2001 Phoenix Wealth Management Survey Shows High Net Worth Remain On Course Despite Volatile Markets; Economic Optimism Prevails Before and After September 11.

Business Editors

HARTFORD, Conn.--(BUSINESS WIRE)--Oct. 30, 2001

Despite this year's market volatility and the September 11 terrorist attacks, the 2001 Phoenix Wealth Management Survey shows 69 percent of America's high net worth remain optimistic about the future of the economy. Concerning their finances, 77 percent report they are comfortable with their current investment selections. However, nearly a quarter intend to rely more on professional advisors than they did a year ago.

The annual survey, commissioned by The Phoenix Companies, Inc. (NYSE:PNX) and conducted by Harris Interactive, was completed in June. A follow-up survey was conducted in September, after the market declined following terrorist events, to gauge any changes in the respondents' attitudes and actions.

"We weren't surprised our data show America's high net worth are generally optimistic and, for the most part, confident concerning their financial portfolio," said Dona D. Young, Phoenix president and chief operating officer.

"Phoenix stakes its reputation on understanding the attitudes of the high net worth better than anyone else. We know they value a long-term perspective, and we know why they would turn to professional advisors to help navigate this uncertain economy. Phoenix will use all of this data to support our advisors and distribution partners with tailored products and services thatmeet the changing needs of their clients," added Young.

Top Line Summary - Impact of September 11 Events

Optimism Prevails

Overall, optimism towards the future of the nation's economy remains steady and relatively high -- 69 percent in September versus 68 percent in June. With further probing of how the high net worth feel about the future of the economy, their responses still show a positive outlook post September 11:

--fifty-two percent say the worst is over, but we will come out of it slowly;

--thirty-two percent say the worst is yet to come and then we will come out of it;

--nine percent say the worst is over and we are already coming out of it;

--five percent feel we will remain in an economic downturn; and

--two percent have no opinion.

Staying the Course with Current Investment Selections

Over three-quarters of the high net worth are maintaining their existing investment portfolio even in light of market volatility -- 77 percent in September versus 65 percent in June. Five percent of the respondents in both June and September plan to re-allocate for increased risk. Among the remaining respondents, those in September are less likely to re-allocate their investments for decreased risk -- 18 percent in September versus 30 percent in June.

Turning to Professional Advisors

In June, over half the respondents did not see an increased need to rely on professional advisors for financial guidance, despite market volatility during the past year. However, after September 11, eight percent shifted their thinking and are now more likely to rely on professional advisors - - 24 percent in September versus 16 percent in June. Nearly a third will continue to rely on their own knowledge and feelings when it comes to financial planning.

Remaining Financially Comfortable

Overall, the high net worth continue to feel financially comfortable - - 93 percent in September versus 94 percent in June. Again, however, there is a shift in comfort level after September 11, with 34 percent feeling "extremely" or "very" comfortable in September versus 43 percent in June.

Little Change In Spending Habits

More than 60 percent of the high net worth both before and after September 11 report no change in their spending habits due to past year market volatility. A significant number of respondents, however, are conservative about their spending and have become even more so post September 11. Many say they are holding back or delaying buying big-ticket items such as an expensive vacation or major home improvement - - 28 percent in September versus 19 percent in June. In addition, many report they are spending less than a year ago on extras or small luxuries such as dining and clothes purchases - - 27 percent in September versus 21 percent in June.

The annual 2001 Phoenix Wealth Management Survey conducted in June consisted of more than 1,000 on-line interviews of individuals with a household net worth of $1 million or more, minus any debt and exclusive of primary residence. The follow-up survey, conducted September 26-October 3, consisted of a sampling of the original individuals interviewed for the June survey.

The Phoenix Companies, Inc. (NYSE:PNX) is a leading provider of wealth management products and services to individuals and institutions. Through a variety of advisors and financial services firms, Phoenix helps the affluent and high net worth accumulate, preserve and transfer their wealth with an innovative portfolio of life insurance, annuity and investment management products and services. With a history dating to 1851, The Phoenix Companies, Inc. has two principal operating subsidiaries, Phoenix Life Insurance Company and Phoenix Investment Partners, Ltd., and offers trust services through another subsidiary, Phoenix Charter Oak Trust Company. Phoenix has corporate offices in Hartford, Conn. For more information on Phoenix, visit www.phoenixwm.com.