[FRONT COVER]
[LOGO] PHOENIX
The Phoenix Edge(SM)
-----------------------------
Annual Reports for:
Phoenix Home Life Variable
Universal Life Account
Phoenix Edge Series Fund
Wanger Advisors Trust
December 31, 1996
-----------------------------
<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
Growth Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Multi-Sector Fixed Income Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Total Return Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
International Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Balanced Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 4
Real Estate Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 5
Strategic Theme Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 5
Wanger International Small Cap Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 5
Wanger U.S. Small Cap Sub-Account
Statement of Assets and Liabilities 2
Statement of Operations 3
Statement of Changes in Net Assets 5
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
Multi-Sector Fixed Income Series
Schedule of Investments 2-12
Statement of Assets and Liabilities 2-15
Statement of Operations 2-15
Statement of Changes in Net Assets 2-16
Financial Highlights 2-16
Total Return Series
Schedule of Investments 2-18
Statement of Assets and Liabilities 2-22
Statement of Operations 2-22
Statement of Changes in Net Assets 2-23
Financial Highlights 2-23
International Series
Schedule of Investments 2-25
Statement of Assets and Liabilities 2-28
Statement of Operations 2-28
Statement of Changes in Net Assets 2-29
Financial Highlights 2-29
Balanced Series
Schedule of Investments 2-31
Statement of Assets and Liabilities 2-35
Statement of Operations 2-35
Statement of Changes in Net Assets 2-36
Financial Highlights 2-36
Real Estate Series
Schedule of Investments 2-38
Statement of Assets and Liabilities 2-40
Statement of Operations 2-40
Statement of Changes in Net Assets 2-41
Financial Highlights 2-41
Strategic Theme Series
Schedule of Investments 2-43
Statement of Assets and Liabilities 2-45
Statement of Operations 2-45
Statement of Changes in Net Assets 2-46
Financial Highlights 2-46
Aberdeen New Asia Series
Schedule of Investments 2-48
Statement of Assets and Liabilities 2-50
Statement of Operations 2-50
Statement of Changes in Net Assets 2-51
Financial Highlights 2-51
Notes to Financial Statements 2-52
</TABLE>
WANGER ADVISORS TRUST
<TABLE>
<CAPTION>
<S> <C>
Wanger International Small Cap Advisor
Schedule of Investments 3-12
Statement of Assets and Liabilities 3-17
Statement of Operations 3-18
Statement of Changes in Net Assets 3-19
Financial Highlights 3-21
Notes to Financial Statements 3-22
Wanger U.S. Small Cap Advisor
Schedule of Investments 3-8
Statement of Assets and Liabilities 3-17
Statement of Operations 3-18
Statement of Changes in Net Assets 3-19
Financial Highlights 3-20
Notes to Financial Statements 3-22
</TABLE>
<PAGE>
This annual report for the Phoenix Home
Life Variable Universal Life Account for the
year ended December 31, 1996, contains the
financial statements for the Account's single
premium 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 and the
Wanger Advisors Trust.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
<TABLE>
<CAPTION>
Multi-Sector
Money Market Growth Fixed Income
Sub-Account Sub-Account Sub-Account
-------------- -------------- --------------
<S> <C> <C> <C>
Assets
Investments at cost $ 978,519 $22,876,322 $3,149,790
========= ========= =========
Investment in The Phoenix Edge Series Fund, at market $ 978,519 $28,350,034 $3,331,209
--------- --------- ---------
Total assets 978,519 28,350,034 3,331,209
Liabilities
Accrued expenses to related party 416 12,178 1,411
--------- --------- ---------
Net assets $ 978,103 $28,337,856 $3,329,798
========= ========= =========
Accumulation units outstanding 587,306 7,871,230 1,433,300
========= ========= =========
Unit value $1.665406 $ 3.600181 $ 2.323169
========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
-------------- --------------- --------------
<S> <C> <C> <C>
Assets
Investments at cost $14,349,994 $ 982,452 $ 325,164
========= ========= =========
Investment in The Phoenix Edge Series Fund, at market $15,266,717 $1,367,812 $ 366,385
--------- --------- ---------
Total assets 15,266,717 1,367,812 366,385
Liabilities
Accrued expenses to related party 6,530 568 155
--------- --------- ---------
Net assets $15,260,187 $1,367,244 $ 366,230
========= ========= =========
Accumulation units outstanding 6,343,059 821,781 239,440
========= ========= =========
Unit value $ 2.405809 $ 1.663758 $1.529526
========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
Real Estate Strategic Theme
Sub-Account Sub-Account
-------------- ---------------
<S> <C> <C>
Assets
Investments at cost $ 10,206 $ 206,975
========= =========
Investment in The Phoenix Edge Series Fund, at market $ 12,454 $ 208,893
--------- ---------
Total assets 12,454 208,893
Liabilities
Accrued expenses to related party 5 90
--------- ---------
Net assets $ 12,449 $ 208,803
========= =========
Accumulation units outstanding 9,514 208,296
========= =========
Unit value $1.308395 $1.002434
========= =========
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
Wanger Wanger
International U.S.
Small Cap Small Cap
Sub-Account Sub-Account
--------------- ---------------
Assets
Investments at cost $ 9,941 $ 15,188
========= =========
Investment in Wanger Advisors Trust, at market $ 10,200 $ 15,517
--------- ---------
Total assets 10,200 15,517
Liabilities
Accrued expenses to related party 2 2
--------- ---------
Net assets $ 10,198 $ 15,515
========= =========
Accumulation units outstanding 9,941 15,188
========= =========
Unit value $1.025920 $1.021523
========= =========
</TABLE>
See Notes to Financial Statements
2
<PAGE>
STATEMENT OF OPERATIONS
For the period ended December 31, 1996
<TABLE>
<CAPTION>
Multi-Sector
Money Market Growth Fixed Income
Sub-Account Sub-Account Sub-Account
-------------- -------------- --------------
<S> <C> <C> <C>
Investment income
Distributions $40,562 $ 258,317 $235,922
Expenses
Mortality and expense risk charges 4,141 134,420 15,953
-------- -------- --------
Net investment income 36,421 123,897 219,969
-------- -------- --------
Net realized gain (loss) from share transactions -- 9,313 (1,910)
Net realized gain distribution from Fund -- 1,896,575 98,546
Net unrealized appreciation on investment -- 1,035,122 33,342
-------- -------- --------
Net gain on investments -- 2,941,010 129,978
-------- -------- --------
Net increase in net assets resulting from operations $36,421 $3,064,907 $349,947
======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
-------------- --------------- --------------
<S> <C> <C> <C>
Investment income $
Distributions 324,203 $ 19,608 $ 9,521
Expenses
Mortality and expense risk charges 74,618 6,589 1,696
-------- -------- --------
Net investment income 249,585 13,019 7,825
-------- -------- --------
Net realized gain from share transactions 8,732 5,574 2,781
Net realized gain distribution from Fund 948,107 30,399 31,838
Net unrealized appreciation (depreciation) on
investment 9,110 165,636 (10,943)
-------- -------- --------
Net gain on investments 965,949 201,609 23,676
-------- -------- --------
Net increase in net assets resulting from operations $1,215,534 $214,628 $ 31,501
======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Real Estate Strategic Theme
Sub-Account(1) Sub-Account(1)
--------------- ---------------
<S> <C> <C>
Investment income
Distributions $ 161 $ 866
Expenses
Mortality and expense risk charges 24 559
-------- --------
Net investment income 137 307
-------- --------
Net realized gain from share transactions 3 1,731
Net realized gain distribution from Fund 132 --
Net unrealized appreciation on investment 2,248 1,918
-------- --------
Net gain on investments 2,383 3,649
-------- --------
Net increase in net assets resulting from operations $2,520 $3,956
======== ========
</TABLE>
<TABLE>
<CAPTION>
Wanger Wanger
International U.S.
Small Cap Small Cap
Sub-Account(2) Sub-Account(2)
--------------- ---------------
<S> <C> <C>
Investment income
Distributions $ -- $ --
Expenses
Mortality and expense risk charges 2 2
------ ------
Net investment loss (2) (2)
------ ------
Net unrealized appreciation on investment 259 329
------ ------
Net gain on investments 259 329
------ ------
Net increase in net assets resulting from operations $257 $327
====== ======
</TABLE>
(1) From inception May 1, 1996 to December 31, 1996
(2) From inception December 19, 1996 to December 31, 1996
See Notes to Financial Statements
3
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the period ended December 31, 1996
<TABLE>
<CAPTION>
Multi-Sector
Money Market Growth Fixed Income
Sub-Account Sub-Account Sub-Account
-------------- -------------- --------------
<S> <C> <C> <C>
From operations
Net investment income $ 36,421 $ 123,897 $ 219,969
Net realized gain -- 1,905,888 96,636
Net unrealized appreciation -- 1,035,122 33,342
----------- ----------- -----------
Net increase in net assets resulting from
operations 36,421 3,064,907 349,947
----------- ----------- -----------
From accumulation unit transactions
Participant deposits 634,438 452,681 14,305
Participant transfers (1,421,417) 969,934 199,755
Participant withdrawals (40,436) (760,557) (79,930)
----------- ----------- -----------
Net increase (decrease) in net assets resulting
from participant transactions (827,415) 662,058 134,130
----------- ----------- -----------
Net increase (decrease) in net assets (790,994) 3,726,965 484,077
Net assets
Beginning of period 1,769,097 24,610,891 2,845,721
----------- ----------- -----------
End of period $ 978,103 $28,337,856 $3,329,798
=========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
-------------- --------------- --------------
<S> <C> <C> <C>
From operations
Net investment income $ 249,585 $ 13,019 $ 7,825
Net realized gain 956,839 35,973 34,619
Net unrealized appreciation (depreciation) 9,110 165,636 (10,943)
----------- ----------- -----------
Net increase in net assets resulting from
operations 1,215,534 214,628 31,501
----------- ----------- -----------
From accumulation unit transactions
Participant deposits 86,027 10,839 3,413
Participant transfers (186,193) 183,042 (1,861)
Participant withdrawals (514,891) (190,854) (20,610)
----------- ----------- -----------
Net increase (decrease) in net assets resulting
from participant transactions (615,057) 3,027 (19,058)
----------- ----------- -----------
Net increase in net assets 600,477 217,655 12,443
Net assets
Beginning of period 14,659,710 1,149,589 353,787
----------- ----------- -----------
End of period $15,260,187 $1,367,244 $366,230
=========== =========== ===========
</TABLE>
See Notes to Financial Statements
4
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the period ended December 31, 1996
(Continued)
<TABLE>
<CAPTION>
Real Estate Strategic Theme
Sub-Account(1) Sub-Account(1)
--------------- ---------------
<S> <C> <C>
From operations
Net investment income $ 137 $ 307
Net realized gain 135 1,731
Net unrealized appreciation 2,248 1,918
----------- -----------
Net increase in net assets resulting from
operations 2,520 3,956
----------- -----------
From accumulation unit transactions
Participant deposits 7,496 14,491
Participant transfers 2,604 231,488
Participant withdrawals (171) (41,132)
----------- -----------
Net increase in net assets resulting from
participant transactions 9,929 204,847
----------- -----------
Net increase in net assets 12,449 208,803
Net assets
Beginning of period -- --
----------- -----------
End of period $12,449 $208,803
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
Wanger Wanger
International U.S.
Small Cap Small Cap
Sub-Account(2) Sub-Account(2)
--------------- ---------------
<S> <C> <C>
From operations
Net investment loss $ (2) $ (2)
Net unrealized appreciation 259 329
----------- -----------
Net increase in net assets resulting from
operations 257 327
----------- -----------
From accumulation unit transactions
Participant deposits -- --
Participant transfers 9,941 15,188
Participant withdrawals -- --
----------- -----------
Net increase in net assets resulting from
participant transactions 9,941 15,188
----------- -----------
Net increase in net assets 10,198 15,515
Net assets
Beginning of period -- --
----------- -----------
End of period $10,198 $15,515
=========== ===========
</TABLE>
(1) From inception May 1, 1996 to December 31, 1996
(2) From inception December 19, 1996 to December 31, 1996
See Notes to Financial Statements
5
<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 $ 33,362 $ 131,601 $ 186,204
Net realized gain -- 2,619,811 1,620
Net unrealized appreciation -- 2,956,232 301,487
----------- ----------- -----------
Net increase in net assets resulting from
operations 33,362 5,707,644 489,311
----------- ----------- -----------
From accumulation unit transactions
Participant deposits 2,512,707 201,627 14,324
Participant transfers (1,044,988) 545,333 836,912
Participant withdrawals (360,811) (575,241) (76,771)
----------- ----------- -----------
Net increase in net assets resulting from
participant transactions 1,106,908 171,719 774,465
----------- ----------- -----------
Net increase in net assets 1,140,270 5,879,363 1,263,776
Net assets
Beginning of period 628,827 18,731,528 1,581,945
----------- ----------- -----------
End of period $ 1,769,097 $24,610,891 $2,845,721
=========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Total Return International Balanced
Sub-Account Sub-Account Sub-Account
-------------- --------------- --------------
<S> <C> <C> <C>
From operations
Net investment income (loss) $ 378,640 $ (2,042) $ 9,911
Net realized gain 898,722 123 7,172
Net unrealized appreciation 935,547 97,577 50,815
----------- ----------- -----------
Net increase in net assets resulting from
operations 2,212,909 95,658 67,898
----------- ----------- -----------
From accumulation unit transactions
Participant deposits 176,526 25,671 82
Participant transfers (140,439) (274,219) (19,445)
Participant withdrawals (479,778) (94,246) (17,165)
----------- ----------- -----------
Net decrease in net assets resulting from
participant transactions (443,691) (342,794) (36,528)
----------- ----------- -----------
Net increase (decrease) in net assets 1,769,218 (247,136) 31,370
Net assets
Beginning of period 12,890,492 1,396,725 322,417
----------- ----------- -----------
End of period $14,659,710 $1,149,589 $353,787
=========== =========== ===========
</TABLE>
See Notes to Financial Statements
6
<PAGE>
PHOENIX HOME LIFE VARIABLE UNIVERSAL LIFE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
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). The Account is registered as a unit investment trust under the
Investment Company Act of 1940, as amended. Policies offered by the Account
have a death benefit, cash surrender value and loan privileges. The account
was established January 1, 1987 and currently consists of ten Sub-Accounts,
each of which invest in a corresponding series of The Phoenix Edge Series
Fund and Wanger Advisors Trust ("the Funds").
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 Multi-Sector Fixed Income (formerly Bond) Series is a long-term debt
fund, the Total Return Series invests in equity securities and long and
short-term debt, the International Series invests primarily in an
internationally diversified portfolio of equity securities, and the Balanced
Series is a balanced fund which invests in growth stocks and at least 25% of
its assets in fixed income senior securities. The Real Estate Series invests
in marketable securities of publicly traded real estate investment trusts
("REITs") and companies that are principally engaged in the real estate
industry, the Strategic Theme Series invests in securities of companies
believed to benefit from specific trends, the Wanger International Small Cap
Series invests in securities of non-U.S. companies with a stock market
capitalization of less than $1 billion and 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. Additionally, policyowners may also
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 or state income taxes is required.
D. Distributions: Distributions are recorded as investment income on the
ex-dividend date.
Note 3--Purchases and Sales of Shares of the Funds
Purchases and sales of shares of the Funds for the period ended December 31,
1996 aggregated the following:
<TABLE>
<CAPTION>
Sub-Account Purchases Sales
------------------------------- ------------ -------------
<S> <C> <C>
The Phoenix Edge Series Fund:
Money Market $ 887,185 $1,677,926
Growth 3,766,336 1,081,280
Multi-Sector Fixed Income 715,251 262,345
Total Return 1,287,385 703,996
International 270,695 224,139
Balanced 83,970 63,349
Real Estate 10,383 180
Strategic Theme 240,043 34,799
Wanger Advisors Trust:
International Small Cap 9,941 --
U.S. Small Cap 15,188 --
</TABLE>
Note 4--Participant Accumulation Unit Transactions (in units)
<TABLE>
<CAPTION>
Sub-Account
-----------------------------------------------------------------------
Money Multi-Sector Total
Market Growth Fixed Income Return International
----------- ----------- -------------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Units outstanding, beginning of
period 1,110,073 7,657,646 1,370,166 6,611,709 815,737
Participant deposits 389,078 135,971 6,619 37,637 6,899
Participant transfers (886,759) 302,948 93,835 (82,219) 120,652
Participant withdrawals (25,086) (225,335) (37,320) (224,068) (121,507)
----------- ----------- ----------- ----------- -----------
Units outstanding, end of period 587,306 7,871,230 1,433,300 6,343,059 821,781
=========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Sub-Account
--------------------------------------------------------------------
Real Strategic Wanger International Wanger U.S.
Balanced Estate Theme Small Cap Small Cap
----------- -------- ----------- -------------------- -------------
<S> <C> <C> <C> <C> <C>
Units outstanding, beginning of
period 254,460 -- -- -- --
Participant deposits 2,386 7,241 14,840 -- --
Participant transfers (2,953) 2,434 235,391 9,941 15,188
Participant withdrawals (14,453) (161) (41,935) -- --
------- ----- ------- ----- ------
Units outstanding, end of period 239,440 9,514 208,296 9,941 15,188
======= ===== ======= ===== ======
</TABLE>
7
<PAGE>
PHOENIX HOME LIFE VARIABLE UNIVERSAL LIFE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
Note 5--Policy Loans
Transfers are made to Phoenix's general account as a result of policy loans.
Policy provisions allow policyowners to borrow up to 75% of a policy's cash
value during the first three policy years and up to 90% of cash value
thereafter, with interest of 8% 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'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 7.25%. Loan repayments result in a
transfer of collateral back to the Account.
Note 6--Investment Advisory Fees and Related Party Transactions
Phoenix and its indirect, majority owned subsidiary, Phoenix Equity Planning
Corporation, a registered broker/dealer in securities, provide all services
to the Account.
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 $434,754 during the period ended December 31, 1996.
Upon partial surrender of a policy, a surrender fee of the lesser of $25 or
2% of the partial surrender amount paid and a fraction of the balance of any
unpaid acquisition expense allowance is deducted from the policy value and
paid to Phoenix.
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.
An acquisition expense allowance is paid to Phoenix over a ten year period
from contract inception by a withdrawal of units. The acquisition expense
allowance consists of a sales load of 5.5% of the issue premium to compensate
Phoenix for distribution expenses incurred, an issue administration charge of
1.0% of the issue premium to compensate Phoenix for underwriting and start-up
expenses and premium taxes which currently range from 0.75% to 4% of premiums
paid based on the state where the policyowner resides. In the event of a
surrender before ten years, the unpaid balance of the acquisition expense
allowance is deducted and paid to Phoenix.
Phoenix assumes the mortality 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. The expense risk assumed is that expenses incurred
in issuing the policies may exceed the limits on administrative charges set
in the policies. In return for the assumption of these mortality and expense
risks, Phoenix charges the Account an annual rate of 0.50% 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 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
[LOGOTYPE] Price Waterhouse LLP [LOGO]
To the Board of Directors of Phoenix Home Life Mutual Insurance Company and
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, Multi-Sector Fixed Income Sub-Account
(formerly the Bond Sub-Account), Total Return Sub-Account, International
Sub-Account, Balanced Sub-Account, Real Estate Sub-Account, Strategic Theme
Sub-Account, Wanger International Small Cap Sub-Account and Wanger U.S. Small
Cap Sub-Account (constituting the Phoenix Home Life Variable Universal Life
Account, hereafter referred to as the "Account") at December 31, 1996, the
results of each of their operations for the periods 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 which included
confirmation of investments at December 31, 1996 by correspondence with the
Funds, provide a reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
Hartford, Connecticut
February 12, 1997
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
Custodians
The Chase Manhattan Bank, N.A.
1 Chase Manhattan Plaza
Floor 3B
New York, New York 10081
Brown Brothers Harriman & Co.
(International Series)
40 Water Street
Boston, Massachusetts 02109
State Street Bank and Trust
(Real Estate Series)
P.O. Box 351
Boston, Massachusetts 02101
Independent Accountants
Price Waterhouse LLP
One Financial Plaza
Hartford, Connecticut 06103
10
<PAGE>
[BACK COVER]
[LOGO] PHOENIX
Phoenix Home Life Mutual Insurance Company
101 Munson Street
Greenfield, MA 01301
OL 1273 (2/97) [recycle logo] Printed on Recycled Paper.
(c)1997 Phoenix Home Life Mutual Insurance Company
