TABLE OF CONTENTS
PHOENIX HOME LIFE VARIABLE ACCUMULATION ACCOUNT
MONEY MARKET SUBACCOUNT
Statement of Assets and Liabilities...... 2
Statement of Operations.................. 4
Statement of Changes in Net Assets....... 6
GROWTH SUBACCOUNT
Statement of Assets and Liabilities...... 2
Statement of Operations.................. 4
Statement of Changes in Net Assets....... 6
MULTI-SECTOR FIXED INCOME SUBACCOUNT
Statement of Assets and Liabilities...... 2
Statement of Operations.................. 4
Statement of Changes in Net Assets....... 6
STRATEGIC ALLOCATION SUBACCOUNT
Statement of Assets and Liabilities...... 2
Statement of Operations.................. 4
Statement of Changes in Net Assets....... 6
INTERNATIONAL SUBACCOUNT
Statement of Assets and Liabilities...... 2
Statement of Operations.................. 4
Statement of Changes in Net Assets....... 6
BALANCED SUBACCOUNT
Statement of Assets and Liabilities...... 2
Statement of Operations.................. 4
Statement of Changes in Net Assets....... 6
REAL ESTATE SUBACCOUNT
Statement of Assets and Liabilities...... 2
Statement of Operations.................. 4
Statement of Changes in Net Assets....... 6
STRATEGIC THEME SUBACCOUNT
Statement of Assets and Liabilities...... 2
Statement of Operations.................. 4
Statement of Changes in Net Assets....... 6
ABERDEEN NEW ASIA SUBACCOUNT
Statement of Assets and Liabilities...... 2
Statement of Operations.................. 4
Statement of Changes in Net Assets....... 6
ENHANCED INDEX SUBACCOUNT
Statement of Assets and Liabilities...... 2
Statement of Operations.................. 4
Statement of Changes in Net Assets....... 7
ENGEMANN NIFTY FIFTY SUBACCOUNT
Statement of Assets and Liabilities...... 2
Statement of Operations.................. 4
Statement of Changes in Net Assets....... 7
SENECA MID-CAP GROWTH SUBACCOUNT
Statement of Assets and Liabilities..... 2
Statement of Operations................. 4
Statement of Changes in Net Assets...... 7
GROWTH AND INCOME SUBACCOUNT
Statement of Assets and Liabilities..... 3
Statement of Operations................. 5
Statement of Changes in Net Assets...... 7
VALUE EQUITY SUBACCOUNT
Statement of Assets and Liabilities..... 3
Statement of Operations................. 5
Statement of Changes in Net Assets...... 7
SCHAFER MID-CAP SUBACCOUNT
Statement of Assets and Liabilities..... 3
Statement of Operations................. 5
Statement of Changes in Net Assets...... 7
WANGER U.S. SMALL CAP SUBACCOUNT
Statement of Assets and Liabilities..... 3
Statement of Operations................. 5
Statement of Changes in Net Assets...... 7
WANGER INTERNATIONAL SMALL CAP SUBACCOUNT
Statement of Assets and Liabilities..... 3
Statement of Operations................. 5
Statement of Changes in Net Assets...... 7
TEMPLETON STOCK SUBACCOUNT
Statement of Assets and Liabilities..... 3
Statement of Operations................. 5
Statement of Changes in Net Assets...... 7
TEMPLETON ASSET ALLOCATION SUBACCOUNT
Statement of Assets and Liabilities..... 3
Statement of Operations................. 5
Statement of Changes in Net Assets...... 8
TEMPLE INTERNATIONAL SUBACCOUNT
Statement of Assets and Liabilities..... 3
Statement of Operations................. 5
Statement of Changes in Net Assets...... 8
TEMPLETON DEVELOPING MARKETS SUBACCOUNT
Statement of Assets and Liabilities..... 3
Statement of Operations................. 5
Statement of Changes in Net Assets...... 8
MUTUAL SHARES INVESTMENTS SUBACCOUNT
Statement of Assets and Liabilities..... 3
Statement of Operations................. 5
Statement of Changes in Net Assets...... 8
NOTES TO FINANCIAL STATEMENTS.............. 9
<PAGE>
This annual report for the PHOENIX HOME
LIFE VARIABLE UNIVERSAL LIFE ACCOUNT for the
period ended December 31, 1998 contains the
financial statements for the Account's single
premium variable universal life policies.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MULTI-SECTOR
MONEY MARKET GROWTH FIXED INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost................................................ $ 1,646,955 $ 9,996,753 $ 1,511,524
============ ============ ============
Investment in The Phoenix Edge Series Fund, at market.............. $ 1,646,955 $ 10,618,540 $ 1,471,507
------------ ------------ ------------
Total assets.................................................... 1,646,955 10,618,540 1,471,507
LIABILITIES
Accrued expenses to related party.................................. 1,564 5,448 1,075
------------ ------------ ------------
NET ASSETS............................................................ $ 1,645,391 $ 10,613,092 $ 1,470,432
============ ============ ============
Accumulation units outstanding........................................ 1,607,822 9,415,908 1,577,941
============ ============ ============
Unit value............................................................ $ 1.023366 $ 1.127145 $ 0.931865
============ ============ ============
STRATEGIC
ALLOCATION INTERNATIONAL BALANCED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------
ASSETS
Investments at cost................................................ $ 1,645,111 $ 1,721,899 $ 1,235,499
============ ============ ============
Investment in The Phoenix Edge Series Fund, at market.............. $ 1,680,576 $ 1,527,717 $ 1,310,067
------------ ------------ ------------
Total assets.................................................... 1,680,576 1,527,717 1,310,067
LIABILITIES
Accrued expenses to related party.................................. 981 761 942
------------ ------------ ------------
NET ASSETS............................................................ $ 1,679,595 $ 1,526,956 $ 1,309,125
============ ============ ============
Accumulation units outstanding........................................ 1,494,785 1,504,222 1,184,769
============ ============ ============
Unit value............................................................ $ 1.123635 $ 1.015117 $ 1.104962
============ ============ ============
ABERDEEN
REAL ESTATE STRATEGIC THEME NEW ASIA
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------
ASSETS
Investments at cost................................................ $ 110,028 $ 168,112 $ 19,524
=========== =========== ===========
Investment in The Phoenix Edge Series Fund, at market.............. $ 105,791 $ 200,488 $ 22,408
----------- ----------- -----------
Total assets.................................................... 105,791 200,488 22,408
LIABILITIES
Accrued expenses to related party.................................. 41 188 24
----------- ----------- -----------
NET ASSETS............................................................ $ 105,750 $ 200,300 $ 22,384
=========== =========== ===========
Accumulation units outstanding........................................ 124,594 148,220 19,252
=========== =========== ===========
Unit value............................................................ $ .848760 $ 1.351368 $ 1.162712
=========== =========== ===========
SENECA
ENHANCED ENGEMANN MID-CAP
INDEX NIFTY FIFTY GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------
ASSETS
Investments at cost................................................ $ 951,260 $ 237,390 $ 195,124
=========== =========== ===========
Investment in the Phoenix Edge Series Fund, at market.............. $ 1,020,919 $ 292,932 $ 234,934
----------- ----------- -----------
Total assets.................................................... 1,020,919 292,932 234,934
LIABILITIES
Accrued expenses to related party.................................. 1,274 309 234
----------- ----------- -----------
NET ASSETS............................................................ $ 1,019,645 $ 292,623 $ 234,700
=========== =========== ===========
Accumulation units outstanding........................................ 919,987 245,270 203,326
=========== =========== ===========
Unit value............................................................ $ 1.108325 $ 1.193056 $ 1.154307
=========== =========== ===========
</TABLE>
See Notes to Financial Statements
2
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
(CONTINUED)
<TABLE>
<CAPTION>
GROWTH SCHAFER
AND INCOME VALUE EQUITY MID-CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost................................................ $ 846,955 $ 137,093 $ 138,173
=========== =========== ===========
Investment in The Phoenix Edge Series Fund, at market.............. $ 926,641 $ 148,003 $ 143,809
----------- ----------- -----------
Total assets.................................................... 926,641 148,003 143,809
LIABILITIES
Accrued expenses to related party.................................. 859 156 148
----------- ----------- -----------
NET ASSETS............................................................ $ 925,782 $ 147,847 $ 143,661
=========== =========== ===========
Accumulation units outstanding........................................ 824,998 135,795 162,341
=========== =========== ===========
Unit value............................................................ $ 1.122163 $ 1.088751 $ 0.884934
=========== =========== ===========
WANGER WANGER
U.S. INTERNATIONAL TEMPLETON
SMALL CAP SMALL CAP STOCK
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ----------
ASSETS
Investments at cost................................................ $ 1,614,567 $ 380,793 $ 63,238
============ ========== ==========
Investment in Wanger Advisors Trust, at market..................... $ 1,699,348 $ 406,117 $ --
Investment in Templeton Variable Products Series Fund, at market... -- -- 67,084
----------- ---------- -----------
Total assets.................................................... 1,699,348 406,117 67,084
LIABILITIES
Accrued expenses to related party.................................. 1,348 325 76
----------- ---------- -----------
NET ASSETS............................................................ $ 1,698,000 $ 405,792 $ 67,008
============ ========== ==========
Accumulation units outstanding........................................ 1,824,621 381,007 74,558
============ ========== ==========
Unit value............................................................ $ 0.931043 $ 1.064969 $ 0.898644
============ ========== ==========
TEMPLETON
ASSET TEMPLETON
ALLOCATION INTERNATIONAL
SUBACCOUNT SUBACCOUNT
---------- ----------
ASSETS
Investments at cost $ 46,250 $ 161,830
=========== ===========
Investment in Templeton Variable Products Series Fund, at market... $ 48,391 $ 169,841
----------- -----------
Total assets.................................................... 48,391 169,841
LIABILITIES
Accrued expenses to related party.................................. 56 170
----------- -----------
NET ASSETS............................................................ $ 48,335 $ 169,671
=========== ===========
Accumulation units outstanding........................................ 48,239 181,415
=========== ===========
Unit value............................................................ $ 1.002002 $ .935264
=========== ===========
TEMPLETON
DEVELOPING MUTUAL SHARES
MARKETS INVESTMENTS
SUBACCOUNT SUBACCOUNT
---------- ----------
ASSETS
Investments at cost $ 22,456 $ 25,000
=========== ===========
Investment in Templeton Variable Products Series Fund, at market... $ 25,467 $ 25,850
----------- -----------
Total assets.................................................... 25,467 25,850
LIABILITIES
Accrued expenses to related party.................................. 26 16
----------- -----------
NET ASSETS............................................................ $ 25,441 $ 25,834
=========== ===========
Accumulation units outstanding........................................ 21,521 25,000
=========== ===========
Unit value............................................................ $ 1.182161 $ 1.033360
=========== ===========
</TABLE>
See Notes to Financial Statements
3
<PAGE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MULTI-SECTOR
MONEY MARKET GROWTH FIXED INCOME
SUBACCOUNT(2) SUBACCOUNT(2) SUBACCOUNT(3)
------------- ------------- -------------
<S> <C> <C> <C>
Investment income
Distributions.................................................... $ 20,105 $ 90 $ 35,725
Expenses
Mortality and expense risk charges............................... 5,465 12,252 2,781
---------- ---------- ----------
Net investment income (loss)........................................ 14,640 (12,162) 32,944
---------- ---------- ----------
Net realized gain (loss) from share transactions.................... -- (28) 8
Net realized gain distribution from Fund............................ -- 103,882 272
Net unrealized appreciation (depreciation) on investment............ -- 621,787 (40,017)
---------- ---------- ----------
Net gain (loss) on investments...................................... -- 725,641 (39,737)
---------- ---------- ----------
Net increase (decrease) in net assets resulting from operations..... $ 14,640 $ 713,479 $ (6,793)
========== ========== ==========
STRATEGIC
ALLOCATION INTERNATIONAL BALANCED
SUBACCOUNT(5) SUBACCOUNT(9) SUBACCOUNT(6)
------------- ------------- -------------
Investment income
Distributions.................................................... $ 8,283 $ -- $ 8,516
Expenses
Mortality and expense risk charges............................... 2,084 1,699 2,390
---------- ---------- ----------
Net investment income (loss)........................................ 6,199 (1,699) 6,126
---------- ---------- ----------
Net realized gain (loss) from share transactions.................... 17 (66) (25)
Net realized gain distribution from Fund............................ 53,805 241,742 1,090
Net unrealized appreciation (depreciation) on investment............ 35,465 (194,182) 74,568
---------- ---------- ----------
Net gain (loss) on investments...................................... 89,287 47,494 75,633
---------- ---------- ----------
Net increase (decrease) in net assets resulting from operations..... $ 95,486 $ 45,795 $ 81,759
========== ========== ==========
ABERDEEN
REAL ESTATE STRATEGIC THEME NEW ASIA
SUBACCOUNT(7) SUBACCOUNT(8) SUBACCOUNT(8)
------------- ------------- -------------
Investment income
Distributions.................................................... $ 2,891 $ $ 93
--
Expenses
Mortality and expense risk charges............................... 216 633 98
---------- ---------- ----------
Net investment income (loss)........................................ 2,675 (633) (5)
---------- ---------- ----------
Net realized gain (loss) from share transactions.................... (375) (5,033) 42
Net realized gain distribution from Fund............................ 4 10,713 --
Net unrealized appreciation (depreciation) on investment............ (4,237) 32,376 2,884
---------- ---------- ----------
Net gain (loss) on investments...................................... (4,608) 38,056 2,926
---------- ---------- ----------
Net increase (decrease) in net assets resulting from operations..... $ (1,933) $ 37,423 $ 2,921
=========== ========== =========
SENECA
ENHANCED ENGEMANN MID-CAP
INDEX NIFTY FIFTY GROWTH
SUBACCOUNT(1) SUBACCOUNT(4) SUBACCOUNT(4)
------------- ------------- -------------
Investment income
Distributions.................................................... $ 5,699 $ 116 $ 193
Expenses
Mortality and expense risk charges............................... 3,304 1,004 812
---------- ---------- ----------
Net investment income (loss)........................................ 2,395 (888) (619)
---------- ---------- ----------
Net realized gain (loss) from share transactions.................... (996) 30 (19)
Net realized gain (loss) distribution from Fund..................... 40,541 -- --
Net unrealized appreciation (depreciation) on investment............ 69,659 55,542 39,810
---------- ---------- ----------
Net gain (loss) on investments...................................... 109,204 55,572 39,791
---------- ---------- ----------
Net increase (decrease) in net assets resulting from operations..... $ 111,599 $ 54,684 $ 39,172
========== ========== ==========
(1) From inception May 13, 1998 to December 31, 1998 (6) From inception June 3, 1998 to December 31, 1998
(2) From inception May 14, 1998 to December 31, 1998 (7) From inception June 9, 1998 to December 31, 1998
(3) From inception May 15, 1998 to December 31, 1998 (8) From inception June 16, 1998 to December 31, 1998
(4) From inception May 28, 1998 to December 31, 1998 (9) From inception June 17, 1998 to December 31, 1998
(5) From inception June 2, 1998 to December 31, 1998
</TABLE>
See Notes to Financial Statements
4
<PAGE>
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED DECEMBER 31, 1998
(CONTINUED)
<TABLE>
<CAPTION>
GROWTH SCHAFER
AND INCOME VALUE EQUITY MID-CAP
SUBACCOUNT(4) SUBACCOUNT(8) SUBACCOUNT(4)
------------- ------------- -------------
<S> <C> <C> <C>
Investment income
Distributions.................................................... $ 3,095 $ 548 $ 422
Expenses
Mortality and expense risk charges............................... 2,963 484 610
---------- ---------- ----------
Net investment income (loss)........................................ 132 64 (188)
---------- ---------- ----------
Net realized gain (loss) from share transactions.................... 70 212 (4)
Net realized gain distribution from Fund............................ -- -- --
Net unrealized appreciation (depreciation) on investment............ 79,686 10,910 5,636
---------- ---------- ----------
Net gain (loss) on investments...................................... 79,756 11,122 5,632
---------- ---------- ----------
Net increase (decrease) in net assets resulting from operations..... $ 79,888 $ 11,186 $ 5,444
=========== =========== ==========
WANGER WANGER
U.S. INTERNATIONAL TEMPLETON
SMALL CAP SMALL CAP STOCK
SUBACCOUNT(3) SUBACCOUNT(9) SUBACCOUNT(5)
------------- ------------- -------------
Investment income
Distributions.................................................... $ -- $ -- $ --
Expenses
Mortality and expense risk charges............................... 4,490 975 (290)
---------- ---------- ----------
Net investment income (loss)........................................ (4,490) (975) (290)
---------- ---------- ----------
Net realized gain (loss) from share transactions.................... (196) 245 1
Net realized gain distribution from Fund............................ -- -- --
Net unrealized appreciation (depreciation) on investment............ 84,781 25,324 3,846
---------- ---------- ----------
Net gain (loss) on investments...................................... 84,585 25,569 3,847
---------- ---------- ----------
Net increase (decrease) in net assets resulting from operations..... $ 80,095 $ 24,594 $ 3,557
=========== ========== ==========
TEMPLETON
ASSET TEMPLETON
ALLOCATION INTERNATIONAL
SUBACCOUNT(8) SUBACCOUNT(4)
------------- -------------
Investment income
Distributions.................................................... $ -- $ --
Expenses
Mortality and expense risk charges............................... 243 606
---------- ----------
Net investment income (loss)........................................ (243) (606)
---------- ----------
Net realized gain (loss) from share transactions.................... (12) (204)
Net realized gain distribution from Fund............................ -- --
Net unrealized appreciation (depreciation) on investment............ 2,141 8,011
---------- ----------
Net gain (loss) on investments...................................... 2,129 7,807
---------- ----------
Net increase (decrease) in net assets resulting from operations..... $ 1,886 $ 7,201
========== ==========
TEMPLETON
DEVELOPING MUTUAL SHARES
MARKETS INVESTMENTS
SUBACCOUNT(10) SUBACCOUNT(11)
-------------- --------------
Investment income
Distributions.................................................... $ -- $ --
Expenses
Mortality and expense risk charges............................... 84 16
---------- ----------
Net investment income (loss)........................................ (84) (16)
---------- ----------
Net realized gain (loss) from share transactions.................... (24) --
Net realized gain distribution from Fund............................ -- --
Net unrealized appreciation (depreciation) on investment............ 3,011 850
---------- ----------
Net gain (loss) on investments...................................... 2,987 850
---------- ----------
Net increase (decrease) in net assets resulting from operations..... $ 2,903 $ 834
========== ==========
(3) From inception May 15, 1998 to December 31, 1998 (9) From inception June 17, 1998 to December 31, 1998
(4) From inception May 28, 1998 to December 31, 1998 (10) From inception August 18, 1998 to December 31, 1998
(5) From inception June 2, 1998 to December 31, 1998 (11) From inception December 11, 1998 to December 31, 1998
(8) From inception June 16, 1998 to December 31, 1998
</TABLE>
See Notes to Financial Statements
5
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
MULTI-SECTOR
MONEY MARKET GROWTH FIXED INCOME
SUBACCOUNT(2) SUBACCOUNT(2) SUBACCOUNT(3)
------------- ------------- -------------
<S> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss)..................................... $ 14,640 $ (12,162) $ 32,944
Net realized gain (loss)......................................... -- 103,854 280
Net unrealized appreciation (depreciation)....................... -- 621,787 (40,017)
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations.. 14,640 713,479 (6,793)
----------- ----------- -----------
FROM ACCUMULATION UNIT TRANSACTIONS
Participant deposits............................................. 2,543,980 9,768,376 1,343,432
Participant transfers............................................ (865,293) 190,527 134,447
Participant withdrawals.......................................... (47,936) (59,290) (654)
----------- ----------- -----------
Net increase (decrease) in net assets resulting from participant
transactions.................................................. 1,630,751 9,899,613 1,477,225
----------- ----------- -----------
Net increase (decrease) in net assets............................ 1,645,391 10,613,092 1,470,432
NET ASSETS
Beginning of period.............................................. 0 0 0
----------- ----------- -----------
End of period.................................................... $ 1,645,391 $10,613,092 $ 1,470,432
=========== =========== ===========
STRATEGIC
ALLOCATION INTERNATIONAL BALANCED
SUBACCOUNT(5) SUBACCOUNT(9) SUBACCOUNT(6)
------------- ------------- -------------
FROM OPERATIONS
Net investment income (loss)..................................... $ 6,199 $ (1,699) $ 6,126
Net realized gain (loss)......................................... 53,822 241,676 1,065
Net unrealized appreciation (depreciation)....................... 35,465 (194,182) 74,568
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations.. 95,486 45,795 81,759
----------- ----------- -----------
FROM ACCUMULATION UNIT TRANSACTIONS
Participant deposits............................................. 1,500,673 1,468,191 1,184,410
Participant transfers............................................ 84,868 19,076 60,238
Participant withdrawals.......................................... (1,432) (6,106) (17,282)
----------- ----------- -----------
Net increase (decrease) in net assets resulting from participant
transactions.................................................. 1,584,109 1,481,161 1,227,366
----------- ----------- -----------
Net increase (decrease) in net assets............................ 1,679,595 1,526,956 1,309,125
NET ASSETS
Beginning of period.............................................. 0 0 0
----------- ----------- -----------
End of period.................................................... $ 1,679,595 $ 1,526,956 $ 1,309,125
=========== =========== ===========
ABERDEEN
REAL ESTATE STRATEGIC THEME NEW ASIA
SUBACCOUNT(7) SUBACCOUNT(8) SUBACCOUNT(8)
------------- ------------- -------------
FROM OPERATIONS
Net investment income (loss)..................................... $ 2,675 $ (633) $ (5)
Net realized gain (loss)......................................... (371) 5,680 42
Net unrealized appreciation (depreciation)....................... (4,237) 32,376 2,884
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations.. (1,933) 37,423 2,921
----------- ----------- -----------
FROM ACCUMULATION UNIT TRANSACTIONS
Participant deposits............................................. 103,404 182,463 20,743
Participant transfers............................................ 4,323 (19,017) 250
Participant withdrawals.......................................... (44) (569) (1,530)
Net increase (decrease) in net assets resulting from participant ----------- ----------- -----------
transactions.................................................. 107,683 162,877 19,463
----------- ----------- -----------
Net increase (decrease) in net assets............................ 105,750 200,300 22,384
NET ASSETS
Beginning of period.............................................. 0 0 0
----------- ----------- -----------
End of period.................................................... $ 105,750 $ 200,300 $ 22,384
=========== =========== ===========
(2) From inception May 14, 1998 to December 31, 1998 (7) From inception June 9, 1998 to December 31, 1998
(3) From inception May 15, 1998 to December 31, 1998 (8) From inception June 16, 1998 to December 31, 1998
(5) From inception June 2, 1998 to December 31, 1998 (9) From inception June 17, 1998 to December 31, 1998
(6) From inception June 3, 1998 to December 31, 1998
</TABLE>
See Notes to Financial Statements
6
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED DECEMBER 31, 1998
(CONTINUED)
<TABLE>
<CAPTION>
SENECA
ENHANCED ENGEMANN MID-CAP
INDEX NIFTY FIFTY GROWTH
SUBACCOUNT(1) SUBACCOUNT(4) SUBACCOUNT(4)
------------- ------------- -------------
<S> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss)..................................... $ 2,395 $ (888) $ (619)
Net realized gain (loss)......................................... 39,545 30 (19)
Net unrealized appreciation (depreciation)....................... 69,659 55,542 39,810
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations.. 111,599 54,684 39,172
----------- ----------- -----------
FROM ACCUMULATION UNIT TRANSACTIONS
Participant deposits............................................. 862,473 237,816 188,189
Participant transfers............................................ 74,779 6,755 12,830
Participant withdrawals.......................................... (29,206) (6,632) (5,491)
----------- ----------- -----------
Net increase (decrease) in net assets resulting from participant
transactions.................................................. 908,046 237,939 195,528
----------- ----------- -----------
Net increase (decrease) in net assets............................ 1,019,645 292,623 234,700
NET ASSETS
Beginning of period.............................................. 0 0 0
----------- ----------- -----------
End of period.................................................... $ 1,019,645 $ 292,623 $ 234,700
=========== =========== ===========
GROWTH SCHAFER
AND INCOME VALUE EQUITY MID-CAP
SUBACCOUNT(4) SUBACCOUNT(8) SUBACCOUNT(4)
------------- ------------- -------------
FROM OPERATIONS
Net investment income (loss)..................................... $ 132 $ 64 $ (188)
Net realized gain (loss)......................................... 70 212 (4)
Net unrealized appreciation (depreciation)....................... 79,686 10,910 5,636
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations.. 79,888 11,186 5,444
----------- ----------- -----------
FROM ACCUMULATION UNIT TRANSACTIONS
Participant deposits............................................. 745,117 133,027 122,222
Participant transfers............................................ 120,825 10,661 17,285
Participant withdrawals.......................................... (20,048) (7,027) (1,290)
----------- ----------- -----------
Net increase (decrease) in net assets resulting from participant
transactions.................................................. 845,894 136,661 138,217
----------- ----------- -----------
Net increase (decrease) in net assets............................ 925,782 147,847 143,661
NET ASSETS
Beginning of period.............................................. 0 0 0
----------- ----------- -----------
End of period.................................................... $ 925,782 $ 147,847 $ 143,661
=========== =========== ===========
WANGER WANGER
U.S. INTERNATIONAL TEMPLETON
SMALL CAP SMALL CAP STOCK
SUBACCOUNT(3) SUBACCOUNT(9) SUBACCOUNT(5)
------------- ------------- -------------
FROM OPERATIONS
Net investment income (loss)..................................... $ (4,490) $ (975) $ (290)
Net realized gain (loss)......................................... (196) 245 1
Net unrealized appreciation (depreciation)....................... 84,781 25,324 3,846
----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations.. 80,095 24,594 3,557
----------- ----------- -----------
FROM ACCUMULATION UNIT TRANSACTIONS
Participant deposits............................................. 1,570,924 363,290 56,849
Participant transfers............................................ 60,617 26,170 12,674
Participant withdrawals.......................................... (13,636) (8,262) (6,072)
Net increase (decrease) in net assets resulting from participant ----------- ----------- -----------
transactions.................................................. 1,617,905 381,198 63,451
----------- ----------- -----------
Net increase in (decrease) net assets............................ 1,698,000 405,792 67,008
NET ASSETS
Beginning of period.............................................. 0 0 0
----------- ----------- -----------
End of period.................................................... $ 1,698,000 $ 405,792 $ 67,008
=========== =========== ===========
(1) From inception May 13, 1998 to December 31, 1998 (5) From inception June 2, 1998 to December 31, 1998
(3) From inception May 15, 1998 to December 31, 1998 (8) From inception June 16, 1998 to December 31, 1998
(4) From inception May 28, 1998 to December 31, 1998 (9) From inception June 17, 1998 to December 31, 1998
</TABLE>
See Notes to Financial Statements
7
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED DECEMBER 31, 1998
(CONTINUED)
<TABLE>
<CAPTION>
TEMPLETON
ASSET TEMPLETON
ALLOCATION INTERNATIONAL
SUBACCOUNT(8) SUBACCOUNT(4)
------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss)..................................... $ (243) $ (606)
Net realized gain (loss)......................................... (12) (204)
Net unrealized appreciation (depreciation)....................... 2,141 8,011
----------- -----------
Net increase (decrease) in net assets resulting from operations.. 1,886 7,201
----------- -----------
FROM ACCUMULATION UNIT TRANSACTIONS
Participant deposits............................................. 39,635 151,455
Participant transfers............................................ 7,203 14,400
Participant withdrawals.......................................... (389) (3,385)
----------- -----------
Net increase (decrease) in net assets resulting from participant
transactions.................................................. 46,449 162,470
----------- -----------
Net increase in (decrease) net assets............................ 48,335 169,671
NET ASSETS
Beginning of period.............................................. 0 0
----------- -----------
End of period.................................................... $ 48,335 $ 169,671
=========== ===========
TEMPLETON
DEVELOPING MUTUAL SHARES
MARKETS INVESTMENTS
SUBACCOUNT(10) SUBACCOUNT(11)
-------------- --------------
FROM OPERATIONS
Net investment income (loss)..................................... $ (84) $ (16)
Net realized gain (loss)......................................... (24) --
Net unrealized appreciation (depreciation)....................... 3,011 850
----------- -----------
Net increase (decrease) in net assets resulting from operations.. 2,903 834
----------- -----------
FROM ACCUMULATION UNIT TRANSACTIONS
Participant deposits............................................. 24,013 25,000
Participant transfers............................................ 1,201 --
Participant withdrawals.......................................... (2,676) --
----------- -----------
Net increase (decrease) in net assets resulting from participant
transactions.................................................. 22,538 25,000
----------- -----------
Net increase in (decrease) net assets............................ 25,441 25,834
NET ASSETS
Beginning of period.............................................. 0 0
----------- -----------
End of period.................................................... $ 25,441 $ 25,834
=========== ===========
(4) From inception May 28, 1998 to December 31, 1998 (10) From inception August 18, 1998 to December 31, 1998
(8) From inception June 16, 1998 to December 31, 1998 (11) From inception December 11, 1998 to December 31, 1998
</TABLE>
See Notes to Financial Statements
8
<PAGE>
PHOENIX HOME LIFE VARIABLE ACCUMULATION ACCOUNT
NOTES TO FINANCIAL STATEMENTS
NOTE 1--ORGANIZATION
Phoenix Home Life Variable Accumulation Account (the "Account") is a separate
investment account of Phoenix Home Life Mutual Insurance Company ("Phoenix").
The Account is registered as a unit investment trust under the Investment
Company Act of 1940, as amended. The Account was established June 21, 1982 and
currently consists of 22 Subaccounts, that invest in a corresponding series (the
"Series"), of The Phoenix Edge Series Fund, Wanger Advisors Trust and the
Templeton Variable Products Series Fund (the "Funds").
Each Series has distinct investment objectives. The Money Market Series seeks
to provide maximum current income consistent with capital preservation and
liquidity. The Growth Series seeks to achieve intermediate and long-term growth
of capital, with income as a secondary consideration. The Multi-Sector Fixed
Income Series seeks to provide long-term total return by investing in a
diversified portfolio of high yield and high quality fixed income securities.
The Strategic Allocation Series seeks to realize as high a level of total rate
of return over an extended period of time as is considered consistent with
prudent investment risk by investing in three market segments: stocks, bonds and
money market instruments. The International Series seeks as its investment
objective a high total return consistent with reasonable risk by investing
primarily in an internationally diversified portfolio of equity securities. The
Balanced Series seeks to provide reasonable income, long-term growth and
conservation of capital. The Real Estate Series seeks to achieve capital
appreciation and income with approximately equal emphasis through investments in
real estate investment trusts and companies that operate, manage, develop or
invest in real estate. The Strategic Theme Series seeks long-term appreciation
of capital by investing in securities that the adviser believes are well
positioned to benefit from cultural, demographic, regulatory, social or
technological changes worldwide. The Aberdeen New Asia Series seeks to provide
long-term capital appreciation by investing primarily in diversified equity
securities of issuers organized and principally operating in Asia, excluding
Japan. The Enhanced Index Series seeks high total return by investing in a
broadly diversified portfolio of equity securities of large and medium
capitalization companies within market sectors reflected in the Standard &
Poor's 500 Composite Stock Price Index. The Engemann Nifty Fifty Series seeks to
achieve long-term capital appreciation investing in approximately 50 different
securities which offer the potential for long-term growth of capital. The Seneca
Mid-Cap Growth Series seeks capital appreciation primarily through investments
in equity securities of companies that have the potential for above average
market appreciation. The Growth and Income Series seeks as its investment
objective, dividend growth, current income and capital appreciation by investing
in common stocks. The Value Equity Series seeks to achieve long-term capital
appreciation and income by investing in a diversified portfolio of common stocks
which meet certain quantitative standards that indicate above average financial
soundness and intrinsic value relative to price. The Schafer Mid-Cap Series
seeks to achieve long-term capital appreciation with current income as the
secondary investment objective by investing in common stocks of established
companies having a strong financial position and a low stock market valuation at
the time of purchase which are believed to offer the possibility of increase in
value. The Wanger U.S. Small Cap Series invests in growth common stock of U.S.
companies with stock market capitalization of less than $1 billion. The Wanger
International Small Cap Series invests in securities of non-U.S. companies with
a stock market capitalization of less than $1 billion. The Templeton Stock
Series is a capital growth common stock fund. The Templeton Asset Allocation
Series invests in stocks and debt obligations of companies and governments and
money market instruments seeking high total return. The Templeton International
Series invests in stocks and debt obligations of companies and governments
outside the United States. The Templeton Developing Markets Series seeks
long-term capital appreciation by investing in equity securities of issuers in
countries having developing markets. The Mutual Shares Investments Series is a
capital appreciation fund with income as a secondary objective. Additionally,
policyowners also may direct the allocation of their investments between the
Account and the Guaranteed Interest Account of the general account of Phoenix.
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 arising from the Account is not taxed
since reserves are established equivalent to such income. Therefore, no
provision for related federal taxes is required.
D. DISTRIBUTIONS: Distributions are recorded on the ex-dividend date.
9
<PAGE>
PHOENIX HOME LIFE VARIABLE ACCUMULATION ACCOUNT
NOTES TO FINANCIAL STATEMENTS
NOTE 3--PURCHASES AND SALES OF SHARES OF THE FUNDS
Purchases and sales of shares of the Funds for the period ended December 31,
1998 aggregated the following:
<TABLE>
<CAPTION>
SUBACCOUNT PURCHASES SALES
- ---------- --------- -----
<S> <C> <C>
The Phoenix Edge Series Fund:
Money Market................................................................... $ 2,479,887 $832,932
Growth......................................................................... 10,017,536 20,755
Multi-Sector Fixed Income...................................................... 1,518,727 7,211
Strategic Allocation........................................................... 1,646,510 1,416
International.................................................................. 1,726,627 4,662
Balanced....................................................................... 1,250,690 15,166
Real Estate.................................................................... 117,903 7,500
Strategic Theme................................................................ 205,920 32,775
Aberdeen New Asia.............................................................. 21,239 1,757
Enhanced Index................................................................. 990,252 37,996
Engemann Nifty Fifty........................................................... 245,801 8,441
Seneca Mid-Cap Growth.......................................................... 200,902 5,759
Growth and Income.............................................................. 867,487 20,602
Value Equity .................................................................. 147,276 10,395
Schafer Mid-Cap................................................................ 138,624 447
Wanger Advisors Trust:
U.S. Small Cap................................................................. 1,653,845 39,082
International Small Cap........................................................ 403,372 22,824
The Templeton Variable Products Series Fund:
Stock ......................................................................... 69,471 6,234
Asset Allocation............................................................... 46,838 576
International ................................................................. 176,260 14,226
Developing Markets ............................................................ 25,203 2,723
Mutual Shares Investments ..................................................... 25,000 --
</TABLE>
NOTE 4--PARTICIPANT ACCUMULATION UNIT TRANSACTIONS (IN UNITS)
<TABLE>
<CAPTION>
SUBACCOUNT
--------------------------------------------------------------------------------------
MONEY MULTI-SECTOR STRATEGIC
MARKET GROWTH FIXED INCOME ALLOCATION INTERNATIONAL BALANCED
------ ------ ------------ ---------- ------------- --------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding, beginning of period 0 0 0 0 0 0
Participant deposits................. 2,504,771 9,247,699 1,419,852 1,414,097 1,490,191 1,145,069
Participant transfers................ (849,619) 184,474 162,939 82,089 19,663 55,730
Participant withdrawals.............. (47,330) (16,265) (4,850) (1,401) (5,632) (16,030)
--------- --------- --------- --------- --------- ---------
Units outstanding, end of period..... 1,607,822 9,415,908 1,577,941 1,494,785 1,504,222 1,184,769
========= ========= ========= ========= ========= =========
SENECA
REAL STRATEGIC ABERDEEN ENHANCED ENGEMANN MID-CAP
ESTATE THEME NEW ASIA INDEX NIFTY FIFTY GROWTH
------ ----- -------- ----- ----------- ------
Units outstanding, beginning of period 0 0 0 0 0 0
Participant deposits................. 119,599 170,400 20,350 879,569 244,619 194,781
Participant transfers................ 5,044 (21,648) 242 71,903 6,800 13,847
Participant withdrawals.............. (49) (532) (1,340) (31,485) (6,149) (5,302)
--------- --------- --------- --------- --------- ---------
Units outstanding, end of period..... 124,594 148,220 19,252 919,987 245,270 203,326
========= ========= ========= ========= ========= =========
WANGER WANGER
GROWTH AND VALUE SCHAFER U.S. INTERNATIONAL TEMPLETON
INCOME EQUITY MID-CAP SMALL CAP SMALL CAP STOCK
------ ------ ------- --------- --------- -----
Units outstanding, beginning of period 0 0 0 0 0 0
Participant deposits................. 727,478 131,100 142,370 1,774,179 363,235 66,799
Participant transfers................ 116,877 11,402 21,532 65,217 25,800 13,980
Participant withdrawals.............. (19,357) (6,707) (1,561) (14,775) (8,028) (6,221)
--------- --------- --------- --------- --------- ---------
Units outstanding, end of period..... 824,998 135,795 162,341 1,824,621 381,007 74,558
========= ========= ========= ========= ========= =========
TEMPLETON TEMPLETON MUTUAL
ASSET TEMPLETON DEVELOPING SHARES
ALLOCATION INTERNATIONAL MARKETS INVESTMENTS
---------- ------------- ------- -----------
Units outstanding, beginning of period 0 0 0 0
Participant deposits................. 40,941 168,795 22,807 25,000
Participant transfers................ 7,750 16,356 1,047 --
Participant withdrawals.............. (452) (3,736) (2,333) --
--------- --------- --------- ---------
Units outstanding, end of period..... 48,239 181,415 21,521 25,000
========= ========= ========= =========
</TABLE>
10
<PAGE>
PHOENIX HOME LIFE VARIABLE ACCUMULATION ACCOUNT
NOTES TO FINANCIAL STATEMENTS
NOTE 5--INVESTMENT ADVISORY FEES AND RELATED PARTY TRANSACTIONS
Phoenix and its indirect affiliate, Phoenix Equity Planning Corporation, a
registered broker/dealer in securities, provide all services to the Account.
As compensation for administrative services provided to the Account, Phoenix
additionally receives $35 per year from each contract, which is deducted from
the Subaccount holding the assets of the participant, or on a pro-rata basis
from two or more Subaccounts in relation to their values under the contract.
Such costs aggregated $35 during the period ended December 31, 1998.
Phoenix Equity Planning Corporation is the principal underwriter and
distributor for the Account. Phoenix Equity Planning Corporation is reimbursed
for its distribution and underwriting expenses by Phoenix.
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 proceeds and are paid to Phoenix as reimbursement for services provided.
Contingent deferred sales charges deducted and paid to Phoenix aggregated $34
for the period ended December 31, 1998.
Phoenix assumes the risk that annuitants as a class may live longer than
expected (necessitating a greater number of annuity payments) and that its
expenses may be higher than the deductions for such expenses. In return for the
assumption of these mortality and expense risks, Phoenix charges each Subaccount
the daily equivalent of 0.40%, 0.85% and 0.125% on an annual basis for
mortality, expense risks and daily administrative fees, respectively.
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 universal life contract, other than a contract issued in
connection with certain types of employee benefit plans, will not be treated as
a universal life 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 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.
11
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[PricewaterhouseCoopers Logo]
To the Board of Directors of Phoenix Home Life Mutual Insurance Company and
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 each of the subaccounts: Money
Market, Growth, Multi-Sector Fixed Income, Strategic Allocation, International,
Balanced, Real Estate, Strategic Theme, Aberdeen New Asia, Enhanced Index,
Engemann Nifty Fifty, Seneca Mid-Cap Growth, Growth and Income, Value Equity,
Schafer Mid-Cap, Wanger U.S. Small Cap, Wanger International Small Cap,
Templeton Stock, Templeton Asset Allocation, Templeton International, Templeton
Developing Markets and Mutual Shares Investments (constituting the Phoenix Home
Life Variable Accumulation Account, hereafter referred to as the "Account") at
December 31, 1998, and the results of each of their operations and the changes
in each of their net assets for the period then ended, 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 audit. We conducted our audit
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
audit, which included confirmation of investments at December 31, 1998 by
correspondence with fund custodians or transfer agents, provides a reasonable
basis for the opinion expressed above.
/S/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Hartford, Connecticut
February 17, 1999
12
<PAGE>
PHOENIX HOME LIFE
VARIABLE UNIVERSAL LIFE 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.
40 Water Street
Boston, Massachusetts 02109
State Street Bank and Trust
P.O. Box 351
Boston, Massachusetts 02101
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
One Financial Plaza
Hartford, Connecticut 06103
