<PAGE>
Phoenix Investment Partners
September 30, 1998
Seneca
Annual Report
- Phoenix-Seneca
Growth Fund
- Phoenix-Seneca
Mid-Cap "EDGE"-SM- Fund
- Phoenix-Seneca
Bond Fund
- Phoenix-Seneca
Real Estate Securities
Fund
[LOGO] PHOENIX
INVESTMENT PARTNERS
<PAGE>
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.
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
[PHOTO] It seems almost incredible that just four months ago Alan
Greenspan opined that the current U.S. economy was "the most
GAIL P. SENECA impressive I have seen in my lifetime." Now, such optimism is
sorely lacking. A deep gloom shrouds the investment community.
What happened in just four short months? Studies of the
causes of the current crisis will provide fodder for doctoral dissertations for
years. For our more practical and timely purposes, let us simply say that the
Russian debt moratorium in August was an alarm heard around the world. Losses in
Russian securities forced liquidation of emerging-market stocks and bonds from
Asia to Latin America. To offset emerging-market losses, traders sold securities
that still had gains, namely U.S. and European equities.
As we write, this self-perpetuating liquidation process continues. Investment
and commercial banks were deeply involved in emerging markets. As they now
struggle to rebuild their capital and recoup their losses, they are unwilling to
assume new risk of any sort. Consequently, the markets they make in bonds and
over-the-counter stocks have been badly damaged. Bid-to-offer spreads are wide
and liquidity is minimal. In this fragile state, major deleveraging of hedge
funds is occurring, further disrupting orderly market mechanisms.
On a daily basis, securities are reflecting the pain of the market makers far
more accurately than they are reflecting the fundamental values of the
securities traded. Corporate bonds, mortgage-backed bonds and even U.S.
Treasuries are trading at historically "cheap" levels relative to the current
benchmark Treasury securities.
Financing in the bond and stock market is virtually unavailable. Evidence of a
credit crunch in the form of reduced bank lending is developing. What began as a
default by Russia has turned into tightened credit worldwide. Credit crunches
are not merely financial events; they sap economic momentum, making it all but
impossible for companies to grow. Without credit availability, we believe future
growth projections for the U.S. economy and corporate profits will moderate. As
is typical of stock market behavior, future potential is quickly discounted in
present-day prices. Thus, stock prices now reflect a negative outlook for
virtually all companies, regardless of industry, geography, or business
strategy.
Investors in this fast moving, illiquid and fear-driven environment must
consider two key questions. Will the U.S. economy succumb to the emerging-market
economic downturn? What can forestall the Asian contagion? The answers to these
questions should determine how investors position their portfolios to weather
the current storm.
We expect the U.S. will maintain growth momentum into next year. Ours is not
an export-driven economy; domestic demand is the key
1
<PAGE>
MESSAGE FROM THE PRESIDENT (CONTINUED)
engine of growth. Consumers, despite the recent stock market drop, are in
remarkably good shape. Currently, unemployment is low, wages are rising and
inflation is not eroding consumer wealth. We further believe that policy makers
have the tools to forestall a debacle in a worldwide economy, and that they have
begun to employ them. Policy makers have responded slowly to the crisis, but it
is clear that they now understand its severity and the necessity to act.
We expect continued good news on inflation and interest rates. In our view,
the Fed and other central banks are likely to ease rates as much as is required
to restore confidence in the banking system. We feel that this will translate
into large interest rate cuts, especially by the U.S. Federal Reserve.
Short-term rates may settle at 3%, as they did during the last banking crisis in
the early 1990s. Long-term Treasury rates have already reflected this reality
and probably have completed most of their downside move. Non-Treasury bonds
should experience meaningful declines in yield over the next 12 months.
Our outlook, then, is constructive for both U.S. stocks and bonds. We look
forward to a time when stocks and bonds are again evaluated on their fundamental
investment merits and normal market-making mechanisms are restored. Until then,
we believe wisdom lies in maintaining fundamentally strong investment positions,
avoiding panic liquidations, and diligently assessing company prospects in the
light of slower growth prospects in the coming year
/s/ Gail P. Seneca
Gail P. Seneca
October 12, 1998
2
<PAGE>
TABLE OF CONTENTS
Phoenix-Seneca Growth Fund.................................................. 4
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund...................................... 13
Phoenix-Seneca Bond Fund.................................................... 22
Phoenix-Seneca Real Estate Securities Fund.................................. 34
Notes to Financial Statements............................................... 42
3
<PAGE>
PHOENIX-SENECA GROWTH FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGERS,
GAIL SENECA, PH.D. AND RICHARD LITTLE, CFA
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: Phoenix-Seneca Growth Fund seeks long-term capital appreciation by investing
primarily in common stocks.
Q: HOW DID THE PORTFOLIO PERFORM FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1998?
A: For the fiscal year, the Phoenix-Seneca Growth Fund Class X shares earned
8.48%, and Class A shares returned 7.93% compared with 9.15% for the S&P 500
Index.(1) Since their inception on July 1, 1998, Class B shares and Class C
shares returned (13.47)% and (13.52)%, respectively, compared with (11.00)% for
the S&P 500 Index. All performance figures assume reinvestment of distributions
and exclude the effect of sales charges.
Q: HOW WAS THE FUND AFFECTED BY EVENTS AROUND THE WORLD?
A: The growing economic crisis in Russia, Japan and the emerging markets led to
devastating results across all major U.S. stock market indices. Investors
flocked to the most highly liquid and "lowest risk" investments available. U.S.
Treasuries were the only true beneficiaries of this trend.
The largest U.S. stocks outperformed smaller capitalization companies, which
meant only that they declined less. The S&P 500 Index was down 9.9%, while the
Russell 2000 Index, a measure of small-company performance, was down 20.2% for
the quarter. Even within the S&P 500 Index, the largest stocks outperformed.
Our "growth with controlled risk" strategy produced strong results relative
to the average stock fund but underperformed the S&P 500 Index during the third
quarter. The year-to-date return remains positive and continues to outperform
our competitors and the market benchmarks. For the nine months through September
30, Class X shares are up nearly 6.74% versus a negative return of 6.58% for the
average manager in a peer universe of 256 funds with an investment objective of
capital appreciation, according to Lipper Analytics Services, Inc. The
year-to-date return for the S&P 500 Index is 6.14%.
Q: HOW DID SOME OF THE STOCKS IN THE PORTFOLIO PERFORM?
A: Despite the market carnage, some of our stock holdings advanced for the
quarter: Dell Computer (microcomputers), EMC Corp. (memory devices), Intel Corp
(semiconductor company) McKesson (drug distributor), and Sun America (insurance)
to name a few. Stocks in our portfolio continue to produce significantly
above-market earnings growth rates.
(1)THE S&P 500 INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF STOCK MARKET
TOTAL RETURN PERFORMANCE. THE INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
4
<PAGE>
PHOENIX-SENECA GROWTH FUND (CONTINUED)
Q: WHAT IS YOUR OUTLOOK FOR THE MARKET?
A: Unless the fear of global depression is realized, we believe U.S.
corporations should continue to exhibit profit growth in the coming year. This,
and a low inflation, low interest rate environment, should bode well for the
stock market in 1999.
Market volatility and panic liquidation is now so intense that investors can
find no place in the market that has been unaffected by recent events. When the
storm clouds dissipate, as we believe they will, diversified portfolios of high-
quality stocks, such as ours, should be well positioned.
OCTOBER 14, 1998
5
<PAGE>
Phoenix-Seneca Growth Fund
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS(1)
(AS OF 9/30/98)
1 YEAR SINCE INCEPTION
-------- ---------------
<S> <C> <C>
X Shares(2) (INCEPTION: 3/8/96)
NAV 8.48% 28.36%
A Shares(2) (INCEPTION: 3/8/96)
NAV 7.93% 27.41%
POP 2.81% 25.00%
B Shares(2) (INCEPTION: 7/1/98)
CDSC - (17.80)%
No CDSC - (13.47)%
C Shares(2) (INCEPTION: 7/1/98)
CDSC - (14.39)%
No CDSC - (13.52)%
S&P 500 Index 9.15% note 3
</TABLE>
<TABLE>
<CAPTION>
SECTOR WEIGHTINGS (AS A PERCENTAGE OF EQUITY HOLDINGS)
<S> <C>
Technology 23%
Consumer Staples 20%
Health Care 15%
Financials 12%
Capital Goods 10%
Other 8%
Energy 7%
Consumer Cyclicals 5%
</TABLE>
(1) Total returns are historical and include changes in share price
and the reinvestment of both dividends and capital gains distributions.
(2) "POP" (Public Offering Price) total returns include the effect of
the maximum front-end 4.75% sales charge. "NAV" (Net Asset Value)
total returns do not include the effect of any sales charge. A contingent
deferred sales charge (CDSC) is applied to redemptions of certain
classes of shares that do not have a sales charge applied at the time
of purchase. CDSC charges for B shares decline from 5% to 0%
over a five year period. CDSC charges for C shares are 1% in the
first year and 0% thereafter.
(3) The S&P 500 Index performance is 22.64% for Class X and A
and (11.00)% for Class B and C, respectively, since each class
inception date as noted.
All returns represent past performance which may not be indicative
of future performance. The investment return and principal value
of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
<TABLE>
<CAPTION>
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
Phoenix-Seneca Phoenix-Seneca
Growth Class X Growth Class A
at NAV(4) with 4.75% sales charge(4) S&P 500 Index(5)
-------------- -------------------------- ----------------
<S> <C> <C> <C>
3/8/96 $10,000 $9,524 $10,000
9/30/96 $13,740 $12,981 $10,992
9/30/97 $17,486 $16,422 $15,462
9/30/98 $18,968 $17,724 $16,876
</TABLE>
(4) THIS CHART ILLUSTRATES NAV RETURNS ON CLASS X SHARES AND POP
RETURNS ON CLASS A SHARES SINCE INCEPTION. RETURNS ON CLASS B AND
CLASS C SHARES WILL VARY DUE TO DIFFERING SALES CHARGES.
(5) THE S&P 500 INDEX IS AN UNMANAGED INDEX CONSIDERED TO BE
REPRESENTATIVE OF THE U.S. STOCK MARKET AND INCLUDES REINVESTED
DIVIDENDS.
6
<PAGE>
Phoenix-Seneca Growth Fund
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TEN LARGEST EQUITY HOLDINGS AT SEPTEMBER 30, 1998
(AS A PERCENTAGE OF EQUITY HOLDINGS)
<S> <C> <C>
1. McKesson Corp. 4.2%
A LEADING U.S. DRUG DISTRIBUTOR
2. MCI WorldCom, Inc. 3.7%
COMPREHENSIVE TELECOMMUNICATIONS SERVICE PROVIDER
3. General Electric Co. 3.6%
DIVERSIFIED MANUFACTURING AND FINANCIAL SERVICES
4. Bristol-Myers Squibb Co. 3.4%
COMPREHENSIVE HEALTH-CARE COMPANY
5. Dell Computer Corp. 3.3%
ONE OF THE WORLD'S LEADING COMPUTER VENDORS
6. Microsoft Corp. 3.3%
WORLD'S LEADING COMPUTER SOFTWARE COMPANY
7. Cardinal Health, Inc. 3.2%
WHOLESALE DISTRIBUTOR OF PHARMACEUTICALS AND HEALTH-CARE RELATED PRODUCTS
8. Anheuser-Busch Companies, Inc. 3.2%
WORLD'S LARGEST BREWER IN ADDITION TO OTHER DIVERSIFIED OPERATIONS
9. Monsanto Co. 3.2%
MANUFACTURER OF AGRICULTURAL, PHARMACEUTICAL, FOOD, AND CHEMICAL PRODUCTS
10. McDonald's Corp. 3.1%
FAST FOOD RESTAURANT OPERATOR
</TABLE>
INVESTMENTS AT SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
SHARES VALUE
------- ---------
<S> <C> <C>
COMMON STOCKS--91.0%
AUTO PARTS & EQUIPMENT--2.0%
Dana Corp............................................ 26,510 $ 989,154
---------
BANKS (MONEY CENTER)--1.6%
NationsBank Corp..................................... 14,700 786,450
---------
BEVERAGES (ALCOHOLIC)--3.0%
Anheuser-Busch Companies, Inc........................ 26,840 1,449,360
---------
BROADCASTING (TELEVISION, RADIO & CABLE)--2.0%
Chancellor Media Corp. (b)........................... 29,560 986,565
---------
CHEMICALS (DIVERSIFIED)--2.9%
Monsanto Co.......................................... 25,480 1,436,435
---------
COMMUNICATIONS EQUIPMENT--1.1%
Lucent Technologies, Inc............................. 7,860 542,831
---------
COMPUTERS (HARDWARE)--7.0%
Compaq Computer Corp................................. 29,880 944,955
Dell Computer Corp. (b).............................. 22,920 1,506,990
International Business Machines Corp................. 7,580 970,240
---------
3,422,185
---------
COMPUTERS (NETWORKING)--1.4%
Cisco Systems, Inc. (b).............................. 11,380 703,426
---------
COMPUTERS (PERIPHERALS)--1.9%
EMC Corp. (b)........................................ 16,500 943,594
---------
<CAPTION>
SHARES VALUE
------- ---------
<S> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--3.1%
Microsoft Corp. (b).................................. 13,690 $1,506,756
---------
CONSUMER FINANCE--2.3%
Household International, Inc......................... 29,350 1,100,625
---------
DISTRIBUTORS (FOOD & HEALTH)--3.0%
Cardinal Health, Inc................................. 14,110 1,456,857
---------
ELECTRICAL EQUIPMENT--3.3%
General Electric Co.................................. 20,480 1,629,440
---------
ELECTRONICS (SEMICONDUCTORS)--4.5%
Intel Corp........................................... 13,800 1,183,350
Texas Instruments, Inc............................... 19,550 1,031,262
---------
2,214,612
---------
FINANCIAL (DIVERSIFIED)--3.2%
American Express Co.................................. 8,770 680,771
SunAmerica, Inc...................................... 14,320 873,520
---------
1,554,291
---------
FOODS--4.9%
General Mills, Inc................................... 14,340 1,003,800
Hershey Foods Corp................................... 20,210 1,383,122
---------
2,386,922
---------
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Seneca Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
HEALTH CARE (DIVERSIFIED)--7.1%
<S> <C> <C>
Bristol-Myers Squibb Co.............................. 14,900 $1,547,737
McKesson Corp........................................ 21,080 1,931,455
---------
3,479,192
---------
HEALTH CARE (HOSPITAL MANAGEMENT)--2.3%
Columbia/HCA Healthcare Corp......................... 55,220 1,107,851
---------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--1.5%
Bausch & Lomb, Inc................................... 17,940 706,388
---------
HOUSEHOLD PRODUCTS (NON-DURABLES)--4.2%
Colgate-Palmolive Co................................. 19,360 1,326,160
Procter & Gamble Co.................................. 10,380 736,331
---------
2,062,491
---------
INSURANCE (MULTI-LINE)--2.3%
Travelers Group, Inc................................. 30,310 1,136,625
---------
INSURANCE (PROPERTY-CASUALTY)--1.5%
Allstate Corp........................................ 17,280 720,360
---------
MANUFACTURING (DIVERSIFIED)--2.8%
Tyco International Ltd............................... 24,400 1,348,100
---------
OIL & GAS (DRILLING & EQUIPMENT)--1.7%
Schlumberger Ltd..................................... 16,000 805,000
---------
OIL (INTERNATIONAL INTEGRATED)--2.0%
Exxon Corp........................................... 14,180 995,259
---------
RESTAURANTS--2.9%
McDonald's Corp...................................... 23,450 1,399,672
---------
RETAIL (BUILDING SUPPLIES)--1.9%
Masco Corp........................................... 38,340 944,123
---------
RETAIL (FOOD CHAINS)--1.5%
Safeway, Inc. (b).................................... 15,550 721,131
---------
RETAIL (GENERAL MERCHANDISE)--1.4%
Dayton Hudson Corp................................... 18,590 664,593
---------
RETAIL (SPECIALTY-APPAREL)--1.6%
TJX Companies, Inc................................... 42,420 755,606
---------
<CAPTION>
SHARES VALUE
------- ---------
<S> <C> <C>
SERVICES (DATA PROCESSING)--2.1%
Automatic Data Processing, Inc....................... 13,450 $1,005,388
---------
TELECOMMUNICATIONS (LONG DISTANCE)--5.1%
AT&T Corp............................................ 13,040 762,025
MCI WorldCom, Inc.................................... 34,880 1,704,760
---------
2,466,785
---------
WASTE MANAGEMENT--1.9%
Waste Management, Inc................................ 18,880 907,420
---------
TOTAL COMMON STOCKS
(Identified cost $42,393,415)..................................... 44,335,487
---------
FOREIGN COMMON STOCKS--2.5%
OIL (INTERNATIONAL INTEGRATED)--2.5%
Royal Dutch Petroleum Co. NY Registered Shares
(Netherlands)....................................... 25,750 1,226,344
---------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $1,259,367)...................................... 1,226,344
---------
TOTAL LONG-TERM INVESTMENTS--93.5%
(Identified cost $43,652,782)..................................... 45,561,831
---------
<CAPTION>
PAR
VALUE
(000)
-------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--5.6%
REPURCHASE AGREEMENT--5.6%
State Street Bank & Trust Co. repurchase agreement,
4.75%, dated 9/30/98 due 10/1/98, repurchase price
$2,732,360 collateralized by U.S. Treasury Note 7%,
7/15/06, market value $2,791,197.................... $2,732 2,732,000
---------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $2,732,000)...................................... 2,732,000
---------
TOTAL INVESTMENTS--99.1%
(Identified cost $46,384,782)..................................... 48,293,831(a)
Cash and receivables, less liabilities--0.9%...................... 427,589
----------
NET ASSETS--100.0%.................................................. $48,721,420
----------
----------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $5,240,041 and gross
depreciation of $3,398,173 for federal income tax purposes. At September
30, 1998, the aggregate cost of securities for federal income tax purposes
was $46,451,963.
(b) Non-income producing.
8 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $46,384,782) $ 48,293,831
Cash 258
Receivables
Investment securities sold 1,105,814
Dividends and interest 40,309
Fund shares sold 207,928
Deferred organization expenses 24,185
Prepaid expenses 6,441
Other assets 2,898
-------------
Total assets 49,681,664
-------------
LIABILITIES
Payables
Investment securities purchased 841,506
Fund shares repurchased 29,807
Investment advisory fee 24,586
Transfer agent fee 17,000
Distribution fee 12,241
Administration fee 5,753
Trustees' fee 2,500
Accrued expenses 26,851
-------------
Total liabilities 960,244
-------------
NET ASSETS $ 48,721,420
-------------
-------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 41,788,000
Accumulated net realized gain 5,024,371
Net unrealized appreciation 1,909,049
-------------
NET ASSETS $ 48,721,420
-------------
-------------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $30,712,946) 1,865,630
Net asset value and offering price per share $16.46
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $17,363,523) 1,069,669
Net asset value per share $16.23
Offering price per share $16.23/(1-4.75%) $17.04
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $518,682) 32,039
Net asset value and offering price per share $16.19
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $126,269) 7,802
Net asset value and offering price per share $16.18
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 437,453
Interest 84,120
Foreign taxes withheld (8,786)
------------
Total investment income 512,787
------------
EXPENSES
Investment advisory fee 307,240
Distribution fee--Class A 20,872
Distribution fee--Class B 445
Distribution fee--Class C 255
Administration fee 55,207
Custody and accounting 49,963
Transfer agent 39,386
Registration 25,275
Trustees 17,549
Amortization of deferred organization expenses 9,674
Professional 8,003
Printing 6,189
Miscellaneous 5,163
------------
Total expenses 545,221
Less expenses borne by investment adviser (8,845)
------------
Net expenses 536,376
------------
NET INVESTMENT LOSS (23,589)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain on securities 5,786,850
Net change in unrealized appreciation (depreciation) on
investments (3,716,413)
------------
NET GAIN ON INVESTMENTS 2,070,437
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,046,848
------------
------------
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Seneca Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 1998 SEPTEMBER 30, 1997
------------------- -------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (23,589) $ 57,732
Net realized gain 5,786,850 2,408,148
Net change in unrealized appreciation
(depreciation) (3,716,413) 5,006,042
------------------- -------------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 2,046,848 7,471,922
------------------- -------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income--Class X (28,234) (99,739)
Net investment income--Class A -- (3)
Net investment income--Class B -- --
Net investment income--Class C -- --
Net realized gains--Class X (2,638,126) (997,531)
Net realized gains--Class A (456,891) (19,063)
Net realized gains--Class B -- --
Net realized gains--Class C -- --
------------------- -------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (3,123,251) (1,116,336)
------------------- -------------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (285,390
and 1,193,698 shares, respectively) 4,884,932 16,740,404
Net asset value of shares issued from
reinvestment of distributions
(175,598 and 83,095 shares,
respectively) 2,655,713 1,095,100
Cost of shares repurchased (669,955
and 142,301 shares, respectively) (11,501,669) (2,144,300)
------------------- -------------------
Total (3,961,024) 15,691,204
------------------- -------------------
CLASS A
Proceeds from sales of shares (903,203
and 410,550 shares, respectively) 16,095,224 5,770,465
Net asset value of shares issued from
reinvestment of distributions
(30,397 and 1,364 shares,
respectively) 454,436 17,844
Cost of shares repurchased (233,349
and 76,718 shares, respectively) (3,581,463) (1,114,710)
------------------- -------------------
Total 12,968,197 4,673,599
------------------- -------------------
CLASS B
Proceeds from sales of shares (32,039
and 0 shares, respectively) 544,661 --
Net asset value of shares issued from
reinvestment of distributions
(0 and 0 shares, respectively) -- --
Cost of shares repurchased (0 and 0
shares, respectively) -- --
------------------- -------------------
Total 544,661 --
------------------- -------------------
CLASS C
Proceeds from sales of shares (7,802
and 0 shares, respectively) 139,674 --
Net asset value of shares issued from
reinvestment of distributions
(0 and 0 shares, respectively) -- --
Cost of shares repurchased (0 and 0
shares, respectively) -- --
------------------- -------------------
Total 139,674 --
------------------- -------------------
INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 9,691,508 20,364,803
------------------- -------------------
NET INCREASE IN NET ASSETS 8,615,105 26,720,389
NET ASSETS
Beginning of period 40,106,315 13,385,926
------------------- -------------------
END OF PERIOD (INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME OF
$0 AND $28,234, RESPECTIVELY) $48,721,420 $40,106,315
------------------- -------------------
------------------- -------------------
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Growth Fund
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
CLASS X
-------------------------------------------
FROM
YEAR ENDED SEPTEMBER 30, INCEPTION
3/8/96 TO
1998 1997 9/30/96
----------- ----------- ------------
<S> <C> <C> <C>
Net asset value, beginning of
period $ 16.43 $ 13.74 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.00(8) 0.03(1) 0.03(1)
Net realized and unrealized gain 1.28 3.50 3.71
----------- ----------- ------
TOTAL FROM INVESTMENT
OPERATIONS 1.28 3.53 3.74
----------- ----------- ------
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.02) (0.07) --
Dividends from net realized gains (1.23) (0.77) --
----------- ----------- ------
TOTAL DISTRIBUTIONS (1.25) (0.84) --
----------- ----------- ------
Change in net asset value 0.03 2.69 3.74
----------- ----------- ------
NET ASSET VALUE, END OF PERIOD $ 16.46 $ 16.43 $ 13.74
----------- ----------- ------
----------- ----------- ------
Total return(3) 8.48% 27.27% 37.40%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $30,713 $34,093 $12,920
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.14% 1.52%(6) 0.81%(4)(6)
Net investment income (loss) 0.02% 0.31% 0.76%(4)
Portfolio turnover 166% 145.69% 87.66%(5)
<CAPTION>
CLASS A
-------------------------------------------
FROM
YEAR ENDED SEPTEMBER 30, INCEPTION
3/8/96 TO
1998 1997 9/30/96
----------- ----------- ------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 16.28 $ 13.63 $ 10.00
Income from investment operations:
Net investment income (loss) (0.06)(8) (0.08)(2) --(2)
Net realized and unrealized gain 1.24 3.50 3.63
----------- ----------- ------
TOTAL FROM INVESTMENT
OPERATIONS 1.18 3.42 3.63
----------- ----------- ------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- --
Dividends from net realized gains (1.23) (0.77) --
----------- ----------- ------
TOTAL DISTRIBUTIONS (1.23) (0.77) --
----------- ----------- ------
Change in net asset value (0.05) 2.65 3.63
----------- ----------- ------
NET ASSET VALUE, END OF PERIOD $ 16.23 $ 16.28 $ 13.63
----------- ----------- ------
----------- ----------- ------
Total return(3) 7.93% 26.51% 36.30%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $17,364 $6,013 $466
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.55% 2.48%(7) 1.46%(4)(7)
Net investment income (loss) (0.36)% (0.62)% 0.16%(4)
Portfolio turnover 166% 145.69% 87.66%(5)
</TABLE>
(1) Net investment income (loss) is after waiver of certain fees and
reimbursement of certain expenses by the investment adviser. If the
investment adviser had not waived fees and reimbursed expenses, net
investment income (loss) per share would have been $0.03 and $(0.09) for
the year ended September 30, 1997 and the period ended September 30, 1996,
respectively.
(2) Net investment income (loss) is after waiver of certain fees and
reimbursement of certain expenses by the investment adviser. If the
investment adviser had not waived fees and reimbursed expenses, net
investment income (loss) per share would have been $(0.09) and $(0.34) for
the year ended September 30, 1997 and the period ended September 30, 1996,
respectively.
(3) Total return represents total return for the period indicated. The total
return would have been lower if certain fees and expenses had not been
waived or reimbursed by the investment adviser.
(4) Annualized.
(5) Not annualized.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.52% and
3.49% for the year ended September 30, 1997 and the period ended September
30, 1996, respectively.
(7) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.63% and
14.01% for the year ended September 30, 1997 and the period ended September
30, 1996, respectively.
(8) Computed using average shares outstanding.
See Notes to Financial Statements 11
<PAGE>
Phoenix-Seneca Growth Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B CLASS C
----------- -----------
FROM FROM
INCEPTION INCEPTION
7/1/98 TO 7/1/98 TO
9/30/98 9/30/98
----------- -----------
<S> <C> <C>
Net asset value, beginning of
period $ 18.71 $ 18.71
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.04)(1)(8) (0.06)(2)(8)
Net realized and unrealized gain
(loss) (2.48) (2.47)
------ ------
TOTAL FROM INVESTMENT
OPERATIONS (2.52) (2.53)
------ ------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- --
Dividends from net realized gains -- --
------ ------
TOTAL DISTRIBUTIONS -- --
------ ------
Change in net asset value (2.52) (2.53)
------ ------
NET ASSET VALUE, END OF PERIOD $ 16.19 $ 16.18
------ ------
------ ------
Total return(3) (13.47)%(5) (13.52)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $519 $126
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.60%(4)(6) 2.60%(4)(7)
Net investment income (loss) (1.12)%(4) (1.39)%(4)
Portfolio turnover 166% 166%
</TABLE>
(1) Net investment income is after waiver of certain fees and reimbursement of
certain expenses by the investment adviser. If the investment adviser had
not waived fees and reimbursed expenses, net investment income (loss) per
share would have been $(0.36) for the period ended September 30, 1998.
(2) Net investment income is after waiver of certain fees and reimbursement of
certain expenses by the investment adviser. If the investment adviser had
not waived fees and reimbursed expenses, net investment income (loss) per
share would have been $(0.79) for the period ended September 30, 1998.
(3) Total return represents total return for the period indicated. The total
return would have been lower if certain fees and expenses had not been
waived or reimbursed by the investment adviser.
(4) Annualized.
(5) Not annualized.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 12.48%
for the period ended September 30, 1998.
(7) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 20.24%
for the period ended September 30, 1998.
(8) Computed using average shares outstanding.
12 See Notes to Financial Statements
<PAGE>
PHOENIX-SENECA MID-CAP "EDGE"-SM- FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGERS,
GAIL SENECA, PH.D. AND RICHARD LITTLE, CFA
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund seeks long-term capital appreciation
by primarily investing in mid-capitalization common stocks. Investors should
note that securities issued by medium-capitalization companies are often more
volatile than those of large, well-established companies.
Q: HOW DID THE PORTFOLIO PERFORM FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1998?
A: For the fiscal year, the Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund Class X
shares returned (4.22)%, and Class A shares returned (4.74)% compared with a
(6.30)% return for the S&P MidCap 400 Index.(1) Since their inception on July 1,
1998, Class B shares and Class C shares returned (19.94)% and (20.00)%,
respectively, compared with (15.78)% for the S&P MidCap 400 Index. All
performance figures assume reinvestment of distributions and exclude the effect
of sales charges.
Our "earnings-driven growth" strategy produced strong results relative to
the small-capitalization indices but underperformed the S&P MidCap 400 Index
during the third quarter. The Fund's year-to-date return continues to outperform
the small- and mid-cap market benchmarks. For the first nine months of 1998,
Class X shares had a return of (2.20)% compared with a return of (18.12)% for
the Russell 2000 Growth Index(2) and a return of (7.08)% for the S&P MidCap 400
Index.
Q: WHAT WERE SOME OF THE FACTORS THAT AFFECTED PERFORMANCE?
A: The growing economic crisis in Russia, Japan and emerging markets led to
devastating results across all major U.S. stock market indices for the third
quarter. Investors flocked to the most highly liquid and "lowest risk"
investments available. U.S. Treasuries were the only true beneficiaries of this
trend.
The largest U.S. stocks outperformed smaller capitalization companies, which
meant only that they declined less. The S&P MidCap 400 Index was down 14.5% for
the quarter, while the Russell 2500 Growth Index,(3) a measure of mid- and
small-cap growth company performance, was down 22.2%. Small-capitalization
stocks reached historical valuation lows relative to large-capitalization stocks
by quarter-end. These stocks are now trading at relative levels equal to or
below those observed during the last recession. We continue to see compelling
valuation in this sector, and we regard the
(1)THE S&P 400 MIDCAP INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF TOTAL
RETURN PERFORMANCE OF MID-CAPITALIZATION STOCKS. THE INDEX IS NOT AVAILABLE FOR
DIRECT INVESTMENT.
(2)THE RUSSELL 2000 GROWTH INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF TOTAL
RETURN PERFORMANCE OF SMALL-CAPITALIZATION GROWTH-ORIENTED STOCKS. THE INDEX IS
NOT AVAILABLE FOR DIRECT INVESTMENT.
(3)THE RUSSELL 2500 GROWTH INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF TOTAL
RETURN PERFORMANCE OF MID- AND SMALL-CAPITALIZATION GROWTH- ORIENTED STOCKS. THE
INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
13
<PAGE>
PHOENIX-SENECA MID-CAP "EDGE"-SM- FUND (CONTINUED)
relentless liquidation of these stocks as indicative of negative investor
psychology, not investment facts.
Despite the market carnage, some holdings advanced for the quarter,
including Micron Technology (a semiconductor company), McKesson (a drug
distributor), and SunAmerica (an insurer). Stocks in our portfolio continue to
produce significantly above-market earnings growth rates.
Q: WHAT IS YOUR OUTLOOK FOR THE MARKET?
A: Unless the fear of global depression is realized, we believe U.S.
corporations should
continue to exhibit profit growth in the coming year. This, and a low inflation,
low interest rate environment, bode well for the stock market in 1999.
Market volatility and panic liquidation is now so intense that investors can
find no place in the market that has been unaffected by recent events. When the
storm clouds dissipate, as we believe they will, diversified portfolios of high-
quality stocks, such as ours, should be well-positioned.
OCTOBER 14, 1998
14
<PAGE>
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURNS(1)
(AS OF 9/30/98)
<TABLE>
<CAPTION>
SINCE
1 YEAR INCEPTION
------ ---------
<S> <C> <C>
X Shares(2) (INCEPTION: 3/8/96)
NAV (4.22)% 20.03%
A Shares(2) (INCEPTION: 3/8/96)
NAV (4.74)% 19.59%
POP (9.25)% 17.34%
B Shares(2) (INCEPTION: 7/1/98)
CDSC -- (23.94)%
No CDSC -- (19.94)%
C Shares(2) (INCEPTION: 7/1/98)
CDSC -- (20.80)%
No CDSC -- (20.00)%
S&P 400 MidCap Index (6.30)% note 3
</TABLE>
<TABLE>
<CAPTION>
SECTOR WEIGHTINGS (AS A PERCENTAGE OF EQUITY HOLDINGS)
- ------------------------------------------------------
<S> <C>
Technology 31%
Consumer Cyclicals 23%
Health-Care 16%
Consumer Staples 11%
Financials 8%
Capital Goods 6%
Energy 2%
Other 3%
</TABLE>
(1) Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
(2) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 4.75% sales charge. "NAV" (Net Asset Value) total returns
do not include the effect of any sales charge. A contingent deferred sales
charge (CDSC) is applied to redemptions of certain classes of shares that do
not have a sales charge applied at the time of purchase. CDSC charges for B
shares decline from 5% to 0% over a five year period. CDSC charges for C
shares are 1% in the first year and 0% thereafter.
(3) The S&P 400 MidCap Index performance is 14.58% for Class X and A and
(15.78)% for Class B and C, respectively, since each class' inception date as
noted.
All returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
<TABLE>
<CAPTION>
Phoenix-Seneca Phoenix Seneca
Mid-Cap "EDGE"- Mid-Cap "EDGE"-SM- S&P 400
SM- Class X Class A with 4.75% MidCap
at NAV (4) sales charge(4) Index(5)
--------------- ------------------ --------
<S> <C> <C> <C>
3/8/96 $10,000 $9,525 $10,000
3/31/96 $10,272
9/30/96 $14,970 $14,219 $10,876
9/30/97 $16,676 $15,818 $15,129
9/30/98 $15,972 $15,068 $14,176
</TABLE>
(4) THIS CHART ILLUSTRATES NAV RETURNS ON CLASS X SHARES AND POP RETURNS ON
CLASS A SHARES SINCE INCEPTION. RETURNS ON CLASS B AND CLASS C SHARES WILL
VARY DUE TO DIFFERING SALES CHARGES.
(5) THE S&P 400 MIDCAP INDEX IS AN UNMANAGED INDEX CONSIDERED TO BE
REPRESENTATIVE OF MID-CAPITALIZATION STOCKS AND INCLUDES REINVESTED DIVIDENDS.
15
<PAGE>
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TEN LARGEST EQUITY HOLDINGS AT SEPTEMBER 30, 1998 (AS A PERCENTAGE OF EQUITY HOLDINGS)
<S> <C> <C>
1. McKesson Corp. 4.7%
A LEADING U.S. DRUG DISTRIBUTOR
2. Sofamor Danek Group, Inc. 3.7%
DEVELOPS, MANUFACTURES AND MARKETS SPINAL IMPLANT DEVICES
3. Mylan Laboratories, Inc. 3.7%
ONE OF THE LEADERS IN THE GENERIC PHARMACEUTICAL INDUSTRY
4. Compuware Corp. 3.6%
DEVELOPS AND MARKETS PROGRAMMING AND APPLICATION PRODUCTIVITY SOFTWARE
5. Outdoor Systems, Inc. 3.6%
OUT-OF-HOME MEDIA, INCLUDING BILLBOARDS
6. Bausch & Lomb
MAJOR PRODUCER OF PRODUCTS AND SERVICES FOR THE HEALTH-CARE AND OPTICS FIELDS
7. Comerica, Inc. 3.3%
MAJOR REGIONAL BANK
8. VERITAS Software Co. 3.2%
DEVELOPS, MANUFACTURES AND MARKETS ADVANCED STORAGE MANAGEMENT PRODUCTS
9. Kmart Corp. 3.1%
ONE OF THE WORLD'S LARGEST MASS MERCHANDISE RETAILERS
10. CKE Restaurants, Inc. 3.0%
A LEADING NATIONWIDE OWNER, OPERATOR AND FRANCHISER OF QUICK SERVICE RESTAURANTS
</TABLE>
INVESTMENTS AT SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
COMMON STOCKS--87.9%
AEROSPACE/DEFENSE--1.3%
Tristar Aerospace Co. (b)........ 17,470 $ 168,149
------------
BANKS (MAJOR REGIONAL)--7.6%
AmSouth Bancorporation........... 7,930 270,611
Comerica, Inc.................... 6,935 380,125
Northern Trust Corp.............. 4,760 324,870
-----------
975,606
-----------
BROADCASTING (TELEVISION, RADIO & CABLE)--3.1%
Chancellor Media Corp. (b)....... 9,370 312,724
Young Broadcasting, Inc. Class A
(b)............................. 2,580 87,720
-----------
400,444
-----------
COMMUNICATIONS EQUIPMENT--2.6%
Ascend Communications, Inc.
(b)............................. 7,350 334,425
-----------
COMPUTERS (SOFTWARE & SERVICES)--12.8%
America Online, Inc. (b)......... 2,150 239,187
Computer Horizons Corp. (b)...... 12,330 307,479
Compuware Corp. (b).............. 7,200 423,900
Documentum, Inc. (b)............. 7,460 295,602
VERITAS Software Corp. (b)....... 6,800 375,700
-----------
1,641,868
ELECTRONICS (INSTRUMENTATION)--6.1%
Flextronics International Ltd.
(b)............................. 6,750 239,203
Gemstar International Group Ltd.
(b)............................. 6,960 322,770
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
ELECTRONICS (INSTRUMENTATION)--CONTINUED
Micron Electronics, Inc. (b)..... 12,880 $ 225,400
-----------
787,373
-----------
ELECTRONICS (SEMICONDUCTORS)--5.3%
Micron Technology, Inc........... 11,440 348,205
Xilinx, Inc. (b)................. 9,560 334,600
-----------
682,805
-----------
HEALTH CARE (DIVERSIFIED)--7.6%
McKesson Corp.................... 6,020 551,582
Mylan Laboratories, Inc.......... 14,470 426,865
-----------
978,447
-----------
HEALTH CARE (HOSPITAL MANAGEMENT)--1.4%
Health Management Associates,
Inc. (b)........................ 9,820 179,215
-----------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--11.2%
Allegiance Corp.................. 10,880 323,680
Bausch & Lomb, Inc............... 9,850 387,844
Ocular Sciences, Inc. (b)........ 14,170 297,570
Sofamor Danek Group, Inc. (b).... 4,820 428,980
-----------
1,438,074
-----------
HOUSEHOLD FURNITURE & APPLIANCES--1.8%
Maytag Corp...................... 4,870 232,542
-----------
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
OFFICE EQUIPMENT & SUPPLIES--2.4%
Miller (Herman), Inc............. 15,550 $ 307,112
-----------
OIL (DOMESTIC INTEGRATED)--2.0%
USX-Marathon Group............... 7,140 253,024
-----------
RESTAURANTS--2.7%
CKE Restaurants, Inc............. 11,770 350,158
-----------
RETAIL (DISCOUNTERS)--2.0%
Dollar Tree Stores, Inc. (b)..... 8,220 257,389
-----------
RETAIL (GENERAL MERCHANDISE)--2.8%
Kmart Corp. (b).................. 30,380 362,661
-----------
RETAIL (SPECIALTY)--1.8%
Staples, Inc. (b)................ 7,980 234,413
-----------
RETAIL (SPECIALTY-APPAREL)--2.1%
TJX Companies, Inc............... 15,130 269,503
-----------
SERVICES (ADVERTISING/MARKETING)--3.3%
Outdoor Systems, Inc. (b)........ 21,455 418,373
-----------
SERVICES (COMMERCIAL & CONSUMER)--1.6%
GATX Corp........................ 5,950 196,722
-----------
SERVICES (DATA PROCESSING)--1.7%
Administaff, Inc. (b)............ 6,840 218,453
-----------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.8%
Crown Castle International Corp.
(b)............................. 10,640 102,410
-----------
TEXTILES (APPAREL)--2.2%
Jones Apparel Group, Inc. (b).... 12,490 286,489
-----------
WASTE MANAGEMENT--1.7%
Republic Services, Inc. Class A
(b)............................. 11,270 219,765
-----------
TOTAL COMMON STOCKS
(Identified cost $11,445,956)............................... 11,295,420
-----------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
FOREIGN COMMON STOCKS--2.9%
ELECTRONICS (SEMICONDUCTORS)--1.6%
PMC-Sierra, Inc. (Canada) (b).... 6,560 $ 209,100
-----------
ENTERTAINMENT--1.3%
News Corporation Ltd. (The)
Sponsored ADR (Australia)....... 6,550 167,844
-----------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $451,608).................................. 376,944
-----------
TOTAL LONG-TERM INVESTMENTS--90.8%
(Identified cost $11,897,564)............................... 11,672,364
-----------
<CAPTION>
PAR
VALUE
(000)
--------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--10.6%
REPURCHASE AGREEMENT--10.6%
State Street Bank & Trust Co.
repurchase agreement, 4.75%
dated 9/30/98 due 10/1/98,
repurchase price $1,362,180
collateralized by U.S. Treasury
Note 7%, 7/15/06, market value
$1,389,735...................... $ 1,362 1,362,000
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $1,362,000)................................ 1,362,000
-----------
TOTAL INVESTMENTS--101.4%
(Identified cost $13,259,564)............................... 13,034,364(a)
Cash and receivables, less liabilities--(1.4%).............. (179,440)
-----------
NET ASSETS--100.0%............................................ $12,854,924
-----------
-----------
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $1,147,751 and gross
depreciation of $1,374,463 for federal income tax purposes. At September
30, 1998, the aggregate cost of securities for federal income tax purposes
was $13,261,076.
(b) Non-income producing.
See Notes to Financial Statements 17
<PAGE>
Phoenix-Seneca Mid-Cap "EDGE"(SM) Fund
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Investment securities at value
(Identified cost $13,259,564) $ 13,034,364
Cash 64
Receivables
Investment securities sold 116,666
Dividends and interest 9,321
Fund shares sold 2,423
Deferred organization expenses 24,320
Prepaid expenses 2,212
-------------
Total assets 13,189,370
-------------
LIABILITIES
Payables
Investment securities purchased 276,051
Transfer agent fee 17,000
Investment advisory fee 6,090
Administration fee 5,753
Distribution fee 2,774
Trustees' fee 2,500
Accrued expenses 24,278
-------------
Total liabilities 334,446
-------------
NET ASSETS $ 12,854,924
-------------
-------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 12,539,855
Accumulated net realized gain 540,269
Net unrealized depreciation (225,200)
-------------
NET ASSETS $ 12,854,924
-------------
-------------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $8,939,892) 647,132
Net asset value and offering price per share $13.81
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $3,666,083) 266,570
Net asset value per share $13.75
Offering price per share $13.75/(1-4.75%) $14.44
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $145,495) 10,599
Net asset value and offering price per share $13.73
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $103,454) 7,538
Net asset value and offering price per share $13.72
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Dividends $ 39,564
Interest 40,899
Foreign taxes withheld (35)
------------
Total investment income 80,428
------------
EXPENSES
Investment advisory fee 100,384
Distribution fee--Class A 7,272
Distribution fee--Class B 315
Distribution fee--Class C 308
Administration fee 56,307
Custody and accounting 44,881
Transfer agent 41,191
Registration 22,635
Trustees 17,549
Amortization of deferred organization expenses 9,674
Professional 8,617
Printing 6,272
Miscellaneous 3,240
------------
Total expenses 318,645
Less expenses borne by investment adviser (36,648)
------------
Net expenses 281,997
------------
NET INVESTMENT LOSS (201,569)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain on securities 895,515
Net change in unrealized appreciation (depreciation) on
investments (1,612,591)
------------
NET LOSS ON INVESTMENTS (717,076)
------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (918,645)
------------
------------
</TABLE>
18 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 1998 SEPTEMBER 30, 1997
------------------- -------------------
<S> <C> <C>
FROM OPERATIONS
Net investment loss $ (201,569) $ (122,306)
Net realized gain 895,515 1,355,512
Net change in unrealized appreciation
(depreciation) (1,612,591) 369,616
------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (918,645) 1,602,822
------------------- -------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income--Class X -- (22,426)
Net investment income--Class A -- (7)
Net investment income--Class B -- --
Net investment income--Class C -- --
Net realized gains--Class X (1,092,044) (89,792)
Net realized gains--Class A (289,481) (12,053)
Net realized gains--Class B -- --
Net realized gains--Class C -- --
------------------- -------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (1,381,525) (124,278)
------------------- -------------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (135,008
and 403,926 shares, respectively) 2,127,609 5,517,592
Net asset value of shares issued from
reinvestment of distributions
(84,041 and 7,844 shares,
respectively) 1,090,132 109,284
Cost of shares repurchased (142,018
and 337,764 shares, respectively) (2,045,120) (4,917,052)
------------------- -------------------
Total 1,172,621 709,824
------------------- -------------------
CLASS A
Proceeds from sales of shares (159,888
and 291,421 shares, respectively) 2,538,940 4,064,517
Net asset value of shares issued from
reinvestment of distributions
(22,073 and 851 shares,
respectively) 286,061 11,875
Cost of shares repurchased (62,130 and
236,289 shares, respectively) (947,854) (3,238,210)
------------------- -------------------
Total 1,877,147 838,182
------------------- -------------------
CLASS B
Proceeds from sales of shares (10,599
and 0 shares, respectively) 169,635 --
Net asset value of shares issued from
reinvestment of distributions
(0 and 0 shares, respectively) -- --
Cost of shares repurchased (0 and 0
shares, respectively) -- --
------------------- -------------------
Total 169,635 --
------------------- -------------------
CLASS C
Proceeds from sales of shares (7,538
and 0 shares, respectively) 125,992 --
Net asset value of shares issued from
reinvestment of distributions
(0 and 0 shares, respectively) -- --
Cost of shares repurchased (0 and 0
shares, respectively) -- --
------------------- -------------------
Total 125,992 --
------------------- -------------------
INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 3,345,395 1,548,006
------------------- -------------------
NET INCREASE IN NET ASSETS 1,045,225 3,026,550
NET ASSETS
Beginning of period 11,809,699 8,783,149
------------------- -------------------
END OF PERIOD (INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME OF
$0 AND $0, RESPECTIVELY) $12,854,924 $11,809,699
------------------- -------------------
------------------- -------------------
</TABLE>
See Notes to Financial Statements 19
<PAGE>
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
CLASS X
---------------------------------------------------
FROM
YEAR ENDED SEPTEMBER 30, INCEPTION
3/8/96 TO
1998 1997 9/30/96
------ ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of
period $ 16.47 $ 14.97 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.23)(1)(8) (0.17)(1) 0.01(1)
Net realized and unrealized gain
(loss) (0.58) 1.84 4.96
------ ----------- -----------
TOTAL FROM INVESTMENT
OPERATIONS (0.81) 1.67 4.97
------ ----------- -----------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- (0.07) --
Dividends from net realized gains (1.85) (0.10) --
------ ----------- -----------
TOTAL DISTRIBUTIONS (1.85) (0.17) --
------ ----------- -----------
Change in net asset value (2.66) 1.50 4.97
------ ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 13.81 $ 16.47 $ 14.97
------ ----------- -----------
------ ----------- -----------
Total return(3) (4.22)% 11.39% 49.70%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $ 8,940 $ 9,390 $ 7,428
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.10%(6) 1.74%(6) 0.90%(4)(6)
Net investment income (loss) (1.49)% (0.97)% 0.27%(4)
Portfolio turnover 206% 283.60% 72.34%(5)
<CAPTION>
CLASS A
-----------------------------------------------
FROM
YEAR ENDED SEPTEMBER 30, INCEPTION
3/8/96 TO
1998 1997 9/30/96
----------- ----------- ----------
<S> <C> <C> <C>
Net asset value, beginning of
period $ 16.49 $ 14.94 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.30)(2)(8) (0.25)(2) (0.01)(2)
Net realized and unrealized gain
(loss) (0.59) 1.90 4.95
----------- ----------- ----------
TOTAL FROM INVESTMENT
OPERATIONS (0.89) 1.65 4.94
----------- ----------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- --
Dividends from net realized gains (1.85) (0.10) --
----------- ----------- ----------
TOTAL DISTRIBUTIONS (1.85) (0.10) --
----------- ----------- ----------
Change in net asset value (2.74) 1.55 4.94
----------- ----------- ----------
NET ASSET VALUE, END OF PERIOD $ 13.75 $ 16.49 $ 14.94
----------- ----------- ----------
----------- ----------- ----------
Total return(3) (4.74)% 11.25% 49.30%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $ 3,666 $ 2,419 $ 1,355
Ratio to average net assets of:
Operating expenses 2.70%(7) 2.37%(7) 1.55%(4)(7)
Net investment income (loss) (1.95)% (1.60)% (0.46)%(4)
Portfolio turnover 206% 283.60% 72.34%(5)
</TABLE>
(1) Net investment income (loss) is after waiver of certain fees and
reimbursement of certain expenses by the investment adviser. If the
investment adviser had not waived fees and reimbursed expenses, net
investment income (loss) per share would have been $(0.27), $(0.33) and
$(0.19) for the years ended September 30, 1998 and 1997 and the period
ended September 30, 1996, respectively.
(2) Net investment income (loss) is after waiver of certain fees and
reimbursement of certain expenses by the investment adviser. If the
investment adviser had not waived fees and reimbursed expenses, net
investment income (loss) per share would have been $(0.31), $(0.55) and
$(0.20) for the years ended September 30, 1998 and 1997 and the period
ended September 30, 1996, respectively.
(3) Total return represents total return for the period indicated. The total
return would have been lower if certain fees and expenses had not been
waived or reimbursed by the investment adviser.
(4) Annualized.
(5) Not annualized.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.38%,
2.77% and 5.73% for the years ended September 30, 1998 and 1997 and the
period ended September 30, 1996, respectively.
(7) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.74%,
4.32% and 9.73% for the years ended September 30, 1998 and 1997 and the
period ended September 30, 1996, respectively.
(8) Computed using average shares outstanding.
20 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
CLASS B CLASS C
------------ -----------
FROM FROM
INCEPTION INCEPTION
7/1/98 TO 7/1/98 TO
9/30/98 9/30/98
------------ -----------
<S> <C> <C>
Net asset value, beginning of
period $ 17.15 $ 17.15
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.09)(1)(8) (0.09)(2)(8)
Net realized and unrealized gain
(loss) (3.33) (3.34)
------ ------
TOTAL FROM INVESTMENT
OPERATIONS (3.42) (3.43)
------ ------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- --
Dividends from net realized gains -- --
------ ------
Total distributions -- --
------ ------
Change in net asset value (3.42) (3.43)
------ ------
NET ASSET VALUE, END OF PERIOD $ 13.73 $ 13.72
------ ------
------ ------
Total return(3) (19.94)%(5) (20.00)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $145 $103
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 3.45%(4)(6) 3.45%(4)(7)
Net investment income (loss) (2.45)%(4) (2.44)%(4)
Portfolio turnover 206% 206%
</TABLE>
(1) Net investment income is after waiver of certain fees and reimbursement of
certain expenses by the investment adviser. If the investment adviser had
not waived fees and reimbursed expenses, net investment income (loss) per
share would have been $(0.69) for the period ended September 30, 1998.
(2) Net investment income is after waiver of certain fees and reimbursement of
certain expenses by the investment adviser. If the investment adviser had
not waived fees and reimbursed expenses, net investment income (loss) per
share would have been $(0.77) for the period ended September 30, 1998.
(3) Total return represents total return for the period indicated. The total
return would have been lower if certain fees and expenses had not been
waived or reimbursed by the investment adviser.
(4) Annualized.
(5) Not annualized.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 20.80%
for the period ended September 30, 1998.
(7) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 21.14%
for the period ended September 30, 1998.
(8) Computed using average shares outstanding.
See Notes to Financial Statements 21
<PAGE>
PHOENIX-SENECA BOND FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGERS,
GAIL SENECA, PH.D., AND CHARLES DICKE, CFA
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: Phoenix-Seneca Bond Fund seeks high total return, both current income and
capital appreciation. At least 65% of the portfolio will be invested in
investment-grade debt issues. During periods of falling interest rates, we may
lengthen the average maturity of the portfolio, and conversely, shorten it when
rates are rising.
Q: HOW DID THE FUND PERFORM FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1998?
A: For the fiscal year, the Phoenix-Seneca Bond Fund Class X shares returned
9.44% compared with a return of 12.84% for the Lehman Brothers
Government/Corporate Index(1) and a return of 11.51% for the Lehman Aggregate
Bond Index(2). Since their inception July 1, 1998, Class A shares returned
0.53%, and both Class B shares and Class C shares earned 0.28% compared with a
return of 4.95% for the Lehman Brothers Government/Corporate Index and a return
of 4.16% for the Lehman Aggregate Bond Index. All performance figures assume
reinvestment of distributions and exclude the effect of sales charges.
The benchmark for the Fund was changed from the Lehman Brothers
Government/Corporate Index to the Lehman Aggregate Bond Index in the second half
of fiscal 1998 because it best reflects the broad range of securities that the
portfolio can invest in.
Q: HOW DID MARKET EVENTS AFFECT THE FUND?
A: During 1998, the world financial markets have been experiencing a global
"flight to quality." The yields on Treasuries declined to new lows as the global
financial crisis intensified. U.S. Treasuries were the only true beneficiaries
of this trend. By quarter-end, 30-year Treasury bonds yielded just 4.98%.
Risk aversion, after Russia's debt moratorium, drove the bond market. Amidst
the turmoil, investors flocked to the most highly liquid and "lowest risk"
investments available. To salvage value after the losses in Russia were
realized, investors sold other emerging-markets debt, and then moved on to U.S.
corporate bonds, mortgage-backed issues, and even all but the most liquid
Treasury issues. By quarter-end, the "risk premium," or "spread," of all bond
sectors versus Treasuries had risen dramatically, with Treasuries outperforming
all other bond market sectors.
Seneca's fixed-income strategy underperformed the market indices in the
third quarter due to our exposure to both corporates and mortgages. There has
been no deterioration in the fundamentals of our portfolio. We remain confident
of the Fund's long-term prospects and income security.
(1)THE LEHMAN BROTHERS GOVERNMENT/CORPORATE INDEX IS AN UNMANAGED, COMMONLY USED
MEASURE OF THE PERFORMANCE OF THE GOVERNMENT AND CORPORATE BOND MARKET SECTORS.
THE INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
(2)THE LEHMAN AGGREGATE BOND INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF
BROAD BOND MARKET PERFORMANCE. THE INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
22
<PAGE>
PHOENIX-SENECA BOND FUND (CONTINUED)
Q: WHAT WILL BE YOUR STRATEGY GOING FORWARD?
A: Seneca will continue to focus on the income component of return and resist
the "herd mentality" of the flight to U.S. Treasuries. Corporates and mortgages
now provide a large income advantage to Treasuries and, in our view, secure
long-term income streams. Although the current market volatility will continue
for some time, we are confident that we will survive the turmoil in good form.
Q: WHAT IS YOUR OUTLOOK FOR THE MARKET FOR THE NEXT SIX MONTHS?
A: Risk aversion and fear continue to drive the bond markets. Amidst the gloom,
we detect some reason for optimism. Almost weekly, central banks around the
world are lowering interest rates; the hedge fund deleveraging process is well
under way; and the U.S. Federal Reserve properly recognizes its role as a lender
of last resort in case of financial crisis. Though the global economy will not
rebound quickly, prudent action by the monetary authorities can repair investor
sentiment and restore more reasoned risk assessment among market makers and
investors.
OCTOBER 14, 1998
23
<PAGE>
Phoenix-Seneca Bond Fund
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AVERAGE ANNUAL TOTAL RETURNS(1)
(AS OF 9/30/98)
<TABLE>
<CAPTION>
1 YEAR SINCE INCEPTION
-------- ---------------
<S> <C> <C>
X Shares(2) (INCEPTION: 3/7/96)
NAV 9.44% 9.69%
A Shares(2) (INCEPTION: 7/1/98)
NAV - 0.53%
POP - (4.26)%
B Shares(2) (INCEPTION: 7/1/98)
CDSC - (4.66)%
No CDSC - 0.28%
C Shares(2) (INCEPTION: 7/1/98)
CDSC - (0.71)%
No CDSC - 0.28%
Lehman Aggregate Bond Index 11.51% note 3
Lehman Brothers Government/Corporate
Bond Index 12.84% note 4
</TABLE>
SECTOR WEIGHTINGS (AS A PERCENTAGE OF BOND HOLDINGS)
<TABLE>
<S> <C>
Corporate 75%
U.S. Government 6%
Foreign Corporate 6%
Asset-Backed 5%
Non-Agency Mortgage-Backed 4%
Agency Mortgage-Backed 4%
</TABLE>
(1) Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
(2) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 4.75% sales charge. "NAV" (Net Asset Value) total returns
do not include the effect of any sales charge. A contingent deferred sales
charge (CDSC) is applied to redemptions of certain classes of shares that do
not have a sales charge applied at the time of purchase. CDSC charges for B
shares decline from 5% to 0% over a five year period. CDSC charges for C
shares are 1% in the first year and 0% thereafter.
(3)The Lehman Aggregate Bond Index is 8.78% for Class X and 4.16% for Class
A, B and C, since each class' inception date as noted.
(4) The Lehman Brothers Government/Corporate Bond Index is 9.21% for Class X
and 4.95% for Class A, B and C, since each class' inception date as noted.
All returns represent past performance which may not be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
Phoenix-Seneca Lehman Brothers Lehman
Bond Class X Government/Corporate Aggregate
at NAV(5) Bond Index(6) Bond Index(7)
----------------------- ------------------------ -------------------
<S> <C> <C> <C>
3/7/96 $10,000 $10,000 $10,000
9/30/96 $10,413 $10,139 $10,146
9/30/97 $11,586 $11,111 $11,132
9/30/98 $12,679 $12,538 $12,413
</TABLE>
(5) THIS CHART ILLUSTRATES NAV RETURNS ON CLASS X SHARES SINCE INCEPTION.
RETURNS ON CLASS A, B AND C SHARES WILL VARY DUE TO DIFFERING SALES CHARGES.
(6) THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX IS AN UNMANAGED INDEX
OF ALL GOVERNMENT AND CORPORATE BONDS THAT ARE INVESTMENT GRADE WITH AT LEAST
ONE YEAR TO MATURITY AND INCLUDES REINVESTED INTEREST.
(7) THE LEHMAN AGGREGATE BOND INDEX IS AN UNMANAGED INDEX CONSIDERED TO BE
REPRESENTATIVE OF THE BOND MARKET AND INCLUDES REINVESTED INTEREST.
24
<PAGE>
Phoenix-Seneca Bond Fund
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TEN LARGEST FIXED INCOME HOLDINGS AT SEPTEMBER 30, 1998
(AS A PERCENTAGE OF FIXED INCOME HOLDINGS)
<S> <C>
1. U.S. Government Securities 5.7%
U.S. TREASURY BOND AND NOTES
2. Olympic Automobile Receivables Trust 4.0%
ASSET-BACKED SECURITY
3. DLJ Commercial Mortgage Corp. 4.0%
NON-AGENCY MORTGAGE-BACKED SECURITY
4. Wal-Mart Stores, Inc. 3.6%
CORPORATE BOND
5. Waste Management, Inc. 3.0%
CORPORATE BOND
6. Freddie Mac 7%, 7/15/23 3.0%
AGENCY MORTGAGE-BACKED SECURITY
7. Bally's Park Place, Inc. 3.0%
CORPORATE BOND
8. Wells Fargo Capital 1 2.9%
CORPORATE BOND
9. Rental Service Corp. 2.8%
CORPORATE BOND
10. Corporate Express, Inc. 2.6%
CORPORATE BOND
</TABLE>
INVESTMENTS AT SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ----------- -----------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--5.7%
U.S. TREASURY BONDS--4.7%
U.S. Treasury Bonds 6.125%,
11/15/27........................ Aaa $ 1,125 $ 1,296,914
-----------
U.S. TREASURY NOTES--1.0%
U.S. Treasury Notes 5.625%,
5/15/08......................... Aaa 250 273,516
-----------
TOTAL U.S. GOVERNMENT SECURITIES
(Identified cost $1,475,710)............................... 1,570,430
-----------
AGENCY MORTGAGE-BACKED SECURITIES--4.0%
Fannie Mae Series 90-4, G 8.75%,
5/25/17......................... Aaa 43 44,062
Fannie Mae Series 89-80, E 9%,
9/25/18......................... Aaa 27 27,353
Fannie Mae Strip, I.O., Series
93-179, S 2.813%, 10/25/23...... Aaa 468 9,645
Freddie Mac Series 1142, H 7.95%,
12/15/20........................ Aaa 215 217,652
Freddie Mac Series 1032, E 8.75%,
12/15/20........................ Aaa 19 19,582
Freddie Mac Series 1562, Z 7%,
7/15/23......................... Aaa 717 763,768
<CAPTION>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ----------- -----------
<S> <C> <C> <C>
AGENCY MORTGAGE-BACKED SECURITIES--CONTINUED
GNMA 7%, 2/15/26................. Aaa $ 19 $ 19,962
-----------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(Identified cost $1,081,668)............................... 1,102,024
-----------
ASSET-BACKED SECURITIES--4.6%
Citibank Credit Card Master Trust
1 93-2, A 5.95%, 10/7/04........ Aaa 40 41,494
Lehman ABS Corp. 94-C2, A 144A
8.145%,
11/2/07 (b)..................... BBB+(d) 77 76,809
Olympic Automobile Receivables
Trust 96-B, CTFS 6.90%,
2/15/04......................... Aaa 120 121,821
Olympic Automobile Receivables
Trust 96-D, A5 6.25%,
11/15/04........................ Aaa 1,000 1,028,405
-----------
TOTAL ASSET-BACKED SECURITIES
(Identified cost $1,238,139)............................... 1,268,529
-----------
CORPORATE BONDS--69.5%
AIR FREIGHT--1.9%
Federal Express Corp. Series
98-1A 6.72%, 1/15/22............ Aa 500 532,500
-----------
</TABLE>
See Notes to Financial Statements 25
<PAGE>
Phoenix-Seneca Bond Fund
<TABLE>
<CAPTION>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ----------- -----------
<S> <C> <C> <C>
AIRLINES--2.1%
Alaska Airlines, Inc. Series A
9.50%, 4/12/10.................. Baa $ 118 $ 136,601
Delta Air Lines, Inc. Series B2
10.06%, 1/2/16.................. Baa 65 84,854
United Air Lines, Inc. Series
91-B 10.11%, 2/19/06............ Baa 20 23,467
United Air Lines, Inc. Series
91-E 9.76%, 5/27/06............. Baa 90 106,483
United Air Lines, Inc. Series
95-A1 9.02%, 4/19/12............ Baa 185 220,626
-----------
572,031
-----------
BANKS (MAJOR REGIONAL)--3.9%
First Republic Bancorp 7.75%,
9/15/12......................... BB+(d) 300 315,690
Wells Fargo Capital I 7.96%,
12/15/26........................ A 700 743,428
-----------
1,059,118
-----------
BANKS (MONEY CENTER)--1.5%
BankAmerica Corp. Institutional
Series A 144A 8.07%,
12/31/26 (b).................... Aa 400 416,000
-----------
BROADCASTING (TELEVISION, RADIO & CABLE)--5.2%
Capstar Broadcasting Corp. 9.25%,
7/1/07.......................... B 600 609,000
Chancellor Media Corp. 9.375%,
10/1/04......................... Ba 75 78,375
Chancellor Media Corp. Series B
8.75%, 6/15/07.................. Ba 100 99,500
Chancellor Media Corp. 144A 9%,
10/1/08 (b)..................... Ba 250 253,125
Jacor Communications, Inc.
10.125%, 6/15/06................ B 100 109,500
SFX Broadcasting Corp. Series B
10.75%, 5/15/06................. B 56 61,600
<CAPTION>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ----------- -----------
<S> <C> <C> <C>
BROADCASTING (TELEVISION, RADIO & CABLE)--CONTINUED
Turner Broadcasting System, Inc.
8.40%, 2/1/24................... Baa $ 200 $ 219,832
-----------
1,430,932
-----------
COMMUNICATIONS EQUIPMENT--2.4%
Adelphia Communications Corp.
144A 8.125%, 7/15/03 (b)........ NR 600 603,000
Orion Network Systems, Inc. 0%,
1/15/07 (c)..................... B 90 59,850
-----------
662,850
-----------
CONTAINERS & PACKAGING (PAPER)--0.2%
Container Corporation of America
Series A 11.25%, 5/1/04......... B 40 42,200
-----------
ENTERTAINMENT--2.3%
AMC Entertainment, Inc. 9.50%,
3/15/09......................... B 100 94,500
Clearview Cinema Group, Inc. 144A
10.875%, 6/1/08 (b)............. B 300 318,750
Loews Cineplex Entertainment
Corp. 144A 8.875%, 8/1/08 (b)... B 50 49,625
Time Warner, Inc. 9.125%,
1/15/13......................... Baa 65 82,867
United Artists Theatre Circuit,
Inc. Series 95-A 9.30%,
7/1/15.......................... B 95 90,411
-----------
636,153
-----------
FINANCIAL (DIVERSIFIED)--3.2%
Countrywide Capital I 8%,
12/15/26........................ A 200 201,757
Countrywide Funding Corp. Series
C 5.38%, 4/22/99 (c)............ A 30 29,979
Dollar Financial Group, Inc.
Series A 10.875%, 11/15/06...... B 75 72,375
</TABLE>
26 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Bond Fund
<TABLE>
<CAPTION>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ----------- -----------
<S> <C> <C> <C>
FINANCIAL (DIVERSIFIED)--CONTINUED
Socgen Real Estate LLC Series A
144A 7.64%, 12/29/49 (b)(c)..... A $ 650 $ 588,149
-----------
892,260
-----------
GAMING, LOTTERY & PARIMUTUEL COMPANIES--3.1%
Bally's Park Place, Inc. 9.25%,
3/15/04......................... NR 725 757,625
Caesars World, Inc. 8.875%,
8/15/02......................... B 85 86,700
-----------
844,325
-----------
HEALTH CARE (SPECIALIZED SERVICES)--1.5%
Universal Health Services, Inc.
8.75%, 8/15/05.................. Ba 400 404,000
-----------
INVESTMENT BANKING/BROKERAGE--2.5%
Donaldson, Lufkin & Jenrette,
Inc. 6.11%, 5/15/01............. A 350 353,162
Donaldson, Lufkin & Jenrette,
Inc. 6.875%, 11/1/05............ A 50 52,116
Donaldson, Lufkin & Jenrette,
Inc. 6.50%, 6/1/08.............. A 200 202,963
Lehman Brothers Holdings, Inc.
8.80%, 3/1/15................... Baa 80 86,701
-----------
694,942
-----------
LEISURE TIME (PRODUCTS)--0.4%
Royal Caribbean Cruises Ltd.
7.50%, 10/15/27................. Baa 100 99,179
-----------
LODGING-HOTELS--2.2%
Hammons (John Q.) Hotels, Inc.
8.875%, 2/15/04................. B 530 518,075
Hammons (John Q.) Hotels, Inc.
9.75%, 10/1/05.................. B 100 99,250
-----------
617,325
-----------
<CAPTION>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ----------- -----------
<S> <C> <C> <C>
MANUFACTURING (SPECIALIZED)--0.9%
Hawk Corp. 10.25%, 12/1/03....... Ba $ 10 $ 10,050
Tokheim Corp. Series B 11.50%,
8/1/06.......................... B 200 231,000
-----------
241,050
-----------
OIL & GAS (DRILLING & EQUIPMENT)--1.9%
Noble Drilling Corp. 9.125%,
7/1/06.......................... Baa 90 101,721
Trico Marine Services, Inc.
Series F 8.50%, 8/1/05.......... Ba 500 425,000
-----------
526,721
-----------
OIL & GAS (EXPLORATION & PRODUCTION)--2.0%
El Paso Tenneco RACERS 97-C-1-2
144A 9.14%, 12/31/01 (b)........ NR 300 324,300
Harcor Energy, Inc. Series B
14.875%, 7/15/02................ A 200 233,562
-----------
557,862
-----------
PUBLISHING (NEWSPAPERS)--1.1%
Garden State Newspapers, Inc.
Series B 8.75%, 10/1/09......... B 325 315,250
-----------
REITS--5.1%
ERP Operating L.P. 7.57%,
8/15/26......................... A 170 183,769
Evans Withycombe Residential,
Inc. 7.50%, 4/15/04............. A 100 107,337
First Industrial, L.P. 7.15%,
5/15/27......................... Baa 500 509,150
Property Trust of America 6.875%,
2/15/08......................... Baa 5 5,192
Security Capital Pacific Trust
7.375%, 10/15/06................ Baa 100 108,127
Security Capital Pacific Trust
7.90%, 2/15/16.................. Baa 200 203,200
Washington Real Estate Investment
Trust 7.125%, 8/13/03........... Baa 110 114,862
</TABLE>
See Notes to Financial Statements 27
<PAGE>
Phoenix-Seneca Bond Fund
<TABLE>
<CAPTION>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ----------- -----------
<S> <C> <C> <C>
REITS--CONTINUED
Weingarten Realty Investors
Series A 6.88%, 6/25/27......... A $ 150 $ 160,766
-----------
1,392,403
-----------
RESTAURANTS--0.2%
Foodmaker, Inc. Series B 9.75%,
11/1/03......................... BB-(d) 50 50,875
-----------
RETAIL (DRUG STORES)--0.4%
Duane Reade, Inc. 9.25%,
2/15/08......................... B 100 97,500
-----------
RETAIL (FOOD CHAINS)--2.2%
Kroger Co. 6%, 7/1/00............ Baa 500 505,610
Smith's Food & Drug Centers, Inc.
Series 94-A2 8.64%, 7/2/12...... BB+(d) 100 100,000
-----------
605,610
-----------
RETAIL (GENERAL MERCHANDISE)--5.2%
K Mart Funding Corp. Series F
8.80%, 7/1/10................... Ba 500 498,784
Wal-Mart Stores, Inc. Series A-2
8.85%, 1/2/15................... Aa 750 919,451
-----------
1,418,235
-----------
SERVICES (COMMERCIAL & CONSUMER)--12.6%
Coinmach Laundry Corp. Series D
11.75%, 11/15/05................ B 505 532,775
Corporate Express, Inc. 144A
9.625%, 6/1/08 (b).............. B 700 668,500
Loomis Fargo & Co. 10%,
1/15/04......................... B 300 288,000
Protection One, Inc. 144A 7.375%,
8/15/05 (b)..................... Ba 500 506,250
Rental Service Corp. 9%,
5/15/08......................... B 750 708,750
United Rentals, Inc. 144A 9.50%,
6/1/08 (b)...................... B 250 250,625
United Rentals, Inc. 144A 8.80%,
8/15/08 (b)..................... B 500 470,000
Williams Scotsman, Inc. 9.875%,
6/1/07.......................... B 50 49,875
-----------
3,474,775
-----------
TELECOMMUNICATIONS (LONG DISTANCE)--2.7%
MCI WorldCom, Inc. 9.375%,
1/15/04......................... Baa 285 333,587
<CAPTION>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ----------- -----------
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--CONTINUED
MCI WorldCom, Inc. 6.40%,
8/15/05......................... Baa $ 400 $ 420,330
-----------
753,917
-----------
WASTE MANAGEMENT--2.8%
USA Waste Services, Inc. 6.125%,
7/15/01......................... Baa 750 767,269
-----------
TOTAL CORPORATE BONDS
(Identified cost $19,056,169).............................. 19,105,282
-----------
NON-AGENCY MORTGAGE-BACKED SECURITIES--3.8%
DLJ Commercial Mortgage Corp.
98-CG1, A1A 6.11%, 12/10/07..... AAA(d) 986 1,010,334
G.E. Capital Mortgage Services,
Inc. 94-21, B1 6.50% 8/25/09.... A 32 32,994
-----------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(Identified cost $1,013,915)............................... 1,043,328
-----------
FOREIGN GOVERNMENT SECURITIES--0.1%
BRAZIL--0.1%
Republic of Brazil - IDU Series A
6.75%, 1/1/01 (c)............... B 18 15,729
-----------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $17,584).................................. 15,729
-----------
FOREIGN CORPORATE BONDS--5.3%
CANADA--2.0%
Rogers CableSystems Ltd. Series B
10%, 3/15/05.................... Ba 500 548,750
-----------
JAPAN--0.6%
SB Treasury Co. LLC 144A 9.40%,
12/29/49 (b)(c)................. Baa 200 168,298
-----------
UNITED KINGDOM--2.7%
Abbey National PLC 7.35%,
10/29/49 (c).................... Aa 100 101,080
Credit Suisse Group 144A 7.90%,
5/29/49 (b)(c).................. A 350 368,180
Terra Nova (U.K.) Holdings 7.20%,
8/15/07......................... Baa 250 263,340
-----------
732,600
-----------
TOTAL FOREIGN CORPORATE BONDS
(Identified cost $1,482,872)............................... 1,449,648
-----------
</TABLE>
28 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Bond Fund
<TABLE>
<CAPTION>
SHARES VALUE
----------- -----------
<S> <C> <C> <C>
CONVERTIBLE PREFERRED STOCKS--3.8%
COMPUTERS (SOFTWARE & SERVICES)--3.2%
Microsoft Corp. Series A Cv. Pfd.
$2.196.......................... 9,250 $ 891,469
-----------
REITS--0.3%
Equity Office Properties Trust
Series B Cv. Pfd. 144A 5.25%
(b)............................. 2,000 83,750
-----------
SERVICES (COMMERCIAL & CONSUMER)--0.3%
United Rentals, Inc. Cv. Pfd.
144A 6.50% (b).................. 2,000 71,500
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $1,030,000)............................. 1,046,719
-----------
COMMON STOCKS--0.7%
OIL (DOMESTIC INTEGRATED)--0.7%
Kinder Morgan Energy Partners,
L.P............................. 5,300 175,563
-----------
TOTAL COMMON STOCKS
(Identified cost $195,107)............................... 175,563
-----------
TOTAL LONG-TERM INVESTMENTS--97.5%
(Identified cost $26,591,164)............................ 26,777,252
-----------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
---------- ----------- -----------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--0.7%
FEDERAL AGENCY SECURITIES--0.7%
FHLB 4.95%, 10/1/98.............. A-1+ $ 200 $ 200,000
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $200,000)................................. 200,000
-----------
TOTAL INVESTMENTS--98.2%
(Identified cost $26,791,164).............................. 26,977,252(a)
Cash and receivables, less liabilities--1.8%............... 498,252
-----------
NET ASSETS--100.0%........................................... $27,475,504
-----------
-----------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $637,697 and gross
depreciation of $451,664 for federal income tax purposes. At September 30,
1998, the aggregate cost of securities for federal income tax purposes was
$26,791,219.
(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 September 30,
1998, these securities amounted to a value of $5,216,861 or 19% of net
assets.
(c) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
(d) As rated by Standard & Poor's, Fitch or Duff & Phelps.
See Notes to Financial Statements 29
<PAGE>
Phoenix-Seneca Bond Fund
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $26,791,164) $ 26,977,252
Cash 49,259
Receivables
Interest and dividends 446,678
Fund shares sold 33,893
Deferred organization expenses 24,185
Prepaid expenses 1,679
-------------
Total assets 27,532,946
-------------
LIABILITIES
Payables
Fund shares repurchased 195
Dividend distributions 3,875
Transfer agent fee 13,888
Investment advisory fee 9,007
Administration fee 5,753
Trustees' fee 2,500
Distribution fee 1,003
Accrued expenses 21,221
-------------
Total liabilities 57,442
-------------
NET ASSETS $ 27,475,504
-------------
-------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 27,072,307
Undistributed net investment loss (11,789)
Accumulated net realized gain 228,898
Net unrealized appreciation 186,088
-------------
NET ASSETS $ 27,475,504
-------------
-------------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $26,454,797) 2,476,817
Net asset value and offering price per share $10.68
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $348,268) 32,617
Net asset value per share $10.68
Offering price per share $10.68/(1-4.75%) $11.21
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $233,533) 21,880
Net asset value and offering price per share $10.67
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $438,906) 41,134
Net asset value and offering price per share $10.67
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 1,028,979
Dividends 17,558
------------
Total investment income 1,046,537
------------
EXPENSES
Investment advisory fee 69,747
Distribution fee--Class A 154
Distribution fee--Class B 341
Distribution fee--Class C 507
Administration fee 50,146
Custody and accounting 35,950
Transfer agent 27,367
Registration 19,085
Trustees 17,549
Amortization of deferred organization expenses 9,674
Professional 6,708
Printing 2,400
Miscellaneous 3,331
------------
Total expenses 242,959
Less expenses borne by investment adviser (12,142)
------------
Net expenses 230,817
------------
NET INVESTMENT INCOME 815,720
------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain on securities 272,954
Net change in unrealized appreciation (depreciation) on
investments (52,850)
------------
NET GAIN ON INVESTMENTS 220,104
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,035,824
------------
------------
</TABLE>
30 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Bond Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 1998 SEPTEMBER 30, 1997
------------------- -------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 815,720 $ 429,374
Net realized gain 272,954 111,291
Net change in unrealized appreciation
(depreciation) (52,850) 189,346
------------------- -------------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 1,035,824 730,011
------------------- -------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income--Class X (816,277) (462,401)
Net investment income--Class A (4,720) (2,145)
Net investment income--Class B (2,101) --
Net investment income--Class C (3,926) --
Net realized gains--Class X (157,929) (13,922)
Net realized gains--Class A -- (672)
Net realized gains--Class B -- --
Net realized gains--Class C -- --
------------------- -------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (984,953) (479,140)
------------------- -------------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares
(1,869,631 and 496,127 shares,
respectively) 20,104,967 5,079,683
Net asset value of shares merged from
Class A (0 and 23,704 shares,
respectively) -- 250,425
Net asset value of shares issued from
reinvestment of distributions
(89,132 and 45,088 shares,
respectively) 952,261 460,532
Cost of shares repurchased (334,511
and 101,560 shares, respectively) (3,582,416) (1,048,447)
------------------- -------------------
Total 17,474,812 4,742,193
------------------- -------------------
CLASS A
Proceeds from sales of shares (48,090
and 7,990 shares, respectively) 515,460 82,034
Net asset value of shares issued from
reinvestment of distributions
(388 and 140 shares, respectively) 4,147 1,437
Net asset value of shares merged with
Class X (0 and 24,954 shares,
respectively) -- (250,425)
Cost of shares repurchased (15,861 and
2,595 shares, respectively) (168,344) (26,543)
------------------- -------------------
Total 351,263 (193,497)
------------------- -------------------
CLASS B
Proceeds from sales of shares (23,658
and 0 shares, respectively) 253,821 --
Net asset value of shares issued from
reinvestment of distributions
(135 and 0 shares, respectively) 1,443 --
Cost of shares repurchased (1,913 and
0 shares, respectively) (20,509) --
------------------- -------------------
Total 234,755 --
------------------- -------------------
CLASS C
Proceeds from sales of shares (40,951
and 0 shares, respectively) 439,691 --
Net asset value of shares issued from
reinvestment of distributions
(183 and 0 shares, respectively) 1,951 --
Cost of shares repurchased (0 and 0
shares, respectively) -- --
------------------- -------------------
Total 441,642 --
------------------- -------------------
INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 18,502,472 4,548,696
------------------- -------------------
NET INCREASE IN NET ASSETS 18,553,343 4,799,567
NET ASSETS
Beginning of period 8,922,161 4,122,594
------------------- -------------------
END OF PERIOD (INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$(11,789) AND $4,453, RESPECTIVELY) $27,475,504 $8,922,161
------------------- -------------------
------------------- -------------------
</TABLE>
See Notes to Financial Statements 31
<PAGE>
Phoenix-Seneca Bond Fund
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
CLASS X
----------------------------------------------
FROM
YEAR ENDED SEPTEMBER 30, INCEPTION
3/7/96 TO
1998 1997 9/30/96
------------ ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of
period $10.47 $ 10.09 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.56 0.62(1) 0.31(1)
Net realized and unrealized gain
(loss) 0.40 0.47 0.08
------------ ----------- -----------
TOTAL FROM INVESTMENT
OPERATIONS 0.96 1.09 0.39
------------ ----------- -----------
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.57) (0.69) (0.30)
Dividends from net realized gains (0.18) (0.02) --
------------ ----------- -----------
TOTAL DISTRIBUTIONS (0.75) (0.71) (0.30)
------------ ----------- -----------
Change in net asset value 0.21 0.38 0.09
------------ ----------- -----------
NET ASSET VALUE, END OF PERIOD $10.68 $ 10.47 $ 10.09
------------ ----------- -----------
------------ ----------- -----------
Total return(2) 9.44% 11.26% 4.02%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $ 26,455 $ 8,922 $ 3,927
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.66% 1.53%(5) 0.56%(3)(5)
Net investment income (loss) 5.92% 6.31% 7.54%(3)
Portfolio turnover 112% 99.68% 52.82%(4)
</TABLE>
(1) Net investment income is after waiver of certain fees and reimbursement of
certain expenses by the investment adviser. If the investment adviser had
not waived fees and reimbursed expenses, net investment income (loss) per
share would have been $0.47 and $(0.05) for the year ended September 30,
1997 and the period ended September 30, 1996, respectively.
(2) Total return represents total return for the period indicated. The total
return would have been lower if certain fees and expenses had not been
waived or reimbursed by the investment adviser.
(3) Annualized.
(4) Not annualized.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 3.41% and
9.31% for the year ended September 30, 1997 and the period ended September
30, 1996, respectively.
32 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Bond Fund
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
------------ ----------- -----------
FROM FROM FROM
INCEPTION INCEPTION INCEPTION
7/1/98 TO 7/1/98 TO 7/1/98 TO
9/30/98 9/30/98 9/30/98
------------ ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of
period $ 10.79 $ 10.79 $ 10.79
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.13(1)(10) 0.11(2)(10) 0.10(3)(10)
Net realized and unrealized gain
(loss) (0.07) (0.08) (0.07)
------ ------ ------
Total from investment
operations 0.06 0.03 0.03
------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.17) (0.15) (0.15)
Dividends from net realized gains -- -- --
------ ------ ------
TOTAL DISTRIBUTIONS (0.17) (0.15) (0.15)
------ ------ ------
Change in net asset value (0.11) (0.12) (0.12)
------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 10.68 $ 10.67 $ 10.67
------ ------ ------
------ ------ ------
Total return(4) 0.53%(6) 0.28%(6) 0.28%(6)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $348 $234 $439
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.45%(5)(7) 3.20%(5)(8) 3.20%(5)(9)
Net investment income (loss) 5.17%(5) 4.42%(5) 4.27%(5)
Portfolio turnover 112% 112% 112%
</TABLE>
(1) Net investment income is after waiver of certain fees and reimbursement of
certain expenses by the investment adviser. If the investment adviser had
not waived fees and reimbursed expenses, net investment income (loss) per
share would have been $(0.03) for the period ended September 30, 1998.
(2) Net investment income is after waiver of certain fees and reimbursement of
certain expenses by the investment adviser. If the investment adviser had
not waived fees and reimbursed expenses, net investment income (loss) per
share would have been $(0.21) for the period ended September 30, 1998.
(3) Net investment income is after waiver of certain fees and reimbursement of
certain expenses by the investment adviser. If the investment adviser had
not waived fees and reimbursed expenses, net investment income (loss) per
share would have been $(0.08) for the period ended September 30, 1998.
(4) Total return represents total return for the period indicated. The total
return would have been lower if certain fees and expenses had not been
waived or reimbursed by the investment adviser.
(5) Annualized.
(6) Not annualized.
(7) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 8.99% for
the period ended September 30, 1998.
(8) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 15.79%
for the period ended September 30, 1998.
(9) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 11.22%
for the period ended September 30, 1998.
(10) Computed using average shares outstanding.
See Notes to Financial Statements 33
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGERS,
GAIL SENECA, PH.D. AND DAVID SHAPIRO, J.D.
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: Phoenix-Seneca Real Estate Securities Fund seeks high total return, both
current income and capital appreciation, through investments in Real Estate
Investment Trusts (REITs) and real estate-related securities. Investors should
note that real estate investing involves certain risks, such as refinancing,
economic impact on the industry, changes in property values, dependency on
management skills, and risks similar to those of small-company investing.
Q: HOW DID THE PORTFOLIO PERFORM FOR THE FISCAL YEAR?
A: For the fiscal year, the Phoenix-Seneca Real Estate Securities Fund Class X
shares returned (18.33)%, and Class A shares returned (19.52)% compared with a
(14.31)% return for the Wilshire REIT Index.(1) Since their inception on July 1,
1998, Class B shares and Class C shares both returned (11.97)% compared with
(10.64)% for the Wilshire REIT Index. All performance figures assume
reinvestment of distributions and exclude the effect of sales charges.
Q: WHAT FACTORS AFFECTED PERFORMANCE?
A: General uncertainty in the REIT market coupled with the elimination of the
"paired share"(2) status for certain REITs created a cloud over the sector for
the majority of this reporting period. Additionally, the easy availability of
credit to the private real estate market created strong upward pressure on
prices that many felt could not be sustained.
Q: WERE ANY HOLDINGS PARTICULARLY DISAPPOINTING?
A: Yes, the hotel sector was particularly disappointing, declining approximately
50% from their highest levels. Fundamentally, full-service hotels continue to
report positive growth in revenue per available room. Dividend yields are
double-digit (10-12%) with good coverage to the dividends. Full-service hotel
companies are selling at a substantial discount to their net asset value as well
as to replacement cost and private market valuations.
Q: HAVE ANY SIGNIFICANT CHANGES BEEN MADE?
A: The portfolio is constantly being adjusted by paring the weakest performers
and replacing them with stronger performers. Since access to capital is likely
to be an issue for the foreseeable future, companies with strong balance sheets
and innovative management will be favored.
Q: WHAT IS YOUR OUTLOOK FOR THE FUND?
A: Our outlook for the fund is one of cautious optimism. REIT yields are at an
all-time high relative to the 10-year Treasury bond, and underlying fundamentals
are strong, with limited new construction in most markets. We believe REITs
continue to be sound investments.
OCTOBER 14, 1998
(1)THE WILSHIRE REIT INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF TOTAL
RETURN PERFORMANCE OF PUBLICLY TRADED REAL ESTATE EQUITY. THE INDEX IS COMPRISED
OF COMPANIES WHOSE CHARTER IS THE EQUITY OWNERSHIP AND OPERATION OF COMMERCIAL
REAL ESTATE. THE INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT AND IS CALCULATED
MONTHLY RATHER THAN DAILY.
(2)"PAIRED SHARE" REFERS TO CERTAIN REITS' ABILITY TO GENERATE REVENUE FROM BOTH
MANAGEMENT FEES AND RENTAL INCOME.
34
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS(1)
(AS OF 9/30/98)
1 YEAR SINCE INCEPTION
------------- ---------------
<S> <C> <C>
X Shares(2) (INCEPTION: 3/12/96)
NAV (18.33)% 8.98%
A Shares(2) (INCEPTION: 3/12/96)
NAV (19.52)% 7.85%
POP (23.33)% 5.81%
B Shares(2) (INCEPTION: 7/1/98)
CDSC - (16.35)%
No CDSC - (11.97)%
C Shares(2) (INCEPTION: 7/1/98)
No CDSC - (12.85)%
CDSC - (11.97)%
Wilshire REIT
Index (14.31)% note 3
</TABLE>
<TABLE>
<CAPTION>
SECTOR WEIGHTINGS (AS A PERCENTAGE OF REIT HOLDINGS)
<S> <C>
Commercial 33%
Residential 26%
Hotels 14%
Diversified 12%
Retail 11%
Net Lease 4%
</TABLE>
(1) Total returns are historical and include changes in share price and
the reinvestment of both dividends and capital gains distributions.
(2) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 4.75% sales charge. "NAV" (Net Asset Value) total
returns do not include the effect of any sales charge. A contingent deferred
sales charge (CDSC) is applied to redemptions of certain classes of shares
that do not have a sales charge applied at the time of purchase. CDSC charges
for B shares decline from 5% to 0% over a five year period. CDSC charges
for C shares are 1% in the first year and 0% thereafter.
(3) The Wilshire REIT Index performance is 12.87% for Class X and A
for the period 3/31/96 to 9/30/98 and (10.64)% for Class B and C
for the period 6/30/98 to 9/30/98.
All returns represent past performance which may not be indicative of
future performance. The investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
<TABLE>
<CAPTION>
Phoenix-Seneca Phoenix-Seneca
Real Estate Real Estate Fund Class A Wilshire
Class X at NAV(4) with 4.75% sales charge(4) REIT Index(5)
------------------ -------------------------- ---------------
<S> <C> <C> <C>
3/12/96 $10,000 $9,524 $10,000
9/30/96 $11,261 $10,667 $11,111
9/30/97 $15,252 $14,352 $15,800
9/30/98 $12,456 $11,550 $13,538
</TABLE>
(4) THIS CHART ILLUSTRATES NAV RETURNS ON CLASS X SHARES AND POP RETURNS ON
CLASS A SHARES SINCE INCEPTION. RETURNS ON CLASS B AND CLASS C SHARES WILL
VARY DUE TO DIFFERING SALES CHARGES.
(5) THE WILSHIRE REIT INDEX IS AN UNMANAGED INDEX OF COMPANIES WHOSE
CHARTER IS THE EQUITY OWNERSHIP AND OPERATION OF COMMERCIAL REAL ESTATE
AND INCLUDES REINVESTED DIVIDENDS.
35
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TEN LARGEST HOLDINGS AT SEPTEMBER 30, 1998 (AS A PERCENTAGE OF REIT HOLDINGS)
<S> <C> <C>
1. Equity Residential Properties Trust 5.7%
APARTMENT REIT
2. Archstone Communities Trust 5.3%
APARTMENT REIT
3. Equity Office Properties Trust 4.8%
OFFICE/INDUSTRIAL REIT
4. Essex Property Trust, Inc. 4.7%
APARTMENT REIT
5. Urban Shopping Centers, Inc. 4.7%
REGIONAL MAIL REIT
6. Spieker Properties, Inc. 4.3%
OFFICE/INDUSTRIAL REIT
7. Mack-Cali Realty Corp. 4.3%
OFFICE/INDUSTRIAL REIT
8. Crescent Real Estate Equities Co. 4.0%
DIVERSIFIED REIT
9. FelCor Lodging Trust, Inc. 4.0%
HOTEL REIT
10. Pacific Gulf Properties, Inc. 3.7%
DIVERSIFIED REIT
</TABLE>
INVESTMENTS AT SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
COMMON STOCKS--93.5%
REAL ESTATE INVESTMENT TRUSTS--92.4%
COMMERCIAL--29.5%
FINANCE-MORTGAGE REIT--4.1%
Capital Trust Class A (b)............................. 40,000 $ 260,000
Northstar Financial Corp. (c)......................... 35,000 700,000
------------
960,000
------------
OFFICE/INDUSTRIAL--25.4%
Bedford Property Investors, Inc....................... 37,100 667,800
Boston Properties, Inc................................ 6,500 185,250
Cornerstone Properties, Inc........................... 41,500 627,687
Equity Office Properties Trust........................ 45,100 1,104,950
First Industrial Realty Trust, Inc.................... 24,500 624,750
Mack-Cali Realty Corp................................. 32,800 984,000
Prentiss Properties Trust............................. 30,400 725,800
Spieker Properties, Inc............................... 27,000 992,250
------------
5,912,487
------------
TOTAL COMMERCIAL.................................................. 6,872,487
------------
DIVERSIFIED--9.3%
Crescent Real Estate Equities Co...................... 36,000 909,000
Entertainment Properties Trust........................ 12,000 222,000
Liberty Property Trust................................ 8,050 191,691
Pacific Gulf Properties, Inc.......................... 42,050 846,256
------------
2,168,947
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
HOTELS--13.6%
FelCor Lodging Trust, Inc............................. 37,275 $ 906,248
Meristar Hospitality Corp............................. 27,374 467,069
Patriot American Hospitality, Inc..................... 54,539 695,372
Starwood Hotel & Resorts combined certificate......... 16,000 488,000
Sunstone Hotel Investors, Inc......................... 67,500 611,719
------------
3,168,408
------------
NET LEASE--3.6%
TriNet Corporate Realty Trust, Inc.................... 25,500 831,938
------------
RESIDENTIAL--25.4%
APARTMENTS--19.8%
Archstone Communities Trust........................... 59,996 1,222,419
Avalon Bay Communities, Inc........................... 15,750 536,484
Berkshire Realty Company, Inc......................... 43,500 454,031
Equity Residential Properties Trust................... 31,200 1,316,250
Essex Property Trust, Inc............................. 35,000 1,085,000
------------
4,614,184
------------
MANUFACTURED HOMES--5.6%
Chateau Communities, Inc.............................. 20,700 578,306
Manufactured Home Communities, Inc.................... 28,700 730,056
------------
1,308,362
------------
TOTAL RESIDENTIAL................................................. 5,922,546
------------
</TABLE>
36 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
RETAIL--11.0%
<S> <C> <C>
COMMUNITY/NEIGHBORHOOD--0.8%
Developers Diversified Realty Corp.................... 10,700 $ 195,275
------------
REGIONAL MALLS--10.2%
Macerich Co. (The).................................... 26,500 712,188
Simon Property Group, Inc............................. 20,415 607,346
Urban Shopping Centers, Inc........................... 32,500 1,068,438
------------
2,387,972
------------
TOTAL RETAIL...................................................... 2,583,247
------------
TOTAL REAL ESTATE INVESTMENT TRUSTS
(Identified cost $24,687,745)................................... 21,547,573
------------
REAL ESTATE OPERATING COMPANIES--1.1%
Real Estate Development--1.1%
Catellus Development Corp. (b)........................ 19,400 252,200
------------
TOTAL REAL ESTATE OPERATING COMPANIES
(Identified cost $316,589)...................................... 252,200
------------
TOTAL COMMON STOCKS
(Identified cost $25,004,334)................................... 21,799,773
------------
CONVERTIBLE PREFERRED STOCKS--4.8%
REAL ESTATE INVESTMENT TRUSTS--4.8%
COMMERCIAL--2.8%
OFFICE/INDUSTRIAL--2.8%
Reckson Associates Realty Corp. Series A Cv. Pfd.
7.625%............................................... 30,000 656,250
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
DIVERSIFIED--2.0%
Glenborough Realty Trust, Inc. Series A Cv. Pfd.
7.75%................................................ 23,050 $ 469,644
------------
TOTAL REAL ESTATE INVESTMENT TRUSTS
(Identified cost $1,297,061).................................... 1,125,894
------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $1,297,061).................................... 1,125,894
------------
TOTAL LONG-TERM INVESTMENTS--98.3%
(Identified cost $26,301,395)......................... 22,925,667
------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000)
--------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--1.2%
REPURCHASE AGREEMENT--1.2%
State Street Bank & Trust Co. repurchase agreement,
4.75%, dated 9/30/98 due 10/1/98, repurchase price
$281,437 collateralized by U.S. Treasury Note 7%,
7/15/06, market value $287,329....................... $ 281 281,400
------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $281,400)...................................... 281,400
------------
TOTAL INVESTMENTS--99.5%
(Identified cost $26,582,795)................................... 23,207,067(a)
Cash and receivables, less liabilities--0.5%.................... 122,819
------------
NET ASSETS--100.0%................................................ $23,329,886
------------
------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $458,863 and gross
depreciation of $3,843,320 for federal income tax purposes. At September
30, 1998, the aggregate cost of securities for federal income tax purposes
was $26,591,524.
(b) Non-income producing.
(c) Private Placement.
See Notes to Financial Statements 37
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $26,582,795) $ 23,207,067
Cash 97
Dividends and interest receivable 202,370
Deferred organization expenses 24,185
Prepaid expenses 4,588
-------------
Total assets 23,438,307
-------------
LIABILITIES
Payables
Fund shares repurchased 12,280
Dividend distributions 3,176
Investment advisory fee 32,287
Transfer agent fee 19,135
Administration fee 5,753
Trustees' fee 2,500
Distribution fee 1,400
Accrued expenses 31,890
-------------
Total liabilities 108,421
-------------
NET ASSETS $ 23,329,886
-------------
-------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 26,009,050
Undistributed net investment income 169,785
Accumulated net realized gain 526,779
Net unrealized depreciation (3,375,728)
-------------
NET ASSETS $ 23,329,886
-------------
-------------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $21,794,232) 1,962,015
Net asset value and offering price per share $11.11
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $1,357,306) 123,408
Net asset value per share $11.00
Offering price per share $11.00/(1-4.75%) $11.55
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $90,532) 8,223
Net asset value and offering price per share $11.01
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $87,816) 7,978
Net asset value and offering price per share $11.01
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 1,566,519
Interest 24,509
------------
Total investment income 1,591,028
------------
EXPENSES
Investment advisory fee 242,177
Distribution fee--Class A 5,951
Distribution fee--Class B 241
Distribution fee--Class C 231
Administration fee 55,183
Custody and accounting 43,850
Transfer agent 41,787
Registration 21,835
Trustees 17,549
Professional 10,673
Amortization of deferred organization expenses 9,674
Printing 4,108
Miscellaneous 7,250
------------
Total expenses 460,509
Less expenses borne by investment adviser (8,695)
------------
Net expenses 451,814
------------
NET INVESTMENT INCOME 1,139,214
------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain on securities 551,625
Net change in unrealized appreciation (depreciation) on
investments (7,262,351)
------------
NET LOSS ON INVESTMENTS (6,710,726)
------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (5,571,512)
------------
------------
</TABLE>
38 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
September 30, 1998 September 30, 1997
------------------- -------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 1,139,214 $ 440,450
Net realized gain 551,625 1,229,877
Net change in unrealized appreciation
(depreciation) (7,262,351) 3,822,456
------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (5,571,512) 5,492,783
------------------- -------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income--Class X (927,830) (425,038)
Net investment income--Class A (63,404) (29,699)
Net investment income--Class B (523) --
Net investment income--Class C (508) --
Net realized gains--Class X (1,123,456) (4,331)
Net realized gains--Class A (124,174) (194)
Net realized gains--Class B -- --
Net realized gains--Class C -- --
------------------- -------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (2,239,895) (459,262)
------------------- -------------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (190,605
and 2,618,177 shares, respectively) 2,502,892 32,751,944
Net asset value of shares issued from
reinvestment of distributions
(153,188 and 31,702 shares,
respectively) 2,018,886 424,162
Cost of shares repurchased (297,712
and 830,654 shares, respectively) (3,754,823) (10,635,920)
------------------- -------------------
Total 766,955 22,540,186
------------------- -------------------
CLASS A
Proceeds from sales of shares (31,969
and 262,586 shares, respectively) 436,921 3,366,423
Net asset value of shares issued from
reinvestment of distributions
(13,501 and 2,082 shares,
respectively) 179,472 27,973
Cost of shares repurchased (138,471
and 68,344 shares, respectively) (1,815,501) (895,219)
------------------- -------------------
Total (1,199,108) 2,499,177
------------------- -------------------
CLASS B
Proceeds from sales of shares (8,978
and 0 shares, respectively) 113,001 --
Net asset value of shares issued from
reinvestment of distributions
(47 and 0 shares, respectively) 523 --
Cost of shares repurchased (802 and 0
shares, respectively) (9,281) --
------------------- -------------------
Total 104,243 --
------------------- -------------------
CLASS C
Proceeds from sales of shares (7,932
and 0 shares, respectively) 100,250 --
Net asset value of shares issued from
reinvestment of distributions
(46 and 0 shares, respectively) 506 --
Cost of shares repurchased (0 and 0
shares, respectively) -- --
------------------- -------------------
Total 100,756 --
------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (227,154) 25,039,363
------------------- -------------------
NET INCREASE (DECREASE) IN NET ASSETS (8,038,561) 30,072,884
NET ASSETS
Beginning of period 31,368,447 1,295,563
------------------- -------------------
END OF PERIOD (INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME OF
$169,785 AND $23,407, RESPECTIVELY) $23,329,886 $31,368,447
------------------- -------------------
------------------- -------------------
</TABLE>
See Notes to Financial Statements 39
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS X
----------------------------------------------
FROM
YEAR ENDED SEPTEMBER 30, INCEPTION
3/12/96 TO
1998 1997 9/30/96
------------ ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of
period $ 14.71 $ 11.10 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.54 0.13(1) 0.13(1)
Net realized and unrealized gain
(loss) (3.10) 3.77 1.10
------------ ----------- -----------
TOTAL FROM INVESTMENT
OPERATIONS (2.56) 3.90 1.23
------------ ----------- -----------
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.46) (0.28) (0.13)
Dividends from net realized gains (0.58) (0.01) --
------------ ----------- -----------
TOTAL DISTRIBUTIONS (1.04) (0.29) (0.13)
------------ ----------- -----------
Change in net asset value (3.60) 3.61 1.10
------------ ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 11.11 $ 14.71 $ 11.10
------------ ----------- -----------
------------ ----------- -----------
Total return(3) (18.33)% 35.44% 12.39%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $ 21,794 $ 28,193 $ 1,073
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.47% 1.99%(6) 1.00%(4)(6)
Net investment income (loss) 4.14% 2.38% 4.39%(4)
Portfolio turnover 53% 75.68% 30.70%(5)
<CAPTION>
CLASS A
----------------------------------------
FROM
YEAR ENDED SEPTEMBER 30, INCEPTION
3/12/96 TO
1998 1997 9/30/96
----------- ----------- ----------
<S> <C> <C> <C>
Net asset value, beginning of
period $ 14.68 $ 11.08 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.35 0.03(2) 0.13(2)
Net realized and unrealized gain
(loss) (3.08) 3.78 1.08
----------- ----------- ----------
TOTAL FROM INVESTMENT
OPERATIONS (2.73) 3.81 1.21
----------- ----------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.37) (0.20) (0.13)
Dividends from net realized gains (0.58) (0.01) --
----------- ----------- ----------
TOTAL DISTRIBUTIONS (0.95) (0.21) (0.13)
----------- ----------- ----------
Change in net asset value (3.68) 3.60 1.08
----------- ----------- ----------
NET ASSET VALUE, END OF PERIOD $ 11.00 $ 14.68 $ 11.08
----------- ----------- ----------
----------- ----------- ----------
Total return(3) (19.52)% 34.54% 12.22%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $ 1,357 $ 3,176 $ 222
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.76% 2.91%(7) 1.65%(4)(7)
Net investment income (loss) 2.45% 1.37% 4.61%(4)
Portfolio turnover 53% 75.68% 30.70%(5)
</TABLE>
(1) Net investment income is after waiver of certain fees and reimbursement of
certain expenses by the investment adviser. If the investment adviser had
not waived fees and reimbursed expenses, net investment income (loss) per
share would have been $0.13 and $(1.45) for the year ended September 30,
1997 and the period ended September 30, 1996, respectively.
(2) Net investment income is after waiver of certain fees and reimbursement of
certain expenses by the investment adviser. If the investment adviser had
not waived fees and reimbursed expenses, net investment income (loss) per
share would have been $(0.04) and $(1.96) for the year ended September 30,
1997 and the period ended September 30, 1996, respectively.
(3) Total return represents total return for the period indicated. The total
return would have been lower if certain fees and expenses had not been
waived or reimbursed by the investment adviser.
(4) Annualized.
(5) Not annualized.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.99% and
53.04% for the year ended September 30, 1997 and the period ended September
30, 1996, respectively.
(7) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 3.79% and
73.01% for the year ended September 30, 1997 and the period ended September
30, 1996, respectively.
40 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
CLASS B CLASS C
------------ -----------
FROM FROM
INCEPTION INCEPTION
7/1/98 TO 7/1/98 TO
9/30/98 9/30/98
------------ -----------
<S> <C> <C>
Net asset value, beginning of
period $ 12.58 $ 12.58
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.07(1) 0.07(2)
Net realized and unrealized gain (1.58) (1.58)
------ ------
TOTAL FROM INVESTMENT
OPERATIONS (1.51) (1.51)
------ ------
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.06) (0.06)
Dividends from net realized gains -- --
------ ------
TOTAL DISTRIBUTIONS (0.06) (0.06)
------ ------
Change in net asset value (1.57) (1.57)
------ ------
NET ASSET VALUE, END OF PERIOD $ 11.01 $ 11.01
------ ------
------ ------
Total return(3) (11.97)%(5) (11.97)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $91 $88
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 3.80%(4)(6) 3.80%(4)(7)
Net investment income (loss) 2.50%(4) 2.44%(4)
Portfolio turnover 53% 53%
</TABLE>
(1) Net investment income is after waiver of certain fees and reimbursement of
certain expenses by the investment adviser. If the investment adviser had
not waived fees and reimbursed expenses, net investment income (loss) per
share would have been $(0.46) for the period ended September 30, 1998.
(2) Net investment income is after waiver of certain fees and reimbursement of
certain expenses by the investment adviser. If the investment adviser had
not waived fees and reimbursed expenses, net investment income (loss) per
share would have been $(0.48) for the period ended September 30, 1998.
(3) Total return represents total return for the period indicated. The total
return would have been lower if certain fees and expenses had not been
waived or reimbursed by the investment adviser.
(4) Annualized.
(5) Not annualized.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 22.08%
for the period ended September 30, 1998.
(7) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 22.93%
for the period ended September 30, 1998.
See Notes to Financial Statements 41
<PAGE>
PHOENIX-SENECA FUNDS
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
1. SIGNIFICANT ACCOUNTING POLICIES
The Phoenix-Seneca Funds (the "Trust") is organized as a Delaware business
trust and is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end management investment company. Shares of the Trust are
divided into four series, each a "Fund" and collectively the "Funds" as follows:
Phoenix-Seneca Growth Fund, Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund,
Phoenix-Seneca Bond Fund and Phoenix-Seneca Real Estate Securities Fund
(formerly Seneca Growth Fund, Seneca Mid-Cap "EDGE"-SM- Fund, Seneca Bond Fund
and Seneca Real Estate Securities Fund, respectively). Each Fund represents an
investment in a separate diversified fund with its own investment objectives.
Growth Fund seeks to achieve long-term capital appreciation. Mid-Cap "EDGE"-SM-
Fund seeks to achieve long-term capital appreciation by investing primarily in a
diversified portfolio of equity securities of companies with market
capitalizations between $500 million and $5 billion. Bond Fund seeks to generate
a high level of current income and capital appreciation. Real Estate Securities
Fund 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.
Each Fund offers Class X (formerly Seneca Institutional), Class A (formerly
Seneca Administrative), Class B and Class C shares. As of December 26, 1996, the
Bond Fund Administrative Shares merged with the Institutional Shares. Class X
shares are sold without a sales charge. Class A shares are sold with a front-end
sales charge of up to 4.75%. Class B shares are sold with a contingent deferred
sales charge which declines from 5% to zero depending on the period of time the
shares are held. Class C shares are sold with a 1% contingent deferred sales
charge if redeemed within one year of purchase. All classes of shares have
identical voting, dividend, liquidation and other rights and the same terms and
conditions, except that Class A, Class B and Class C shares bear distribution
expenses and have exclusive voting rights with respect to their distribution
plans. Investment income and realized and unrealized gains/losses are allocated
among the classes on the basis of net assets of each class. Expenses that relate
to the distribution of shares or services provided to a particular class are
allocated to that class.
The following is a summary of significant accounting policies consistently
followed by the Trust 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 mean between the most recent high bid and the most recent
low asked quotations. 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 Fund is notified. Interest income is recorded on the accrual
basis. The Trust amortizes premiums and discounts using the effective interest
method. Realized gains and losses are determined on the identified cost basis.
C. INCOME TAXES:
Each Fund is treated as a separate taxable entity. It is the policy of each
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 Fund 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.
42
<PAGE>
PHOENIX-SENECA FUNDS
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 (Continued)
D. DISTRIBUTIONS TO SHAREHOLDERS:
Distributions are recorded by each Fund 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, market
discount, organization costs, expiring capital loss carryforwards, foreign
currency gain/loss, partnerships, operating losses 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. ORGANIZATION EXPENSE:
In 1996, the Trust incurred organizational expenses which are amortized on a
straight line basis over a period of sixty months from the commencement of
operations. If any of the initial shares are redeemed before the end of the
amortization period, the proceeds of the redemption will be reduced by the pro
rata share of unamortized organization expenses.
F. REPURCHASE AGREEMENTS:
A repurchase agreement is a transaction where a Fund acquires a security for
cash and obtains a simultaneous commitment from the seller to repurchase the
security at an agreed upon price and date. Each Fund, through its custodian,
takes possession of securities collateralizing the repurchase agreement. The
collateral is marked-to-market daily to ensure that the market value of the
underlying assets remains sufficient to protect the Fund in the event of default
by the seller. If the seller defaults and the value of the collateral declines,
or if the seller enters insolvency proceedings, realization of collateral may be
delayed or limited.
G. EXPENSES:
Trust expenses not directly attributable to a specific Fund are allocated
evenly among all funds. Fund expenses that are not related to the distribution
of shares of a particular class or to services provided specifically to a
particular class are allocated among the classes on the basis of relative
average daily net assets of each class.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
Effective July 1, 1998, Phoenix Investment Counsel, Inc, ("PIC" or the
"Adviser") serves as investment adviser to the Phoenix-Seneca Funds and Seneca
Capital Management LLC ("Seneca" or the "Subadviser") serves as investment
subadviser. Prior to July 1, 1998, Seneca served as adviser. All of the
outstanding stock of PIC and a majority of the equity interests of Seneca are
owned by Phoenix Investment Partners Ltd. ("PXP"), an indirect, majority-owned
subsidiary of Phoenix Home Life Mutual Insurance Company ("PHL"). As
compensation for services to the Trust, the adviser receives a fee based upon
the following annual rates as a percentage of the average daily net assets of
each Fund:
<TABLE>
<CAPTION>
ADVISER FEE
-----------
<S> <C>
Growth Fund................................... 0.70%
Mid-Cap "EDGE"-SM- Fund....................... 0.80%
Bond Fund..................................... 0.50%
Real Estate Securities Fund................... 0.85%
</TABLE>
The Adviser pays the Subadviser a fee equal to one half of the Adviser fee.
Effective July 1, 1998, Phoenix Equity Planning Corporation ("PEPCO"), a
direct subsidiary of PXP, serves as Administrator of the Trust. PEPCO receives a
fee for administration services at an annual rate of 0.08% of average daily net
assets of each Fund up to $125 million, 0.06% of average daily net assets of
$125 million to $250 million and 0.04% of average daily net assets greater than
$250 million; a minimum fee may apply. Prior to July 1, 1998, Seneca served as
Administrator at the same contractual rates as PEPCO.
The Adviser and the Administrator voluntarily agreed to waive or reimburse
each Fund's operating expenses until
43
<PAGE>
PHOENIX-SENECA FUNDS
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 (Continued)
September 30, 1998, to the extent that such expenses exceeded the following
percentages of average annual net assets:
<TABLE>
<CAPTION>
CLASS X CLASS A CLASS B CLASS C
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Growth Fund....... 1.25% 1.85% 2.60% 2.60%
Mid-Cap "EDGE"-SM-
Fund.............. 2.10% 2.70% 3.45% 3.45%
Bond Fund......... 1.85% 2.45% 3.20% 3.20%
Real Estate
Securities Fund... 2.35% 3.05% 3.80% 3.80%
</TABLE>
Prior to July 1, 1998, the rates which were in effect were 2.55%, 1.95% and
2.35% for Growth Class A, Growth Class X and Real Estate Class X, respectively.
PEPCO serves as the national distributor of the Trust's shares and has advised
the Trust that it retained net selling commissions of $1,566 for Class A shares
for the year ended September 30, 1998. There were no deferred sales charges
retained by PEPCO for Class B and C shares for the year ended September 30,
1998. In addition, each Fund pays PEPCO a distribution fee at an annual rate of
0.25% for Class A shares and 1.00% for Class B and C shares applied to the
average daily net assets of each Fund. The distributor has advised the Trust
that of the total amount expensed for the year ended September 30, 1998, $22,816
was retained by the Distributor, $13,996 was paid out to unaffiliated
Participants and $80 was paid to W.S. Griffith, an indirect subsidiary of PHL.
PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the year ended September 30, 1998, transfer
agent fees were $149,731 of which PEPCO retained $306 which is net of fees paid
to State Street.
At September 30, 1998, PHL and affiliates held Phoenix-Seneca Fund shares
which aggregated the following:
<TABLE>
<CAPTION>
AGGREGATE
NET ASSET
SHARES VALUE
--------- ----------
<S> <C> <C>
Growth Fund--Class B............ 5,420 $ 87,750
Growth Fund--Class C............ 5,420 87,696
Mid-Cap "EDGE"-SM- Fund--Class
B............................... 5,865 80,527
Mid-Cap "EDGE"-SM- Fund--Class
C............................... 5,865 80,469
Bond Fund--Class X.............. 1,411,819 15,078,222
Bond Fund--Class A.............. 9,374 100,113
Bond Fund--Class B.............. 9,364 99,918
Bond Fund--Class C.............. 9,364 99,918
Real Estate Securities
Fund--Class B................... 7,911 87,104
Real Estate Securities
Fund--Class C................... 7,911 87,104
</TABLE>
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the year ended September 30, 1998
(excluding U.S. Government and agency securities and short-term securities)
aggregated the following:
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Growth Fund................... $73,681,537 $69,547,783
Mid-Cap "EDGE"-SM- Fund....... 24,754,164 23,861,861
Bond Fund..................... 23,502,001 6,699,019
Real Estate Securities Fund... 15,199,353 14,760,122
</TABLE>
Purchases and sales of long-term U.S. Government and agency securities during
the year ended September 30, 1998, aggregated $10,444,424 and $9,074,353,
respectively, for the Bond Fund.
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 prices of these
investments and the income they generate, as well as a fund's ability to
repatriate such amounts.
44
<PAGE>
PHOENIX-SENECA FUNDS
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 (Continued)
5. OTHER
As of September 30, 1998, the Funds had shareholders who each individually
owned more than 10% of total net assets, 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 Fund............. 1 10.3%
Real Estate Securities
Fund.................... 2 28.7%
</TABLE>
6. RECLASS OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Funds have recorded several
reclassifications in the capital accounts. These reclassifications have no
impact on the net asset value of the Funds and are designed generally to present
undistributed income and realized gains on a tax basis which is considered to be
more informative to the shareholder. As of September 30, 1998, the Funds
recorded the following reclassifications to increase (decrease) the accounts
listed below:
<TABLE>
<CAPTION>
CAPITAL PAID
UNDISTRIBUTED ACCUMULATED IN ON SHARES
NET INVESTMENT NET REALIZED OF BENEFICIAL
INCOME GAIN (LOSS) INTEREST
-------------- ------------ ---------------
<S> <C> <C> <C>
Growth Fund...... $ 23,589 $ (24,161) $ 572
Mid-Cap
"Edge"-SM-
Fund........... 201,569 (202,141) 572
Bond Fund........ (4,938) 4,366 572
Real Estate
Securities
Fund........... (571) -- 571
</TABLE>
TAX INFORMATION NOTICE (Unaudited)
For the fiscal year ended September 30, 1998, the Funds distributed long-term
capital gain dividends as follows:
<TABLE>
<S> <C>
Growth Fund................................. $ 426,348
Mid-Cap "Edge"-SM- Fund..................... 114,155
Bond Fund................................... 17,096
Real Estate Securities Fund................. 11,132
</TABLE>
This report is not authorized for distribution to prospective investors unless
preceded or accompanied by an effective Prospectus which includes information
concerning the sales charge, the Trust's record and other pertinent information.
45
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[LOGO]
To the Trustees and Shareholders of
Phoenix-Seneca Funds
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments (except for bond ratings), and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the Growth Fund, the Mid-Cap "EDGE"-SM- Fund, the Bond Fund and the Real Estate
Securities Fund (constituting the Phoenix-Seneca Funds, hereafter referred to as
the "Funds") at September 30, 1998, and the results of each of their operations,
the changes in each of their net assets and the financial highlights for the
year then ended, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 1998 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above. The financial statements of
the Funds, formerly the Seneca Funds, for the periods ended September 30, 1997
were audited by other independent accountants whose report dated November 5,
1997 expressed an unqualified opinion on those statements.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
November 17, 1998
46
<PAGE>
RESULTS OF SHAREHOLDER MEETING (UNAUDITED)
A special meeting of Shareholders of Seneca Funds (the "Trust") was held on
February 25, 1998, to approve the following matters:
1. Approval of a new investment advisory agreement with Phoenix Investment
Counsel, Inc. ("PIC") and a new subadvisory agreement with PIC and Seneca
Capital Management LLC.
2. Ratification of the selection of PricewaterhouseCoopers LLP as the
Trust's independent auditors for the fiscal year ending September 30,
1998.
On the record date for this meeting there were 92,709,688 eligible votes
outstanding and 61.01% of the eligible votes outstanding and entitled to vote
were present by proxy.
NUMBER OF VOTES:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
------------ --------- ----------
<S> <C> <C> <C>
1. Approval of investment advisory and subadvisory agreements 54,569,004 199,636 1,796,993
</TABLE>
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
------------ --------- ----------
<S> <C> <C> <C>
2. PricewaterhouseCoopers LLP 54,597,292 241,243 1,727,145
</TABLE>
47
<PAGE>
PHOENIX-SENECA FUNDS
909 Montgomery Street
San Francisco, California 94133
TRUSTEES AND OFFICERS
Mary Ann Cusenza, Trustee
Paul E. Erdman, Trustee
Melinda Ellis Evers, Trustee
Gail P. Seneca, President and Trustee
Thomas N. Steenburg, Secretary
Sandra J. Westhoff, Treasurer
INVESTMENT ADVISER
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
State Street Bank and Trust Company
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, Massachusetts 02110
HOW TO CONTACT US
Toll-Free Numbers
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
Internet access:
www.phoenixinvestments.com
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION Bulk Rate Mail
PO Box 2200 U.S. Postage
Enfield CT 06083-2200 PAID
Springfield, MA
Permit NO. 444
[LOGO] PHOENIX
INVESTMENT PARTNERS
A Money Management Group of Phoenix Investment Partners.
Investment Subadviser: Seneca Capital Management, LLC PXP 1140 (11/98)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 011
<NAME> PHOENIX-SENECA GROWTH FUND - CLASS A
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 46,385
<INVESTMENTS-AT-VALUE> 48,294
<RECEIVABLES> 1,354
<ASSETS-OTHER> 33
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 49,681
<PAYABLE-FOR-SECURITIES> 841
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 119
<TOTAL-LIABILITIES> 960
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 41,788
<SHARES-COMMON-STOCK> 1,070
<SHARES-COMMON-PRIOR> 370
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 5,024
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,909
<NET-ASSETS> 48,721
<DIVIDEND-INCOME> 429
<INTEREST-INCOME> 84
<OTHER-INCOME> 0
<EXPENSES-NET> (537)
<NET-INVESTMENT-INCOME> (24)
<REALIZED-GAINS-CURRENT> 5,787
<APPREC-INCREASE-CURRENT> (3,716)
<NET-CHANGE-FROM-OPS> 2,047
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (457)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 903
<NUMBER-OF-SHARES-REDEEMED> (233)
<SHARES-REINVESTED> 30
<NET-CHANGE-IN-ASSETS> 11,350
<ACCUMULATED-NII-PRIOR> 28
<ACCUMULATED-GAINS-PRIOR> 2,357
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 307
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 545
<AVERAGE-NET-ASSETS> 43,891
<PER-SHARE-NAV-BEGIN> 16.28
<PER-SHARE-NII> (.06)
<PER-SHARE-GAIN-APPREC> 1.24
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (1.23)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.23
<EXPENSE-RATIO> 1.55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 012
<NAME> PHOENIX-SENECA GROWTH FUND - CLASS B
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 46,385
<INVESTMENTS-AT-VALUE> 48,294
<RECEIVABLES> 1,354
<ASSETS-OTHER> 33
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 49,681
<PAYABLE-FOR-SECURITIES> 841
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 119
<TOTAL-LIABILITIES> 960
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 41,788
<SHARES-COMMON-STOCK> 32
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 5,024
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,909
<NET-ASSETS> 48,721
<DIVIDEND-INCOME> 429
<INTEREST-INCOME> 84
<OTHER-INCOME> 0
<EXPENSES-NET> (537)
<NET-INVESTMENT-INCOME> (24)
<REALIZED-GAINS-CURRENT> 5,787
<APPREC-INCREASE-CURRENT> (3,716)
<NET-CHANGE-FROM-OPS> 2,047
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 32
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 519
<ACCUMULATED-NII-PRIOR> 28
<ACCUMULATED-GAINS-PRIOR> 2,357
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 307
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 545
<AVERAGE-NET-ASSETS> 43,891
<PER-SHARE-NAV-BEGIN> 18.71
<PER-SHARE-NII> (.04)
<PER-SHARE-GAIN-APPREC> (2.48)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.19
<EXPENSE-RATIO> 2.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 013
<NAME> PHOENIX-SENECA GROWTH FUND - CLASS C
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 46,385
<INVESTMENTS-AT-VALUE> 48,294
<RECEIVABLES> 1,354
<ASSETS-OTHER> 33
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 49,681
<PAYABLE-FOR-SECURITIES> 841
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 119
<TOTAL-LIABILITIES> 960
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 41,788
<SHARES-COMMON-STOCK> 8
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 5,024
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,909
<NET-ASSETS> 48,721
<DIVIDEND-INCOME> 429
<INTEREST-INCOME> 84
<OTHER-INCOME> 0
<EXPENSES-NET> (537)
<NET-INVESTMENT-INCOME> (24)
<REALIZED-GAINS-CURRENT> 5,787
<APPREC-INCREASE-CURRENT> (3,716)
<NET-CHANGE-FROM-OPS> 2,047
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 126
<ACCUMULATED-NII-PRIOR> 28
<ACCUMULATED-GAINS-PRIOR> 2357
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 307
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 545
<AVERAGE-NET-ASSETS> 43,891
<PER-SHARE-NAV-BEGIN> 18.71
<PER-SHARE-NII> (.06)
<PER-SHARE-GAIN-APPREC> (2.47)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.18
<EXPENSE-RATIO> 2.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 017
<NAME> PHOENIX-SENECA GROWTH FUND - CLASS X
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 46,385
<INVESTMENTS-AT-VALUE> 48,294
<RECEIVABLES> 1,354
<ASSETS-OTHER> 33
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 49,681
<PAYABLE-FOR-SECURITIES> 841
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 119
<TOTAL-LIABILITIES> 960
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 41,788
<SHARES-COMMON-STOCK> 1,866
<SHARES-COMMON-PRIOR> 2,075
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 5,024
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,909
<NET-ASSETS> 48,721
<DIVIDEND-INCOME> 429
<INTEREST-INCOME> 84
<OTHER-INCOME> 0
<EXPENSES-NET> (537)
<NET-INVESTMENT-INCOME> (24)
<REALIZED-GAINS-CURRENT> 5,787
<APPREC-INCREASE-CURRENT> (3,716)
<NET-CHANGE-FROM-OPS> 2,047
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (28)
<DISTRIBUTIONS-OF-GAINS> (2,638)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 285
<NUMBER-OF-SHARES-REDEEMED> (670)
<SHARES-REINVESTED> 176
<NET-CHANGE-IN-ASSETS> (3,380)
<ACCUMULATED-NII-PRIOR> 28
<ACCUMULATED-GAINS-PRIOR> 2,357
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 307
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 545
<AVERAGE-NET-ASSETS> 43,891
<PER-SHARE-NAV-BEGIN> 16.43
<PER-SHARE-NII> .00
<PER-SHARE-GAIN-APPREC> 1.28
<PER-SHARE-DIVIDEND> (.02)
<PER-SHARE-DISTRIBUTIONS> (1.23)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.46
<EXPENSE-RATIO> 1.14
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 021
<NAME> PHOENIX-SENECA MID CAP EDGE FUND - CLASS A
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 13,259
<INVESTMENTS-AT-VALUE> 13,034
<RECEIVABLES> 129
<ASSETS-OTHER> 26
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 13,189
<PAYABLE-FOR-SECURITIES> 276
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 58
<TOTAL-LIABILITIES> 334
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 12,540
<SHARES-COMMON-STOCK> 266
<SHARES-COMMON-PRIOR> 147
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 540
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (225)
<NET-ASSETS> 12,855
<DIVIDEND-INCOME> 39
<INTEREST-INCOME> 41
<OTHER-INCOME> 0
<EXPENSES-NET> (282)
<NET-INVESTMENT-INCOME> (202)
<REALIZED-GAINS-CURRENT> 896
<APPREC-INCREASE-CURRENT> (1,613)
<NET-CHANGE-FROM-OPS> (919)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (289)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 160
<NUMBER-OF-SHARES-REDEEMED> (62)
<SHARES-REINVESTED> 22
<NET-CHANGE-IN-ASSETS> 1,247
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,228
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 100
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 319
<AVERAGE-NET-ASSETS> 12,548
<PER-SHARE-NAV-BEGIN> 16.49
<PER-SHARE-NII> (.30)
<PER-SHARE-GAIN-APPREC> (.59)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (1.85)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.75
<EXPENSE-RATIO> 2.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 022
<NAME> PHOENIX-SENECA MID CAP EDGE FUND - CLASS B
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 13,259
<INVESTMENTS-AT-VALUE> 13,034
<RECEIVABLES> 129
<ASSETS-OTHER> 26
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 13,189
<PAYABLE-FOR-SECURITIES> 276
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 58
<TOTAL-LIABILITIES> 334
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 12,540
<SHARES-COMMON-STOCK> 11
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 540
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (225)
<NET-ASSETS> 12,855
<DIVIDEND-INCOME> 39
<INTEREST-INCOME> 41
<OTHER-INCOME> 0
<EXPENSES-NET> (282)
<NET-INVESTMENT-INCOME> (202)
<REALIZED-GAINS-CURRENT> 896
<APPREC-INCREASE-CURRENT> (1,613)
<NET-CHANGE-FROM-OPS> (919)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 145
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,228
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 100
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 319
<AVERAGE-NET-ASSETS> 12548
<PER-SHARE-NAV-BEGIN> 17.15
<PER-SHARE-NII> (.09)
<PER-SHARE-GAIN-APPREC> (3.33)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.73
<EXPENSE-RATIO> 3.45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 023
<NAME> PHOENIX-SENECA MID CAP EDGE FUND - CLASS C
<MULTIPLIER> 1,000
<S> <C>
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<AVERAGE-NET-ASSETS> 12,548
<PER-SHARE-NAV-BEGIN> 17.15
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 027
<NAME> PHOENIX-SENECA MID CAP EDGE FUND - CLASS X
<MULTIPLIER> 1,000
<S> <C>
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<PERIOD-END> SEP-30-1998
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<PAID-IN-CAPITAL-COMMON> 12,540
<SHARES-COMMON-STOCK> 647
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<ACCUMULATED-NII-CURRENT> 0
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<ACCUMULATED-NET-GAINS> 540
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<ACCUM-APPREC-OR-DEPREC> (225)
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<NET-INVESTMENT-INCOME> (202)
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<NUMBER-OF-SHARES-SOLD> 135
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<NET-CHANGE-IN-ASSETS> (450)
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<GROSS-EXPENSE> 319
<AVERAGE-NET-ASSETS> 12,548
<PER-SHARE-NAV-BEGIN> 16.47
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 031
<NAME> PHOENIX-SENECA BOND FUND - CLASS A
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 26,791
<INVESTMENTS-AT-VALUE> 26,977
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<PAID-IN-CAPITAL-COMMON> 27,072
<SHARES-COMMON-STOCK> 33
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<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (12)
<ACCUMULATED-NET-GAINS> 229
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<ACCUM-APPREC-OR-DEPREC> 186
<NET-ASSETS> 27,476
<DIVIDEND-INCOME> 18
<INTEREST-INCOME> 1,029
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<EXPENSES-NET> (231)
<NET-INVESTMENT-INCOME> 816
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<APPREC-INCREASE-CURRENT> (53)
<NET-CHANGE-FROM-OPS> 1,036
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<DISTRIBUTIONS-OF-INCOME> (5)
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<NUMBER-OF-SHARES-SOLD> 48
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<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 348
<ACCUMULATED-NII-PRIOR> 4
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<GROSS-EXPENSE> 243
<AVERAGE-NET-ASSETS> 13,949
<PER-SHARE-NAV-BEGIN> 10.79
<PER-SHARE-NII> .13
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 032
<NAME> PHOENIX-SENECA BOND FUND - CLASS B
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 26,791
<INVESTMENTS-AT-VALUE> 26,977
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<PAID-IN-CAPITAL-COMMON> 27,072
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<ACCUMULATED-NET-GAINS> 229
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<NET-ASSETS> 27,476
<DIVIDEND-INCOME> 18
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<NET-INVESTMENT-INCOME> 816
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<AVERAGE-NET-ASSETS> 13,949
<PER-SHARE-NAV-BEGIN> 10.79
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 033
<NAME> PHOENIX-SENECA BOND FUND - CLASS C
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 26,791
<INVESTMENTS-AT-VALUE> 26,977
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<PAID-IN-CAPITAL-COMMON> 27,072
<SHARES-COMMON-STOCK> 41
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<OVERDISTRIBUTION-NII> (12)
<ACCUMULATED-NET-GAINS> 229
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<ACCUM-APPREC-OR-DEPREC> 186
<NET-ASSETS> 27,476
<DIVIDEND-INCOME> 18
<INTEREST-INCOME> 1,029
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<NET-INVESTMENT-INCOME> 816
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<APPREC-INCREASE-CURRENT> (53)
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<PER-SHARE-NAV-BEGIN> 10.79
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 037
<NAME> PHOENIX-SENECA BOND FUND - CLASS X
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
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<NET-ASSETS> 27,476
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<AVERAGE-NET-ASSETS> 13,949
<PER-SHARE-NAV-BEGIN> 10.47
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 041
<NAME> PHOENIX-SENECA REAL ESTATE SECURITIES FUND - CLASS A
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 26,583
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<PAID-IN-CAPITAL-COMMON> 26,009
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (3,376)
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<AVERAGE-NET-ASSETS> 28,493
<PER-SHARE-NAV-BEGIN> 14.68
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<PER-SHARE-GAIN-APPREC> (3.08)
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 042
<NAME> PHOENIX-SENECA REAL ESTATE SECURITIES FUND - CLASS B
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 26,583
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<PAID-IN-CAPITAL-COMMON> 26,009
<SHARES-COMMON-STOCK> 8
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<ACCUMULATED-NII-CURRENT> 170
<OVERDISTRIBUTION-NII> 0
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<ACCUM-APPREC-OR-DEPREC> (3,376)
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<NET-INVESTMENT-INCOME> 1,139
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<GROSS-EXPENSE> 461
<AVERAGE-NET-ASSETS> 28,493
<PER-SHARE-NAV-BEGIN> 12.58
<PER-SHARE-NII> .07
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 043
<NAME> PHOENIX-SENECA REAL ESTATE SECURITIES FUND - CLASS C
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 26,583
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<PAID-IN-CAPITAL-COMMON> 26,009
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<ACCUM-APPREC-OR-DEPREC> (3,376)
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<PER-SHARE-NII> .07
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 047
<NAME> PHOENIX-SENECA REAL ESTATE SECURITIES FUND - CLASS X
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
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<NUMBER-OF-SHARES-REDEEMED> (298)
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<NET-CHANGE-IN-ASSETS> (6,398)
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</TABLE>
