Notes to Financial Statements
December 31, 1996
1. Summary of Significant Accounting Policies
Aetna Variable Fund (the Fund) is registered under the Investment Company Act of 1940 as a diversified, open-
end management investment company whose shares are currently sold to Aetna Life Insurance and Annuity
Company (the Company), an Aetna Life Insurance Company Separate Account, and to other shareholders of the
Fund only through reinvestment of distributions. The Company's shares are allocated to certain of its variable
life/annuity accounts. The Company's accounts and affiliates held 99.6% of the Fund's shares outstanding at
December 31, 1996. The investment objective of the Fund is to maximize total return through investments in a
diversified portfolio of common stocks and securities convertible into common stock.
The Company serves as Investment Adviser and principal underwriter to the Fund. It is an indirect wholly-owned
subsidiary of Aetna Retirement Services, Inc., which in turn, is a wholly-owned subsidiary of Aetna Inc.
The accompanying financial statements of the Fund have been prepared in accordance with generally accepted
accounting principles. The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect amounts reported therein.
Although actual results could differ from these estimates, any such differences are expected to be immaterial to
the net assets of the Fund.
A. Valuation of Investments
Investments are stated at market values based upon closing sales prices as reported on national securities
exchanges or, for over-the-counter securities, at the mean of the bid and asked prices. Short-term investments
maturing in more than sixty days for which market quotations are readily available are valued at current market
value. Short-term investments maturing in less than sixty days are valued at amortized cost which when combined
with accrued interest approximates market. Sec