January 31, 1997
PHOENIX
ABERDEEN
SEMIANNUAL REPORT
Pheonix-Aberdeen
Series Fund
* NEW ASIA FUND
* GLOBAL SMALL CAP FUND
[PHOENIX DUFF & PHELPS LOGO]
<PAGE>
NEW ASIA SERIES
INVESTMENT ADVISERS' REPORT
The performance of Asian equity markets since the launch of the
Phoenix-Aberdeen New Asia Fund has been mixed. The solid gains in Hong Kong,
Malaysia and Indonesia were offset to some extent by declines in Thailand and
South Korea. Since its inception on September 4, 1996 through January 31, 1997,
the Fund's Class A shares returned 0.66% and Class B shares returned 0.35%.
During this same period, its benchmark, the Morgan Stanley Capital International
AC Asia Pacific ex Japan Index, returned 5.81%.* All of these figures assume
reinvestment of any distributions, but exclude the effect of sales charges.
A key factor in the Fund's trailing the market has been the surge in the
Hong Kong stock market and in particular, the local property stocks that
dominate the Hang Seng Index. We continue to hold the view that the risk in the
property sector, with prices now among the highest in the world, is high and
further upside is limited. We therefore have minimal exposure to Hong Kong
property in the portfolio.
In 1996, the emerging markets of the Far East enjoyed another year of
strong economic growth, with average GDP growth of around 7%. Earnings growth
has come in at the healthy level of 10% to 15%.
We have overweighted the stock markets of Indonesia and the Philippines,
which are benefiting from improved economic fundamentals. The Malaysian economy
is fulfilling our expectations, although stock market valuations appear
stretched. Meanwhile, our investments in Australia are concentrated in the
industrial, commercial and financial sectors and generally have, as a common
theme, exposure to Asia and the added growth to be obtained from transferring
Australia's proven expertise to the region.
The Indian sub-continent, although far from a mirror image of the
traditional Asian tiger, offers tremendous growth potential and, encouragingly,
corporate management of the highest quality can be found.
Where we have been disappointed is in Korea and Thailand, but at current
stock market levels, feel the concerns overdone. Although the brightest economic
light has been China, there are few companies of sufficient quality in which to
invest. As a result, our investment exposure remains minimal.
Looking ahead, 1997 promises to be very similar to 1996. Average growth in
the Fund's investment region should continue strong, running at around 7%, while
governments continue to put the economy at the top of their list of priorities.
With trade becoming even more intra-regional and businesses moving across
borders, our investment emphasis will be keenly focused at the company level. We
believe that quality management and product, as well as financial strength, are
crucial to long-term investment returns.
*Morgan Stanley Capital International All Country Asia Pacific (excluding
Japan) Index is a market-value weighted average of the performance of
approximately 695 securities listed on the stock exchanges of 14 countries in
Asia and the Pacific Basin. Performance is calculated on a total return basis,
as reported by Frank Russell Company.
1
<PAGE>
New Asia Series
- --------------------------------------------------------------------
INVESTMENTS AT JANUARY 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------- ---------
<S> <C> <C>
COMMON STOCKS--91.6%
Australia--11.9%
Australian Gas Light Co. Ltd. (Utility-Gas).. 90,000 $ 478,847
Davids Ltd. (Retail) ..................... 250,000 339,203
Pacific BBA Ltd. (Miscellaneous) ......... 135,000 452,778
QBE Insurance Group Ltd. (Insurance) ...... 110,000 543,334
---------
1,814,162
---------
Hong Kong--21.7%
CDL Hotels International Ltd. (Hotels) ... 750,000 425,861
Giordano International Ltd. (Retail) ...... 399,000 223,984
HSBC Holdings PLC (Banks) .................. 30,000 694,928
Hongkong Electric Holdings Ltd. (Utility-
Electric) ................................ 125,000 444,412
National Mutual Asia Ltd. (Insurance) ...... 540,000 519,164
Smartone Telecommunications (Utility-
Telephone) (b) .......................... 200,000 393,599
Swire Pacific Ltd. Class B (Miscellaneous) 400,000 591,044
---------
3,292,992
---------
India--6.5%
Grasim Industries Ltd. Sponsored GDR
144A (Basic Materials) (c) .............. 35,000 498,750
Industrial Credit & Investment Corporation
of India Ltd. Sponsored GDR
(Diversified Financial Services) (b) ..... 55,000 488,125
---------
986,875
---------
Indonesia--8.3%
PT Bank Bali (Banks) ..................... 200,000 483,905
PT Duta Anggada Realty (Property) ......... 225,000 208,290
PT Indosat (Utility-Telephone) ............ 200,000 568,062
---------
1,260,257
---------
Malaysia--9.9%
AMMB Holdings Berhad
(Diversified Financial Services) ........ 70,000 619,644
Malaysian Oxygen Berhad (Chemical) ......... 95,000 496,922
Sime UEP Properties Berhad (Property) ..... 150,000 389,289
---------
1,505,855
---------
New Zealand--3.0%
Telecom Corporation of New Zealand Ltd.
(Utility-Telephone) ....................... 90,000 456,724
---------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------- -------------
<S> <C> <C>
Philippines--6.7%
Ayala Land, Inc. Class B (Property) ... 350,000 $ 425,047
Philippine Long Distance Telephone Co.
Sponsored ADR (Utility-Telephone) .. 10,000 593,750
-------------
1,018,797
-------------
Singapore--7.2%
Development Bank of Singapore Ltd.
(Banks) ............................. 31,000 429,454
Robinson & Co. Ltd. (Retail) ......... 90,000 329,284
Rothmans Industries Ltd. (Tobacco) ... 75,000 335,678
-------------
1,094,416
-------------
South Korea--7.0%
Korea Electric Power Corp. Sponsored
ADR (Utility-Electric) .............. 23,000 508,875
Samsung Electronics Sponsored GDR
144A (Electronics) (c) .............. 25,000 547,000
-------------
1,055,875
-------------
Thailand--9.4%
Ruam Pattana Fund II
(Closed End Mutual Fund) ........... 1,500,000 561,451
Siam Cement Public Co. Ltd.
(Building & Construction) ........... 11,000 342,967
Siam Commercial Bank Public Co. Ltd.
(Banks) ............................. 80,000 524,793
-------------
1,429,211
-------------
TOTAL COMMON STOCKS
(Identified cost $14,045,149) ........................ 13,915,164
-------------
PAR
VALUE
(000)
---------
SHORT-TERM OBLIGATIONS--10.5%
Brown Brothers Harriman repurchase
agreement, 5.40%, dated 1/31/97 due
2/3/97, repurchase price $1,600,720
collateralized by U.S. Treasury Bill 0%,
5/15/97, market value $1,600,000 ..... $ 1,600 1,600,000
-------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $1,600,000) ........................ 1,600,000
-------------
TOTAL INVESTMENTS--102.1%
(Identified cost $15,645,149) ........................ 15,515,164(a)
Cash and receivables, less
liabilities--(2.1%) ................................ (318,050)
-------------
NET ASSETS--100.0% ................................. $ 15,197,114
=============
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $607,691 and gross
depreciation of $737,676 for federal income tax purposes. At January 31,
1997, the aggregate cost of securities for federal income tax purposes was
$15,645,149.
(b) Non-income producing.
(c) 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 January 31,
1997, these securities amounted to a value of $1,045,750 or 6.9% of net
assets.
See Notes to Financial Statements
2
<PAGE>
New Asia Series
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Long-Term Investments
(Unaudited)
<S> <C>
Banks ................................................ 15.3%
Basic Materials ....................................... 3.6
Building & Construction .............................. 2.5
Chemical ............................................. 3.6
Closed End Mutual Fund ................................. 4.0
Diversified Financial Services ........................ 8.0
Electronics .......................................... 3.9
Hotels ................................................ 3.1
Insurance ............................................. 7.6
Miscellaneous .......................................... 7.5
Property ............................................. 7.3
Retail ................................................ 6.4
Tobacco ................................................ 2.4
Utility-Electric ....................................... 6.9
Utility-Gas .......................................... 3.4
Utility-Telephone .................................... 14.5
-----
100.0%
=====
</TABLE>
See Notes to Financial Statements
3
<PAGE>
New Asia Series
- --------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $15,645,149) $15,515,164
Foreign currency at value
(Identified cost $47,658) 47,328
Cash 43,364
Receivables
Investment securities sold 333,844
Fund shares sold 118,968
Interest and dividends 20,592
Receivable from adviser 32,901
Tax reclaim 107
Prepaid expenses 35,407
-----------
Total assets 16,147,675
-----------
Liabilities
Payables
Investment securities purchased 851,103
Fund shares repurchased 9,635
Transfer agent fee 14,551
Distribution fee 5,780
Trustees' fee 3,200
Administration fee 1,850
Financial agent fee 370
Accrued expenses 64,072
-----------
Total liabilities 950,561
-----------
Net Assets $15,197,114
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $15,338,149
Undistributed net investment loss (33,993)
Accumulated net realized gain 22,918
Net unrealized depreciation (129,960)
-----------
Net Assets $15,197,114
===========
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $10,636,278) 1,062,830
Net asset value per share $10.01
Offering price per share
$10.01/(1-4.75%) $10.51
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $4,560,836) 456,560
Net asset value and offering price per share $9.99
</TABLE>
STATEMENT OF OPERATIONS
FROM INCEPTION SEPTEMBER 4, 1996
TO JANUARY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Investment Income
Interest $ 65,066
Dividends 64,157
Foreign taxes withheld (8,648)
--------
Total investment income 120,575
--------
Expenses
Investment advisory fee 32,403
Distribution fee--Class A 7,397
Distribution fee--Class B 8,533
Administration fee 5,718
Financial agent fee 1,144
Registration 36,906
Custodian 35,500
Transfer agent 17,900
Professional 13,500
Printing 8,300
Trustees 6,650
Miscellaneous 1,440
--------
Total expenses 175,391
Less expenses borne by investment adviser (88,937)
--------
Net expenses 86,454
--------
Net investment income 34,121
--------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 28,549
Net realized loss on foreign currency transactions (5,631)
Net change in unrealized appreciation (depreciation)
on investments (129,985)
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions 25
--------
Net loss on investments (107,042)
--------
Net decrease in net assets resulting from
operations ($72,921)
========
</TABLE>
4
See Notes to Financial Statements
<PAGE>
New Asia Series
- --------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
From Inception
September 4, 1996 to
January 31, 1997
(Unaudited)
---------------------
<S> <C>
From Operations
Net investment income $ 34,121
Net realized gain 22,918
Net change in unrealized appreciation (depreciation) (129,960)
-----------
Decrease in net assets resulting from operations (72,921)
-----------
From Distributions to Shareholders
Net investment income--Class A (52,986)
Net investment income--Class B (15,128)
-----------
Decrease in net assets from distributions to shareholders (68,114)
-----------
From Share Transactions
Class A
Proceeds from sales of shares (1,101,399 shares) 11,112,360
Net asset value of shares issued from reinvestment of distributions (4,966 shares) 49,717
Cost of shares repurchased (43,535 shares) (441,850)
-----------
Total 10,720,227
-----------
Class B
Proceeds from sales of shares (457,939 shares) 4,632,108
Net asset value of shares issued from reinvestment of distributions (1,407 shares) 14,076
Cost of shares repurchased (2,786 shares) (28,262)
-----------
Total 4,617,922
-----------
Increase in net assets from share transactions 15,338,149
-----------
Net increase in net assets 15,197,114
Net Assets
Beginning of period 0
-----------
End of period (including undistributed net investment loss of ($33,993)) $15,197,114
===========
</TABLE>
See Notes to Financial Statements
5
<PAGE>
New Asia Series
- --------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A Class B
-------------- --------------
From Inception From Inception
9/4/96 to 9/4/96 to
1/31/97 1/31/97
(Unaudited) (Unaudited)
-------------- --------------
<S> <C> <C>
Net asset value, beginning of period $10.00 $10.00
Income from investment operations(6)
Net investment income 0.04(4) 0.01 (4)
Net realized and unrealized gain 0.03 0.03
------ ------
Total from investment operations 0.07 0.04
------ ------
Less distributions
Dividends from net investment income (0.06) (0.05)
Dividends from net realized gains -- --
------ ------
Total distributions (0.06) (0.05)
------ ------
Change in net asset value 0.01 (0.01)
------ ------
Net asset value, end of period $10.01 $ 9.99
====== ======
Total return(1) 0.66%(3) 0.35% (3)
Ratios/supplemental data:
Net assets, end of period (thousands) $10,636 $4,561
Ratio to average net assets of:
Operating expenses 2.10%(2) 2.85% (2)
Net investment income (loss) 1.17%(2) (0.05%)(2)
Portfolio turnover 5%(3) 5% (3)
Average commission rate paid(5) $0.0109 $0.0109
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) Annualized
(3) Not annualized
(4) Includes reimbursement of operating expenses by investment adviser of $0.09
and $0.09, respectively.
(5) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for securities trades on
which commissions are charged. This rate generally does not reflect
mark-ups, mark-downs, or spreads on shares traded on a principal basis.
(6) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from anticipated
results depending on the time of share purchases and redemptions.
See Notes to Financial Statements
6
<PAGE>
GLOBAL SMALL CAP SERIES
INVESTMENT ADVISERS' REPORT
On balance, most equity markets around the world posted strong results
during this six-month reporting period. The U.S. market surged as investors drew
encouragement from the ideal scenario of steady economic growth, low interest
rates and controlled inflation. Large company stocks, however, significantly
outperformed their small-cap counterparts for much of the period, owing to
investors' preference for liquidity and predictable earnings growth.
European markets have been dominated by two major themes. First, there is
the belief that 1997 will bring moderate economic recovery. Growth of 2% to 2.5%
is possible in Germany, which should be enough to help the rest of the European
economies. While this growth is expected to be non-inflationary, it will not be
enough to lower the high levels of unemployment across the continent. The second
major theme has been the determination of an increasing number of countries to
be ready for monetary union, although France and Italy stand out for the
questionable accounting methods they have proposed to ensure nominal
qualification.
The performance of the Far East stock markets has been very mixed. Hong
Kong was the best performer, fueled by a surge of liquidity and rising property
prices. Korea, Singapore and Thailand were extremely weak, while Japan suffered
from a lack of local buying, a weak currency and structural problems.
The major Latin American countries are all in recovery stages, with
declining inflation. Brazil, the largest market, has been the best performer
over this reporting cycle. In Mexico, which has rebounded from recession, the
market remained in a trading range, as political and currency worries continued
to dampen investor enthusiasm.
Phoenix-Aberdeen Global Small Cap Fund has had a good start. Since its
inception on September 4, 1996 through January 31, 1997, the Fund's Class A
shares returned 5.80% and Class B shares returned 5.40%. From September 30, 1996
through January 31, 1997, its benchmark, the FT/S&P--Actuaries World Index
Medium Small Component, returned 2.77%.* All of these figures assume
reinvestment of any distributions, but exclude the effect of sales charges.
The domestic segment of the portfolio had very strong contributions from
its energy and technology holdings in 1996; however, profit taking in these two
sectors in January--the final month of this reporting period--restrained
performance somewhat. We have begun to build positions in the financial services
and the health care sectors, particularly biotechnology companies, and expect
these holdings to perform well in 1997.
In the international portion of the portfolio, we have focused on the
stronger markets overall, and on areas that show signs of improvement. For
example, the portfolio has been underweighted in Japan relative to the other
Asian markets, which has been a major boost to portfolio performance in the Far
East region.
As we move into 1997, we expect increased volatility in the domestic equity
markets, with the potential for gains found in increasingly selective areas.
Accordingly, our strategy will continue to emphasize broader diversification and
the identification of small companies poised to benefit from emerging investment
themes.
In the world markets, we are encouraged by the prospects for stronger
growth in Europe. In the Asian region, we continue to avoid Japan, focusing
instead on the faster growing Asian economies. The economic background for Asia
is one of decelerating growth; nonetheless, the annualized rate of growth is
still in a healthy range of 6% to 8%. On the whole, we view the softening in
growth as a welcome breather for Asian economies. Finally, our outlook on the
U.K. is very positive, with corporate profits up significantly from a year ago
and consumer spending strengthening.
*The FT/S&P--Actuaries World Index(TM) is a broad-based global market index
consisting of over 2,400 stocks, covering 28 countries in the Pacific Basin,
Europe and the Americas markets. The index is weighted by market capitalization
and returns are calculated on a total return basis. The Medium/Small component
of the FT/S&P--Actuaries World Index consists of companies in the World Index
with market capitalization between $25 million and $13.9 billion. Performance is
reported by Goldman, Sachs & Co.
7
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------
INVESTMENTS AT JANUARY 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------
<S> <C> <C>
COMMON STOCKS--87.8%
Argentina--0.2%
Disco SA Sponsored ADR (Retail--
Supermarkets) (b) ........................... 3,000 $ 81,000
---------
Australia--2.5%
Davids Ltd. (Retail/Wholesale--Food) ......... 300,000 407,043
Pacific BBA Ltd. (Auto/Truck--
Replacement Parts) ........................... 150,000 503,087
---------
910,130
---------
Brazil--0.5%
Centrais Electricas de Santa Catarina GDR
(Utility--Electric Power) (b) ............... 900 99,000
TV Filme, Inc. (Media--Cable TV) ............ 8,000 100,000
---------
199,000
---------
Chile--0.3%
Santa Isabel SA Sponsored ADR
(Retail--Supermarkets) (b) .................. 4,500 120,938
---------
Denmark--3.2%
Coloplast A/S Class B (Medical--
Products) .................................... 3,488 264,133
Falck A/S (Commercial Services--
Security/Safety) .............................. 445 111,875
Oticon Holding A/S Class A (Medical--
HMO) .......................................... 2,000 400,327
Sondagsavisen A/S (Media--Newspapers) ......... 1,970 400,631
---------
1,176,966
---------
Finland--1.1%
Amer Group Ltd. Class A (Leisure--
Toys/Games/Hobby) ........................... 19,800 401,475
---------
France--3.4%
Altran Technologies SA
(Telecommunications--Services) ............... 660 235,096
Hyparlo SA (Retail--Miscellaneous/
Diversified) (b) .............................. 2,150 208,088
Penauille Polyservices (Commercial
Services--Security/Safety) .................. 1,330 336,608
Societe Industrielle D'Aviations Latecoere
SA (Aerospace/Defense) ........................ 3,600 452,630
---------
1,232,422
---------
SHARES VALUE
--------- ---------
Germany--2.4%
Apcoa Parking AG (Commercial
Services--Miscellaneous) ..................... 3,000 $ 311,431
Bien-Haus AG (Building--Mobile/
Manufacturing & RV) ........................... 550 146,770
---------
Leica Camera AG (Leisure--Photo
Equipment/Related) (b) ....................... 6,100 194,443
Puma AG (Retail--Apparel/Shoe) (b) ............ 7,300 226,899
---------
879,543
---------
Hong Kong--4.8%
Citybus Group Ltd. (Transportation--
Services) (b) ................................ 1,000,000 287,134
Giordano International Ltd. (Retail--
Apparel/Shoe) ................................ 651,000 365,447
Innovative International Holdings Ltd.
(Auto/Truck--Original Equipment) ........... 1,000,000 409,730
Magician Industries Holding Ltd.
(Household--Housewares) .................... 1,000,000 296,813
Pico Far East Holdings Ltd.
(Building--Construction
Products/Miscellaneous) .................... 1,500,000 406,504
---------
1,765,628
---------
India--2.3%
Crompton Greaves Ltd. Sponsored GDR
(Electric Products--Miscellaneous) (b) ..... 126,700 319,917
Industrial Credit & Investment Corporation of
India Ltd. Sponsored GDR
(Finance--Investment Bankers) (b) ........... 60,000 532,500
---------
852,417
---------
Indonesia--3.7%
PT Bank Bali (Banks--Foreign) ............... 200,000 483,905
PT Duta Anggada Realty (Real Estate
Development) ................................ 400,000 370,292
PT Tigaraksa Satria (Retail--
Miscellaneous/Diversified) ................. 350,000 486,009
---------
1,340,206
---------
Israel--0.4%
Tadiran Ltd. (Telecommunications--
Equipment) ................................... 32,500 139,998
---------
Italy--1.1%
Compagnia Assicuratrice Unipol SPA
(Insurance--Diversified) .................... 45,000 153,350
SAES Getters SPA (Electric--
Miscellaneous Components) .................... 14,700 258,919
---------
412,269
---------
</TABLE>
See Notes to Financial Statements
8
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- ---------
<S> <C> <C>
Japan--4.9%
FCC Co. Ltd. (Auto/Truck--Replacement
Parts) ................................ 25,000 $ 671,335
Kawasumi Laboratories (Medical/
Dental--Supplies) ....................... 34,000 369,687
Shinmei Electric (Electric--
Miscellaneous Components) .............. 12,000 178,913
Sodick (Electric--Miscellaneous
Components) (b) ....................... 70,000 552,965
---------
1,772,900
---------
Malaysia--1.5%
Asas Dunia Berhad (Real Estate
Development) .......................... 150,000 540,176
---------
Mexico--0.5%
Industrias CH SA Series B (Steel--
Producers) (b) .......................... 33,000 112,673
Tekchem SA (Chemicals--Specialty) (b) ... 182,000 52,133
---------
164,806
---------
Norway--2.6%
Nera ASA (Telecommunications--
Cellular) ............................. 8,000 388,559
Tomra Systems ASA (Pollution
Control--Equipment) .................... 28,000 543,983
---------
932,542
---------
Singapore--3.7%
Industrial & Commercial Bank Ltd.
(Banks--Foreign) ....................... 75,000 285,060
Robinson & Co. Ltd. (Retail--Department
Stores) ................................ 140,000 512,219
Rothmans Industries Ltd. (Tobacco) ...... 120,000 537,084
---------
1,334,363
---------
Spain--0.7%
Corp. Financiera Reunida SA
(Finance--Investment Bankers) (b) ..... 75,000 248,466
---------
Sweden--0.6%
Bure Investment Aktiebolaget (Finance--
Public Traded Investment Funds) ........ 15,000 219,874
---------
Switzerland--0.7%
Lindt & Spruengli AG (Food--
Confectionery) .......................... 15 265,599
---------
Thailand--2.5%
Bangkok First Investment & Trust Ltd.
(Finance--Investment Bankers) ........... 100,000 356,936
Hana Microelectronics Public Co. Ltd.
(Electric--Miscellaneous Components) .. 100,000 567,239
---------
924,175
---------
SHARES VALUE
------- ---------
United Kingdom--7.8%
Cedardata PLC (Computer--Software) ...... 75,000 $ 304,688
Corporate Services Group PLC
(Commercial Services--
Miscellaneous) ......................... 80,000 275,000
DCS Group PLC (Computer--Software) ...... 60,000 257,212
GWR Group PLC (Media--Radio/TV) ......... 100,000 333,333
Gerrard Group PLC (Finance--
Investment Bankers) .................... 33,592 173,613
Gresham Computing PLC (Computer--
Software) ............................. 125,000 123,197
ILP Group PLC (Containers--Paper/
Plastic) ................................ 200,000 216,346
JJB Sports PLC (Retail--Apparel/
Shoe) ................................... 55,650 294,303
Rolfe & Nolan PLC (Computer--Services) ... 59,800 400,104
St. James Beach Hotels PLC
(Leisure--Hotels & Motels) .............. 80,000 231,410
Wilmington Group PLC (Media--
Periodicals) .......................... 134,000 245,881
---------
2,855,087
---------
United States--36.4%
Commercial--Leasing Companies--0.6%
Winthrop Resources Corp. ............... 6,900 200,100
---------
Commercial Services--Miscellaneous--0.7%
Metro Networks, Inc. (b) ............... 8,000 188,000
Pediatrix Medical Group, Inc. (b) ...... 2,000 78,750
---------
266,750
---------
Commercial Services--Schools--0.4%
Computer Learning Centers, Inc. (b) ...... 3,500 101,500
---------
Strayer Education, Inc. .................. 2,000 52,500
---------
154,000
---------
Computer--Integrated Systems--0.6%
Wind River Systems (b) .................. 4,500 228,937
---------
Computer--Memory Devices--0.7%
Veritas Software Corp. (b) ............... 5,000 260,000
---------
Computer--Services--1.2%
Analysts International Corp. ............ 5,500 147,125
Computer Management
Sciences, Inc. (b) ..................... 4,000 89,000
Computer Task Group, Inc. ............... 4,500 196,312
Whittman-Hart, Inc. (b) .................. 1,000 20,250
---------
452,687
---------
</TABLE>
See Notes to Financial Statements
9
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<S> <C> <C>
United States--continued
Computer--Software--2.3%
Aurum Software, Inc. (b) ..................... 3,000 $ 72,000
Clarify, Inc. (b) ........................... 7,000 252,000
Manugistics Group, Inc. (b) .................. 6,000 262,500
Pegasystems, Inc. (b) ........................ 3,200 120,800
SeaChange International, Inc. (b) ............ 5,000 136,250
----------
843,550
----------
Electric--Laser System/Component--0.5%
Cymer, Inc. (b) .............................. 3,500 180,250
----------
Electric--Miscellaneous Components--0.2%
ACT Manufacturing, Inc. (b) .................. 2,100 60,900
----------
Electric--Semiconductor Equipment--0.8%
Etec Systems, Inc. (b) ..................... 1,500 67,125
PRI Automation, Inc. (b) ..................... 2,200 132,275
Speedfam International, Inc. (b) ............ 2,500 88,750
----------
288,150
----------
Electric--Semiconductor Manufacturing--4.5%
ANADIGICS, Inc. (b) ........................ 7,000 372,750
Hadco Corp. (b) .............................. 1,500 81,375
Jabil Circuit, Inc. (b) ..................... 4,000 189,000
Sanmina Corp. (b) ........................... 3,000 178,500
Sipex Corp. (b) .............................. 6,000 184,500
Triquint Semiconductor, Inc. (b) ............ 8,000 290,000
Vitesse Semiconductor Corp. (b) ............ 6,500 356,687
----------
1,652,812
----------
Finance--Investment Bankers--0.7%
Alex Brown, Inc. ........................... 4,500 238,500
----------
Financial Services--Miscellaneous--0.3%
Hambrecht & Quist Group (b) .................. 5,000 117,500
----------
Machinery--Farm--0.4%
Lindsay Manufacturing Co. .................. 3,000 154,125
----------
Medical--Biomed/Genetics--5.3%
Agouron Pharmaceuticals, Inc. (b) ............ 4,000 343,000
Alkermes, Inc. (b) ........................... 11,500 267,375
Autoimmune, Inc. (b) ........................ 4,500 76,500
Bio-Technology General Corp. (b) ............ 11,000 185,625
Guilford Pharmaceuticals, Inc. (b) ......... 6,000 147,000
Incyte Pharmaceuticals, Inc. (b) ............ 5,000 332,500
SangStat Medical Corp. (b) .................. 10,000 305,000
Transkaryotic Therapies, Inc. (b) ............ 3,000 59,250
Vertex Pharmaceuticals, Inc. (b) ............ 4,000 196,000
----------
1,912,250
----------
Medical--Ethical Drugs--1.7%
Jones Medical Industries, Inc. ............... 4,000 152,000
Theragenics Corp. (b) ........................ 11,500 303,312
US Bioscience, Inc. (b) ..................... 10,500 152,250
----------
607,562
----------
SHARES VALUE
------- ----------
Medical--Instruments--0.4%
ADAC Laboratories ........................... 6,000 $ 149,250
----------
Medical--Output/Home Care--1.0%
Curative Health Services, Inc. (b) ......... 9,000 291,375
National Surgery Centers, Inc. (b) ......... 2,500 85,313
----------
376,688
----------
Medical--Products--0.8%
Affymetrix, Inc. (b) ........................ 3,000 87,750
Possis Corp. (b) ........................... 2,400 45,300
Sonus Pharmaceuticals, Inc. (b) ............ 6,000 168,000
----------
301,050
----------
Medical/Dental--Supplies--0.5%
Applied Analytical Industries, Inc. (b) ...... 3,000 77,625
CardioThoracic Sytems, Inc. (b) ............ 4,500 114,188
----------
191,813
----------
Oil & Gas--Drilling--2.0%
Atwood Oceanics, Inc. (b) .................. 2,500 168,438
Cliffs Drilling Co. (b) ..................... 5,500 375,375
Patterson Energy, Inc. (b) .................. 2,000 64,000
UTI Energy Corp. (b) ........................ 3,000 99,750
---------
707,563
---------
Oil & Gas--Field Services--1.7%
Hvide Marine, Inc. (b) ..................... 4,000 99,500
Pride Petroleum Services, Inc. (b) ......... 11,000 248,875
Trico Marine Services, Inc. (b) ............ 6,000 280,500
----------
628,875
----------
Oil & Gas--Machinery/Equipment--1.4%
Energy Ventures, Inc. (b) .................. 3,000 180,000
Varco International, Inc. (b) ............... 12,000 319,500
----------
499,500
----------
Oil & Gas--U.S. Exploration & Production--4.3%
Belden & Blake Corp. (b) ..................... 3,000 78,750
Devon Energy Corp. ........................ 5,000 176,875
Forcenergy, Inc. (b) ........................ 4,400 143,550
Lomak Petroleum, Inc. ..................... 8,000 178,000
Newfield Exploration Co. (b) ............... 8,000 212,000
Nuevo Energy Co. (b) ........................ 7,000 360,500
Stone Energy Corp. (b) ..................... 12,500 356,250
Swift Energy Co. (b) ........................ 1,500 54,750
----------
1,560,675
----------
Retail--Mail Order & Direct--0.4%
dELiA*s Inc. (b) ........................... 8,000 148,000
----------
</TABLE>
See Notes to Financial Statements
10
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
-------- ----------
<S> <C> <C>
Steel--Specialty Alloys--1.8%
Oregon Metallurgical Corp. (b) ...... 5,400 $ 153,900
RMI Titanium Co. (b) .................. 10,000 253,750
Titanium Metals Corp. (b) ............ 8,000 235,000
----------
642,650
----------
Telecommunications--Equipment--0.2%
MRV Communications, Inc. (b) ......... 3,000 82,875
----------
Telecommunications--Services--0.5%
Pacific Gateway Exchange, Inc. (b) ... 6,500 193,375
----------
Transportation--Ship--0.5%
Seacor Holdings, Inc. (b) ............ 3,200 188,000
----------
Total United States .................. 13,288,387
----------
TOTAL COMMON STOCKS
(Identified cost $30,386,322)..................... 32,058,367
----------
WARRANTS--0.0%
Italy--0.0%
Compagnia Assicuratrice Unipol SPA
Warrants (Insurance--Diversified) (b) 45,000 9,180
----------
TOTAL WARRANTS
(Identified cost $0).............................. 9,180
----------
TOTAL LONG-TERM INVESTMENTS--87.8%
(Identified cost $30,386,322)..................... 32,067,547
----------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
------ -----------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--12.3%
Brown Brothers Harriman repurchase
agreement, 5.40%, dated 1/31/97 due
2/3/97, repurchase price $4,502,025,
collateralized by U.S. Treasury Bill
0%, 5/15/97, market value $4,500,000 ...... $4,500 $ 4,500,000
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $4,500,000) ..................... 4,500,000
-----------
TOTAL INVESTMENTS--100.1%
(Identified cost $34,886,322) ..................... 36,567,547(a)
Cash and receivables, less
liabilities--(0.1%) ............................. (54,869)
-----------
NET ASSETS--100.0% .............................. $36,512,678
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $3,122,063 and gross
depreciation of $1,440,838 for federal income tax purposes. At January 31,
1997, the aggregate cost of securities for federal income tax purposes was
$34,886,322.
(b) Non-income producing.
See Notes to Financial Statements
11
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Long-Term Investments
(Unaudited)
<TABLE>
<S> <C>
Aerospace/Defense ................................. 1.4%
Auto/Truck--Original Equipment ..................... 1.3
Auto/Truck--Replacement Parts ..................... 3.7
Banks--Foreign .................................... 2.4
Building--Construction Products/Miscellaneous ...... 1.3
Building--Mobile/Manufacturing & RV ............... 0.5
Chemicals--Specialty .............................. 0.2
Commercial--Leasing Companies ..................... 0.6
Commercial Services--Miscellaneous .................. 2.7
Commercial Services--Schools ........................ 0.5
Commercial Services--Security/Safety ............... 1.4
Computer--Integrated Systems ........................ 0.7
Computer--Memory Devices ........................... 0.8
Computer--Services ................................. 2.7
Computer--Software ................................. 4.8
Containers--Paper/Plastic ........................... 0.7
Electric--Laser System/Component .................. 0.6
Electric--Miscellaneous Components .................. 5.0
Electric--Semiconductor Equipment .................. 0.9
Electric--Semiconductor Manufacturing ............... 5.1
Electric Products--Miscellaneous .................. 1.0
Finance--Investment Bankers ........................ 4.8
Finance--Public Traded Investment Funds ............ 0.7
Financial Services--Miscellaneous .................. 0.4
Food--Confectionery ................................. 0.8
Household--Housewares .............................. 0.9
Insurance--Diversified .............................. 0.5
Leisure--Hotels & Motels ........................... 0.7
Leisure--Photo Equipment/Related .................. 0.6
Leisure--Toys/Games/Hobby ........................... 1.2
Machinery--Farm .................................... 0.5
Media--Cable TV .................................... 0.3
Media--Newspapers ................................. 1.2
Media--Periodicals ................................. 0.8
Media--Radio/TV .................................... 1.0
Medical--Biomed/Genetics ........................... 6.0
Medical--Ethical Drugs .............................. 1.9
Medical--HMO ....................................... 1.2
Medical--Instruments .............................. 0.5
Medical--Output/Home Care ........................... 1.2
Medical--Products ................................. 1.8
Medical/Dental--Supplies ........................... 1.7
Oil & Gas--Drilling ................................. 2.2
Oil & Gas--Field Services ........................... 2.0
Oil & Gas--Machinery/Equipment ..................... 1.5
Oil & Gas--U.S. Exploration & Production ............ 4.9
Pollution Control--Equipment ........................ 1.7
Real Estate Development ........................... 2.8
Retail--Apparel/Shoe .............................. 2.7
Retail--Department Stores ........................... 1.6
Retail--Mail Order & Direct ........................ 0.5
Retail--Miscellaneous/Diversified .................. 2.2
Retail--Supermarkets .............................. 0.6
Retail/Wholesale--Food .............................. 1.3
Steel--Producers .................................... 0.3
Steel--Specialty Alloys ........................... 2.0
Telecommunications--Cellular ........................ 1.2
Telecommunications--Equipment ..................... 0.7
Telecommunications--Services ........................ 1.3
Tobacco ............................................. 1.7
Transportation--Services ........................... 0.9
Transportation--Ship .............................. 0.6
Utility--Electric Power ........................... 0.3
-----
100.0%
=====
</TABLE>
See Notes to Financial Statements
12
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $30,386,322) $32,067,547
Repurchase agreement
(Identified cost $4,500,000) 4,500,000
Foreign currency at value
(Identified cost $267,384) 263,057
Cash 64,426
Receivables
Investment securities sold 1,371,220
Fund shares sold 538,790
Interest and dividends 20,290
Receivable from adviser 17,669
Tax reclaim 2,318
Prepaid expenses 35,403
-----------
Total assets 38,880,720
-----------
Liabilities
Payables
Investment securities purchased 2,231,557
Fund shares repurchased 16,820
Transfer agent fee 17,830
Distribution fee 16,176
Administration fee 4,478
Trustees' fee 3,250
Financial agent fee 895
Accrued expenses 77,036
-----------
Total liabilities 2,368,042
-----------
Net Assets $36,512,678
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $35,480,534
Undistributed net investment loss (68,349)
Accumulated net realized loss (585,241)
Net unrealized appreciation 1,685,734
-----------
Net Assets $36,512,678
===========
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $22,044,581) 2,083,145
Net asset value per share $10.58
Offering price per share
$10.58/(1-4.75%) $11.11
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $14,468,097) 1,371,890
Net asset value and offering price per share $10.55
</TABLE>
STATEMENT OF OPERATIONS
FROM INCEPTION SEPTEMBER 4, 1996
TO JANUARY 31, 1997
(Unaudited)
<TABLE>
<S> <C>
Investment income
Interest $ 81,838
Dividends 71,383
Foreign taxes withheld (7,420)
----------
Total investment income 145,801
----------
Expenses
Investment advisory fee 77,443
Distribution fee--Class A 15,171
Distribution fee--Class B 30,427
Administration fee 13,667
Financial agent fee 2,733
Custodian 50,000
Registration 37,205
Transfer agent 21,500
Professional 13,500
Printing 9,900
Trustees 6,700
Miscellaneous 3,390
----------
Total expenses 281,636
Less expenses borne by investment adviser (67,486)
----------
Net expenses 214,150
----------
Net investment loss (68,349)
----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized loss on securities (573,103)
Net realized loss on foreign currency transactions (12,138)
Net change in unrealized appreciation (depreciation)
on investments 1,681,225
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions 4,509
----------
Net gain on investments 1,100,493
----------
Net increase in net assets resulting from
operations $1,032,144
==========
</TABLE>
See Notes to Financial Statements
13
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
From Inception
September 4, 1996 to
January 31, 1997
(Unaudited)
--------------------
<S> <C>
From Operations
Net investment loss $ (68,349)
Net realized loss (585,241)
Net change in unrealized appreciation (depreciation) 1,685,734
-----------
Increase in net assets resulting from operations 1,032,144
-----------
From Share Transactions
Class A
Proceeds from sales of shares (2,173,717 shares) 22,279,929
Net asset value of shares issued from reinvestment of distributions (0 shares) --
Cost of shares repurchased (90,572 shares) (944,456)
-----------
Total 21,335,473
-----------
Class B
Proceeds from sales of shares (1,434,240 shares) 14,806,261
Net asset value of shares issued from reinvestment of distributions (0 shares) --
Cost of shares repurchased (62,350 shares) (661,200)
-----------
Total 14,145,061
-----------
Increase in net assets from share transactions 35,480,534
-----------
Net increase in net assets 36,512,678
-----------
Net Assets
Beginning of period 0
-----------
End of period (including undistributed net investment loss of ($68,349)) $36,512,678
===========
</TABLE>
See Notes to Financial Statements
14
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A Class B
-------------- --------------
From Inception From Inception
9/4/96 to 9/4/96 to
1/31/97 1/31/97
(Unaudited) (Unaudited)
----------- -----------
<S> <C> <C>
Net asset value, beginning of period $10.00 $10.00
Income from investment operations
Net investment income (loss) (0.02) (4)(5) (0.06) (4)(5)
Net realized and unrealized gain 0.60 0.61
------ ------
Total from investment operations 0.58 0.55
------ ------
Less distributions
Dividends from net investment income -- --
Dividends from net realized gains -- --
------ ------
Total distributions -- --
------ ------
Change in net asset value 0.58 0.55
------ ------
Net asset value, end of period $10.58 $10.55
====== ======
Total return(1) 5.80% (3) 5.40% (3)
Ratios/supplemental data:
Net assets, end of period (thousands) $22,045 $14,468
Ratio to average net assets of:
Operating expenses 2.10% (2) 2.85% (2)
Net investment income (loss) (0.46%)(2) (1.33%)(2)
Portfolio turnover 44% (3) 44% (3)
Average commission rate paid(6) $0.0119 $0.0119
</TABLE>
(1) Maximum sales charges are not reflected in the total return calculation.
(2) Annualized
(3) Not annualized
(4) Computed using average shares outstanding.
(5) Includes reimbursement of operating expenses by investment adviser of $0.03
and $0.03, respectively.
(6) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for securities
trades on which commissions are charged. This rate generally does not
reflect mark-ups, mark-downs, or spreads on shares traded on a principal
basis.
See Notes to Financial Statements
15
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
NOTES TO FINANCIAL STATEMENTS
January 31, 1997 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Phoenix-Aberdeen Series Fund (the "Fund") is organized as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment company
whose shares are offered in two separate Series. Each Series has distinct
investment objectives.
The New Asia Series seeks as its investment objective long-term capital
appreciation through investing in equity securities of issuers located in at
least three different countries throughout Asia other than Japan. The Global
Small Cap Series seeks as its investment objective long-term capital
appreciation through investing in a globally diversified portfolio of equity
securities of small and medium sized companies.
Each Series offers both Class A and Class B shares. 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. Both classes of shares have identical
voting, dividend, liquidation and other rights and the same terms and
conditions, except that each class bears different distribution expenses and has
exclusive voting rights with respect to its distribution plan. Income and
expenses of each Series are borne pro rata by the holders of both classes of
shares, except that each class bears distribution expenses unique to that class.
The following is a summary of significant accounting policies consistently
followed by the Series in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses.
Actual results could differ from those estimates.
A. Security valuation:
Equity securities are valued at the last sale price, or if there had been
no sale that day, at the last bid price. 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 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. Interest income is
recorded on the accrual basis. Dividend income is recorded on the ex-dividend
date or, in the case of certain foreign securities, as soon as the Series is
notified. Realized gains and losses are determined on the identified cost basis.
C. Income taxes:
Each of the Series is treated as a separate taxable entity. It is the
policy of each Series in the Fund to comply with the requirements of the
Internal Revenue Code (the Code), applicable to regulated investment companies,
and to distribute substantially all of its taxable and tax-exempt income to its
shareholders. In addition, each Series 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 Series 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, foreign
currency gain/loss, partnerships, operating losses and losses deferred due to
wash sales and excise tax regulations. Permanent book and tax basis differences
relating to shareholder distributions will result in reclassifications to paid
in capital.
E. Foreign currency translation:
Foreign securities and other assets and liabilities are valued using the
foreign currency exchange rate effective at the end of the reporting period.
Cost of investments is translated at the currency exchange rate effective at the
trade date. The gain or loss resulting from a change in currency exchange rates
between the trade and settlement dates of a portfolio transaction is treated as
a gain or loss on foreign currency. Likewise, the gain or loss resulting from a
change in currency exchange rates between the date income is accrued and paid is
treated as a gain or loss on foreign currency. The Fund does not separate that
portion of the results of operations arising from changes in exchange rates and
that portion arising from changes in the market prices of securities.
F. Forward currency contracts:
The New Asia Series and Global Small Cap Series 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.
16
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
NOTES TO FINANCIAL STATEMENTS
January 31, 1997 (Unaudited) (Continued)
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 Series as an unrealized gain (or loss). When
the contract is closed or offset with the same counterparty, the Series 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. Expenses:
Expenses incurred by the Fund with respect to more than one Series are
allocated in proportion to the net assets of each Series, except where
allocation of direct expense to each Series or an alternative allocation method
can be more fairly made.
H. Repurchase Agreements
A repurchase agreement is a transaction where a Series acquires a security
for cash and obtains a simultaneous commitment from the seller to repurchase the
security at an agreed upon price and date. The Series, 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 Series 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-Aberdeen International Advisors, LLC ("PAIA" or the "Adviser")
serves as the investment adviser to the Fund. PAIA is a joint venture between PM
Holdings, Inc., a direct subsidiary of Phoenix Home Life Mutual Insurance
Company ("PHL"), and Aberdeen Fund Managers, Inc. ("Aberdeen"), a wholly-owned
subsidiary of Aberdeen Trust PLC.
PAIA is entitled to a fee, at an annual rate of 0.85% of the average daily
net assets of each Series. Pursuant to sub-advisory agreements, the Adviser
delegates certain investment decisions and functions to other entities. Phoenix
Investment Counsel, Inc. ("PIC"), an indirect, majority-owned subsidiary of PHL,
receives a fee of 0.15% of the average daily net assets of each Series from PAIA
for providing cash management and other services, as needed. In addition, for
providing advisory services with respect to the Global Small Cap Series, assets
are allocated from time to time by PAIA. PAIA pays a fee to PIC equivalent to
0.40% of the average daily net assets of the Global Small Cap Series so
allocated by PAIA. PAIA also pays a sub-advisory fee to Aberdeen equivalent to
0.40% of the average net assets of the New Asia Series and 0.40% of the Global
Small Cap Series allocated to it by the Adviser for management.
The Adviser has agreed to reimburse the New Asia Series and the Global
Small Cap Series to the extent that other operating expenses (excluding advisory
fees, distribution fees, interest, taxes, brokerage fees and commissions and
extraordinary expenses) exceed 2.10% of the average daily net assets for Class A
and B shares for each Series.
Phoenix Equity Planning Corporation ("PEPCO"), an indirect majority-owned
subsidiary of PHL, which serves as the national distributor of the Fund's
shares, has advised the Fund that it retained net selling commissions of $56,940
for Class A shares and deferred sales charges of $17,034 for Class B shares for
the period ended January 31, 1997. In addition, each Series pays PEPCO a
distribution fee at an annual rate of 0.25% for Class A shares and 1.00% for
Class B shares applied to the average daily net assets of each Series. The
distributor has advised the Fund that of the total amount expensed for the
period ended January 31, 1997, $49,718 was retained by the Distributor and
$11,810 was paid out to unaffiliated participants.
As Financial Agent to the Fund and to each Series, PEPCO receives a fee at
an annual rate of 0.03% of the average daily net assets of each Series for
bookkeeping and pricing services. As Administrator for the Fund, Phoenix Duff &
Phelps Corporation ("PDP"), an indirect, majority-owned subsidiary of PHL,
receives a fee at an annual rate of 0.15% of the average daily net assets of
each Series for administrative services.
PEPCO serves as the Fund's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the period ended January 31, 1997, transfer
agent fees were $39,400 of which PEPCO retained $1,915 which is net of fees paid
to State Street.
At January 31, 1997, PHL and its affiliates held Phoenix-Aberdeen Series
Fund shares which aggregated the following:
<TABLE>
<CAPTION>
Aggregate
Shares Net Asset Value
------- ---------------
<S> <C> <C>
New Asia Series Class A ...... 291,622 $2,919,140
New Asia Series Class B ...... 10,045 100,350
Global Small Cap Series Class A 490,000 5,184,200
Global Small Cap Series Class B 10,000 105,400
</TABLE>
17
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
NOTES TO FINANCIAL STATEMENTS
January 31, 1997 (Unaudited) (Continued)
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the period ended January 31, 1997
(excluding U.S. Government and agency securities, short-term securities, and
forward currency contracts) aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
----------- ---------
<S> <C> <C>
New Asia Series ......... $14,383,539 $ 366,938
Global Small Cap Series 40,216,250 9,256,826
</TABLE>
There were no purchases or sales of long-term U.S. Government and agency
securities during the period ended January 31, 1997.
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 Series' ability to
repatriate such amounts.
This report is not authorized for distribution to prospective investors in
the Phoenix-Aberdeen Series Fund unless preceded or accompanied by an effective
prospectus which includes information concerning the sales charge, the Fund's
record and other pertinent information.
18
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
101 Munson Street
Greenfield, MA 01301
Trustees
C. Duane Blinn
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Calvin J. Pedersen
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
Officers
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
David R. Pepin, Executive Vice President
Chong Yoon Chou, Senior Vice President
Christopher D. Fishwick, Senior Vice President
Vivek Gandhi, Senior Vice President
Peter Hames, Senior Vice President
Gawaine Lewis, Senior Vice President
Philip Mottram, Senior Vice President
William J. Newman, Senior Vice President
Hugh Young, Senior Vice President
Shahreza Yusof, Senior Vice President
William E. Keen III, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
Dorothy J. Skaret, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Investment Adviser
Phoenix-Aberdeen International Advisers, LLC
56 Prospect Street
Hartford, Connecticut 06115-0480
Principal Underwriter
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, CT 06083-2200
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Transfer Agent
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, CT 06083-2200
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Phoenix-Aberdeen Series Fund
PO Box 2200
Enfield CT 06083-2200
- --------------
BULK RATE MAIL
U.S. POSTAGE
PAID
SPRINGFIELD, MA
PERMIT NO. 444
- ---------------
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