January 31, 1998
PHOENIX
ABERDEEN
SEMIANNUAL REPORT
[ARROW] PHOENIX-ABERDEEN NEW
ASIA FUND
[ARROW] PHOENIX-ABERDEEN GLOBAL
SMALL CAP FUND
[Phoenix Duff & Phelps Logo]
<PAGE>
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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.
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<PAGE>
NEW ASIA SERIES
INVESTOR PROFILE
Phoenix-Aberdeen New Asia Fund is designed for investors seeking long-term
capital appreciation. Investors should note that foreign investment involves
special risks, such as currency fluctuation, less public disclosure and
economic and political risks.
INVESTMENT ADVISER'S REPORT
For the six-month reporting period ended January 31, 1998, Class A shares
had a negative 35.75% return and Class B shares were down 36.10% compared with
a negative return of 39.46% for the Morgan Stanley All Country Asia Pacific ex
Japan Index.* All performance figures assume reinvestment of dividends and
exclude the effect of sales charges.
The recent downturn in Southeast Asian markets has been profligate, with
signs of cracks in the Asian economic miracle. Thailand has been the chief
upset with its problems part-political, part-economic, culminating in a
devaluation of the currency in July. Bad lending practices have run unchecked,
with funds channeled into non-productive assets like property. As the economy
has slowed, the corporate sector has been left with a large debt overhang, and
many of the finance houses are technically bankrupt. Although the economy will
slow dramatically and corporate earnings will plummet, for us as investors, the
emphasis must be on the quality of business, management and financials.
Thailand's crisis has had a ripple effect throughout Southeast Asia,
causing a fallout in stock markets and currencies, notably in Indonesia, Korea,
Malaysia and the Philippines. The question now is whether "Asia's financial
crisis" is deeper than first believed. Our view is that it remains
country-specific, although the lessons will have to be absorbed across the
region.
Broadly speaking, the currency shock has taught governments that access to
international capital markets cannot be on their own terms. In addition, we
have always been wary of the region's obsession with mega projects and the
belief that property can only rise in value. Recent events demand that
companies re-assess these preconceptions and focus instead on building solid
businesses.
We believe that the turnaround in stock markets and in economies can be
rapid simply because the affected countries do not have the strength to resist.
In an economic time scale this would mean in 18 months time onwards, whereas
given that the markets act as a discounting mechanism, it could be a lot sooner
for the financial markets. Encouragingly, the Indonesian government has
concluded an agreement with the IMF for a stabilization package of
approximately $23 billion (U.S. dollars), with promises to restructure banks,
reform the tax system and cut tariff and trade barriers. The government
introduced a temporary halt to the servicing of foreign debt by local
corporates, thus paving the way for companies and banks to start talks on a
framework for rescheduling loans. At the same time, new measures were announced
to try and restore confidence in the country's banking system with the
government undertaking to guarantee the debts and deposits of all Indonesian
banks for at least two years. Curbs on foreign ownership of banks have also
been removed, while a restructuring agency is to be set up to help
rehabilitation and assist in the sale of assets.
Macro data point to a slowing Chinese economy. GDP grew at its slowest
pace since 1990, inflation turned to disinflation in recent months, pointing to
problematic domestic demand and lower investments in new factories, and we
1
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New Asia Series
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expect growth to slow further in 1998. State-owned sectors continue to be in
the red, accounting for the lion's portion of over $200 billion (U.S. dollars)
of bad debt in the Chinese banking system.
Hong Kong cannot escape the decelerating forces in the other regional
economies. Although early December's land auction--a major barometer of Hong
Kong's economy--still attracted firm prices, the cracks are starting to appear.
The government has successfully managed to maintain the Hong Kong dollar peg,
but we expect the peg has to go some time soon as the economic cost of
maintaining it is just too great. It has already caused a 20% correction in
property prices, and is crimping corporate earnings. Beleaguered Peregrine
Investment Holdings, Asia's largest investment bank, filed for liquidation
after negotiations with the Zurich Group fell through, while the Hong Kong
authorities ruled out any government bailout. This is symptomatic of the
current situation, and we would expect further bankruptcies of mismanaged
businesses. It is important to remember, however, that typically the
bankruptcies occur after the market has turned.
Indian stocks rebounded in the last six months as liquidity improved and
interest rates began declining. Inflation remains under control, but the
economy itself is weakening with GDP growth slowing down and exports stagnant.
The focus is on politics as the United Front coalition government has resigned
and elections are expected to be held in March 1998.
OUTLOOK
Not all is doom and gloom, however. The economies of Australia and New
Zealand have not committed the sins of their neighbors and boast a generally
strong corporate and public sector. Our investments here have performed well
during this period. They are concentrated in the industrial, commercial and
financial sectors and not in the resources sector.
Asia will stop short of a market meltdown. Once currencies find a level,
prices settle and interest rates can fall, liquidity will improve. Better
management will help to mobilize efficient use of Asia's large domestic savings
pool and ultimately encourages higher levels of foreign direct investment. With
currencies nearer their true value, the "tigers" have an opportunity to compete
once again. This is critical because slowing exports are due to competition in
labor-intensive industries they thought their own. The present crisis is a
reminder that they would be better served pursuing "a value-added" route in
manufacturing and services.
Looking forward, the key is to be selective and try and pick those
companies which are well managed, have good products and which manage their
finances sensibly. As the cycle turns in Asia's favor, these are the companies
that will emerge even stronger.
* Morgan Stanley Capital International All Country Asia Pacific (excluding
Japan) Index is a market-value weighted average of the performance of
securities listed on stock exchanges in Asia and the Pacific Basin.
2
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New Asia Series
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INVESTMENTS AT JANUARY 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------------------ --------------------
<S> <C> <C>
COMMON STOCKS--93.4%
Australia--17.6%
Australian Gas Light Co. Ltd. (Utility-Gas) 30,000 $ 230,073
BRL Hardy Ltd. (Beverages) .................. 127,500 471,866
Commonwealth Bank of Australia (Banks) ...... 18,000 225,139
Pacifica Group Ltd. (Diversified
Manufacturing Operations) ................. 75,000 227,195
QBE Insurance Group Ltd. (Insurance) ........ 137,500 580,495
Telstra Corporation Ltd. (Utility-Telephone) 95,000 216,160
-----------
1,950,928
-----------
Hong Kong--19.0%
CDL Hotels International Ltd. (Hotels) ...... 900,000 258,771
Citybus Group Ltd. (Truckers) ............... 500,000 106,610
Giordano International Ltd. (Retail) ........ 599,000 154,810
Hongkong Electric Holdings Ltd. (Utility-
Electric) ................................. 135,000 482,361
National Mutual Asia Ltd. (Insurance) ....... 540,000 453,576
Smartone Telecommunications (Utility-
Telephone) ................................ 125,000 247,141
Swire Pacific Ltd. Class B (Miscellaneous) 525,000 407,056
-----------
2,110,325
-----------
India--8.7%
Industrial Credit & Investment Corporation
of India Ltd. Sponsored GDR
(Diversified Financial Services) .......... 55,000 687,500
Mahanagar Telephone Nigam Ltd.
Sponsored GDR (Utility-Telephone) (b) ..... 18,000 271,125
-----------
958,625
-----------
Indonesia--3.7%
PT Bank Bali (Banks) ........................ 669,000 28,671
PT Duta Anggada Realty TBK (Property) ....... 200,000 1,905
PT Indosat TBK (Utility-Telephone) .......... 220,000 377,142
-----------
407,718
-----------
Malaysia--4.1%
AMMB Holdings Berhad (Diversified
Financial Services) ....................... 65,000 41,353
Malaysian Oxygen Berhad (Chemical) .......... 95,000 219,261
Muhibbah Engineering (M) Berhad
(Engineering & Construction) .............. 100,000 45,203
Rashid Hussain Berhad (Diversified
Financial Services) ....................... 60,000 44,773
Sime UEP Properties Berhad (Property) ....... 210,000 106,479
-----------
457,069
-----------
New Zealand--2.5%
Telecom Corporation of New Zealand Ltd.
(Utility-Telephone) ....................... 60,000 274,115
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------------------ --------------------
<S> <C> <C>
Philippines--9.6%
Ayala Land, Inc. (Engineering &
Construction) ............................. 700,000 $ 246,190
Bank of the Philippine Islands (Banks) ...... 60,000 121,688
La Tondena Distillers, Inc. (Beverages) ..... 200,000 78,546
Manila Electric Co. Class B (Utility-
Electric) ................................. 12,000 37,984
Philippine Long Distance Telephone Co.
Sponsored ADR (Utility-Telephone) ......... 22,000 577,500
-----------
1,061,908
-----------
Singapore--10.3%
Clipsal Industries Ltd. (Electrical
Equipment) ................................ 135,000 214,650
Robinson & Co. Ltd. (Retail) ................ 126,000 366,919
Rothmans Industries Ltd. (Tobacco) .......... 95,000 470,297
United Overseas Bank Ltd. (Diversified
Financial Services) ....................... 25,000 93,186
-----------
1,145,052
-----------
South Korea--3.0%
Samsung Electronics Sponsored GDR 144A
Non-Voting Shares (Electronics) (c) ....... 25,000 331,250
-----------
Sri Lanka--1.4%
National Development Bank Ltd. (Banks) (b) 48,000 154,217
-----------
Taiwan--5.1%
Standard Foods Taiwan Ltd. Sponsored
GDR RegS (Retail-Food) (b) ................ 55,755 563,125
-----------
Thailand--5.7%
Bangkok Bank Public Co. Ltd. (Banks) ........ 50,000 150,711
Ruam Pattana Fund II (Closed End Mutual
Fund) (b) ................................. 1,500,000 230,332
Siam Commercial Bank Public Co. Ltd.
(Banks) ................................... 120,000 245,687
-----------
626,730
-----------
United Kingdom--2.7%
HSBC Holdings PLC (Banks) ................... 13,600 301,402
-----------
TOTAL COMMON STOCKS
(Identified cost $15,643,389) ......................................... 10,342,464
-----------
WARRANTS--0.0%
Malaysia--0.0%
AMMB Holdings Berhad Warrants
(Diversified Financial Services) (b) ...... 7,500 637
-----------
Thailand--0.0%
Siam Commercial Bank Public Co. Ltd.
Warrants (Banks) (b) ...................... 30,000 0
-----------
TOTAL WARRANTS
(Identified cost $0) ................................................. 637
-----------
</TABLE>
See Notes to Financial Statements
3
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New Asia Series
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<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- ----------- -------------
<S> <C> <C> <C>
CONVERTIBLE BONDS--0.1%
Malaysia--0.1%
AMMB Holdings
Berhad (ICULS) Cv.
7.50%, 5/8/02
(Diversified Financial
Services) .................... NR 75(d) $ 6,009
-----------
TOTAL CONVERTIBLE BONDS
(Identified cost $30,030) ........................... 6,009
-----------
NON-CONVERTIBLE BONDS--0.1%
Malaysia--0.1%
AMMB Holdings Berhad 5%,
5/13/02 (Diversified Financial
Services) .................... NR 75(d) 12,736
-----------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $30,030)............................ 12,736
-----------
TOTAL LONG-TERM INVESTMENTS--93.6%
(Identified cost $15,703,449)....................... 10,361,846
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
--------- -------------------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--6.3%
Aubrey G. Lanston & Co., Inc.
repurchase agreement, 5.48%,
dated 1/30/98 due 2/2/98,
repurchase price $700,320,
collateralized by U.S. Treasury
Note 8.875%, 2/15/99, market
value $714,095 .............................. $700 $ 700,000
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $700,000) ................................ 700,000
-----------
TOTAL INVESTMENTS--99.9%
(Identified cost $16,403,449).............................. 11,061,846(a)
Cash and receivables, less liabilities--0.1% .............. 12,212
-----------
NET ASSETS--100.0% .......................................... $11,074,058
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $525,716 and gross
depreciation of $6,261,257 for federal income tax purposes. At January 31,
1998, the aggregate cost of securities for federal income tax purposes was
$16,797,387.
(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,
1998, these securities amounted to a value of $331,250 or 3.0% of net
assets.
(d) Par value represents Malaysian Ringgits.
See Notes to Financial Statements
4
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New Asia Series
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INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Long-Term Investments
(Unaudited)
Banks ........................................ 11.9%
Beverages .................................... 5.3
Chemical ..................................... 2.1
Closed End Mutual Fund ....................... 2.2
Diversified Financial Services ............... 8.6
Diversified Manufacturing Operations ......... 2.2
Electrical Equipment ......................... 2.1
Electronics .................................. 3.2
Engineering & Construction ................... 2.8
Hotels ....................................... 2.5
Insurance .................................... 10.0
Miscellaneous ................................ 3.9
Property ..................................... 1.0
Retail ....................................... 5.0
Retail-Food .................................. 5.5
Tobacco ...................................... 4.5
Truckers ..................................... 1.0
Utility-Electric ............................. 5.0
Utility-Gas .................................. 2.2
Utility-Telephone ............................ 19.0
-----
100.0%
=====
See Notes to Financial Statements
5
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New Asia Series
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STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1998
(Unaudited)
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $16,403,449) $11,061,846
Foreign currency at value
(Identified cost $58,032) 57,828
Cash 16,910
Receivables
Investment securities sold 368,501
Dividends and interest 20,133
Fund shares sold 7,835
Receivable from adviser 3,445
Tax reclaim 95
-----------
Total assets 11,536,593
-----------
Liabilities
Payables
Investment securities purchased 367,734
Fund shares repurchased 20,572
Financial agent fee 6,965
Transfer agent fee 5,921
Distribution fee 4,098
Trustees' fee 3,636
Administration fee 1,306
Accrued expenses 52,303
-----------
Total liabilities 462,535
-----------
Net Assets $11,074,058
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $17,504,086
Undistributed net investment loss (369,493)
Accumulated net realized loss (718,317)
Net unrealized depreciation (5,342,218)
-----------
Net Assets $11,074,058
===========
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $7,853,534) 1,227,981
Net asset value per share $6.40
Offering price per share
$6.40/(1-4.75%) $6.72
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $3,220,524) 505,546
Net asset value and offering price per share $6.37
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1998
(Unaudited)
<TABLE>
<S> <C>
Investment Income
Dividends $ 219,584
Interest 11,723
Foreign taxes withheld (19,582)
-----------
Total investment income 211,725
-----------
Expenses
Investment advisory fee 59,556
Distribution fee--Class A 12,075
Distribution fee--Class B 21,766
Financial agent fee 41,337
Administration fee 10,510
Transfer agent 28,290
Custodian 26,392
Registration 18,078
Trustees 9,908
Printing 9,748
Professional 6,496
Miscellaneous 4,530
-----------
Total expenses 248,686
Less expenses borne by investment adviser (85,223)
-----------
Net expenses 163,463
-----------
Net investment income 48,262
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized loss on securities (723,516)
Net realized loss on foreign currency transactions (1,090)
Net change in unrealized appreciation (depreciation)
on investments (6,005,219)
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions (649)
-----------
Net loss on investments (6,730,474)
-----------
Net decrease in net assets resulting from
operations ($6,682,212)
===========
</TABLE>
6 See Notes to Financial Statements
<PAGE>
New Asia Series
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STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended From Inception
January 31, 1998 September 4, 1996
(Unaudited) to July 31, 1997
------------------ ------------------
<S> <C> <C>
From Operations
Net investment income $ 48,262 $ 86,832
Net realized loss (724,606) (134)
Net change in unrealized appreciation (depreciation) (6,005,868) 663,650
----------- -----------
Increase (decrease) in net assets resulting from operations (6,682,212) 750,348
----------- -----------
From Distributions to Shareholders
Net investment income--Class A (358,993) (52,987)
Net investment income--Class B (130,906) (15,128)
----------- -----------
Decrease in net assets from distributions to shareholders (489,899) (68,115)
----------- -----------
From Share Transactions
Class A
Proceeds from sales of shares (213,112 and 1,467,788 shares, respectively) 1,642,620 14,761,764
Net asset value of shares issued from reinvestment of distributions (54,456 and
4,967 shares, respectively) 341,985 49,716
Cost of shares repurchased (318,279 and 194,063 shares, respectively) (2,540,280) (1,936,251)
----------- -----------
Total (555,675) 12,875,229
----------- -----------
Class B
Proceeds from sales of shares (61,139 and 673,230 shares, respectively) 486,399 6,773,565
Net asset value of shares issued from reinvestment of distributions (18,908 and
1,408 shares, respectively) 118,368 14,076
Cost of shares repurchased (192,241 and 56,898 shares, respectively) (1,574,139) (573,887)
----------- -----------
Total (969,372) 6,213,754
----------- -----------
Increase (decrease) in net assets from share transactions (1,525,047) 19,088,983
----------- -----------
Net increase (decrease) in net assets (8,697,158) 19,771,216
Net Assets
Beginning of period 19,771,216 0
----------- -----------
End of period (including undistributed net investment income (loss) of
($369,493) and $72,144, respectively) $11,074,058 $19,771,216
=========== ===========
</TABLE>
See Notes to Financial Statements
7
<PAGE>
New Asia Series
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FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-------------------------------------------------
Six Months
Ended From Inception
1/31/98 9/4/96 to
(Unaudited) 7/31/97
------------------------ ------------------------
<S> <C> <C>
Net asset value, beginning of period $10.44 $10.00
Income from investment operations(8)
Net investment income 0.04(4)(5) 0.09(4) (5)
Net realized and unrealized gain (loss) (3.78) 0.41
------- -------
Total from investment operations (3.74) 0.50
------- -------
Less distributions
Dividends from net investment income (0.30) (0.06)
Dividends from net realized gains -- --
------- -------
Total distributions (0.30) (0.06)
------- -------
Change in net asset value (4.04) 0.44
------- -------
Net asset value, end of period $6.40 $10.44
======= =======
Total return(1) (35.75)%(3) 4.98%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $7,854 $13,355
Ratio to average net assets of:
Operating expenses 2.10%(2) 2.10%(2)
Net investment income 0.90%(2) 0.95%(2)
Portfolio turnover 21%(3) 9%(3)
Average commission rate paid(7) $0.0096 $0.0106
<CAPTION>
Class B
-------------------------------------------------
Six Months
Ended From Inception
1/31/98 9/4/96 to
(Unaudited) 7/31/97
------------------------ ------------------------
<S> <C> <C>
Net asset value, beginning of period $10.39 $10.00
Income from investment operations(8)
Net investment income 0.01(4)(6) 0.01(4)(6)
Net realized and unrealized gain (loss) (3.76) 0.43
------- -------
Total from investment operations (3.75) 0.44
------- -------
Less distributions
Dividends from net investment income (0.27) (0.05)
Dividends from net realized gains -- --
------- -------
Total distributions (0.27) (0.05)
------- -------
Change in net asset value (4.02) 0.39
------- -------
Net asset value, end of period $6.37 $10.39
======= =======
Total return(1) (36.10)%(3) 4.37%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $3,221 $6,416
Ratio to average net assets of:
Operating expenses 2.85%(2) 2.85%(2)
Net investment income 0.23%(2) 0.06%(2)
Portfolio turnover 21%(3) 9%(3)
Average commission rate paid(7) $0.0096 $0.0106
</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 $0.05
and $0.15, respectively.
(6) Includes reimbursement of operating expenses by investment adviser of $0.05
and $0.15, respectively.
(7) 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.
(8) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from anticipated
results depending on the timing of share purchases and redemptions.
8 See Notes to Financial Statements
<PAGE>
GLOBAL SMALL CAP SERIES
INVESTOR PROFILE
Phoenix-Aberdeen Global Small Cap Fund is designed for investors seeking
long-term capital appreciation. Investors should note that small company
investing involves added risks, including greater price volatility, less
liquidity and increased competitive threat. Foreign investment involves special
risks, such as currency fluctuation, less public disclosure and economic and
political risks.
INVESTMENT ADVISER'S REPORT
For the six-month reporting period ended January 31, 1998, Class A shares
had a negative 8.31% return and Class B shares were down 8.59% compared with a
negative return of 4.50% for the FT/S&P--Actuaries World Index of Medium/Small
Companies.* All performance figures assume reinvestment of dividends and
exclude the effect of sales charges.
The major event of the period under review was the collapse of many Asian
markets and currencies, which impacted stock markets and economies throughout
the world. A series of uneconomic projects in the region led to poor returns
and exacerbated by generally slowing economies, exposed the weakness of the
link to the U.S. dollar. Thailand was the first domino to fall, with Indonesia,
Malaysia and the Philippines following with amazing rapidity. In all cases
currencies fell sharply. Korea, where the mania for debt-laden corporate
expansion reached its zenith, also suffered badly before making a partial
recovery at the beginning of 1998. Our relatively high weighting in Southeast
Asia contributed significantly to the Fund's underperformance.
The U.S. market was essentially flat over the period. However, trading has
been very erratic with the market reaching record highs in October before
suffering a mild correction as investors were unnerved over the fallout from
the Asian crisis. The situation in Asia, however, may turn out to benefit the
U.S. as it will inevitably lead to a much needed slowdown in the economy,
reducing the threat of inflation and the likelihood of any interest rate
increases in the immediate future.
It was also a mixed and at times volatile period for the remainder of the
world's stock markets. In the U.K., GDP growth continues above its long-term
trend level. The service and consumer sectors continue to move ahead strongly
and manufacturing is making progress albeit more slowly. Despite the strength
of the sterling, exports are holding up well, as is domestic demand. Meanwhile
the recovery in the economies of Continental Europe has gathered momentum.
However, exports remain the main engine of growth, while consumer activity is
still fairly subdued.
In Japan, the government is finally doing the right thing to wipe away the
years of excesses. It is committed to fiscal restraint, which seems popular,
even though this leaves it short of options; interest rates are already at
record lows, so there is no room for monetary stimulus. Banks have at last been
allowed to take "prompt corrective action" on recognizing bad loans. Most
encouragingly, the government has allowed badly run companies to fail,
including 100-year-old Yamaichi Securities.
Latin markets had climbed to an all-time high by mid-October before
falling during the Asian currency crisis. Fiscal and monetary tightening in
Brazil will slow down the domestic economy; however, the market will primarily
be driven by the success of the country's ambitious privatization program. The
Mexican market should continue to be propelled by earnings growth caused by the
strong domestic recovery.
9
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------------------
OUTLOOK
Since the end of the period under review, we have seen a major recovery in
the markets of Southeast Asia, albeit from a very low base. This has stimulated
markets elsewhere, with U.S. and European markets reaching record highs.
Looking forward, we expect economic recovery in Asia should start to become
apparent in 1999 and that corporate earnings will be poor until then. It is
therefore important to focus upon the well-managed, well-financed companies
that will survive the next 18 months and emerge stronger as their competition
fails.
In the U.S. the January employment report showed that the economy is
stronger than expected despite the severe slowdown in Asia. U.S. stocks are
expected to make further gains as the economy continues to be strong enough to
keep sales and earnings rising throughout 1998. Interest rates are expected to
remain stable for the near future. In addition, the market continues to be
helped by ongoing merger and acquisition activity as well as large inflows to
mutual funds.
With dividend and earnings growth intact, high institutional liquidity and
the prospect of lower interest rates, we believe the UK can make good progress
in the course of 1998. European Monetary Union is still on track, and in 1998
the European economies should continue to improve. We also remain confident in
our outlook for European equity markets due to the continuing emphasis on
shareholder value, increased demand for equities and corporate activity.
* The FT/S&P--Actuaries World Index is a broad-based global market index,
covering countries in the Pacific Basin, Europe and the American markets; the
Medium/Small component consists of medium- to small-capitalization companies
in the World Index.
10
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------------------
INVESTMENTS AT JANUARY 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------------------ --------------------
<S> <C> <C>
COMMON STOCKS--92.0%
Argentina--0.6%
Disco SA Sponsored ADR (Retail-
Supermarkets) (b) .......................... 3,625 $ 148,625
SA Importadora y Exportadora Patagonia
Class B (Retail/Wholesale-Food) ............ 2,300 38,429
----------
187,054
----------
Australia--4.0%
BRL Hardy Limited (Beverages-Alcoholic) 247,500 915,976
Pacifica Group Limited (Auto/Truck-
Replacement Parts) ......................... 125,000 378,658
----------
1,294,634
----------
Belgium--0.9%
Lernout & Hauspie Speech Products NV
(Computer-Software) (b) .................... 5,000 294,375
----------
Brazil--0.6%
CIA Energetica Brasilia Preference
Non-Voting Shares (Electric Products-
Miscellaneous) ............................. 800,000 68,738
Centrais Electricas de Santa Catarina SA
Preference Class B (Utility-
Electric Power) ............................ 90,000 81,738
TV Filme, Inc. (Media-Cable TV) (b) .......... 8,000 38,000
----------
188,476
----------
Chile--0.3%
Santa Isabel SA Sponsored ADR
(Retail-Supermarkets) ...................... 4,500 83,813
----------
Denmark--1.4%
Sondagsavisen A/S (Media-Newspapers) ......... 9,850 459,547
----------
Finland--0.6%
Amer Group Ltd. Class A (Leisure-
Toys/Games/Hobby) (b) ...................... 9,900 181,538
----------
France--4.9%
Altran Technologies SA
(Telecommunications-Services) .............. 660 216,694
Coflexip SA Sponsored ADR (Oil & Gas-
Field Services) ............................ 5,000 237,500
Hyparlo SA (Retail-
Miscellaneous/Diversified) ................. 2,150 201,936
LVL Medical (Medical-Outpatient/Home
Care) ...................................... 2,310 264,129
Penauille Polyservices (Commercial
Services-Security/Safety) .................. 830 193,875
Picogiga (Electric-Semiconductor
Equipment) (b) ............................. 7,000 211,532
Societe Industrielle D'Aviations Latecoere
SA (Aerospace/Defense Equip.) .............. 2,310 270,544
----------
1,596,210
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------------------ --------------------
<S> <C> <C>
Germany--2.7%
Apcoa Parking AG (Commercial Services-
Miscellaneous) ............................. 3,000 $ 205,142
Loesch Umweltschutz AG (Pollution
Control-Equipment) ......................... 23,068 504,770
Puma AG (Retail-Apparel/Shoe) ................ 7,300 160,736
----------
870,648
----------
Hong Kong--1.2%
Giordano International Ltd. (Retail-
Apparel/Shoe) .............................. 751,000 194,094
Magician Industries Holding Ltd.
(Household-Housewares) ..................... 1,500,000 207,405
----------
401,499
----------
India--3.1%
Crompton Greaves Ltd. Sponsored GDR
RegS (Electric Products-Miscellaneous) (b) 155,000 271,250
Industrial Credit & Investment Corporation
of India Ltd. Sponsored GDR (Finance-
Investment Brokers) ........................ 60,000 750,000
----------
1,021,250
----------
Indonesia--0.7%
PT Bank Bali (Banks-Foreign) ................. 600,000 25,714
PT Duta Anggada Realty TBK
(Real Estate Development) .................. 550,000 5,238
PT Tigaraksa Satria (Retail-
Miscellaneous/Diversified) ................. 350,000 186,666
----------
217,618
----------
Ireland--0.6%
Saville Systems Ireland PLC Sponsored
ADR (Computer-Software) (b) ................ 5,000 203,750
----------
Israel--1.9%
Tadiran Ltd. (Telecommunications-
Equipment) ................................. 15,242 538,504
VocalTec Communications Ltd.
(Computer-Software) (b) .................... 3,500 70,875
----------
609,379
----------
Japan--4.4%
FCC Company Ltd. (Auto/Truck-
Replacement Parts) ......................... 35,000 400,237
Kawasumi Laboratories (Medical/Dental-
Supplies) .................................. 34,000 474,606
Nishio Rent All Co. (Commercial-Leasing
Companies) ................................. 31,000 322,713
Shinmei Electric (Electric-Miscellaneous
Components) ................................ 12,000 226,183
----------
1,423,739
----------
</TABLE>
See Notes to Financial Statements
11
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------------------ --------------------
<S> <C> <C>
Malaysia--0.2%
Asas Dunia Berhad (Real Estate
Development) ................................ 340,000 $ 54,483
----------
Mexico--0.5%
Industrias CH SA Series B (Steel-
Producers) (b) .............................. 33,000 125,213
Tekchem SA (Chemicals-Specialty) (b) .......... 182,000 34,206
----------
159,419
----------
Norway--0.8%
Tomra Systems ASA (Pollution Control-
Equipment) .................................. 12,600 254,391
----------
Singapore--3.7%
Industrial & Commercial Bank (Banks-
Foreign) .................................... 78,000 127,653
Robinson & Co. Ltd. (Retail-Department
Stores) ..................................... 168,000 489,225
Rothmans Industries Ltd. (Tobacco) ............ 120,000 594,059
----------
1,210,937
----------
Spain--2.2%
Adolfo Dominguez SA (Retail-
Apparel/Shoe) (b) ........................... 4,500 150,973
Catalana Occidente SA (Insurance-Multi-
Line) ....................................... 5,255 276,320
Corp. Financiera Reunida SA (Finance-
Investment Brokers) (b) ..................... 45,485 279,962
----------
707,255
----------
Sri Lanka--1.0%
John Keells Holdings (Diversified
Operation) (b) .............................. 40,000 170,120
National Development Bank Ltd.
(Banks-Foreign) (b) ......................... 48,000 154,217
----------
324,337
----------
Sweden--0.6%
Bure Investment Aktiebolaget (Finance-
Publicly Traded Investment Funds) ........... 15,000 209,053
----------
Switzerland--2.6%
Disetronic Holding AG (Medical-
Instruments) ................................ 80 184,061
Lindt & Spruengli AG (Food-
Confectionery) .............................. 15 299,370
SEZ Holding AG Registered A Shares
(Electric Products-Miscellaneous) ........... 200 352,399
----------
835,830
----------
Taiwan--2.9%
Standard Foods Taiwan Ltd. Sponsored
GDR RegS (Food-Flour & Grain) (b) ........... 92,925 938,543
----------
Thailand--0.1%
Bangkok First Investment & Trust Ltd.
(Finance-Investment Brokers) ................ 100,000 47,867
----------
United Kingdom--14.3%
Cedardata PLC (Computer-Software) ............. 100,000 246,893
DCS Group PLC (Computer-Software) ............. 90,000 531,965
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------------------ --------------------
<S> <C> <C>
United Kingdom--continued
GWR Group PLC (Media-Radio/TV) ................ 180,000 $ 504,742
Gerrard Group PLC (Finance-Investment
Brokers) .................................... 83,592 475,638
Gresham Computing PLC (Computer-
Software) ................................... 570,000 349,493
ILP Group PLC (Containers-Paper/Plastic) 210,000 132,194
JJB Sports PLC (Retail-Apparel/Shoe) .......... 110,000 1,263,489
Rolfe & Nolan PLC (Computer-Services) ......... 127,300 712,888
Wilmington Group PLC (Media-
Periodicals) ................................ 200,000 415,304
----------
4,632,606
----------
United States--35.2%
Banks--Southeast--0.2%
Compass Bankshares, Inc. ...................... 1,500 64,875
----------
Banks--Southwest--0.3%
Prime Bancshares, Inc. ........................ 4,000 84,000
----------
Commercial Services--Miscellaneous--2.3%
CMG Information Services, Inc. (b) ............ 3,700 134,125
CSG Systems International, Inc. (b) ........... 3,500 145,031
INSpire Insurance Solutions, Inc. (b) ......... 1,500 37,313
Staff Leasing, Inc. (b) ....................... 8,000 191,500
StaffMark, Inc. (b) ........................... 6,500 163,313
Syntel, Inc. (b) .............................. 6,000 90,000
----------
761,282
----------
Commercial Services--Schools--0.8%
Computer Learning Centers, Inc. (b) ........... 3,000 102,187
Sylvan Learning Systems, Inc. (b) ............. 4,000 158,000
----------
260,187
----------
Computer--Local Networks--0.3%
DAOU Systems, Inc. (b) ........................ 4,000 89,000
----------
Computer--Peripheral Equipment--0.6%
Information Management Resources, Inc. (b) 5,000 182,500
----------
Computer--Services--4.2%
At Home Corp. Series A (b) .................... 4,000 92,500
Ciber, Inc. (b) ............................... 4,500 252,563
Complete Business Solutions, Inc. (b) ......... 3,000 138,563
Computer Horizons Corp. (b) ................... 2,500 104,609
IDT Corp. (b) ................................. 5,300 133,825
Lycos, Inc. (b) ............................... 3,800 145,113
MindSpring Enterprises, Inc. (b) .............. 3,000 100,500
USWeb Corp. (b) ............................... 5,000 58,438
Whittman-Hart, Inc. (b) ....................... 1,800 52,200
Yahoo!, Inc. (b) .............................. 4,500 285,187
----------
1,363,498
----------
Computer--Software--3.6%
Advantage Learning Systems, Inc. (b) .......... 2,500 66,562
Arbor Software Corp. (Computer-
Software) (b) ............................... 4,000 151,500
BEA Systems, Inc. (b) ......................... 3,500 68,906
Citrix Systems, Inc. (b) ...................... 2,000 137,500
INTERSOLV, Inc. (b) ........................... 11,500 205,562
Legato Systems, Inc. (b) ...................... 5,000 229,688
NetSpeak Corp. (b) ............................ 4,000 90,000
Siebel Systems, Inc. (b) ...................... 4,100 201,925
----------
1,151,643
----------
</TABLE>
See Notes to Financial Statements
12
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------------------ --------------------
<S> <C> <C>
Electric Products--Miscellaneous--0.2%
Ballard Power Systems, Inc. (b) ............. 1,000 $ 71,000
----------
Electric--Miscellaneous Components--0.2%
Rambus, Inc. (b) ............................ 1,500 65,625
----------
Electric--Semiconductor Equipment--1.3%
Etec Systems, Inc. (b) ...................... 2,000 83,000
Novellus Systems, Inc. (b) .................. 4,000 144,250
Teradyne, Inc. (b) .......................... 5,000 197,500
----------
424,750
----------
Electric--Semiconductor Manufacturing--0.8%
Jabil Circuit, Inc. (b) ..................... 5,500 207,281
Semtech Corp. (b) ........................... 3,000 69,750
----------
277,031
----------
Finance--Equity REIT--0.7%
Crescent Real Estate Equities Co. ........... 4,000 140,500
SL Green Realty Corp. ....................... 3,500 97,562
----------
238,062
----------
Finance--Savings & Loan--0.6%
TCF Financial Corp. (b) ..................... 6,000 191,625
----------
Financial Services--Miscellaneous--0.3%
CheckFree Holdings Corp. (b) ................ 3,600 89,100
----------
Leisure--Services--0.4%
N2K, Inc. (b) ............................... 3,000 73,500
Preview Travel, Inc. (b) .................... 3,000 46,500
----------
120,000
----------
Medical--Biomed/Genetics--4.5%
Aviron (b) .................................. 11,000 282,563
Coulter Pharmaceutical, Inc. (b) ............ 8,000 160,000
Gilead Sciences, Inc. (b) ................... 4,000 162,000
Human Genome Sciences, Inc. (b) ............. 4,000 151,500
Hyseq, Inc. (b) ............................. 7,400 60,125
IDEC Pharmaceuticals Corp. (b) .............. 6,000 250,500
Immunex Corp. (b) ........................... 3,000 164,813
Protein Design Labs, Inc. (b) ............... 6,100 227,987
----------
1,459,488
----------
Medical--Drug/Diversified--1.3%
MedImmune, Inc. (b) ......................... 9,000 412,875
----------
Medical--Ethical Drugs--2.3%
Inhale Therapeutic Systems (b) .............. 5,000 161,875
PathoGenesis Corp. (b) ...................... 6,000 216,000
Theragenics Corp. (b) ....................... 7,700 372,487
----------
750,362
----------
Medical--Products--0.3%
Affymetrix, Inc. (b) ........................ 3,000 83,438
----------
Medical--Wholesale Drugs/Sundries--0.6%
Express Scripts, Inc. Class A (b) ........... 3,000 183,750
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------------------ --------------------
<S> <C> <C>
Medical/Dental--Supplies--0.7%
Cooper Companies, Inc. (b) .................. 4,400 $ 218,350
-----------
Oil & Gas--Field Services--1.2%
Friede Goldman International, Inc. (b) ...... 9,000 246,937
Pool Energy Services Co. (b) ................ 6,600 135,712
-----------
382,649
-----------
Oil & Gas--Machinery/Equipment--2.1%
Cooper Cameron Corp. (b) .................... 3,500 180,031
Dril-Quip, Inc. (b) ......................... 3,200 94,800
Gulf Island Fabrication, Inc. (b) ........... 10,400 217,750
Varco International, Inc. (b) ............... 10,000 205,000
-----------
697,581
-----------
Pollution Control--Equipment--0.4%
U.S. Filter Corp. (b) ....................... 4,000 130,000
-----------
Real Estate Operations--0.1%
LaSalle Partners, Inc. (b) .................. 200 6,663
Trammell Crow Co. (b) ....................... 1,000 26,625
-----------
33,288
-----------
Retail--Mail Order & Direct--0.4%
Amazon.com, Inc. (b) ........................ 2,500 147,500
-----------
Telecommunications--Equipment--0.9%
Coherent Communications Systems
Corp. (b) ................................. 2,100 56,175
Inter-Tel, Inc. ............................. 9,000 225,562
-----------
281,737
-----------
Telecommunications--Services--1.2%
MasTec, Inc. (b) ............................ 3,500 112,219
Mobile Telecommunication Technologies
Corp. (b) ................................. 6,000 135,375
Primus Telecommunications Group (b) ......... 4,000 73,000
STAR Telecommunications, Inc. (b) ........... 2,000 76,625
-----------
397,219
-----------
Transportation--Airline--1.7%
Alaska Air Group, Inc. (b) .................. 4,000 194,250
America West Holdings Corp. Class B (b) ..... 4,000 87,250
Midway Airlines Corp. (b) ................... 1,000 18,125
U.S. Airways Group, Inc. (b) ................ 4,000 243,750
-----------
543,375
-----------
Transportation--Equipment Manufacturing--0.5%
MotivePower Industries, Inc. (b) ............ 6,500 149,500
-----------
Transportation--Truck--0.2%
Jevic Transportation, Inc. (b) .............. 5,000 77,500
-----------
Total United States ................................................. 11,382,790
-----------
TOTAL COMMON STOCKS
(Identified cost $31,637,117) ....................................... 29,791,041
-----------
TOTAL LONG-TERM INVESTMENTS
(Identified cost $31,637,117) ....................................... 29,791,041
-----------
</TABLE>
See Notes to Financial Statements
13
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
------ ----------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--14.5%
Aubrey G. Lanston & Co., Inc.
repurchase agreement, 5.48%, dated
1/30/98 due 2/2/98, repurchase price
$4,702,146 collateralized by U.S.
Treasury Note 8.875%, 2/15/99,
market value $4,796,485 ............. $4,700 $4,700,000
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
-----------
<S> <C>
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $4,700,000) .................. $ 4,700,000
-----------
TOTAL INVESTMENTS--106.5%
(Identified cost $36,337,117) ................. 34,491,041(a)
Cash and receivables, less liabilities--(6.5%) (2,117,390)
-----------
NET ASSETS--100.0% .............................. $32,373,651
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $3,444,690 and gross
depreciation of $5,838,109 for federal income tax purposes. At January 31,
1998, the aggregate cost of securities for federal income tax purposes was
$36,884,460.
(b) Non-income producing.
See Notes to Financial Statements
14
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------------------
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Long-Term Investments
(Unaudited)
<TABLE>
<S> <C>
Aerospace/Defense Equip. .......................... 0.9%
Auto/Truck--Replacement Parts ..................... 2.6
Banks--Foreign .................................... 1.0
Banks--Southeast .................................. 0.2
Banks--Southwest .................................. 0.3
Beverages--Alcoholic .............................. 3.1
Chemicals--Specialty .............................. 0.1
Commercial Services--Miscellaneous ................ 3.2
Commercial Services--Schools ...................... 0.9
Commercial Services--Security/Safety .............. 0.7
Commercial--Leasing Companies ..................... 1.1
Computer--Local Networks .......................... 0.3
Computer--Peripheral Equipment .................... 0.6
Computer--Services ................................ 7.0
Computer--Software ................................ 9.6
Containers--Paper/Plastic ......................... 0.5
Diversified Operation ............................. 0.6
Electric Products--Miscellaneous .................. 2.6
Electric--Miscellaneous Components ................ 1.0
Electric--Semiconductor Equipment ................. 2.1
Electric--Semiconductor Manufacturing ............. 0.9
Finance--Equity REIT .............................. 0.8
Finance--Investment Brokers ....................... 5.2
Finance--Publicly Traded Investment Funds ......... 0.7
Finance--Savings & Loan ........................... 0.6
Financial Services--Miscellaneous ................. 0.3
Food--Confectionery ............................... 1.0
Food--Flour & Grain ............................... 3.2
Household--Housewares ............................. 0.7
Insurance--Multi-Line ............................. 0.9
Leisure--Services ................................. 0.4
Leisure--Toys/Games/Hobby ......................... 0.6
</TABLE>
<TABLE>
<S> <C>
Media--Cable TV ................................... 0.1%
Media--Newspapers ................................. 1.5
Media--Periodicals ................................ 1.4
Media--Radio/TV ................................... 1.7
Medical--Biomed/Genetics .......................... 4.9
Medical--Drug/Diversified ......................... 1.4
Medical--Ethical Drugs ............................ 2.5
Medical--Instruments .............................. 0.6
Medical--Outpatient/Home Care ..................... 0.9
Medical--Products ................................. 0.3
Medical--Wholesale Drugs/Sundries ................. 0.6
Medical/Dental--Supplies .......................... 2.3
Oil & Gas--Field Services ......................... 2.1
Oil & Gas--Machinery/Equipment .................... 2.3
Pollution Control--Equipment ...................... 3.0
Real Estate Development ........................... 0.2
Real Estate Operations ............................ 0.1
Retail--Apparel/Shoe .............................. 5.9
Retail--Department Stores ......................... 1.6
Retail--Mail Order & Direct ....................... 0.5
Retail--Miscellaneous/Diversified ................. 1.3
Retail--Supermarkets .............................. 0.8
Retail/Wholesale--Food ............................ 0.1
Steel--Producers .................................. 0.4
Telecommunications--Equipment ..................... 2.8
Telecommunications--Services ...................... 2.1
Tobacco ........................................... 2.0
Transportation--Airline ........................... 1.8
Transportation--Equipment Manufacturing ........... 0.5
Transportation--Truck ............................. 0.3
Utility--Electric Power ........................... 0.3
-----
100.0%
=====
</TABLE>
See Notes to Financial Statements
15
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1998
(Unaudited)
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $31,637,117) $29,791,041
Repurchase agreement
(Identified cost $4,700,000) 4,700,000
Cash 62,429
Receivables
Investment securities sold 429,234
Fund shares sold 12,691
Interest and dividends 10,766
Tax reclaim 2,109
-----------
Total assets 35,008,270
-----------
Liabilities
Payables
Investment securities purchased 2,404,170
Fund shares repurchased 95,696
Investment advisory fee 18,689
Distribution fee 16,020
Transfer agent fee 9,881
Financial agent fee 6,964
Administration fee 4,115
Trustees' fee 3,536
Accrued expenses 75,548
-----------
Total liabilities 2,634,619
-----------
Net Assets $32,373,651
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $36,082,503
Undistributed net investment loss (520,195)
Accumulated net realized loss (1,345,563)
Net unrealized depreciation (1,843,094)
-----------
Net Assets $32,373,651
===========
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $18,041,611) 1,981,966
Net asset value per share $9.10
Offering price per share
$9.10/(1-4.75%) $9.55
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $14,332,040) 1,585,913
Net asset value and offering price per share $9.04
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1998
(Unaudited)
<TABLE>
<S> <C>
Investment income
Dividends $ 177,217
Interest 110,651
Foreign taxes withheld (20,554)
-----------
Total investment income 267,314
-----------
Expenses
Investment advisory fee 159,649
Distribution fee--Class A 26,376
Distribution fee--Class B 82,319
Financial agent fee 41,337
Administration fee 28,173
Transfer agent 42,814
Custodian 38,199
Registration 24,885
Printing 17,805
Professional 16,360
Trustees 9,908
Miscellaneous 8,620
-----------
Total expenses 496,445
Less expenses borne by investment adviser (40,280)
-----------
Net expenses 456,165
-----------
Net investment loss (188,851)
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 2,944,047
Net realized loss on foreign currency transactions (10,787)
Net change in unrealized appreciation (depreciation)
on investments (6,065,402)
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions 2,677
-----------
Net loss on investments (3,129,465)
-----------
Net decrease in net assets resulting from
operations ($3,318,316)
===========
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended From Inception
January 31, 1998 September 4, 1996
(Unaudited) to July 31, 1997
------------------ ------------------
<S> <C> <C>
From Operations
Net investment loss $ (188,851) $ (172,876)
Net realized gain (loss) 2,933,260 (1,105,748)
Net change in unrealized appreciation (depreciation) (6,062,725) 4,219,631
----------- -----------
Increase (decrease) in net assets resulting from operations (3,318,316) 2,941,007
----------- -----------
From Distributions to Shareholders
Net investment income--Class A (128,166) --
Net investment income--Class B (40,370) --
Net realized gains--Class A (1,774,167) --
Net realized gains--Class B (1,459,865) --
----------- -----------
Decrease in net assets from distributions to shareholders (3,402,568) --
----------- -----------
From Share Transactions
Class A
Proceeds from sales of shares (138,463 and 2,544,464 shares, respectively) 1,471,540 26,115,134
Net asset value of shares issued from reinvestment of distributions (207,241 and
0 shares, respectively) 1,850,662 --
Cost of shares repurchased (517,764 and 390,438 shares, respectively) (5,418,577) (4,060,236)
----------- -----------
Total (2,096,375) 22,054,898
----------- -----------
Class B
Proceeds from sales of shares (88,857 and 1,768,033 shares, respectively) 922,059 18,246,161
Net asset value of shares issued from reinvestment of distributions (151,380 and
0 shares, respectively) 1,342,739 --
Cost of shares repurchased (259,006 and 163,351 shares, respectively) (2,605,820) (1,710,134)
----------- -----------
Total (341,022) 16,536,027
----------- -----------
Increase (decrease) in net assets from share transactions (2,437,397) 38,590,925
----------- -----------
Net increase (decrease) in net assets (9,158,281) 41,531,932
Net Assets
Beginning of period 41,531,932 0
----------- -----------
End of period (including undistributed net investment loss of ($520,195)
and ($162,808), respectively) $32,373,651 $41,531,932
=========== ===========
</TABLE>
See Notes to Financial Statements
17
<PAGE>
Global Small Cap Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-------------------------------------------------
Six Months
Ended From Inception
1/31/98 9/4/96 to
(Unaudited) 7/31/97
------------------------ ------------------------
<S> <C> <C>
Net asset value, beginning of period $11.08 $10.00
Income from investment operations
Net investment income (loss) (0.04)(4)(5) (0.03)(4)(5)
Net realized and unrealized gain (loss) (0.90) 1.11
------ ------
Total from investment operations (0.94) 1.08
------ ------
Less distributions
Dividends from net investment income (0.07) --
Dividends from net realized gains (0.97) --
------ ------
Total distributions (1.04) --
------ ------
Change in net asset value (1.98) 1.08
------ ------
Net asset value, end of period $9.10 $11.08
====== ======
Total return(1) (8.31)%(3) 10.80%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $18,042 $23,874
Ratio to average net assets of:
Operating expenses 2.10%(2) 2.10%(2)
Net investment income (loss) (0.68)%(2) (0.32)%(2)
Portfolio turnover 96%(3) 162%(3)
Average commission rate paid(7) $0.0119 $0.0127
<CAPTION>
Class B
-------------------------------------------------
Six Months
Ended From Inception
1/31/98 9/4/96 to
(Unaudited) 7/31/97
------------------------ ------------------------
<S> <C> <C>
Net asset value, beginning of period $11.00 $10.00
Income from investment operations
Net investment income (loss) (0.07)(4)(6) (0.10)(4)(6)
Net realized and unrealized gain (loss) (0.89) 1.10
------ ------
Total from investment operations (0.96) 1.00
------ ------
Less distributions
Dividends from net investment income (0.03) --
Dividends from net realized gains (0.97) --
------ ------
Total distributions (1.00) --
------ ------
Change in net asset value (1.96) 1.00
------ ------
Net asset value, end of period $9.04 $11.00
====== ======
Total return(1) (8.59)%(3) 10.00%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $14,332 $17,658
Ratio to average net assets of:
Operating expenses 2.85%(2) 2.85%(2)
Net investment income (loss) 1.43)%(2) (1.07)%(2)
Portfolio turnover 96%(3) 162%(3)
Average commission rate paid(7) $0.0119 $0.0127
</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
$0.01 and $0.05, respectively.
(6) Includes reimbursement of operating expenses by investment adviser of
$0.01 and $0.05, respectively.
(7) 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.
18 See Notes to Financial Statements
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
NOTES TO FINANCIAL STATEMENTS
January 31, 1998 (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 Fund 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. 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 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 Series is notified. Interest income is recorded on the accrual
basis. 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 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:
Each 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
19
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
NOTES TO FINANCIAL STATEMENTS
January 31, 1998 (Unaudited) (Continued)
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 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 Asset Management PLC (previously known as 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 at an annual rate 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, PAIA allocates certain assets of the Global Small Cap
Series for management by PIC. PAIA pays a sub-advisory fee to PIC at an annual
rate of 0.40% of the average daily net assets of the Global Small Cap Series so
allocated. PAIA also pays a sub-advisory fee to Aberdeen at an annual rate of
0.40% of the average net assets of the New Asia Series and 0.40% of the average
net assets of the Global Small Cap Series allocated to Aberdeen 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 1.00% of the average daily net
assets for Class A and Class B shares for each Series.
Phoenix Equity Planning Corporation ("PEPCO" or the "Distributor"), 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 $4,186 for Class A shares and deferred sales charges of
$83,005 for Class B shares for the six months ended January 31, 1998. 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 six months ended January 31, 1998, $115,450 was
retained by the Distributor, $21,592 was paid out to unaffiliated participants
and $5,494 was paid to W.S. Griffith, an indirect subsidiary of PHL.
As Financial Agent to the Fund and to each Series, PEPCO receives a fee
for bookkeeping and pricing services at an annual rate of 0.05% of average
daily net assets up to $100 million, 0.04% of average daily net assets of $100
million to $300 million, 0.03% of average daily net assets of $300 million
through $500 million, and 0.015% of average daily net assets greater than $500
million; a minimum fee may apply. 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 six months ended January 31, 1998,
transfer agent fees were $71,104 of which PEPCO retained $12,035 which is net
of fees paid to State Street.
20
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
NOTES TO FINANCIAL STATEMENTS
January 31, 1998 (Unaudited) (Continued)
At January 31, 1998, PHL and its affiliates held Fund shares which
aggregated the following:
<TABLE>
<CAPTION>
Aggregate
Shares Net Asset Value
--------- ----------------
<S> <C> <C>
New Asia Series Class A ..... 305,646 $1,956,136
New Asia Series Class B ..... 10,470 66,695
Global Small Cap Series
Class A .................. 547,011 4,977,802
Global Small Cap Series
Class B .................. 11,123 100,551
</TABLE>
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended January 31,
1998 (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 ............. $ 2,814,493 $ 4,005,207
Global Small Cap Series ..... 32,280,250 38,287,623
</TABLE>
There were no purchases or sales of long-term U.S. Government and agency
securities during the six months ended January 31, 1998.
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.
5. CAPITAL LOSS CARRYOVERS
At July 31, 1997, the Global Small Cap Series had a capital loss carryover
of $166,196, expiring in 2005, which may be used to offset future capital
gains.
Under current tax law, foreign currency and capital losses realized after
October 31, 1996, may be deferred and treated as occurring on the first day of
the following fiscal year. For the year ended July 31, 1997, the following
foreign currency and capital losses were deferred:
<TABLE>
<S> <C>
New Asia Series ................. $ 4,097
Global Small Cap Series ......... 777,042
</TABLE>
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.
21
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
101 Munson Street
Greenfield, MA 01301
Trustees
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
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
William J. Newman, Senior Vice President
Hugh Young, Senior Vice President
Shahreza Yusof, Senior Vice President
John D. Kattar, Vice President
William E. Keen, III, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
Julie L. Sapia, Vice President
Dorothy J. Skaret, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Clerk and Secretary
Investment Adviser
Phoenix-Aberdeen International Advisors, LLC
56 Prospect Street
Hartford, Connecticut 06115-0480
Principal Underwriter
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
Transfer Agent
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
How to Contact Us
<TABLE>
<S> <C>
Customer Service 1-800-243-1574 (option 0)
Automated Voice Response Unit 1-800-243-1574 (option 1)
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
</TABLE>
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Phoenix Funds
PO Box 2200
Enfield CT 06083-2200
[Phoenix Duff & Phelps Logo]
PDP 190 (3/98)
----------
BULK RATE MAIL
U.S. POSTAGE
PAID
SPRINGFIELD, MA
PERMIT NO. 444
----------
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 011
<NAME> PHOENIX-ABERDEEN NEW ASIA FUND CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-START> JUL-31-1997
<PERIOD-END> JAN-31-1998
<INVESTMENTS-AT-COST> 16403
<INVESTMENTS-AT-VALUE> 11062
<RECEIVABLES> 400
<ASSETS-OTHER> 75
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 11537
<PAYABLE-FOR-SECURITIES> 368
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 95
<TOTAL-LIABILITIES> 463
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 17504
<SHARES-COMMON-STOCK> 1228
<SHARES-COMMON-PRIOR> 1279
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (370)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (718)
<ACCUM-APPREC-OR-DEPREC> (5342)
<NET-ASSETS> 11074
<DIVIDEND-INCOME> 200
<INTEREST-INCOME> 12
<OTHER-INCOME> 0
<EXPENSES-NET> (164)
<NET-INVESTMENT-INCOME> 48
<REALIZED-GAINS-CURRENT> (724)
<APPREC-INCREASE-CURRENT> (6006)
<NET-CHANGE-FROM-OPS> (6682)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (359)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 213
<NUMBER-OF-SHARES-REDEEMED> (318)
<SHARES-REINVESTED> 54
<NET-CHANGE-IN-ASSETS> (5501)
<ACCUMULATED-NII-PRIOR> 72
<ACCUMULATED-GAINS-PRIOR> 6
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 60
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 249
<AVERAGE-NET-ASSETS> 13899
<PER-SHARE-NAV-BEGIN> 10.44
<PER-SHARE-NII> 0.04
<PER-SHARE-GAIN-APPREC> (3.78)
<PER-SHARE-DIVIDEND> (0.30)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 6.40
<EXPENSE-RATIO> 2.10
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 012
<NAME> PHOENIX-ABERDEEN NEW ASIA FUND CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-START> JUL-31-1997
<PERIOD-END> JAN-31-1998
<INVESTMENTS-AT-COST> 16403
<INVESTMENTS-AT-VALUE> 11062
<RECEIVABLES> 400
<ASSETS-OTHER> 75
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 11537
<PAYABLE-FOR-SECURITIES> 368
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 95
<TOTAL-LIABILITIES> 463
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 17504
<SHARES-COMMON-STOCK> 506
<SHARES-COMMON-PRIOR> 618
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (370)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (718)
<ACCUM-APPREC-OR-DEPREC> (5342)
<NET-ASSETS> 11074
<DIVIDEND-INCOME> 200
<INTEREST-INCOME> 12
<OTHER-INCOME> 0
<EXPENSES-NET> (164)
<NET-INVESTMENT-INCOME> 48
<REALIZED-GAINS-CURRENT> (724)
<APPREC-INCREASE-CURRENT> (6006)
<NET-CHANGE-FROM-OPS> (6682)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (131)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 61
<NUMBER-OF-SHARES-REDEEMED> (192)
<SHARES-REINVESTED> 19
<NET-CHANGE-IN-ASSETS> (3195)
<ACCUMULATED-NII-PRIOR> 72
<ACCUMULATED-GAINS-PRIOR> 6
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 60
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 249
<AVERAGE-NET-ASSETS> 13899
<PER-SHARE-NAV-BEGIN> 10.39
<PER-SHARE-NII> 0.01
<PER-SHARE-GAIN-APPREC> (3.76)
<PER-SHARE-DIVIDEND> (0.27)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 6.37
<EXPENSE-RATIO> 2.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 021
<NAME> PHOENIX-ABERDEEN GLOBAL SMALL CAP CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-START> JUL-31-1997
<PERIOD-END> JAN-31-1998
<INVESTMENTS-AT-COST> 36337
<INVESTMENTS-AT-VALUE> 34491
<RECEIVABLES> 455
<ASSETS-OTHER> 62
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 35008
<PAYABLE-FOR-SECURITIES> 2404
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 231
<TOTAL-LIABILITIES> 2635
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 36083
<SHARES-COMMON-STOCK> 1982
<SHARES-COMMON-PRIOR> 2154
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (520)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1346)
<ACCUM-APPREC-OR-DEPREC> (1843)
<NET-ASSETS> 32374
<DIVIDEND-INCOME> 157
<INTEREST-INCOME> 110
<OTHER-INCOME> 0
<EXPENSES-NET> (456)
<NET-INVESTMENT-INCOME> (189)
<REALIZED-GAINS-CURRENT> 2934
<APPREC-INCREASE-CURRENT> (6063)
<NET-CHANGE-FROM-OPS> (3318)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 128
<DISTRIBUTIONS-OF-GAINS> 1774
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 138
<NUMBER-OF-SHARES-REDEEMED> (518)
<SHARES-REINVESTED> 207
<NET-CHANGE-IN-ASSETS> (5832)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (163)
<OVERDIST-NET-GAINS-PRIOR> (1045)
<GROSS-ADVISORY-FEES> 159
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 496
<AVERAGE-NET-ASSETS> 37258
<PER-SHARE-NAV-BEGIN> 11.08
<PER-SHARE-NII> (0.04)
<PER-SHARE-GAIN-APPREC> (0.90)
<PER-SHARE-DIVIDEND> (0.07)
<PER-SHARE-DISTRIBUTIONS> (0.97)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.10
<EXPENSE-RATIO> 2.10
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 022
<NAME> PHOENIX-ABERDEEN GLOBAL SMALL CAP FUND CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-START> JUL-31-1997
<PERIOD-END> JAN-31-1998
<INVESTMENTS-AT-COST> 36337
<INVESTMENTS-AT-VALUE> 34491
<RECEIVABLES> 455
<ASSETS-OTHER> 62
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 35008
<PAYABLE-FOR-SECURITIES> 2404
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 231
<TOTAL-LIABILITIES> 2635
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 36083
<SHARES-COMMON-STOCK> 1586
<SHARES-COMMON-PRIOR> 1605
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (520)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1346)
<ACCUM-APPREC-OR-DEPREC> (1843)
<NET-ASSETS> 32374
<DIVIDEND-INCOME> 157
<INTEREST-INCOME> 110
<OTHER-INCOME> 0
<EXPENSES-NET> (456)
<NET-INVESTMENT-INCOME> (189)
<REALIZED-GAINS-CURRENT> 2934
<APPREC-INCREASE-CURRENT> (6063)
<NET-CHANGE-FROM-OPS> (3318)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 40
<DISTRIBUTIONS-OF-GAINS> 1460
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 89
<NUMBER-OF-SHARES-REDEEMED> (259)
<SHARES-REINVESTED> 151
<NET-CHANGE-IN-ASSETS> (3326)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (163)
<OVERDIST-NET-GAINS-PRIOR> (1045)
<GROSS-ADVISORY-FEES> 159
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 496
<AVERAGE-NET-ASSETS> 37258
<PER-SHARE-NAV-BEGIN> 11.00
<PER-SHARE-NII> (0.07)
<PER-SHARE-GAIN-APPREC> (0.89)
<PER-SHARE-DIVIDEND> (0.03)
<PER-SHARE-DISTRIBUTIONS> (0.97)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.04
<EXPENSE-RATIO> 2.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
