<PAGE>
June 30, 1999
PHOENIX
FUNDS
SEMIANNUAL REPORT
PHOENIX DUFF & PHELPS
INSTITUTIONAL MUTUAL
FUNDS
- CORE EQUITY PORTFOLIO
- GROWTH STOCK PORTFOLIO
- REAL ESTATE EQUITY
SECURITIES PORTFOLIO
- MANAGED BOND PORTFOLIO
- ENHANCED RESERVES
PORTFOLIO
[LOGO] PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
We are pleased to provide this semiannual financial summary for the Phoenix
Duff & Phelps Institutional Mutual Funds for the six months ended June 30, 1999.
If you have any questions, please call a client service representative at
1-800-814-1897.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
JUNE 30, 1999
Mutual funds are not insured by the FDIC; are not
deposits or other obligations of a bank and are not
guaranteed by a bank; and are subject to
investment risks, including possible loss of the
principal invested.
1
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Phoenix Duff & Phelps Institutional Core Equity Portfolio................. 3
Phoenix Duff & Phelps Institutional Growth Stock Portfolio................ 8
Phoenix Duff & Phelps Institutional Real Estate Equity Securities
Portfolio................................................................. 13
Phoenix Duff & Phelps Institutional Managed Bond Portfolio................ 18
Phoenix Duff & Phelps Institutional Enhanced Reserves Portfolio........... 26
Notes to Financial Statements............................................. 31
</TABLE>
2
<PAGE>
Phoenix Duff & Phelps Institutional Core Equity Portfolio
INVESTMENTS AT JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- -------------
<S> <C> <C> <C>
COMMON STOCKS--99.6%
BANKS (MAJOR REGIONAL)--1.9%
Wells Fargo Co.......................... 5,300 $ 226,575
BANKS (REGIONAL)--1.6%
Bank of America Corp.................... 2,600 190,612
BEVERAGES (NON-ALCOHOLIC)--2.2%
PepsiCo, Inc............................ 6,625 256,305
BUILDING MATERIALS--2.8%
Masco Corp.............................. 11,300 326,287
CHEMICALS (DIVERSIFIED)--1.5%
Monsanto Co............................. 4,450 175,497
COMMUNICATIONS EQUIPMENT--2.4%
Lucent Technologies, Inc................ 4,250 286,609
COMPUTERS (HARDWARE)--7.4%
International Business Machines Corp.... 3,950 510,537
Sun Microsystems, Inc.(b)............... 5,200 358,150
-------------
868,687
-------------
COMPUTERS (NETWORKING)--3.1%
Cisco Systems, Inc.(b).................. 5,574 359,523
COMPUTERS (PERIPHERALS)--1.9%
EMC Corp.(b)............................ 4,100 225,500
CONSUMER FINANCE--1.6%
Providian Financial Corp................ 2,000 187,000
ELECTRIC COMPANIES--2.8%
Duke Energy Corp........................ 3,925 213,422
FPL Group, Inc.......................... 2,150 117,444
-------------
330,866
-------------
ELECTRICAL EQUIPMENT--4.6%
Emerson Electric Co..................... 5,750 361,531
General Electric Co..................... 1,525 172,325
-------------
533,856
-------------
FINANCIAL (DIVERSIFIED)--4.2%
CIT Group, Inc. (The)................... 8,700 251,213
<CAPTION>
SHARES VALUE
-------- -------------
<S> <C> <C> <C>
FINANCIAL (DIVERSIFIED)--CONTINUED
Fannie Mae.............................. 3,600 $ 246,150
-------------
497,363
-------------
HEALTH CARE (DIVERSIFIED)--5.1%
Abbott Laboratories..................... 2,300 104,650
American Home Products Corp............. 4,500 258,750
Warner-Lambert Co....................... 3,300 228,938
-------------
592,338
-------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--2.0%
Schering-Plough Corp.................... 4,400 233,200
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--3.0%
Medtronic, Inc.......................... 4,525 352,384
HOUSEHOLD FURNISHINGS & APPLIANCES--2.5%
Maytag Corp............................. 4,150 289,203
HOUSEHOLD PRODUCTS (NON-DURABLE)--2.6%
Clorox Co. (The)........................ 1,050 112,153
Procter & Gamble Co. (The).............. 2,200 196,350
-------------
308,503
-------------
INSURANCE (MULTI-LINE)--1.8%
Hartford Financial Services Group, Inc.
(The)................................... 3,675 214,298
INSURANCE (PROPERTY-CASUALTY)--6.6%
Allstate Corp. (The).................... 8,475 304,041
MGIC Investment Corp.................... 9,600 466,800
-------------
770,841
-------------
INSURANCE BROKERS--2.7%
Marsh & McLennan Companies, Inc......... 4,250 320,875
MANUFACTURING (DIVERSIFIED)--3.2%
Tyco International Ltd.................. 4,000 379,000
OFFICE EQUIPMENT & SUPPLIES--2.6%
Pitney Bowes, Inc....................... 4,650 298,763
OIL (DOMESTIC INTEGRATED)--1.3%
Unocal Corp............................. 3,700 146,613
OIL (INTERNATIONAL INTEGRATED)--4.3%
Conoco, Inc. Class A.................... 12,500 348,438
</TABLE>
See Notes to Financial Statements 3
<PAGE>
Phoenix Duff & Phelps Institutional Core Equity Portfolio
<TABLE>
<CAPTION>
SHARES VALUE
-------- -------------
<S> <C> <C> <C>
OIL (INTERNATIONAL INTEGRATED)--CONTINUED
Mobil Corp.............................. 1,525 $ 150,975
-------------
499,413
-------------
PERSONAL CARE--2.1%
Avon Products, Inc...................... 4,350 241,425
RESTAURANTS--2.5%
McDonald's Corp......................... 7,150 295,384
RETAIL (DRUG STORES)--3.1%
CVS Corp................................ 7,000 357,875
RETAIL (FOOD CHAINS)--1.9%
Albertson's, Inc........................ 4,425 228,164
RETAIL (GENERAL MERCHANDISE)--4.0%
Dayton Hudson Corp...................... 7,125 463,125
SAVINGS & LOAN COMPANIES--2.2%
Washington Mutual, Inc.................. 7,425 262,659
SERVICES (ADVERTISING/MARKETING)--2.5%
Omnicom Group, Inc...................... 3,700 296,000
SERVICES (DATA PROCESSING)--2.5%
First Data Corp......................... 6,075 297,295
TELEPHONE--3.1%
Bell Atlantic Corp...................... 2,400 156,900
<CAPTION>
SHARES VALUE
-------- -------------
<S> <C> <C> <C>
TELEPHONE--CONTINUED
GTE Corp................................ 2,750 $ 208,313
-------------
365,213
-------------
- -----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $9,979,116) 11,677,251
- -----------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--99.6%
(IDENTIFIED COST $9,979,116) 11,677,251
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--0.8%
MONEY MARKET MUTUAL FUNDS--0.8%
State Street Global Advisors Seven Seas
Money Market Fund (4.871% seven day
effective yield)........................ 87,549 87,549
- -----------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $87,549) 87,549
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--100.4%
(IDENTIFIED COST $10,066,665) 11,764,800(a)
Cash and receivables, less liabilities--(0.4%) (45,709)
-------------
NET ASSETS--100.0% $ 11,719,091
-------------
-------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $2,021,766 and gross
depreciation of $385,667 for federal income tax purposes. At June 30, 1999,
the aggregate cost of securities for federal income tax purposes was
$10,128,701.
(b) Non-income producing.
4 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Core Equity Portfolio
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $10,066,665) $ 11,764,800
Cash 895
Receivables
Dividends and interest 5,280
Receivable from adviser 44,424
Prepaid expenses 221
--------------
Total assets 11,815,620
--------------
LIABILITIES
Payables
Investment securities purchased 15,774
Transfer agent fee 9,677
Financial agent fee 1,938
Trustees' fee 469
Distribution fee 31
Accrued expenses 68,640
--------------
Total liabilities 96,529
--------------
NET ASSETS $ 11,719,091
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 10,214,718
Undistributed net investment income 19,248
Accumulated net realized loss (213,010)
Net unrealized appreciation 1,698,135
--------------
NET ASSETS $ 11,719,091
--------------
--------------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $11,608,372) 1,053,887
Net asset value and offering price per share $11.01
CLASS Y
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $110,719) 10,073
Net asset value and offering price per share $10.99
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 62,684
Interest 3,307
-------------
Total investment income 65,991
-------------
EXPENSES
Investment advisory fee 27,737
Distribution fee, Class Y 131
Financial agent fee 17,065
Transfer agent 19,119
Registration 31,148
Printing 13,841
Professional 11,519
Trustees 9,469
Custodian 4,167
Miscellaneous 5,493
-------------
Total expenses 139,689
Less expenses borne by investment adviser (103,501)
-------------
Net expenses 36,188
-------------
NET INVESTMENT INCOME 29,803
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 510,960
Net change in unrealized appreciation (depreciation) on
investments 308,066
-------------
NET GAIN ON INVESTMENTS 819,026
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 848,829
-------------
-------------
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix Duff & Phelps Institutional Core Equity Portfolio
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended From Inception
6/30/99 4/14/98 to
(Unaudited) 12/31/98
------------ ---------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 29,803 $ 25,753
Net realized gain (loss) 510,960 (723,970)
Net change in unrealized appreciation
(depreciation) 308,066 1,390,069
------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 848,829 691,852
------------ ---------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class X (10,524) (25,531)
Net investment income, Class Y (71) (222)
In excess of net investment income,
Class X -- (43,528)
In excess of net investment income,
Class Y -- (378)
------------ ---------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (10,595) (69,659)
------------ ---------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (4,210
and 1,046,343 shares, respectively) 44,859 10,081,583
Net asset value of shares issued from
reinvestment of distributions (939
and 6,899 shares, respectively) 10,102 69,058
Cost of shares repurchased (4,504 and
0 shares, respectively) (47,676) --
------------ ---------------
Total 7,285 10,150,641
------------ ---------------
CLASS Y
Proceeds from sales of shares (0 and
10,007 shares, respectively) -- 100,071
Net asset value of shares issued from
reinvestment of distributions (6 and
60 shares, respectively) 67 600
------------ ---------------
Total 67 100,671
------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 7,352 10,251,312
------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS 845,586 10,873,505
------------ ---------------
NET ASSETS
Beginning of period 10,873,505 --
------------ ---------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$19,248 AND $40, RESPECTIVELY] $ 11,719,091 $ 10,873,505
------------ ---------------
------------ ---------------
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Core Equity Portfolio
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS X
-------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/99 4/14/98 TO
(UNAUDITED) 12/31/98
<S> <C> <C>
Net asset value, beginning of period $10.23 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.03(1) 0.04(1)(5)
Net realized and unrealized gain
(loss) 0.76 0.26
------ ----------
TOTAL FROM INVESTMENT OPERATIONS 0.79 0.30
------ ----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.01) (0.03)
Dividends from net realized gains -- --
In excess of net investment income -- (0.04)
------ ----------
TOTAL DISTRIBUTIONS (0.01) (0.07)
------ ----------
Change in net asset value 0.78 0.23
------ ----------
NET ASSET VALUE, END OF PERIOD $11.01 $10.23
------ ----------
------ ----------
Total return 7.72%(4) 2.97%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $11,608 $10,771
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.65%(3) 0.65%(3)
Net investment income 0.54%(3) 0.56%(3)
Portfolio turnover 36%(4) 52%(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS Y
-------------------------
SIX MONTHS FROM
ENDED INCEPTION
6/30/99 4/14/98 TO
(UNAUDITED) 12/31/98
<S> <C> <C>
Net asset value, beginning of period $10.21 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.02(2) 0.02(2)(5)
Net realized and unrealized gain
(loss) 0.77 0.25
------ ----------
TOTAL FROM INVESTMENT OPERATIONS 0.79 0.27
------ ----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.01) (0.02)
Dividends from net realized gains -- --
In excess of net investment income -- (0.04)
------ ----------
TOTAL DISTRIBUTIONS (0.01) (0.06)
------ ----------
Change in net asset value 0.78 0.21
------ ----------
NET ASSET VALUE, END OF PERIOD $10.99 $10.21
------ ----------
------ ----------
Total return 7.71%(4) 2.71%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $111 $103
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.90%(3) 0.90%(3)
Net investment income 0.29%(3) 0.37%(3)
Portfolio turnover 36%(4) 52%(4)
</TABLE>
(1) Includes reimbursement of operating expenses by investment adviser of $0.10
and $0.26, respectively.
(2) Includes reimbursement of operating expenses by investment adviser of $0.10
and $0.26, respectively.
(3) Annualized.
(4) Not annualized.
(5) Computed using average shares outstanding.
See Notes to Financial Statements 7
<PAGE>
Phoenix Duff & Phelps Institutional Growth Stock Portfolio
INVESTMENTS AT JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
COMMON STOCKS--91.8%
ALUMINUM--3.0%
Alcoa, Inc.............................. 33,340 $ 2,062,912
BANKS (MAJOR REGIONAL)--0.8%
Mellon Bank Corp........................ 14,000 509,250
BEVERAGES (NON-ALCOHOLIC)--2.8%
Coca-Cola Co. (The)..................... 30,000 1,875,000
BROADCASTING (TELEVISION, RADIO & CABLE)--2.6%
Chancellor Media Corp.(b)............... 31,700 1,747,462
CHEMICALS--2.8%
Dow Chemical Co. (The).................. 15,000 1,903,125
COMMUNICATIONS EQUIPMENT--12.0%
General Motors Corp. Class H(b)......... 27,040 1,521,000
Lucent Technologies, Inc................ 34,020 2,294,224
Motorola, Inc........................... 27,300 2,586,675
QUALCOMM, Inc.(b)....................... 12,000 1,722,000
------------
8,123,899
------------
COMPUTERS (HARDWARE)--8.5%
International Business Machines Corp.... 25,000 3,231,250
Sun Microsystems, Inc.(b)............... 37,030 2,550,441
------------
5,781,691
------------
COMPUTERS (NETWORKING)--2.4%
Cisco Systems, Inc.(b).................. 25,330 1,633,785
COMPUTERS (SOFTWARE & SERVICES)--3.8%
Microsoft Corp.(b)...................... 28,950 2,610,928
ELECTRICAL EQUIPMENT--3.4%
General Electric Co..................... 20,320 2,296,160
ELECTRONICS (SEMICONDUCTORS)--4.0%
Texas Instruments, Inc.................. 18,550 2,689,750
FINANCIAL (DIVERSIFIED)--7.4%
Citigroup, Inc.......................... 54,185 2,573,787
Morgan Stanley Dean Witter & Co......... 23,620 2,421,050
------------
4,994,837
------------
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
FOODS--1.8%
General Mills, Inc...................... 15,400 $ 1,237,775
HEALTH CARE (DIVERSIFIED)--3.4%
Bristol-Myers Squibb Co................. 33,200 2,338,525
HEALTH CARE (MANAGED CARE)--1.9%
Wellpoint Health Networks, Inc.(b)...... 15,500 1,315,563
MANUFACTURING (DIVERSIFIED)--6.6%
Tyco International Ltd.................. 24,800 2,349,800
United Technologies Corp................ 30,000 2,150,625
------------
4,500,425
------------
OIL & GAS (DRILLING & EQUIPMENT)--6.0%
Baker Hughes, Inc....................... 54,320 1,819,720
Halliburton Co.......................... 50,430 2,281,958
------------
4,101,678
------------
OIL (INTERNATIONAL INTEGRATED)--2.8%
Texaco, Inc............................. 30,000 1,875,000
PAPER & FOREST PRODUCTS--3.5%
Georgia-Pacific Group................... 50,000 2,368,750
RETAIL (COMPUTERS & ELECTRONICS)--3.2%
Best Buy Co., Inc.(b)................... 17,220 1,162,350
Tandy Corp.............................. 21,320 1,042,015
------------
2,204,365
------------
RETAIL (GENERAL MERCHANDISE)--2.4%
Wal-Mart Stores, Inc.................... 33,400 1,611,550
RETAIL (SPECIALTY-APPAREL)--2.7%
TJX Companies, Inc. (The)............... 55,000 1,832,188
TELECOMMUNICATIONS (LONG DISTANCE)--4.0%
MCI WorldCom, Inc.(b)................... 31,358 2,704,628
- -----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $52,113,797) 62,319,246
- -----------------------------------------------------------------------------
FOREIGN COMMON STOCKS--4.2%
COMMUNICATIONS EQUIPMENT--2.7%
Nokia Oyj Sponsored ADR Class A
(Finland)............................... 20,000 1,831,250
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Growth Stock Portfolio
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
OIL (INTERNATIONAL INTEGRATED)--0.0%
BP Amoco PLC Sponsored ADR (United
Kingdom)................................ 30 $ 3,255
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--1.5%
Vodafone AirTouch PLC Sponsored ADR
(United Kingdom)........................ 5,200 1,024,400
- -----------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $1,994,426) 2,858,905
- -----------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS --96.0%
(IDENTIFIED COST $54,108,223) 65,178,151
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000)
--------- ---------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--4.5%
COMMERCIAL PAPER--4.5%
Corporate Asset Funding Co., Inc.
5.55%, 7/1/99....................... A-1+ $ 1,550 1,550,000
Potomac Electric Power Co. 5.20%,
7/2/99.............................. A-1 1,199 1,198,827
Preferred Receivables Funding Corp.
5.30%, 7/6/99....................... A-1 275 274,797
- ---------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $3,023,624) 3,023,624
- ---------------------------------------------------------------------------
TOTAL INVESTMENTS--100.5%
(IDENTIFIED COST $57,131,847) 68,201,775(a)
Cash and receivables, less liabilities--(0.5%) (336,949)
-------------
NET ASSETS--100.0% $ 67,864,826
-------------
-------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $11,461,738 and gross
depreciation of $456,365 for federal income tax purposes. At June 30, 1999,
the aggregate cost of securities for federal income tax purposes was
$57,196,402.
(b) Non-income producing.
See Notes to Financial Statements
9
<PAGE>
Phoenix Duff & Phelps Institutional Growth Stock Portfolio
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $57,131,847) $ 68,201,775
Cash 97,982
Receivables
Investment securities sold 1,555,080
Dividends and interest 33,620
Receivable from advisor 2,364
Prepaid expenses 1,351
--------------
Total assets 69,892,172
--------------
LIABILITIES
Payables
Investment securities purchased 1,934,725
Transfer agent fee 8,607
Financial agent fee 5,491
Distribution fee 4,144
Trustees' fee 889
Accrued expenses 73,490
--------------
Total liabilities 2,027,346
--------------
NET ASSETS $ 67,864,826
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 46,677,926
Undistributed net investment income 41,233
Accumulated net realized gain 10,075,739
Net unrealized appreciation 11,069,928
--------------
NET ASSETS $ 67,864,826
--------------
--------------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $46,725,629) 1,220,242
Net asset value and offering price per share $38.29
CLASS Y
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $21,139,197) 553,215
Net asset value and offering price per share $38.21
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 242,200
Interest 55,793
-------------
Total investment income 297,993
-------------
EXPENSES
Investment advisory fee 198,007
Distribution fee, Class Y 25,695
Financial agent fee 40,320
Registration 21,445
Transfer agent 19,477
Professional 18,504
Custodian 12,109
Trustees 9,917
Printing 5,155
Miscellaneous 5,369
-------------
Total expenses 355,998
Less expenses borne by investment adviser (99,238)
-------------
Net expenses 256,760
-------------
NET INVESTMENT INCOME 41,233
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 10,355,884
Net change in unrealized appreciation (depreciation) on
investments (5,286,222)
-------------
NET GAIN ON INVESTMENTS 5,069,662
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,110,895
-------------
-------------
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Growth Stock Portfolio
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/99 Year Ended
(Unaudited) 12/31/98
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 41,233 $ 38,130
Net realized gain (loss) 10,355,884 8,875,871
Net change in unrealized appreciation
(depreciation) (5,286,222) 8,732,664
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 5,110,895 17,646,665
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class X -- (30,177)
Net investment income, Class Y -- (7,953)
Net realized gains, Class X (2,831,069) (7,279,351)
Net realized gains, Class Y (1,282,763) (3,125,369)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (4,113,832) (10,442,850)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (18,023
and 447,453 shares, respectively) 695,943 15,187,022
Net asset value of shares issued from
reinvestment of distributions
(76,084 and 204,764 shares,
respectively) 2,831,066 7,309,523
Cost of shares redeemed (98,811 and
737,633 shares, respectively) (3,875,503) (25,502,110)
------------ ------------
Total (348,494) (3,005,565)
------------ ------------
CLASS Y
Proceeds from sales of shares (13,269
and 42,715 shares, respectively) 513,845 1,441,580
Net asset value of shares issued from
reinvestment of distributions
(34,539 and 85,930 shares,
respectively) 1,282,760 3,069,279
Cost of shares redeemed (59,424 and
84,508 shares, respectively) (2,256,786) (3,014,143)
------------ ------------
Total (460,181) 1,496,716
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (808,675) (1,508,849)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 188,388 5,694,966
------------ ------------
NET ASSETS
Beginning of period 67,676,438 61,981,472
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$41,233 AND $0, RESPECTIVELY] $ 67,864,826 $ 67,676,438
------------ ------------
------------ ------------
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix Duff & Phelps Institutional Growth Stock Portfolio
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS X
------------------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED DECEMBER 31, INCEPTION
6/30/99 ---------------------------- 3/1/96 TO
(UNAUDITED) 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $37.82 $33.85 $47.42 $48.01
INCOME FROM INVESTMENT OPERATIONS(6)
Net investment income (loss) 0.04(4) 0.05(4)(7) 0.31(4)(7) 0.34(4)
Net realized and unrealized gain (loss) 2.90 9.88 10.60 4.89
---------- --------- --------- -----------
TOTAL FROM INVESTMENT OPERATIONS 2.94 9.93 10.91 5.23
---------- --------- --------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income -- (0.15) (0.39) (0.30)
Dividends from net realized gains (2.47) (5.81) (24.07)(3) (5.52)
In excess of net investment income -- -- (0.02) --
---------- --------- --------- -----------
TOTAL DISTRIBUTIONS (2.47) (5.96) (24.48) (5.82)
---------- --------- --------- -----------
Change in net asset value 0.47 3.97 (13.57) (0.59)
---------- --------- --------- -----------
NET ASSET VALUE, END OF PERIOD $38.29 $37.82 $33.85 $47.42
---------- --------- --------- -----------
---------- --------- --------- -----------
Total return 7.96%(2) 31.20% 25.76% 10.71%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $46,726 $46,330 $44,350 $82,739
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.70%(1) 0.70% 0.70% 0.70%(1)
Net investment income 0.20%(1) 0.13% 0.64% 0.65%(1)
Portfolio turnover 90%(2) 115% 148% 99%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS Y
-------------------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED DECEMBER 31, INCEPTION
6/30/99 ---------------------------- 3/1/96 TO
(UNAUDITED) 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $37.79 $33.86 $47.43 $48.01
INCOME FROM INVESTMENT OPERATIONS(6)
Net investment income (loss) (0.01)(5) (0.04)(5)(7) 0.18(5)(7) 0.18(5)
Net realized and unrealized gain (loss) 2.90 9.88 10.59 4.95
----------- --------- --------- -----------
TOTAL FROM INVESTMENT OPERATIONS 2.89 9.84 10.77 5.13
----------- --------- --------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income -- (0.10) (0.31) (0.19)
Dividends from net realized gains (2.47) (5.81) (24.02)(3) (5.52)
In excess of net investment income -- -- (0.01) --
----------- --------- --------- -----------
TOTAL DISTRIBUTIONS (2.47) (5.91) (24.34) (5.71)
----------- --------- --------- -----------
Change in net asset value 0.42 3.93 (13.57) (0.58)
----------- --------- --------- -----------
NET ASSET VALUE, END OF PERIOD $38.21 $37.79 $33.86 $47.43
----------- --------- --------- -----------
----------- --------- --------- -----------
Total return 7.83%(2) 30.85% 25.46% 10.48%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $21,139 $ 21,347 $ 17,631 $22,978
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.95%(1) 0.95% 0.95% 0.95%(1)
Net investment income (loss) (0.05)%(1) (0.11)% 0.39% 0.39%(1)
Portfolio turnover 90%(2) 115% 148% 99%(2)
</TABLE>
(1) Annualized.
(2) Not annualized.
(3) Includes amounts distributed as income and redesignated for tax purposes.
(4) Includes reimbursement of operating expenses by investment adviser of $0.05,
$0.11, $0.08 and $0.04, respectively.
(5) Includes reimbursement of operating expenses by investment adviser of $0.05,
$0.11, $0.08 and $0.04, respectively.
(6) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from anticipated
results depending on the timing of share purchases and redemptions.
(7) Computed using average shares outstanding.
12 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Real Estate Equity Securities Portfolio
INVESTMENTS AT JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C> <C>
COMMON STOCKS--94.1%
REAL ESTATE INVESTMENT TRUSTS--93.2%
DIVERSIFIED--7.6%
Colonial Properties Trust............... 6,300 $ 177,975
Crescent Real Estate Equities Co........ 22,900 543,875
Vornado Realty Trust.................... 27,600 974,625
-------------
1,696,475
-------------
HEALTH CARE--3.5%
HRPT Properties Trust................... 16,500 252,656
Nationwide Health Properties, Inc....... 22,200 423,187
OMEGA Healthcare Investors, Inc......... 4,200 108,412
-------------
784,255
-------------
INDUSTRIAL/OFFICE--38.8%
INDUSTRIAL--9.8%
CenterPoint Properties Corp............. 32,200 1,179,325
First Industrial Realty Trust, Inc...... 18,500 507,594
Weeks Corp.............................. 16,300 497,150
-------------
2,184,069
-------------
MIXED--6.3%
Reckson Associates Realty Corp.......... 60,100 1,412,350
OFFICE--22.7%
Alexandria Real Estate Equities, Inc.... 22,500 703,125
Boston Properties, Inc.................. 34,600 1,241,275
Great Lakes REIT, Inc................... 12,000 195,000
Highwoods Properties, Inc............... 18,900 518,569
Mack-Cali Realty Corp................... 38,000 1,175,625
Spieker Properties, Inc................. 31,500 1,224,562
-------------
5,058,156
-------------
- -------------------------------------------------------------------------------
TOTAL INDUSTRIAL/ OFFICE 8,654,575
- -------------------------------------------------------------------------------
RESIDENTIAL--18.6%
APARTMENTS--16.6%
Apartment Investment & Management Co.... 32,400 1,385,100
Avalonbay Communities, Inc.............. 13,700 506,900
Equity Residential Properties Trust..... 18,700 842,669
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C> <C>
APARTMENTS--CONTINUED
Essex Property Trust, Inc............... 27,200 $ 962,200
-------------
3,696,869
-------------
MANUFACTURED HOMES--2.0%
Manufactured Home Communities, Inc...... 8,600 223,600
Sun Communities, Inc.................... 6,400 227,200
-------------
450,800
-------------
- -------------------------------------------------------------------------------
TOTAL RESIDENTIAL 4,147,669
- -------------------------------------------------------------------------------
RETAIL--23.3%
OUTLET CENTERS--2.7%
Chelsea GCA Realty, Inc................. 16,200 601,425
REGIONAL MALLS--13.2%
CBL & Associates Properties, Inc........ 25,500 672,563
General Growth Properties, Inc.......... 20,000 710,000
Macerich Co. (The)...................... 43,200 1,134,000
Urban Shopping Centers, Inc............. 13,300 418,950
-------------
2,935,513
-------------
STRIP CENTERS--7.4%
Bradley Real Estate Trust, Inc.......... 14,800 307,100
Developers Diversified Realty Corp...... 45,600 758,100
JDN Realty Corp......................... 4,800 107,400
Kimco Realty Corp....................... 12,400 485,150
-------------
1,657,750
-------------
- -------------------------------------------------------------------------------
TOTAL RETAIL 5,194,688
- -------------------------------------------------------------------------------
SPECIALTY--1.4%
Golf Trust of America, Inc.............. 13,000 317,688
- -------------------------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUSTS
(IDENTIFIED COST $20,673,405) 20,795,350
- -------------------------------------------------------------------------------
REAL ESTATE OPERATING COMPANIES--0.9%
DIVERSIFIED--0.0%
Vornado Operating, Inc.(b).............. 850 6,800
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Phoenix Duff & Phelps Institutional Real Estate Equity Securities Portfolio
<TABLE>
<CAPTION>
SHARES VALUE
---------- -------------
INDUSTRIAL/OFFICE--0.9%
<S> <C> <C> <C>
LODGING-HOTELS--0.3%
Interstate Hotels Corp.(b).............. 440 $ 1,815
Wyndham International, Inc. Class
A(b).................................... 13,201 59,405
-------------
61,220
-------------
MIXED--0.6%
Reckson Services Industries, Inc.(b).... 9,000 136,125
- -------------------------------------------------------------------------------
TOTAL INDUSTRIAL/OFFICE 197,345
- -------------------------------------------------------------------------------
TOTAL REAL ESTATE OPERATING COMPANIES
(IDENTIFIED COST $314,235) 204,145
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $20,987,640) 20,999,495
- -------------------------------------------------------------------------------
<CAPTION>
PAR
VALUE
(000) VALUE
---------- -------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--7.5%
REPURCHASE AGREEMENT--7.5%
State Street Bank & Trust Co. repurchase
agreement, 4.25% dated 6/30/99 due
7/1/99, repurchase price $1,666,197
collateralized by U.S. Treasury Bill 6%,
2/15/26, market value $1,704,105........ $ 1,666 $ 1,666,000
- -------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $1,666,000) 1,666,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS--101.6%
(IDENTIFIED COST $22,653,640) 22,665,495(a)
Cash and receivables, less liabilities--(1.6%) (349,152)
-------------
NET ASSETS--100.0% $ 22,316,343
-------------
-------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $1,042,902 and gross
depreciation of $1,031,047 for federal income tax purposes. At June 30,
1999, the aggregate cost of securities for federal income tax purposes was
$22,653,640.
(b) Non-income producing.
14
See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Real Estate Equity Securities Portfolio
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $22,653,640) $ 22,665,495
Cash 420
Receivables
Investment securities sold 315,396
Dividends and interest 149,023
Prepaid expenses 437
--------------
Total assets 23,130,771
--------------
LIABILITIES
Payables
Investment securities purchased 702,551
Investment advisory fee 21,986
Transfer agent fee 10,885
Financial agent fee 884
Distribution fee 147
Trustees' fee 43
Accrued expenses 77,932
--------------
Total liabilities 814,428
--------------
NET ASSETS $ 22,316,343
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 23,058,054
Undistributed net investment income 175,774
Accumulated net realized loss (929,340)
Net unrealized appreciation 11,855
--------------
NET ASSETS $ 22,316,343
--------------
--------------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Asset $21,579,562) 2,231,737
Net asset value and offering price per share $9.67
CLASS Y
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Asset $736,781) 76,202
Net asset value and offering price per share $9.67
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 648,900
Interest 32,871
-------------
Total investment income 681,771
-------------
EXPENSES
Investment advisory fee 47,144
Distribution fee, Class Y 855
Financial agent fee 20,932
Transfer agent 23,282
Registration 20,746
Professional 16,801
Administration fee 15,515
Printing 9,501
Trustees 9,042
Custodian 5,247
Miscellaneous 9,472
-------------
Total expenses 178,537
Less expenses borne by investment adviser (86,899)
-------------
Net expenses 91,638
-------------
NET INVESTMENT INCOME 590,133
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (171,501)
Net change in unrealized appreciation (depreciation) on
investments 1,392,382
-------------
NET GAIN ON INVESTMENTS 1,220,881
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,811,014
-------------
-------------
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Phoenix Duff & Phelps Institutional Real Estate Equity Securities Portfolio
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/99 Year Ended
(Unaudited) 12/31/98
------------ ---------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 590,133 $ 752,124
Net realized gain (loss) (171,501) (757,839)
Net change in unrealized appreciation
(depreciation) 1,392,382 (3,480,613)
------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,811,014 (3,486,328)
------------ ---------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class X (439,220) (752,862)
Net investment income, Class Y (14,404) (30,663)
------------ ---------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (453,624) (783,525)
------------ ---------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (14,966
and 770,681 shares, respectively) 135,000 7,215,000
Net asset value of shares issued from
reinvestment of distributions
(48,525 and 77,570 shares,
respectively) 435,102 752,854
------------ ---------------
Total 570,102 7,967,854
------------ ---------------
CLASS Y
Proceeds from sales of shares (0 and 0
shares, respectively) -- --
Net asset value of shares issued from
reinvestment of distributions
(1,606 and 3,113 shares,
respectively) 14,400 30,655
------------ ---------------
Total 14,400 30,655
------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 584,502 7,998,509
------------ ---------------
NET INCREASE (DECREASE) IN NET ASSETS 1,941,892 3,728,656
NET ASSETS
Beginning of period 20,374,451 16,645,795
------------ ---------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$175,774 AND $39,265, RESPECTIVELY] $ 22,316,343 $ 20,374,451
------------ ---------------
------------ ---------------
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Real Estate Equity Securities Portfolio
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS X
---------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
6/30/99 ENDED 5/1/97 TO
(UNAUDITED) 12/31/98 12/31/97
<S> <C> <C> <C>
Net asset value, beginning of period $9.08 $11.96 $10.00
INCOME FROM INVESTMENT OPERATIONS(5)
Net investment income (loss) 0.26(3) 0.47(3)(6) 0.39(3)
Net realized and unrealized gain
(loss) 0.53 (2.89) 1.96
------ ----------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.79 (2.42) 2.35
------ ----------- ----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.20) (0.46) (0.35)
Dividends from net realized gains -- -- (0.04)
------ ----------- ----------
TOTAL DISTRIBUTIONS (0.20) (0.46) (0.39)
------ ----------- ----------
Change in net asset value 0.59 (2.88) 1.96
------ ----------- ----------
NET ASSET VALUE, END OF PERIOD $9.67 $9.08 $11.96
------ ----------- ----------
------ ----------- ----------
Total return 8.89%(2) (20.53)% 23.70%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $21,580 $19,697 $15,791
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.88%(1) 0.88% 0.90%(1)
Net investment income 5.71%(1) 4.54% 4.75%(1)
Portfolio turnover 6%(2) 15% 4%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS Y
---------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
6/30/99 ENDED 5/1/97 TO
(UNAUDITED) 12/31/98 12/31/97
<S> <C> <C> <C>
Net asset value, beginning of period $9.09 $11.96 $10.00
INCOME FROM INVESTMENT OPERATIONS(5)
Net investment income (loss) 0.25(4) 0.46(4)(6) 0.34(4)
Net realized and unrealized gain
(loss) 0.52 (2.91) 2.00
------ ----------- ----------
TOTAL FROM INVESTMENT OPERATIONS 0.77 (2.45) 2.34
------ ----------- ----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.19) (0.42) (0.34)
Dividends from net realized gains -- -- (0.04)
------ ----------- ----------
TOTAL DISTRIBUTIONS (0.19) (0.42) (0.38)
------ ----------- ----------
Change in net asset value 0.58 (2.87) 1.96
------ ----------- ----------
NET ASSET VALUE, END OF PERIOD $9.67 $9.09 $11.96
------ ----------- ----------
------ ----------- ----------
Total return 8.67%(2) (20.69)% 23.55%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $737 $678 $855
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.13%(1) 1.13% 1.15%(1)
Net investment income 5.46%(1) 4.39% 4.51%(1)
Portfolio turnover 6%(2) 15% 4%(2)
</TABLE>
(1) Annualized.
(2) Not annualized.
(3) Includes reimbursement of operating expenses by investment adviser of $0.04,
$0.11 and $0.16, respectively.
(4) Includes reimbursement of operating expenses by investment adviser of $0.04,
$0.11 and $0.16, respectively.
(5) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from anticipated
results depending on the timing of share purchases and redemptions.
(6) Computed using average shares outstanding.
See Notes to Financial Statements 17
<PAGE>
Phoenix Duff & Phelps Institutional Managed Bond Portfolio
INVESTMENTS AT JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- -------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--1.5%
U.S. TREASURY NOTES--1.5%
U.S. Treasury Notes 5.50%, 5/31/00...... Aaa $ 100 $ 100,198
U.S. Treasury Notes 4.75%, 11/15/08..... Aaa 130 119,264
U.S. Treasury Notes 5.50%, 5/15/09...... Aaa 1,280 1,252,421
- -----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $1,499,776) 1,471,883
- -----------------------------------------------------------------------------
AGENCY MORTGAGE-BACKED SECURITIES--15.2%
Fannie Mae 6%, 5/15/08.................. Aaa 1,470 1,430,529
Fannie Mae 6.75%, 6/25/20............... Aaa 582 583,971
Freddie Mac 6.65%, 6/15/23.............. Aaa 2,050 2,044,957
GNMA 6.50%, 6/1/26...................... NR 2,650 2,550,625
GNMA 6%, 12/1/28........................ Aaa 3,495 3,268,532
GNMA 6.50%, 5/1/29...................... Aaa 1,400 1,347,687
GNMA 7%, 7/1/29(j)...................... NR 4,100 4,044,906
- -----------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $15,623,012) 15,271,207
- -----------------------------------------------------------------------------
AGENCY NON-MORTGAGE-BACKED
SECURITIES--1.4%
FHLB 5.315%, 12/23/08................... A 1,550 1,427,694
- -----------------------------------------------------------------------------
TOTAL AGENCY NON MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $1,548,605) 1,427,694
- -----------------------------------------------------------------------------
MUNICIPAL BONDS--19.7%
CALIFORNIA--4.9%
Alameda Corridor Transportation
Authority Revenue Taxable Series C
6.60%, 10/1/29.......................... Aaa 635 575,469
Fresno County Pension Obligation Taxable
6.21%, 8/15/06.......................... Aaa 1,400 1,365,000
Oakland Pension Obligation Revenue
Taxable Series A 6.98%, 12/15/09........ Aaa 400 404,000
Orange County Pension Obligation Revenue
Taxable Series A 7.21%, 9/1/07.......... Aaa 300 309,000
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- -------------
<S> <C> <C> <C>
CALIFORNIA--CONTINUED
Orange County Pension Obligation Revenue
Taxable Series A 7.62%, 9/1/08.......... Aaa $ 50 $ 52,687
Orange County Pension Obligation Revenue
Taxable Series A 7.67%, 9/1/09.......... Aaa 1,200 1,272,000
Ventura County Pension Obligation
Taxable 6.54%, 11/1/05.................. Aaa 1,000 1,001,250
-------------
4,979,406
-------------
COLORADO--1.9%
Denver City and County School District
01
Pension Taxable 6.76%, 12/15/07......... Aaa 1,900 1,900,000
CONNECTICUT--1.7%
Mashantucket Western Pequot Tribe
Revenue Taxable Series A 6.91%, 9/1/12.. Aaa 1,100 1,075,250
Mashantucket Western Pequot Tribe
Revenue Taxable Series A 144A 6.57%,
9/1/13(b)............................... Aaa 715 676,569
-------------
1,751,819
-------------
FLORIDA--2.4%
Palm Beach County Solid Waste Industrial
Development Project B Revenue Taxable
10.50%, 1/1/11(g)(h).................... NR 1,000 500,000
Tampa Solid Waste System Revenue Taxable
Series A 6.43%, 10/1/08................. Aaa 930 905,587
University of Miami Exchangeable Revenue
Taxable Series A 7.40%, 4/1/11(d)....... Aaa 210 215,513
University of Miami Exchangeable Revenue
Taxable Series A 7.65%, 4/1/20(d)....... Aaa 825 838,406
-------------
2,459,506
-------------
</TABLE>
18 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Managed Bond Portfolio
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- -------------
<S> <C> <C> <C>
ILLINOIS--4.0%
Chicago Park District General Obligation
6.25%, 1/1/09........................... Aaa $ 825 $ 898,219
Illinois Educational Facilities
Authority-Loyola University Revenue
Series A 5.70%, 7/1/24.................. Aaa 1,075 1,100,531
Illinois Educational Facilities
Authority-Loyola University Revenue
Taxable Series A 7.84%, 7/1/24.......... Aaa 1,925 1,985,156
-------------
3,983,906
-------------
MASSACHUSETTS--0.9%
Massachusetts State Port Authority
Revenue Taxable Series C 6%, 7/1/01..... Aa 870 868,913
NEW YORK--0.4%
New York State Taxable Series D 6.75%,
6/15/09................................. A 400 396,500
PENNSYLVANIA--1.2%
Pennsylvania Economic Development
Financing Authority Revenue Series B
9.50%, 1/1/12(g)(h)..................... NR 1,955 261,481
Philadelphia Authority For Industrial
Development Pension Funding Retirement
Systems Revenue Taxable Series A 5.79%,
4/15/09................................. Aaa 1,000 925,000
-------------
1,186,481
-------------
TEXAS--0.1%
Dallas-Fort Worth International Airport
Facilities Improvement Revenue Taxable
6.45%, 11/1/08.......................... Aaa 70 68,250
VIRGINIA--1.0%
Newport News General Obligation Taxable
Series B 7.05%, 1/15/25................. Aa 1,025 972,469
WASHINGTON--1.2%
Snohomish County Washington School
District 5.65%, 12/1/09................. Aaa 475 501,719
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- -------------
<S> <C> <C> <C>
WASHINGTON--CONTINUED
Washington State Series B 5.50%,
5/1/10.................................. Aa $ 665 $ 690,769
-------------
1,192,488
-------------
- -----------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $22,105,757) 19,759,738
- -----------------------------------------------------------------------------
ASSET-BACKED SECURITIES--9.4%
Aesop Funding II LLC 98-1, A 144A 6.14%,
5/20/06(b).............................. Aaa 1,100 1,068,717
Capita Equipment Receivables Trust 97-1,
B 6.45%, 8/15/02........................ Aa 600 599,466
Citibank Credit Card Master Trust I
98-3, A 5.80%, 2/7/05................... Aaa 1,500 1,477,735
ContiMortgage Home Equity Loan Trust
98-1, B 7.86%, 4/15/29.................. Baa 1,576 1,491,044
First USA Credit Card Master Trust 98-1,
C 144A 6.50%, 1/18/06(b)................ BBB(c) 925 909,391
Green Tree Financial Corp. 96-10, A3
6.16%, 11/15/28......................... AAA(c) 122 121,571
Green Tree Financial Corp. 97-4, M1
7.22%, 2/15/29.......................... Aa 1,500 1,483,594
Premier Auto Trust 97-3, B 6.52%,
1/6/03.................................. A 650 654,316
Residential Accredit Loans, Inc. 96-QS4,
AI10 7.90%, 8/25/26..................... AAA(c) 900 912,656
Team Fleet Financing Corp. 98-2A, C 144A
6.53%, 7/25/02(b)....................... BBB(c) 770 750,991
- -----------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $9,634,810) 9,469,481
- -----------------------------------------------------------------------------
CORPORATE BONDS--7.9%
AEROSPACE/DEFENSE--0.7%
BE Aerospace, Inc. 9.50%, 11/1/08....... B 740 749,250
AIRLINES--0.9%
US Airways, Inc. Series 98-1 Class A
6.85%, 1/30/18.......................... A 930 873,037
BROADCASTING (TELEVISION, RADIO & CABLE)--0.6%
CSC Holdings, Inc. 7.625%, 7/15/18...... Ba 600 570,000
</TABLE>
See Notes to Financial Statements 19
<PAGE>
Phoenix Duff & Phelps Institutional Managed Bond Portfolio
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- -------------
<S> <C> <C> <C>
COMMUNICATIONS EQUIPMENT--0.5%
Metromedia Fiber Network, Inc. 10%,
11/15/08................................ B $ 500 $ 515,000
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--0.5%
Mohegan Tribal Gaming 8.125%, 1/1/06.... Ba 250 245,000
Mohegan Tribal Gaming 8.75%, 1/1/09..... Ba 250 247,500
-------------
492,500
-------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.5%
Boston Scientific Corp. 6.625%,
3/15/05................................. Baa 560 534,800
HOMEBUILDING--0.9%
Lennar Corp. 7.625%, 3/1/09............. Ba 955 901,281
INSURANCE (MULTI-LINE)--0.6%
Willis Corroon Corp. 144A 9%,
2/1/09(b)............................... Ba 600 582,000
INSURANCE (PROPERTY-CASUALTY)--0.5%
HSB Capital I Series B 5.91%,
7/15/27(d).............................. BBB(c) 550 521,493
PERSONAL CARE--0.6%
Revlon Consumer Products Corp. 9%,
11/1/06................................. B 600 600,000
SERVICES (COMMERCIAL & CONSUMER)--0.1%
ARA Services, Inc. 10.625%, 8/1/00...... Baa 107 112,083
TELECOMMUNICATIONS (LONG DISTANCE)--1.1%
Interamericas Communications Corp. 14%,
10/27/07................................ NR 915 626,775
Qwest Communications International, Inc.
Series B 7.50%, 11/1/08................. Ba 500 497,500
-------------
1,124,275
-------------
TEXTILES (HOME FURNISHINGS)--0.4%
Westpoint Stevens, Inc. 7.875%,
6/15/05................................. Ba 400 392,000
- -----------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $8,463,868) 7,967,719
- -----------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED
SECURITIES--23.6%
CS First Boston Mortgage Securities
Corp. 97-SPCE C 144A 7.077%,
2/20/07(b)(f)........................... A(c) 1,450 1,396,078
CS First Boston Mortgage Securities
Corp. 98-C1, A1B 6.48%, 5/17/08(f)...... Aaa 2,400 2,322,000
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- -------------
<S> <C> <C> <C>
Chase Commerical Mortgage Securities
Corp. 97-2, A1 6.45%, 12/19/04.......... AAA(c) $ 107 $ 103,782
Criimi Mae Trust I 96-C1, A2 144A 7.56%,
6/30/33(b).............................. BBB(c) 1,475 1,405,859
DLJ Commercial Mortgage Corp. 99-CG1,
A1B 6.46%, 1/10/09...................... Aaa 1,250 1,207,813
FFCA Secured Lending Corp. 99-1A, A1A
144A 6.37%, 10/18/08(b)................. Aaa 1,089 1,060,785
First Union--Lehman Brothers--Bank of
America 98-C2, A2 6.56%, 11/18/08(f).... Aaa 1,330 1,296,368
First Union Commercial Mortgage Trust
99-C1, A2 6.07%, 10/15/08............... Aaa 1,140 1,072,669
G.E. Capital Mortgage Services, Inc.
96-8, 2A5 7.50%, 5/25/26................ AAA(c) 266 266,378
GMAC Commercial Mortgage Securities Inc.
99-C1, A1 5.83%, 5/15/33................ AAA(c) 1,856 1,791,564
General Growth Properties 97-1, C2 144A
6.806%, 11/15/07(b)..................... A 1,700 1,656,667
LB Commercial Conduit Mortgage Trust
98-C4, A1B 6.21%, 10/15/08.............. Aaa 1,850 1,759,897
Nationslink Funding Corp. 99-1, A2
6.316%, 11/20/08........................ Aaa 1,350 1,293,263
Norwest Asset Securities Corp. 99-5, B2
6.25%, 3/25/14.......................... A(c) 1,777 1,677,000
Norwest Asset Securities Corp. 99-10, B2
6.25%, 4/25/14.......................... A(c) 1,196 1,128,230
Residential Asset Securitization Trust
96-A8, A1 8%, 12/25/26.................. AAA(c) 2 2,444
Residential Funding Mortgage Securities
I 93-S25, M3 6.50%, 7/25/08............. BBB+(c) 558 535,564
Residential Funding Mortgage Securities
I 96-S20, A7 7.75%, 9/25/26............. AAA(c) 70 70,000
Residential Funding Mortgage Securities
I 98-S2, A4 7%, 1/25/28................. AAA(c) 138 134,510
</TABLE>
20 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Managed Bond Portfolio
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- -------------
<S> <C> <C> <C>
Resolution Trust Corp. 92-C3, B 9.05%,
8/25/23................................. AA(c) $ 86 $ 85,209
Ryland Mortgage Securities Corp. III
92-A, 1A 8.257%, 3/29/30(d)............. A-(c) 490 488,653
Structured Asset Securities Corp. 95-C1,
D 7.375%, 9/25/24....................... BBB(c) 1,865 1,885,324
Structured Asset Securities Corp. 95-C4,
D 7%, 6/25/26........................... BBB(c) 1,000 993,348
- -----------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $24,341,733) 23,633,405
- -----------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--9.9%
BULGARIA--0.9%
Republic of Bulgaria FLIRB Series A
Bearer 2.50%, 7/28/12(d)................ B 1,535 937,309
COLOMBIA--1.0%
Republic of Colombia 10.875%, 3/9/04.... Baa 995 955,200
COSTA RICA--1.1%
Republic of Costa Rica 144A 9.335%,
5/15/09(b).............................. Ba 1,080 1,055,700
CROATIA--1.1%
Croatia Series B 5.8125%, 7/31/06(d).... Baa 637 533,721
Croatia Series A 5.8125%, 7/31/10(d).... Baa 725 580,000
-------------
1,113,721
-------------
MEXICO--0.7%
United Mexican States Global Bond
11.375%, 9/15/16........................ Ba 360 386,775
United Mexican States Global Bond
11.50%, 5/15/26......................... Ba 275 307,312
United Mexican States Series A 6.25%,
12/31/19(e)............................. Ba 70 52,238
-------------
746,325
-------------
PANAMA--1.7%
Republic of Panama 8.875%, 9/30/27...... Ba 1,290 1,076,505
Republic of Panama 9.375%, 4/1/29....... Ba 640 611,200
-------------
1,687,705
-------------
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- -------------
<S> <C> <C> <C>
PHILIPPINES--1.5%
Republic of Philippines 8.875%,
4/15/08................................. Ba $ 956 $ 944,050
Republic of Philippines 9.875%,
1/15/19................................. Ba 550 541,063
-------------
1,485,113
-------------
POLAND--1.9%
Poland Bearer PDI 5%, 10/27/14(d)....... Baa 2,155 1,917,950
- -----------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $9,915,200) 9,899,023
- -----------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--4.7%
BERMUDA--0.0%
AES China Generating Co. 10.125%,
12/15/06................................ Ba 10 6,350
CANADA--0.5%
Imax Corp. 7.875%, 12/1/05.............. Ba 500 471,250
CHILE--1.5%
Compania Sud Americana de Vapores 144A
7.375%, 12/8/03(b)...................... BBB(c) 350 329,437
Petropower I Funding Trust 144A 7.36%,
2/15/14(b).............................. BBB(c) 1,370 1,166,451
-------------
1,495,888
-------------
MEXICO--1.8%
Banco Nacional de Mexico SA US$
Remittance Master Trust 144A 7.57%,
12/31/00(b)............................. BBB+(c) 1,206 1,193,831
Gruma SA de CV 7.625%, 10/15/07......... Ba 715 639,925
-------------
1,833,756
-------------
VENEZUELA--0.9%
PDVSA Finance Ltd. 6.80%, 11/15/08...... A 1,100 916,421
- -----------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $5,137,528) 4,723,665
- -----------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 21
<PAGE>
Phoenix Duff & Phelps Institutional Managed Bond Portfolio
<TABLE>
<CAPTION>
SHARES VALUE
-------- -------------
PREFERRED STOCKS--0.8%
<S> <C> <C> <C>
REITS--0.8%
Home Ownership Funding 2,
Step-down Pfd. 144A 13.338%(b)(i)................. 900 $ 780,892
- -----------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $774,089) 780,892
- -----------------------------------------------------------------------------
WARRANTS--0.1%
TELEPHONE--0.1%
FirstCom Corp. 144A Warrants(b)(g)................ 32,025 120,094
- -----------------------------------------------------------------------------
TOTAL WARRANTS
(IDENTIFIED COST $0) 120,094
- -----------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--94.2%
(IDENTIFIED COST $99,044,378) 94,524,801
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------- --------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--11.8%
COMMERCIAL PAPER--11.8%
Corporate Asset Funding Co., Inc. 5.55%,
7/1/99.................................. A-1+ $1,585 $ 1,585,000
Exxon Imperial Funding U.S., Inc. 5.80%,
7/1/99.................................. A-1+ 2,500 2,500,000
Koch Industries, Inc. 5.80%, 7/1/99..... A-1 1,570 1,570,000
Pitney Bowes Credit Corp. 5%, 7/1/99.... A-1+ 1,850 1,850,000
Ford Motor Credit Co. 5.41%, 7/2/99..... A-1 3,095 3,094,535
Donnelley (R.R.) & Sons & Co. 5.13%,
7/9/99.................................. A-1 1,235 1,233,592
- ------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $11,833,127) 11,833,127
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS--106.0%
(IDENTIFIED COST $110,877,505) 106,357,928(a)
Cash and receivables, less liabilities--(6.0%) (6,022,440)
--------------
NET ASSETS--100.0% $ 100,335,488
--------------
--------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $688,868 and gross
depreciation of $5,352,897 for federal income tax purposes. At June 30,
1999, the aggregate cost of securities for federal income tax purposes was
$111,021,957.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally qualified institutional buyers. At June 30, 1999,
these securities amounted to a value of $14,153,462 or 14.1% of net assets.
(c) As rated by Standard & Poors, Fitch or Duff & Phelps.
(d) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
(e) Rights incorporated as a unit.
(f) All or a portion segregated as collateral.
(g) Non-income producing.
(h) Security in default.
(i) Dividend payments backed by FHLMC ("Freddie Mac") participants
certificates.
(j) When issued.
22
See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Managed Bond Portfolio
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $110,877,505) $ 106,357,928
Cash 113,530
Receivables
Interest and dividends 1,318,850
Fund shares sold 70,906
Other receivables 11,070
Prepaid expenses 2,397
--------------
Total assets 107,874,681
--------------
LIABILITIES
Payables
Investment securities purchased 4,056,523
Fund shares purchased 3,360,525
Investment advisory fee 33,078
Transfer agent fee 9,905
Financial agent fee 7,955
Distribution fee 1,394
Trustees' fee 602
Accrued expenses 69,211
--------------
Total liabilities 7,539,193
--------------
NET ASSETS $ 100,335,488
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 108,488,350
Undistributed net investment income 290,468
Accumulated net realized loss (3,923,753)
Net unrealized depreciation (4,519,577)
--------------
NET ASSETS $ 100,335,488
--------------
--------------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $93,596,795) 3,089,382
Net asset value and offering price per share $30.30
CLASS Y
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $6,738,693) 222,391
Net asset value and offering price per share $30.30
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 3,892,210
Dividends 33,057
-------------
Total investment income 3,925,267
-------------
EXPENSES
Investment advisory fee 246,775
Distribution fee, Class Y 8,784
Financial agent fee 55,612
Registration 27,335
Transfer agent 21,370
Professional 17,495
Custodian 13,144
Trustees 9,630
Printing 5,022
Miscellaneous 15,767
-------------
Total expenses 420,934
Less expenses borne by investment adviser (110,546)
-------------
Net expenses 310,388
-------------
NET INVESTMENT INCOME 3,614,879
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (1,689,323)
Net change in unrealized appreciation (depreciation) on
investments (2,454,380)
-------------
NET LOSS ON INVESTMENTS (4,143,703)
-------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (528,824)
-------------
-------------
</TABLE>
See Notes to Financial Statements 23
<PAGE>
Phoenix Duff & Phelps Institutional Managed Bond Portfolio
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/99 Year Ended
(Unaudited) 12/31/98
------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 3,614,879 $ 6,442,234
Net realized gain (loss) (1,689,323) (1,443,742)
Net change in unrealized appreciation
(depreciation) (2,454,380) (3,362,834)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (528,824) 1,635,658
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class X (3,116,665) (5,993,836)
Net investment income, Class Y (207,746) (448,398)
In excess of net investment income,
Class X -- (454,210)
In excess of net investment income,
Class Y -- (33,979)
In excess of net realized gains, Class
X -- (405,385)
In excess of net realized gains, Class
Y -- (30,538)
------------- -------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (3,324,411) (7,366,346)
------------- -------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (85,945
and 2,186,315 shares, respectively) 2,699,006 72,030,204
Net asset value of shares issued from
reinvestment of distributions
(83,617 and 205,651 shares,
respectively) 2,521,880 6,625,855
Cost of shares repurchased (679,972
and 985,246 shares, respectively) (21,298,070) (32,787,919)
------------- -------------
Total (16,077,184) 45,868,140
------------- -------------
CLASS Y
Proceeds from sales of shares (11,004
and 38,785 shares, respectively) 347,124 1,270,163
Net asset value of shares issued from
reinvestment of distributions
(6,888 and 15,744 shares,
respectively) 207,745 507,803
Cost of shares repurchased (33,543 and
19,173 shares, respectively) (1,053,293) (623,115)
------------- -------------
Total (498,424) 1,154,851
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (16,575,608) 47,022,991
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS (20,428,843) 41,292,303
NET ASSETS
Beginning of period 120,764,331 79,472,028
------------- -------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$290,468 AND $0, RESPECTIVELY] $ 100,335,488 $ 120,764,331
------------- -------------
------------- -------------
</TABLE>
24 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Managed Bond Portfolio
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS X
--------------------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED DECEMBER 31, INCEPTION
6/30/99 ---------------------------- 3/1/96 TO
(UNAUDITED) 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $31.47 $33.17 $33.98 $33.84
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 1.09(3) 2.26(3)(5) 2.37(3)(5) 2.03(3)(5)
Net realized and unrealized gain (loss) (1.26) (1.58) 0.85 0.69
---------- ---------- --------- ------
TOTAL FROM INVESTMENT OPERATIONS (0.17) 0.68 3.22 2.72
---------- ---------- --------- ------
LESS DISTRIBUTIONS
Dividends from net investment income (1.00) (2.09) (2.42) (1.96)
Dividends from net realized gains -- -- (1.43) (0.61)
In excess of net investment income -- (0.16) (0.18) (0.01)
In excess of accumulated net realized gains -- (0.13) -- --
---------- ---------- --------- ------
TOTAL DISTRIBUTIONS (1.00) (2.38) (4.03) (2.58)
---------- ---------- --------- ------
Change in net asset value (1.17) (1.70) (0.81) 0.14
---------- ---------- --------- ------
NET ASSET VALUE, END OF PERIOD $30.30 $31.47 $33.17 $33.98
---------- ---------- --------- ------
---------- ---------- --------- ------
Total return (0.53)%(2) 0.02% 0.10% 8.24%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $93,597 $113,273 $72,747 $71,482
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.55%(1) 0.55% 0.55% 0.55%(1)
Net investment income 6.61%(1) 6.89% 6.92% 7.15%(1)
Portfolio turnover 61%(2) 105% 176% 199%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS Y
--------------------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED DECEMBER 31, INCEPTION
6/30/99 ---------------------------- 3/1/96 TO
(UNAUDITED) 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $31.47 $33.18 $33.97 $33.84
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 1.05(4) 2.18(4)(5) 2.27(4)(5) 1.98(4)(5)
Net realized and unrealized gain (loss) (1.26) (1.59) 0.88 0.66
---------- ---------- --------- ------
TOTAL FROM INVESTMENT OPERATIONS (0.21) 0.59 3.15 2.64
---------- ---------- --------- ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.96) (2.02) (2.33) (1.89)
Dividends from net realized gains -- -- (1.43) (0.61)
In excess of net investment income -- (0.15) (0.18) (0.01)
In excess of accumulated net realized gains -- (0.13) -- --
---------- ---------- --------- ------
TOTAL DISTRIBUTIONS (0.96) (2.30) (3.94) (2.51)
---------- ---------- --------- ------
Change in net asset value (1.17) (1.71) (0.79) 0.13
---------- ---------- --------- ------
NET ASSET VALUE, END OF PERIOD $30.30 $31.47 $33.18 $33.97
---------- ---------- --------- ------
---------- ---------- --------- ------
Total return (0.65)%(2) 1.72% 9.52% 7.98%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $6,738 $7,491 $6,725 $7,010
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.80%(1) 0.80% 0.80% 0.80%(1)
Net investment income 6.36%(1) 6.63% 6.65% 6.91%(1)
Portfolio turnover 61%(2) 105% 176% 199%(2)
</TABLE>
(1) Annualized.
(2) Not annualized.
(3) Includes reimbursement of operating expenses by investment adviser of $0.03,
$0.07, $0.08 and $0.09 per share, respectively.
(4) Includes reimbursement of operating expenses by investment adviser of $0.03,
$0.07, $0.08 and $0.09 per share, respectively.
(5) Computed using average shares outstanding.
See Notes to Financial Statements 25
<PAGE>
Phoenix Duff & Phelps Institutional Enhanced Reserves Portfolio
INVESTMENTS AT JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- -------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--3.8%
U.S. TREASURY NOTES--3.8%
U.S. Treasury Notes 5.25%, 5/31/01...... Aaa $ 425 $ 423,072
- -----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $423,232) 423,072
- -----------------------------------------------------------------------------
AGENCY MORTGAGE-BACKED SECURITIES--30.2%
Fannie Mae 5.85%, 2/25/06............... Aaa 765 763,139
Fannie Mae 6.50%, 8/1/13................ Aaa 958 944,127
Fannie Mae 5.75%, 11/25/16.............. Aaa 763 761,620
Fannie Mae 7.298%, 3/1/20(c)............ Aaa 847 871,010
- -----------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $3,364,553) 3,339,896
- -----------------------------------------------------------------------------
ASSET-BACKED SECURITIES--33.1%
Citibank Credit Card Master Trust I
98-3, A 5.80%, 2/7/05................... Aaa 500 492,578
EQCC Home Equity Loan Trust 99-2, A2
6.223%, 6/25/11......................... Aaa 300 297,270
Fleetwood Credit Corp. Grantor Trust
93-A, A 6% 1/15/08...................... Aaa 1,045 1,044,047
Green Tree Home Improvement Loan Trust
98-D, HEA2 5.96%, 8/15/29............... AAA(b) 500 495,719
Household Consumer Loan Trust 96-2, A2
5.308%, 8/15/06(c)...................... Aa 500 500,156
MBNA Master Credit Card Trust 96-H, A
5.10%, 1/15/04(c)....................... Aaa 500 500,469
UCFC Home Equity Loan 96-B1, A3 7.30%,
4/15/14................................. Aaa 99 98,684
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- -------------
<S> <C> <C> <C>
Western Financial Grantor Trust 95-2, A1
7.10%, 7/1/00........................... Aaa $ 232 $ 232,557
- -----------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $3,686,108) 3,661,480
- -----------------------------------------------------------------------------
CORPORATE BONDS--21.1%
COMMUNICATIONS EQUIPMENT--4.6%
Lucent Technologies, Inc. 6.90%,
7/15/01................................. A 500 508,125
COMPUTERS (HARDWARE)--4.5%
International Business Machines Corp.
5.125%, 2/12/01......................... A 500 493,750
INVESTMENT BANKING/BROKERAGE--4.8%
Merrill Lynch & Co., Inc. 8.30%,
11/1/02................................. Aa 500 528,125
LODGING-HOTELS--2.7%
Carnival Corp. 5.65%, 10/15/00.......... A 300 298,125
RETAIL (GENERAL MERCHANDISE)--4.5%
Wal-Mart Stores, Inc. 5.65%, 2/1/10..... Aa 500 500,625
- -----------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $2,349,623) 2,328,750
- -----------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--88.2%
(IDENTIFIED COST $9,823,516) 9,753,198
- -----------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS--11.7%
COMMERCIAL PAPER--11.7%
Ford Motor Credit Corp. 4.86%, 7/7/99... P1 400 400,000
General Electric Capital Corp. 4.932%,
7/26/99................................. P1 400 400,000
</TABLE>
26 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Enhanced Reserves Portfolio
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- -------------
<S> <C> <C> <C>
COMMERCIAL PAPER--CONTINUED
General Motors Acceptance Corp. 5.002%,
7/27/99................................. P1 $ 500 $ 500,000
- -----------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $1,300,000) 1,300,000
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--99.9%
(IDENTIFIED COST $11,123,516) 11,053,198(a)
Cash and receivables, less liabilities--0.1% 6,189
-------------
NET ASSETS--100.0% $ 11,059,387
-------------
-------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $4,727 and gross
depreciation of $75,045 for federal income tax purposes. At June 30, 1999,
the aggregate cost of securities for federal income tax purposes was
$11,123,516.
(b) As rated by Standard and Poor's.
(c) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
See Notes to Financial Statements
27
<PAGE>
Phoenix Duff & Phelps Institutional Enhanced Reserves Portfolio
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $11,123,516) $ 11,053,198
Cash 3,258
Receivables
Interest 100,142
Receivable from adviser 11,888
Prepaid expenses 528
--------------
Total assets 11,169,014
--------------
LIABILITIES
Payables
Dividend distributions 14,749
Transfer agent fee 8,941
Financial agent fee 5,892
Trustees' fee 881
Distribution fee 397
Accrued expenses 78,767
--------------
Total liabilities 109,627
--------------
NET ASSETS $ 11,059,387
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 11,611,824
Undistributed net investment loss (25,697)
Accumulated net realized loss (456,422)
Net unrealized depreciation (70,318)
--------------
NET ASSETS $ 11,059,387
--------------
--------------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $8,644,763) 883,425
Net asset value per share and offering price per share $9.79
CLASS Y
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,414,624) 247,046
Net asset value and offering price per share $9.77
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 425,147
-------------
Total investment income 425,147
-------------
EXPENSES
Investment advisory fee 18,074
Distribution fee, Class Y 675
Financial agent fee 18,873
Registration 21,928
Professional 19,876
Transfer agent fee 18,391
Trustees' fees 9,917
Printing 5,054
Custodian 4,836
Miscellaneous 6,146
-------------
Total expenses 123,770
Less expenses borne by investment adviser (92,972)
-------------
Net expenses 30,798
-------------
NET INVESTMENT INCOME 394,349
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (100,262)
Net change in unrealized appreciation (depreciation) on
investments (96,733)
-------------
NET LOSS ON INVESTMENTS (196,995)
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 197,354
-------------
-------------
</TABLE>
28 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Enhanced Reserves Portfolio
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/99 Year Ended
(Unaudited) 12/31/98
------------ -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 394,349 $ 3,337,342
Net realized gain (loss) (100,262) 5,821
Net change in unrealized appreciation
(depreciation) (96,733) (84,829)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 197,354 3,258,334
------------ -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class X (380,655) (3,252,508)
Net investment income, Class Y (13,694) (34,351)
In excess of net realized gains, Class
X -- (30,976)
In excess of net realized gains, Class
Y -- (327)
Tax return of capital, Class X -- (30,992)
Tax return of capital, Class Y -- (327)
------------ -------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (394,349) (3,349,481)
------------ -------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (240,009
and 11,388,876 shares, respectively) 2,360,182 113,196,272
Net asset value of shares issued from
reinvestment of distributions
(38,979 and 336,133 shares,
respectively) 384,152 3,344,672
Cost of shares repurchased (1,320,530
and 17,364,902 shares, respectively) (12,984,601) (172,655,453)
------------ -------------
Total (10,240,267) (56,114,509)
------------ -------------
CLASS Y
Proceeds from sales of shares (389,317
and 287,414 shares, respectively) 3,812,552 2,861,166
Net asset value of shares issued from
reinvestment of distributions
(294 and 1,114 shares, respectively) 2,898 11,076
Cost of shares repurchased (188,984
and 444,611 shares, respectively) (1,853,900) (4,414,944)
------------ -------------
Total 1,961,550 (1,542,702)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS (8,278,717) (57,657,211)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS (8,475,712) (57,748,358)
NET ASSETS
Beginning of period 19,535,099 77,283,457
------------ -------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($25,697) AND DISTRIBUTIONS IN
EXCESS OF NET INVESTMENT INCOME OF
($25,697), RESPECTIVELY] $ 11,059,387 $ 19,535,099
------------ -------------
------------ -------------
</TABLE>
See Notes to Financial Statements 29
<PAGE>
Phoenix Duff & Phelps Institutional Enhanced Reserves Portfolio
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS X
---------------------------------------------------------------
SIX
MONTHS YEAR ENDED FROM
ENDED DECEMBER 31, INCEPTION
6/30/99 ------------------------ 7/19/96 TO
(UNAUDITED) 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $9.91 $9.95 $9.95 $9.95
INCOME FROM INVESTMENT OPERATIONS(5)
Net investment income (loss) 0.26(3)(6) 0.55(3) 0.58(3)(6) 0.26(3)
Net realized and unrealized gain (loss) (0.12) (0.03) -- --
--------- --------- --------- ------------
TOTAL FROM INVESTMENT OPERATIONS 0.14 0.52 0.58 0.26
--------- --------- --------- ------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.26) (0.54) (0.58) (0.26)
In excess of accumulated net realized gains -- (0.01) -- --
Tax return of capital -- (0.01) -- --
--------- --------- --------- ------------
TOTAL DISTRIBUTIONS (0.26) (0.56) (0.58) (0.26)
--------- --------- --------- ------------
Change in net asset value (0.12) (0.04) -- --
--------- --------- --------- ------------
NET ASSET VALUE, END OF PERIOD $9.79 $9.91 $9.95 $9.95
--------- --------- --------- ------------
--------- --------- --------- ------------
Total return 1.39%(2) 5.34% 6.03% 2.57%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $8,645 $19,076 $75,269 $122,010
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.40%(1) 0.37% 0.34% 0.34%(1)
Net investment income 5.24%(1) 5.64% 5.84% 5.68%(1)
Portfolio turnover 149%(2) 264% 177% 122%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS Y
---------------------------------------------------------------
SIX
MONTHS YEAR ENDED FROM
ENDED DECEMBER 31, INCEPTION
6/30/99 ------------------------ 11/1/96 TO
(UNAUDITED) 1998 1997 12/31/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $9.90 $9.95 $9.95 $9.97
INCOME FROM INVESTMENT OPERATIONS(5)
Net investment income (loss) 0.25(4)(6) 0.51(4) 0.56(4)(6) 0.09(4)
Net realized and unrealized gain (loss) (0.13) (0.03) -- (0.02)
--------- --------- --------- ------------
TOTAL FROM INVESTMENT OPERATIONS 0.12 0.48 0.56 0.07
--------- --------- --------- ------------
LESS DISTRIBUTIONS
Dividends from net investment income (0.25) (0.51) (0.56) (0.09)
In excess of accumulated net realized gains -- (0.01) -- --
Tax return of capital -- (0.01) -- --
--------- --------- --------- ------------
TOTAL DISTRIBUTIONS (0.25) (0.53) (0.56) (0.09)
--------- --------- --------- ------------
Change in net asset value (0.13) (0.05) -- (0.02)
--------- --------- --------- ------------
NET ASSET VALUE, END OF PERIOD $9.77 $9.90 $9.95 $9.95
--------- --------- --------- ------------
--------- --------- --------- ------------
Total return 1.16%(2) 5.08% 5.75% 0.71%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $2,415 $459 $2,014 $1,504
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.66%(1) 0.63% 0.59% 0.59%(1)
Net investment income 5.05%(1) 5.35% 5.59% 5.58%(1)
Portfolio turnover 149%(2) 264% 177% 122%(2)
</TABLE>
(1) Annualized.
(2) Not annualized.
(3) Includes reimbursement of operating expenses by investment adviser of $0.06,
$0.03, $0.02 and less than $0.01, respectively.
(4) Includes reimbursement of operating expenses by investment adviser of $0.06,
$0.03, $0.02 and less than $0.01, respectively.
(5) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from anticipated
results depending on the timing of share purchases and redemptions.
(6) Computed using average shares outstanding.
30 See Notes to Financial Statements
<PAGE>
PHOENIX DUFF & PHELPS INSTITUTIONAL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix Duff & Phelps Institutional Mutual Funds (the "Fund") is organized as
a Massachusetts business trust and is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. To date, five Portfolios are offered for sale: Core Equity Portfolio,
Growth Stock Portfolio, Real Estate Equity Securities Portfolio, Managed Bond
Portfolio and Enhanced Reserves Portfolio.
Each Portfolio has distinct investment objectives. The Core Equity Portfolio
seeks long-term appreciation of capital. The Growth Stock Portfolio seeks
long-term appreciation of capital. The Real Estate Equity Securities Portfolio
seeks to emphasize capital appreciation and income equally by investing
primarily in marketable securities of publicly-traded real estate investment
trusts (REITS) and companies that invest in, operate, develop and/or manage real
estate located in the United States. The Managed Bond Portfolio seeks to
generate a high level of current income and capital appreciation. The Enhanced
Reserves Portfolio seeks to provide high current income consistent with
preservation of capital.
Each Portfolio offers both Class X and Class Y shares. Both classes of shares
have identical voting, dividend, liquidation and other rights and the same terms
and conditions, except that Class Y bears distribution expenses and has
exclusive voting rights with respect to its distribution plan. Income and
expenses of each Portfolio are borne pro rata by the holders of both classes of
shares, except that Class X bears no distribution expenses.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses.
Actual results could differ from those estimates.
A. SECURITY VALUATION:
Equity securities are valued at the last sale price, or if there had been no
sale that day, at the last bid price. Debt securities are valued on the basis of
broker quotations or valuations provided by a pricing service which utilizes
information with respect to recent sales, market transactions in comparable
securities, quotations from dealers, and various relationships between
securities in determining value. Short-term investments having a remaining
maturity of 60 days or less are valued at amortized cost which approximates
market. All other securities and assets are valued at their fair value as
determined in good faith by or under the direction of the Trustees.
B. SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are recorded on the trade date. Dividend income is
recorded on the ex-dividend date or, in the case of certain foreign securities,
as soon as the Portfolio is notified. Interest income is recorded on the accrual
basis. The Fund does not amortize premiums except for the Enhanced Reserves
Portfolio, but does accrete discounts using the effective interest method.
Realized gains and losses are determined on the identified cost basis.
C. INCOME TAXES:
Each of the Portfolios is treated as a separate taxable entity. It is the
policy of each Portfolio in the Fund to comply with the requirements of the
Internal Revenue Code (the "Code"), applicable to regulated investment
companies, and to distribute all of its taxable income to its shareholders. In
addition, each Portfolio intends to distribute an amount sufficient to avoid
imposition of any excise tax under Section 4982 of the Code. Therefore, no
provision for federal income taxes or excise taxes has been made.
D. DISTRIBUTIONS TO SHAREHOLDERS:
Distributions are recorded by each Portfolio on the ex-dividend date. Income
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences include the treatment of non-taxable dividends, non-deductible
expenses, foreign currency gain/loss, partnerships, and losses deferred due to
wash sales and excise tax regulations. Permanent book and tax basis differences
relating to shareholder distributions will result in reclassifications to paid
in capital.
E. FOREIGN CURRENCY TRANSLATION:
Foreign securities, other assets and liabilities are valued using the foreign
currency exchange rate effective at the end of the reporting period. Cost of
investments is translated at the currency exchange rate effective at the trade
date. The gain or loss resulting from a change in currency exchange rates
between the trade and settlement dates of a portfolio transaction is treated as
a gain or loss on foreign currency. Likewise, the gain or loss resulting from a
change in currency exchange rates between the date income is accrued and paid is
treated as a gain or loss on foreign currency. The Fund does not separate that
portion of the results of operations arising from changes in exchange rates and
that portion arising from changes in the market prices of securities.
F. FORWARD CURRENCY CONTRACTS:
Each of the Portfolios may enter into forward currency contracts in
conjunction with the planned purchase or sale of foreign denominated securities
in order to hedge the U.S. dollar cost or proceeds. Forward
31
<PAGE>
PHOENIX DUFF & PHELPS INSTITUTIONAL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED) (CONTINUED)
currency contracts involve, to varying degrees, elements of market risk in
excess of the amount recognized in the statement of assets and liabilities.
Risks arise from the possible movements in foreign exchange rates or if the
counterparty does not perform under the contract.
A forward currency contract involves an obligation to purchase or sell a
specific currency at a future date, which may be any number of days from the
date of the contract agreed upon by the parties, at a price set at the time of
the contract. These contracts are traded directly between currency traders and
their customers. The contract is marked-to-market daily and the change in market
value is recorded by each Portfolio as an unrealized gain (or loss). When the
contract is closed or offset, the Portfolio records a realized gain (or loss)
equal to the change in the value of the contract when it was opened and the
value at the time it was closed or offset.
G. FUTURES CONTRACTS:
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. A Portfolio may enter into financial
futures contracts as a hedge against anticipated changes in the market value of
their portfolio securities. Upon entering into a futures contract the Portfolio
is required to pledge to the broker an amount of cash and/or securities equal to
the "initial margin" requirements of the futures exchange on which the contract
is traded. Pursuant to the contract, the Portfolio agrees to receive from or pay
to the broker an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation margin and are
recorded by the Portfolio as unrealized gains or losses. When the contract is
closed, the Portfolio records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at the
time it was closed. The potential risk to a Portfolio is that the change in
value of the futures contract may not correspond to the change in value of the
hedged instruments.
H. OPTIONS:
Each Portfolio may write covered options or purchase options contracts for the
purpose of hedging against changes in the market value of the underlying
securities or foreign currencies.
Each Portfolio will realize a gain or loss upon the expiration or closing of
the option transaction. Gains and losses on written options are reported
separately in the Statement of Operations. When a written option is exercised,
the proceeds on sales or amounts paid are adjusted by the amount of premium
received. Options written are reported as a liability in the Statement of Assets
and Liabilities and subsequently marked-to-market to reflect the current value
of the option. The risk associated with written options is that the change in
value of options contracts may not correspond to the change in value of the
hedged instruments. In addition, losses may arise from changes in the value of
the underlying instruments, or if a liquid secondary market does not exist for
the contracts.
Each Portfolio may purchase options which are included in the Portfolio's
Schedule of Investments and subsequently marked-to-market to reflect the current
value of the option. When a purchased option is exercised, the cost of the
security is adjusted by the amount of premium paid. The risk associated with
purchased options is limited to the premium paid.
I. EXPENSES:
Expenses incurred by the Fund with respect to any two or more Portfolios are
allocated in proportion to the net assets of each Portfolio, except where
allocation of direct expense to each Portfolio or an alternative allocation
method can be more fairly made.
J. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS:
Each Portfolio may engage in when-issued or delayed delivery transactions. The
Portfolios record when-issued securities on the trade date and maintain
collateral for the securities purchased. Securities purchased on a when-issued
or delayed delivery basis begin earning interest on the settlement date.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
The Advisers to the Fund are Phoenix Investment Counsel, Inc. ("PIC") and Duff
& Phelps Investment Management Co. ("DPIM"). PIC is an indirect, majority-owned
subsidiary of Phoenix Home Life Mutual Insurance Company ("PHL"). DPIM is a
subsidiary of Phoenix Investment Partners, Ltd., formerly, Phoenix Duff & Phelps
Corporation, which is an indirect, majority-owned subsidiary of PHL. Formerly,
Phoenix Realty Securities, Inc. ("PRS"), an indirect, wholly-owned subsidiary of
PHL, was the investment Adviser for Real Estate Equity Securities Portfolio
through December 31, 1997. As compensation for their services to the Fund, the
Advisers are entitled to a fee based upon the following annual rates as a
percentage of the average daily net assets of each separate Portfolio:
<TABLE>
<CAPTION>
1st $1 $1+
Portfolio Adviser Billion Billion
- ---------------------------------------- --------- ---------- ----------
<S> <C> <C> <C>
Core Equity Portfolio................... DPIM 0.50% 0.50%
Growth Stock Portfolio.................. PIC 0.60% 0.55%
Real Estate Equity Securities
Portfolio............................. DPIM 0.50% 0.50%
Managed Bond Portfolio.................. PIC 0.45% 0.40%
Enhanced Reserves Portfolio............. DPIM 0.24% 0.19%
</TABLE>
In addition to this base adviser fee, Real Estate Equity Securities Portfolio
is subject to a performance adjustment based on the
32
<PAGE>
PHOENIX DUFF & PHELPS INSTITUTIONAL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED) (CONTINUED)
Portfolio's annual performance as compared to certain prescribed benchmarks. For
the six months ended June 30, 1999, the performance adjustment was $4,573.
Each Fund's Adviser has voluntarily agreed to assume total fund operating
expenses of each Portfolio it advises, excluding interest, taxes, brokerage
fees, commissions and extraordinary expenses until the dates indicated below, to
the extent that such expenses exceed the following percentages of average annual
net assets:
<TABLE>
<CAPTION>
Class X Class Y Dates
---------- ---------- -----------------
<S> <C> <C> <C>
Core Equity Portfolio....... 0.65% 0.90% December 31, 1999
Growth Stock Portfolio...... 0.70% 0.95% December 31, 2001
Managed Bond Portfolio...... 0.55% 0.80% December 31, 2001
</TABLE>
DPIM has voluntarily agreed to assume other operating expenses of Real Estate
Equity Securities Portfolio, excluding interest, taxes, brokerage fees,
commissions and extraordinary expenses until December 31, 1999, to the extent
that such expenses exceed 0.40% of average annual net asset values of Class X
and Class Y.
Effective May 1, 1998, DPIM has voluntarily agreed to reimburse or waive total
fund operating expenses of the Enhanced Reserves Portfolio, excluding interest,
taxes, brokerage fees, commissions and extraordinary expenses until December 31,
1999, to the extent that such expenses exceed 0.40% and 0.65%, respectively, of
the average annual net assets of Class X and Y, respectively. Prior to that
date, the expense limits were 0.34% and 0.59% for Class X and Y, respectively.
Phoenix Equity Planning Corporation ("PEPCO"), an indirect, majority-owned
subsidiary of PHL, serves as the national distributor of the Fund's shares. Each
Portfolio pays PEPCO a distribution fee of an annual rate of 0.25% for Class Y
shares applied to the average daily net assets of that class. The distributor
has advised the Portfolio that of the total amount expensed for the six months
ended June 30, 1999, $1,173 was retained by the Distributor, $3,984 was paid out
to unaffiliated participants, and $30,983 was paid to W.S. Griffith, an indirect
subsidiary of PHL.
As Financial Agent of the Fund, PEPCO receives a financial agent fee equal to
the sum of (1) the documented cost of fund accounting and related services
provided by PFPC, Inc. (subagent to PEPCO), plus (2) the documented cost to
PEPCO to provide financial reporting, tax services and oversight of the
subagent's performance. The current fee schedule of PFPC, Inc. ranges from
0.085% to 0.0125% of the average daily net asset values of the Fund. Certain
minimum fees and fee waivers may apply.
PEPCO serves as the Fund's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the six months ended June 30, 1999, transfer
agent fees were $101,639 of which PEPCO retained $38 which is net of fees paid
to State Street.
At June 30, 1999, PHL and affiliates held Portfolio shares which aggregated
the following:
<TABLE>
<CAPTION>
Aggregate
Net Asset
Shares Value
---------- -----------
<S> <C> <C>
Core Equity Portfolio Class X........... 191,253 $ 2,105,696
Core Equity Portfolio Class Y........... 10,060 110,559
Growth Stock Portfolio-Class X.......... 5 191
Growth Stock Portfolio-Class Y.......... 5,118 195,559
Real Estate Equity Securities
Portfolio-Class X..................... 1,107,508 10,709,602
Real Estate Equity Securities
Portfolio-Class Y..................... 10,904 105,442
Managed Bond Portfolio-Class X.......... 4 121
Managed Bond Portfolio-Class Y.......... 3,944 119,503
</TABLE>
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended June 30, 1999
(excluding U.S. Government and agency securities and short-term securities)
aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
-------------- --------------
<S> <C> <C>
Core Equity Portfolio...................... $ 4,060,759 $ 4,009,476
Growth Stock Portfolio..................... 58,898,939 65,601,650
Real Estate Equity Securities Portfolio.... 1,974,492 1,116,808
Managed Bond Portfolio..................... 53,298,356 55,685,976
Enhanced Reserves Portfolio................ 4,202,018 3,589,661
</TABLE>
Purchases and sales of U.S. Government and agency securities during the six
months ended June 30, 1999, aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
----------- -----------
<S> <C> <C>
Managed Bond Portfolio..................... $11,372,264 $25,708,255
Enhanced Reserves Portfolio................ 14,862,530 20,189,316
</TABLE>
4. CREDIT RISK
In countries with limited or developing markets, investments may present
greater risks than in more developed markets and the prices of such investments
may be volatile. The consequences of political, social or economic changes in
these markets may have disruptive effects on the market price of these
investments and the income they generate, as well as a Portfolio's ability to
repatriate such amounts.
33
<PAGE>
PHOENIX DUFF & PHELPS INSTITUTIONAL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED) (CONTINUED)
5. OTHER
As of June 30, 1999, the Portfolios had shareholders who each individually
owned more than 10% of shares outstanding, none of whom are affiliated with PHL
or PXP as follows. In addition, affiliate holdings are presented in the table
located within Note 2.
<TABLE>
<CAPTION>
Number of % of Total
Shareholders Net Assets
----------------- -----------
<S> <C> <C>
Core Equity Portfolio...................... 3 62.8%
Growth Stock Portfolio..................... 3 38.7%
Real Estate Equity Securities Portfolio.... 1 34.6%
Managed Bond Portfolio..................... 1 10.3%
Enhanced Reserves Portfolio................ 2 61.7%
</TABLE>
6. CAPITAL LOSS CARRYOVERS
The following Portfolios have capital loss carryovers which may be used to
offset future capital gains as follows:
<TABLE>
<S> <C>
Core Equity Portfolio....................... $ 538,960
Real Estate Portfolio....................... 627,317
Enhanced Reserves Portfolio................. 355,049
</TABLE>
Capital loss carryovers expire in 2006 for all Portfolios except for Enhanced
Reserves Portfolio which expires as follows: $189,419 in 2003, $128,718 in 2004,
and $36,912 in 2005.
For the Enhanced Reserves Portfolio, capital loss carryovers include $189,419
acquired in connection with the merger of the Duff & Phelps Enhanced Reserves
Fund.
This report is not authorized for distribution to prospective investors unless
preceded or accompanied by an effective Prospectus which includes information
concerning the Fund's record and other pertinent information.
34
<PAGE>
PHOENIX DUFF & PHELPS INSTITUTIONAL MUTUAL FUNDS
101 Munson Street
Greenfield, Massachusetts 01301
TRUSTEES
Robert Chesek
E. Virgil Conway
William W. Crawford
Harry Dalzell-Payne
William N. Georgeson
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Eileen A. Moran
Everett L. Morris
James M. Oates
Richard A. Pavia
Calvin J. Pedersen
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
OFFICERS
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
Gail P. Seneca, Senior Vice President
James D. Wehr, Senior Vice President
Robert S. Driessen, Vice President
Marvin E. Flewellen, Vice President
Ron K. Jacks, Vice President
Richard D. Little, Vice President
William R. Moyer, Vice President
Diane L. Mustain, Vice President
Leonard J. Saltiel, Vice President
Christopher Saner, Vice President
Michael Schatt, Vice President
Andrew Szabo, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
INVESTMENT ADVISERS
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, Connecticut 06115-0480
Duff & Phelps Investment Management Co. (Core
Equity Portfolio, Real Estate Equity Securities
Portfolio and Enhanced Reserves Portfolio)
55 East Monroe Street
Suite 3600
Chicago, Illinois 60603
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
CUSTODIANS
The Chase Manhattan Bank
1 Chase Manhattan Plaza
Floor 3B
New York, New York 10081
State Street Bank and Trust Company (Core Equity
Portfolio, Real Estate Equity Securities Portfolio
and Enhanced Reserves Portfolio)
P.O. Box 351
Boston, Massachusetts 02101
TRANSFER AGENT
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachussetts 02110
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574 (option 0)
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
World Wide Web address:
WWW.PHOENIXINVESTMENTS.COM
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PHOENIX DUFF & PHELPS INSTITUTIONAL MUTUAL FUNDS
PO Box 2200
Enfield CT 06083-2200
[LOGO] PHOENIX
INVESTMENT PARTNERS
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