-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VrfcqauJLBVw8ptjUdrX0IYe2rWWDAt16qijufg1yCf/V33lbXZZjd7UvjPoK5kH 9EZd6l81sn7NjGOUZgdmxA== 0000950123-96-000766.txt : 19960228 0000950123-96-000766.hdr.sgml : 19960228 ACCESSION NUMBER: 0000950123-96-000766 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960227 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRAVELERS FUND BD II FOR VARIABLE ANNUITIES CENTRAL INDEX KEY: 0000941729 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 060904249 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07259 FILM NUMBER: 96525772 BUSINESS ADDRESS: STREET 1: FINANCIAL SERVICES LEGAL DIVISION STREET 2: ONE TOWER SQUARE CITY: HARTFORD STATE: CT ZIP: 06183 BUSINESS PHONE: 2032777379 MAIL ADDRESS: STREET 1: FINANCIAL SERVICES LEGAL DIVISION STREET 2: ONE TOWER SQUARE CITY: HARTFORD STATE: CT ZIP: 06183 N-30D 1 THE TRAVELERS FUND BD II FOR VARIABLE ANNUITIES 1 VINTAGE ANNUITY ANNUAL REPORT THE TRAVELERS FUND BD II FOR VARIABLE ANNUITIES December 31, 1995 [LOGO] THE TRAVELERS LIFE AND ANNUITY COMPANY ONE TOWER SQUARE HARTFORD, CONNECTICUT 06183 2 THE TRAVELERS FUND BD II FOR VARIABLE ANNUITIES STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 ASSETS: Investments in eligible funds at market value: Smith Barney/Travelers Series Fund Inc.: Alliance Growth Portfolio, 185,439 shares (cost $2,538,617)................. $ 2,496,002 American Capital Enterprise Portfolio, 97,951 shares (cost $1,282,128)...... 1,263,570 TBC Managed Income Portfolio, 31,455 shares (cost $355,126)................. 341,596 G.T. Global Strategic Income Portfolio, 11,136 shares (cost $122,501)....... 121,048 Smith Barney High Income Portfolio, 54,613 shares (cost $626,668).......... 605,660 Smith Barney International Equity Portfolio, 70,849 shares (cost $736,324).. 756,671 Smith Barney Income and Growth Portfolio, 72,893 shares (cost $935,968)..... 937,403 Smith Barney Money Market Portfolio, 2,886,060 shares (cost $2,886,060)..... 2,886,060 Putnam Diversified Income Portfolio, 94,488 shares (cost $1,096,398)........ 1,066,768 Smith Barney Pacific Basin Portfolio, 5,520 shares (cost $49,167)........... 51,003 MFS Total Return Portfolio, 91,256 shares (cost $1,085,806)................. 1,085,946 AIM Capital Appreciation Portfolio, 321,132 shares (cost $3,108,343)........ 3,082,868 Smith Barney Series Fund: Total Return Portfolio, 77,431 shares (cost $983,136)....................... 986,473 ----------- Total Investments (cost $15,806,242)...................................... 15,681,068 ----------- Receivables: Dividends..................................................................... 255,886 Purchase payments and transfers from other Travelers accounts................. 1,360,447 Other assets.................................................................... 106 ----------- Total Assets.............................................................. 17,297,507 ----------- LIABILITIES: Payable for contract surrenders and transfers to other Travelers accounts....... 8,445 Accrued liabilities............................................................. 2,616 ----------- Total Liabilities......................................................... 11,061 ----------- NET ASSETS........................................................................ $17,286,446 ===========
See Notes to Financial Statements -1- 3 THE TRAVELERS FUND BD II FOR VARIABLE ANNUITIES STATEMENT OF OPERATIONS FOR THE PERIOD NOVEMBER 8, 1995 (DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1995 INVESTMENT INCOME: Dividends.................................................... $ 262,043 EXPENSES: Insurance charges............................................ $ 14,620 Administrative fees.......................................... 1,589 -------- Total expenses............................................. 16,209 --------- Net investment income.................................... 245,834 --------- REALIZED LOSS AND CHANGE IN UNREALIZED LOSS ON INVESTMENTS: Realized loss from investment transactions: Proceeds from investments sold............................. 136,938 Cost of investments sold................................... 137,447 -------- Net realized loss........................................ (509) Unrealized loss on investments: December 31, 1995.......................................... (125,174) --------- Net realized loss and change in unrealized loss.......... (125,683) --------- Net increase in net assets resulting from operations......... $ 120,151 =========
See Notes to Financial Statements -2- 4 THE TRAVELERS FUND BD II FOR VARIABLE ANNUITIES STATEMENT OF CHANGES IN NET ASSETS FOR THE PERIOD NOVEMBER 8, 1995 (DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1995
1995 ---------- OPERATIONS: Net investment income.......................................... $ 245,834 Net realized loss from investment transactions................. (509) Net change in unrealized loss on investments................... (125,174) ------------- Net increase in net assets resulting from operations......... 120,151 ------------- UNIT TRANSACTIONS: Participant purchase payments (applicable to 14,991,745 units)............................. 17,056,576 Participant transfers from other Travelers accounts (applicable to 321,920 units)................................ 372,855 Contract surrenders (applicable to 1,879 units).................................. (2,206) Participant transfers to other Travelers accounts (applicable to 229,855 units)................................ (260,930) ------------- Net increase in net assets resulting from unit transactions.. 17,166,295 ------------- Net increase in net assets................................... 17,286,446 NET ASSETS: Beginning of period............................................ - ------------- End of period.................................................. $ 17,286,446 =============
See Notes to Financial Statements -3- 5 NOTES TO FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES The Travelers Fund BD II for Variable Annuities ("Fund BD II") is a separate account of The Travelers Life and Annuity Company ("Travelers Life"), which is a wholly owned subsidiary of The Travelers Insurance Company, an indirect wholly owned subsidiary of Travelers Group Inc., and is available for funding certain variable annuity contracts issued by Travelers Life. Fund BD II is registered under the Investment Company Act of 1940, as amended, as a unit investment trust. Participant purchase payments applied to Fund BD II 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 II 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 II in the preparation of its financial statements. 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 II form a part of the total operations of Travelers Life and are not taxed separately. Travelers Life 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 II. Fund BD II 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 $15,943,689 and $136,938, respectively, for the period 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 $15,806,242 at December 31, 1995. Gross unrealized appreciation for all investments at December 31, 1995 was $27,095. Gross unrealized depreciation for all investments at December 31, 1995 was $152,269. 3. CONTRACT CHARGES Insurance charges are paid to Travelers Life for the mortality and expense risks assumed by Travelers Life. For contracts with a standard death benefit provision, these charges are equivalent to 1.02% of the average net assets of Fund BD II 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 II 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 Travelers Life to cover contract administrative charges. Administrative fees are paid to Travelers Life for administrative expenses incurred by Travelers Life. This charge is equivalent to 0.15% of the average net assets of Fund BD II on an annual basis. -4- 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 . No deductions were taken for the period ended December 31, 1995. 4. NET CONTRACT OWNERS' EQUITY
DECEMBER 31, 1995 ---------------------------------------------- ACCUMULATION UNIT NET UNITS VALUE ASSETS ------------ -------- ----------- Smith Barney/Travelers Series Fund Inc.: Alliance Growth Portfolio Standard............................... 1,573,668 $ 1.396 $ 2,196,422 Enhanced............................... 452,737 1.390 629,207 American Capital Enterprise Portfolio Standard............................... 764,534 1.362 1,041,231 Enhanced............................... 329,130 1.356 446,338 TBC Managed Income Portfolio Standard............................... 225,876 1.142 257,885 Enhanced............................... 89,569 1.137 101,831 G.T. Global Strategic Income Portfolio Standard............................... 32,765 1.121 36,716 Enhanced............................... 79,526 1.116 88,736 Smith Barney High Income Portfolio Standard............................... 242,593 1.162 281,962 Enhanced............................... 331,521 1.157 383,676 Smith Barney International Equity Portfolio Standard............................... 556,129 1.050 584,053 Enhanced............................... 200,940 1.046 210,127 Smith Barney Income and Growth Portfolio Standard............................... 596,201 1.291 769,568 Enhanced............................... 146,469 1.285 188,253 Smith Barney Money Market Portfolio Standard............................... 2,373,923 1.058 2,511,927 Enhanced............................... 819,856 1.054 863,812 Putnam Diversified Income Portfolio Standard............................... 823,783 1.170 963,857 Enhanced............................... 126,460 1.165 147,332 Smith Barney Pacific Basin Portfolio Standard............................... 37,278 0.910 33,928 Enhanced............................... 19,544 0.906 17,712 MFS Total Return Portfolio Standard............................... 912,547 1.216 1,109,536 Enhanced............................... 101,550 1.211 122,945 AIM Capital Appreciation Portfolio Standard............................... 2,536,732 0.958 2,429,736 Enhanced............................... 908,266 0.957 869,420 Smith Barney Series Fund: Total Return Portfolio Standard............................... 651,440 1.251 814,618 Enhanced............................... 148,894 1.247 185,618 ------------- Net Contract Owners' Equity $ 17,286,446 =============
-5- 7 NOTES TO FINANCIAL STATEMENTS - CONTINUED 5. SCHEDULE OF FUND BD II OPERATIONS AND CHANGES IN NET ASSETS FOR THE PERIOD NOVEMBER 8, 1995 (DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1995
AMERICAN TBC G.T. GLOBAL SMITH ALLIANCE CAPITAL MANAGED STRATEGIC BARNEY GROWTH ENTERPRISE INCOME INCOME HIGH INCOME PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ---------- ---------- --------- ----------- ----------- INVESTMENT INCOME: Dividends.............................................. $ 71,580 $ 38,960 $ 18,181 $ 4,427 $ 27,093 ---------- ---------- --------- -------- --------- EXPENSES: Insurance charges...................................... 2,554 1,306 252 102 283 Administrative fees.................................... 275 135 35 12 39 ---------- ---------- --------- -------- --------- Net investment income (loss)......................... 68,751 37,519 17,894 4,313 26,771 ---------- ---------- --------- -------- --------- REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS: Realized gain (loss) from investment transactions: Proceeds from investments sold....................... 55,534 155 60 64 142 Cost of investments sold............................. 56,573 158 60 63 144 ---------- ---------- --------- -------- --------- Net realized gain (loss)............................. (1,039) (3) - 1 (2) Change in unrealized gain (loss) on investments: Unrealized gain (loss) beginning of period........... - - - - - Unrealized gain (loss) end of period................. (42,615) (18,558) (13,530) (1,453) (21,008) ---------- ---------- --------- -------- --------- Net change in unrealized gain (loss) for the period (42,615) (18,558) (13,530) (1,453) (21,008) ---------- ---------- --------- -------- --------- Net increase (decrease) in net assets resulting from operations........................ 25,097 18,958 4,364 2,861 5,761 ---------- ---------- --------- -------- --------- UNIT TRANSACTIONS: Participant purchase payments.......................... 2,815,148 1,430,843 275,352 122,591 659,877 Participant transfers from other Travelers accounts 67,993 37,768 80,000 - - Contract surrenders.................................... (503) - - - - Participant transfers to other Travelers accounts...... (82,106) - - - - ---------- ---------- --------- -------- --------- Net increase in net assets resulting from unit transactions...................................... 2,800,532 1,468,611 355,352 122,591 659,877 ---------- ---------- --------- -------- --------- Net increase in net assets............................ 2,825,629 1,487,569 359,716 125,452 665,638 NET ASSETS: Beginning of period.................................... - - - - - ---------- ---------- --------- -------- --------- End of period.......................................... $2,825,629 $1,487,569 $ 359,716 $125,452 $ 665,638 ========== ========== ========= ======== =========
-6- 8 NOTES TO FINANCIAL STATEMENTS - CONTINUED
SMITH SMITH SMITH BARNEY BARNEY BARNEY PUTNAM SMITH INTERNATIONAL INCOME MONEY DIVERSIFIED BARNEY MFS AIM CAPITAL EQUITY AND GROWTH MARKET INCOME PACIFIC BASIN TOTAL RETURN APPRECIATION TOTAL RETURN PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO COMBINED - ------------- ---------- --------- ----------- ------------- ------------ ------------ ------------ -------- $ 836 $ 15,676 $ 8,627 $ 44,601 $ 149 $ 26,481 $ 3,038 $ 2,394 $ 262,043 -------- -------- ---------- ---------- ------- ---------- ---------- --------- ----------- 751 759 2,031 704 48 857 4,240 733 14,620 83 98 275 100 6 127 313 91 1,589 -------- -------- ---------- ---------- ------- ---------- ---------- --------- ----------- 2 14,819 6,321 43,797 95 25,497 (1,515) 1,570 245,834 -------- -------- ---------- ---------- ------- ---------- ---------- --------- ----------- 35,908 396 44,352 21 19 62 90 135 136,938 35,387 385 44,352 21 18 61 93 132 137,447 -------- -------- ---------- ---------- ------- ---------- ---------- --------- ----------- 521 11 - - 1 1 (3) 3 (509) - - - - - - - - - 20,347 1,435 - (29,630) 1,836 140 (25,475) 3,337 (125,174) -------- -------- ---------- ---------- ------- ---------- ---------- ---------- ----------- 20,347 1,435 - (29,630) 1,836 140 (25,475) 3,337 (125,174) -------- -------- ---------- ---------- ------- ---------- ---------- ---------- ----------- 20,870 16,265 6,321 14,167 1,932 25,638 (26,993) 4,910 120,151 -------- -------- ---------- ---------- ------- ---------- ---------- ---------- ----------- 760,996 911,643 3,527,872 1,086,983 49,035 1,186,910 3,256,149 973,177 17,056,576 12,389 29,913 8,446 15,623 673 22,680 72,615 24,755 372,855 (75) - - - - (627) (500) (501) (2,206) - - (166,900) (5,584) - (2,120) (2,115) (2,105) (260,930) -------- -------- ---------- ---------- ------- ---------- ---------- ---------- ----------- 773,310 941,556 3,369,418 1,097,022 49,708 1,206,843 3,326,149 995,326 17,166,295 -------- -------- ---------- ---------- ------- ---------- ---------- ---------- ----------- 794,180 957,821 3,375,739 1,111,189 51,640 1,232,481 3,299,156 1,000,236 17,286,446 - - - - - - - - - -------- -------- ---------- ---------- ------- ---------- ---------- ---------- ----------- $794,180 $957,821 3,375,739 $1,111,189 $51,640 $1,232,481 $3,299,156 $1,000,236 $17,286,446 ======== ======== ========== ========== ======= ========== ========== ========== ===========
-7- 9 NOTES TO FINANCIAL STATEMENTS - CONTINUED 6. SCHEDULE OF ACCUMULATION UNITS FOR FUND BD II FOR THE PERIOD NOVEMBER 8, 1995 (DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1995
ALLIANCE AMERICAN CAPITAL TBC MANAGED G.T. GLOBAL GROWTH ENTERPRISE INCOME STRATEGIC INCOME PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO --------- ---------------- ----------- ---------------- Accumulation units beginning of period........ - - - - Accumulation units purchased and transferred from other Travelers accounts... 2,088,195 1,093,664 315,445 112,291 Accumulation units redeemed and transferred to other Travelers accounts..... (61,790) - - - --------- --------- ------- ------- Accumulation units end of period.............. 2,026,405 1,093,664 315,445 112,291 ========= ========= ======= ======= SMITH BARNEY SMITH BARNEY SMITH BARNEY SMITH BARNEY HIGH INCOME INTERNATIONAL INCOME AND MONEY MARKET PORTFOLIO EQUITY PORTFOLIO GROWTH PORTFOLIO PORTFOLIO ------------ ---------------- ---------------- ------------ Accumulation units beginning of period........ - - - - Accumulation units purchased and transferred from other Travelers accounts... 574,114 757,142 742,670 3,351,749 Accumulation units redeemed and transferred to other Travelers accounts..... - (73) - (157,970) ------- ------- ------- --------- Accumulation units end of period.............. 574,114 757,069 742,670 3,193,779 ======= ======= ======= ========= PUTNAM SMITH BARNEY MFS AIM CAPITAL DIVERSIFIED PACIFIC BASIN TOTAL RETURN APPRECIATION INCOME PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ---------------- ------------- ------------ ------------ Accumulation units beginning of period........ - - - - Accumulation units purchased and transferred from other Travelers accounts... 955,065 56,822 1,016,359 3,447,731 Accumulation units redeemed and transferred to other Travelers accounts..... (4,822) - (2,262) (2,733) ------- ------ --------- --------- Accumulation units end of period.............. 950,243 56,822 1,014,097 3,444,998 ======= ====== ========= ========= TOTAL RETURN PORTFOLIO ------------ Accumulation units beginning of period........ - Accumulation units purchased and transferred from other Travelers accounts... 802,418 Accumulation units redeemed and transferred to other Travelers accounts..... (2,084) ------- Accumulation units end of period.............. 800,334 =======
-8- 10 REPORT OF INDEPENDENT ACCOUNTANTS To the Owners of Variable Annuity Contracts of The Travelers Fund BD II for Variable Annuities: We have audited the accompanying statement of assets and liabilities of The Travelers Fund BD II for Variable Annuites as of December 31, 1995, and the related statements of operations and changes in net assets for the period November 8, 1995 (date operations commenced) to December 31, 1995. These financial statements are the responsibility of management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit 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 audit provides 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 II for Variable Annuities as of December 31, 1995, the results of its operations and the changes in its net assets for the period November 8, 1995 (date operations commenced) to December 31, 1995, in conformity with generally accepted accounting principles. COOPERS & LYBRAND L.L.P. Hartford, Connecticut February 16, 1996 -9- 11 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 II for Variable Annuities or Fund BD II'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 Life and Annuity Company and the Prospectuses of the underlying funds, which collectively contain all pertinent information, including the applicable sales commissions. -----END PRIVACY-ENHANCED MESSAGE-----