ICAP PLUS VARIABLE LIFE ACCOUNT ONE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1996
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
STATEMENT OF NET ASSETS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NET ASSETS SHARES COST VALUE
------ ---- -----
<S> <C> <C> <C>
Investments in mutual fund portfolio:
Money Market 1,469,360 $ 1,469,360 $ 1,469,360
Growth 115,223 2,295,822 2,672,563
Fixed Income 15,550 212,368 206,868
Government and Quality Bond 73,940 1,000,051 1,010,835
High Yield 53,011 446,142 444,372
Strategic Multi-Asset 111,503 1,252,433 1,360,417
Multi-Asset 230,542 2,659,373 3,077,738
Capital Appreciation 88,959 1,953,408 2,490,691
Growth and Income 62,870 761,789 854,291
Foreign Securities 80,222 885,084 1,038,226
Natural Resources 19,397 282,878 327,159
Target '98 5,912 74,418 68,998
----------------------------
Net Assets $13,293,126 $15,021,518
============================
UNIT
UNITS VALUE VALUE
------ ---- -----
<S> <C> <C> <C>
NET ASSETS APPLICABLE TO
OUTSTANDING UNITS OF CAPITAL
Account:
Money Market 81,684.910 $17.988143 $ 1,469,360
Growth 61,214.436 43.659022 2,672,563
Fixed Income 7,756.393 26.670598 206,868
Government and Quality Bond 36,030.560 28.054940 1,010,835
High Yield 18,471.920 24.056628 444,372
Strategic Multi-Asset 63,059.798 21.573438 1,360,417
Multi-Asset 130,879.258 23.515858 3,077,738
Capital Appreciation 67,921.672 36.670047 2,490,691
Growth and Income 36,254.602 23.563662 854,291
Foreign Securities 69,214.480 15.000130 1,038,226
Natural Resources 16,096.149 20.325312 327,159
Target '98 3,479.259 19.831280 68,998
-------------
Net assets applicable to
outstanding units of capital $15,021,518
=============
</TABLE>
See accompanying notes to financial statements.
1
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
NET INVESTMENT INCOME
Dividend income $ 458,191
Mortality and expense risk charges
and administrative expense (67,904)
-----------
Net investment income 390,287
-----------
REALIZED AND UNREALIZED GAIN
Realized gain from investment transactions:
Proceeds from sales 6,164,524
Cost of investments sold (5,696,735)
-----------
Net realized gain 467,789
Capital gains distribution 485,639
-----------
Net realized gain from investments 953,428
-----------
Change in unrealized appreciation on investments:
Unrealized appreciation at end of period 1,728,392
Unrealized appreciation at beginning of period 966,580
-----------
Net change in unrealized appreciation 761,812
-----------
Realized and unrealized gain 1,715,240
-----------
INCREASE IN NET ASSETS FROM OPERATIONS $2,105,527
===========
See accompanying notes to financial statements.
2
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
Statement of Changes in Net Assets
Year Year
Ended Ended
December 31, 1996 December 31, 1995
----------------- -----------------
OPERATIONS
Net investment income $ 390,287 $ 404,417
Net realized gain from investments 953,428 1,147,367
Net change in unrealized appreciation 761,812 1,163,195
--------------------------------
Increase in net assets
from operations 2,105,527 2,714,979
--------------------------------
POLICYHOLDER TRANSACTIONS
Purchase payments received 50,806 130,842
Withdrawals and surrenders (2,413,986) (2,128,168)
Exchange purchases 4,034,184 5,216,227
Exchange surrenders (4,011,032) (5,680,470)
--------------------------------
Decrease in net assets from
policyholder transactions (2,340,028) (2,461,569)
--------------------------------
INCREASE (DECREASE) IN NET ASSETS (234,501) 253,410
NET ASSETS, beginning of period 15,256,019 15,002,609
--------------------------------
NET ASSETS, end of period $15,021,518 $15,256,019
================================
See accompanying notes to financial statements.
3
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 1- ORGANIZATION AND OPERATION
ICAP Plus Variable Life Account One (the "Account") is a separate account of
Phoenix Home Life Mutual Insurance Company ("Phoenix Home Life"). The Account is
organized as a unit investment trust registered under the Investment Company Act
of 1940, as amended. In an assumption reinsurance transaction effected February
16, 1991, the Account, and the assets therein, were transferred from Anchor
National Life Insurance Company to Phoenix Home Life which assumed all of the
liabilities, obligations and guarantees of the Account as of that date.
These financial statements include balances allocated by each policyholder to
the variable divisions of the Account and do not include policyholder balances
allocated to the general account of Phoenix Home Life. At December 31, 1996, the
general account includes $2,957,943 of policyholder funds.
The Account has twelve divisions which invest solely in shares of the twelve
portfolios of the Anchor Series Trust (the "Trust"), an open-end diversified
management investment company.
NOTE 2- SIGNIFICANT ACCOUNTING POLICIES
a) Investment Valuation, Transactions and Related Income Recognition
Investments in shares of the Trust are valued using the net asset value per
share of the respective Portfolios of the Trust determined on a daily basis
(each business day of the New York Stock Exchange). Investment transactions
are accounted for on the trade date (date the order to buy or sell is
executed) and dividend income or capital gains distribution from the Trust
is recorded on the ex-dividend date. In determining the net gain or loss on
securities sold, the cost of the securities is determined on the
first-in-first-out basis.
Exchanges between divisions requested by policyholders are recorded in the
new division upon receipt of redemption proceeds.
4
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 2- SIGNIFICANT ACCOUNTING POLICIES (Continued)
b) Federal Income Taxes
Phoenix Home Life qualifies for federal income tax treatment granted to
life insurance companies under Subchapter L of the Internal Revenue Code.
The operations of the Account are part of the total operations of Phoenix
Home Life and are not taxed separately. The Account is not treated as a
Regulated Investment Company under the Code.
c) Expenses
Phoenix Home Life absorbed certain operating expenses of the Account
including registration fees required for distribution of its policies under
the federal securities laws and state insurance laws.
NOTE 3- CONTRACT CHARGES
a) A mortality and expense risk charge is paid by the Account to Phoenix Home
Life. This charge is based upon the value of each division of the Account
and was charged daily at an annual rate of 0.60% through February 8, 1995
and 0.25% thereafter.
b) An administrative expense charge is paid by the Account to Phoenix Home
Life. This charge is based upon the value of each division of the Account
and was charged daily at an annual rate of 0.55% through February 8, 1995
and 0.20% thereafter.
A portion of the administrative charge is attributable to premium taxes
imposed by certain state and local governments with respect to the initial
premium. When an additional premium is paid, Phoenix Home Life deducts a
charge for premium taxes equal to 2.50% of the premium.
c) Phoenix Home Life deducts a charge for the monthly cost of insurance from
the policy's cash value, which provides death benefit protection for the
following policy month.
5
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 3- CONTRACT CHARGES (Continued)
The monthly cost of insurance is the cost of insurance rate, multiplied by
the net amount at risk for a policy month. The cost of insurance varies by
sex, attained age and rate class. The net amount at risk may be simply
defined as the death benefit less the cash value.
d) In the event that the policy is surrendered during the first eight policy
years, a surrender charge will be deducted. The surrender charge reimburses
Phoenix Home Life for expenses incurred in connection with the promotion,
sale and distribution of the policy. The surrender charge will be assessed
as follows:
PERCENTAGE OF
POLICY YEAR INITIAL PREMIUM
----------- ---------------
1 8%
2 8
3 7
4 7
5 6
6 5
7 4
8 3
9+ 0
No surrender charge will be imposed on death benefits or on additional
premium payments, unless the additional premium increases the death
benefit, in which event it may be subject to the surrender charge.
e) If a policy is surrendered within the first eight policy years, Phoenix
Home Life deducts any portion of the premium tax and policy issue costs
recovered through the administration charge, determined as follows:
6
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 3- CONTRACT CHARGES (Continued)
PERCENTAGE OF
POLICY YEAR INITIAL PREMIUM
----------- ---------------
1 2.82%
2 2.46
3 2.08
4 1.69
5 1.29
6 0.88
7 0.47
8 0.04
NOTE 4- DIVERSIFICATION REQUIREMENTS
Under the provisions of Section 817(h) of the Internal Revenue Code (the
"Code"), a variable life contract, other than a contract issued in connection
with certain types of employee benefit plans, will not be treated as a 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.
7
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA
<TABLE>
<CAPTION>
For Year Ended December 31,
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
MONEY MARKET:
Net Unit Value:
- ---------------
Beginning of period $17.208028 $16.381520 $15.957504 $15.718318 $15.380231
End of period 17.988143 17.208028 16.381520 15.957504 15.718318
---------- ---------- ----------- ---------- -----------
Net increase in net unit
value from operations $0.780115 $0.826508 $0.424016 $0.239186 $0.338087
========== ========== =========== ========== ===========
Accumulation units outstanding:
End of period 81,684.910 92,859.771 151,272.799 91,265.448 116,425.676
========== ========== =========== ========== ===========
GROWTH:
Net Unit Value:
- ---------------
Beginning of period $35.061829 $27.905315 $29.626760 $27.808195 $26.688873
End of period 43.659022 35.061829 27.905315 29.626760 27.808195
---------- ---------- ----------- ---------- -----------
Net increase (decrease) in net unit
value from operations $8.597193 $7.156514 ($1.721445) $1.818565 $1.119322
========== ========== =========== ========== ===========
Accumulation units outstanding:
End of period 61,214.436 77,102.759 99,798.217 122,322.954 145,429.653
========== ========== =========== ========== ===========
FIXED INCOME:
Net Unit Value:
- ---------------
Beginning of period $26.143156 $22.057448 $23.059146 $21.608890 $20.519426
End of period 26.670598 26.143156 22.057448 23.059146 21.608890
---------- ---------- ----------- ---------- -----------
Net increase (decrease) in net unit
value from operations $0.527442 $4.085708 ($1.001698) $1.450256 $1.089464
========== ========== =========== ========== ===========
Accumulation units outstanding:
End of period 7,756.393 9,817.121 13,812.583 20,594.972 23,763.598
========== ========== =========== ========== ===========
GOVERNMENT AND QUALITY BOND:
Net Unit Value:
- ---------------
Beginning of period $27.363761 $23.062807 $24.061836 $22.471310 $21.271297
End of period 28.054940 27.363761 23.062807 24.061836 22.471310
---------- ---------- ----------- ---------- -----------
Net increase (decrease) in net unit
value from operations $0.691179 $4.300954 ($0.999029) $1.590526 $1.200013
========== ========== =========== ========== ===========
Accumulation units outstanding:
End of period 36,030.560 41,823.525 53,791.870 52,798.823 68,049.628
========== ========== =========== ========== ===========
</TABLE>
8
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA (Continued)
<TABLE>
<CAPTION>
For Year Ended December 31,
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
HIGH YIELD:
Net Unit Value:
- ---------------
Beginning of period $21.631502 $18.311593 $19.390068 $16.469796 $14.612125
End of period 24.056628 21.631502 18.311593 19.390068 16.469796
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $2.425126 $3.319909 ($1.078475) $2.920272 $1.857671
========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 18,471.920 23,297.233 22,225.400 28,857.994 32,499.713
========== ========== ========== ========== ==========
STRATEGIC MULTI-ASSET:
Net Unit Value:
- ---------------
Beginning of period $18.871464 $15.452177 $16.046587 $14.078211 $13.706445
End of period 21.573438 18.871464 15.452177 16.046587 14.078211
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $2.701974 $3.419287 ($0.594410) $1.968376 $0.371766
========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 63,059.798 71,910.358 92,407.508 100,541.984 109,367.325
========== ========== ========== ========== ==========
MULTI-ASSET:
Net Unit Value:
- ---------------
Beginning of period $20.745427 $16.687065 $17.171904 $16.184528 $15.136605
End of period 23.515858 20.745427 16.687065 17.171904 16.184528
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $2.770431 $4.058362 ($0.484839) $0.987376 $1.047923
========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 130,879.258 150,648.340 159,072.494 173,040.307 200,966.933
========== ========== ========== ========== ==========
CAPITAL APPRECIATION:
Net Unit Value:
- ---------------
Beginning of period $29.438162 $21.997082 $23.130496 $19.326613 $15.516418
End of period 36.670047 29.438162 21.997082 23.130496 19.326613
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $7.231885 $7.441080 ($1.133414) $3.803883 $3.810195
========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 67,921.672 74,106.731 60,646.794 90,692.591 95,104.928
========== ========== ========== ========== ==========
</TABLE>
9
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA (Continued)
<TABLE>
<CAPTION>
For Year Ended December 31,
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
GROWTH and INCOME:
Net Unit Value:
- ---------------
Beginning of period $19.673868 $16.991875 $19.021372 $15.771764 $13.277614
End of period 23.563662 19.673868 16.991875 19.021372 15.771764
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $3.889794 $2.681993 ($2.029497) $3.249608 $2.494150
========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 36,254.602 41,324.596 41,919.783 47,948.619 40,275.157
========== ========== ========== ========== ==========
FOREIGN SECURITIES:
Net Unit Value:
- ---------------
Beginning of period $13.520833 $12.071981 $12.611983 $9.793832 $11.404702
End of period 15.000130 13.520833 12.071981 12.611983 9.793832
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $1.479297 $1.448852 ($0.540002) $2.818151 ($1.610870)
========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 69,214.480 78,097.323 93,950.950 114,527.042 41,344.157
========== ========== ========== ========== ==========
NATURAL RESOURCES:
Net Unit Value:
- ---------------
Beginning of period $17.900007 $15.321133 $15.336863 $11.393799 $11.250077
End of period 20.325312 17.900007 15.321133 15.336863 11.393799
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $2.425305 $2.578874 ($0.015730) $3.943064 $0.143722
========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 16,096.149 25,100.529 30,011.911 21,702.780 11,099.048
========== ========== ========== ========== ==========
TARGET '98:
Net Unit Value:
- ---------------
Beginning of period $19.207550 $16.846404 $17.773276 $16.161730 $15.252884
End of period 19.831280 19.207550 16.846404 17.773276 16.161730
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $0.623730 $2.361146 ($0.926872) $1.611546 $0.908846
========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 3,479.259 3,515.671 3,840.433 3,559.732 3,542.659
========== ========== ========== ========== ==========
</TABLE>
10
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 6 - POLICYHOLDER TRANSACTIONS
The decrease in net assets from changes in the number of outstanding units was
as follows for the year ended December 31, 1996:
<TABLE>
<CAPTION>
PURCHASE PAYMENTS NET EXCHANGE PURCHASES DECREASE
AND TRANSFERS AND EXCHANGE WITHDRAWALS AND IN NET ASSETS FROM
RECEIVED SURRENDERS SURRENDERS POLICYHOLDER TRANSACTIONS
----------------------------------------------------------------------------------------------------
ACCOUNT UNITS DOLLARS UNITS DOLLARS UNITS DOLLARS UNITS DOLLARS
------- ----- ------- ------ ------- ------ ------- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market 942 $16,395 3,351 $61,656 (15,468) ($270,671) (11,175) ($192,620)
Growth - - (3,325) (108,307) (12,564) (488,160) (15,889) (596,467)
Fixed Income - - (12) (312) (2,049) (53,968) (2,061) (54,280)
Government and Quality Bond 2 64 1,583 37,614 (7,379) (199,147) (5,794) (161,469)
High Yield - - 4,768 104,476 (9,593) (217,987) (4,825) (113,511)
Strategic Multi-Asset 395 8,220 813 16,824 (10,058) (200,108) (8,850) (175,064)
Multi-Asset 3 67 (2,708) (64,591) (17,064) (380,824) (19,769) (445,348)
Capital Appreciation 619 20,780 (1,589) (40,413) (5,215) (170,006) (6,185) (189,639)
Growth and Income - - (1,768) (36,462) (3,302) (68,517) (5,070) (104,979)
Foreign Securities 363 5,280 3,087 42,556 (12,333) (175,045) (8,883) (127,209)
Natural Resources - - 299 2,566 (9,303) (181,217) (9,004) (178,651)
Target '98 - - 391 7,545 (428) (8,336) (37) (791)
---------------------------------------------------------------------------------------------------
2,324 $50,806 4,890 $23,152 (104,756) ($2,413,986) (97,542) ($2,340,028)
===================================================================================================
</TABLE>
11
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 7 - DETAILED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1996
A statement of operations by investment division follows for the year ended
December 31, 1996:
<TABLE>
<CAPTION>
Money Fixed Govt.and Strategic
Market Growth Income Quality Bond High Yield Multi-Asset Multi-Asset
------ ------ ------ ------------ ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Dividend income $70,543 $11,726 $20,338 $65,685 $58,450 $40,848 $111,283
Mortality and expense risk
charges and administrative
expense (6,497) (11,753) (1,135) (4,617) (2,290) (5,995) (14,191)
-----------------------------------------------------------------------------------
Net investment income (loss) 64,046 (27) 19,203 61,068 56,160 34,853 97,092
-----------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS):
Realized gain (loss) from
investment transactions:
Proceeds from sales 1,365,342 1,141,823 78,691 335,587 608,626 205,646 464,239
Cost of investments sold (1,365,342) (1,063,570) (79,790) (323,860) (611,060) (189,266) (401,945)
-----------------------------------------------------------------------------------
Net realized gain (loss) - 78,253 (1,099) 11,727 (2,434) 16,380 62,294
Capital gains distribution - 105,795 - 2,140 - 85,895 205,132
-----------------------------------------------------------------------------------
Net realized gain (loss)
from investments: 0 184,048 (1,099) 13,867 (2,434) 102,275 267,426
-----------------------------------------------------------------------------------
Change in unrealized
appreciation (depreciation)
on investments:
Unrealized appreciation
(depreciation) at end
of period - 376,741 (5,500) 10,784 (1,770) 107,984 418,365
Unrealized appreciation
(depreciation) at beginning
of period - (4,904) 8,107 57,864 (1,973) 66,685 385,061
-----------------------------------------------------------------------------------
Net change in unrealized
appreciation/(depreciation) - 381,645 (13,607) (47,080) 203 41,299 33,304
-----------------------------------------------------------------------------------
Realized and unrealized
gain (loss) - 565,693 (14,706) (33,213) (2,231) 143,574 300,730
-----------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS $64,046 $565,666 $4,497 $27,855 $53,929 $178,427 $397,822
===================================================================================
Capital Growth and Foreign Natural
Appreciation Income Securities Resources Target '98 Total
------------ ------ ---------- --------- ---------- -----
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Dividend income $4,643 $45,756 $17,268 $3,393 $8,258 $458,191
Mortality and expense risk
charges and administrative
expense (10,784) (3,633) (4,757) (1,927) (325) (67,904)
--------------------------------------------------------------------------------
Net investment income (loss) (6,141) 42,123 12,511 1,466 7,933 390,287
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS):
Realized gain (loss) from
investment transactions:
Proceeds from sales 1,039,195 140,906 441,084 334,724 8,661 6,164,524
Cost of investments sold (839,663) (133,493) (386,325) (292,988) (9,433) (5,696,735)
--------------------------------------------------------------------------------
Net realized gain (loss) 199,532 7,413 54,759 41,736 (772) 467,789
Capital gains distribution 80,839 - - 5,838 - 485,639
--------------------------------------------------------------------------------
Net realized gain (loss)
from investments: 280,371 7,413 54,759 47,574 (772) 953,428
--------------------------------------------------------------------------------
Change in unrealized
appreciation (depreciation)
on investments:
Unrealized appreciation
(depreciation) at end
of period 537,283 92,502 153,142 44,281 (5,420) 1,728,392
Unrealized appreciation
(depreciation) at beginning
of period 312,749 (4,217) 110,918 36,811 (521) 966,580
--------------------------------------------------------------------------------
Net change in unrealized
appreciation/(depreciation) 224,534 96,719 42,224 7,470 (4,899) 761,812
--------------------------------------------------------------------------------
Realized and unrealized
gain (loss) 504,905 104,132 96,983 55,044 (5,671) 1,715,240
--------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS $498,764 $146,255 $109,494 $56,510 $2,262 $2,105,527
===================================================================================
</TABLE>
12
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1996
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
STATEMENT OF NET ASSETS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
NET ASSETS SHARES COST VALUE
- ---------- ------ ---- -----
<S> <C> <C> <C>
Investments in mutual fund portfolio:
Money Market 40,911 $ 40,911 $ 40,911
Growth 4,113 87,506 95,396
Fixed Income 53 757 712
Government and Quality Bond 819 11,239 11,198
High Yield 1,145 9,385 9,596
Strategic Multi-Asset 9,640 114,243 117,609
Multi-Asset 4,452 54,513 59,437
Capital Appreciation 4,974 126,401 139,277
Growth and Income 661 8,292 8,981
Foreign Securities 2,906 31,679 37,608
Natural Resources 1,767 27,807 29,806
Target '98 342 4,262 3,989
----------------------------
Net Assets $516,995 $554,520
============================
</TABLE>
<TABLE>
<CAPTION>
UNIT
UNITS VALUE VALUE
----- ----- -----
<S> <C> <C> <C>
NET ASSETS APPLICABLE TO
OUTSTANDING UNITS OF CAPITAL
Account:
Money Market 2,765.451 $14.793740 $ 40,911
Growth 3,253.726 29.319060 95,396
Fixed Income 38.814 18.334574 712
Government and Quality Bond 573.645 19.520774 11,198
High Yield 499.086 19.227616 9,596
Strategic Multi-Asset 5,120.181 22.969725 117,609
Multi-Asset 2,481.475 23.952220 59,437
Capital Appreciation 3,513.203 39.643903 139,277
Growth and Income 362.620 24.766119 8,981
Foreign Securities 2,332.263 16.124989 37,608
Natural Resources 1,528.981 19.494075 29,806
Target '98 209.843 19.007934 3,989
---------
Net assets applicable to
outstanding units of capital $554,520
=========
</TABLE>
See accompanying notes to financial statements.
1
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
NET INVESTMENT INCOME
Dividend income $13,505
Mortality and expense risk charges
and administrative expense (3,549)
---------
Net investment income 9,956
---------
REALIZED AND UNREALIZED GAIN (LOSS)
Realized gain from investment transactions:
Proceeds from sales 836,093
Cost of investments sold (785,376)
---------
Net realized gain 50,717
Capital gains distribution 20,646
---------
Net realized gain from investments 71,363
---------
Change in unrealized appreciation on investments:
Unrealized appreciation at end of period 37,525
Unrealized appreciation at beginning of period 29,618
---------
Net change in unrealized appreciation 7,907
---------
Realized and unrealized gain 79,270
---------
INCREASE IN NET ASSETS FROM OPERATIONS $89,226
=========
See accompanying notes to financial statements.
2
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
Statement of Changes in Net Assets
Year Year
Ended Ended
December 31, 1996 December 31, 1995
----------------- -----------------
OPERATIONS
Net investment income $9,956 $9,509
Net realized gain from investments 71,363 28,107
Net change in unrealized appreciation 7,907 53,664
------------------------------
Increase in net assets
from operations 89,226 91,280
------------------------------
POLICYHOLDER TRANSACTIONS
Purchase payments received 44,848 39,152
Withdrawals and surrenders (134,497) (53,831)
Exchange purchases 703,622 130,357
Exchange surrenders (703,622) (130,394)
------------------------------
Decrease in net assets from
policyholder transactions (89,649) (14,716)
------------------------------
INCREASE/(DECREASE) IN NET ASSETS (423) 76,564
NET ASSETS, beginning of period 554,943 478,379
------------------------------
NET ASSETS, end of period $554,520 $554,943
==============================
See accompanying notes to financial statements.
3
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - ORGANIZATION AND OPERATION
RSVP Variable Life Account One (the "Account") is a separate account of Phoenix
Home Life Mutual Insurance Company ("Phoenix Home Life"). The Account is
organized as a unit investment trust registered under the Investment Company Act
of 1940, as amended. In an assumption reinsurance transaction effected February
16, 1991, the Account, and the assets therein, were transferred from Anchor
National Life Insurance Company to Phoenix Home Life which assumed all of the
liabilities, obligations and guarantees of the Account as of that date.
These financial statements include balances allocated by each policyholder to
the variable divisions of the Account and do not include policyholder balances
allocated to the general account of Phoenix Home Life. At December 31, 1996, the
general account includes $43,585 of policyholder funds.
The Account has twelve divisions which invest solely in shares of the twelve
portfolios of the Anchor Series Trust (the "Trust"), an open-end diversified
management investment company.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
a) Investment Valuation, Transactions and Related Income Recognition
Investments in shares of the Trust are valued using the net asset value per
share of the respective Portfolios of the Trust determined on a daily basis
(each business day of the New York Stock Exchange). Investment transactions
are accounted for on the trade date (date the order to buy or sell is
executed) and dividend income or capital gains distribution from the Trust
is recorded on the ex-dividend date. In determining the net gain or loss on
securities sold, the cost of the securities is determined on the
first-in-first out basis.
Exchanges between divisions requested by policyholders are recorded in the
new division upon receipt of redemption proceeds.
4
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 2- SIGNIFICANT ACCOUNTING POLICIES (Continued)
b) Federal Income Taxes
Phoenix Home Life qualifies for federal income tax treatment granted to
life insurance companies under Subchapter L of the Internal Revenue Code.
The operations of the Account are part of the total operations of Phoenix
Home Life and are not taxed separately. The Account is not treated as a
Regulated Investment Company under the Code.
c) Expenses
Phoenix Home Life absorbs certain operating expenses of the Account
including registration fees required for distribution of its policies under
the federal securities laws and state insurance laws.
NOTE 3- CONTRACT CHARGES
a) A mortality and expense risk charge is paid by the Account to Phoenix Home
Life. This charge is based upon the value of each division of the Account
and is currently charged daily at an annual rate of 0.60% .
b) To cover administrative expenses, Phoenix Home Life deducts $5.00 from the
cash value of a policy on each monthly processing date. This charge is
designed to cover actual administrative expenses incurred by Phoenix Home
Life.
c) Phoenix Home Life deducts a charge for the monthly cost of insurance from
the policy's cash value, which provides death benefit protection for the
following policy month.
The monthly cost of insurance is:
i. The cost of insurance rate, multiplied by
ii. The net amount at risk for a policy month.
The cost of insurance varies by sex, attained age and rate class. The net
amount at risk can be simply defined as the death benefit less the cash
value.
5
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 3- CONTRACT CHARGES (Continued)
d) In the event that the policy is surrendered during the first ten policy
years, a surrender charge will be deducted to compensate Phoenix Home Life
for expenses incurred in connection with the promotion, sale and
distribution of the policy. The surrender charge is assessed in full in the
event of a complete surrender and proportionately in the event of a partial
surrender.
During the first two policy years, the surrender charge is subject to
certain sales load limitations imposed by the Securities and Exchange
Commission and, rather than the surrender charge for policy years 3-5, as
set forth below, will be limited to the sum of (i) 30% of all premium
payments made during the first two policy years up to one Guideline Annual
Premium (as defined under Rule 6e-3(T)(c)(8) of the Investment Company Act
of 1940), plus (ii) 10% of all premium payments in the first two policy
years in excess of one Guideline Annual Premium, but not more than two
Guideline Annual premiums plus, (iii) 9% of all premium payments in the
first two policy years in excess of two Guideline Annual Premiums less any
surrender charge previously deducted. Thereafter, the surrender charge is
the lesser of (i) 50% of the cumulative premiums paid, or (ii) the amount
specified in each policy's table of surrender charges.
The amounts shown in each policy's table of surrender charges are
calculated at the beginning of each policy year using the following
percentages of the Target Premium (the annual premium which is required to
endow the policy at age 95 using mortality and expense assumptions and an
annual gross investment return of 8%, and excluding any temporary flat
extras). Beginning policy year six and thereafter, percentages at interim
months are determined by interpolation.
BEGINNING OF
POLICY YEAR PERCENTAGE
----------- ----------
3-6 125%
7 100
8 75
9 50
10 25
11+ 0
6
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 3- CONTRACT CHARGES (Continued)
An increase in the initial death benefit (the "Specified Amount") under a
policy is subject to an additional surrender charge upon a surrender of the
policy during the first ten policy years following the increase. A decrease
in the Specified Amount is also subject to a pro-rata share of the
surrender charge.
In addition, Phoenix Home Life imposes a fee on each partial surrender in
an amount equal to the lesser of $25 or 2% of the amount withdrawn to
reimburse Phoenix Home Life for administrative expenses incurred in
processing those surrenders. This fee is deducted from the amount withdrawn
and the balance is paid to the policyholder.
e) Under certain circumstances, upon surrender of a policy, Phoenix Home Life
will deduct a charge to recover certain policy issue costs in an amount
equal to $5 per $1,000 of surrendered Specified Amount not to exceed $750.
This charge is designed primarily to reimburse Phoenix Home Life for
expenses it incurs in processing policy applications, including conducting
medical examinations and determining insurability.
f) Various states and subdivisions impose a tax on premiums received by
insurance companies. These charges vary from state to state. Phoenix Home
Life deducts 2.50% of each premium payment to cover state premium taxes.
NOTE 4- DIVERSIFICATION REQUIREMENTS
Under the provisions of Section 817(h) of the Internal Revenue Code (the
"Code"), a variable life contract, other than a contract issued in connection
with certain types of employee benefit plans, will not be treated as a 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.
7
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA
<TABLE>
<CAPTION>
For Year Ended December 31,
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
MONEY MARKET:
Net Unit Value:
- ---------------
Beginning of period $14.173465 $13.502832 $13.081135 $12.814296 $12.469961
End of period 14.793740 14.173465 13.502832 13.081135 12.814296
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $0.620275 $0.670633 $0.421697 $0.266839 $0.344335
========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 2,765.451 5,824.154 2,839.094 2,672.627 2,911.451
========== ========== ========== ========== ==========
GROWTH:
Net Unit Value:
- ---------------
Beginning of period $23.579667 $18.784956 $19.837747 $18.510815 $17.677136
End of period 29.319060 23.579667 18.784956 19.837747 18.510815
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $5.739393 $4.794711 ($1.052791) $1.326932 $0.833679
========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 3,253.726 2,053.494 5,066.451 1,872.979 5,521.195
========== ========== ========== ========== ==========
FIXED INCOME:
Net Unit Value:
- ---------------
Beginning of period $17.999228 $15.182949 $15.787620 $14.703844 $13.887392
End of period 18.334574 17.999228 15.182949 15.787620 14.703844
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $0.335346 $2.816279 ($0.604671) $1.083776 $0.816452
========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 38.814 68.947 81.681 106.743 155.242
========== ========== ========== ========== ==========
GOVERNMENT AND QUALITY BOND:
Net Unit Value:
- ---------------
Beginning of period $19.068522 $16.083095 $16.688251 $15.505170 $14.597133
End of period 19.520774 19.068522 16.083095 16.688251 15.505170
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $0.452252 $2.985427 ($0.605156) $1.183081 $0.908037
========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 573.645 625.426 770.430 934.686 1,962.602
========== ========== ========== ========== ==========
</TABLE>
8
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA (Continued)
<TABLE>
<CAPTION>
For Year Ended December 31,
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
HIGH YIELD:
Net Unit Value:
- ---------------
Beginning of period $17.370956 $14.717391 $15.440855 $12.996758 $11.473227
End of period 19.227616 17.370956 14.717391 15.440855 12.996758
---------- ---------- ----------- ---------- ----------
Net increase (decrease) in net unit
value from operations $1.856660 $2.653565 ($0.723464) $2.444097 $1.523531
========== ========== =========== ========== ==========
Accumulation units outstanding:
End of period 499.086 532.392 602.324 639.342 814.352
========== ========== =========== ========== ==========
STRATEGIC MULTI-ASSET:
Net Unit Value:
- ---------------
Beginning of period $20.122448 $16.489482 $17.029956 $14.858722 $14.383597
End of period 22.969725 20.122448 16.489482 17.029956 14.858722
---------- ---------- ----------- ---------- ----------
Net increase (decrease) in net unit
value from operations $2.847277 $3.632966 ($0.540474) $2.171234 $0.475125
========== ========== =========== ========== ==========
Accumulation units outstanding:
End of period 5,120.181 5,379.665 5,131.355 4,911.695 4,884.753
========== ========== =========== ========== ==========
MULTI-ASSET:
Net Unit Value:
- ---------------
Beginning of period $21.162333 $17.035823 $17.434654 $16.343102 $15.200785
End of period 23.952220 21.162333 17.035823 17.434654 16.343102
---------- ---------- ----------- ---------- ----------
Net increase (decrease) in net unit
value from operations $2.789887 $4.126510 ($0.398831) $1.091552 $1.142317
========== ========== =========== ========== ==========
Accumulation units outstanding:
End of period 2,481.475 2,528.003 2,321.993 2,149.708 2,180.269
========== ========== =========== ========== ==========
CAPITAL APPRECIATION:
Net Unit Value:
- ---------------
Beginning of period $31.875450 $23.835567 $24.928405 $20.719304 $16.542880
End of period 39.643903 31.875450 23.835567 24.928405 20.719304
---------- ---------- ----------- ---------- ----------
Net increase (decrease) in net unit
value from operations $7.768453 $8.039883 ($1.092838) $4.209101 $4.176424
========== ========== =========== ========== ==========
Accumulation units outstanding:
End of period 3,513.203 5,335.578 4,074.140 7,054.306 7,245.161
========== ========== =========== ========== ==========
</TABLE>
9
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA (Continued)
<TABLE>
<CAPTION>
For Year Ended December 31,
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
GROWTH and INCOME:
Net Unit Value:
- ---------------
Beginning of period $20.713463 $17.904485 $19.933212 $16.442354 $13.766646
End of period 24.766119 20.713463 17.904485 19.933212 16.442354
----------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $4.052656 $2.808978 ($2.028727) $3.490858 $2.675708
=========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 362.620 396.508 566.021 442.653 840.486
FOREIGN SECURITIES:
Net Unit Value:
- ---------------
Beginning of period $14.558725 $13.009004 $13.498582 $10.419874 $12.109358
End of period 16.124989 14.558725 13.009004 13.498582 10.419874
----------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $1.566264 $1.549721 ($0.489578) $3.078708 ($1.689484)
=========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 2,332.263 2,544.163 5,767.871 3,397.264 738.372
=========== ========== ========== ========== ==========
NATURAL RESOURCES:
Net Unit Value:
- ---------------
Beginning of period $17.188761 $14.721818 $14.640952 $10.829847 $10.635249
End of period 19.494075 17.188761 14.721818 14.640952 10.829847
----------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $2.305314 $2.466943 $0.080866 $3.811105 $0.194598
=========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 1,528.981 1,169.412 789.773 753.350 701.666
=========== ========== ========== ========== ==========
TARGET '98:
Net Unit Value:
- ---------------
Beginning of period $18.440731 $16.184859 $16.981960 $15.352606 $14.410503
End of period 19.007934 18.440731 16.184859 16.981960 15.352606
----------- ---------- ---------- ---------- ----------
Net increase (decrease) in net unit
value from operations $0.567203 $2.255872 ($0.797101) $1.629354 $0.942103
=========== ========== ========== ========== ==========
Accumulation units outstanding:
End of period 209.843 237.588 265.694 292.976 1,410.431
=========== ========== ========== ========== ==========
</TABLE>
10
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 6 - POLICYHOLDER TRANSACTIONS
The increase (decrease) in net assets from changes in the number of outstanding
units was as follows for the year ended December 31, 1996:
<TABLE>
<CAPTION>
PURCHASE PAYMENTS NET EXCHANGE PURCHASES INCREASE (DECREASE)
AND TRANSFERS AND EXCHANGE WITHDRAWALS AND IN NET ASSETS FROM
RECEIVED SURRENDERS SURRENDERS POLICYHOLDER TRANSACTIONS
-------------------------------------------------------------------------------------------------
ACCOUNT UNITS DOLLARS UNITS DOLLARS UNITS DOLLARS UNITS DOLLARS
------- ----- ------- ------ ------- ------ ------- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market 157 $2,282 2,151 $32,430 (5,367) ($79,339) (3,059) ($44,627)
Growth 222 5,736 1,414 37,280 (436) (11,229) 1,200 31,787
Fixed Income - - - - (30) (529) (30) (529)
Government and Quality Bond 23 434 - - (74) (1,397) (51) (963)
High Yield 22 402 (5) (141) (50) (1,151) (33) (890)
Strategic Multi-Asset 438 9,387 (191) (3,965) (507) (10,540) (260) (5,118)
Multi-Asset 199 4,274 31 666 (277) (6,004) (47) (1,064)
Capital Appreciation 359 12,770 (1,802) (68,354) (379) (13,811) (1,822) (69,395)
Growth and Income 158 3,434 (138) (3,117) (54) (1,194) (34) (877)
Foreign Securities 310 4,760 (121) (1,866) (401) (6,268) (212) (3,374)
Natural Resources 65 1,193 420 7,067 (125) (2,344) 360 5,916
Target '98 10 176 - - (37) (691) (27) (515)
-------------------------------------------------------------------------------------------
1,963 $44,848 1,759 $0 (7,737) ($134,497) (4,015) ($89,649)
===========================================================================================
</TABLE>
11
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 7 - DETAILED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1996
A statement of operations by investment division follows for the year ended
December 31, 1996:
<TABLE>
<CAPTION>
Money Fixed Govt.and Strategic
Market Growth Income Quality Bond High Yield Multi-Asset Multi-Asset
------ ------ ------ ------------ ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Dividend income $3,409 $417 $59 $695 $918 $3,424 $1,965
Mortality and expense risk charges
and administrative expense (419) (445) (5) (67) (69) (656) (329)
----------------------------------------------------------------------------------------
Net investment income (loss) 2,990 (28) 54 628 849 2,768 1,636
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS):
Realized gain (loss) from
investment transactions:
Proceeds from sales 276,597 48,192 534 1,362 116,256 14,608 5,708
Cost of investments sold (276,597) (44,643) (553) (1,358) (116,935) (14,415) (5,220)
----------------------------------------------------------------------------------------
Net realized gain (loss) - 3,549 (19) 4 (679) 193 488
Capital gains distribution - 3,760 - 22 - 7,200 3,622
----------------------------------------------------------------------------------------
Net realized gain (loss)
from investments - 7,309 (19) 26 (679) 7,393 4,110
----------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) on investments:
Unrealized appreciation (depreciation)
at end of period - 7,890 (45) (41) 211 3,366 4,924
Unrealized appreciation (depreciation) at
beginning of period - (17) (10) 378 (857) (948) 3,667
----------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) - 7,907 (35) (419) 1,068 4,314 1,257
----------------------------------------------------------------------------------------
Realized and unrealized gain (loss) - 15,216 (54) (393) 389 11,707 5,367
----------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS $2,990 $15,188 $0 $235 $1,238 $14,475 $7,003
========================================================================================
Capital Growth and Foreign Natural
Appreciation Income Securities Resources Target '98 Total
------------ ------ ---------- --------- ---------- -----
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Dividend income $264 $481 $591 $840 $442 $13,505
Mortality and expense risk charges
and administrative expense (1,094) (55) (219) (166) (25) (3,549)
------------------------------------------------------------------------------
Net investment income (loss) (830) 426 372 674 417 9,956
------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS):
Realized gain (loss) from
investment transactions:
Proceeds from sales 280,495 4,242 8,102 79,289 708 836,093
Cost of investments sold (236,760) (4,096) (6,887) (77,191) (721) (785,376)
------------------------------------------------------------------------------
Net realized gain (loss) 43,735 146 1,215 2,098 (13) 50,717
Capital gains distribution 4,597 - - 1,445 - 20,646
------------------------------------------------------------------------------
Net realized gain (loss)
from investments 48,332 146 1,215 3,543 (13) 71,363
------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) on investments:
Unrealized appreciation (depreciation)
at end of period 12,876 689 5,929 1,999 (273) 37,525
Unrealized appreciation (depreciation) at
beginning of period 21,780 (384) 3,574 2,427 8 29,618
------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) (8,904) 1,073 2,355 (428) (281) 7,907
------------------------------------------------------------------------------
Realized and unrealized gain (loss) 39,428 1,219 3,570 3,115 (294) 79,270
------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS $38,598 $1,645 $3,942 $3,789 $123 $89,226
==============================================================================
12
</TABLE>
