Phoenix Home Life
The Big Edge Plus(r)
Group Strategic Edge(r)
Annual Reports for:
Phoenix Home Life Variable
Accumulation Account
The Phoenix Edge Series Fund
Wanger Advisors Trust
December 31, 1995
<PAGE>
TABLE OF CONTENTS
PHOENIX HOME LIFE VARIABLE ACCUMULATION ACCOUNT
Money Market Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Financial Highlights 7
Growth Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Financial Highlights 7
Bond Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Financial Highlights 7
Total Return Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Financial Highlights 7
International Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Financial Highlights 8
Balanced Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Financial Highlights 8
Real Estate Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 5
Financial Highlights 9
Wanger International Small Cap Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 5
Financial Highlights 9
Wanger U.S. Small Cap Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 5
Financial Highlights 9
Notes to Financial Statements 10
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 2-7
Statement of Assets and Liabilities 2-9
Statement of Operations 2-9
Statement of Changes in Net Assets 2-10
Financial Highlights 2-10
Bond Series
Schedule of Investments 2-12
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 2-19
Statement of Operations 2-19
Statement of Changes in Net Assets 2-20
Financial Highlights 2-20
International Series
Schedule of Investments 2-22
Statement of Assets and Liabilities 2-24
Statement of Operations 2-24
Statement of Changes in Net Assets 2-25
Financial Highlights 2-25
Balanced Series
Schedule of Investments 2-27
Statement of Assets and Liabilities 2-30
Statement of Operations 2-30
Statement of Changes in Net Assets 2-31
Financial Highlights 2-31
Real Estate Series
Schedule of Investments 2-33
Statement of Assets and Liabilities 2-34
Statement of Operations 2-34
Statement of Changes in Net Assets 2-35
Financial Highlights 2-35
Notes to Financial Statements 2-36
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 annual report for the Phoenix
Home Life Variable Accumulation Account
for the year ended December 31, 1995,
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
December 31, 1995
<TABLE>
<CAPTION>
Money Market Growth Bond
Sub-Account Sub-Account Sub-Account
VA2, VA3 & VA2, VA3 &
VA1 GSE VA1 GSE VA1 VA2, VA3 & GSE
-------------------------- -------------------------- ------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments at
cost $ 7,075,669 $ 74,126,632 $47,452,847 $685,863,537 $14,187,687 $ 80,581,632
========= ========= ========= ========= ========= =============
Investment in The
Phoenix Edge
Series Fund, at
market $ 7,075,669 $ 74,126,632 $67,504,702 $764,352,262 $14,941,245 $ 84,191,827
--------- --------- --------- --------- --------- -------------
Total assets 7,075,669 74,126,632 67,504,702 764,352,262 14,941,245 84,191,827
Liabilities
Accrued expenses
to related party 5,619 71,481 53,175 742,442 12,100 84,080
--------- --------- --------- --------- --------- -------------
Net assets $ 7,070,050 $ 74,055,151 $67,451,527 $763,609,820 $14,929,145 $ 84,107,747
========= ========= ========= ========= ========= =============
Accumulation units
outstanding 3,457,073 37,025,879 8,152,578 94,343,494 4,417,776 25,434,758
========= ========= ========= ========= ========= =============
Unit value $ 2.045097 $ 2.000092 $ 8.273644 $ 8.093932 $ 3.379335 $ 3.306804
========= ========= ========= ========= ========= =============
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
VA2, VA3 & VA2, VA3 &
VA1 GSE VA1 GSE VA1 VA2, VA3 & GSE
------------------------ ------------------------ ----------------------------
Assets
Investments at
cost $50,768,898 $243,337,601 $ 4,382,423 $ 97,441,596 $ 4,778,131 $154,667,813
========= ========= ========= ========= ========= =============
Investment in The
Phoenix Edge
Series Fund, at
market $63,562,140 $252,141,739 $ 5,178,634 $107,259,095 $ 5,534,172 $172,856,400
--------- --------- --------- --------- --------- -------------
Total assets 63,562,140 252,141,739 5,178,634 107,259,095 5,534,172 172,856,400
Liabilities
Accrued expenses
to related party 50,205 247,026 4,093 104,062 4,309 168,783
--------- --------- --------- --------- --------- -------------
Net assets $63,511,935 $251,894,713 $ 5,174,541 $107,155,033 $ 5,529,863 $172,687,617
========= ========= ========= ========= ========= =============
Accumulation units
outstanding 18,038,311 73,165,148 3,761,861 78,985,319 4,027,273 126,918,305
========= ========= ========= ========= ========= =============
Unit value $ 3.520947 $ 3.442824 $ 1.375527 $ 1.356645 $ 1.373104 $1.360620
========= ========= ========= ========= ========= =============
Wanger International
Real Estate Small Cap Wanger U.S. Small Cap
Sub-Account Sub-Account Sub-Account
VA2, VA3 &
VA1 GSE VA1 VA2, VA3 VA1 VA2, VA3
------------------------ ------------------------ ----------------------------
Assets
Investments at
cost $ 35,937 $ 7,375,627 $ 222,363 $ 9,329,922 $ 509,592 $ 19,333,984
========= ========= ========= ========= ========= =============
Investment in The
Phoenix Edge
Series Fund, at
market $ 39,331 $ 8,195,872 $ -- $ -- $ -- $ --
Investment in
Wanger Advisors
Trust,
at market -- -- 241,412 10,332,164 533,365 19,713,532
--------- --------- --------- --------- --------- -------------
Total assets 39,331 8,195,872 241,412 10,332,164 533,365 19,713,532
Liabilities
Accrued expenses
to related party 29 7,745 172 5,660 410 19,199
--------- --------- --------- --------- --------- -------------
Net assets $ 39,302 $ 8,188,127 $ 241,240 $ 10,326,504 $ 532,955 $ 19,694,333
========= ========= ========= ========= ========= =============
Accumulation units
outstanding 34,014 7,008,808 194,615 7,737,540 460,316 17,039,472
========= ========= ========= ========= ========= =============
Unit value $ 1.155453 $ 1.168262 $ 1.239576 $ 1.334598 $ 1.157802 $ 1.155807
========= ========= ========= ========= ========= =============
</TABLE>
See Notes to Financial Statements
2
<PAGE>
STATEMENT OF OPERATIONS
For the year ended December 31, 1995
<TABLE>
<CAPTION>
Money Market Growth Bond
Sub-Account Sub-Account Sub-Account
VA2, VA3 & VA2, VA3 & VA2, VA3 &
VA1 GSE VA1 GSE VA1 GSE
-------------------------- -------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income
Distributions $ 438,870 $ 3,901,984 $ 675,598 $ 6,834,870 $1,158,485 $ 5,943,384
Expenses
Mortality and
expense risk
charges 79,010 876,855 610,428 7,675,328 140,732 871,219
--------- --------- --------- --------- --------- -----------
Net investment
income (loss) 359,860 3,025,129 65,170 (840,458) 1,017,753 5,072,165
--------- --------- --------- --------- --------- -----------
Net realized gain
from share
transactions -- -- 374,615 86,783 55,037 17,918
Net realized gain
distribution from
Fund -- -- 7,173,896 81,121,474 -- --
Net unrealized
appreciation on
investment -- -- 8,168,033 75,535,624 1,761,715 8,666,711
--------- --------- --------- --------- --------- -----------
Net gain on
investments -- -- 15,716,544 156,743,881 1,816,752 8,684,629
--------- --------- --------- --------- --------- -----------
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
========= ========= ========= ========= ========= ===========
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
VA2, VA3 & VA2, VA3 &
VA1 GSE VA1 GSE VA1 VA2, VA3 & GSE
------------------------ ------------------------ --------------------------
Investment income
Distributions $2,002,654 $ 7,466,447 $ 18,832 $ 367,112 $ 175,104 $ 5,416,894
Expenses
Mortality and
expense risk
charges 621,323 2,777,938 59,638 1,331,844 51,284 1,948,989
--------- --------- --------- --------- --------- -----------
Net investment
income (loss) 1,381,331 4,688,509 (40,806) (964,732) 123,820 3,467,905
--------- --------- --------- --------- --------- -----------
Net realized gain
(loss) from share
transactions 358,277 120,586 (171,167) (771,152) 24,416 198,363
Net realized gain
distribution from
Fund 3,860,000 15,262,627 108,612 2,117,297 109,783 3,430,492
Net unrealized
appreciation on
investment 4,176,429 14,852,737 540,494 7,779,441 767,657 23,829,474
--------- --------- --------- --------- --------- -----------
Net gain on
investments 8,394,706 30,235,950 477,939 9,125,586 901,856 27,458,329
--------- --------- --------- --------- --------- -----------
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
========= ========= ========= ========= ========= ===========
Wanger International Wanger U.S.
Real Estate((1)) Small Cap((1)) Small Cap((1))
Sub-Account Sub-Account Sub-Account
VA2, VA3 &
VA1 GSE VA1 VA2, VA3 VA1 VA2, VA3
------------------------ ------------------------ --------------------------
Investment income
Distributions $ 963 $ 211,854 $ -- $ -- $ -- $ --
Expenses
Mortality and
expense risk
charges 198 55,980 513 37,360 1,865 80,663
--------- --------- --------- --------- --------- -----------
Net investment
income (loss) 765 155,874 (513) (37,360) (1,865) (80,663)
--------- --------- --------- --------- --------- -----------
Net realized gain
(loss) from share
transactions 94 21,522 4 8,695 (747) (3,774)
Net realized gain
distribution from
Fund 198 43,534 -- -- -- --
Net unrealized
appreciation on
investment 3,394 820,245 19,049 1,002,242 23,773 379,548
--------- --------- --------- --------- --------- -----------
Net gain on
investments 3,686 885,301 19,053 1,010,937 23,026 375,774
--------- --------- --------- --------- --------- -----------
Net increase in net
assets resulting
from operations $ 4,451 $ 1,041,175 $ 18,540 $ 973,577 $ 21,161 $ 295,111
========= ========= ========= ========= ========= ===========
</TABLE>
((1)) From inception May 1, 1995 to December 31, 1995
See Notes to Financial Statements
3
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the year ended December 31, 1995
<TABLE>
<CAPTION>
Money Market Growth Bond
Sub-Account Sub-Account Sub-Account
VA2, VA3 & VA2, VA3 & VA2, VA3 &
VA1 GSE VA1 GSE VA1 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
VA2, VA3 & VA2, VA3 &
VA1 GSE VA1 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
4
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
From inception May 1, 1995 to December 31, 1995
(continued)
<TABLE>
<CAPTION>
Wanger International Wanger U.S.
Real Estate Small Cap Small Cap
Sub-Account Sub-Account Sub-Account
VA2, VA3 &
VA1 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
5
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the year ended December 31, 1994
<TABLE>
<CAPTION>
Money Market Growth Bond
Sub-Account Sub-Account Sub-Account
VA2, VA3 & VA2, VA3 & VA2, VA3 &
VA1 GSE VA1 GSE VA1 GSE
-------------------------- -------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C>
From operations
Net investment
income $ 326,657 $ 1,748,288 $ 182,804 $ 653,647 $ 813,324 $ 3,716,810
Net realized gain
(loss) -- 2 2,976,234 26,133,090 (119,176) (103,382)
Net unrealized
depreciation -- -- (2,888,602) (27,412,518) (1,555,961) (7,606,399)
--------- --------- --------- --------- --------- -----------
Net increase
(decrease) in net
assets resulting
from operations 326,657 1,748,290 270,436 (625,781) (861,813) (3,992,971)
--------- --------- --------- --------- --------- -----------
From accumulation
unit transactions
Participant
deposits 672,977 82,740,250 1,650,544 120,706,294 334,527 16,036,535
Participant
transfers 2,074,604 (64,774,356) 529,383 39,687,809 (2,375,359) (11,882,665)
Participant
withdrawals (2,766,967) (3,208,509) (4,245,122) (12,102,289) (849,236) (1,898,032)
--------- --------- --------- --------- --------- -----------
Net increase
(decrease) in net
assets resulting
from participant
transactions (19,386) 14,757,385 (2,065,195) 148,291,814 (2,890,068) 2,255,838
--------- --------- --------- --------- --------- -----------
Net increase
(decrease) in net
assets 307,271 16,505,675 (1,794,759) 147,666,033 (3,751,881) (1,737,133)
Net assets
Beginning of period 8,777,469 56,312,615 55,110,200 329,590,800 17,121,266 57,589,522
--------- --------- --------- --------- --------- -----------
End of period $ 9,084,740 $ 72,818,290 $53,315,441 $477,256,833 $13,369,385 $ 55,852,389
========= ========= ========= ========= ========= ===========
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
VA2, VA3 & VA2, VA3 &
VA1 GSE VA1 GSE VA1 VA2, VA3 & GSE
------------------------ ------------------------ --------------------------
From operations
Net investment
income (loss) $ 1,145,450 $ 3,053,439 $ (52,431) $ (892,131) $ 128,320 $ 3,175,555
Net realized gain 2,318,730 6,532,018 42,991 2,569,529 44,505 1,250,217
Net unrealized
depreciation (5,099,091) (14,366,230) (356,376) (5,430,269) (387,117) (10,613,599)
--------- --------- --------- --------- --------- -----------
Net decrease in net
assets resulting
from operations (1,634,911) (4,780,773) (365,816) (3,752,871) (214,292) (6,187,827)
--------- --------- --------- --------- --------- -----------
From accumulation
unit transactions
Participant
deposits 1,680,952 49,970,179 661,080 37,744,141 221,507 33,865,296
Participant
transfers (3,842,234) 2,101,275 3,232,950 28,438,748 (1,051,098) (19,227,859)
Participant
withdrawals (7,060,752) (7,436,162) (251,907) (2,279,128) (183,646) (6,614,458)
--------- --------- --------- --------- --------- -----------
Net increase
(decrease) in net
assets resulting
from participant
transactions (9,222,034) 44,635,292 3,642,123 63,903,761 (1,013,237) 8,022,979
--------- --------- --------- --------- --------- -----------
Net increase
(decrease) in net
assets (10,856,945) 39,854,519 3,276,307 60,150,890 (1,227,529) 1,835,152
Net assets
Beginning of period 70,969,745 163,156,565 4,235,389 50,648,858 6,547,469 144,247,015
--------- --------- --------- --------- --------- -----------
End of period $ 60,112,800 $203,011,084 $ 7,511,696 $110,799,748 $ 5,319,940 $146,082,167
========= ========= ========= ========= ========= ===========
</TABLE>
See Notes to Financial Statements
6
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a unit outstanding throughout the indicated period)
(Unaudited)
<TABLE>
<CAPTION>
Money Market Sub-Account
VA1 VA2, VA3 & GSE
------------------------ -------------------------
Year Ended December 31, Year Ended December 31,
1995 1994 1995 1994
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
Unit value, beginning of period $1.954211 $1.900873 $1.915930 $1.868172
Income from investment operations
Net investment income 0.090886 0.053338 0.084162 0.047758
-------- -------- -------- ----------
Total from investment operations 0.090886 0.053338 0.084162 0.047758
-------- -------- -------- ----------
Unit value, end of period $2.045097 $1.954211 $2.000092 $1.915930
======== ======== ======== ==========
Total return 4.65% 2.81% 4.39% 2.56%
Net assets, end of period (000) $ 7,070 $ 9,085 $ 74,055 $ 72,818
Growth Sub-Account
VA1 VA2, VA3 & GSE
------------------------ -------------------------
Year Ended December 31, Year Ended December 31,
1995 1994 1995 1994
---------- ---------- ---------- ------------
Unit value, beginning of period $6.384494 $6.355486 $ 6.261062 $ 6.248053
Income from investment operations
Net investment income 0.007800 0.019608 (0.009881) (0.013588)
Net realized and unrealized gain 1.881350 0.009400 1.842751 0.026597
-------- -------- -------- ----------
Total from investment operations 1.889150 0.029008 1.832870 0.013009
-------- -------- -------- ----------
Unit value, end of period $8.273644 $6.384494 $ 8.093932 $ 6.261062
======== ======== ======== ==========
Total return 29.59% 0.46% 29.27% 0.21%
Net assets, end of period (000) $ 67,452 $ 53,315 $ 763,610 $ 477,257
Bond Sub-Account
VA1 VA2, VA3 & GSE
Year Ended December 31, Year Ended December 31,
1995 1994 1995 1994
---------- ---------- ---------- ------------
Unit value, beginning of period $2.762836 $2.952674 $2.710153 $ 2.902941
Income from investment operations
Net investment income 0.221359 0.179157 0.219987 0.179454
Net realized and unrealized gain
(loss) 0.395140 (0.368995) 0.376664 (0.372242)
-------- -------- -------- ----------
Total from investment operations 0.616499 (0.189838) 0.596651 (0.192788)
-------- -------- -------- ----------
Unit value, end of period $3.379335 $ 2.762836 $3.306804 $ 2.710153
======== ======== ======== ==========
Total return 22.31% (6.43)% 22.02% (6.64)%
Net assets, end of period (000) $ 14,929 $ 13,369 $ 84,108 $ 55,852
Total Return Sub-Account
VA1 VA2, VA3 & GSE
------------------------ -------------------------
Year Ended December 31, Year Ended December 31,
1995 1994 1995 1994
---------- ---------- ---------- ------------
Unit value, beginning of period $3.008513 $ 3.081973 $2.948151 $ 3.028790
Income from investment operations
Net investment income 0.072406 0.051467 0.066408 0.051503
Net realized and unrealized gain
(loss) 0.440028 (0.124927) 0.428265 (0.132142)
-------- -------- -------- ----------
Total from investment operations 0.512434 (0.073460) 0.494673 (0.080639)
-------- -------- -------- ----------
Unit value, end of period $3.520947 $ 3.008513 $3.442824 $ 2.948151
======== ======== ======== ==========
Total return 17.03% (2.38)% 16.78% (2.66)%
Net assets, end of period (000) $ 63,512 $ 60,113 $ 251,895 $ 203,011
</TABLE>
See Notes to Financial Statements
7
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a unit outstanding throughout the indicated period)
(Unaudited)
<TABLE>
<CAPTION>
International Sub-Account
VA1 VA2, VA3 & GSE
----------------------- ------------------------
Year Ended December 31, Year Ended December 31,
1995 1994 1995 1994
--------- --------- --------- -----------
<S> <C> <C> <C> <C>
Unit value, beginning of period $ 1.267735 $ 1.279733 $ 1.253391 $ 1.268491
Income from investment operations
Net investment income (loss) (0.010062) (0.001720) (0.012206) (0.003590)
Net realized and unrealized gain (loss) 0.117854 (0.010278) 0.115460 (0.011510)
-------- -------- -------- ---------
Total from investment operations 0.107792 (0.011998) 0.103254 (0.015100)
-------- -------- -------- ---------
Unit value, end of period $ 1.375527 $ 1.267735 $ 1.356645 $ 1.253391
======== ======== ======== =========
Total return 8.50% (0.94)% 8.24% (1.19)%
Net assets, end of period (000) $ 5,175 $ 7,512 $ 107,155 $ 110,800
Balanced Sub-Account
VA1 VA2, VA3 & GSE
----------------------- ------------------------
Year Ended December 31, Year Ended December 31,
1995 1994 1995 1994
--------- --------- --------- -----------
Unit value, beginning of period $1.124370 $ 1.168840 $1.116862 $ 1.163951
Income from investment operations
Net investment income 0.030027 0.026629 0.027334 0.024166
Net realized and unrealized gain (loss) 0.218707 (0.071099) 0.216424 (0.071255)
-------- -------- -------- ---------
Total from investment operations 0.248734 (0.044470) 0.243758 (0.047089)
-------- -------- -------- ---------
Unit value, end of period $1.373104 $ 1.124370 $1.360620 $ 1.116862
======== ======== ======== =========
Total return 22.12% (3.80)% 21.83% (4.05)%
Net assets, end of period (000) $ 5,530 $ 5,320 $ 172,688 $ 146,082
</TABLE>
See Notes to Financial Statements
8
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a unit outstanding throughout the indicated period)
(Unaudited)
<TABLE>
<CAPTION>
Real Estate Sub-Account
VA1 VA2, VA3 & GSE
From
Inception From
5/1/95 to Inception
12/31/95 5/1/95 to 12/31/95
----------------- -------------------
<S> <C> <C>
Unit value, beginning of period $ 1.000000 $ 1.000000
Income from investment operations
Net investment income 0.026718 0.025191
Net realized and unrealized gain 0.128735 0.143071
--------------- -----------------
Total from investment operations 0.155453 0.168262
--------------- -----------------
Unit value, end of period $ 1.155453 $ 1.168262
=============== =================
Total return 15.55%((1)) 16.83%((1))
Net assets, end of period (000) $ 39 $ 8,188
Wanger International
Small Cap Sub-Account
VA1 VA2, VA3
From
Inception From
5/1/95 to Inception
12/31/95 5/1/95 to 12/31/95
--------------- -----------------
Unit value, beginning of period $ 1.000000 $ 1.000000
Income from investment operations
Net investment loss (0.006629) (0.012840)
Net realized and unrealized gain 0.246205 0.347438
--------------- -----------------
Total from investment operations 0.239576 0.334598
--------------- -----------------
Unit value, end of period $ 1.239576 $ 1.334598
=============== =================
Total return 23.96%((1)) 33.46%((1))
Net assets, end of period (000) $ 241 $ 10,327
Wanger U.S. Small Cap Sub-Account
VA1 VA2, VA3
--------------- -----------------
From
Inception From
5/1/95 to Inception
12/31/95 5/1/95 to 12/31/95
--------------- -----------------
Unit value, beginning of period $ 1.000000 $ 1.000000
Income from investment operations
Net investment loss (0.013908) (0.042587)
Net realized and unrealized gain 0.171710 0.198394
--------------- -----------------
Total from investment operations 0.157802 0.155807
--------------- -----------------
Unit value, end of period $ 1.157802 $ 1.155807
=============== =================
Total return 15.78%((1)) 15.58%((1))
Net assets, end of period (000) $ 533 $ 19,694
</TABLE>
((1)) Unannualized
See Notes to Financial Statements
9
<PAGE>
PHOENIX HOME LIFE VARIABLE ACCUMULATION ACCOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
Note 1--Organization
Phoenix Home Life Variable Accumulation Account (the Account) is a separate
investment account of Phoenix Home Life Mutual Insurance Company (Phoenix
Home Life) registered as a unit investment trust. The Account currently has
nine 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, Bond, Total Return,
International, Balanced, Real Estate, Wanger International Small Cap and
Wanger U.S. Small Cap Sub-accounts are subdivided into two pools designated
"VA1" and "VA2, VA3 & GSE". The Wanger International Small Cap and U.S. Small
Cap are not currently available on GSE contracts. VA2 and VA3 contracts
include a higher expense risk charge than the VA1 contract and have been
approved for new sales in certain states. VA3 and GSE contract holders may
also direct the allocation of their investments between the Account and the
Guaranteed Interest Account of the general account of Phoenix Home Life
through participant transfers. The Fund's Money Market, Growth, Bond, Total
Return, International and Balanced Series are successors to the investing
activities of the Phoenix Home Life Variable Accumulation Money Market,
Growth, Bond, Total Return, International and Balanced 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 Bond 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. 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
Certain reclassifications have been made to prior year's amounts to conform
with the 1995 presentation.
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 Home Life
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 year ended December 31,
1995 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 $ 3,751,275 $5,743,524 $ 96,896,824 $95,512,198
Growth 12,973,021 7,461,762 246,304,218 36,290,993
Bond 1,980,743 2,252,588 34,198,051 14,716,662
Total Return 6,630,597 7,868,692 60,179,289 26,649,745
International 759,121 3,480,710 17,383,329 28,275,151
Balanced 905,377 1,496,539 21,775,399 19,495,743
Real Estate 54,354 18,425 7,850,758 477,725
Wanger Advisors Trust:
Wanger International Small
Cap 222,665 306 11,195,708 1,874,481
Wanger U.S. Small Cap. 632,897 122,558 22,748,041 3,410,283
</TABLE>
10
<PAGE>
Note 4--Participant Accumulation Unit Transactions (in units)
<TABLE>
<CAPTION>
Sub-Account
----------------------------------------------------------------------------------------
Money Total
Market Growth Bond Return International Balanced
----------- ----------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
VA1
Units outstanding,
beginning of
period 4,648,802 8,350,770 4,839,008 19,980,901 5,925,289 4,731,485
Participant
deposits 995 216,532 51,135 318,944 115,230 99,289
Participant
transfers (91,931) 439,017 (4,975) (486,673) (1,849,913) (347,489)
Participant
withdrawals (1,100,793) (853,741) (467,392) (1,774,861) (428,745) (456,012)
--------- --------- --------- --------- --------- -----------
Units outstanding,
end of period 3,457,073 8,152,578 4,417,776 18,038,311 3,761,861 4,027,273
========= ========= ========= ========= ========= ===========
VA2, VA3 & GSE
Big Edge Plus:
Units outstanding,
beginning of
period 37,183,988 75,175,305 20,182,918 67,922,249 87,360,368 128,415,186
Participant
deposits 29,791,160 16,816,459 3,734,150 9,762,416 12,023,058 11,542,020
Participant
transfers (25,576,447) 5,786,731 2,062,794 (989,703) (16,005,415) (8,018,448)
Participant
withdrawals (5,156,810) (5,083,910) (1,197,205) (4,860,063) (6,101,001) (7,124,468)
--------- --------- --------- --------- --------- -----------
Units outstanding,
end of period 36,241,891 92,694,585 24,782,657 71,834,899 77,277,010 124,814,290
========= ========= ========= ========= ========= ===========
Group Strategic
Edge:
Units outstanding,
beginning of
period 822,771 1,050,874 425,656 938,228 1,039,619 2,381,785
Participant
deposits 1,968,619 621,657 257,939 428,244 722,442 917,834
Participant
transfers (1,732,216) 169,150 107,985 190,614 107,013 (136,271)
Participant
withdrawals (275,186) (192,772) (139,479) (226,837) (160,765) (1,059,333)
--------- --------- --------- --------- --------- -----------
Units outstanding,
end of period 783,988 1,648,909 652,101 1,330,249 1,708,309 2,104,015
========= ========= ========= ========= ========= ===========
</TABLE>
<TABLE>
<CAPTION>
Wanger
International Wanger U.S.
VA1 Real Estate Small Cap Small Cap
----------- ----------- -------------
<S> <C> <C> <C>
Units outstanding, beginning of period 0 0 0
Participant deposits 385 18,035 31,441
Participant transfers 34,518 176,580 431,910
Participant withdrawals (889) 0 (3,035)
--------- --------- -----------
Units outstanding, end of period 34,014 194,615 460,316
========= ========= ===========
</TABLE>
<TABLE>
<CAPTION>
Wanger
International Wanger U.S.
VA2, VA3 Real Estate Small Cap Small Cap
----------- ----------- -------------
<S> <C> <C> <C>
Units outstanding, beginning of period 0 0 0
Participant deposits 5,743,523 2,896,751 6,682,832
Participant transfers 1,236,930 4,961,433 10,487,082
Participant withdrawals (9,162) (120,644) (130,442)
--------- --------- -----------
Units outstanding, end of period 6,971,291 7,737,540 17,039,472
========= ========= ===========
</TABLE>
Group Strategic Edge: Real Estate
-----------
Units outstanding, beginning of period 0
Participant deposits 18,079
Participant transfers 19,476
Participant withdrawals (38)
---------
Units outstanding, end of period 37,517
=========
Note 5--Investment Advisory Fees and Related Party Transactions
Phoenix Home Life and its indirect, less than wholly owned subsidiary,
Phoenix Equity Planning Corporation, a registered broker/dealer in
securities, provide all services to the Account.
Phoenix Home Life 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 Home Life 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 Home Life 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
year ended December 31, 1995 aggregated $1,488,990 and are funded by and
included in participant withdrawals.
Phoenix Equity Planning Corporation is the principal underwriter and
distributor for the Account. Phoenix Home Life 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 Home Life as reimbursement for services provided.
Contingent deferred sales charges deducted and paid to Phoenix Home Life
aggregated $1,650,197 for the year ended December 31, 1995.
11
<PAGE>
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 Home Life believes that the Account satisfies the
current requirements of the regulations, and it intends that the Account will
continue to meet such requirements.
12
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP [logo]
To the Participants of
Phoenix Home Life Variable
Accumulation Account
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets present fairly,
in all material respects, the financial position of the Money Market
Sub-Account, Growth Sub-Account, Bond Sub-Account, Total Return Sub-Account,
International Sub-Account, Balanced Sub-Account, Real Estate Sub-Account,
Wanger International Small Cap Sub-Account and Wanger U.S. Small Cap
Sub-Account (constituting the Phoenix Home Life Variable Accumulation
Account, hereafter referred to as the "Account") at December 31, 1995, the
results of each of their operations for the period then ended and the changes
in each of their net assets for each of the periods indicated, in conformity
with generally accepted accounting principles. These financial statements are
the responsibility of the Account's management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with
generally accepted auditing standards which 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, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
Hartford, CT 06103
February 13, 1996
13
<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
Custodian
The Chase Manhattan Bank, N.A.
1 Chase Manhattan Plaza
Floor 3B
New York, New York 10081
International Series Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
Real Estate Securities Custodian
State Street Bank and Trust
P.O. Box 351
Boston, Massachusetts 02101
Independent Accountants
Price Waterhouse LLP
One Financial Plaza
Hartford, Connecticut 06103
14
<PAGE>
[indicia]
BULK RATE
U.S. Postage
PAID
Permit No. 444
Springfield, MA
[logo]Phoenix Home Life
Phoenix Home Life Mutual Insurance Company
101 Munson Street
P.O. Box 942
Greenfield, Massachusetts 01302-0942
P725 (2/96)
700.04
Phoenix Home Life
(recycle symbol) Printed on recycled paper using soybean ink
(C) 1996 Phoenix Home Life Mutual Insurance Company
