[LOGO] Phoenix Home Life
The Big Edge Plus(SM)
Group Strategic Edge(R)
Semi-Annual Reports for:
Phoenix Home Life Variable
Accumulation Account
Phoenix Edge Series Fund
Wanger Advisors Trust
June 30, 1996
<PAGE>
TABLE OF CONTENTS
PHOENIX HOME LIFE VARIABLE ACCUMULATION ACCOUNT
Money Market Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 4
Statement of Changes in Net Assets 6
Financial Highlights 10
Growth Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 4
Statement of Changes in Net Assets 6
Financial Highlights 10
Multi-Sector Fixed Income Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 4
Statement of Changes in Net Assets 6
Financial Highlights 10
Total Return Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 4
Statement of Changes in Net Assets 6
Financial Highlights 10
International Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 4
Statement of Changes in Net Assets 6
Financial Highlights 11
Balanced Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 4
Statement of Changes in Net Assets 6
Financial Highlights 11
Real Estate Sub-Account
Statement of Assets and Liabilities 3
Statement of Operations 5
Statement of Changes in Net Assets 7
Financial Highlights 11
Strategic Theme Sub-Account
Statement of Assets and Liabilities 3
Statement of Operations 5
Statement of Changes in Net Assets 7
Financial Highlights 11
Wanger International Small Cap Sub-Account
Statement of Assets and Liabilities 3
Statement of Operations 5
Statement of Changes in Net Assets 7
Financial Highlights 12
Wanger U.S. Small Cap Sub-Account
Statement of Assets and Liabilities 3
Statement of Operations 5
Statement of Changes in Net Assets 7
Financial Highlights 12
Notes to Financial Statements 13
THE PHOENIX EDGE SERIES FUND
Money Market Series
Schedule of Investments 2-2
Statement of Assets and Liabilities 2-4
Statement of Operations 2-4
Statement of Changes in Net Assets 2-5
Financial Highlights 2-5
Growth Series
Schedule of Investments 2-6
Statement of Assets and Liabilities 2-9
Statement of Operations 2-9
Statement of Changes in Net Assets 2-10
Financial Highlights 2-10
Multi-Sector Fixed Income Series
Schedule of Investments 2-11
Statement of Assets and Liabilities 2-14
Statement of Operations 2-14
Statement of Changes in Net Assets 2-15
Financial Highlights 2-15
Total Return Series
Schedule of Investments 2-17
Statement of Assets and Liabilities 2-20
Statement of Operations 2-20
Statement of Changes in Net Assets 2-21
Financial Highlights 2-21
International Series
Schedule of Investments 2-22
Statement of Assets and Liabilities 2-25
Statement of Operations 2-25
Statement of Changes in Net Assets 2-26
Financial Highlights 2-26
Balanced Series
Schedule of Investments 2-28
Statement of Assets and Liabilities 2-31
Statement of Operations 2-31
Statement of Changes in Net Assets 2-32
Financial Highlights 2-32
Real Estate Series
Schedule of Investments 2-33
Statement of Assets and Liabilities 2-35
Statement of Operations 2-35
Statement of Changes in Net Assets 2-36
Financial Highlights 2-36
Strategic Theme Series
Schedule of Investments 2-38
Statement of Assets and Liabilities 2-40
Statement of Operations 2-40
Statement of Changes in Net Assets 2-41
Financial Highlights 2-41
Notes to Financial Statements 2-42
WANGER ADVISORS TRUST
Wanger International Small Cap Advisor
Schedule of Investments 3-3
Statement of Assets and Liabilities 3-7
Statement of Operations 3-8
Statement of Changes in Net Assets 3-8
Financial Highlights 3-9
Notes to Financial Statements 3-10
Wanger U.S. Small Cap Advisor
Schedule of Investments 4-3
Statement of Assets and Liabilities 4-7
Statement of Operations 4-8
Statement of Changes in Net Assets 4-8
Financial Highlights 4-9
Notes to Financial Statements 4-10
<PAGE>
This semi-annual report for the Phoenix
Home Life Variable Accumulation Account
for the period ended June 30, 1996, contains
the financial statements for the Account's
various annuity contracts. This report also
contains a list of portfolio holdings,
management's discussion of performance and
investment strategy and financial statements
for each of the mutual funds that comprise the
Phoenix Edge Series Fund, and the
Wanger Advisors Trust.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Money Market Growth
Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
-------------------------- ---------------------------
<S> <C> <C> <C> <C>
Assets
Investments at cost $ 6,569,955 $ 70,859,910 $45,149,488 $745,485,613
========== =========== ========== ============
Investment in The Phoenix Edge Series
Fund, at market $ 6,569,955 $ 70,859,910 $68,456,805 $864,003,412
---------- ----------- ---------- ------------
Total assets 6,569,955 70,859,910 68,456,805 864,003,412
Liabilities
Accrued expenses to related party 5,140 66,316 52,336 823,377
---------- ----------- ---------- ------------
Net assets $ 6,564,815 $ 70,793,594 $68,404,469 $863,180,035
========== =========== ========== ============
Accumulation units outstanding 3,148,604 34,760,424 7,823,405 101,037,775
========== =========== ========== ============
Unit value $ 2.084992 $ 2.036615 $ 8.743567 $ 8.543142
========== =========== ========== ============
Multi-Sector Fixed Income Total Return
Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
------------------------- --------------------------
Assets
Investments at cost $11,661,013 $ 84,910,779 $46,913,734 $246,988,058
========== =========== ========== ============
Investment in The Phoenix Edge
Series Fund, at market $11,939,299 $ 87,535,967 $61,155,572 $262,098,100
---------- ----------- ---------- ------------
Total assets 11,939,299 87,535,967 61,155,572 262,098,100
Liabilities
Accrued expenses to related party 9,048 82,538 46,799 249,395
---------- ----------- ---------- ------------
Net assets $11,930,251 $ 87,453,429 $61,108,773 $261,848,705
========== =========== ========== ============
Accumulation units outstanding 3,451,235 25,885,874 16,712,006 73,324,725
========== =========== ========== ============
Unit value $ 3.456806 $ 3.378423 $ 3.656579 $ 3.571083
========== =========== ========== ============
International Balanced
Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
------------------------- --------------------------
Assets
Investments at cost $ 4,180,689 $101,016,805 $ 4,359,405 $159,827,521
========== =========== ========== ============
Investment in The Phoenix Edge
Series Fund, at market $ 5,614,346 $125,173,957 $ 4,995,441 $174,525,306
---------- ----------- ---------- ------------
Total assets 5,614,346 125,173,957 4,995,441 174,525,306
Liabilities
Accrued expenses to related party 4,220 118,070 3,838 167,150
---------- ----------- ---------- ------------
Net assets $ 5,610,126 $125,055,887 $ 4,991,603 $174,358,156
========== =========== ========== ============
Accumulation units outstanding 3,619,907 81,914,448 3,543,613 125,069,420
========== =========== ========== ============
Unit value $ 1.549798 $ 1.526665 $ 1.408620 $ 1.394091
========== =========== ========== ============
</TABLE>
See Notes to Financial Statements
2
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
(Unaudited) (Continued)
<TABLE>
<CAPTION>
Real Estate Strategic Theme
Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
------------------------- --------------------------
<S> <C> <C> <C> <C>
Assets
Investments at cost $ 75,703 $ 9,174,135 $ 321,250 $11,746,716
========= =========== ========= ============
Investment in The Phoenix Edge
Series Fund, at market $ 81,026 $10,314,729 $ 328,617 $12,370,913
--------- ----------- --------- ------------
Total assets 81,026 10,314,729 328,617 12,370,913
Liabilities
Accrued expenses to related party 61 9,607 224 10,706
--------- ----------- --------- ------------
Net assets $ 80,965 $10,305,122 $ 328,393 $12,360,207
========= =========== ========= ============
Accumulation units outstanding 66,229 8,347,394 303,842 11,371,934
========= =========== ========= ============
Unit value $ 1.222507 $ 1.234532 $ 1.080803 $ 1.086905
========= =========== ========= ============
Wanger International Small Cap Wanger U.S. Small Cap
Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
------------------------ -------------------------
Assets
Investments at cost $1,566,526 $37,022,603 $5,137,777 $51,823,298
========= =========== ========= ============
Investment in Wanger Advisors Trust,
at market $1,756,213 $43,386,191 $5,520,765 $61,614,347
--------- ----------- --------- ------------
Total assets 1,756,213 43,386,191 5,520,765 61,614,347
Liabilities
Accrued expenses to related party 1,233 38,819 4,116 56,896
--------- ----------- --------- ------------
Net assets $1,754,980 $43,347,372 $5,516,649 $61,557,451
========= =========== ========= ============
Accumulation units outstanding 1,113,513 25,576,243 3,617,712 40,487,935
========= =========== ========= ============
Unit value $ 1.576075 $ 1.694830 $ 1.524900 $ 1.520390
========= =========== ========= ============
</TABLE>
See Notes to Financial Statements
3
<PAGE>
STATEMENT OF OPERATIONS
For the period ended June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Money Market Growth
Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
------------------------ --------------------------
<S> <C> <C> <C> <C>
Investment income
Distributions $ 195,883 $ 1,731,449 $ 282,218 $ 3,494,203
Expenses
Mortality and expense risk charges 40,238 442,524 340,004 5,113,109
-------- ----------- --------- ------------
Net investment income (loss) 155,645 1,288,925 (57,786) (1,618,906)
-------- ----------- --------- ------------
Net realized gain from share transactions -- -- 124,018 125,442
Net realized gain distribution from Fund -- -- 448,788 5,666,410
Net unrealized appreciation on investment -- -- 3,255,462 40,029,074
-------- ----------- --------- ------------
Net gain on investments -- -- 3,828,268 45,820,926
-------- ----------- --------- ------------
Net increase in net assets resulting from
operations $ 155,645 $ 1,288,925 $3,770,482 $44,202,020
======== =========== ========= ============
Multi-Sector Fixed Income Total Return
Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
------------------------ --------------------------
<S> <C> <C> <C> <C>
Investment income
Distributions $ 441,705 $ 3,346,395 $ 781,588 $ 3,264,584
Expenses
Mortality and expense risk charges 63,123 543,960 308,612 1,587,070
-------- ----------- --------- ------------
Net investment income 378,582 2,802,435 472,976 1,677,514
-------- ----------- --------- ------------
Net realized gain (loss) from share
transactions 419,459 (34,727) 134,133 702
Net realized gain distribution from Fund -- -- 325,252 1,393,715
Net unrealized appreciation (depreciation)
on investment (475,272) (985,007) 1,448,596 6,305,914
-------- ----------- --------- ------------
Net gain (loss) on investments (55,813) (1,019,734) 1,907,981 7,700,331
-------- ----------- --------- ------------
Net increase in net assets resulting from
operations $ 322,769 $ 1,782,701 $2,380,957 $ 9,377,845
======== =========== ========= ============
International Balanced
Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
------------------------ --------------------------
<S> <C> <C> <C> <C>
Investment income
Distributions $ -- $ -- $ 74,197 $ 2,537,799
Expenses
Mortality and expense risk charges 26,729 727,206 25,937 1,088,391
-------- ----------- --------- ------------
Net investment income (loss) (26,729) (727,206) 48,260 1,449,408
-------- ----------- --------- ------------
Net realized gain from share transactions 17,684 11,192 19,512 67,033
Net realized gain distribution from Fund 7,005 156,840 178,496 6,231,401
Net unrealized appreciation (depreciation)
on investment 637,446 14,339,653 (120,005) (3,490,802)
-------- ----------- --------- ------------
Net gain on investments 662,135 14,507,685 78,003 2,807,632
-------- ----------- --------- ------------
Net increase in net assets resulting from
operations $ 635,406 $13,780,479 $ 126,263 $ 4,257,040
======== =========== ========= ============
</TABLE>
See Notes to Financial Statements
4
<PAGE>
STATEMENT OF OPERATIONS
For the period ended June 30, 1996
(Unaudited) (Continued)
<TABLE>
<CAPTION>
Real Estate Strategic Theme
Sub-Account Sub-Account (1)
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
------------------------ --------------------------
<S> <C> <C> <C> <C>
Investment income
Distributions $ 1,665 $ 262,178 $ -- $ --
Expenses
Mortality and expense risk charges 251 57,291 579 40,969
------- ----------- ------- ------------
Net investment income (loss) 1,414 204,887 (579) (40,969)
------- ----------- ------- ------------
Net realized gain (loss) from share
transactions 7 315 (61) (6,620)
Net unrealized appreciation on investment 1,929 320,350 7,367 624,197
------- ----------- ------- ------------
Net gain on investments 1,936 320,665 7,306 617,577
------- ----------- ------- ------------
Net increase in net assets resulting from
operations $ 3,350 $ 525,552 $ 6,727 $ 576,608
======= =========== ======= ============
Wanger International Small Cap Wanger U.S. Small Cap
Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
------------------------ --------------------------
<S> <C> <C> <C> <C>
Investment income
Distributions $ 1,241 $ 50,527 $ 1,323 $ 58,386
Expenses
Mortality and expense risk charges 4,041 150,757 9,915 227,214
------- ----------- ------- ------------
Net investment income (loss) (2,800) (100,230) (8,592) (168,828)
------- ----------- ------- ------------
Net realized gain (loss) from share
transactions 1,364 5,378 40 (4,065)
Net unrealized appreciation on investment 170,638 5,361,347 359,215 9,411,501
------- ----------- ------- ------------
Net gain on investments 172,002 5,366,725 359,255 9,407,436
------- ----------- ------- ------------
Net increase in net assets resulting from
operations $169,202 $5,266,495 $350,663 $9,238,608
======= =========== ======= ============
</TABLE>
(1) From inception January 29, 1996 to June 30, 1996
See Notes to Financial Statements
5
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the period ended June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Multi-Sector
Money Market Growth Fixed Income
Sub-Account Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
--------------------------- --------------------------- ------------------------
<S> <C> <C> <C> <C> <C> <C>
From operations
Net investment income (loss) $ 155,645 $ 1,288,925 $ (57,786) $ (1,618,906) $ 378,582 $2,802,435
Net realized gain (loss) -- -- 572,806 5,791,852 419,459 (34,727)
Net unrealized appreciation (depreciation) -- -- 3,255,462 40,029,074 (475,272) (985,007)
---------- ----------- ---------- ----------- ---------- -----------
Net increase in net assets resulting from
operations 155,645 1,288,925 3,770,482 44,202,020 322,769 1,782,701
---------- ----------- ---------- ----------- --------- ------------
From accumulation unit transactions
Participant deposits 137,194 34,368,248 593,102 66,151,410 218,616 7,338,906
Participant transfers 516,329 (29,960,634) (547,870) (3,071,860) (2,960,370) (1,415,132)
Participant withdrawals (1,314,403) (8,958,096) (2,862,772) (7,711,355) (579,909) (4,360,793)
---------- ----------- ---------- ----------- ---------- ------------
Net increase (decrease) in net assets
resulting from participant transactions (660,880) (4,550,482) (2,817,540) 55,368,195 (3,321,663) 1,562,981
---------- ----------- ---------- ----------- ---------- -----------
Net increase (decrease) in net assets (505,235) (3,261,557) 952,942 99,570,215 (2,998,894) 3,345,682
Net assets
Beginning of period 7,070,050 74,055,151 67,451,527 763,609,820 14,929,145 84,107,747
---------- ----------- ---------- ----------- ---------- ------------
End of period $ 6,564,815 $ 70,793,594 $68,404,469 $863,180,035 $11,930,251 $87,453,429
========== =========== ========== =========== ========== ============
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
VA2, VA3 & VA2, VA3 & VA2,
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
--------------------------- --------------------------- ------------------------
<S> <C> <C> <C> <C> <C> <C>
From operations
Net investment income (loss) $ 472,976 $ 1,677,514 $ (26,729) $ (727,206) $ 48,260 $ 1,449,408
Net realized gain 459,385 1,394,417 24,689 168,032 198,008 6,298,434
Net unrealized appreciation (depreciation) 1,448,596 6,305,914 637,446 14,339,653 (120,005) (3,490,802)
---------- ----------- ---------- ----------- ---------- ------------
Net increase in net assets resulting from
operations 2,380,957 9,377,845 635,406 13,780,479 126,263 4,257,040
---------- ----------- ---------- ----------- ---------- ------------
From accumulation unit transactions
Participant deposits 528,832 13,908,139 80,778 5,443,018 61,686 8,507,499
Participant transfers (2,504,248) (5,977,704) 19,408 2,815,036 (512,042) (4,364,238)
Participant withdrawals (2,808,703) (7,354,288) (300,007) (4,137,679) (214,167) (6,729,762)
---------- ----------- ---------- ----------- ---------- ------------
Net increase (decrease) in net assets
resulting from participant transactions (4,784,119) 576,147 (199,821) 4,120,375 (664,523) (2,586,501)
---------- ----------- ---------- ----------- ---------- ------------
Net increase (decrease) in net assets (2,403,162) 9,953,992 435,585 17,900,854 (538,260) 1,670,539
Net assets
Beginning of period 63,511,935 251,894,713 5,174,541 107,155,033 5,529,863 172,687,617
---------- ----------- ---------- ----------- ---------- ------------
End of period $61,108,773 $261,848,705 $ 5,610,126 $125,055,887 $ 4,991,603 $174,358,156
========== =========== ========== =========== ========== ============
</TABLE>
See Notes to Financial Statements
6
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the period ended June 30, 1996
(Unaudited) (Continued)
<TABLE>
<CAPTION>
Real Estate Strategic Theme
Sub-Account Sub-Account (1)
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
------------------------- --------------------------
<S> <C> <C> <C> <C>
From operations
Net investment income (loss) $ 1,414 $ 204,887 $ (579) $ (40,969)
Net realized gain (loss) 7 315 (61) (6,620)
Net unrealized appreciation 1,929 320,350 7,367 624,197
--------- ----------- --------- ------------
Net increase in net assets
resulting from operations 3,350 525,552 6,727 576,608
--------- ----------- --------- ------------
From accumulation unit transactions
Participant deposits 4,338 630,035 90,515 6,905,145
Participant transfers 34,836 1,033,767 231,151 4,886,119
Participant withdrawals (861) (72,359) -- (7,665)
--------- ----------- --------- ------------
Net increase in net assets resulting
from participant transactions 38,313 1,591,443 321,666 11,783,599
--------- ----------- --------- ------------
Net increase in net assets 41,663 2,116,995 328,393 12,360,207
Net assets
Beginning of period 39,302 8,188,127 0 0
--------- ----------- --------- ------------
End of period $ 80,965 $10,305,122 $ 328,393 $12,360,207
========= =========== ========= ============
Wanger International Small Cap Wanger U.S. Small Cap
Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
------------------------ -------------------------
From operations
Net investment income (loss) $ (2,800) $ (100,230) $ (8,592) $ (168,828)
Net realized gain (loss) 1,364 5,378 40 (4,065)
Net unrealized appreciation 170,638 5,361,347 359,215 9,411,501
--------- ----------- --------- ------------
Net increase in net assets resulting
from operations 169,202 5,266,495 350,663 9,238,608
--------- ----------- --------- ------------
From accumulation unit transactions
Participant deposits 103,303 7,682,300 172,413 9,767,086
Participant transfers 1,293,890 20,544,920 4,515,770 23,400,508
Participant withdrawals (52,655) (472,847) (55,152) (543,084)
--------- ----------- --------- ------------
Net increase in net assets resulting
from participant transactions 1,344,538 27,754,373 4,633,031 32,624,510
--------- ----------- --------- ------------
Net increase in net assets 1,513,740 33,020,868 4,983,694 41,863,118
Net assets
Beginning of period 241,240 10,326,504 532,955 19,694,333
--------- ----------- --------- ------------
End of period $1,754,980 $43,347,372 $5,516,649 $61,557,451
========= =========== ========= ============
</TABLE>
(1) From inception January 29, 1996 to June 30, 1996
See Notes to Financial Statements
7
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the year ended December 31, 1995
<TABLE>
<CAPTION>
Multi-Sector
Money Market Growth Fixed Income
Sub-Account Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
--------------------------- --------------------------- ------------------------
<S> <C> <C> <C> <C> <C> <C>
From operations
Net investment income (loss) $ 359,860 $ 3,025,129 $ 65,170 $ (840,458) $ 1,017,753 $ 5,072,165
Net realized gain -- -- 7,548,511 81,208,257 55,037 17,918
Net unrealized appreciation -- -- 8,168,033 75,535,624 1,761,715 8,666,711
---------- ----------- ---------- ----------- ---------- ------------
Net increase in net assets resulting
from operations 359,860 3,025,129 15,781,714 155,903,423 2,834,505 13,756,794
---------- ----------- ---------- ----------- ---------- ------------
From accumulation unit transactions
Participant deposits 5,752 62,308,151 1,598,579 124,955,151 158,313 12,197,018
Participant transfers (180,776) (53,470,824) 3,015,663 43,180,634 (3,366) 6,303,584
Participant withdrawals (2,199,526) (10,625,595) (6,259,870) (37,686,221) (1,429,692) (4,002,038)
---------- ----------- ---------- ----------- ---------- ------------
Net increase (decrease) in net assets
resulting from participant transactions (2,374,550) (1,788,268) (1,645,628) 130,449,564 (1,274,745) 14,498,564
---------- ----------- ---------- ----------- ---------- ------------
Net increase (decrease) in net assets (2,014,690) 1,236,861 14,136,086 286,352,987 1,559,760 28,255,358
Net assets
Beginning of period 9,084,740 72,818,290 53,315,441 477,256,833 13,369,385 55,852,389
---------- ----------- ---------- ----------- ---------- ------------
End of period $ 7,070,050 $ 74,055,151 $67,451,527 $763,609,820 $14,929,145 $ 84,107,747
========== =========== ========== =========== ========== ============
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE VA1 VA2, VA3 & GSE
--------------------------- --------------------------- ------------------------
From operations
Net investment income (loss) $ 1,381,331 $ 4,688,509 $ (40,806) $ (964,732) $ 123,820 $ 3,467,905
Net realized gain (loss) 4,218,277 15,383,213 (62,555) 1,346,145 134,199 3,628,855
Net unrealized appreciation 4,176,429 14,852,737 540,494 7,779,441 767,657 23,829,474
---------- ----------- ---------- ----------- ---------- ------------
Net increase in net assets resulting
from operations 9,776,037 34,924,459 437,133 8,160,854 1,025,676 30,926,234
---------- ----------- ---------- ----------- ---------- ------------
From accumulation unit transactions
Participant deposits 1,028,187 32,735,047 148,158 16,055,112 127,367 15,492,037
Participant transfers (1,572,062) (2,629,446) (2,352,617) (19,987,552) (387,341) (9,618,084)
Participant withdrawals (5,833,027) (16,146,431) (569,829) (7,873,129) (555,779) (10,194,737)
---------- ----------- ---------- ----------- ---------- ------------
Net increase (decrease) in net assets
resulting from participant transactions (6,376,902) 13,959,170 (2,774,288) (11,805,569) (815,753) (4,320,784)
---------- ----------- ---------- ----------- ---------- ------------
Net increase (decrease) in net assets 3,399,135 48,883,629 (2,337,155) (3,644,715) 209,923 26,605,450
Net assets
Beginning of period 60,112,800 203,011,084 7,511,696 110,799,748 5,319,940 146,082,167
---------- ----------- ---------- ----------- ---------- ------------
End of period $63,511,935 $251,894,713 $ 5,174,541 $107,155,033 $ 5,529,863 $172,687,617
========== =========== ========== =========== ========== ============
</TABLE>
See Notes to Financial Statements
8
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
From inception May 1, 1995 to December 31, 1995
(Continued)
<TABLE>
<CAPTION>
Wanger International
Real Estate Small Cap Wanger U.S. Small Cap
Sub-Account Sub-Account Sub-Account
VA1 VA2, VA3 & GSE VA1 VA2, VA3 VA1 VA2, VA3
---------------------- ---------------------- ----------------------
<S> <C> <C> <C> <C> <C> <C>
From operations
Net investment income (loss) $ 765 $ 155,874 $ (513) $ (37,360) $ (1,865) $ (80,663)
Net realized gain (loss) 292 65,056 4 8,695 (747) (3,774)
Net unrealized appreciation 3,394 820,245 19,049 1,002,242 23,773 379,548
------ ----------- ------- ---------- ------- ----------
Net increase in net assets resulting
from operations 4,451 1,041,175 18,540 973,577 21,161 295,111
------ ----------- ------- ---------- ------- ----------
From accumulation unit transactions
Participant deposits 416 5,827,754 20,936 3,531,791 36,476 7,685,414
Participant transfers 35,382 1,329,121 201,764 5,974,479 478,823 11,864,286
Participant withdrawals (947) (9,923) -- (153,343) (3,505) (150,478)
------ ----------- ------- ---------- ------- ----------
Net increase in net assets resulting
from participant transactions 34,851 7,146,952 222,700 9,352,927 511,794 19,399,222
------ ----------- ------- ---------- ------- ----------
Net increase in net assets 39,302 8,188,127 241,240 10,326,504 532,955 19,694,333
Net assets
Beginning of period -- -- -- -- -- --
------ ----------- ------- ---------- ------- ----------
End of period $39,302 $8,188,127 $241,240 $10,326,504 $532,955 $19,694,333
====== =========== ======= ========== ======= ==========
</TABLE>
See Notes to Financial Statements
9
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a unit outstanding throughout the indicated period)
(Unaudited)
<TABLE>
<CAPTION>
Money Market Sub-Account
VA1 VA2, VA3 & GSE
--------------------- ----------------------
For the period ended For the period ended
6/30/96 12/31/95 6/30/96 12/31/95
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
Unit value, beginning of period $2.045097 $1.954211 $2.000092 $1.915930
Income from investment operations
Net investment income 0.039895 0.090886 0.036523 0.084162
-------- -------- -------- ---------
Total from investment operations 0.039895 0.090886 0.036523 0.084162
-------- -------- -------- ---------
Unit value, end of period $2.084992 $2.045097 $2.036615 $2.000092
======== ======== ======== =========
Total return 1.95%(1) 4.65% 1.83%(1) 4.39%
Net assets, end of period (000) $ 6,565 $ 7,070 $ 70,794 $ 74,055
</TABLE>
<TABLE>
<CAPTION>
Growth Sub-Account
VA1 VA2, VA3 & GSE
---------------------- ------------------------
For the period ended For the period ended
6/30/96 12/31/95 6/30/96 12/31/95
---------- --------- ---------- -----------
<S> <C> <C> <C> <C>
Unit value, beginning of period $ 8.273644 $6.384494 $ 8.093932 $ 6.261062
Income from investment operations
Net investment income (loss) (0.007202) 0.007800 (0.016452) (0.009881)
Net realized and unrealized gain 0.477125 1.881350 0.465662 1.842751
--------- -------- --------- ----------
Total from investment operations 0.469923 1.889150 0.449210 1.832870
--------- -------- --------- ----------
Unit value, end of period $ 8.743567 $8.273644 $ 8.543142 $ 8.093932
========= ======== ========= ==========
Total return 5.68%(1) 29.59% 5.55%(1) 29.27%
Net assets, end of period (000) $ 68,404 $ 67,452 $ 863,180 $ 763,610
</TABLE>
<TABLE>
<CAPTION>
Multi-Sector Fixed Income Sub-Account
VA1 VA2, VA3 & GSE
---------------------- -----------------------
For the period ended For the period ended
6/30/96 12/31/95 6/30/96 12/31/95
---------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Unit value, beginning of period $ 3.379335 $2.762836 $ 3.306804 $2.710153
Income from investment operations
Net investment income 0.090867 0.221359 0.112586 0.219987
Net realized and unrealized gain (0.013396) 0.395140 (0.040967) 0.376664
--------- -------- --------- ---------
Total from investment operations 0.077471 0.616499 0.071619 0.596651
--------- -------- --------- ---------
Unit value, end of period $ 3.456806 $3.379335 $ 3.378423 $3.306804
========= ======== ========= =========
Total return 2.29%(1) 22.31% 2.17%(1) 22.02%
Net assets, end of period (000) $ 11,930 $ 14,929 $ 87,453 $ 84,108
</TABLE>
<TABLE>
<CAPTION>
Total Return Sub-Account
VA1 VA2, VA3 & GSE
--------------------- ----------------------
For the period ended For the period ended
6/30/96 12/31/95 6/30/96 12/31/95
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
Unit value, beginning of period $3.520947 $3.008513 $3.442824 $2.948151
Income from investment operations
Net investment income 0.026943 0.072406 0.022943 0.066408
Net realized and unrealized gain 0.108689 0.440028 0.105316 0.428265
-------- -------- -------- ---------
Total from investment operations 0.135632 0.512434 0.128259 0.494673
-------- -------- -------- ---------
Unit value, end of period $3.656579 $3.520947 $3.571083 $3.442824
======== ======== ======== =========
Total return 3.85%(1) 17.03% 3.73%(1) 16.78%
Net assets, end of period (000) $ 61,109 $ 63,512 $ 261,849 $ 251,895
</TABLE>
(1) Unannualized
See Notes to Financial Statements
10
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a unit outstanding throughout the indicated period)
(Unaudited) (Continued)
<TABLE>
<CAPTION>
International Sub-Account
VA1 VA2, VA3 & GSE
----------------------- ------------------------
For the period ended For the period ended
6/30/96 12/31/95 6/30/96 12/31/95
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Unit value, beginning of period $ 1.375527 $ 1.267735 $ 1.356645 $ 1.253391
Income from investment operations
Net investment income (loss) (0.007331) (0.010062) (0.008972) (0.012206)
Net realized and unrealized gain 0.181602 0.117854 0.178992 0.115460
--------- --------- --------- ----------
Total from investment operations 0.174271 0.107792 0.170020 0.103254
--------- --------- --------- ----------
Unit value, end of period $ 1.549798 $ 1.375527 $ 1.526665 $ 1.356645
========= ========= ========= ==========
Total return 12.67%(1) 8.50% 12.53%(1) 8.24%
Net assets, end of period (000) $ 5,610 $ 5,175 $ 125,056 $ 107,155
</TABLE>
<TABLE>
<CAPTION>
Balanced Sub-Account
VA1 VA2, VA3 & GSE
--------------------- ----------------------
For the period ended For the period ended
6/30/96 12/31/95 6/30/96 12/31/95
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
Unit value, beginning of period $1.373104 $1.124370 $1.360620 $1.116862
Income from investment operations
Net investment income (loss) 0.013575 0.030027 0.011396 0.027334
Net realized and unrealized gain 0.021941 0.218707 0.022075 0.216424
-------- -------- -------- ---------
Total from investment operations 0.035516 0.248734 0.033471 0.243758
-------- -------- -------- ---------
Unit value, end of period $1.408620 $1.373104 $1.394091 $1.360620
======== ======== ======== =========
Total return 2.59%(1) 22.12% 2.46%(1) 21.83%
Net assets, end of period (000) $ 4,992 $ 5,530 $ 174,358 $ 172,688
</TABLE>
<TABLE>
<CAPTION>
Real Estate Sub-Account
VA1 VA2, VA3 & GSE
--------------------- ----------------------
For the period ended For the period ended
12/31/95 12/31/95
6/30/96 (2) 6/30/96 (2)
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
Unit value, beginning of period $1.155453 $1.000000 $1.168262 $1.000000
Income from investment operations
Net investment income (loss) 0.028303 0.026718 0.025835 0.025191
Net realized and unrealized gain 0.038751 0.128735 0.040435 0.143071
-------- -------- -------- ---------
Total from investment operations 0.067054 0.155453 0.066270 0.168262
-------- -------- -------- ---------
Unit value, end of period $1.222507 $1.155453 $1.234532 $1.168262
======== ======== ======== =========
Total return 5.80%(1) 15.55%(1) 5.67%(1) 16.83%(1)
Net assets, end of period (000) $ 81 $ 39 $ 10,305 $ 8,188
</TABLE>
<TABLE>
<CAPTION>
Strategic Theme
Sub-Account
VA2, VA3 &
VA1 GSE
---------- ------------
For the period ended
6/30/96 (3) 6/30/96 (3)
---------- ------------
<S> <C> <C>
Unit value, beginning of period $ 1.000000 $ 1.000000
Income from investment operations
Net investment income (loss) (0.006955) (0.006175)
Net realized and unrealized gain 0.087758 0.093080
--------- -----------
Total from investment operations 0.080803 0.086905
--------- -----------
Unit value, end of period $ 1.080803 $ 1.086905
========= ===========
Total return 8.08%(1) 8.69%(1)
Net assets, end of period (000) $ 328 $ 12,360
</TABLE>
(1) Unannualized
(2) From inception May 1, 1995 to December 31, 1995
(3) From inception January 29, 1996 to June 30, 1996
See Notes to Financial Statements
11
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a unit outstanding throughout the indicated period)
(Unaudited) (Continued)
<TABLE>
<CAPTION>
Wanger International Small Cap Sub-Account
VA1 VA2, VA3 & GSE
----------------------- ------------------------
For the period ended For the period ended
6/30/96 12/31/95(2) 6/30/96 12/31/95(2)
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Unit value, beginning of period $ 1.239576 $ 1.000000 $ 1.334598 $ 1.000000
Income from investment operations
Net investment income (loss) (0.005568) (0.006629) (0.006856) (0.012840)
Net realized and unrealized gain 0.342067 0.246205 0.367088 0.347438
--------- --------- --------- ----------
Total from investment operations 0.336499 0.239576 0.360232 0.334598
--------- --------- --------- ----------
Unit value, end of period $ 1.576075 $ 1.239576 $ 1.694830 $ 1.334598
========= ========= ========= ==========
Total return 27.15%(1) 23.96%(1) 26.99%(1) 33.46%(1)
Net assets, end of period (000) $ 1,755 $ 241 $ 43,347 $ 10,327
</TABLE>
<TABLE>
<CAPTION>
Wanger U.S. Small Cap Sub-Account
VA1 VA2, VA3 & GSE
----------------------- ------------------------
For the period ended For the period ended
6/30/96 12/31/95(2) 6/30/96 12/31/95(2)
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Unit value, beginning of period $ 1.157802 $ 1.000000 $ 1.155807 $ 1.000000
Income from investment operations
Net investment income (loss) (0.008995) (0.013908) (0.006662) (0.042587)
Net realized and unrealized gain 0.376093 0.171710 0.371245 0.198394
--------- --------- --------- ----------
Total from investment operations 0.367098 0.157802 0.364583 0.155807
--------- --------- --------- ----------
Unit value, end of period $ 1.524900 $ 1.157802 $ 1.520390 $ 1.155807
========= ========= ========= ==========
Total return 31.71%(1) 15.78%(1) 31.54%(1) 15.58%(1)
Net assets, end of period (000) $ 5,517 $ 533 $ 61,557 $ 19,694
</TABLE>
(1) Unannualized
(2) From inception May 1, 1995 to December 31, 1995
See Notes to Financial Statements
12
<PAGE>
PHOENIX HOME LIFE VARIABLE ACCUMULATION ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(Unaudited)
Note 1--Organization:
Phoenix Home Life Variable Accumulation Account (the Account) is a
separate investment account of Phoenix Home Life Mutual Insurance Company
(Phoenix) registered as a unit investment trust. The Account currently has
ten Sub-accounts to which contract values may be allocated and invest solely
in a designated portfolio of The Phoenix Edge Series Fund and/or Wanger
Advisors Trust (the "Funds"). The Account is offered as The Big Edge and The
Big Edge Plus to individuals (VA1, VA2 and VA3) and is also offered as Group
Strategic Edge ("GSE") to groups to fund certain tax-qualified pension plans
or profit sharing plans. The Money Market, Growth, Multi-Sector Fixed Income,
(formerly Bond), Total Return, International, Balanced, Real Estate,
Strategic Theme, Wanger International Small Cap and Wanger U.S. Small Cap
Sub-accounts are subdivided into two pools designated "VA1" and "VA2, VA3 &
GSE". VA2 and VA3 contracts include a higher expense risk charge than the VA1
contract. VA3 and GSE contract holders may also direct the allocation of
their investments between the Account and the Guaranteed Interest Account and
of the general account of Phoenix through participant transfers. The Fund's
Growth, Multi-Sector Fixed Income and Total Return Series are successors to
the investing activities of the Stock, Multi-Sector Fixed Income and Total
Return Sub-accounts.
Each Series has distinct investment objectives. The Money Market Series is
a pooled short-term investment fund, the Growth Series is a growth common
stock fund, the Multi-Sector Fixed Income Series is a long-term debt fund,
the Total Return Series invests in equity securities and long and short-term
debt, the International Series invests primarily in an internationally
diversified portfolio of equity securities and the Balanced Series is a
balanced fund which invests in growth stocks and at least 25% of its assets
in fixed income senior securities. The Real Estate Series invests in
marketable securities of publicly traded real estate investment trusts
("REITs") and companies that are principally engaged in the real estate
industry. The Strategic Theme Series invests in securities of companies
believed to benefit from specific trends. Wanger International Small Cap and
Wanger U.S. Small Cap invest primarily in securities of companies with a
stock market capitalization of less than $1 billion.
Note 2--Significant Accounting Policies
A. Valuation of Investments: Investments are made exclusively in the Funds
and are valued at the net asset values per share of the respective Series.
B. Investment transactions and related income: Realized gains and losses
include capital gain distributions from the Funds as well as gains and losses
on sales of shares in the Funds determined on the LIFO (last in, first out)
basis.
C. Income taxes: The Account is not a separate entity from Phoenix and under
current federal income tax law, income in the Account is not taxed since
reserves are established equivalent to such income. Therefore, no provision
for related federal or state income taxes is required.
D. Distributions: Distributions are recorded as investment income on the
ex-dividend date.
Note 3--Purchases and Sales of Shares of The Funds
Purchases and sales of shares of the Funds for the period ended June 30,
1996 aggregated the following:
<TABLE>
<CAPTION>
VA1 VA2, VA3 & GSE
----------------------- --------------------------
Sub-Account Purchases Sales Purchases Sales
------------------------------- ---------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
The Phoenix Edge Series Fund:
Money Market $5,747,389 $6,253,103 $ 36,174,496 $39,441,218
Growth 4,455,969 6,883,348 119,962,403 60,465,770
Multi-Sector Fixed Income 1,844,977 4,791,110 13,011,450 8,647,577
Total Return 1,374,773 5,364,071 13,922,490 10,272,734
International 905,383 1,124,800 9,089,688 5,525,671
Balanced 663,355 1,101,593 14,492,587 9,399,912
Real Estate 40,799 1,041 2,237,334 439,140
Strategic Theme 323,258 1,947 12,620,594 867,258
Wanger Advisors Trust:
Wanger International Small Cap 1,574,237 231,439 28,724,281 1,036,979
Wanger U.S. Small Cap. 4,815,126 186,981 32,871,486 378,106
</TABLE>
13
<PAGE>
PHOENIX HOME LIFE VARIABLE ACCUMULATION ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(Unaudited) (Continued)
Note 4--Participant Accumulation Unit Transactions (in units):
<TABLE>
<CAPTION>
Sub-Account
--------------------------------------------------------------------------------------
Money Multi-Sector Total
Market Growth Fixed Income Return International Balanced
------------ ----------- ------------ ----------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
VA1
Big Edge:
Participant deposits 66,563 70,254 63,985 147,748 55,880 44,309
Participant transfers 261,321 (62,586) (860,634) (695,053) 8,111 (371,086)
Participant withdrawals (636,353) (336,841) (169,892) (779,000) (205,945) (156,883)
VA2, VA3
Big Edge Plus:
Participant deposits 16,262,669 6,636,843 1,956,868 3,631,552 3,425,811 5,508,544
Participant transfers (16,373,503) (211,908) (439,440) (1,521,151) 2,067,262 (3,086,764)
Participant withdrawals (2,960,628) (2,678,634) (1,205,054) (2,035,899) (2,739,290) (4,746,221)
Group Strategic Edge:
Participant deposits 826,828 3,063,506 208,035 223,315 237,109 420,202
Participant transfers 449,232 19,809 38,399 (63,014) 36,863 188,452
Participant withdrawals (470,053) (135,335) (107,692) (75,226) (98,626) (133,098)
</TABLE>
<TABLE>
<CAPTION>
Wanger
Strategic International Wanger U.S. Small
VA1 Real Estate Theme Small Cap Cap
----------- --------- ----------------- --------------------
<S> <C> <C> <C> <C>
Big Edge:
Participant deposits 3,709 87,210 68,981 121,892
Participant transfers 29,239 216,632 886,046 3,074,276
Participant withdrawals (733) -- (36,129) (38,772)
VA2, VA3
Big Edge Plus:
Participant deposits 506,506 6,784,984 4,617,885 6,954,687
Participant transfers 794,883 4,554,756 13,239,930 16,499,870
Participant withdrawals (61,698) (8,648) (349,317) (491,236)
Group Strategic Edge:
Participant deposits 9,282 735 130,510 129,886
Participant transfers 89,620 40,107 183,166 333,686
Participant withdrawals (7) -- 16,529 21,570
</TABLE>
Note 5--Investment Advisory Fees and Related Party Transactions:
Phoenix and its indirect, majority owned subsidiary, Phoenix Equity
Planning Corporation, a registered broker/dealer in securities, provide all
services to the Account.
Phoenix assumes the risk that annuitants as a class may live longer than
expected and that its expenses may be higher than its deductions for such
expenses. In return for the assumption of these mortality and expense risks,
Phoenix charges the sub-accounts designated VA1 the daily equivalent of 0.40%
on an annual basis of the current value of net assets for mortality risks and
the daily equivalent of 0.60% on an annual basis for expense risks assumed.
VA2, VA3 & GSE sub-accounts are charged the daily equivalent of 0.40% and
0.85% on an annual basis for mortality and expense risks, respectively.
As compensation for administrative services provided to the Account,
Phoenix additionally receives $35 per year from each contract, which is
deducted from the sub-account holding the assets of the participant, or on a
pro rata basis from two or more sub-accounts in relation to their values
under the contract. Fees for administrative services provided for the period
ended June 30, 1996 aggregated $887,406 and are funded by and included in
participant withdrawals.
Phoenix Equity Planning Corporation is the principal underwriter and
distributor for the Account. Phoenix reimburses Phoenix Equity Planning
Corporation for expenses incurred as underwriter. On surrender of a contract,
contingent deferred sales charges, which vary from 0-6% depending upon the
duration of each contract deposit, are deducted from the proceeds and are
paid to Phoenix as reimbursement for services provided. Contingent deferred
sales charges deducted and paid to Phoenix aggregated $1,072,584 for the
period ended June 30, 1996.
14
<PAGE>
PHOENIX HOME LIFE VARIABLE ACCUMULATION ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(Unaudited) (Continued)
Note 6--Distribution of Net Income:
The Account does not expect to declare dividends to participants from
accumulated net income. The accumulated net income is distributed to
participants as part of withdrawals of amounts in the form of surrenders,
death benefits, transfers or annuity payments in excess of net purchase
payments.
Note 7--Diversification Requirements:
Under the provisions of Section 817(h) of the Internal Revenue Code (the
Code), a variable annuity contract, other than a contract issued in
connection with certain types of employee benefit plans, will not be treated
as an annuity contract for federal tax purposes for any period for which the
investments of the segregated asset account on which the contract is based
are not adequately diversified. The Code provides that the "adequately
diversified" requirement may be met if the underlying investments satisfy
either a statutory safe harbor test or diversification requirements set forth
in regulations issued by the Secretary of the Treasury.
The Internal Revenue Service has issued regulations under Section 817(h)
of the Code. Phoenix believes that the Account satisfies the current
requirements of the regulations, and it intends that the Account will
continue to meet such requirements.
15
<PAGE>
PHOENIX HOME LIFE
VARIABLE ACCUMULATION ACCOUNT
Phoenix Home Life Mutual Insurance Company
One American Row
Hartford, Connecticut 06115
Underwriter
Phoenix Equity Planning Corporation
P.O. Box 2200
100 Bright Meadow Boulevard
Enfield, Connecticut 06083-2200
Custodians
The Chase Manhattan Bank, N.A.
1 Chase Manhattan Plaza
Floor 3B
New York, New York 10081
Brown Brothers Harriman & Co.
(International Series)
40 Water Street
Boston, Massachusetts 02109
State Street Bank and Trust
(Real Estate Securities)
P.O. Box 351
Boston, Massachusetts 02101
<PAGE>
[LOGO] Phoenix Home Life
BULK RATE
U.S. Postage
PAID
Permit No. 444
Springfield, MA
Phoenix Home Life Mutual Insurance Company
101 Munson Street
P.O. Box 942
Greenfield, Massachusetts 01302-0942
P726 (8/96)
700.04
[RECYCLE LOGO] Printed on recycled paper using soybean ink
(C)1996 Phoenix Home Life Mutual Insurance Company
