<PAGE>
Phoenix Investment Partners
SEMIANNUAL REPORT
MARCH 31, 2000
SENECA
-- 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:
We are pleased to provide this semiannual financial summary for the
Phoenix-Seneca Funds for the six months ended March 31, 2000.
If you have any questions, please call your financial advisor or a customer
service representative 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 3, 2000
Mutual funds are not insured by the FDIC; are not
deposits or other obligations of a bank and are not
guaranteed by a bank; and are subject to
investment risks, including possible loss of the
principal invested.
1
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Phoenix-Seneca Bond Fund.................................................. 3
Phoenix-Seneca Growth Fund................................................ 12
Phoenix-Seneca Mid-Cap "EDGE"-SM- Fund.................................... 18
Phoenix-Seneca Real Estate Securities Fund................................ 24
Notes to Financial Statements............................................. 30
</TABLE>
2
<PAGE>
Phoenix-Seneca Bond Fund
INVESTMENTS AT MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------ -----------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--0.2%
U.S. TREASURY NOTES--0.2%
U.S. Treasury Notes 6.625%, 6/30/01...... Aaa $ 100 $ 100,181
- ------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $101,052) 100,181
- ------------------------------------------------------------------------
AGENCY MORTGAGE-BACKED SECURITIES--14.0%
Fannie Mae 6.50%, 12/1/28................ Aaa 371 347,952
Fannie Mae 6.50%, 8/1/29................. Aaa 966 905,944
Fannie Mae 7%, 1/1/30.................... Aaa 1,505 1,446,648
Fannie Mae 7.50%, 3/1/30................. Aaa 1,100 1,081,390
Fannie Mae 8.75%, 5/25/17................ Aaa 4 4,416
Fannie Mae Strip I.O. 2.375%,
10/25/23(c).............................. Aaa 176 3,600
Freddie Mac 6%, 10/15/27................. Aaa 1,125 1,026,800
Freddie Mac 7%, 7/15/23.................. Aaa 796 736,380
Freddie Mac 8.75%, 12/15/20.............. Aaa 3 2,695
GNMA 7%, 2/15/26......................... Aaa 16 15,729
GNMA WI 6%, 4/15/30...................... Aaa 600 549,375
- ------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $6,236,415) 6,120,929
- ------------------------------------------------------------------------
ASSET-BACKED SECURITIES--3.4%
Citibank Standard Credit Card Master
Trust 1 93-2, A 5.95%, 9/7/03............ Aaa 40 38,453
Olympic Automobile Receivables Trust
96-B, CTFS 6.90%, 2/15/04................ Aaa 56 56,263
Olympic Automobile Receivables Trust
96-C, A5 7%, 3/15/04..................... Aaa 400 399,816
Olympic Automobile Receivables Trust
96-D, A5 6.25%, 11/15/04................. Aaa 1,000 991,745
- ------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $1,502,782) 1,486,277
- ------------------------------------------------------------------------
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------ -----------
<S> <C> <C> <C>
CORPORATE BONDS--64.8%
AIR FREIGHT--1.0%
Federal Express Corp. Series 98-1A 6.72%,
1/15/22.................................. Aa $ 490 $ 453,547
AIRLINES--2.1%
Alaska Airlines, Inc. Series A 9.50%,
4/12/10.................................. Baa 109 108,812
Alaska Airlines, Inc. Series D 9.50%,
4/12/12.................................. Baa 438 455,914
Delta Air Lines, Inc. Series B2 10.06%,
1/2/16................................... Baa 65 74,117
United Airlines, Inc. Series 91-B 10.11%,
2/19/06.................................. Baa 16 17,396
United Airlines, Inc. Series 91-E 9.76%,
5/27/06.................................. Baa 82 85,517
United Airlines, Inc. Series 95-A1 9.02%,
4/19/12.................................. Baa 176 181,452
-----------
923,208
-----------
BANKS (MAJOR REGIONAL)--2.1%
First Republic Bancorp 7.75%, 9/15/12.... BB+(d) 300 262,259
Wells Fargo Capital I 7.96%, 12/15/26.... Aa 700 667,345
-----------
929,604
-----------
BANKS (MONEY CENTER)--0.9%
BankAmerica Corp. Institutional Series A
144A 8.07%, 12/31/26(b).................. Aa 400 385,985
BROADCASTING (TELEVISION, RADIO & CABLE)--5.8%
AMFM, Inc. 8%, 11/01/08.................. Ba 500 495,000
Charter Communications 144A 0%,
1/15/10(b)(c)............................ B 500 273,750
Fox/Liberty Networks LLC 0%,
8/15/07(c)............................... Ba 1,580 1,271,900
Jones Intercable, Inc. 9.625%, 3/15/02... Baa 300 312,000
Turner Broadcasting System, Inc. 8.40%,
2/1/24................................... Baa 200 200,104
-----------
2,552,754
-----------
</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>
COMMUNICATIONS EQUIPMENT--1.1%
Level 3 Communications, Inc. 144A 0%,
3/15/10(b)(c)............................ B $1,000 $ 500,000
CONSUMER (JEWELRY, NOVELTIES & GIFTS)--0.1%
Finlay Fine Jewelry Corp. 8.375%,
5/1/08................................... Ba 40 35,800
CONSUMER FINANCE--1.2%
Olympic Financial Ltd. 11.50%, 3/15/07... B 297 311,850
Olympic/Arcadia Financial Ltd. 11.50%,
3/15/07.................................. B 200 209,750
-----------
521,600
-----------
ELECTRONICS (SEMICONDUCTORS)--1.8%
SGC Holdings & Semiconductor Co. 12%,
8/1/09................................... B 750 802,500
ENGINEERING & CONSTRUCTION--2.1%
Mastec, Inc. Series B 7.75%, 2/1/08...... Ba 1,000 927,500
ENTERTAINMENT--2.0%
Time Warner, Inc. 6.85%, 1/15/26......... Baa 620 610,700
Time Warner, Inc. 9.125%, 1/15/13........ Baa 65 71,797
United Artists Theatre Circuit, Inc.
Series 95-A 9.30%, 7/1/15................ B 323 206,604
-----------
889,101
-----------
FINANCIAL (DIVERSIFIED)--1.9%
Countrywide Capital I 8%, 12/15/26....... A 200 181,171
Dollar Financial Group, Inc. Series A
10.875%, 11/15/06........................ B 75 75,000
Market Hub Partners Finance, Inc. 8.25%,
3/1/08................................... Ba 250 235,000
Pinnacle Holdings Inc. 0%, 3/15/08(c).... B 500 322,500
-----------
813,671
-----------
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--1.1%
Park Place Entertainment 8.50%,
11/15/06................................. Baa 500 485,000
HEALTH CARE (HOSPITAL MANAGEMENT)--0.9%
Universal Health Services, Inc. 8.75%,
8/15/05.................................. Ba 400 393,914
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.6%
Dade International, Inc. Series B
11.125%, 5/1/06.......................... B 260 252,525
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------ -----------
<S> <C> <C> <C>
HEALTH CARE (SPECIALIZED SERVICES)--1.1%
HEALTHSOUTH Corp. 9.50%, 4/1/01.......... Ba $ 500 $ 494,129
HOMEBUILDING--1.7%
Lennar Corp. 7.625%, 3/1/09(e)........... Ba 800 728,000
INVESTMENT BANKING/BROKERAGE--3.1%
Donaldson, Lufkin & Jenrette, Inc. 6.50%,
6/1/08................................... A 200 183,309
Lehman Brothers Holdings, Inc. 8.80%,
3/1/15................................... A 80 85,195
Lehman Brothers Holdings, Inc. Series F
7%, 5/15/03.............................. A 500 491,250
Socgen Real Estate LLC Series A 144A
7.64%, 12/29/49(b)(c).................... A 650 606,098
-----------
1,365,852
-----------
LODGING-HOTELS--1.3%
Hammons (John Q.) Hotels, Inc. 8.875%,
2/15/04.................................. B 530 474,350
Hammons (John Q.) Hotels, Inc. 9.75%,
10/1/05.................................. B 100 88,000
-----------
562,350
-----------
MACHINERY (DIVERSIFIED)--1.5%
Better Minerals & Aggregates 144A 13%,
9/15/09(b)............................... B 650 648,375
MANUFACTURING (DIVERSIFIED)--0.0%
Hawk Corp. 10.25%, 12/1/03............... Ba 10 9,350
MANUFACTURING (SPECIALIZED)--1.2%
Advanced Glassfiber Yarn 9.875%,
1/15/09.................................. B 300 262,500
BGF Industries, Inc. Series B 10.25%,
1/15/09.................................. B 300 271,500
-----------
534,000
-----------
OIL & GAS (REFINING & MARKETING)--0.7%
El Paso Tenneco RACERS 97-C-1-2 144A
9.14%, 12/31/01(b)....................... NR 300 306,000
PAPER & FOREST PRODUCTS--0.1%
Container Corporation of America Series A
11.25%, 5/1/04........................... B 40 40,800
</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>
PUBLISHING (NEWSPAPERS)--0.7%
Garden State Newspapers, Inc. Series B
8.75%, 10/1/09........................... B $ 325 $ 290,875
RAILROADS--1.3%
Railworks Corp. 11.50%, 4/15/09.......... B 600 567,000
REITS--4.0%
ERP Operating L.P. 7.57%, 8/15/26........ A 170 170,290
Evans Withycomb Residential, Inc. 7.50%,
4/15/04.................................. A 100 98,499
First Industrial L.P. 7.15%, 5/15/27..... Baa 500 488,821
Property Trust of America 6.875%,
2/15/08.................................. Baa 5 4,774
Regency Centers L.P. 7.4%, 4/1/04........ Baa 500 480,000
Security Capital Pacific Trust 7.375%,
10/15/06................................. Baa 100 94,772
Security Capital Pacific Trust 7.90%,
2/15/16.................................. Baa 200 178,000
Washington Real Estate Investment Trust
7.125%, 8/13/03.......................... Baa 110 106,593
Weingarten Realty Investors Series A
6.88%, 6/25/27........................... A 150 139,028
-----------
1,760,777
-----------
RESTAURANTS--0.6%
Foodmaker, Inc. Series B 9.75%,
11/1/03.................................. BB(d) 250 250,625
RETAIL (DISCOUNTERS)--0.7%
AMES Department Stores 10%, 4/15/06...... B 350 324,625
RETAIL (DRUG STORES)--0.8%
Rite Aid Corp. 144A 5.50%, 12/15/00(b)... B 500 360,000
RETAIL (FOOD CHAINS)--0.9%
Kroger Co. 6%, 7/1/00(c)................. Baa 275 273,921
Meyer (Fred), Inc. Series 94-A2 8.64%,
7/2/12................................... BBB-(d) 92 95,084
-----------
369,005
-----------
RETAIL (GENERAL MERCHANDISE)--3.0%
K Mart Funding Corp. Series F 8.80%,
7/1/10................................... Ba 500 479,321
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------ -----------
<S> <C> <C> <C>
RETAIL (GENERAL MERCHANDISE)--CONTINUED
Wal-Mart Stores, Inc. Series A-2 8.85%,
1/2/15................................... Aa $ 750 $ 828,750
-----------
1,308,071
-----------
RETAIL (SPECIALTY)--1.2%
Buhrmann U.S., Inc. 144A 12.25%,
11/1/09(b)............................... B 500 508,750
SAVINGS & LOAN COMPANIES--1.1%
Sovereign Bancorp 6.625%, 3/15/01........ Ba 500 488,750
SERVICES (COMMERCIAL & CONSUMER)--4.1%
Coinmach Laundry Corp. Series D 11.75%,
11/15/05................................. B 255 242,250
Loomis Fargo & Co. 10%, 1/15/04.......... B 300 297,375
Protection One Alarm Monitoring, Inc.
7.375%, 8/15/05.......................... Ba 500 362,500
SC International Services, Inc. Series B
9.25%, 9/1/07............................ B 190 182,400
United Rentals, Inc. Series B 8.80%,
8/15/08.................................. B 500 442,500
United Rentals, Inc. Series B 9.50%,
6/1/08................................... B 250 230,000
Williams Scotsman, Inc. 9.875%, 6/1/07... B 50 46,250
-----------
1,803,275
-----------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--4.5%
Nextel Commmunications, Inc. 0%,
10/31/07(c).............................. B 700 486,500
Orion Network Systems 0%, 1/15/07(c)..... B 90 41,850
Sprint Spectrum L.P. 0%, 8/15/06(c)...... Baa 1,530 1,452,862
-----------
1,981,212
-----------
TELECOMMUNICATIONS (LONG DISTANCE)--1.2%
Global Crossing Holdings Ltd. 144A
9.125%, 11/15/06(b)...................... Ba 300 287,250
Qwest Communications International Corp.
0%, 10/15/07(c).......................... Ba 275 221,031
-----------
508,281
-----------
TEXTILES (APPAREL)--1.4%
Levi Strauss & Co. 144A 7%, 11/1/06(b)... Ba 1,000 600,000
WASTE MANAGEMENT--1.6%
Waste Management, Inc. 6.125%,
7/15/01(c)............................... Ba 750 716,987
</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>
WATER UTILITIES--2.3%
Marlin Water Trust 144A 7.09%,
12/15/01(b).............................. Baa $1,000 $ 986,250
- ------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $30,216,758) 28,380,048
- ------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED
SECURITIES--6.7%
DLJ Commercial Mortgage Corp. 98-CG1, A1A
6.11%, 12/10/07.......................... AAA(d) 891 850,660
GE Capital Mortgage Services, Inc. 94-21,
B1 6.50%, 8/25/09........................ A 28 26,318
GMAC Commercial Mortgage Securities, Inc.
98-C2, A2 6.42%, 8/15/08................. Aaa 1,178 1,113,637
Lehman ABS Corp. 94-C2, A 144A 8.145%,
11/2/07(b)............................... BBB(d) 66 62,895
Morgan Stanley Capital I, 98-WF1, A2
6.55%, 12/15/07.......................... AAA(d) 485 463,878
Saxon Asset Securities Trust 00-1, AF3
7.755%, 10/25/20......................... Aaa 425 427,554
- ------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $2,994,451) 2,944,942
- ------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--4.7%
CANADA--0.3%
Imax Corp. 7.875%, 12/1/05............... Ba 150 136,875
MEXICO--2.2%
Pemex Finance Ltd., 6.30%, 05/15/10...... Aaa 500 445,625
Pemex Finance Ltd., 9.15%, 11/15/18...... Baa 500 510,000
-----------
955,625
-----------
UNITED KINGDOM--2.2%
Abbey National PLC 7.35%, 10/29/49(c).... Aa 100 95,797
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
-------- ------ -----------
<S> <C> <C> <C>
UNITED KINGDOM--CONTINUED
Credit Suisse Group 144A 7.90%,
5/29/49(b)(c)............................ A $ 350 $ 344,750
Orange PLC 8%, 8/1/08.................... Ba 300 300,750
Terra Nova (U.K.) Holdings 7.20%,
8/15/07.................................. Baa 250 235,667
-----------
976,964
-----------
- ------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $2,166,648) 2,069,464
- ------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
------------------------
<S> <C> <C> <C>
PREFERRED STOCKS--3.1%
BANKS (MAJOR REGIONAL)--0.6%
First Republic Bank Series A Pfd. 144A
10.50%(b)............................... 3,000 272,250
TELECOMMUNICATIONS (LONG DISTANCE)--2.5%
IXC Communications, Inc. Series B Pfd.
PIK 12.50%.............................. 10,500 1,092,000
- -----------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $1,450,375) 1,364,250
- -----------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--0.4%
REITS--0.2%
Equity Office Properties Trust Series B
Cv. Pfd. 144A 5.25%(b).................. 2,000 77,750
SERVICES (COMMERCIAL & CONSUMER)--0.2%
United Rentals, Inc. Trust I Cv. Pfd.
144A 6.50%(b)........................... 2,000 66,250
- -----------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $200,000) 144,000
- -----------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--97.3%
(IDENTIFIED COST $44,868,481) 42,610,091
- -----------------------------------------------------------------------------------
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Bond Fund
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
----------- -----------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--4.7%
FEDERAL AGENCY SECURITIES--4.1%
FHLMC Discount Note 6.05%, 4/3/00....... $1,800 $ 1,800,000
<CAPTION>
PAR
VALUE
(000) VALUE
----------- -----------
<S> <C> <C> <C>
REPURCHASE AGREEMENT--0.6%
State Street Bank & Trust Co. repurchase
agreement, 4.25%, dated 3/31/00 due
4/3/00, repurchase price $258,091
collateralized by U.S. Treasury Note
7.50%, 2/15/05, market value $268,401... 258 258,000
- ----------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $2,057,395) 2,058,000
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--102.0%
(IDENTIFIED COST $46,925,876) 44,668,091(a)
Cash and receivables, less liabilities--(2.0%) (859,458)
-----------
NET ASSETS--100.0% $43,808,633
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $154,893 and gross
depreciation of $2,412,678 for federal income tax purposes. At March 31,
2000, the aggregate cost of securities for federal income tax purposes was
$46,925,876.
(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,
2000, these securities amounted to a value of $6,014,103 or 13.7% 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.
See Notes to Financial Statements
7
<PAGE>
Phoenix-Seneca Bond Fund
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $46,925,876) $ 44,668,091
Cash 292,673
Receivables
Interest 648,047
Investment securities sold 51,528
Fund shares sold 21,944
Deferred organization expenses 8,183
Prepaid expenses 449
--------------
Total assets 45,690,915
--------------
LIABILITIES
Payables
Investment securities purchased 1,768,818
Fund shares repurchased 10,000
Transfer agent fee 13,445
Distribution fee 11,976
Financial agent fee 7,156
Investment advisory fee 5,094
Trustees' fee 4,711
Accrued expenses 61,082
--------------
Total liabilities 1,882,282
--------------
NET ASSETS $ 43,808,633
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 46,045,697
Undistributed net investment income 78,156
Accumulated net realized loss (57,435)
Net unrealized depreciation (2,257,785)
--------------
NET ASSETS $ 43,808,633
==============
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $35,530,648) 3,566,012
Net asset value and offering price per share $9.96
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $4,183,681) 421,780
Net asset value per share $9.92
Offering price per share $9.92/(1-4.75%) $10.41
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,636,323) 266,908
Net asset value and offering price per share $9.88
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $1,457,981) 147,458
Net asset value and offering price per share $9.89
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 1,699,068
Dividends 37,250
-----------
Total investment income 1,736,318
-----------
EXPENSES
Investment advisory fee 103,463
Distribution fee, Class A 4,024
Distribution fee, Class B 11,978
Distribution fee, Class C 5,709
Financial agent fee 38,876
Transfer agent 35,047
Registration 20,556
Printing 12,542
Trustees 10,835
Professional 10,410
Custodian 9,330
Amortization of deferred organization expenses 5,344
Miscellaneous 13,000
-----------
Total expenses 281,114
Less expenses borne by investment adviser (70,883)
Custodian fees paid indirectly (2,280)
-----------
Net expenses 207,951
-----------
NET INVESTMENT INCOME 1,528,367
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized loss on securities (55,488)
Net change in unrealized appreciation (depreciation) on
investments (1,069,856)
-----------
NET LOSS ON INVESTMENTS (1,125,344)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 403,023
===========
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Bond Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
3/31/00 Year Ended
(Unaudited) 9/30/99
----------- -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 1,528,367 $ 2,136,536
Net realized gain (loss) (55,488) 286,567
Net change in unrealized appreciation
(depreciation) (1,069,856) (1,374,017)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 403,023 1,049,086
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class X (1,408,622) (1,783,876)
Net investment income, Class A (121,360) (62,282)
Net investment income, Class B (89,872) (41,217)
Net investment income, Class C (41,905) (19,340)
Net realized gains, Class X (236,295) (237,256)
Net realized gains, Class A (20,676) (6,691)
Net realized gains, Class B (18,368) (3,366)
Net realized gains, Class C (7,786) (4,337)
----------- -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (1,944,884) (2,158,365)
----------- -----------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (276,990
and 936,038 shares, respectively) 2,810,811 9,870,220
Net asset value of shares issued from
reinvestment of distributions
(159,851 and 188,148 shares,
respectively) 1,609,546 1,984,360
Cost of shares repurchased (239,540
and 232,292 shares, respectively) (2,438,785) (2,442,507)
----------- -----------
Total 1,981,572 9,412,073
----------- -----------
CLASS A
Proceeds from sales of shares (225,811
and 302,053 shares, respectively) 2,266,977 3,154,123
Net asset value of shares issued from
reinvestment of distributions
(12,055 and 5,398 shares,
respectively) 120,576 56,422
Cost of shares repurchased (81,561 and
74,593 shares, respectively) (822,448) (783,486)
----------- -----------
Total 1,565,105 2,427,059
----------- -----------
CLASS B
Proceeds from sales of shares (134,953
and 167,067 shares, respectively) 1,365,114 1,753,608
Net asset value of shares issued from
reinvestment of distributions
(3,652 and 1,944 shares,
respectively) 36,347 20,300
Cost of shares repurchased (26,909 and
35,679 shares, respectively) (269,679) (375,271)
----------- -----------
Total 1,131,782 1,398,637
----------- -----------
CLASS C
Proceeds from sales of shares (117,930
and 50,510 shares, respectively) 1,188,829 529,791
Net asset value of shares issued from
reinvestment of distributions
(4,307 and 1,056 shares,
respectively) 42,981 11,082
Cost of shares repurchased (18,015 and
49,464 shares, respectively) (181,650) (522,992)
----------- -----------
Total 1,050,160 17,881
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 5,728,619 13,255,650
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS 4,186,758 12,146,371
NET ASSETS
Beginning of period 39,621,875 27,475,504
----------- -----------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$78,156 AND 211,548, RESPECTIVELY] $43,808,633 $39,621,875
=========== ===========
</TABLE>
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 X
------------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED SEPTEMBER 30, INCEPTION
3/31/00 ---------------------------------------- 3/7/96 TO
(UNAUDITED) 1999 1998 1997 9/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.35 $ 10.68 $ 10.47 $ 10.09 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.37(1) 0.69(1) 0.56 0.62 0.31
Net realized and unrealized gain (loss) (0.28) (0.31) 0.40 0.47 0.08
------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.09 0.38 0.96 1.09 0.39
------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.41) (0.62) (0.57) (0.69) (0.30)
Dividends from net realized gains (0.07) (0.09) (0.18) (0.02) --
------- -------- -------- -------- -------
TOTAL DISTRIBUTIONS (0.48) (0.71) (0.75) (0.71) (0.30)
------- -------- -------- -------- -------
Change in net asset value (0.39) (0.33) 0.21 0.38 0.09
------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 9.96 $ 10.35 $ 10.68 $ 10.47 $ 10.09
======= ======== ======== ======== =======
Total return 1.13%(4) 3.51% 9.44% 11.26% 4.02%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $35,531 $34,853 $26,455 $8,922 $3,927
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.90%(3)(5)(7) 1.06%(5)(7) 1.66% 1.53%(5) 0.56%(3)(5)
Net investment income (loss) 7.42%(3) 6.60% 5.92% 6.31% 7.54%(3)
Portfolio turnover 40%(4) 95% 112% 99.68% 52.82%(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
3/31/00 ENDED 7/1/98 TO
(UNAUDITED) 9/30/99 9/30/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.29 $ 10.68 $ 10.79
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.37(1) 0.59 0.13
Net realized and unrealized gain (loss) (0.28) (0.33) (0.07)
------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.09 0.26 0.06
------- -------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.39) (0.56) (0.17)
Dividends from net realized gains (0.07) (0.09) --
------- -------- -------
TOTAL DISTRIBUTIONS (0.46) (0.65) (0.17)
------- -------- -------
Change in net asset value (0.37) (0.39) (0.11)
------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 9.92 $ 10.29 $ 10.68
======= ======== =======
Total return(2) 0.90%(4) 2.46% 0.53%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $4,184 $2,732 $348
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(6) 1.15%(3)(7) 1.88%(7) 2.45%(3)
Net investment income (loss) 7.43%(3) 5.80% 5.17%(3)
Portfolio turnover 40%(4) 95% 112%(4)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(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 1.05%,
1.13%, 3.41% and 9.31% for the periods ended March 31, 2000 and
September 30, 1999, 1997 and 1996, respectively.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.09%,
4.08% and 8.99% for the periods ended March 31, 2000 and September 30,
1999 and 1998, respectively.
(7) For the periods ended March 31, 2000 and September 30, 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 Bond Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
3/31/00 ENDED 7/1/98 TO
(UNAUDITED) 9/30/99 9/30/98
<S> <C> <C> <C>
Net asset value, beginning of period $10.27 $10.67 $10.79
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(1) 0.34 0.52 0.11
Net realized and unrealized gain (loss) (0.29) (0.33) (0.08)
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.19 0.03
------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.37) (0.50) (0.15)
Dividends from net realized gains (0.07) (0.09) --
------ ------ ------
TOTAL DISTRIBUTIONS (0.44) (0.59) (0.15)
------ ------ ------
Change in net asset value (0.39) (0.40) (0.12)
------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 9.88 $10.27 $10.67
====== ====== ======
Total return(2) 0.58%(4) 1.67% 0.28%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $2,636 $1,593 $234
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 1.90%(3)(7) 2.62%(7) 3.20%(3)
Net investment income (loss) 6.74%(3) 5.09% 4.42%(3)
Portfolio turnover 40%(4) 95% 112%(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
3/31/00 ENDED 7/1/98 TO
(UNAUDITED) 9/30/99 9/30/98
<S> <C> <C> <C>
Net asset value, beginning of period $10.27 $10.67 $10.79
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(1) 0.35 0.49 0.10
Net realized and unrealized gain (loss) (0.30) (0.30) (0.07)
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.19 0.03
------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.36) (0.50) (0.15)
Dividends from net realized gains (0.07) (0.09) --
------ ------ ------
TOTAL DISTRIBUTIONS (0.43) (0.59) (0.15)
------ ------ ------
Change in net asset value (0.38) (0.40) (0.12)
------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 9.89 $10.27 $10.67
====== ====== ======
Total return(2) 0.58%(4) 1.66% 0.28%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,458 $444 $439
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(6) 1.90%(3)(7) 2.91%(7) 3.20%(3)
Net investment income (loss) 6.82%(3) 4.71% 4.27%(3)
Portfolio turnover 40%(4) 95% 112%(4)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(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 3.13%,
5.67% and 15.79% for the periods ended March 31, 2000 and September 30,
1999 and 1998, respectively.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 4.41%,
9.50% and 11.22% for the periods ended March 31, 2000 and September 30,
1999 and 1998, respectively.
(7) For the periods ended March 31, 2000 and September 30, 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
11
<PAGE>
Phoenix-Seneca Growth Fund
INVESTMENTS AT MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--84.6%
ALUMINUM--2.4%
Alcoa, Inc.............................. 38,770 $ 2,723,592
BANKS (MAJOR REGIONAL)--2.2%
Mellon Financial Corp................... 81,600 2,407,200
BROADCASTING (TELEVISION, RADIO & CABLE)--3.3%
AMFM, Inc.(b)........................... 58,890 3,658,541
CHEMICALS--3.0%
Dow Chemical Co. (The).................. 29,130 3,320,820
COMMUNICATIONS EQUIPMENT--8.5%
General Motors Corp. Class H(b)......... 37,280 4,641,360
Metricom, Inc.(b)....................... 28,350 1,314,731
Motorola, Inc........................... 24,190 3,444,051
------------
9,400,142
------------
COMPUTERS (HARDWARE)--3.9%
Sun Microsystems, Inc.(b)............... 45,920 4,302,847
COMPUTERS (NETWORKING)--3.6%
Cisco Systems, Inc.(b).................. 51,360 3,970,770
COMPUTERS (SOFTWARE & SERVICES)--4.8%
Microsoft Corp.(b)...................... 49,700 5,280,625
ELECTRICAL EQUIPMENT--4.1%
General Electric Co..................... 29,280 4,543,890
ELECTRONICS (SEMICONDUCTORS)--4.0%
Intel Corp.............................. 34,130 4,503,027
EQUIPMENT (SEMICONDUCTOR)--6.9%
Applied Materials, Inc.(b).............. 38,140 3,594,695
KLA-Tencor Corp.(b)..................... 48,610 4,095,392
------------
7,690,087
------------
FINANCIAL (DIVERSIFIED)--8.5%
Citigroup, Inc.......................... 83,290 4,940,138
Morgan Stanley Dean Witter & Co......... 55,740 4,546,294
------------
9,486,432
------------
HEALTH CARE (DIVERSIFIED)--4.6%
Bristol-Myers Squibb Co................. 49,730 2,871,908
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
HEALTH CARE (DIVERSIFIED)--CONTINUED
Johnson & Johnson....................... 32,620 $ 2,285,439
------------
5,157,347
------------
HEALTH CARE (DRUGS--MAJOR PHARMACEUTICALS)--2.9%
Merck & Co., Inc........................ 51,510 3,200,059
HOUSEHOLD PRODUCTS (NON-DURABLE)--1.9%
Clorox Co. (The)........................ 64,640 2,100,800
MANUFACTURING (DIVERSIFIED)--3.9%
Corning, Inc............................ 22,380 4,341,720
OIL & GAS (DRILLING & EQUIPMENT)--4.3%
Halliburton Co.......................... 116,040 4,757,640
PAPER & FOREST PRODUCTS--1.8%
Champion International Corp............. 37,140 1,977,705
RETAIL (BUILDING SUPPLIES)--3.9%
Lowe's Companies, Inc................... 73,890 4,313,329
RETAIL (GENERAL MERCHANDISE)--2.8%
Wal-Mart Stores, Inc.................... 56,750 3,149,625
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--3.3%
Nextel Communications, Inc. Class
A(b).................................... 24,430 3,621,748
- --------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $73,395,817) 93,907,946
- --------------------------------------------------------------------
FOREIGN COMMON STOCKS--10.4%
COMMUNICATIONS EQUIPMENT--6.7%
Nokia Oyj Sponsored ADR (Finland)....... 17,290 3,756,252
Nortel Networks Corp. (Canada).......... 29,570 3,725,820
------------
7,482,072
------------
ELECTRONICS (SEMICONDUCTORS)--3.7%
STMicroelectronics N.V. (Netherlands)... 21,870 4,093,791
- --------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $5,117,185) 11,575,863
- --------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--95.0%
(IDENTIFIED COST $78,513,002) 105,483,809
- --------------------------------------------------------------------
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Growth Fund
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
-------- ------------
SHORT-TERM OBLIGATIONS--5.7%
<S> <C> <C> <C>
REPURCHASE AGREEMENT--5.7%
State Street Bank & Trust Co. repurchase
agreement, 4.25%, dated 3/31/00 due
4/3/00, repurchase price $6,261,217
collateralized by U.S. Treasury Bond
8.875%, 2/15/19, market value
$6,389,142.............................. $ 6,259 $ 6,259,000
- --------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $6,259,000) 6,259,000
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--100.7%
(IDENTIFIED COST $84,772,002) 111,742,809(a)
Cash and receivables, less liabilities--(0.7%) (749,859)
------------
NET ASSETS--100.0% $110,992,950
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $32,151,911 and gross
depreciation of $5,277,892 for federal income tax purposes. At March 31,
2000, the aggregate cost of securities for federal income tax purposes was
$84,868,790.
(b) Non-income producing.
See Notes to Financial Statements
13
<PAGE>
Phoenix-Seneca Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $84,772,002) $111,742,809
Cash 480
Receivables
Fund shares sold 642,197
Dividends and interest 74,959
Deferred organization expenses 8,183
Prepaid expenses 1,320
------------
Total assets 112,469,948
------------
LIABILITIES
Payables
Investment securities purchased 1,022,164
Fund shares repurchased 207,207
Distribution fee 67,750
Investment advisory fee 63,747
Transfer agent fee 19,419
Financial agent fee 7,150
Trustees' fee 4,711
Accrued expenses 84,850
------------
Total liabilities 1,476,998
------------
NET ASSETS $110,992,950
============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 78,959,367
Undistributed net investment loss (166,190)
Accumulated net realized gain 5,228,966
Net unrealized appreciation 26,970,807
------------
NET ASSETS $110,992,950
============
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $42,944,854) 1,816,926
Net asset value and offering price per share $23.64
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $48,278,362) 2,087,018
Net asset value per share $23.13
Offering price per share $23.13/(1-4.75%) $24.28
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $10,431,118) 461,021
Net asset value and offering price per share $22.63
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $9,338,616) 413,563
Net asset value and offering price per share $22.58
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 371,890
Interest 87,316
Foreign taxes witheld (2,427)
--------------
Total investment income 456,779
--------------
EXPENSES
Investment advisory fee 317,559
Distribution fee, Class A 47,317
Distribution fee, Class B 36,077
Distribution fee, Class C 29,247
Financial agent fee 56,915
Transfer agent 45,075
Registration 23,024
Printing 22,421
Trustees 11,885
Professional 8,855
Custodian 6,096
Amortization of deferred organization expenses 5,344
Miscellaneous 13,154
--------------
Total expenses 622,969
--------------
NET INVESTMENT LOSS (166,190)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 7,668,326
Net change in unrealized appreciation (depreciation) on
investments 16,164,592
--------------
NET GAIN ON INVESTMENTS 23,832,918
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 23,666,728
==============
</TABLE>
14 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
3/31/00 Year Ended
(Unaudited) 9/30/99
------------ -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (166,190) $ (251,366)
Net realized gain (loss) 7,668,326 7,420,446
Net change in unrealized appreciation
(depreciation) 16,164,592 8,897,166
------------ -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 23,666,728 16,066,246
------------ -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class X (4,159,508) (2,678,808)
Net realized gains, Class A (3,991,659) (2,257,410)
Net realized gains, Class B (733,816) (125,950)
Net realized gains, Class C (651,429) (32,675)
------------ -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (9,536,412) (5,094,843)
------------ -----------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (81,151
and 191,178 shares, respectively) 1,849,900 3,657,324
Net asset value of shares issued from
reinvestment of distributions
(189,191 and 152,656 shares,
respectively) 4,124,386 2,665,381
Cost of shares repurchased (244,953
and 417,927 shares, respectively) (5,308,182) (7,626,080)
------------ -----------
Total 666,104 (1,303,375)
------------ -----------
CLASS A
Proceeds from sales of shares (738,710
and 713,052 shares, respectively) 16,386,777 12,978,542
Net asset value of shares issued from
reinvestment of distributions
(183,997 and 130,999 shares,
respectively) 3,928,347 2,250,565
Cost of shares repurchased (419,999
and 329,410 shares, respectively) (8,934,125) (5,879,689)
------------ -----------
Total 11,380,999 9,349,418
------------ -----------
CLASS B
Proceeds from sales of shares (232,294
and 209,861 shares, respectively) 5,061,461 3,860,313
Net asset value of shares issued from
reinvestment of distributions
(29,013 and 5,386 shares,
respectively) 607,535 92,053
Cost of shares repurchased (28,183 and
19,389 shares, respectively) (612,860) (368,688)
------------ -----------
Total 5,056,136 3,583,678
------------ -----------
CLASS C
Proceeds from sales of shares (310,354
and 88,996 shares, respectively) 6,688,778 1,633,483
Net asset value of shares issued from
reinvestment of distributions
(27,094 and 1,890 shares,
respectively) 566,265 32,392
Cost of shares repurchased (19,107 and
3,466 shares, respectively) (418,978) (65,089)
------------ -----------
Total 6,836,065 1,600,786
------------ -----------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 23,939,304 13,230,507
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS 38,069,620 24,201,910
NET ASSETS
Beginning of period 72,923,330 48,721,420
------------ -----------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($166,190) AND $0, RESPECTIVELY] $110,992,950 $72,923,330
============ ===========
</TABLE>
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 X
--------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED SEPTEMBER 30, INCEPTION
3/31/00 ------------------------------------ 3/8/96 TO
(UNAUDITED) 1999 1998 1997 9/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.92 $ 16.46 $ 16.43 $ 13.74 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.01)(1) (0.04)(1) 0.00(1) 0.03 0.03
Net realized and unrealized gain (loss) 6.27 5.11 1.28 3.50 3.71
------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS 6.26 5.07 1.28 3.53 3.74
------- -------- -------- -------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- (0.02) (0.07) --
Dividends from net realized gains (2.54) (1.61) (1.23) (0.77) --
------- -------- -------- -------- -------
TOTAL DISTRIBUTIONS (2.54) (1.61) (1.25) (0.84) --
------- -------- -------- -------- -------
Change in net asset value 3.72 3.46 0.03 2.69 3.74
------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 23.64 $ 19.92 $ 16.46 $ 16.43 $ 13.74
======= ======== ======== ======== =======
Total return 32.49%(4) 32.19% 8.48% 27.27% 37.40%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $42,945 $35,695 $30,713 $34,093 $12,920
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.06%(3) 1.16% 1.14% 1.52%(5) 0.81%(3)(5)
Net investment income (loss) (0.06)%(3) (0.20)% 0.02% 0.31% 0.76%(3)
Portfolio turnover 53%(4) 169% 166% 145.69% 87.66%(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED SEPTEMBER 30, INCEPTION
3/31/00 ------------------------------------ 3/8/96 TO
(UNAUDITED) 1999 1998 1997 9/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.57 $ 16.23 $ 16.28 $ 13.63 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.03)(1) (0.09)(1) (0.06)(1) (0.08) --
Net realized and unrealized gain 6.13 5.04 1.24 3.50 3.63
------- -------- -------- -------- ------
TOTAL FROM INVESTMENT OPERATIONS 6.10 4.95 1.18 3.42 3.63
------- -------- -------- -------- ------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- -- -- --
Dividends from net realized gains (2.54) (1.61) (1.23) (0.77) --
------- -------- -------- -------- ------
TOTAL DISTRIBUTIONS (2.54) (1.61) (1.23) (0.77) --
------- -------- -------- -------- ------
Change in net asset value 3.56 3.34 (0.05) 2.65 3.63
------- -------- -------- -------- ------
NET ASSET VALUE, END OF PERIOD $ 23.13 $ 19.57 $ 16.23 $ 16.28 $13.63
======= ======== ======== ======== ======
Total return(2) 32.24%(4) 31.89% 7.93% 26.51% 36.30%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $48,278 $31,001 $17,364 $6,013 $466
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.31%(3) 1.44% 1.55% 2.48%(6) 1.46%(3)(6)
Net investment income (loss) (0.30)%(3) (0.49)% (0.36)% (0.62)% 0.16%(3)
Portfolio turnover 53%(4) 169% 166% 145.69% 87.66%(4)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(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 1.52% and
3.49% for the periods ended September 30, 1997 and 1996, respectively.
(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 periods ended September 30, 1997 and 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
----------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
3/31/00 ENDED 7/1/98 TO
(UNAUDITED) 9/30/99 9/30/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 19.28 $16.19 $18.71
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(1) (0.15) (0.31) (0.04)
Net realized and unrealized gain (loss) 6.04 5.01 (2.48)
------- ------ ------
TOTAL FROM INVESTMENT OPERATIONS 5.89 4.70 (2.52)
------- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- --
Dividends from net realized gains (2.54) (1.61) --
------- ------ ------
TOTAL DISTRIBUTIONS (2.54) (1.61) --
------- ------ ------
Change in net asset value 3.35 3.09 (2.52)
------- ------ ------
NET ASSET VALUE, END OF PERIOD $ 22.63 $19.28 $16.19
======= ====== ======
Total return(2) 31.60%(4) 30.31% (13.47)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $10,431 $4,395 $519
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.44%(3) 2.60%(5) 2.60%(3)(5)
Net investment income (loss) (1.42)%(3) (1.66)% (1.12)%(3)
Portfolio turnover 53%(4) 169% 166%(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
3/31/00 ENDED 7/1/98 TO
(UNAUDITED) 9/30/99 9/30/98
<S> <C> <C> <C>
Net asset value, beginning of period $19.25 $16.18 $18.71
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(1) (0.17) (0.32) (0.06)
Net realized and unrealized gain (loss) 6.04 5.00 (2.47)
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 5.87 4.68 (2.53)
------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- --
Dividends from net realized gains (2.54) (1.61) --
------ ------ ------
TOTAL DISTRIBUTIONS (2.54) (1.61) --
------ ------ ------
Change in net asset value 3.33 3.07 (2.53)
------ ------ ------
NET ASSET VALUE, END OF PERIOD $22.58 $19.25 $16.18
====== ====== ======
Total return(2) 31.54%(4) 30.20% (13.52)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $9,339 $1,833 $126
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.55%(3) 2.60%(6) 2.60%(3)(6)
Net investment income (loss) (1.55)%(3) (1.66)% (1.39)%(3)
Portfolio turnover 53%(4) 169% 166%(4)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(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 3.46% and
12.48% for the periods ended September 30, 1999 and 1998, respectively.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 5.67% and
20.24% for the periods ended September 30, 1999 and 1998, respectively.
See Notes to Financial Statements
17
<PAGE>
Phoenix-Seneca Mid-Cap 'EDGE'-SM- Fund
INVESTMENTS AT MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
COMMON STOCKS--87.6%
BANKS (REGIONAL)--0.2%
UnionBanCal Corp........................ 4,670 $ 128,717
BIOTECHNOLOGY--3.7%
MedImmune, Inc. (b)..................... 12,710 2,213,129
BROADCASTING (TELEVISION, RADIO & CABLE)--4.3%
EchoStar Communications Corp.(b)........ 33,060 2,611,740
COMMUNICATIONS EQUIPMENT--13.3%
Aspect Communications Corp.(b).......... 38,240 1,417,270
Comverse Technology, Inc.(b)............ 6,645 1,255,905
Metricom, Inc.(b)....................... 13,630 632,091
Scientific-Atlanta, Inc................. 39,700 2,518,469
Spectrasite Holdings, Inc.(b)........... 51,120 1,447,335
Tut Systems, Inc.(b).................... 13,160 783,842
-----------
8,054,912
-----------
COMPUTERS (HARDWARE)--9.8%
Alteon Websystems, Inc.(b).............. 23,930 1,962,260
Copper Mountain Networks, Inc.(b)....... 26,000 2,130,375
Extreme Networks, Inc.(b)............... 23,330 1,843,070
-----------
5,935,705
-----------
COMPUTERS (SOFTWARE & SERVICES)--10.7%
Liberate Technologies, Inc.(b).......... 19,350 1,214,212
Mercury Interactive Corp.(b)............ 18,520 1,467,710
Network Associates, Inc.(b)............. 49,810 1,606,372
Vignette Corp.(b)....................... 9,750 1,562,437
webMethods, Inc.(b)..................... 2,620 632,403
-----------
6,483,134
-----------
ELECTRICAL EQUIPMENT--3.9%
SPX Corp.(b)............................ 20,920 2,383,573
ELECTRONICS (INSTRUMENTATION)--5.1%
Credence Systems Corp.(b)............... 13,310 1,665,414
PerkinElmer, Inc........................ 21,140 1,405,810
-----------
3,071,224
-----------
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
ELECTRONICS (SEMICONDUCTORS)--10.0%
Fairchild Semiconductor Corp. Class
A(b).................................... 55,410 $ 2,022,465
International Rectifier Corp.(b)........ 34,650 1,321,031
Intersil Holding Corp.(b)............... 5,550 286,866
LSI Logic Corp.(b)...................... 27,660 2,008,808
SDL, Inc.(b)............................ 1,840 391,690
-----------
6,030,860
-----------
EQUIPMENT (SEMICONDUCTOR)--3.0%
KLA-Tencor Corp.(b)..................... 21,900 1,845,075
HEALTH CARE (HOSPITAL MANAGEMENT)--2.4%
Tenet Healthcare Corp................... 64,090 1,474,070
INSURANCE (PROPERTY-CASUALTY)--3.3%
MGIC Investment Corp.................... 45,600 1,989,300
OIL & GAS (DRILLING & EQUIPMENT)--8.5%
Nabors Industries, Inc.(b).............. 58,590 2,274,024
Weatherford International, Inc.(b)...... 48,480 2,857,290
-----------
5,131,314
-----------
PAPER & FOREST PRODUCTS--3.8%
Mead Corp. (The)........................ 38,480 1,344,395
Smurfit-Stone Container Corp.(b)........ 54,980 931,224
-----------
2,275,619
-----------
RETAIL (HOME SHOPPING)--0.2%
HomeGrocer.com(b)....................... 9,040 93,790
SERVICES (COMMERCIAL & CONSUMER)--5.1%
Convergys Corp.(b)...................... 36,490 1,409,426
Crown Castle International Corp.(b)..... 44,300 1,677,863
-----------
3,087,289
-----------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.3%
Nextel Partners, Inc. Class A(b)........ 6,330 183,570
- -------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $44,669,273) 52,993,021
- -------------------------------------------------------------------
</TABLE>
18 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Mid-Cap 'EDGE'-SM- Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
FOREIGN COMMON STOCKS--4.3%
COMMUNICATIONS EQUIPMENT--2.1%
NDS Group PLC Sponsored ADR (United
Kingdom)(b)............................. 17,420 $ 1,228,110
ELECTRONICS (SEMICONDUCTORS)--2.2%
Chartered Semiconductor Manufacturing
Ltd. ADR (Singapore)(b)................. 14,270 1,344,947
- -------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $1,678,404) 2,573,057
- -------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--91.9%
(IDENTIFIED COST $46,347,677) 55,566,078
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
------ -----------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--12.2%
REPURCHASE AGREEMENT--12.2%
State Street Bank & Trust Co. repurchase
agreement, 4.25%, dated 3/31/00 due
4/3/00, repurchase price $7,416,626
collateralized by U.S. Treasury Bond
8.875%, 2/15/19, market value
$7,568,476.............................. $7,414 $ 7,414,000
- -----------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $7,414,000) 7,414,000
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--104.1%
(IDENTIFIED COST $53,761,677) 62,980,078(a)
Cash and receivables, less liabilities--(4.1%) (2,462,301)
-----------
NET ASSETS--100.0% $60,517,777
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $13,285,051 and gross
depreciation of $4,066,650 for federal income tax purposes. At March 31,
2000, the aggregate cost of securities for federal income tax purposes was
$53,761,677.
(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, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $53,761,677) $62,980,078
Cash 99
Receivables
Fund shares sold 469,500
Investment securities sold 103,436
Dividends and interest 9,973
Deferred organization expenses 8,183
Prepaid expenses 407
-----------
Total assets 63,571,676
-----------
LIABILITIES
Payables
Investment securities purchased 2,861,860
Fund shares repurchased 26,569
Distribution fee 38,646
Investment advisory fee 27,487
Transfer agent fee 17,458
Financial agent fee 6,519
Trustees' fee 4,711
Accrued expenses 70,649
-----------
Total liabilities 3,053,899
-----------
NET ASSETS $60,517,777
===========
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $39,922,368
Undistributed net investment loss (218,411)
Accumulated net realized gain 11,595,419
Net unrealized appreciation 9,218,401
-----------
NET ASSETS $60,517,777
===========
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $19,033,828) 653,036
Net asset value and offering price per share $29.15
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $27,242,893) 946,792
Net asset value per share $28.77
Offering price per share $28.77/(1-4.75%) $30.20
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $6,986,132) 247,163
Net asset value and offering price per share $28.27
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $7,254,924) 256,751
Net asset value and offering price per share $28.26
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 71,041
Dividends 29,285
-----------
Total investment income 100,326
-----------
EXPENSES
Investment advisory fee 146,509
Distribution fee, Class A 19,069
Distribution fee, Class B 17,579
Distribution fee, Class C 16,568
Financial agent fee 35,733
Transfer agent 43,873
Registration 22,447
Printing 17,052
Trustees 9,797
Professional 8,535
Amortization of deferred organization expenses 5,344
Custodian 5,509
Miscellaneous 8,129
-----------
Total expenses 356,144
Less expenses borne by investment adviser (37,407)
-----------
Net expenses 318,737
-----------
NET INVESTMENT LOSS (218,411)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 12,118,198
Net change in unrealized appreciation (depreciation) on
investments 7,027,651
-----------
NET GAIN ON INVESTMENTS 19,145,849
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $18,927,438
===========
</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
3/31/00 Year Ended
(Unaudited) 9/30/99
----------- -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (218,411) $ (275,816)
Net realized gain (loss) 12,118,198 2,299,388
Net change in unrealized appreciation
(depreciation) 7,027,651 2,415,950
----------- -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 18,927,438 4,439,522
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class X (1,167,782) (355,856)
Net realized gains, Class A (936,282) (166,088)
Net realized gains, Class B (259,773) (11,063)
Net realized gains, Class C (178,774) (9,446)
----------- -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (2,542,611) (542,453)
----------- -----------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (64,021
and 143,563 shares, respectively) 1,815,929 2,478,919
Net asset value of shares issued from
reinvestment of distributions
(53,135 and 21,703 shares,
respectively) 1,166,309 354,621
Cost of shares repurchased (62,483 and
214,035 shares, respectively) (1,360,397) (3,757,537)
----------- -----------
Total 1,621,841 (923,997)
----------- -----------
CLASS A
Proceeds from sales of shares (622,880
and 228,931 shares, respectively) 15,180,181 3,836,768
Net asset value of shares issued from
reinvestment of distributions
(38,207 and 10,097 shares,
respectively) 828,330 163,976
Cost of shares repurchased (81,117 and
138,776 shares, respectively) (2,055,859) (2,331,488)
----------- -----------
Total 13,952,652 1,669,256
----------- -----------
CLASS B
Proceeds from sales of shares (148,373
and 86,897 shares, respectively) 3,850,698 1,460,274
Net asset value of shares issued from
reinvestment of distributions
(7,356 and 684 shares, respectively) 157,061 11,062
Cost of shares repurchased (4,846 and
1,900 shares, respectively) (124,722) (31,603)
----------- -----------
Total 3,883,037 1,439,733
----------- -----------
CLASS C
Proceeds from sales of shares (200,644
and 49,078 shares, respectively) 4,926,287 821,159
Net asset value of shares issued from
reinvestment of distributions
(6,695 and 402 shares, respectively) 142,940 6,510
Cost of shares repurchased (6,615 and
991 shares, respectively) (141,491) (16,970)
----------- -----------
Total 4,927,736 810,699
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 24,385,266 2,995,691
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS 40,770,093 6,892,760
NET ASSETS
Beginning of period 19,747,684 12,854,924
----------- -----------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($218,411) AND $0, RESPECTIVELY] $60,517,777 $19,747,684
=========== ===========
</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 FROM
ENDED YEAR ENDED SEPTEMBER 30, INCEPTION
3/31/00 ------------------------------------ 3/8/96 TO
(UNAUDITED) 1999 1998 1997 9/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $17.78 $ 13.81 $ 16.47 $ 14.97 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.11)(1) (0.21)(1) (0.23)(1) (0.17) 0.01
Net realized and unrealized gain (loss) 13.54 4.72 (0.58) 1.84 4.96
------ -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 13.43 4.51 (0.81) 1.67 4.97
------ -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- -- (0.07) --
Dividends from net realized gains (2.06) (0.54) (1.85) (0.10) --
------ -------- -------- -------- --------
TOTAL DISTRIBUTIONS (2.06) (0.54) (1.85) (0.17) --
------ -------- -------- -------- --------
Change in net asset value 11.37 3.97 (2.66) 1.50 4.97
------ -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $29.15 $ 17.78 $ 13.81 $ 16.47 $ 14.97
====== ======== ======== ======== ========
Total return 79.32%(4) 33.02% (4.22)% 11.39% 49.70%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $19,034 $10,640 $8,940 $9,390 $7,428
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.43%(3)(5) 1.96% 2.10%(5) 1.74%(5) 0.90%(3)(5)
Net investment income (loss) (0.89)%(3) (1.27)% (1.49)% (0.97)% 0.27%(3)
Portfolio turnover 95%(4) 192% 206% 283.60% 72.34%(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED SEPTEMBER 30, INCEPTION
3/31/00 ------------------------------------ 3/8/96 TO
(UNAUDITED) 1999 1998 1997 9/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $17.60 $ 13.75 $ 16.49 $ 14.94 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.13)(1) (0.31)(1) (0.30)(1) (0.25) (0.01)
Net realized and unrealized gain (loss) 13.36 4.70 (0.59) 1.90 4.95
------ -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 13.23 4.39 (0.89) 1.65 4.94
------ -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- -- -- --
Dividends from net realized gains (2.06) (0.54) (1.85) (0.10) --
------ -------- -------- -------- --------
TOTAL DISTRIBUTIONS (2.06) (0.54) (1.85) (0.10) --
------ -------- -------- -------- --------
Change in net asset value 11.17 3.85 (2.74) 1.55 4.94
------ -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $28.77 $ 17.60 $ 13.75 $ 16.49 $ 14.94
====== ======== ======== ======== ========
Total return(2) 78.98%(4) 32.27% (4.74)% 11.25% 49.30%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $27,243 $6,457 $3,666 $2,419 $1,355
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.63%(3)(6) 2.51% 2.70%(6) 2.37%(6) 1.55%(3)(6)
Net investment income (loss) (1.08)%(3) (1.81)% (1.95)% (1.60)% (0.46)%(3)
Portfolio turnover 95%(4) 192% 206% 283.60% 72.34%(4)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(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 1.54%,
2.38%, 2.77% and 5.73% for the periods ended March 31, 2000 and
September 30, 1998, 1997 and 1996, respectively.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.74%,
2.74%, 4.32% and 9.73% for the periods ended March 31, 2000 and
September 30, 1998, 1997 and 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 B
----------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
3/31/00 ENDED 7/1/98 TO
(UNAUDITED) 9/30/99 9/30/98
<S> <C> <C> <C>
Net asset value, beginning of period $17.41 $13.73 $17.15
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(1) (0.25) (0.47) (0.09)
Net realized and unrealized gain (loss) 13.17 4.69 (3.33)
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 12.92 4.22 (3.42)
------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- --
Dividends from net realized gains (2.06) (0.54) --
------ ------ ------
TOTAL DISTRIBUTIONS (2.06) (0.54) --
------ ------ ------
Change in net asset value 10.86 3.68 (3.42)
------ ------ ------
NET ASSET VALUE, END OF PERIOD $28.27 $17.41 $13.73
====== ====== ======
Total return(2) 78.03%(4) 31.05% (19.94)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $6,986 $1,676 $145
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 2.69%(3) 3.45% 3.45%(3)
Net investment income (loss) (2.14)%(3) (2.78)% (2.45)%(3)
Portfolio turnover 95%(4) 192% 206%(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
3/31/00 ENDED 7/1/98 TO
(UNAUDITED) 9/30/99 9/30/98
<S> <C> <C> <C>
Net asset value, beginning of period $17.40 $13.72 $17.15
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)(1) (0.24) (0.47) (0.09)
Net realized and unrealized gain (loss) 13.16 4.69 (3.34)
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 12.92 4.22 (3.43)
------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income -- -- --
Dividends from net realized gains (2.06) (0.54) --
------ ------ ------
TOTAL DISTRIBUTIONS (2.06) (0.54) --
------ ------ ------
Change in net asset value 10.86 3.68 (3.43)
------ ------ ------
NET ASSET VALUE, END OF PERIOD $28.26 $17.40 $13.72
====== ====== ======
Total return(2) 78.07%(4) 31.07% (20.00)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $7,255 $975 $103
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(6) 2.58%(3) 3.45% 3.45%(3)
Net investment income (loss) (2.03)%(3) (2.78)% (2.44)%(3)
Portfolio turnover 95%(4) 192% 206%(4)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(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 3.22%,
6.33% and 20.80% for the periods ended March 31, 2000 and September 30,
1999 and 1998, respectively.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 3.26%,
9.03% and 21.14% for the periods ended March 31, 2000 and September 30,
1999 and 1998, respectively.
See Notes to Financial Statements
23
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
INVESTMENTS AT MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
COMMON STOCKS--84.6%
REAL ESTATE INVESTMENT TRUSTS--67.9%
DIVERSIFIED--4.9%
Pacific Gulf Properties, Inc............ 41,290 $ 810,316
INDUSTRIAL/OFFICE--21.5%
INDUSTRIAL--3.3%
First Industrial Realty Trust, Inc...... 20,000 545,000
MORTGAGE BACKED--3.0%
Northstar Financial Corp.(b)(c)......... 35,000 494,375
OFFICE--15.2%
Equity Office Properties Trust.......... 45,100 1,133,137
Mack-Cali Realty Corp................... 27,600 703,800
Spieker Properties, Inc................. 15,000 667,500
-----------
2,504,437
-----------
- -------------------------------------------------------------------
TOTAL INDUSTRIAL/ OFFICE 3,543,812
- -------------------------------------------------------------------
RESIDENTIAL--28.5%
APARTMENTS--20.2%
Archstone Communities Trust............. 32,996 657,858
Avalonbay Communities, Inc.............. 20,750 759,969
Equity Residential Properties Trust..... 28,200 1,133,287
Essex Property Trust, Inc............... 21,750 783,000
-----------
3,334,114
-----------
MANUFACTURED HOMES--8.3%
Chateau Communities, Inc................ 23,700 604,350
Manufactured Home Communities, Inc...... 33,200 767,750
-----------
1,372,100
-----------
- -------------------------------------------------------------------
TOTAL RESIDENTIAL 4,706,214
- -------------------------------------------------------------------
RETAIL--13.0%
REGIONAL MALLS--13.0%
Macerich Co. (The)...................... 38,400 792,000
Simon Property Group, Inc............... 20,415 489,960
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
REGIONAL MALLS--CONTINUED
Urban Shopping Centers, Inc............. 30,000 $ 871,875
-----------
2,153,835
-----------
- -------------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUSTS
(IDENTIFIED COST $11,988,293) 11,214,177
- -------------------------------------------------------------------
REAL ESTATE OPERATING COMPANIES--16.7%
CONSUMER FINANCE--5.1%
Countrywide Credit Industries, Inc...... 31,100 847,475
FINANCIAL (DIVERSIFIED)--4.6%
Freddie Mac............................. 17,000 751,188
INSURANCE (PROPERTY--CASUALTY)--7.0%
Fidelity National Financial, Inc........ 5,600 77,350
Radian Group, Inc....................... 22,500 1,071,563
-----------
1,148,913
-----------
- -------------------------------------------------------------------
TOTAL REAL ESTATE OPERATING COMPANIES
(IDENTIFIED COST $2,742,445) 2,747,576
- -------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $14,730,738) 13,961,753
- -------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--7.6%
REAL ESTATE INVESTMENT TRUSTS--7.6%
DIVERSIFIED--4.1%
Glenborough Realty Trust, Inc. Series A
Cv. Pfd. 7.75%.......................... 45,650 679,044
INDUSTRIAL/OFFICE--3.5%
OFFICE--3.5%
Reckson Associates Realty Corp. Series A
Cv. Pfd. 7.625%......................... 30,000 568,125
- -------------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUSTS
(IDENTIFIED COST $1,660,865) 1,247,169
- -------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $1,660,865) 1,247,169
- -------------------------------------------------------------------
</TABLE>
24 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
-------- -----------
SHORT-TERM OBLIGATIONS--7.6%
<S> <C> <C> <C>
REPURCHASE AGREEMENT--7.6%
State Street Bank & Trust Co. repurchase
agreement, 4.25%, dated 3/31/00 due
4/3/00, repurchase price $1,254,444
collateralized by U.S. Treasury Bond
8.875%, 2/15/19, market value
$1,283,012.............................. $ 1,254 $ 1,254,000
- -------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $1,254,000) 1,254,000
- -------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.8%
(IDENTIFIED COST $17,645,603) 16,462,922(a)
Cash and receivables, less liabilities--0.2% 39,977
-----------
NET ASSETS--100.0% $16,502,899
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $575,562 and gross
depreciation of $1,886,963 for federal income tax purposes. At March 31,
2000, the aggregate cost of securities for federal income tax purposes was
$17,774,323.
(b) Non-income producing.
(c) Private placement. Security valued at fair value as determined in good
faith by or under the direction of the Trustees.
See Notes to Financial Statements
25
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $17,645,603) $16,462,922
Receivables 480
Dividends and interest 153,339
Fund shares sold 6,215
Deferred organization expenses 8,183
Prepaid expenses 633
-----------
Total assets 16,631,772
-----------
LIABILITIES
Payables
Investment securities purchased 41,468
Transfer agent fee 13,148
Investment advisory fee 9,645
Financial agent fee 5,068
Trustees' fee 4,711
Distribution fee 1,371
Accrued expenses 53,462
-----------
Total liabilities 128,873
-----------
NET ASSETS $16,502,899
===========
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $22,131,188
Undistributed net investment income 51,043
Accumulated net realized loss (4,496,651)
Net unrealized depreciation (1,182,681)
-----------
NET ASSETS $16,502,899
===========
CLASS X
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $15,240,729) 1,576,421
Net asset value and offering price per share $9.67
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $890,995) 93,633
Net asset value per share $9.52
Offering price per share $9.52/(1-4.75%) $9.99
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $165,736) 17,414
Net asset value and offering price per share $9.52
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $205,439) 21,588
Net asset value and offering price per share $9.52
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 585,836
Interest 16,938
-----------
Total investment income 602,774
-----------
EXPENSES
Investment advisory fee 70,862
Distribution fee, Class A 1,151
Distribution fee, Class B 766
Distribution fee, Class C 981
Financial agent fee 27,542
Transfer agent 36,624
Registration 16,134
Professional 9,277
Trustees 8,798
Printing 8,147
Amortization of deferred organization expenses 5,344
Custodian 3,343
Miscellaneous 7,636
-----------
Total expenses 196,605
Less expenses borne by investment adviser (32,523)
-----------
Net expenses 164,082
-----------
NET INVESTMENT INCOME 438,692
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (3,832,921)
Net change in unrealized appreciation (depreciation) on
investments 3,908,486
-----------
NET GAIN ON INVESTMENTS 75,565
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 514,257
===========
</TABLE>
26 See Notes to Financial Statements
<PAGE>
Phoenix-Seneca Real Estate Securities Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
3/31/00 Year Ended
(Unaudited) 9/30/99
----------- --------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 438,692 $ 940,282
Net realized gain (loss) (3,832,921) (655,001)
Net change in unrealized appreciation
(depreciation) 3,908,486 (1,715,439)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 514,257 (1,430,158)
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class X (569,997) (837,674)
Net investment income, Class A (31,652) (38,060)
Net investment income, Class B (3,448) (4,962)
Net investment income, Class C (5,740) (3,646)
Net realized gains, Class X -- (499,713)
Net realized gains, Class A -- (30,097)
Net realized gains, Class B -- (4,310)
Net realized gains, Class C -- (2,368)
----------- -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (610,837) (1,420,830)
----------- -----------
FROM SHARE TRANSACTIONS
CLASS X
Proceeds from sales of shares (35,328
and 210,923 shares, respectively) 332,961 2,123,311
Net asset value of shares issued from
reinvestment of distributions
(60,871 and 132,293 shares,
respectively) 558,745 1,320,535
Cost of shares repurchased (309,745
and 515,264 shares, respectively) (2,908,640) (5,249,668)
----------- -----------
Total (2,016,934) (1,805,822)
----------- -----------
CLASS A
Proceeds from sales of shares (20,786
and 21,611 shares, respectively) 189,735 225,249
Net asset value of shares issued from
reinvestment of distributions
(3,379 and 6,494 shares,
respectively) 30,421 64,196
Cost of shares repurchased (26,781 and
55,264 shares, respectively) (244,187) (559,210)
----------- -----------
Total (24,031) (269,765)
----------- -----------
CLASS B
Proceeds from sales of shares (5,268
and 11,520 shares, respectively) 49,302 120,191
Net asset value of shares issued from
reinvestment of distributions
(383 and 933 shares, respectively) 3,447 9,271
Cost of shares repurchased (8,913 and
0 shares, respectively) (80,037) --
----------- -----------
Total (27,288) 129,462
----------- -----------
CLASS C
Proceeds from sales of shares (49 and
12,513 shares, respectively) 450 124,671
Net asset value of shares issued from
reinvestment of distributions
(585 and 589 shares, respectively) 5,262 5,859
Cost of shares repurchased (1 and 125
shares, respectively) (3) (1,280)
----------- -----------
Total 5,709 129,250
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (2,062,544) (1,816,875)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS (2,159,124) (4,667,863)
NET ASSETS
Beginning of period 18,662,023 23,329,886
----------- -----------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$51,043 AND $223,188, RESPECTIVELY] $16,502,899 $18,662,023
=========== ===========
</TABLE>
See Notes to Financial Statements 27
<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 FROM
ENDED YEAR ENDED SEPTEMBER 30, INCEPTION
3/31/00 ------------------------------------ 3/12/96 TO
(UNAUDITED) 1999 1998 1997 9/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.69 $ 11.11 $ 14.71 $ 11.10 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.25(1) 0.47(1) 0.54 0.13 0.13
Net realized and unrealized gain (loss) 0.09 (1.20) (3.10) 3.77 1.10
------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.34 (0.73) (2.56) 3.90 1.23
------- -------- -------- -------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.36) (0.44) (0.46) (0.28) (0.13)
Dividends from net realized gains -- (0.25) (0.58) (0.01) --
------- -------- -------- -------- -------
TOTAL DISTRIBUTIONS (0.36) (0.69) (1.04) (0.29) (0.13)
------- -------- -------- -------- -------
Change in net asset value (0.02) (1.42) (3.60) 3.61 1.10
------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 9.67 $ 9.69 $ 11.11 $ 14.71 $ 11.10
======= ======== ======== ======== =======
Total return 3.75%(4) (6.66)% (18.33)% 35.44% 12.39%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $15,241 $17,346 $21,794 $28,193 $1,073
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.86%(3) 1.66% 1.47% 1.99%(5) 1.00%(3)(5)
Net investment income (loss) 5.36%(3) 4.50% 4.14% 2.38% 4.39%(3)
Portfolio turnover 23%(4) 5% 53% 75.68% 30.70%(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED SEPTEMBER 30, INCEPTION
3/31/00 ------------------------------------ 3/12/96 TO
(UNAUDITED) 1999 1998 1997 9/30/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.54 $ 11.00 $ 14.68 $ 11.08 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.19(1) 0.32(1) 0.35 0.03 0.13
Net realized and unrealized gain (loss) 0.10 (1.19) (3.08) 3.78 1.08
------- -------- -------- -------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.29 (0.87) (2.73) 3.81 1.21
------- -------- -------- -------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.31) (0.34) (0.37) (0.20) (0.13)
Dividends from net realized gains -- (0.25) (0.58) (0.01) --
------- -------- -------- -------- -------
TOTAL DISTRIBUTIONS (0.31) (0.59) (0.95) (0.21) (0.13)
------- -------- -------- -------- -------
Change in net asset value (0.02) (1.46) (3.68) 3.60 1.08
------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 9.52 $ 9.54 $ 11.00 $ 14.68 $ 11.08
======= ======== ======== ======== =======
Total return(2) 3.18%(4) (7.97)% (19.52)% 34.54% 12.22%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $891 $919 $1,357 $3,176 $222
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 3.05%(3)(6) 3.05%(6) 2.76% 2.91%(6) 1.65%(3)(6)
Net investment income (loss) 4.16%(3) 3.13% 2.45% 1.37% 4.61%(3)
Portfolio turnover 23%(4) 5% 53% 75.68% 30.70%(4)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(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 periods ended September 30, 1997 and 1996, respectively.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 4.80%,
4.27%, 3.79% and 73.01% for the periods ended March 31, 2000 and
September 30, 1999, 1997 and 1996, respectively.
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 B
----------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
3/31/00 ENDED 7/1/98 TO
(UNAUDITED) 9/30/99 9/30/98
<S> <C> <C> <C>
Net asset value, beginning of period $9.55 $11.01 $12.58
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.13(1) 0.29(1) 0.07
Net realized and unrealized gain 0.11 (1.22) (1.58)
----- ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.24 (0.93) (1.51)
----- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.27) (0.28) (0.06)
Dividends from net realized gains -- (0.25) --
----- ------ ------
TOTAL DISTRIBUTIONS (0.27) (0.53) (0.06)
----- ------ ------
Change in net asset value (0.03) (1.46) (1.57)
----- ------ ------
NET ASSET VALUE, END OF PERIOD $9.52 $ 9.55 $11.01
===== ====== ======
Total return(2) 2.72%(4) (8.59)% (11.97)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $166 $197 $91
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 3.80%(3) 3.80% 3.80%(3)
Net investment income (loss) 3.04%(3) 2.79% 2.50%(3)
Portfolio turnover 23%(4) 5% 53%(4)
</TABLE>
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
3/31/00 ENDED 7/1/98 TO
(UNAUDITED) 9/30/99 9/30/98
<S> <C> <C> <C>
Net asset value, beginning of period $9.55 $11.01 $12.58
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.16(1) 0.29(1) 0.07
Net realized and unrealized gain 0.08 (1.22) (1.58)
----- ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.24 (0.93) (1.51)
----- ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.27) (0.28) (0.06)
Dividends from net realized gains -- (0.25) --
----- ------ ------
TOTAL DISTRIBUTIONS (0.27) (0.53) (0.06)
----- ------ ------
Change in net asset value (0.03) (1.46) (1.57)
----- ------ ------
NET ASSET VALUE, END OF PERIOD $9.52 $ 9.55 $11.01
===== ====== ======
Total return(2) 2.72%(4) (8.58)% (11.97)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $205 $200 $88
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(6) 3.80%(3) 3.80% 3.80%(3)
Net investment income (loss) 3.48%(3) 2.80% 2.44%(3)
Portfolio turnover 23%(4) 5% 53%(4)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charge is not reflected in total return calculation.
(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 19.86%,
18.50% and 22.08% for the periods ended March 31, 2000 and September 30,
1999 and 1998, respectively.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 16.09%,
19.95% and 22.93% for the periods ended March 31, 2000 and September 30,
1999 and 1998, respectively.
See Notes to Financial Statements
29
<PAGE>
PHOENIX-SENECA FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000 (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 has distinct 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 accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets, liabilities,
revenues and expenses. Actual results could differ from those estimates.
A. SECURITY VALUATION:
Equity securities are valued at the last sale price, or if there had been no
sale that day, at the 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
30
<PAGE>
PHOENIX-SENECA FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000 (UNAUDITED) (CONTINUED)
treated as a gain or loss on foreign currency. The Trust does not separate that
portion of the results of operations arising from changes in exchange rates and
that portion arising from changes in the market prices of securities.
F. FORWARD CURRENCY CONTRACTS:
Each 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>
31
<PAGE>
PHOENIX-SENECA FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000 (UNAUDITED) (CONTINUED)
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 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 voluntarily agreed to waive or reimburse each Fund's operating
expenses until January 31, 2001, 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.................. 0.90% 1.15% 1.90% 1.90%
Growth Fund................ 1.25% 1.85% 2.60% 2.60%
Mid-Cap "EDGE"-SM- Fund.... 1.15% 1.40% 2.15% 2.15%
Real Estate Securities
Fund....................... 2.35% 3.05% 3.80% 3.80%
</TABLE>
Prior to January 28, 2000, the Adviser voluntarily agreed to waive or
reimburse the Mid-Cap "EDGE"-SM- Fund's operating expenses until January 31,
2001 to the extent that such expenses exceeded the following percentages of
average annual net assets: 2.10% for Class X, 2.70% for Class A and 3.45% for
Class B and Class C.
PEPCO serves as the national distributor of the Trust's shares and has advised
the Trust that it retained net selling commissions of $24,402 for Class A shares
for the six months ended March 31, 2000. Deferred sales charges retained by
PEPCO for the six months ended March 31, 2000 were $11,423 for Class B shares
and $904 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, 2000, $142,002 was retained by the Distributor, $45,801 was paid out
to unaffiliated Participants and $2,663 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, 2000, transfer
agent fees were $160,619 of which PEPCO retained $879 which is net of fees paid
to State Street.
At March 31, 2000, 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...................... 1,568,254 $15,619,810
Bond Fund--Class A...................... 10,487 104,031
Bond Fund--Class B...................... 10,389 102,643
Bond Fund--Class C...................... 10,378 102,638
Growth Fund--Class B.................... 929 21,023
Growth Fund--Class C.................... 6,651 150,180
Mid-Cap "EDGE"-SM- Fund--Class B........ 6,646 187,882
Mid-Cap "EDGE"-SM- Fund--Class C........ 6,646 187,816
Real Estate Securities Fund--Class B.... 8,641 82,262
Real Estate Securities Fund--Class C.... 8,641 82,262
</TABLE>
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the year ended March 31, 2000
(excluding U.S. Government and agency securities and short-term securities)
aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
-------------- --------------
<S> <C> <C>
Bond Fund............................... $10,665,819 $ 6,834,358
Growth Fund............................. 58,426,550 46,390,343
Mid-Cap "EDGE"-SM- Fund................. 49,611,673 31,961,408
Real Estate Securities Fund............. 3,700,894 6,922,200
</TABLE>
Purchases and sales of long-term U.S. Government and agency securities during
the year ended March 31, 2000, aggregated $9,055,050 and $9,073,465,
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.
32
<PAGE>
PHOENIX-SENECA FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000 (UNAUDITED) (CONTINUED)
5. OTHER
As of March 31, 2000, the Funds had shareholders who each individually owned
more than 10% of total net assets, none of whom are affiliated with PHL or PXP
as follows. In addition, affiliate holdings are presented in the table located
within Note 2.
<TABLE>
<CAPTION>
Number of % of Total
Shareholders Net Assets
------------ ----------
<S> <C> <C>
Growth Fund............................. 1 10.5%
Real Estate Securities Fund............. 2 39.7%
</TABLE>
6. CAPITAL LOSS CARRYOVERS
At September 30, 1999, the Real Estate Securities Fund had a capital loss
carryover of $24,701, expiring in 2007, which may be used to offset future
capital gains.
7. SUBSEQUENT EVENT
On April 28, 2000, the Phoenix-Seneca Growth Fund, a series of the Trust, will
hold a special meeting of shareholders to vote on an agreement and plan of
reorganization under which the Phoenix-Seneca Growth Fund will be combined with
the Phoenix-Seneca Equity Opportunities Fund, a series of the Phoenix Strategic
Equity Series Fund.
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.
33
<PAGE>
RESULTS OF SHAREHOLDER MEETING (UNAUDITED)
A special meeting of Shareholders of the Phoenix-Seneca Funds was held on
March 15, 2000 to approve the following matter:
1. Fix the number of trustees at fifteen and elect such number as detailed
below.
On the record date for this meeting there were 194,843,181 shares outstanding
and 51.45% of the shares outstanding and entitled to vote were present by proxy.
NUMBER OF VOTES
<TABLE>
<CAPTION>
FOR WITHHELD
---------- ---------
<S> <C> <C> <C>
1. Election of Trustees
Robert Chesek 99,560,396 692,791
E. Virgil Conway 99,227,857 1,025,330
William W. Crawford 99,561,639 691,548
Harry Dalzell-Payne 99,561,499 691,688
William N. Georgeson 99,561,639 691,548
Francis E. Jeffries 99,561,639 691,548
Leroy Keith, Jr. 99,562,141 691,046
Philip R. McLoughlin 99,562,141 691,046
Eileen A. Moran 99,562,141 691,046
Everett L. Morris 99,562,141 691,046
James M. Oates 99,562,141 691,046
Richard A. Pavia 99,562,141 691,046
Herbert Roth, Jr. 99,561,639 691,548
Richard E. Segerson 99,561,639 691,548
Lowell P. Weicker, Jr. 99,478,303 774,884
</TABLE>
34
<PAGE>
PHOENIX-SENECA FUNDS
909 Montgomery Street
San Francisco, California 94133
TRUSTEES AND OFFICERS
Robert Chesek, Trustee
E. Virgil Conway, Trustee
William W. Crawford, Trustee
Harry Dalzell-Payne, Trustee
William N. Georgeson, Trustee
Francis E. Jeffries, Trustee
Leroy Keith, Jr., Trustee
Eileen A. Moran, Trustee
Everett L. Morris, Trustee
James M. Oates, Trustee
Richard A. Pavia, Trustee
Herbert Roth, Jr., Trustee
Richard E. Segerson, Trustee
Lowell P. Weicker, Jr., Trustee
Philip R. McLoughlin, Chairman and Trustee
Gail P. Seneca, President
Thomas N. Steenburg, Secretary
Sandra J. Monticelli, Treasurer
INVESTMENT ADVISER
Phoenix Investment Counsel, Inc.
56 Prospect Street
Hartford, Connecticut 06115-0480
SUBADVISER
Seneca Capital Management LLC
909 Montgomery Street
San Francisco, California 94133
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
CUSTODIAN
State Street Bank and Trust Company
P. O. Box 351
Boston, Massachusetts 02101
TRANSFER AGENT
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachusetts 02110
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
WWW.PHOENIXINVESTMENTS.COM
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION
P.O. Box 2200 PRSRT STD
Enfield CT 06083-2200 U.S. POSTAGE
PAID
Andrew Associates
[LOGO] PHOENIX
INVESTMENT PARTNERS
For more information about Phoenix mutual funds, please call your financial
representative or contact us at 1-800-243-4361 or www.phoenixinvestments.com.
PXP 1140A (5/00)
