<PAGE>
Phoenix Investment Partners
SEMIANNUAL REPORT
JUNE 30, 2000
Phoenix Duff & Phelps
Institutional Mutual Funds
Growth Stock Portfolio
Managed by
Seneca Capital Management LLC
Managed Bond Portfolio
Managed by
Phoenix Investment Counsel, Inc.
[LOGO] PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
We are pleased to provide this semiannual financial summary for the Growth
Stock Portfolio and the Managed Bond Portfolio for the six months ended June 30,
2000.
If you have any questions, please call a client service representative at
1-800-814-1897, option 3.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
JUNE 30, 2000
------------------------------------------------------
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>
PHOENIX-DUFF & PHELPS INSTITUTIONAL GROWTH STOCK PORTFOLIO
INVESTMENTS AT JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
COMMON STOCKS--88.8%
ALUMINUM--2.5%
Alcoa, Inc.............................. 56,010 $ 1,624,290
BANKS (MAJOR REGIONAL)--3.2%
Mellon Financial Corp................... 56,900 2,073,294
BEVERAGES (NON-ALCOHOLIC)--3.6%
Coca-Cola Co. (The)..................... 40,580 2,330,814
BROADCASTING (TELEVISION, RADIO & CABLE)--4.1%
AMFM, Inc.(b)........................... 38,140 2,631,660
CHEMICALS--2.3%
Praxair, Inc............................ 38,440 1,439,097
COMMUNICATIONS EQUIPMENT--10.8%
Corning, Inc............................ 11,460 3,092,767
General Motors Corp. Class H(b)......... 24,220 2,125,305
Scientific-Atlanta, Inc................. 22,770 1,696,365
-----------
6,914,437
-----------
COMPUTERS (HARDWARE)--4.3%
International Business Machines Corp.... 7,790 853,492
Sun Microsystems, Inc.(b)............... 20,600 1,873,313
-----------
2,726,805
-----------
COMPUTERS (NETWORKING)--2.0%
Cisco Systems, Inc.(b).................. 19,620 1,247,096
ELECTRICAL EQUIPMENT--4.2%
General Electric Co..................... 50,880 2,696,640
ELECTRONICS (SEMICONDUCTORS)--3.3%
Intel Corp.............................. 15,670 2,094,883
ENTERTAINMENT--2.6%
Walt Disney Co. (The)................... 42,070 1,632,842
EQUIPMENT (SEMICONDUCTORS)--3.2%
Applied Materials, Inc.(b).............. 22,880 2,073,500
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
FINANCIAL (DIVERSIFIED)--8.0%
American Express Co..................... 16,770 $ 874,136
Citigroup, Inc.......................... 38,425 2,315,106
Morgan Stanley Dean Witter & Co......... 23,180 1,929,735
-----------
5,118,977
-----------
HEALTH CARE (DIVERSIFIED)--3.5%
Johnson & Johnson....................... 21,640 2,204,575
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--6.5%
Merck & Co., Inc........................ 32,790 2,512,534
Pfizer, Inc............................. 34,610 1,661,280
-----------
4,173,814
-----------
HEALTH CARE (HOSPITAL MANAGEMENT)--2.5%
HCA-The Healthcare Co................... 52,350 1,590,131
HOUSEHOLD PRODUCTS (NON-DURABLE)--2.7%
Clorox Co. (The)........................ 38,970 1,746,343
NATURAL GAS--2.9%
El Paso Energy Corp..................... 36,880 1,878,575
OIL & GAS (DRILLING & EQUIPMENT)--6.1%
Diamond Offshore Drilling, Inc.......... 41,710 1,465,064
Halliburton Co.......................... 51,680 2,438,650
-----------
3,903,714
-----------
RETAIL (BUILDING SUPPLIES)--3.4%
Lowe's Cos., Inc........................ 53,100 2,180,419
RETAIL (GENERAL MERCHANDISE)--3.4%
Wal-Mart Stores, Inc.................... 38,230 2,203,004
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--3.7%
Nextel Communications, Inc. Class
A(b).................................... 38,900 2,380,194
-------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $45,458,024) 56,865,104
-------------------------------------------------------------------
</TABLE>
2 See Notes to Financial Statements
<PAGE>
Phoenix-Duff & Phelps Institutional Growth Stock Portfolio
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
FOREIGN COMMON STOCKS--10.4%
COMMUNICATIONS EQUIPMENT--6.4%
Nokia Oyj Sponsored ADR (Finland)....... 28,730 $ 1,434,704
Nortel Networks Corp. (Canada).......... 39,040 2,664,480
-----------
4,099,184
-----------
ELECTRONICS (SEMICONDUCTORS)--4.0%
STMicroelectronics NV (Netherlands)..... 39,720 2,549,528
-------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $2,815,581) 6,648,712
-------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--99.2%
(IDENTIFIED COST $48,273,605) 63,513,816
-------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000)
--------- -------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--1.5%
COMMERCIAL PAPER--1.5%
Koch Industries, Inc. 6.89%,
7/3/00.............................. A-1+ $ 980 979,625
---------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $979,625) 979,625
---------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--100.7%
(IDENTIFIED COST $49,253,230) 64,493,441(a)
Cash and receivables, less liabilities--(0.7%) (466,308)
-----------
NET ASSETS--100.0% $64,027,133
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $16,710,082 and gross
depreciation of $1,636,187 for federal income tax purposes. At June 30,
2000, the aggregate cost of securities for federal income tax purpose was
$49,419,546.
(b) Non-income producing.
See Notes to Financial Statements 3
<PAGE>
Phoenix Duff & Phelps Institutional Growth Stock Portfolio
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $49,253,230) $ 64,493,441
Cash 4,903
Receivables
Fund shares sold 92,964
Dividends and interest 27,040
Prepaid expenses 674
--------------
Total assets 64,619,022
--------------
LIABILITIES
Payables
Investment securities purchased 521,471
Investment advisory fee 12,553
Financial agent fee 7,705
Transfer agent fee 6,668
Distribution fee 4,488
Trustees' fee 1,188
Accrued expenses 37,816
--------------
Total liabilities 591,889
--------------
NET ASSETS $ 64,027,133
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 45,348,648
Undistributed net investment income 26,865
Accumulated net realized gain 3,411,409
Net unrealized appreciation 15,240,211
--------------
NET ASSETS $ 64,027,133
==============
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $41,836,129) 1,191,876
Net asset value and offering price per share $35.10
CLASS Y
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $22,191,004) 634,781
Net asset value and offering price per share $34.96
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 248,963
Interest 62,647
Foreign taxes withheld (1,716)
--------------
Total investment income 309,894
--------------
EXPENSES
Investment advisory fee 186,307
Distribution fee, Class Y 26,786
Financial agent fee 45,581
Registration 20,803
Transfer agent 19,700
Professional 15,934
Custodian 13,159
Trustees 9,972
Printing 6,004
Miscellaneous 7,946
--------------
Total expenses 352,192
Less expenses borne by investment adviser (108,040)
--------------
Net expenses 244,152
--------------
NET INVESTMENT INCOME 65,742
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 3,474,389
Net change in unrealized appreciation (depreciation) on
investments (3,079,407)
--------------
NET GAIN ON INVESTMENTS 394,982
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 460,724
==============
</TABLE>
4 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Growth Stock Portfolio
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended
(Unaudited) 12/31/99
----------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 65,742 $ 58,344
Net realized gain (loss) 3,474,389 17,061,177
Net change in unrealized appreciation
(depreciation) (3,079,407) 1,963,468
----------- ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 460,724 19,082,989
----------- ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class X (42,919) (39,257)
Net investment income, Class Y (15,045) --
Net realized gains, Class X (2,107,538) (11,735,478)
Net realized gains, Class Y (1,123,001) (5,991,827)
----------- ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (3,288,503) (17,766,562)
----------- ------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (64,563
and 43,182 shares, respectively) 2,198,371 1,703,697
Net asset value of shares issued from
reinvestment of distributions
(62,022 and 328,868 shares,
respectively) 2,150,311 11,774,581
Cost of shares redeemed (59,643 and
472,062 shares, respectively) (2,159,894) (19,926,904)
----------- ------------
Total 2,188,788 (6,448,626)
----------- ------------
CLASS Y
Proceeds from sales of shares (15,217
and 23,824 shares, respectively) 547,714 935,225
Net asset value of shares issued from
reinvestment of distributions
(32,958 and 168,015 shares,
respectively) 1,138,044 5,991,813
Cost of shares redeemed (8,227 and
161,837 shares, respectively) (301,079) (6,189,832)
----------- ------------
Total 1,384,679 737,206
----------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 3,573,467 (5,711,420)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS 745,688 (4,394,993)
----------- ------------
NET ASSETS
Beginning of period 63,281,445 67,676,438
----------- ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$26,865 AND $19,087, RESPECTIVELY] $64,027,133 $ 63,281,445
=========== ============
</TABLE>
See Notes to Financial Statements 5
<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 FROM
ENDED YEAR ENDED DECEMBER 31, INCEPTION
6/30/00 ---------------------------------------- 3/1/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 36.83 $ 37.82 $ 33.85 $ 47.42 $ 48.01
INCOME FROM INVESTMENT
OPERATIONS(6)
Net investment income (loss) .05 0.08 0.05(7) 0.31(7) 0.34
Net realized and unrealized gain
(loss) .13 11.65 9.88 10.60 4.89
------- -------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS .18 11.73 9.93 10.91 5.23
------- -------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment
income (.04) (0.05) (0.15) (0.39) (0.30)
Dividends from net realized gains (1.87) (12.67) (5.81) (24.07)(3) (5.52)
In excess of net investment
income -- -- -- (0.02) --
------- -------- ------- ------- -------
TOTAL DISTRIBUTIONS (1.91) (12.72) (5.96) (24.48) (5.82)
------- -------- ------- ------- -------
Change in net asset value (1.73) (0.99) 3.97 (13.57) (0.59)
------- -------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 35.10 $ 36.83 $ 37.82 $ 33.85 $ 47.42
======= ======== ======= ======= =======
Total return 0.54%(2) 33.93% 31.20% 25.76% 10.71%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $41,836 $41,436 $46,330 $44,350 $82,739
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 0.70%(1) 0.70% 0.70% 0.70% 0.70%(1)
Net investment income 0.30%(1) 0.17% 0.13% 0.64% 0.65%(1)
Portfolio turnover 57%(2) 136% 115% 148% 99%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS Y
------------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31, INCEPTION
6/30/00 ---------------------------------------- 3/1/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 36.72 $ 37.79 $ 33.86 $ 47.43 $ 48.01
INCOME FROM INVESTMENT
OPERATIONS(6)
Net investment income (loss) 0.02 (0.03) (0.04)(7) 0.18(7) 0.18
Net realized and unrealized gain
(loss) 0.12 11.63 9.88 10.59 4.95
------- -------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS 0.14 11.60 9.84 10.77 5.13
------- -------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.03) -- (0.10) (0.31) (0.19)
Dividends from net realized gains (1.87) (12.67) (5.81) (24.02)(3) (5.52)
In excess of net investment
income -- -- -- (0.01) --
------- -------- ------- ------- -------
TOTAL DISTRIBUTIONS (1.90) (12.67) (5.91) (24.34) (5.71)
------- -------- ------- ------- -------
Change in net asset value (1.76) (1.07) 3.93 (13.57) (0.58)
------- -------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 34.96 $ 36.72 $ 37.79 $ 33.86 $ 47.43
======= ======== ======= ======= =======
Total return 0.42%(2) 33.60% 30.85% 25.46% 10.48%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $22,191 $21,845 $21,347 $17,631 $22,978
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 0.95%(1) 0.95% 0.95% 0.95% 0.95%(1)
Net investment income (loss) 0.05%(1) (0.09)% (0.11)% 0.39% 0.39%(1)
Portfolio turnover 57%(2) 136% 115% 148% 99%(2)
</TABLE>
(1) Annualized.
(2) Not annualized.
(3) Includes amounts distributed as income and redesignated for tax purposes.
(4) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.05%,
0.95%, 1.00%, 0.87%, and 0.81% for the periods ended June 30, 2000,
December 31, 1999, 1998, 1997, and 1996, respectively.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.30%,
1.20%, 1.25%, 1.12%, and 1.06% for the periods ended June 30, 2000,
December 31, 1999, 1998, 1997, and 1996, 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.
6 See Notes to Financial Statements
<PAGE>
PHOENIX-DUFF & PHELPS INSTITUTIONAL MANAGED BOND PORTFOLIO
INVESTMENTS AT JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
AGENCY MORTGAGE-BACKED SECURITIES--16.4%
Fannie Mae 6.75%, 3/25/20................ Aaa $ 144 $ 143,398
Fannie Mae TBA 6%, 7/15/30............... Aaa 6,265 5,728,559
Freddie Mac 6.65%, 6/15/23............... Aaa 2,050 1,997,520
GNMA 6.50%, 3/15/29...................... Aaa 1,476 1,401,536
GNMA 6.50%, 4/15/29...................... Aaa 1,346 1,277,091
GNMA 7%, 7/15/29(e)...................... Aaa 4,945 4,808,564
GNMA 7%, 8/15/29......................... Aaa 1,942 1,888,759
--------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $17,345,942) 17,245,427
--------------------------------------------------------------------------
MUNICIPAL BONDS--14.9%
CALIFORNIA--5.4%
Alameda Corridor Transportation Authority
Revenue Taxable Series C 6.50%, 10/1/19.. Aaa 1,000 875,220
Alameda Corridor Transportation Authority
Revenue Taxable Series C 6.60%, 10/1/29.. Aaa 635 544,125
Fresno County Pension Obligation Revenue
Taxable 6.21%, 8/15/06................... Aaa 1,400 1,313,060
Long Beach Pension Obligation Taxable
7.09%, 9/1/09............................ Aaa 1,475 1,428,729
Oakland Pension Obligation Revenue
Taxable Series A 6.95%, 12/15/08......... Aaa 200 192,578
Oakland Pension Obligation Revenue
Taxable Series A 6.98%, 12/15/09......... Aaa 400 384,296
Ventura County Pension Obligation Taxable
6.54%, 11/1/05........................... Aaa 1,000 960,530
------------
5,698,538
------------
COLORADO--1.7%
Denver City and County School District 01
Pension Taxable 6.76%, 12/15/07(e)....... Aaa 1,900 1,819,174
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
CONNECTICUT--1.6%
Mashantucket Western Pequot Tribe Revenue
Taxable Series A 6.91%, 9/1/12........... Aaa 1,100 1,046,771
Mashantucket Western Pequot Tribe Revenue
Taxable Series A 144A 6.57%, 9/1/13(b)... Aaa $ 715 $ 655,326
------------
1,702,097
------------
FLORIDA--1.8%
Tampa Solid Waste System Revenue Taxable
Series A 6.43%, 10/1/08.................. Aaa 930 858,604
University of Miami Exchangeable Revenue
Taxable Series A 7.40%, 4/1/11(d)........ Aaa 210 203,257
University of Miami Exchangeable Revenue
Taxable Series A 7.65%, 4/1/20(d)........ Aaa 825 788,857
------------
1,850,718
------------
ILLINOIS--1.8%
Illinois Educational Facilities
Authority-Loyola University Revenue
Taxable Series A 7.84%, 7/1/24(e)........ Aaa 1,925 1,869,541
MASSACHUSETTS--0.8%
Massachusetts State Port Authority
Revenue Taxable Series C 6%, 7/1/01...... Aa 870 860,630
NEW JERSEY--0.4%
New Jersey Sports & Exposition Authority
State Contract Taxable Series B 7.375%,
3/1/13................................... Aaa 470 461,751
NEW YORK--0.4%
New York State Taxable Series D 6.75%,
6/15/09.................................. A 400 376,456
PENNSYLVANIA--0.8%
Philadelphia Authority For Industrial
Development Pension Funding Retirement
Systems Revenue Taxable Series A 5.79%,
4/15/09.................................. Aaa 1,000 887,090
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Duff & Phelps Institutional Managed Bond Portfolio
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
TEXAS--0.2%
Dallas-Fort Worth International Airport
Facilities Improvement Revenue Taxable
6.45%, 11/1/08........................... Aaa $ 200 $ 186,530
--------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $16,600,790) 15,712,525
--------------------------------------------------------------------------
ASSET-BACKED SECURITIES--4.9%
American Express Credit Account Master
Trust 99-2, A 5.95%, 12/15/06............ Aaa 975 933,258
Capita Equipment Receivables Trust 97-1,
B 6.45%, 8/15/02......................... Aa 600 591,844
Countrywide Asset-Backed Certificates
99-3, AF5 7.73%, 9/25/27................. Aaa 1,625 1,621,219
First USA Credit Card Master Trust 96-6,
A 6.775%, 7/10/06........................ Aaa 100 100,031
Premier Auto Trust 97-3, B 6.52%,
1/6/03................................... A 850 843,013
Team Fleet Financing Corp. 98-3A, C
6.63%, 10/25/04.......................... BBB(c) 1,150 1,074,531
--------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $5,225,912) 5,163,896
--------------------------------------------------------------------------
CORPORATE BONDS--11.6%
AIRLINES--1.6%
America West Airlines Series AMBC 144A
8.057%, 7/2/20(b)........................ Aaa 585 585,000
Northwest Airlines Corp. Series 2000-1
Class G 8.072%, 4/1/21................... Aaa 1,065 1,081,177
------------
1,666,177
------------
BROADCASTING (TELEVISION, RADIO & CABLE)--1.0%
Adelphia Communications Corp. Series B
8.375%, 2/1/08........................... B 590 521,412
Charter Communications Holdings LLC 10%,
4/1/09................................... B 560 540,400
------------
1,061,812
------------
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
COMMUNICATIONS EQUIPMENT--1.9%
Crown Castle International Corp. 10.375%,
5/15/11.................................. B $ 825 $ 508,406
Metromedia Fiber Network, Inc. Series B
10%, 11/15/08............................ B 350 346,500
Spectrasite Holdings, Inc. 144A 10.75%,
3/15/00(b)............................... B 530 531,325
Williams Communications 10.70%,
10/1/07.................................. B 575 573,563
------------
1,959,794
------------
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--1.4%
Mohegan Tribal Gaming 8.125%, 1/1/06..... Ba 250 238,750
Mohegan Tribal Gaming 8.75%, 1/1/09...... Ba 250 238,750
Park Place Entertainment Corp. 7.875%
12/15/05................................. Ba 530 499,525
Station Casinos, Inc. 144A W.I. 9.875%,
7/1/10(b)................................ B 520 522,600
------------
1,499,625
------------
HEALTH CARE (GENERIC AND OTHER)--0.5%
ICN Pharmaceutical Inc. 144A 8.75%,
11/15/08(b).............................. Ba 505 499,950
HOMEBUILDING--0.3%
Lennar Corp. 7.625%, 3/1/09.............. Ba 385 336,394
INSURANCE (PROPERTY-CASUALTY)--0.5%
HSB Capital I Series B 7.19%, 7/15/27.... BBB(c) 550 508,895
SERVICES (COMMERCIAL & CONSUMER)--1.0%
ARA Services, Inc. 10.625%, 8/1/00....... Baa 53 53,066
Service Corp. International 6%,
12/15/05................................. Ba 880 475,200
United Rentals, Inc. Series B 9.25%,
1/15/09.................................. B 575 521,813
------------
1,050,079
------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.7%
Voicestream Wireless Holdings 10.375%,
11/15/09................................. B 745 774,800
TELECOMMUNICATIONS (LONG DISTANCE)--1.6%
Interamericas Communications Corp. 14%,
10/27/07................................. NR 1,030 1,163,900
</TABLE>
8 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>
TELECOMMUNICATIONS (LONG DISTANCE)--CONTINUED
Nextlink Communications, Inc. 10.75%,
11/15/08................................. B $ 560 $ 554,400
------------
1,718,300
------------
TEXTILES (HOME FURNISHINGS)--0.6%
Westpoint Stevens, Inc. 7.875%,
6/15/05.................................. B 735 617,400
WASTE MANAGEMENT--0.5%
Browning-Ferris Industries 7.40%,
9/15/35.................................. Ba 770 546,700
--------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $12,281,837) 12,239,926
--------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED
SECURITIES--26.4%
CS First Boston Mortgage Securities Corp.
97-SPCE C 7.077%, 2/20/07................ A+(c) 1,450 1,400,609
CS First Boston Mortgage Securities Corp.
98-C2, A1 5.96%, 12/15/07................ Aaa 623 594,551
CS First Boston Mortgage Securities Corp.
99-C1, A2 7.29%, 9/15/09................. Aaa 1,115 1,098,972
Chase Mortgage Finance Corp. 00-S1, A7
7.25%, 2/25/30........................... Aaa 1,550 1,468,141
Commercial Mortgage Asset Trust 99-C1 D
7.35%, 10/17/13.......................... Baa 2,400 2,140,500
Countrywide Home Loans 99-11, A16 7.25%,
11/15/29................................. AAA(c) 1,905 1,839,516
Criimi Mae Trust I 96-C1, A2 7.56%,
6/30/33.................................. BBB(c) 1,475 1,395,719
DLJ Commercial Mortgage Corp. 99-CG1, A1B
6.46%, 1/10/09........................... Aaa 1,250 1,160,351
G.E. Capital Mortgage Services, Inc.
96-8, 2A5 7.50%, 5/25/26................. AAA(c) 262 256,661
General Growth Properties 97-1, C2
6.806%, 11/15/07......................... A 1,700 1,589,500
LB Commercial Conduit Mortgage Trust
99-C2, A2 7.325%, 9/15/09................ Aaa 1,670 1,646,776
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
Nationslink Funding Corp. 99-2, A2C
7.229%, 10/20/08......................... AAA(c) $ 1,000 $ 981,250
Norwest Asset Securities Corp. 99-5, B2
6.25%, 3/25/14........................... A(c) 1,700 1,583,927
Norwest Asset Securities Corp. 99-10, B2
6.25%, 4/25/14........................... A(c) 1,138 1,059,493
Residential Accredit Loans, Inc. 96-QS4,
AI10 7.90%, 8/25/26...................... AAA(c) 900 890,437
Residential Accredit Loans, Inc. 99-QS14,
A5 7.75%, 11/25/29....................... AAA(c) 2,622 2,593,732
Residential Funding Mortgage Securities I
93-S25, M3 6.50%, 7/25/08................ BBB+(c) 503 482,723
Residential Funding Mortgage Securities I
96-S20, A7 7.75%, 9/25/26................ AAA(c) 316 313,760
Residential Funding Mortgage Securities I
98-S2, A4 7%, 1/25/28.................... AAA(c) 380 358,436
Ryland Mortgage Securities Corp. III
92-A, 1A 8.257%, 3/29/30................. A-(c) 331 329,369
Structured Asset Securities Corp. 98-C3A,
H 7.201%, 4/25/03........................ Baa(d) 1,525 1,491,326
Structured Asset Securities Corp. 95-C1,
D 7.375%, 9/25/24........................ A+(c) 1,865 1,858,771
Structured Asset Securities Corp. 95-C4,
D 7%, 6/25/26............................ AA(c) 448 445,709
Vanderbilt Mortgage Finance 99-C, 1A3
7.385%, 1/7/20........................... Aaa 850 835,922
--------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $28,283,997) 27,816,151
--------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--10.0%
BULGARIA--1.6%
Republic of Bulgaria FLIRB Bearer Series
A 2.75%, 7/28/12(d)...................... B 2,250 1,657,968
CROATIA--1.5%
Croatia Series B 7.0625%, 7/31/06(d)..... Baa 609 575,462
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Duff & Phelps Institutional Managed Bond Portfolio
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
CROATIA--CONTINUED
Croatia Series A 7.0625%, 7/31/10(d)..... Baa $ 1,045 $ 956,383
------------
1,531,845
------------
MEXICO--3.8%
United Mexican States 11.375%, 9/15/16... Baa 1,295 1,484,070
United Mexican States 11.50%, 5/15/26.... Baa 2,115 2,551,219
------------
4,035,289
------------
PANAMA--0.6%
Republic of Panama 9.375%, 4/1/29........ Ba 620 597,060
PHILIPPINES--1.6%
Republic of Philippines 9.875%,
1/15/19.................................. Ba 2,080 1,705,600
POLAND--0.9%
Poland Bearer PDI 6%, 10/27/14(d)........ Baa 1,080 963,900
--------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $10,508,573) 10,491,662
--------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--9.2%
BERMUDA--0.5%
Global Crossing Holding Ltd. 9.125%
11/15/06................................. Ba 505 486,062
CHILE--1.4%
Compania Sud Americana de Vapores 144A
7.375%, 12/8/03(b)....................... BBB(c) 175 169,340
Empresa Nacional de Electricidad SA
8.50%, 4/1/09............................ Baa 175 170,801
Petropower I Funding Trust 144A 7.36%,
2/15/14(b)............................... BBB(c) 1,308 1,143,376
------------
1,483,517
------------
LUXEMBOURG--0.5%
PTC International Finance II SA 11.25%,
12/1/09.................................. B 540 549,450
MEXICO--2.7%
Banco Nacional de Mexico SA US$
Remittance Master Trust 144A 7.57%,
12/31/00(b).............................. A-(c) 461 459,248
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------- ------------
<S> <C> <C> <C>
MEXICO--CONTINUED
Grupo Industrial Durango 12.625%,
8/1/03................................... B $ 520 $ 522,600
Grupo Iusacell SA de CV 14.25%, 12/1/06.. B 965 1,010,838
Pemex Finance Ltd. 9.69%, 8/15/09........ Baa 770 824,786
------------
2,817,472
------------
NETHERLANDS--2.1%
Deutsche Telekom International Finance BV
W.I. 8%, 6/15/10......................... Aa 1,700 1,713,746
United Pan-Europe Communications NV
10.875, 11/1/07.......................... B 540 488,700
------------
2,202,446
------------
POLAND--0.5%
TPSA Finance BV 144A 7.75%, 12/10/08(b).. Baa 610 573,400
VENEZUELA--1.5%
PDVSA Finance Ltd. Tranche H 9.375%,
11/15/07................................. Baa 140 136,878
PDVSA Finance Ltd. Series 1998-IC 6.80%,
11/15/08................................. Baa 1,350 1,120,095
PDVSA Finance Ltd. Tranche I 9.75%,
2/15/10.................................. Baa 355 347,389
------------
1,604,362
------------
--------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $9,984,767) 9,716,709
--------------------------------------------------------------------------
<CAPTION>
SHARES
-------
PREFERRED STOCKS--0.7%
<S> <C> <C> <C>
AGENCY NON MORTGAGE-BACKED SECURITIES--0.7%
Home Ownership Funding 2, Step-down Pfd.
144A 13.338%(b)(d)....................... 900 700,254
--------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $720,161) 700,254
--------------------------------------------------------------------------
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix-Duff & Phelps Institutional Managed Bond Portfolio
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C> <C>
COMMON STOCKS--0.3%
PAPER & FOREST PRODUCTS--0.0%
Northampton Pulp LLC(g).................. 1,955 $ 26,881
TELECOMMUNICATIONS (LONG DISTANCE)--0.3%
FirstCom Corp.(f)........................ 17,625 265,477
--------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $261,917) 292,358
--------------------------------------------------------------------
MUTUAL FUNDS--4.9%
Dreyfus Municipal Income Fund, Inc....... 37,800 285,862
Dreyfus Strategic Municipal Fund, Inc.... 71,800 574,400
Munienhanced Fund, Inc................... 8,600 83,044
Munivest Fund II, Inc.................... 46,700 535,591
Muniyield Fund, Inc...................... 43,000 532,125
Muniyield Insured Fund, Inc.............. 54,800 681,575
Muniyield New York Insured Fund, Inc..... 30,412 345,936
Nuveen Insured Municipal Opportunity
Fund, Inc................................ 60,000 780,000
Nuveen Municipal Value Fund, Inc......... 95,000 801,563
Nuveen Performance Plus Municipal Fund,
Inc...................................... 44,000 530,750
--------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(IDENTIFIED COST $4,946,533) 5,150,846
--------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--99.3%
(IDENTIFIED COST $106,160,429) 104,529,754
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ------- ------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--0.5%
COMMERCIAL PAPER--0.5%
Koch Industries, Inc. 6.89%, 7/3/00..... A-1+ $ 550 $ 549,789
--------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $549,789) 549,789
--------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.8%
(IDENTIFIED COST $106,710,218) 105,079,543(a)
Cash and receivables, less liabilities--0.2% 257,755
------------
NET ASSETS--100.0% $105,337,298
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $1,231,514 and gross
depreciation of $3,022,785 for federal income tax purposes. At June 30,
2000, the aggregate cost of securities for federal income tax purposes was
$106,870,814.
(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 to qualified institutional buyers. At June 30, 2000,
these securities amounted to a value of $5,839,819 or 5.5% of net assets.
(c) As rated by Standard & Poor's, Fitch or Duff & Phelps.
(d) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
(e) All or a portion segregated as collateral.
(f) Non-income producing.
(g) Security valued at fair value as determined in good faith by or under the
direction of the Trustees.
See Notes to Financial Statements 11
<PAGE>
Phoenix Duff & Phelps Institutional Managed Bond Portfolio
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $106,710,218) $ 105,079,543
Receivables
Investment securities sold 10,138,704
Interest and dividends 1,273,415
Fund shares sold 6,638
Other receivables 169
Prepaid expenses 1,193
--------------
Total assets 116,499,662
--------------
LIABILITIES
Payables
Custodian 32,450
Investment securities purchased 11,030,560
Investment advisory fee 18,562
Financial agent fee 11,283
Transfer agent fee 10,552
Distribution fee 1,262
Accrued expenses 57,695
--------------
Total liabilities 11,162,364
--------------
NET ASSETS $ 105,337,298
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 116,311,259
Undistributed net investment income 52,168
Accumulated net realized loss (9,395,454)
Net unrealized depreciation (1,630,675)
--------------
NET ASSETS $ 105,337,298
==============
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $99,211,772) 3,355,223
Net asset value and offering price per share $29.57
CLASS Y
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $6,125,526) 207,109
Net asset value and offering price per share $29.58
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 4,104,252
Dividends 177,393
--------------
Total investment income 4,281,645
--------------
EXPENSES
Investment advisory fee 238,159
Distribution fee, Class Y 8,061
Financial agent fee 65,033
Professional 22,126
Transfer agent 20,717
Registration 15,976
Custodian 11,577
Trustees 9,972
Printing 5,493
Miscellaneous 18,499
--------------
Total expenses 415,613
Less expenses borne by investment adviser (116,468)
--------------
Net expenses 299,145
--------------
NET INVESTMENT INCOME 3,982,500
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (1,960,643)
Net change in unrealized appreciation (depreciation) on
investments 835,520
--------------
NET LOSS ON INVESTMENTS (1,125,123)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,857,377
==============
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Phoenix Duff & Phelps Institutional Managed Bond Portfolio
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended
(Unaudited) 12/31/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 3,982,500 $ 6,975,938
Net realized gain (loss) (1,960,643) (5,051,850)
Net change in unrealized appreciation
(depreciation) 835,520 (400,998)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,857,377 1,523,090
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class X (3,650,609) (6,552,804)
Net investment income, Class Y (219,544) (423,134)
In excess of net investment income,
Class X -- (89,248)
In excess of net investment income,
Class Y -- (5,763)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (3,870,153) (7,070,949)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (67,549
and 643,317 shares, respectively) 2,032,926 19,772,610
Net asset value of shares issued from
reinvestment of distributions
(96,739 and 180,452 shares,
respectively) 2,845,536 5,414,358
Cost of shares repurchased (157,039
and 1,075,587 shares, respectively) (4,756,401) (33,215,963)
------------ ------------
Total 122,061 (8,028,995)
------------ ------------
CLASS Y
Proceeds from sales of shares (18,178
and 41,659 shares, respectively) 548,523 1,278,403
Net asset value of shares issued from
reinvestment of distributions
(7,465 and 14,291 shares,
respectively) 219,542 428,895
Cost of shares repurchased (48,872 and
63,654 shares, respectively) (1,467,622) (1,967,205)
------------ ------------
Total (699,557) (259,907)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (577,496) (8,288,902)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (1,590,272) (13,836,761)
------------ ------------
NET ASSETS
Beginning of period 106,927,570 120,764,331
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$52,168 AND DISTRIBUTION IN EXCESS
OF NET INVESTMENT INCOME OF
($60,179), RESPECTIVELY] $105,337,298 $106,927,570
============ ============
</TABLE>
See Notes to Financial Statements 13
<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 FROM
ENDED YEAR ENDED DECEMBER 31, INCEPTION
6/30/00 ----------------------------------------- 3/1/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 29.88 $ 31.47 $ 33.17 $ 33.98 $ 33.84
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 1.13(5) 2.01 2.26(5) 2.37(5) 2.03(5)
Net realized and unrealized gain
(loss) (0.32) (1.57) (1.58) 0.85 0.69
------- -------- -------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS 0.81 0.44 0.68 3.22 2.72
------- -------- -------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment
income (1.12) (2.00) (2.09) (2.42) (1.96)
Dividends from net realized gains -- -- -- (1.43) (0.61)
In excess of net investment
income -- (0.03) (0.16) (0.18) (0.01)
In excess of accumulated net
realized gains -- -- (0.13) -- --
------- -------- -------- ------- -------
TOTAL DISTRIBUTIONS (1.12) (2.03) (2.38) (4.03) (2.58)
------- -------- -------- ------- -------
Change in net asset value (0.31) (1.59) (1.70) (0.81) 0.14
------- -------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 29.57 $ 29.88 $ 31.47 $ 33.17 $ 33.98
======= ======== ======== ======= =======
Total return 2.73%(2) 1.47% 1.99% 9.75% 8.24%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $99,212 $100,044 $113,273 $72,747 $71,482
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 0.55%(1) 0.55% 0.55% 0.55% 0.55%(1)
Net investment income 7.52%(1) 6.54% 6.89% 6.92% 7.15%(1)
Portfolio turnover 38%(2) 142% 105% 176% 199%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS Y
------------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED DECEMBER 31, INCEPTION
6/30/00 ---------------------------------------- 3/1/96 TO
(UNAUDITED) 1999 1998 1997 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 29.89 $ 31.47 $ 33.18 $ 33.97 $ 33.84
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 1.09(5) 1.96 2.18(5) 2.27(5) 1.98(5)
Net realized and unrealized gain
(loss) (0.32) (1.59) (1.59) 0.88 0.66
------- -------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS 0.77 0.37 0.59 3.15 2.64
------- -------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment
income (1.08) (1.92) (2.02) (2.33) (1.89)
Dividends from net realized gains -- -- -- (1.43) (0.61)
In excess of net investment
income -- (0.03) (0.15) (0.18) (0.01)
In excess of accumulated net
realized gains -- -- (0.13) -- --
------- -------- ------- ------- -------
TOTAL DISTRIBUTIONS (1.08) (1.95) (2.30) (3.94) (2.51)
------- -------- ------- ------- -------
Change in net asset value (0.31) (1.58) (1.71) (0.79) 0.13
------- -------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 29.58 $ 29.89 $ 31.47 $ 33.18 $ 33.97
======= ======== ======= ======= =======
Total return 2.60%(2) 1.26% 1.72% 9.52% 7.98%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $6,125 $6,884 $7,491 $6,725 $7,010
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 0.80%(1) 0.80% 0.80% 0.80% 0.80%(1)
Net investment income 7.27%(1) 6.29% 6.63% 6.65% 6.91%(1)
Portfolio turnover 38%(2) 142% 105% 176% 199%(2)
</TABLE>
(1) Annualized.
(2) Not annualized.
(3) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 0.77%,
0.74%, 0.77%, 0.77%, and 0.85% for the periods ended June 30, 2000,
December 31, 1999, 1998, 1997, and 1996, respectively.
(4) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.02%,
0.99%, 1.02%, 1.02%, and 1.10% for the periods ended June 30, 2000,
December 31, 1999, 1998, 1997, and 1996, respectively.
(5) Computed using average shares outstanding.
14 See Notes to Financial Statements
<PAGE>
PHOENIX DUFF & PHELPS INSTITUTIONAL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (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. Two Portfolios are offered for sale: Growth Stock Portfolio and Managed
Bond Portfolio.
Each Portfolio has distinct investment objectives. The Growth Stock Portfolio
seeks long-term appreciation of capital. The Managed Bond Portfolio seeks to
generate a high level of current income and capital appreciation.
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 accounting principles
generally accepted in the United States 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, 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 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
15
<PAGE>
PHOENIX DUFF & PHELPS INSTITUTIONAL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (UNAUDITED) (CONTINUED)
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 is Phoenix Investment Counsel, Inc. ("PIC"). PIC is
an indirect, majority-owned subsidiary of Phoenix Home Life Mutual Insurance
Company ("PHL"). As compensation for its services to the Fund, the Adviser is
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 Billion Billion
--------- ------- -------
<S> <C> <C>
Growth Stock Portfolio.................. 0.60% 0.55%
Managed Bond Portfolio.................. 0.45% 0.40%
</TABLE>
The Adviser has voluntarily agreed to assume total fund operating expenses of
each Portfolio, 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>
Growth Stock Portfolio.................. 0.70% 0.95% December 31, 2001
Managed Bond Portfolio.................. 0.55% 0.80% December 31, 2001
</TABLE>
Seneca Capital Management LLC ("Seneca") became the subadviser to the Growth
Stock Portfolio effective August 6, 1999. For its services, Seneca is paid a fee
by PIC ranging from 0.10% to 0.275% of the average daily net assets of the
Growth Stock Portfolio. A majority of the equity interests of Seneca are owned
by Phoenix Investment Partners Ltd. ("PXP"), an indirect majority-owned
subsidiary of PHL.
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,
16
<PAGE>
PHOENIX DUFF & PHELPS INSTITUTIONAL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (UNAUDITED) (CONTINUED)
2000, $587 was retained by the Distributor, $1,023 was paid out to unaffiliated
participants, and $33,237 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, 2000, transfer
agent fees were $40,417 of which PEPCO retained $28 which is net of fees paid to
State Street.
At June 30, 2000, PHL and affiliates held Portfolio shares which aggregated
the following:
<TABLE>
<CAPTION>
Aggregate
Net Asset
Shares Value
------- ---------
<S> <C> <C>
Growth Stock Portfolio-Class X.......... 7 $ 246
Growth Stock Portfolio-Class Y.......... 6,960 243,322
Managed Bond Portfolio-Class X.......... 4 118
Managed Bond Portfolio-Class Y.......... 4,225 124,933
</TABLE>
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended June 30, 2000
(excluding U.S. Government and agency securities and short-term securities)
aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
-------------- --------------
<S> <C> <C>
Growth Stock Portfolio.................. $35,799,388 $34,862,709
Managed Bond Portfolio.................. 33,599,693 34,684,632
</TABLE>
Purchases and sales of U.S. Government and agency securities during the six
months ended June 30, 2000, aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
-------------- --------------
<S> <C> <C>
Managed Bond Portfolio.................. $5,677,932 $6,167,728
</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.
5. OTHER
As of June 30, 2000, 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>
Growth Stock Portfolio.................. 3 45.8%
</TABLE>
6. CAPITAL LOSS CARRYOVERS
The Managed Bond Portfolio has capital loss carryover of $6,473,513, expiring
in 2007 which may be used to offset future capital gains.
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.
17
<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
William R. Moyer, 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
Michael Kearney, Vice President
Richard D. Little, Vice President
Diane L. Mustain, 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
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
CUSTODIAN
The Chase Manhattan Bank
1 Chase Manhattan Plaza
Floor 3B
New York, New York 10081
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
Shareholder Services 1-800-814-1897 (option 3)
<PAGE>
Phoenix Equity Planning Corporation
PO Box 2200
Enfield CT 06083-2200
[LOGO] PHOENIX
INVESTMENT PARTNERS
PXP 091 (8/00)
