NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000
The Statements contained herein refer to Aetna Balanced VP, Inc. (Balanced) and Aetna Variable Fund d/b/a
Aetna Growth and Income VP (Growth and Income), (individually, a Portfolio, and collectively, the Portfolios).
Balanced was incorporated under the laws of Maryland on December 14, 1988. Growth and Income was
organized under the laws of Massachusetts on January 25, 1984. Balanced and Growth and Income are each
registered under the Investment Company Act of 1940 (the Act) as open-end management investment
The following is each Portfolio's investment objective:
BALANCED seeks to maximize investment return, consistent with reasonable safety of principal, by investing in
a diversified portfolio of one or more of the following asset classes: stocks, bonds and cash equivalents, based on
the judgement of the Fund's investment adviser, Aeltus Investment Management, Inc. (Aeltus), of which of those
sectors or mix thereof offers the best investment prospects.
GROWTH AND INCOME seeks to maximize total return through investments in a diversified portfolio of
common stocks and securities convertible into common stock. It is anticipated that capital appreciation and
investment income will both be major factors in achieving total return.
Shares of the Portfolios are offered to insurance company separate accounts that fund both annuity and life
insurance contracts and to certain tax-qualified retirement plans. At December 31, 2000, separate accounts of
Aetna Life Insurance and Annuity Company (ALIAC) and its affiliates held 98.6% and 97.8% of Balanced and
Growth and Income shares outstanding, respectively.
On December 13, 2000, Aetna Inc. (Aetna), the indirect parent company of Aeltus Investment Management,
Inc. (Aeltus), the investment adviser to the Portfolios, and Aetna Investment Services, LLC (AIS), each
Portfolio's principal underwriter, sold certain of its financial services and international businesses, including