[logo] Phoenix Home Life
Flex Edge
Joint Edge(R)
Annual Reports for:
Phoenix Home Life Variable
Universal Life Account
The Phoenix Edge Series Fund
December 31, 1995
<PAGE>
TABLE OF CONTENTS
PHOENIX HOME LIFE VARIABLE UNIVERSAL LIFE ACCOUNT
<TABLE>
<CAPTION>
<S> <C>
Money Market Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Financial Highlights 6
Growth Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Financial Highlights 6
Bond Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Financial Highlights 6
Total Return Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Financial Highlights 6
International Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Financial Highlights 6
Balanced Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Financial Highlights 6
Notes to Financial Statements 7
</TABLE>
THE PHOENIX EDGE SERIES FUND
<TABLE>
<CAPTION>
<S> <C>
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
</TABLE>
<PAGE>
This annual report for the Phoenix
Home Life Variable Universal Life Account
for the year ended December 31, 1995,
contains the financial statements for the
Account's variable universal life policies. 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.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
<TABLE>
<CAPTION>
Money Market Growth Bond
Sub-Account Sub-Account Sub-Account
-------------- ----------- ------------
<S> <C> <C> <C>
Assets
Investments at cost $13,959,460 $110,250,111 $ 6,357,472
============ ========= ==========
Investment in The Phoenix Edge Series Fund, at market 13,959,460 118,022,065 6,705,121
------------ --------- ----------
Total assets 13,959,460 118,022,065 6,705,121
Liabilities
Accrued expenses to related party 7,919 72,685 4,346
------------ --------- ----------
Net assets $13,951,541 $117,949,380 $6,700,775
============ ========= ==========
Accumulation units outstanding--Flex Edge 10,229,951 36,538,624 3,484,452
============ ========= ==========
Accumulation units outstanding--Joint Edge 296,269 1,113,293 95,464
============ ========= ==========
Unit value $ 1.325408 $ 3.132626 $ 1.871769
============ ========= ==========
</TABLE>
<TABLE>
<CAPTION>
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
-------------- ----------- ------------
<S> <C> <C> <C>
Assets
Investments at cost $19,900,213 $19,529,649 $ 12,424,740
============ ========= ==========
Investment in The Phoenix Edge Series Fund, at market 20,261,898 20,759,895 13,725,016
------------ --------- ----------
Total assets 20,261,898 20,759,895 13,725,016
Liabilities
Accrued expenses to related party 12,619 12,722 8,541
------------ --------- ----------
Net assets $20,249,279 $20,747,173 $13,716,475
============ ========= ==========
Accumulation units outstanding--Flex Edge 9,236,346 14,435,212 9,521,556
============ ========= ==========
Accumulation units outstanding--Joint Edge 194,742 555,114 400,572
============ ========= ==========
Unit value $ 2.147078 $ 1.384037 $ 1.382412
============ ========= ==========
</TABLE>
2
<PAGE>
STATEMENT OF OPERATIONS
For the year ended December 31, 1995
<TABLE>
<CAPTION>
Money Market Growth Bond
Sub-Account Sub-Account Sub-Account
-------------- ---------- ------------
<S> <C> <C> <C>
Investment income
Distributions $656,913 $ 963,473 $ 456,389
Expenses
Mortality and expense risk charges 94,526 688,907 42,067
------------ -------- ----------
Net investment income 562,387 274,566 414,322
------------ -------- ----------
Net realized gain from share transactions -- 4,178 1,800
Net realized gain distribution from Fund -- 12,514,179 --
Net unrealized appreciation on investment -- 9,293,459 651,393
------------ -------- ----------
Net gain on investments -- 21,811,816 653,193
------------ -------- ----------
Net increase in net assets resulting from operations $562,387 $22,086,382 $1,067,515
============ ======== ==========
</TABLE>
<TABLE>
<CAPTION>
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
-------------- ----------- ------------
<S> <C> <C> <C>
Investment income
Distributions $ 554,634 $ 65,980 $ 394,319
Expenses
Mortality and expense risk charges 130,115 141,161 88,010
------------ --------- ----------
Net investment income (loss) 424,519 (75,181) 306,309
------------ --------- ----------
Net realized gain (loss) from share transactions 1,051 (16,995) 527
Net realized gain distribution from Fund 1,221,316 380,538 272,172
Net unrealized appreciation on investment 873,761 1,259,164 1,647,649
------------ --------- ----------
Net gain on investments 2,096,128 1,622,707 1,920,348
------------ --------- ----------
Net increase in net assets resulting from operations $2,520,647 $ 1,547,526 $2,226,657
============ ========= ==========
</TABLE>
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
--------------- ----------- ------------
<S> <C> <C> <C>
From operations
Net investment income $ 562,387 $ 274,566 $ 414,322
Net realized gain -- 12,518,357 1,800
Net unrealized appreciation -- 9,293,459 651,393
------------- --------- ----------
Net increase in net assets resulting from operations 562,387 22,086,382 1,067,515
------------- --------- ----------
From accumulation unit transactions
Participant deposits 23,196,295 34,460,166 1,851,602
Participant transfers (19,227,932) 15,470,116 884,223
Participant withdrawals (2,331,740) (12,409,600) (772,642)
------------- --------- ----------
Net increase in net assets resulting from participant
transactions 1,636,623 37,520,682 1,963,183
------------- --------- ----------
Net increase in net assets 2,199,010 59,607,064 3,030,698
Net assets
Beginning of period 11,752,531 58,342,316 3,670,077
------------- --------- ----------
End of period $ 13,951,541 $117,949,380 $6,700,775
============= ========= ==========
</TABLE>
<TABLE>
<CAPTION>
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
-------------- ----------- ------------
<S> <C> <C> <C>
From operations
Net investment income (loss) $ 424,519 $ (75,181) $ 306,309
Net realized gain (loss) 1,222,367 363,543 272,699
Net unrealized appreciation 873,761 1,259,164 1,647,649
------------ --------- ----------
Net increase in net assets resulting from operations 2,520,647 1,547,526 2,226,657
------------ --------- ----------
From accumulation unit transactions
Participant deposits 5,457,071 7,548,871 3,800,064
Participant transfers 2,208,588 (399,608) 581,841
Participant withdrawals (2,158,665) (2,474,965) (1,761,880)
------------ --------- ----------
Net increase in net assets resulting from participant
transactions 5,506,994 4,674,298 2,620,025
------------ --------- ----------
Net increase in net assets 8,027,641 6,221,824 4,846,682
Net assets
Beginning of period 12,221,638 14,525,349 8,869,793
------------ --------- ----------
End of period $20,249,279 $20,747,173 $13,716,475
============ ========= ==========
</TABLE>
4
<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
--------------- ---------- ------------
<S> <C> <C> <C>
From operations
Net investment income $ 269,315 $ 294,375 $ 218,172
Net realized gain (loss) -- 3,213,016 (3,967)
Net unrealized depreciation -- (3,486,259) (392,992)
------------- -------- ----------
Net increase (decrease) in net assets resulting from
operations 269,315 21,132 (178,787)
------------- -------- ----------
From accumulation unit transactions
Participant deposits 21,682,948 26,040,831 1,844,201
Participant transfers (14,299,239) 7,532,883 23,923
Participant withdrawals (2,824,234) (7,655,667) (503,930)
------------- -------- ----------
Net increase in net assets resulting from participant
transactions 4,559,475 25,918,047 1,364,194
------------- -------- ----------
Net increase in net assets 4,828,790 25,939,179 1,185,407
Net assets
Beginning of period 6,923,741 32,403,137 2,484,670
------------- -------- ----------
End of period $ 11,752,531 $58,342,316 $3,670,077
============= ======== ==========
</TABLE>
<TABLE>
<CAPTION>
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
-------------- ----------- ------------
<S> <C> <C> <C>
From operations
Net investment income (loss) $ 227,212 $ (56,510) $ 212,403
Net realized gain 343,918 305,474 61,943
Net unrealized depreciation (771,056) (732,849) (556,387)
------------ --------- ----------
Net decrease in net assets resulting from operations (199,926) (483,885) (282,041)
------------ --------- ----------
From accumulation unit transactions
Participant deposits 5,110,267 6,568,479 3,993,661
Participant transfers 1,128,647 4,843,273 149,204
Participant withdrawals (1,493,881) (1,519,024) (1,268,580)
------------ --------- ----------
Net increase in net assets resulting from participant
transactions 4,745,033 9,892,728 2,874,285
------------ --------- ----------
Net increase in net assets 4,545,107 9,408,843 2,592,244
Net assets
Beginning of period 7,676,531 5,116,506 6,277,549
------------ --------- ----------
End of period $12,221,638 $14,525,349 $ 8,869,793
============ ========= ==========
</TABLE>
5
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a unit outstanding throughout the indicated period)
(Unaudited)
<TABLE>
<CAPTION>
Money Market Sub-Account Growth Sub-Account
----------------------------- --------------------------------
Year Ended December 31, Year Ended December 31,
1995 1994 1995 1994
------------ -------------- ------------ ----------------
<S> <C> <C> <C> <C>
Unit value, beginning of period $ 1.263974 $ 1.226981 $2.412541 $ 2.396670
Income from investment operations
Net investment income 0.061434 0.036993 0.008952 0.221088
Net realized and unrealized gain
(loss) -- -- 0.711133 (0.205217 )
Total from investment operations 0.061434 0.036993 0.720085 0.015871
---------- ------------ ---------- ---------------
Unit value, end of period $ 1.325408 $ 1.263974 $3.132626 $ 2.412541
========== ============ ========== ===============
Total return 4.86% 3.01% 29.85% 0.66%
Net assets, end of period (000) $13,952 $11,753 $117,949 $58,342
</TABLE>
<TABLE>
<CAPTION>
Bond Sub-Account Total Return Sub-Account
------------------------- ------------------------------
Year Ended December 31, Year Ended December 31,
1995 1994 1995 1994
-------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
Unit value, beginning of period $1.527250 $ 1.628351 $1.830914 $ 1.871886
Income from investment operations
Net investment income 0.133714 0.123373 0.053247 0.046564
Net realized and unrealized gain (loss) 0.210805 (0.224474) 0.262917 (0.087536 )
------ ----------- ---------- -------------
Total from investment operations 0.344519 (0.101101) 0.316164 (0.040972 )
------ ----------- ---------- -------------
Unit value, end of period $1.871769 $ 1.527250 $2.147078 $ 1.830914
====== =========== ========== =============
Total return 22.56% (6.21)% 17.27% (2.19)%
Net assets, end of period (000) $6,701 $3,670 $20,249 $12,222
</TABLE>
FINANCIAL HIGHLIGHTS
(Selected data for a unit outstanding throughout the indicated period)
<TABLE>
<CAPTION>
International Sub-Account Balanced Sub-Account
--------------------------------- -----------------------------
Year Ended December 31, Year Ended December 31,
1995 1994 1995 1994
------------- ----------------- ------------ --------------
<S> <C> <C> <C> <C>
Unit value, beginning of period $ 1.273020 $ 1.282423 $1.129669 $ 1.171933
Income from investment operations
Net investment income (loss) (0.005393 ) (0.001098 ) 0.034768 0.031829
Net realized and unrealized gain (loss) 0.116410 (0.008305 ) 0.217975 (0.074093 )
----------- --------------- ---------- ------------
Total from investment operations 0.111017 (0.009403 ) 0.252743 (0.042264 )
----------- --------------- ---------- ------------
Unit value, end of period $ 1.384037 $ 1.273020 $1.382412 $ 1.129669
=========== =============== ========== ============
Total return 8.72% (0.73)% 22.37% (3.61)%
Net assets, end of period (000) $20,747 $14,525 $13,716 $8,870
</TABLE>
6
<PAGE>
PHOENIX HOME LIFE VARIABLE UNIVERSAL LIFE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
Note 1--Organization:
Phoenix Home Life Variable Universal Life Account (the Account) is a
separate investment account of Phoenix Home Life Mutual Insurance Company
(Phoenix Home Life). The Account is offered as Flex Edge for individual
variable life insurance and as Joint Edge for variable first-to-die joint
life insurance. The account is organized as a unit investment trust under the
Investment Company Act of 1940, as amended, and currently consists of six
Sub-accounts, which invest in six of the available portfolios of The Phoenix
Edge Series Fund (the Fund). The Real Estate Series is currently not
available to the Account.
Each series has distinct investment objectives. The Money Market Series is
a 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 internationally diversified 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 securities. 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.
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 Fund 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 Fund as well as gains and losses
on sales of shares in the fund 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 arising from 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 Phoenix Edge Series Fund:
Purchases and sales of shares of the Fund for the year ended December 31,
1995 aggregated the following:
<TABLE>
<CAPTION>
Sub-Account Purchases Sales
- ------------- ---------- ------------
<S> <C> <C>
Money Market $15,358,015 $13,127,029
Growth 52,656,500 2,386,549
Bond 3,150,173 775,101
Total Return 7,932,811 790,863
International 7,725,084 2,760,274
Balanced 4,832,165 1,642,462
</TABLE>
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>
Flex Edge:
Participant deposits 16,530,006 11,865,242 1,056,465 2,618,013 5,503,623 2,914,431
Participant transfers (13,776,782) 5,246,964 514,311 1,064,109 (387,514) 438,017
Participant withdrawals (1,666,716) (4,223,772) (441,021) (1,027,984) (1,776,981) (1,344,173)
Joint Edge:
Participant deposits 1,348,536 507,471 38,054 100,104 269,791 129,152
Participant transfers (1,073,563) 295,473 21,958 48,759 87,491 11,893
Participant withdrawals (133,344) (222,390) (12,913) (47,069) (116,238) (78,868)
</TABLE>
Note 5--Policy Loans:
Transfers are made to Phoenix Home Life's general account as a result of
policy loans. Contract provisions allow contract owners to borrow up to 90%
of a policy's cash value with an interest rate set in accordance with the
contract due and payable on each policy anniversary. At the time a loan is
granted, an amount equivalent to the amount of the loan is transferred from
the Account to Phoenix Home Life's general account as collateral for the
outstanding loan. These transfers are included in participant withdrawals in
the accompanying financial statements. Amounts in the general account are
credited with interest at 6%. Loan repayments result in a transfer of
collateral back to the Account.
Note 6--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.
The cost of insurance is charged to each policy on a monthly basis by a
withdrawal of participant units prorated among the elected Sub- accounts. The
amount charged to each policy depends on a number of variables including sex,
age and risk class as well as the death benefit and cash value of the policy.
Such costs aggregated $14,392,712 during the year ended December 31, 1995.
Upon partial surrender of a policy a surrender fee of the lesser of $25 or
2% of the partial surrender amount paid and a partial surrender charge equal
to a pro rata portion of the applicable surrender charge is deducted from the
policy value and paid to Phoenix Home Life. Partial surrender fees paid
during the year ended December 31, 1995 were $853,600.
7
<PAGE>
Phoenix Equity Planning Corporation is the principal underwriter and
distributor of the Account. Phoenix Equity Planning Corporation is reimbursed
for its distribution and underwriting expenses by Phoenix Home Life.
Policies which are surrendered during the first ten policy years will
incur a surrender charge, consisting of a contingent deferred sales charge
designed to recover expenses for the distribution of Policies that are
terminated by surrender before distribution expenses have been recouped, and
a contingent deferred issue charge designed to recover expenses for the
administration of Policies that are terminated by surrender before
administrative expenses have been recouped. These are contingent charges
because they are paid only if the Policy is surrendered (or a partial
withdrawal is taken or the Face Amount is reduced or the Policy lapses)
during the first ten policy years. They are deferred charges because they are
not deducted from premiums.
Phoenix Home Life assumes the risk that insureds may live for a shorter
time than projected because of inaccuracies in the projecting process and,
accordingly, that an aggregate amount of death benefits greater than
projected will be payable 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 Account an annual rate of
0.80% of the average daily net assets of the Account for mortality and
expense risks assumed.
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 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.
8
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP [logo]
To the Participants of
Phoenix Home Life Variable
Universal Life 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 and Balanced Sub- Account (constituting the Phoenix
Home Life Variable Universal Life Account, hereafter referred to as the
"Account") at December 31, 1995, the results of each of their operations for
the year 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.
[Price Waterhouse LLP signature]
Hartford, CT 06103
February 13, 1996
9
<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
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
Independent Accountants
Price Waterhouse LLP
One Financial Plaza
Hartford, Connecticut 06103
10
<PAGE>
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 810
Greenfield, Massachusetts 01302-0810
OL1320K (2/96)
4450.04
[Recycle Logo] Printed on recycled paper using soybean ink
(C) 1996 Phoenix Home Life Mutual Insurance Company
