<PAGE>
Phoenix Investment Partners
Seneca
SEMIANNUAL REPORT
MARCH 31, 1999
Phoenix-Seneca
Bond Fund
Phoenix-Seneca
Growth Fund
Phoenix-Seneca
Mid-Cap "EDGE"-SM- Fund
Phoenix-Seneca
Real Estate Securities
Fund
[LOGO] PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
[PHOTO]
PHILIP MCLOUGHLIN
We are pleased to provide this financial summary for the Phoenix-Seneca Funds
for the six months ended March 31, 1999.
The last six months marked another period of wide disparity in performance of
large-capitalization stocks versus small-capitalization stocks and
growth-oriented investment styles versus value investing. For example, the
Russell 1000 Growth Index(1) was up 34.8%, while the Russell 1000 Value Index(2)
gained 18.3% for the period. The Russell 2000 Growth Index(3) rose 21.6%, but
the Russell 2000 Value Index(4) declined (1.5)%.
During such market extremes, it is important to keep a long-term perspective.
We believe that by remaining true to our investment discipline, we will continue
to add value for our shareholders over the long term. Of course, past
performance is not a guarantee of future results.
If you have any questions, please contact your financial advisor or call us at
1-800-243-1574 between 8:00 a.m. and 6:00 p.m. Eastern Time, Monday through
Friday.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
APRIL 6, 1999
(1) THE RUSSELL 1000 GROWTH INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF
LARGE-CAPITALIZATION, GROWTH-ORIENTED STOCK TOTAL RETURN PERFORMANCE. THE
INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
(2) THE RUSSELL 1000 VALUE INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF
LARGE-CAPITALIZATION, VALUE-ORIENTED STOCK TOTAL RETURN PERFORMANCE. THE
INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
(3) THE RUSSELL 2000 GROWTH INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF
SMALL-CAPITALIZATION, GROWTH-ORIENTED STOCK TOTAL RETURN PERFORMANCE. THE
INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
(4) THE RUSSELL 2000 VALUE INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF
SMALL-CAPITALIZATION, VALUE-ORIENTED STOCK TOTAL RETURN PERFORMANCE. THE
INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
Mutual Funds are not insured by the FDIC; are not deposits or
other obligations of a bank and are not guaranteed by a bank;
and are subject to investment risks, including possible loss of
the principal invested.
1
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Phoenix-Seneca Bond Fund.................................................. 3
Phoenix-Seneca Growth Fund................................................ 11
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund.................................... 18
Phoenix-Seneca Real Estate Securities Fund................................ 25
Notes to Financial Statements............................................. 32
</TABLE>
2
<PAGE>
Phoenix-Seneca Bond Fund
INVESTMENTS AT MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- ------------
<S> <C> <C> <C>
AGENCY MORTGAGE-BACKED SECURITIES--7.6%
Fannie Mae 8.75%, 5/25/17..... Aaa $ 25 $ 25,655
Fannie Mae 9%, 9/25/18........ Aaa 11 11,517
Fannie Mae 6.50%, 4/15/29..... Aaa 1,150 1,143,891
Fannie Mae Strip I.O. 3.5625%,
10/25/23(c)................... Aaa 319 9,387
Fannie Mae TBA 6.50%,
12/1/28(f).................... Aaa 398 396,904
Freddie Mac 7.95%, 12/15/20... Aaa 93 93,856
Freddie Mac 8.75%, 12/15/20... Aaa 12 11,986
Freddie Mac 7%, 7/15/23....... Aaa 743 725,443
GNSF 7%, 2/15/26.............. Aaa 18 17,827
- -----------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $2,480,476) 2,436,466
- -----------------------------------------------------------------
ASSET-BACKED SECURITIES--3.8%
Lehman ABS Corp. 94-C2, A 144A
8.145%, 11/2/07(b)............ BBB+(d) 73 73,714
Olympic Automobile Receivables
Trust 96-B, CTFS 6.90%,
2/15/04....................... Aaa 104 105,028
Olympic Automobile Receivables
Trust 96-D, A5 6.25%,
11/15/04...................... Aaa 1,000 1,014,355
Standard Credit Card Master
Trust 1 93-2, A 5.95%,
10/7/04....................... Aaa 40 40,305
- -----------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $1,219,159) 1,233,402
- -----------------------------------------------------------------
CORPORATE BONDS--74.4%
AIR FREIGHT--1.6%
Federal Express Corp. Series
98-1A 6.72%, 1/15/22.......... Aa 500 501,102
AIRLINES--3.2%
Alaska Airlines, Inc. Series A
9.50%, 4/12/10................ Baa 114 127,523
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- ------------
<S> <C> <C> <C>
AIRLINES--CONTINUED
Alaska Airlines, Inc. Series D
9.50%, 4/12/12................ Baa $ 452 $ 511,220
Delta Air Lines, Inc. Series
B2 10.06%, 1/2/16............. Baa 65 79,504
United Airlines, Inc. Series
91-B 10.11%, 2/19/06.......... Baa 18 19,934
United Airlines, Inc. Series
91-E 9.76%, 5/27/06........... Baa 86 94,856
United Airlines, Inc. Series
95-A1 9.02%, 4/19/12.......... Baa 181 203,508
------------
1,036,545
------------
BANKS (MAJOR REGIONAL)--2.3%
Wells Fargo Capital I 7.96%,
12/15/26...................... Aa 700 738,665
BANKS (REGIONAL)--1.3%
BankAmerica Corp.
Institutional Series A 144A
8.07%, 12/31/26(b)............ Aa 400 418,530
BROADCASTING (TELEVISION, RADIO & CABLE)--4.8%
Capstar Broadcasting Corp.
9.25%, 7/1/07................. B 600 639,000
Chancellor Media Corp. 9.375%,
10/1/04....................... B 75 78,562
Jacor Communications, Inc.
10.125%, 6/15/06.............. B 100 108,500
Jones Intercable, Inc. 9.625%,
3/15/02....................... Ba 300 322,500
SFX Broadcasting Corp. Series
B 10.75%, 5/15/06............. B 56 61,880
TKR Cable, Inc. 10.50%,
10/30/07...................... Baa 100 107,755
Turner Broadcasting System,
Inc. 8.40%, 2/1/24............ Baa 200 213,012
------------
1,531,209
------------
</TABLE>
See Notes to Financial Statements 3
<PAGE>
Phoenix-Seneca Bond Fund
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- ------------
<S> <C> <C> <C>
CHEMICALS--1.6%
Equistar Chemicals L.P. 144A
8.5%, 2/15/04(b).............. Baa $ 500 $ 507,311
CONSUMER (JEWELRY, NOVELTIES & GIFTS)--0.1%
Finlay Fine Jewelry Corp.
8.375%, 5/1/08................ Ba 40 39,400
ENTERTAINMENT--3.4%
AMC Entertainment, Inc. 9.50%,
3/15/09....................... B 100 96,500
Royal Caribbean Cruises Ltd.
7.50%, 10/15/27............... Baa 100 101,262
Time Warner, Inc. 9.125%,
1/15/13....................... Baa 65 79,690
Time Warner, Inc. 6.85%,
1/15/26....................... Baa 500 513,139
United Artists Theatre
Circuit, Inc. Series 95-A
9.30%, 7/1/15................. B 331 287,594
------------
1,078,185
------------
FINANCIAL (DIVERSIFIED)--4.5%
Countrywide Capital I 8%,
12/15/26...................... A 200 203,492
Countrywide Funding Corp.
Series C 4.56%, 4/22/99(c).... A 30 29,998
Market Hub Partners Finance,
Inc. 8.25%, 3/1/08............ Ba 250 253,750
Pemex Finance Ltd. 144A 6.30%,
5/15/10(b).................... Aaa 500 497,500
Pemex Finance Ltd. 144A 9.15%,
11/15/18(b)................... Aaa 500 472,795
------------
1,457,535
------------
HEALTH CARE (HOSPITAL MANAGEMENT)--1.3%
Universal Health Services,
Inc. 8.75%, 8/15/05........... Ba 400 416,000
HEALTH CARE (SPECIALIZED SERVICES)--1.6%
HEALTHSOUTH Corp. 9.50%,
4/1/01(e)..................... Ba 500 512,500
HOMEBUILDING--3.1%
Lennar Corp. 7.625%, 3/1/09... Ba 500 492,500
Webb (Del E.) Corp. 10.25%,
2/15/10....................... B 500 506,250
------------
998,750
------------
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- ------------
<S> <C> <C> <C>
INVESTMENT BANKING/BROKERAGE--5.3%
Dollar Financial Group, Inc.
Series A 10.875%, 11/15/06.... B $ 75 $ 76,969
Donaldson, Lufkin, & Jenrette,
Inc. 5.875%, Senior Note
4/1/02........................ A 350 349,946
Donaldson, Lufkin & Jenrette,
Inc. 6.875%, 11/1/05.......... A 50 50,804
Donaldson, Lufkin & Jenrette,
Inc. 6.50%, 6/1/08............ A 200 198,979
First Republic Bancorp 7.75%,
9/15/12....................... BB+(d) 300 297,219
Lehman Brothers Holdings, Inc.
8.80%, 3/1/15................. Baa 80 87,648
Socgen Real Estate LLC Series
A 144A 7.64%,
12/29/49(b)(c)................ A 650 627,539
------------
1,689,104
------------
LODGING-HOTELS--2.7%
Caesars World, Inc. 8.875%,
8/15/02....................... Ba 285 285,712
Hammons (John Q.) Hotels, Inc.
8.875%, 2/15/04............... B 530 495,550
Hammons (John Q.) Hotels, Inc.
9.75%, 10/1/05................ B 100 96,000
------------
877,262
------------
MANUFACTURING (DIVERSIFIED)--0.8%
United Industries Corp, 144A
9.875%, 4/1/09(b)............. B 250 256,875
MANUFACTURING (SPECIALIZED)--2.9%
Advanced Glassfiber Yarns LLC
144A 9.875%, 1/15/09(b)....... B 300 306,750
BGF Industries, Inc. 144A
10.25%, 1/15/09(b)............ B 300 307,500
Simmons Co.144A 10.25%,
3/15/09(b).................... B 300 310,500
------------
924,750
------------
METAL FABRICATORS--0.0%
Hawk Corp. 10.25%, 12/1/03.... Ba 10 10,450
</TABLE>
4 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Bond Fund
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- ------------
<S> <C> <C> <C>
OFFICE EQUIPMENT & SUPPLIES--2.0%
CEX Holdings, Inc. Series B
9.625%, 6/1/08................ B $ 700 $ 652,750
OIL & GAS (DRILLING & EQUIPMENT)--1.2%
R&B Falcon Corp. 144A 9.125%,
12/15/03(b)................... Ba 400 370,000
OIL & GAS (REFINING & MARKETING)--1.0%
El Paso Tenneco RACERS
97-C-1-2 144A 9.14%,
12/31/01(b)................... NR 300 315,000
OIL (DOMESTIC INTEGRATED)--1.6%
Marlin Water Trust 144A 7.09%,
12/15/01(b)................... Baa 500 506,891
PAPER & FOREST PRODUCTS--0.1%
Container Corporation of
America Series A 11.25%,
5/1/04........................ B 40 42,400
PHOTOGRAPHY/IMAGING--0.9%
Imax Corp. 7.875%, 12/1/05.... Ba 300 295,125
PUBLISHING (NEWSPAPERS)--1.0%
Garden State Newspapers, Inc.
Series B 8.75%, 10/1/09....... B 325 328,250
REITS--4.2%
ERP Operating L.P. 7.57%,
8/15/26....................... A 170 177,340
Evans Withycombe Residential,
Inc. 7.50%, 4/15/04........... A 100 104,033
First Industrial L.P. 7.15%,
5/15/27....................... Baa 500 499,015
Property Trust of America
6.875%, 2/15/08............... Baa 5 4,876
Security Capital Pacific Trust
7.375%, 10/15/06.............. Baa 100 97,645
Security Capital Pacific Trust
7.90%, 2/15/16................ Baa 200 201,720
Washington Real Estate
Investment Trust 7.125%,
8/13/03....................... Baa 110 111,365
Weingarten Realty Investors
Series A 6.88%, 6/25/27....... A 150 152,274
------------
1,348,268
------------
RESTAURANTS--0.8%
Foodmaker, Inc. Series B
9.75%, 11/1/03(e)............. BB-(d) 250 258,750
RETAIL (FOOD CHAINS)--2.7%
Kroger Co. 6%, 7/1/00(c)(e)... Baa 500 502,098
Meyer (Fred), Inc. Series
94-A2 8.64%, 7/2/12........... BB+(d) 100 107,500
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- ------------
<S> <C> <C> <C>
RETAIL (FOOD CHAINS)--CONTINUED
Stater Brothers Holdings, Inc.
11%, 3/1/01................... B $ 240 $ 250,800
------------
860,398
------------
RETAIL (GENERAL MERCHANDISE)--4.4%
K Mart Funding Corp. Series F
8.80%, 7/1/10................. Ba 500 518,498
Wal-Mart Stores, Inc. Series
A-2 8.85%, 1/2/15............. Aa 750 907,500
------------
1,425,998
------------
SERVICES (COMMERCIAL & CONSUMER)--9.2%
Coinmach Laundry Corp. Series
D 11.75%, 11/15/05............ B 255 282,094
Group Maintenance America
Corp. 144A 9.75%,
1/15/09(b).................... B 300 309,000
Loomis Fargo & Co. 10%,
1/15/04....................... B 300 298,500
Protection One Alarm
Monitoring, Inc. 7.375%,
8/15/05....................... Ba 500 497,500
Rental Service Corp. 9%,
5/15/08....................... B 750 751,875
United Rentals, Inc. 144A
8.80%, 8/15/08(b)............. B 500 501,250
United Rentals, Inc. Series B
9.50%, 6/1/08................. B 250 261,875
Williams Scotsman, Inc.
9.875%, 6/1/07................ B 50 51,625
------------
2,953,719
------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--1.6%
Orion Network Systems 0%,
1/15/07(c).................... B 90 50,400
Sprint Spectrum L.P. 0%,
8/15/06(c).................... Baa 500 457,500
------------
507,900
------------
TRUCKERS--0.8%
Trico Marine Services, Inc.
Series G 8.50%, 8/1/05........ Ba 300 247,500
WASTE MANAGEMENT--2.4%
Waste Management, Inc. 6.125%,
7/15/01(c).................... Baa 750 754,079
- -----------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $23,821,098) 23,861,201
- -----------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Seneca Bond Fund
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- -------- ------------
<S> <C> <C> <C>
NON-AGENCY MORTGAGE-BACKED SECURITIES--3.1%
DLJ Commercial Mortgage Corp.
98-CG1, A1A 6.11%, 12/10/07... AAA(d) $ 954 $ 958,299
GE Capital Mortgage Services,
Inc. 94-21, B1 6.50%
8/25/09....................... A 31 30,693
- -----------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $981,317) 988,992
- -----------------------------------------------------------------
FOREIGN CORPORATE BONDS--4.4%
JAPAN--0.6%
SB Treasury Co. LLC Series A
144A 9.40%, 12/29/49(b)(c).... Baa 200 196,356
POLAND--1.6%
TPSA Finance 144A 7.75%,
12/10/08(b)................... Baa 500 495,313
UNITED KINGDOM--2.2%
Abbey National PLC 7.35%,
10/29/49(c)................... Aa 100 102,239
Credit Suisse Group 144A
7.90%, 5/29/49(b)(c).......... A 350 355,968
Terra Nova (U.K.) Holdings
7.20%, 8/15/07................ Baa 250 252,087
------------
710,294
------------
- -----------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $1,421,755) 1,401,963
- -----------------------------------------------------------------
<CAPTION>
SHARES
--------
<S> <C> <C> <C>
CONVERTIBLE PREFERRED STOCKS--3.4%
COMPUTERS (SOFTWARE & SERVICES)--2.8%
Microsoft Corp. Series A Cv.
Pfd. $2.196................... 9,250 911,125
REITS--0.3%
Equity Office Properties Trust
Series B Cv. Pfd. 144A
5.25%(b)...................... 2,000 83,000
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
SERVICES (COMMERCIAL & CONSUMER)--0.3%
United Rentals, Inc. Cv. Pfd.
144A 6.50%(b)................. 2,000 $ 89,000
- -----------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $1,030,000) 1,083,125
- -----------------------------------------------------------------
COMMON STOCKS--0.6%
OIL & GAS (DRILLING & EQUIPMENT)--0.6%
Kinder Morgan Energy Partners,
L.P........................... 5,300 183,512
- -----------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $195,106) 183,512
- -----------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--97.3%
(IDENTIFIED COST $31,148,911) 31,188,661
- -----------------------------------------------------------------
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000)
-------- --------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--4.4%
COMMERCIAL PAPER--4.0%
American Stores 5.121%,
4/1/99........................ A-2 $ 800 800,000
Texas Utilities 5.152%,
4/1/99........................ A-2 500 500,000
------------
1,300,000
------------
REPURCHASE AGREEMENT--0.4%
State Street Bank & Trust Co.
repurchase agreement, 4.25%,
dated 3/31/99 due 4/1/99,
repurchase price $126,015
collateralized by U.S.
Treasury Bond 5.25%, 1/31/01,
market value $131,701......... 126 126,000
- -----------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $1,426,000) 1,426,000
- -----------------------------------------------------------------
TOTAL INVESTMENTS--101.7%
(IDENTIFIED COST $32,574,911) 32,614,661(a)
Cash and receivables, less liabilities--(1.7%) (535,735)
------------
NET ASSETS--100.0% $ 32,078,926
------------
------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $463,007 and gross
depreciation of $423,257 for federal income tax purposes. At March 31,
1999, the aggregate cost of securities for federal income tax purposes was
$32,574,911.
(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 March 31,
1999, these securities amounted to a value of $7,000,792 or 21.8% 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.
(e) All or a portion segregated as collateral.
(f) When issued.
6 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Bond Fund
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $32,574,911) $ 32,614,661
Cash 1,084
Receivables
Interest 498,977
Fund shares sold 147,716
Deferred organization expenses 18,871
Prepaid expenses 1,962
--------------
Total assets 33,283,271
--------------
LIABILITIES
Payables
Investment securities purchased 1,144,070
Fund shares repurchased 1,200
Transfer agent fee 30,545
Investment advisory fee 12,802
Financial agent fee 5,944
Distribution fee 2,818
Trustees' fee 1,740
Accrued expenses 5,226
--------------
Total liabilities 1,204,345
--------------
NET ASSETS 32,078,926
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 31,804,109
Undistributed net investment income 46,009
Accumulated net realized gain 189,058
Net unrealized appreciation 39,750
--------------
NET ASSETS $ 32,078,926
--------------
--------------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $30,043,621) 2,826,311
Net asset value and offering price per share $10.63
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $890,416) 84,061
Net asset value per share $10.59
Offering price per share $10.59/(1-4.75%) $11.12
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $785,847) 74,247
Net asset value and offering price per share $10.58
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $359,042) 33,922
Net asset value and offering price per share $10.58
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $1,093,007
Dividends 22,743
----------
Total investment income 1,115,750
----------
EXPENSES
Investment advisory fee 74,332
Distribution fee, Class A 989
Distribution fee, Class B 2,076
Distribution fee, Class C 2,269
Financial agent fee 34,904
Transfer agent 35,221
Trustees 11,740
Registration 7,003
Professional 5,825
Amortization of deferred organization expenses 5,314
Custodian 5,243
Printing 3,520
Miscellaneous 2,326
----------
Total expenses 190,762
Less expenses borne by investment adviser (15,808)
Custodian fees paid indirectly (1,226)
----------
Net expenses 173,728
----------
NET INVESTMENT INCOME 942,022
----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain on securities 211,810
Net change in unrealized appreciation (depreciation) on
investments (146,338)
----------
NET GAIN ON INVESTMENTS 65,472
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,007,494
----------
----------
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Seneca Bond Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
3/31/99 Year Ended
(Unaudited) 9/30/98
--------------- ---------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 942,022 $ 815,720
Net realized gain (loss) 211,810 272,954
Net change in unrealized appreciation
(depreciation) (146,338) (52,850)
--------------- ---------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 1,007,494 1,035,824
--------------- ---------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class X (841,595) (816,277)
Net investment income, Class A (21,948) (4,720)
Net investment income, Class B (9,907) (2,101)
Net investment income, Class C (10,774) (3,926)
Net realized gains, Class X (237,256) (157,929)
Net realized gains, Class A (6,691) --
Net realized gains, Class B (3,366) --
Net realized gains, Class C (4,337) --
--------------- ---------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (1,135,874) (984,953)
--------------- ---------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (324,964
and 1,869,631 shares, respectively) 3,448,649 20,104,967
Net asset value of shares issued from
reinvestment of distributions
(100,008 and 89,132 shares,
respectively) 1,063,139 952,261
Cost of shares repurchased (75,478 and
334,511 shares, respectively) (803,033) (3,582,416)
--------------- ---------------
Total 3,708,755 17,474,812
--------------- ---------------
CLASS A
Proceeds from sales of shares (93,001
and 48,090 shares, respectively) 986,257 515,460
Net asset value of shares issued from
reinvestment of distributions
(2,126 and 388 shares, respectively) 22,572 4,147
Cost of shares repurchased (43,683 and
15,861 shares, respectively) (461,933) (168,344)
--------------- ---------------
Total 546,896 351,263
--------------- ---------------
CLASS B
Proceeds from sales of shares (67,853
and 23,658 shares, respectively) 717,245 253,821
Net asset value of shares issued from
reinvestment of distributions
(631 and 135 shares, respectively) 6,693 1,443
Cost of shares repurchased (16,117 and
1,913 shares, respectively) (170,819) (20,509)
--------------- ---------------
Total 553,119 234,755
--------------- ---------------
CLASS C
Proceeds from sales of shares (29,462
and 40,951 shares, respectively) 312,680 439,691
Net asset value of shares issued from
reinvestment of distributions
(517 and 183 shares, respectively) 5,490 1,951
Cost of shares repurchased (37,191 and
0 shares, respectively) (395,138) --
--------------- ---------------
Total (76,968) 441,642
--------------- ---------------
INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 4,731,802 18,502,472
--------------- ---------------
NET INCREASE IN NET ASSETS 4,603,422 18,553,343
NET ASSETS
Beginning of period 27,475,504 8,922,161
--------------- ---------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$46,009 AND $(11,789), RESPECTIVELY] $ 32,078,926 $ 27,475,504
--------------- ---------------
--------------- ---------------
</TABLE>
8 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 X
------------------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED SEPTEMBER 30, INCEPTION
3/31/99 ----------------------------- 3/7/96 TO
(UNAUDITED) 1998 1997 9/30/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.68 $ 10.47 $ 10.09 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.34(6) 0.56 0.62(1) 0.31(1)
Net realized and unrealized gain
(loss) 0.02 0.40 0.47 0.08
------ ------ ------ -----
TOTAL FROM INVESTMENT OPERATIONS 0.36 0.96 1.09 0.39
------ ------ ------ -----
LESS DISTRIBUTIONS:
Dividends from net investment income (0.32) (0.57) (0.69) (0.30)
Dividends from net realized gains (0.09) (0.18) (0.02) --
------ ------ ------ -----
TOTAL DISTRIBUTIONS (0.41) (0.75) (0.71) (0.30)
------ ------ ------ -----
Change in net asset value (0.05) 0.21 0.38 0.09
------ ------ ------ -----
NET ASSET VALUE, END OF PERIOD $ 10.63 $ 10.68 $ 10.47 $ 10.09
------ ------ ------ -----
------ ------ ------ -----
Total return(2) 3.41%(4) 9.44% 11.26% 4.02%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 30,044 $ 26,455 $ 8,922 $ 3,927
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.07%(3)(7) 1.66% 1.53%(5) 0.56%(3)(5)
Net investment income (loss) 6.43%(3) 5.92% 6.31% 7.54%(3)
Portfolio turnover 44%(4) 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.
(6) Computed using average shares outstanding.
(7) For the six months ended March 31, 1999, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
See Notes to Financial Statements 9
<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
------------------------------ --------------------------- ------------------------------
SIX SIX SIX
MONTHS FROM MONTHS FROM MONTHS FROM
ENDED INCEPTION ENDED INCEPTION ENDED INCEPTION
3/31/99 7/1/98 TO 3/31/99 7/1/98 TO 3/31/99 7/1/98 TO
(UNAUDITED) 9/30/98 (UNAUDITED) 9/30/98 (UNAUDITED) 9/30/98
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period $10.68 $10.79 $10.67 $10.79 $10.67 $10.79
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income (loss) 0.27(1)(10) 0.13(1)(10) 0.23(2)(10) 0.11(2)(10) 0.23(3)(10) 0.10(3)(10)
Net realized and
unrealized gain
(loss) 0.01 (0.07) 0.01 (0.08) 0.01 (0.07)
--------- --------- --------- --------- --------- ---------
TOTAL FROM
INVESTMENT
OPERATIONS 0.28 0.06 0.24 0.03 0.24 0.03
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS:
Dividends from net
investment
income (0.28) (0.17) (0.24) (0.15) (0.24) (0.15)
Dividends from net
realized gains (0.09) -- (0.09) -- (0.09) --
--------- --------- --------- --------- --------- ---------
TOTAL
DISTRIBUTIONS (0.37) (0.17) (0.33) (0.15) (0.33) (0.15)
--------- --------- --------- --------- --------- ---------
Change in net asset
value (0.09) (0.11) (0.09) (0.12) (0.09) (0.12)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END
OF PERIOD $10.59 $10.68 $10.58 $10.67 $10.58 $10.67
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
Total return(4) 2.67%(6) 0.53%(6) 2.29%(6) 0.28%(6) 2.29%(6) 0.28%(6)
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (thousands) $890 $348 $786 $234 $359 $439
RATIO TO AVERAGE NET
ASSETS OF:
Operating expenses 2.45%(5)(7)(11) 2.45%(5)(7) 3.20%(5)(8)(11) 3.20%(5)(8) 3.20%(5)(9)(11) 3.20%(5)(9)
Net investment
income (loss) 5.13%(5) 5.17%(5) 4.38%(5) 4.42%(5) 4.27%(5) 4.27%(5)
Portfolio turnover 44%(6) 112%(6) 44%(6) 112%(6) 44%(6) 112%(6)
</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 $0.23 and $(0.03) for the periods ended March 31,
1999 and September 30, 1998, 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 $0.07 and $(0.21) for the periods ended March 31,
1999 and September 30, 1998, respectively.
(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 $0.09 and $(0.08) for the periods ended March 31,
1999 and September 30, 1998, respectively.
(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 3.40% and
8.99% for the periods ended March 31, 1999 and September 30, 1998,
respectively.
(8) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 6.17% and
15.79% for the periods ended March 31, 1999 and September 30, 1998,
respectively.
(9) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 5.80% and
11.22% for the periods ended March 31, 1999 and September 30, 1998,
respectively.
(10) Computed using average shares outstanding.
(11) For the six months ended March 31, 1999, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
10 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Growth Fund
INVESTMENTS AT MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
COMMON STOCKS--93.3%
BANKS (MAJOR REGIONAL)--3.8%
Mellon Bank Corp........................ 34,930 $ 2,458,199
BEVERAGES (ALCOHOLIC)--3.9%
Anheuser-Busch Companies, Inc........... 32,410 2,469,237
BROADCASTING (TELEVISION, RADIO & CABLE)--2.2%
Chancellor Media Corp.(b)............... 29,340 1,382,647
COMMUNICATIONS EQUIPMENT--6.6%
Lucent Technologies, Inc................ 17,750 1,912,562
Motorola, Inc........................... 31,820 2,330,815
-------------
4,243,377
-------------
COMPUTERS (HARDWARE)--6.7%
International Business Machines Corp.... 10,660 1,889,485
Sun Microsystems, Inc.(b)............... 19,400 2,423,787
-------------
4,313,272
-------------
COMPUTERS (NETWORKING)--2.0%
Cisco Systems, Inc.(b).................. 11,380 1,246,821
COMPUTERS (PERIPHERALS)--3.6%
EMC Corp.(b)............................ 18,080 2,309,720
COMPUTERS (SOFTWARE & SERVICES)--4.4%
Microsoft Corp.(b)...................... 31,740 2,844,697
CONSUMER FINANCE--3.5%
Providian Financial Corp................ 20,620 2,268,200
DISTRIBUTORS (FOOD & HEALTH)--4.2%
Cardinal Health, Inc.................... 23,375 1,542,750
McKesson HBOC, Inc...................... 17,390 1,147,740
-------------
2,690,490
-------------
ELECTRICAL EQUIPMENT--3.5%
General Electric Co..................... 20,480 2,265,600
ELECTRONICS (SEMICONDUCTORS)--5.7%
Intel Corp.............................. 15,990 1,904,809
Texas Instruments, Inc.................. 17,710 1,757,718
-------------
3,662,527
-------------
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
FINANCIAL (DIVERSIFIED)--7.8%
Citigroup, Inc.......................... 39,680 $ 2,534,560
Morgan Stanley Dean Witter & Co......... 24,500 2,448,469
-------------
4,983,029
-------------
FOODS--1.9%
General Mills, Inc...................... 16,480 1,245,270
HEALTH CARE (DIVERSIFIED)--3.5%
Bristol-Myers Squibb Co................. 34,640 2,227,785
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.9%
Guidant Corp.(b)........................ 9,000 544,500
HOUSEHOLD PRODUCTS (NON-DURABLES)--1.7%
Colgate-Palmolive Co.................... 12,140 1,116,880
MANUFACTURING (DIVERSIFIED)--4.2%
Tyco International Ltd.................. 24,060 1,726,305
United Technologies Corp................ 7,220 977,859
-------------
2,704,164
-------------
OFFICE EQUIPMENT & SUPPLIES--2.3%
Pitney Bowes, Inc....................... 22,730 1,449,038
PAPER & FOREST PRODUCTS--1.4%
Georgia-Pacific Group................... 11,640 864,270
RETAIL (GENERAL MERCHANDISE)--2.2%
Wal-Mart Stores, Inc.................... 14,950 1,378,203
RETAIL (SPECIALTY)--3.1%
Staples, Inc.(b)........................ 60,800 1,998,800
RETAIL (SPECIALTY-APPAREL)--2.5%
TJX Companies, Inc. (The)............... 47,810 1,625,540
SERVICES (ADVERTISING/MARKETING)--3.7%
Lamar Advertising Co.(b)................ 15,750 534,516
Outdoor Systems, Inc.(b)................ 60,710 1,821,300
-------------
2,355,816
-------------
TELECOMMUNICATIONS (LONG DISTANCE)--2.7%
MCI WorldCom, Inc.(b)................... 19,650 1,740,253
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix-Seneca Growth Fund
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C> <C>
TELEPHONE--5.3%
Bell Atlantic Corp...................... 34,300 $ 1,772,881
SBC Communications, Inc.(b)............. 33,780 1,591,883
-------------
3,364,764
-------------
- ------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $46,702,238) 59,753,099
- ------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--2.4%
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--2.4%
Elan Corp. PLC Sponsored ADR
(Ireland)(b)............................ 22,260 1,552,635
- ------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $1,816,996) 1,552,635
- ------------------------------------------------------------------------------
UNIT INVESTMENT TRUSTS--0.6%
UNIT INVESTMENT TRUSTS--0.6%
S&P 500 Depository Receipts............. 2,710 348,235
- ------------------------------------------------------------------------------
TOTAL UNIT INVESTMENT TRUSTS
(IDENTIFIED COST $352,547) 348,235
- ------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--96.3%
(IDENTIFIED COST $48,871,781) 61,653,969
- ------------------------------------------------------------------------------
<CAPTION>
PAR
VALUE
(000) VALUE
--------- -------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--3.9%
REPURCHASE AGREEMENT--3.9%
State Street Bank & Trust Co. repurchase
agreement, 4.25%, dated 3/31/99 due
4/1/99, repurchase price $2,512,297
collateralized by U.S. Treasury Bond
8.50%, 2/15/20, market value
$2,565,938.............................. $ 2,512 $ 2,512,000
- ------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $2,512,000) 2,512,000
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.2%
(IDENTIFIED COST $51,383,781) 64,165,969(a)
Cash and receivables, less liabilities--(0.2%) (118,927)
-------------
NET ASSETS--100.0% $ 64,047,042
-------------
-------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $13,498,363 and gross
depreciation of $860,553 for federal income tax purposes. At March 31,
1999, the aggregate cost of securities for federal income tax purposes was
$51,528,159.
(b) Non-income producing.
12 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $51,383,781) $64,165,969
Cash 728
Receivables
Fund shares sold 153,537
Dividends and interest 23,646
Deferred organization expenses 19,189
Prepaid expenses 5,854
-----------
Total assets 64,368,923
-----------
LIABILITIES
Payables
Investment securities purchased 163,494
Fund shares repurchased 23,000
Investment advisory fee 34,858
Transfer agent fee 32,530
Distribution fee 11,458
Financial agent fee 7,371
Trustees' fee 3,501
Accrued expenses 45,669
-----------
Total liabilities 321,881
-----------
NET ASSETS $64,047,042
-----------
-----------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $50,179,909
Undistributed net investment loss (108,938)
Accumulated net realized gain 1,193,883
Net unrealized appreciation 12,782,188
-----------
NET ASSETS $64,047,042
-----------
-----------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $32,733,208) 1,750,447
Net asset value and offering price per share $18.70
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $27,875,856) 1,515,898
Net asset value per share $18.39
Offering price per share $18.39/(1-4.75%) $19.31
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,511,480) 137,779
Net asset value and offering price per share $18.23
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $926,498) 50,858
Net asset value and offering price per share $18.22
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 202,884
Interest 67,271
-----------
Total investment income 270,155
-----------
EXPENSES
Investment advisory fee 201,919
Distribution fee, Class A 30,050
Distribution fee, Class B 7,497
Distribution fee, Class C 1,954
Financial agent fee 34,904
Transfer agent 35,221
Professional 17,325
Printing 13,986
Trustees 13,501
Registration 11,266
Custodian 9,692
Amortization of deferred organization expenses 4,996
Miscellaneous 9,300
-----------
Total expenses 391,611
Less expenses borne by investment advisor (12,518)
-----------
Net expenses 379,093
-----------
NET INVESTMENT LOSS (108,938)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain on securities 1,264,246
Net change in unrealized appreciation (depreciation) on
investments 10,873,139
-----------
NET GAIN ON INVESTMENTS 12,137,385
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $12,028,447
-----------
-----------
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Phoenix-Seneca Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
3/31/99 Year Ended
(Unaudited) 9/30/98
----------------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (108,938) $ (23,589)
Net realized gain (loss) 1,264,246 5,786,850
Net change in unrealized appreciation
(depreciation) 10,873,139 (3,716,413)
----------------- ------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 12,028,447 2,046,848
----------------- ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class X -- (28,234)
Net realized gains, Class X (2,678,808) (2,638,126)
Net realized gains, Class A (2,258,829) (456,891)
Net realized gains, Class B (125,921) --
Net realized gains, Class C (31,176) --
----------------- ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (5,094,734) (3,123,251)
----------------- ------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (64,050
and 285,390 shares, respectively) 1,160,055 4,884,932
Net asset value of shares issued from
reinvestment of distributions
(152,656 and 175,598 shares,
respectively) 2,665,381 2,655,713
Cost of shares repurchased (331,889
and 669,955 shares, respectively) (5,961,382) (11,501,669)
----------------- ------------
Total (2,135,946) (3,961,024)
----------------- ------------
CLASS A
Proceeds from sales of shares (512,953
and 903,203 shares, respectively) 9,063,795 16,095,224
Net asset value of shares issued from
reinvestment of distributions
(131,082 and 30,397 shares,
respectively) 2,251,983 454,436
Cost of shares repurchased (197,806
and 233,349 shares, respectively) (3,400,670) (3,581,463)
----------------- ------------
Total 7,915,108 12,968,197
----------------- ------------
CLASS B
Proceeds from sales of shares (105,488
and 32,039 shares, respectively) 1,848,634 544,661
Net asset value of shares issued from
reinvestment of distributions
(5,386 and 0 shares, respectively) 92,053 --
Cost of shares repurchased (5,134 and
0 shares, respectively) (91,097) --
----------------- ------------
Total 1,849,590 544,661
----------------- ------------
CLASS C
Proceeds from sales of shares (41,283
and 7,802 shares, respectively) 732,897 139,674
Net asset value of shares issued from
reinvestment of distributions
(1,802 and 0 shares, respectively) 30,779 --
Cost of shares repurchased (29 and 0
shares, respectively) (519) --
----------------- ------------
Total 763,157 139,674
----------------- ------------
INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 8,391,909 9,691,508
----------------- ------------
NET INCREASE IN NET ASSETS 15,325,622 8,615,105
NET ASSETS
Beginning of period 48,721,420 40,106,315
----------------- ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$(108,938) AND $0, RESPECTIVELY] $64,047,042 $ 48,721,420
----------------- ------------
----------------- ------------
</TABLE>
14 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
--------------------------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED SEPTEMBER 30 INCEPTION
3/31/99 ---------------------------------- 3/8/96 TO
(UNAUDITED) 1998 1997 9/30/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.46 $ 16.43 $ 13.74 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.02)(1) 0.00(1) 0.03(2) 0.03(2)
Net realized and unrealized gain
(loss) 3.87 1.28 3.50 3.71
------ ------ ------- ------
TOTAL FROM INVESTMENT OPERATIONS 3.85 1.28 3.53 3.74
------ ------ ------- ------
LESS DISTRIBUTIONS:
Dividends from net investment income -- (0.02) (0.07) --
Dividends from net realized gains (1.61) (1.23) (0.77) --
------ ------ ------- ------
TOTAL DISTRIBUTIONS (1.61) (1.25) (0.84) --
------ ------ ------- ------
Change in net asset value 2.24 0.03 2.69 3.74
------ ------ ------- ------
NET ASSET VALUE, END OF PERIOD $ 18.70 $ 16.46 $ 16.43 $ 13.74
------ ------ ------- ------
------ ------ ------- ------
Total return(3) 24.09%(5) 8.48% 27.27% 37.40%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $32,733 $30,713 $34,093 $12,920
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.15%(4) 1.14% 1.52%(6) 0.81%(4)(6)
Net investment income (loss) (0.20)%(4) 0.02% 0.31% 0.76%(4)
Portfolio turnover 96%(5) 166% 145.69% 87.66%(5)
</TABLE>
(1) Computed using average shares outstanding.
(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 $0.03 and $(0.09) 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.
See Notes to Financial Statements 15
<PAGE>
Phoenix-Seneca Growth Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED SEPTEMBER 30 INCEPTION
3/31/99 ------------------------------ 3/8/96 TO
(UNAUDITED) 1998 1997 9/30/96
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 16.23 $ 16.28 $ 13.63 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.04)(1) (0.06)(1) (0.08)(2) --(2)
Net realized and unrealized gain 3.81 1.24 3.50 3.63
------ ------ ------------ ------
TOTAL FROM INVESTMENT
OPERATIONS 3.77 1.18 3.42 3.63
------ ------ ------------ ------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- -- --
Dividends from net realized gains (1.61) (1.23) (0.77) --
------ ------ ------------ ------
TOTAL DISTRIBUTIONS (1.61) (1.23) (0.77) --
------ ------ ------------ ------
Change in net asset value 2.16 (0.05) 2.65 3.63
------ ------ ------------ ------
NET ASSET VALUE, END OF PERIOD $ 18.39 $ 16.23 $ 16.28 $ 13.63
------ ------ ------------ ------
------ ------ ------------ ------
Total return(3) 23.93%(5) 7.93% 26.51% 36.30%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $27,876 $17,364 $6,013 $466
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.43%(4) 1.55% 2.48%(6) 1.46%(4)(6)
Net investment income (loss) (0.51)%(4) (0.36)% (0.62)% 0.16%(4)
Portfolio turnover 96%(5) 166% 145.69% 87.66%(5)
</TABLE>
(1) Computed using average shares outstanding.
(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 2.63% and
14.01% for the year ended September 30, 1997 and the period ended September
30, 1996, respectively.
16 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 B CLASS C
-------------------------------- --------------------------------
SIX MONTHS FROM SIX MONTHS FROM
ENDED INCEPTION ENDED INCEPTION
3/31/99 7/1/98 TO 3/31/99 7/1/98 TO
(UNAUDITED) 9/30/98 (UNAUDITED) 9/30/98
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 16.19 $ 18.71 $ 16.18 $ 18.71
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.15)(1)(8) (0.04)(1)(8) (0.15)(2)(8) (0.06)(2)(8)
Net realized and unrealized gain
(loss) 3.80 (2.48) 3.80 (2.47)
------------ ------------ ------------ ------------
TOTAL FROM INVESTMENT
OPERATIONS 3.65 (2.52) 3.65 (2.53)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- -- --
Dividends from net realized gains (1.61) -- (1.61) --
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS (1.61) -- (1.61) --
------------ ------------ ------------ ------------
Change in net asset value 2.04 (2.52) 2.04 (2.53)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 18.23 $ 16.19 $ 18.22 $ 16.18
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Total return(3) 23.21%(5) (13.47)%(5) 23.23%(5) (13.52)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $2,511 $519 $926 $126
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.60%(4)(6) 2.60%(4)(6) 2.60%(4)(7) 2.60%(4)(7)
Net investment income (loss) (1.71)%(4) (1.12)%(4) (1.74)%(4) (1.39)%(4)
Portfolio turnover 96%(5) 166%(5) 96%(5) 166%(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 $(0.20) and $(0.36) for the periods ended March 31,
1999 and September 30, 1998, 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 $(0.50) and $(0.79) for the periods ended March 31,
1999 and September 30, 1998, 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 3.23% and
12.48% for the periods ended March 31, 1999 and September 30, 1998,
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 6.57% and
20.24% for the periods ended March 31, 1999 and September 30, 1998,
respectively.
(8) Computed using average shares outstanding.
See Notes to Financial Statements 17
<PAGE>
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund
INVESTMENTS AT MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
COMMON STOCKS--84.6%
BANKS (MAJOR REGIONAL)--10.0%
Comerica, Inc................. 10,665 $ 665,896
Northern Trust Corp........... 6,610 587,051
UnionBanCal Corp.............. 17,270 588,259
------------
1,841,206
------------
BEVERAGES (ALCOHOLIC)--2.9%
Coors (Adolph) Co. Class B.... 9,870 532,980
BEVERAGES (NON-ALCOHOLIC)--2.0%
Whitman Corp.................. 21,460 368,844
BIOTECHNOLOGY--2.9%
Centocor, Inc.(b)............. 14,520 537,240
BROADCASTING (TELEVISION, RADIO & CABLE)--2.2%
Chancellor Media Corp.(b)..... 8,430 397,264
COMMUNICATIONS EQUIPMENT--7.0%
ADC Telecommunications,
Inc.(b)....................... 10,810 515,502
American Tower Corp. Class
A(b).......................... 23,850 584,325
Crown Castle International
Corp.(b)...................... 10,640 191,520
------------
1,291,347
------------
COMPUTERS (SOFTWARE & SERVICES)--8.8%
Citrix Systems, Inc.(b)....... 9,560 364,475
International Integration,
Inc.(b)....................... 3,990 127,680
USWeb Corp.(b)................ 10,320 425,700
VERITAS Software Co.(b)....... 8,600 694,450
------------
1,612,305
------------
CONSUMER FINANCE--3.7%
Providian Financial Corp...... 6,265 689,150
ELECTRONICS (SEMICONDUCTORS)--12.0%
Micron Technology, Inc.(b).... 8,150 393,237
RF Micro Devices, Inc.(b)..... 5,860 560,729
Uniphase Corp.(b)............. 5,050 581,381
Xilinx, Inc.(b)............... 16,600 673,338
------------
2,208,685
------------
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
ENTERTAINMENT--3.5%
SFX Entertainment, Inc. Class
A(b).......................... 9,890 $ 638,523
FOODS--2.6%
Keebler Foods Co.(b).......... 13,280 484,720
HEALTH CARE (DIVERSIFIED)--2.3%
Mylan Laboratories, Inc....... 15,680 430,220
HEALTH CARE (GENERIC AND OTHER)--2.6%
Alpharma, Inc. Class A........ 12,240 480,420
INSURANCE (MULTI-LINE)--1.7%
Annuity and Life Re
(Holdings), Ltd............... 13,990 320,021
INVESTMENT BANKING/BROKERAGE--4.0%
Donaldson, Lufkin & Jenrette,
Inc........................... 10,560 736,560
RETAIL (COMPUTERS & ELECTRONICS)--1.8%
Best Buy Co., Inc.(b)......... 6,260 325,520
RETAIL (SPECIALTY)--3.6%
Staples, Inc.(b).............. 20,085 660,294
RETAIL (SPECIALTY-APPAREL)--6.2%
Abercrombie & Fitch Co.(b).... 6,130 563,960
TJX Companies, Inc. (The)..... 16,730 568,820
------------
1,132,780
------------
SERVICES (ADVERTISING/MARKETING)--4.8%
Lamar Advertising Co.(b)...... 4,590 155,773
Outdoor Systems, Inc.(b)...... 24,085 722,550
------------
878,323
------------
- -------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $12,312,310) 15,566,402
- -------------------------------------------------------------------
FOREIGN COMMON STOCKS--2.7%
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--2.7%
Elan Corp. PLC Sponsored ADR
(Ireland)(b).................. 7,020 489,645
- -------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $540,242) 489,645
- -------------------------------------------------------------------
</TABLE>
18 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
UNIT INVESTMENT TRUSTS--1.2%
UNIT INVESTMENT TRUSTS--1.2%
S&P 400 Mid-Cap Depository
Receipts...................... 3,280 $ 225,295
- -------------------------------------------------------------------
TOTAL UNIT INVESTMENT TRUSTS
(IDENTIFIED COST $225,902) 225,295
- -------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--88.5%
(IDENTIFIED COST $13,078,454) 16,281,342
- -------------------------------------------------------------------
<CAPTION>
PAR
VALUE
(000)
---------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--11.3%
REPURCHASE AGREEMENT--11.3%
State Street Bank & Trust Co.
repurchase agreement, 4.25%,
dated 3/31/99 due 4/1/99,
repurchase price $2,084,246
collateralized by U.S.
Treasury Bond 8.50%, 2/15/20,
market value $2,126,250....... $ 2,084 2,084,000
- -------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $2,084,000) 2,084,000
- -------------------------------------------------------------------
TOTAL INVESTMENTS--99.8%
(IDENTIFIED COST $15,162,454) 18,365,342(a)
Cash and receivables, less liabilities--0.2% 28,858
------------
NET ASSETS--100.0% $ 18,394,200
------------
------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $3,511,073 and gross
depreciation of $308,616 for federal income tax purposes. At March 31,
1999, the aggregate cost of securities for federal income tax purposes was
$15,162,885.
(b) Non-income producing.
See Notes to Financial Statements 19
<PAGE>
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $15,162,454) $18,365,342
Cash 41
Receivables
Investment securities sold 318,668
Fund shares sold 130,980
Dividends and interest 11,250
Deferred organization expenses 19,005
Prepaid expenses 1,980
-----------
Total assets 18,847,266
-----------
LIABILITIES
Payables
Fund shares repurchased 318,312
Investment securities purchased 51,265
Transfer agent fee 32,799
Investment advisory fee 15,081
Financial agent fee 5,945
Distribution fee 5,710
Trustees' fee 1,741
Accrued expenses 22,213
-----------
Total liabilities 453,066
-----------
NET ASSETS 18,394,200
-----------
-----------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $14,944,203
Undistributed net investment loss (106,319)
Accumulated net realized gain 353,428
Net unrealized appreciation 3,202,888
-----------
NET ASSETS $18,394,200
-----------
-----------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $11,627,473) 683,519
Net asset value and offering price per share $17.01
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $5,627,354) 333,260
Net asset value per share $16.89
Offering price per share $16.89/(1-4.75%) $17.73
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $694,198) 41,371
Net asset value and offering price per share $16.78
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $445,175) 26,541
Net asset value and offering price per share $16.77
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 45,691
Interest 31,351
----------
Total investment income 77,042
----------
EXPENSES
Investment advisory fee 65,811
Distribution fee, Class A 6,317
Distribution fee, Class B 1,988
Distribution fee, Class C 1,469
Financial agent fee 34,904
Transfer agent 35,221
Printing 13,970
Trustees 11,740
Registration 10,924
Amortization of deferred organization expenses 5,315
Professional 5,273
Custodian 3,214
Miscellaneous 2,297
----------
Total expenses 198,443
Less expenses borne by investment adviser (15,082)
----------
Net expenses 183,361
----------
NET INVESTMENT LOSS (106,319)
----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain on securities 355,612
Net change in unrealized appreciation (depreciation) on
investments 3,428,088
----------
NET GAIN ON INVESTMENTS 3,783,700
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,677,381
----------
----------
</TABLE>
20 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
3/31/99 Year Ended
(Unaudited) 9/30/98
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (106,319) $ (201,569)
Net realized gain (loss) 355,612 895,515
Net change in unrealized appreciation
(depreciation) 3,428,088 (1,612,591)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 3,677,381 (918,645)
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class X (355,856) (1,092,044)
Net realized gains, Class A (166,088) (289,481)
Net realized gains, Class B (11,063) --
Net realized gains, Class C (9,446) --
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (542,453) (1,381,525)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (60,225
and 135,008 shares, respectively) 974,155 2,127,609
Net asset value of shares issued from
reinvestment of distributions
(21,703 and 84,041 shares,
respectively) 354,622 1,090,132
Cost of shares repurchased (45,541 and
142,018 shares, respectively) (750,475) (2,045,120)
------------ ------------
Total 578,302 1,172,621
------------ ------------
CLASS A
Proceeds from sales of shares (120,439
and 159,888 shares, respectively) 1,923,482 2,538,940
Net asset value of shares issued from
reinvestment of distributions
(10,097 and 22,073 shares,
respectively) 163,976 286,061
Cost of shares repurchased (63,846 and
62,130 shares, respectively) (1,057,633) (947,854)
------------ ------------
Total 1,029,825 1,877,147
------------ ------------
CLASS B
Proceeds from sales of shares (30,903
and 10,599 shares, respectively) 500,268 169,635
Net asset value of shares issued from
reinvestment of distributions
(684 and 0 shares, respectively) 11,063 --
Cost of shares repurchased (815 and 0
shares, respectively) (12,767) --
------------ ------------
Total 498,564 169,635
------------ ------------
CLASS C
Proceeds from sales of shares (19,124
and 7,538 shares, respectively) 299,922 125,992
Net asset value of shares issued from
reinvestment of distributions
(402 and 0 shares, respectively) 6,510 --
Cost of shares repurchased (523 and 0
shares, respectively) (8,775) --
------------ ------------
Total 297,657 125,992
------------ ------------
INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 2,404,348 3,345,395
------------ ------------
NET INCREASE IN NET ASSETS 5,539,276 1,045,225
NET ASSETS
Beginning of period 12,854,924 11,809,699
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$(106,319) AND $0, RESPECTIVELY] $ 18,394,200 $ 12,854,924
------------ ------------
------------ ------------
</TABLE>
See Notes to Financial Statements 21
<PAGE>
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS X
------------------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED SEPTEMBER 30 INCEPTION
3/31/99 -------------------------------- 3/8/96 TO
(UNAUDITED) 1998 1997 9/30/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.81 $ 16.47 $ 14.97 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.09)(1) (0.23)(1)(2) (0.17)(2) 0.01(2)
Net realized and unrealized gain
(loss) 3.83 (0.58) 1.84 4.96
------ ------ ------------ ------
TOTAL FROM INVESTMENT OPERATIONS 3.74 (0.81) 1.67 4.97
------ ------ ------------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- (0.07) --
Dividends from net realized gains (0.54) (1.85) (0.10) --
------ ------ ------------ ------
TOTAL DISTRIBUTIONS (0.54) (1.85) (0.17) --
------ ------ ------------ ------
Change in net asset value 3.20 (2.66) 1.50 4.97
------ ------ ------------ ------
NET ASSET VALUE, END OF PERIOD $ 17.01 $ 13.81 $ 16.47 $ 14.97
------ ------ ------------ ------
------ ------ ------------ ------
Total return(3) 27.26%(5) (4.22)% 11.39% 49.70%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 11,627 $ 8,940 $ 9,390 $ 7,428
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.00%(4) 2.10%(6) 1.74%(6) 0.90%(4)(6)
Net investment income (loss) (1.06)%(4) (1.49)% (0.97)% 0.27%(4)
Portfolio turnover 99%(5) 206% 283.60% 72.34%(5)
</TABLE>
(1) Computed using average shares outstanding.
(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 $(0.27), $(0.33) and
$(0.19) 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.
22 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 A
------------------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED SEPTEMBER 30 INCEPTION
3/31/99 -------------------------------- 3/8/96 TO
(UNAUDITED) 1998 1997 9/30/96
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.75 $ 16.49 $ 14.94 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.13)(1) (0.30)(1)(2) (0.25)(2) (0.01)(2)
Net realized and unrealized gain
(loss) 3.81 (0.59) 1.90 4.95
------ ------ ------------ ------
TOTAL FROM INVESTMENT OPERATIONS 3.68 (0.89) 1.65 4.94
------ ------ ------------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- -- --
Dividends from net realized gains (0.54) (1.85) (0.10) --
------ ------ ------------ ------
TOTAL DISTRIBUTIONS (0.54) (1.85) (0.10) --
------ ------ ------------ ------
Change in net asset value 3.14 (2.74) 1.55 4.94
------ ------ ------------ ------
NET ASSET VALUE, END OF PERIOD $ 16.89 $ 13.75 $ 16.49 $ 14.94
------ ------ ------------ ------
------ ------ ------------ ------
Total return(3) 26.94%(5) (4.74)% 11.25% 49.30%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 5,627 $ 3,666 $ 2,419 $ 1,355
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.54%(4) 2.70%(6) 2.37%(6) 1.55%(4)(6)
Net investment income (loss) (1.61)%(4) (1.95)% (1.60)% (0.46)%(4)
Portfolio turnover 99%(5) 206% 283.60% 72.34%(5)
</TABLE>
(1) Computed using average shares outstanding.
(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 2.74%,
4.32% and 9.73% for the years ended September 30, 1998 and 1997 and the
period ended September 30, 1996, respectively.
See Notes to Financial Statements 23
<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
-------------------------------- ---------------------------------
SIX MONTHS FROM SIX MONTHS FROM
ENDED INCEPTION ENDED INCEPTION
3/31/99 7/1/98 TO 3/31/99 7/1/98 TO
(UNAUDITED) 9/30/98 (UNAUDITED) 9/30/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.73 $ 17.15 $ 13.72 $ 17.15
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.20)(1)(2) (0.09)(1)(2) (0.20)(1)(3) (0.09)(1)(3)
Net realized and unrealized gain
(loss) 3.79 (3.33) 3.79 (3.34)
------------ ------------ ------------ ------------
TOTAL FROM INVESTMENT OPERATIONS 3.59 (3.42) 3.59 (3.43)
------------ ------------ ------------ ------------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- -- --
Dividends from net realized gains (0.54) -- (0.54) --
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS (0.54) -- (0.54) --
------------ ------------ ------------ ------------
Change in net asset value 3.05 (3.42) 3.05 (3.43)
------------ ------------ ------------ ------------
NET ASSET VALUE, END OF PERIOD $ 16.78 $ 13.73 $ 16.77 $ 13.72
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Total return(4) 26.31%(6) (19.94)%(6) 26.32%(6) (20.00)%(6)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $694 $145 $445 $103
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 3.45%(5)(7) 3.45%(5)(7) 3.45%(5)(8) 3.45%(5)(8)
Net investment income (loss) (2.51)%(5) (2.45)%(5) (2.52)%(5) (2.44)%(5)
Portfolio turnover 99%(6) 206%(6) 99%(6) 206%(6)
</TABLE>
(1) Computed using average shares outstanding.
(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 $(0.50) and $(0.69) for the periods ended March 31,
1999 and September 30, 1998, respectively.
(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 $(0.63) and $(0.77) for the periods ended March 31,
1999 and September 30, 1998, respectively.
(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 7.15% and
20.80% for the periods ended March 31, 1999 and September 30, 1998,
respectively.
(8) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 8.71% and
21.14% for the periods ended March 31, 1999 and September 30, 1998,
respectively.
24 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
INVESTMENTS AT MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
COMMON STOCKS--92.5%
REAL ESTATE INVESTMENT TRUSTS--92.4%
COMMERCIAL--34.3%
INDUSTRIAL--6.7%
Bedford Property Investors,
Inc........................... 41,600 $ 608,400
Capital Trust Class A(b)...... 31,500 153,562
First Industrial Realty Trust,
Inc........................... 24,500 586,469
------------
1,348,431
------------
MIXED - INDUSTRIAL/OFFICE--3.2%
TriNet Corporate Realty Trust,
Inc........................... 25,500 647,062
MORTGAGE BACKED--2.8%
Northstar Financial
Corp.(c)...................... 35,000 560,000
OFFICE--21.6%
Cornerstone Properties,
Inc........................... 48,500 709,312
Equity Office Properties
Trust......................... 45,100 1,147,231
Mack-Cali Realty Corp......... 32,800 963,500
Prentiss Properties Trust..... 30,400 566,200
Spieker Properties, Inc....... 27,000 951,750
------------
4,337,993
------------
- -------------------------------------------------------------------
TOTAL COMMERCIAL 6,893,486
- -------------------------------------------------------------------
DIVERSIFIED--9.1%
Crescent Real Estate Equities
Co............................ 36,000 774,000
Entertainment Properties
Trust......................... 12,000 207,000
Pacific Gulf Properties,
Inc........................... 47,050 846,900
------------
1,827,900
------------
LODGING/RESORTS--11.2%
FelCor Lodging Trust, Inc..... 37,275 864,314
MeriStar Hospitality Corp..... 27,374 497,865
Patriot American Hospitality,
Inc........................... 58,538 300,007
Starwood Hotel & Resorts
Worldwide, Inc................ 16,000 457,000
Sunstone Hotel Investors,
Inc........................... 18,890 135,772
------------
2,254,958
------------
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
RESIDENTIAL--24.6%
APARTMENTS--17.8%
Archstone Communities Trust... 32,996 $ 664,045
Avalonbay Communities, Inc.... 15,750 498,094
Berkshire Realty Company,
Inc........................... 22,257 249,000
Equity Residential Properties
Trust......................... 28,200 1,163,250
Essex Property Trust, Inc..... 35,000 914,375
Walden Residential Properties,
Inc........................... 5,000 88,125
------------
3,576,889
------------
MANUFACTURED HOMES--6.8%
Chateau Communities, Inc...... 20,700 569,250
Manufactured Home Communities,
Inc........................... 33,200 796,800
------------
1,366,050
------------
- -------------------------------------------------------------------
TOTAL RESIDENTIAL 4,942,939
- -------------------------------------------------------------------
RETAIL--13.2%
COMMUNITY/NEIGHBORHOOD--1.1%
Developers Diversified Realty
Corp.......................... 15,200 217,550
REGIONAL MALLS--12.1%
Macerich Co. (The)............ 38,400 871,200
Simon Property Group, Inc..... 20,415 560,137
Urban Shopping Centers,
Inc........................... 35,000 1,004,063
------------
2,435,400
------------
- -------------------------------------------------------------------
TOTAL RETAIL 2,652,950
- -------------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUSTS
(IDENTIFIED COST $23,233,940) 18,572,233
- -------------------------------------------------------------------
REAL ESTATE OPERATING COMPANIES--0.1%
DIVERSIFIED--0.1%
Catellus Development
Corp.(b)...................... 2,400 32,100
- -------------------------------------------------------------------
TOTAL REAL ESTATE OPERATING COMPANIES
(IDENTIFIED COST $45,894) 32,100
- -------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $23,279,834) 18,604,333
- -------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 25
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
CONVERTIBLE PREFERRED STOCKS--5.7%
REAL ESTATE INVESTMENT TRUSTS--5.7%
COMMERCIAL--3.0%
OFFICE--3.0%
Reckson Associates Realty
Corp. Series A Cv. Pfd.
7.625%........................ 30,000 $ 611,250
DIVERSIFIED--2.7%
Glenborough Realty Trust, Inc.
Series A Cv. Pfd. 7.75%....... 32,550 545,212
- -------------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUSTS
(IDENTIFIED COST $1,470,254) 1,156,462
- -------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $1,470,254) 1,156,462
- -------------------------------------------------------------------
TOTAL INVESTMENTS--98.2%
(IDENTIFIED COST $24,750,088) 19,760,795(a)
Cash and receivables, less liabilities--1.8% 358,120
------------
NET ASSETS--100.0% $ 20,118,915
------------
------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $192,397 and gross
depreciation of $5,190,419 for federal income tax purposes. At March 31,
1999, the aggregate cost of securities for federal income tax purposes was
$24,758,817.
(b) Non-income producing.
(c) Private Placement.
26 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $24,750,088) $19,760,795
Receivables
Investment securities sold 253,515
Dividends and Interest 210,916
Deferred organization expenses 18,871
Prepaid expenses 3,886
-----------
Total assets 20,247,983
-----------
LIABILITIES
Payables
Fund shares repurchased 12,047
Custodian 10,795
Transfer agent fee 35,632
Investment advisory fee 30,713
Financial agent fee 5,945
Trustees' fee 1,550
Distribution fee 1,351
Accrued expenses 31,035
-----------
Total liabilities 129,068
-----------
NET ASSETS $20,118,915
-----------
-----------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $25,681,798
Undistributed net investment loss (116,187)
Accumulated net realized loss (457,403)
Net unrealized depreciation (4,989,293)
-----------
NET ASSETS $20,118,915
-----------
-----------
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $18,782,927) 1,935,184
Net asset value and offering price per share $9.71
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $971,659) 101,161
Net asset value per share $9.61
Offering price per share $9.61/(1-4.75%) $10.09
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $177,689) 18,439
Net asset value and offering price per share $9.64
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $186,640) 19,378
Net asset value and offering price per share $9.63
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 547,286
Interest 8,355
----------
Total investment income 555,641
----------
EXPENSES
Investment advisory fee 93,052
Distribution fee, Class A 1,452
Distribution fee, Class B 709
Distribution fee, Class C 514
Financial agent fee 34,904
Transfer agent 35,221
Trustees 11,550
Professional 11,325
Registration 9,427
Printing 7,333
Amortization of deferred organization expenses 5,314
Custodian 3,669
Miscellaneous 3,246
----------
Total expenses 217,716
Less expenses borne by investment adviser (21,473)
----------
Net expenses 196,243
----------
NET INVESTMENT INCOME 359,398
----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized loss on securities (447,694)
Net change in unrealized appreciation (depreciation) on
investments (1,613,565)
----------
NET LOSS ON INVESTMENTS (2,061,259)
----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(1,701,861)
----------
----------
</TABLE>
See Notes to Financial Statements 27
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
3/31/99 Year Ended
(Unaudited) 9/30/98
------------------- -------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 359,398 $ 1,139,214
Net realized gain (loss) (447,694) 551,625
Net change in unrealized appreciation
(depreciation) (1,613,565) (7,262,351)
------------------- -------------------
DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS (1,701,861) (5,571,512)
------------------- -------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class X (611,965) (927,830)
Net investment income, Class A (28,379) (63,404)
Net investment income, Class B (3,214) (523)
Net investment income, Class C (1,812) (508)
Net realized gains, Class X (499,713) (1,123,456)
Net realized gains, Class A (30,097) (124,174)
Net realized gains, Class B (4,310) --
Net realized gains, Class C (2,368) --
------------------- -------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (1,181,858) (2,239,895)
------------------- -------------------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (192,347
and 190,605 shares, respectively) 1,923,506 2,502,892
Net asset value of shares issued from
reinvestment of distributions
(110,658 and 153,188 shares,
respectively) 1,098,655 2,018,886
Cost of shares repurchased (329,836
and 297,712 shares, respectively) (3,346,299) (3,754,823)
------------------- -------------------
Total (324,138) 766,955
------------------- -------------------
CLASS A
Proceeds from sales of shares (6,150
and 31,969 shares, respectively) 62,281 436,921
Net asset value of shares issued from
reinvestment of distributions
(5,572 and 13,501 shares,
respectively) 54,903 179,472
Cost of shares repurchased (33,969 and
138,471 shares, respectively) (338,924) (1,815,501)
------------------- -------------------
Total (221,740) (1,199,108)
------------------- -------------------
CLASS B
Proceeds from sales of shares (9,761
and 8,978 shares, respectively) 101,855 113,001
Net asset value of shares issued from
reinvestment of distributions
(759 and 47 shares, respectively) 7,524 523
Cost of shares repurchased (304 and
802 shares, respectively) (2,979) (9,281)
------------------- -------------------
Total 106,400 104,243
------------------- -------------------
CLASS C
Proceeds from sales of shares (10,978
and 7,932 shares, respectively) 108,050 100,250
Net asset value of shares issued from
reinvestment of distributions
(422 and 46 shares, respectively) 4,179 506
Cost of shares repurchased (0 and 0
shares, respectively) (3) --
------------------- -------------------
Total 112,226 100,756
------------------- -------------------
DECREASE IN NET ASSETS FROM SHARE
TRANSACTIONS (327,252) (227,154)
------------------- -------------------
NET DECREASE IN NET ASSETS (3,210,971) (8,038,561)
NET ASSETS
Beginning of period 23,329,886 31,368,447
------------------- -------------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$(116,187) AND $169,785,
RESPECTIVELY] $20,118,915 $23,329,886
------------------- -------------------
------------------- -------------------
</TABLE>
28 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 X
-------------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED SEPTEMBER 30, INCEPTION
3/31/99 ----------------------------- 3/12/96 TO
(UNAUDITED) 1998 1997 9/30/96
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 11.11 $ 14.71 $ 11.10 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.18 0.54 0.13(1) 0.13(1)
Net realized and unrealized gain
(loss) (1.02) (3.10) 3.77 1.10
------ ---------- ------ -----
TOTAL FROM INVESTMENT
OPERATIONS (0.84) (2.56) 3.90 1.23
------ ---------- ------ -----
LESS DISTRIBUTIONS
Dividends from net investment
income (0.31) (0.46) (0.28) (0.13)
Dividends from net realized gains (0.25) (0.58) (0.01) --
------ ---------- ------ -----
TOTAL DISTRIBUTIONS (0.56) (1.04) (0.29) (0.13)
------ ---------- ------ -----
Change in net asset value (1.40) (3.60) 3.61 1.10
------ ---------- ------ -----
NET ASSET VALUE, END OF PERIOD $ 9.71 $ 11.11 $ 14.71 $ 11.10
------ ---------- ------ -----
------ ---------- ------ -----
Total return(2) (7.59)%(4) (18.33)% 35.44% 12.39%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $ 18,783 $ 21,794 $ 28,193 $ 1,073
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.70%(3) 1.47% 1.99%(5) 1.00%(3)(5)
Net investment income (loss) 3.37%(3) 4.14% 2.38% 4.39%(3)
Portfolio turnover 5%(4) 53% 75.68% 30.70%(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 $0.13 and $(1.45) 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 1.99% and
53.04% for the year ended September 30, 1997 and the period ended September
30, 1996, respectively.
See Notes to Financial Statements 29
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------
SIX MONTHS YEAR ENDED FROM
ENDED SEPTEMBER 30, INCEPTION
3/31/99 ----------------------------- 3/12/96 TO
(UNAUDITED) 1998 1997 9/30/96
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 11.00 $ 14.68 $ 11.08 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.07(1) 0.35 0.03(1) 0.13(1)
Net realized and unrealized gain
(loss) (0.97) (3.08) 3.78 1.08
----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS (0.90) (2.73) 3.81 1.21
----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income (0.24) (0.37) (0.20) (0.13)
Dividends from net realized gains (0.25) (0.58) (0.01) --
----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.49) (0.95) (0.21) (0.13)
----- ----- ----- -----
Change in net asset value (1.39) (3.68) 3.60 1.08
----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 9.61 $ 11.00 $ 14.68 $ 11.08
----- ----- ----- -----
----- ----- ----- -----
Total return(2) (8.21)%(4) (19.52)% 34.54% 12.22%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $ 972 $ 1,357 $ 3,176 $ 222
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 3.05%(3)(5) 2.76% 2.91%(5) 1.65%(3)(5)
Net investment income (loss) 2.00%(3) 2.45% 1.37% 4.61%(3)
Portfolio turnover 5%(4) 53% 75.68% 30.70%(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 $0.02, $(0.04) and $(1.96) for the period ended March
31, 1999, 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 3.97%,
3.79% and 73.01% for the period ended March 31, 1999, the year ended
September 30, 1997 and the period ended September 30, 1996, respectively.
30 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
--------------------------------- ---------------------------------
SIX MONTHS FROM SIX MONTHS FROM
ENDED INCEPTION ENDED INCEPTION
3/31/99 7/1/98 TO 3/31/99 7/1/98 TO
(UNAUDITED) 9/30/98 (UNAUDITED) 9/30/98
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 11.01 $ 12.58 $ 11.01 $ 12.58
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.10(1) 0.07(1) 0.16(2) 0.07(2)
Net realized and unrealized gain (1.03) (1.58) (1.10) (1.58)
----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS (0.93) (1.51) (0.94) (1.51)
----- ----- ----- -----
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.19) (0.06) (0.19) (0.06)
Dividends from net realized gains (0.25) -- (0.25) --
----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.44) (0.06) (0.44) (0.06)
----- ----- ----- -----
Change in net asset value (1.37) (1.57) (1.38) (1.57)
----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 9.64 $ 11.01 $ 9.63 $ 11.01
----- ----- ----- -----
----- ----- ----- -----
Total return(3) (8.53)%(5) (11.97)%(5) (8.62)%(5) (11.97)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $178 $91 $187 $88
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 3.80%(4)(6) 3.80%(4)(6) 3.80%(4)(7) 3.80%(4)(7)
Net investment income (loss) 2.28%(4) 2.50%(4) 2.61%(4) 2.44%(4)
Portfolio turnover 5%(5) 53%(5) 5%(5) 53%(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 $(0.33) and $(0.46) for the periods ended March 31,
1999 and September 30, 1998, 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 $(0.26) and $(0.48) for the periods ended March 31,
1999 and September 30, 1998, 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 14.99%
and 22.08% for the periods ended March 31, 1999 and September 30, 1998,
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 19.72%
and 22.93% for the periods ended March 31, 1999 and September 30, 1998,
respectively.
See Notes to Financial Statements 31
<PAGE>
PHOENIX-SENECA FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999 (UNAUDITED)
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 Bond Fund, Phoenix-Seneca Growth Fund, Phoenix-Seneca Mid-Cap
"EDGE"-SM- Fund and Phoenix-Seneca Real Estate Securities Fund (formerly Seneca
Bond Fund, Seneca Growth Fund, Seneca Mid-Cap "EDGE"-SM- Fund and Seneca Real
Estate Securities Fund, respectively). Each Fund represents an investment in a
separate diversified fund with its own investment objectives. Bond Fund seeks to
generate a high level of current income and capital appreciation. 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. 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. 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.
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. FOREIGN CURRENCY TRANSLATION:
Foreign securities and other assets and liabilities are valued using the
foreign currency exchange rate effective at the end of the reporting period.
Cost of investments is translated at the currency exchange rate effective at the
trade date. The gain or loss resulting from a change in currency exchange rates
between the trade and settlement dates of a portfolio transaction is treated as
a gain or loss on foreign currency. Likewise, the gain or loss resulting from a
change in currency exchange rates between the date income is accrued and paid is
treated as a gain or loss on foreign currency. The Trust does not
32
<PAGE>
PHOENIX-SENECA FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999 (UNAUDITED) (CONTINUED)
separate that portion of the results of operations arising from changes in
exchange rates and that portion arising from changes in the market prices of
securities.
F. FORWARD CURRENCY CONTRACTS:
Each Fund may enter into forward currency contracts in conjunction with the
planned purchase or sale of foreign denominated securities in order to hedge the
U.S. dollar cost or proceeds. Forward currency contracts involve, to varying
degrees, elements of market risk in excess of the amount recognized in the
statement of assets and liabilities. Risks arise from the possible movements in
foreign exchange rates or if the counterparty does not perform under the
contract.
A forward currency contract involves an obligation to purchase or sell a
specific currency at a future date, which may be any number of days from the
date of the contract agreed upon by the parties, at a price set at the time of
the contract. These contracts are traded directly between currency traders and
their customers. The contract is marked-to-market daily and the change in market
value is recorded by each Fund as an unrealized gain (or loss). When the
contract is closed or offset with the same counterparty, the Fund records a
realized gain (or loss) equal to the change in the value of the contract when it
was opened and the value at the time it was closed or offset.
G. OPTIONS:
Each Fund may write covered options or purchase options contracts for the
purpose of hedging against changes in the market value of the underlying
securities or foreign currencies.
Each fund will realize a gain or loss upon the expiration or closing of the
option transaction. Gains and losses on written options are reported separately
in the Statement of Operations. When a written option is exercised, the proceeds
on sales or amounts paid are adjusted by the amount of premium received. Options
written are reported as a liability in the Statement of Assets and Liabilities
and subsequently marked-to-market to reflect the current value of the option.
The risk associated with written options is that the change in value of options
contracts may not correspond to the change in value of the hedged instruments.
In addition, losses may arise from changes in the value of the underlying
instruments, or if a liquid secondary market does not exist for the contracts.
Each Fund may purchase options which are included in the Funds' Schedule of
Investments and subsequently marked-to-market to reflect the current value of
the option. When a purchased option is exercised, the cost of the security is
adjusted by the amount of premium paid. The risk associated with purchased
options is limited to the premium paid.
H. 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.
I. 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.
J. 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.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
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. 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>
Bond Fund................................................. 0.50%
Growth Fund............................................... 0.70%
Mid-Cap "EDGE"-SM- Fund................................... 0.80%
Real Estate Securities Fund............................... 0.85%
</TABLE>
The Adviser pays the Subadviser a fee equal to one half of the Adviser fee.
Phoenix Equity Planning Corporation ("PEPCO"), a direct subsidiary of PXP,
serves as Administrator of the Trust. PEPCO received a fee for administration
services through December 31, 1998 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 applied. Effective January 1, 1999,
33
<PAGE>
PHOENIX-SENECA FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999 (UNAUDITED) (CONTINUED)
PEPCO receives a financial agent fee equal to the sum of (1) the documented cost
of fund accounting and related services provided by PFPC Inc. (subagent to
PEPCO), plus (2) the documented cost to PEPCO to provide financial reporting,
tax services and oversight of the subagent's performance. The current fee
schedule of PFPC Inc. ranges from 0.085% to 0.0125% of the average daily net
asset values of the Trust. Certain minimum fees and fee waivers may apply.
The Adviser and the Administrator voluntarily agreed to waive or reimburse
each Fund's operating expenses until July 1, 2000, to the extent that such
expenses exceed the following percentages of average annual net assets:
<TABLE>
<CAPTION>
Class X Class A Class B Class C
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Bond Fund..................... 1.85% 2.45% 3.20% 3.20%
Growth Fund................... 1.25% 1.85% 2.60% 2.60%
Mid-Cap "EDGE"-SM- Fund....... 2.10% 2.70% 3.45% 3.45%
Real Estate Securities Fund... 2.35% 3.05% 3.80% 3.80%
</TABLE>
PEPCO serves as the national distributor of the Trust's shares and has advised
the Trust that it retained net selling commissions of $5,705 for Class A shares
for the six months ended March 31, 1999. Deferred sales charges retained by
PEPCO for the six months ended March 31, 1999 were $1,994 for Class B shares and
$63 for Class C shares. 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 six months ended
March 31, 1999, $45,750 was retained by the Distributor, $10,846 was paid out to
unaffiliated Participants and $688 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 six months ended March 31, 1999, transfer
agent fees were $140,884 of which PEPCO retained $178 which is net of fees paid
to State Street.
At March 31, 1999, PHL and affiliates held Phoenix-Seneca Fund shares which
aggregated the following:
<TABLE>
<CAPTION>
Aggregate
Net Asset
Shares Value
--------- -----------
<S> <C> <C>
Bond Fund--Class X....................... 1,468,140 $15,606,327
Bond Fund--Class A....................... 9,756 103,315
Bond Fund--Class B....................... 9,705 102,679
Bond Fund--Class C....................... 9,704 102,670
Growth Fund--Class B..................... 5,931 108,122
Growth Fund--Class C..................... 5,931 108,068
Mid-Cap "EDGE"-SM- Fund--Class B......... 6,062 101,713
Mid-Cap "EDGE"-SM- Fund--Class C......... 6,062 101,653
Real Estate Securities Fund--Class B..... 8,313 80,142
Real Estate Securities Fund--Class C..... 8,314 80,062
</TABLE>
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended March 31, 1999
(excluding U.S. Government and agency securities and short-term securities)
aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
----------- -----------
<S> <C> <C>
Bond Fund.............................. $13,841,064 $ 9,114,243
Growth Fund............................ 56,484,915 52,530,162
Mid-Cap "EDGE"-SM- Fund................ 15,873,830 15,048,553
Real Estate Securities Fund............ 1,121,959 1,938,267
</TABLE>
Purchases and sales of long-term U.S. Government and agency securities during
the six months ended March 31, 1999, aggregated $3,510,854 and $3,867,512,
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.
5. OTHER
As of March 31, 1999, 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 12.9 %
Real Estate Securities Fund............ 2 31.1 %
</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.
34
<PAGE>
PHOENIX-SENECA FUNDS
909 Montgomery Street
San Francisco, California 94133
TRUSTEES AND OFFICERS
Mary Ann Cusenza, Trustee
Harry Dalzell-Payne, Trustee
Norman P. Douglass, 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
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574 (option 0)
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
World Wide Web address:
WWW.PHOENIXINVESTMENTS.COM
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION
PO Box 2200
Enfield CT 06083-2200
[LOGO] PHOENIX
INVESTMENT PARTNERS
Bulk Rate Mail
U.S. Postage
PAID
Springfield, MA
Permit No 444
PXP 3108 (5/99)
