
Select Balanced Portfolio, 1.13%; Select Conservative Portfolio, 1.11%; and
Select Income Portfolio, 1.05%. The expense ratios may be higher or lower
depending on the allocation of the Underlying Smith Barney Funds within a
Select Portfolio.
FEE TABLE INFORMATION:
The following table sets forth the Management Fee and Other Expenses that each
Select Portfolio will bear directly.
<TABLE>
<CAPTION>
TOTAL SELECT
PORTFOLIO MANAGEMENT FEE OTHER EXPENSES* PORTFOLIO EXPENSES
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Select High Growth Portfolio .35% none .35%
- ------------------------------------------------------------------------------------------
Select Growth Portfolio .35% none .35%
- ------------------------------------------------------------------------------------------
Select Balanced Portfolio .35% none .35%
- ------------------------------------------------------------------------------------------
Select Conservative Portfolio .35% none .35%
- ------------------------------------------------------------------------------------------
Select Income Portfolio .35% none .35%
- ------------------------------------------------------------------------------------------
</TABLE>
*Under the Asset Allocation and Administration Agreement with each Select
Portfolio, TIA bears all expenses of each Select Portfolio, other than the
management expenses or extraordinary expenses.
EXAMPLE. THE FOLLOWING EXAMPLE IS INTENDED TO ASSIST A CONTRACT HOLDER IN
UNDERSTANDING THE VARIOUS COSTS THAT HE OR SHE WILL BEAR DIRECTLY OR
INDIRECTLY. THE EXAMPLE ASSUMES PAYMENT OF ALL ANNUAL CONTRACT CHARGES (WITH
THE MAINTENANCE FEE CALCULATED AS .016% OF ASSETS). IN ADDITION, THE EXAMPLE
ASSUMES PAYMENT BY EACH SELECT PORTFOLIO OF ITS OPERATING EXPENSES (AS SHOWN
ABOVE) AND OF ITS PRO RATA SHARE OF THE EXPENSES OF THE UNDERLYING SMITH BARNEY
FUNDS (ALSO AS SET FORTH ABOVE) IN WHICH A SELECT PORTFOLIO WAS EXPECTED TO
INVEST AT THE COMMENCEMENT OF INVESTMENT OPERATIONS. THIS EXAMPLE SHOULD NOT BE
CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE
GREATER OR LESS THAN THOSE SHOWN.
Assuming a 5% annual return on assets, a $1,000 investment would be subject to
the following expenses:
<TABLE>
<CAPTION>
If the Contract is NOT surrendered
If the Contract is surrendered at at the end of the period shown
the end of the period shown or if it is annuitized:
----------------------------------------------------------------------------
One Three One Three
Year Years Years Years
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Select High Growth Portfolio (a) $85 $136 $25 $76
(b) 88 145 28 85
- -------------------------------------------------------------------------------------
Select Growth Portfolio (a) 84 134 24 74
(b) 87 143 27 83
- -------------------------------------------------------------------------------------
Select Balanced Portfolio (a) 83 132 23 72
(b) 86 141 26 81
- -------------------------------------------------------------------------------------
Select Conservative Portfolio(a) 83 132 23 72
(b) 86 140 26 80
- -------------------------------------------------------------------------------------
Select Income Portfolio (a) 83 130 23 70
(b) 85 138 25 78
- -------------------------------------------------------------------------------------
</TABLE>
(a) represents the standard death benefit.
(b) represents the enhanced death benefit.
L-XXXXX 2/97
3
<PAGE> 4
TRAVELERSLIFE and ANNUITY
A Member of TravelersGroup
Kathleen A. McGah
Counsel
Financial Services Department, 3 MS
Telephone: (860) 277-7389
Fax: (860) 277-0842
Travelers Insurance
One Tower Square
Hartford, CT 06183
January 21, 1997
Securities and Exchange Commission:
450 Fifth Street, N.W.
Washington, D.C. 20549
Attention: IM Filing Desk
RE: Funds BD (File No. 33-73466 and 811-8242) and BDII (File No. 33-58131 and
------------------------------ ---------------------
811-7259): Supplement to add Concert Select
--------
Members of the Commission:
Pursuant to Rule 497(e) we transmit for filing the above supplement regarding
the addition of new funding options.
Please direct any questions regarding this filing to the undersigned at (860)
277-7389.
Sincerely,
Kathleen A. McGah
