<PAGE>
Phoenix Investment Partners
Aberdeen
SEMIANNUAL REPORT
[LOGO] PHOENIX
INVESTMENT PARTNERS
JANUARY 31, 1999
PHOENIX-ABERDEEN
NEW ASIA FUND
PHOENIX-ABERDEEN
GLOBAL SMALL
CAP FUND
<PAGE>
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
[PHOTO]
PHILIP MCLOUGHLIN
We are pleased to provide you with this report for the Phoenix-Aberdeen funds
for the six months ended January 31, 1999.
The second half of the calendar year was a period of amazing volatility for
global stock markets. After European and U.S. markets had reached their peak in
early July, markets worldwide tumbled on a flood of bad news, completely wiping
out the year-to-date gains for many markets, and by early October, markets had
fallen to a one-year low. However, concerted worldwide action since that time
has resulted in recovery in global markets.
On the following pages, your fund managers review events of the past six
months and provide their outlook for the near term. We hope you find their
comments informative. If you have any questions, please contact your financial
advisor or call us at 1-800-243-4361.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
FEBRUARY 26, 1999
----------------------------------------------------
Mutual funds are not insured by the FDIC; are not
deposits or other obligations of a bank and are not
guaranteed by a bank; and are subject to investment
risks, including possible loss of the principal
invested.
----------------------------------------------------
1
<PAGE>
PHOENIX-ABERDEEN NEW ASIA SERIES
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund seeks long-term capital appreciation by investing primarily in a
diversified portfolio of equity securities in countries throughout Asia, with
the exception of Japan. The Fund essentially focuses on quality companies with
strong management, solid growth prospects and attractive relative valuations.
Investors should note that foreign investments pose added risks, such as
currency fluctuation, less public disclosure, as well as economic and political
risks.
Q: WHAT WAS THE FUND'S RETURN FOR THE LAST SIX MONTHS?
A: For the six months ended January 31, 1999, Class A shares returned 16.89% and
Class B shares returned 16.42% compared with a return of 16.79% for the Morgan
Stanley Capital International (MSCI) All Country (AC) Asia Pacific ex Japan
Index.(1) All performance figures assume reinvestment of distributions and
exclude the effect of sales charges.
Q: WHAT IS YOUR ASSESSMENT OF THE SITUATION IN ASIA?
A: In 1998 it became steadily clear that Asia as a whole was entering a sharp
downward trend after what had been a decade or so of tremendous growth. The
domino effect across the region, which started with Thailand, spread to China
and India. While both escaped the early vicissitudes of the currency crisis due
to the non-convertibility of their currencies, they had limited scope to avoid
the wider economic fallout.
Across the region, attention was focused on the International Monetary Fund
(IMF), whose initial recommendation was primarily aimed at stabilizing
currencies in the crisis-hit countries by following tight monetary and fiscal
policies. This led to a severe contraction in output and growing social unrest
in many countries. After being widely criticized for its prescriptions, the IMF
is now stressing the prevention of output contraction and is therefore
recommending a combination of loose monetary and fiscal policies.
Meanwhile, the policy response of governments around the region has been
varied. Korea and Thailand, two of the worst affected economies, have been
following policies set out by the IMF under newly elected democratic
governments. The solutions are obvious; e.g., the enforcement of a "clearing"
mechanism, such as an effective bankruptcy law and openness towards overseas
capital for takeovers, etc. The implementation of such "simple" solutions is,
however, impeded by cultural constraints--either unwillingness to break up cozy
ties between business and politics or a touch of xenophobia. Even China, which
has been relatively insulated from the effects of the regional financial crisis,
has moved to strengthen its financial sector. In a landmark move, the government
shut two trust and investment companies, GITIC and
GZTIC, which were unable to pay off their debts.
In contrast, the Malaysian government tried its best to stick its head in
the sand, imposing draconian capital controls. In Taiwan, the government
introduced new securities regulatory measures after the benchmark stock index
tumbled, and set
(1) THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) ALL COUNTRY (AC) ASIA
PACIFIC EX JAPAN INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF TOTAL
RETURN PERFORMANCE FOR PACIFIC BASIN COUNTRIES, WITH THE EXCEPTION OF JAPAN.
THE INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
2
<PAGE>
PHOENIX-ABERDEEN NEW ASIA SERIES (CONTINUED)
up a NT$200 billion stabilization fund to help prop up the stock market. And in
a surprise move, the Hong Kong government abandoned its hands-off policy as it
bought stocks and futures contacts in a defensive move against speculators.
Over the past few months, exchange rates have stabilized, leading to lower
interest rates across Asia. This has sparked off a rally in the equity and bond
markets. But is this relative steadiness sustainable? Exchange rate
stabilization, which has been partly achieved by accumulating current account
surpluses, in effect, came about on the back of import compression, not export
growth (exports in most countries have actually fallen in U.S. dollar terms). In
addition, the IMF's initial policy mix of tight monetary and fiscal policy has
killed off domestic economic activity. The priority now is to kick-start
domestic demand, as Asia can no longer rely on exports to pull itself out of its
mire.
Japan is in no position to absorb Asia's produce, while the U.S. has
predicted its trade deficit to reach a massive US$300 billion in 1999,
re-igniting fears of protectionism. Lower interest rates and higher government
spending alone will not spur growth. What the region needs is to get banks to
lend again. But this will not happen until the capital structures of both banks
and corporations are improved, and encouragingly, governments are taking steps
to recapitalize banks in countries such as Korea, Japan and Thailand.
Clearing mechanisms are also being put in place. The Korean Asset Management
Company, which buys assets from banks and finance companies, will hold the
country's first asset-backed securities sales; Thailand's Financial Sector
Restructuring Authority's property auction has been well-received; the majority
of Malaysian banks have finally cut a deal with regulators to sell their bad
debt; and even in well-managed Singapore, companies are planning to sell off
assets to strengthen their balance sheets. However, across Asia, a lot more
needs to be done--debt needs restructuring and corporations still need to
conduct major refocusing exercises. A good example is Korea, where conglomerates
are still resisting the government's call to downsize their bloated empires. In
addition, mergers and restructurings have not led to the closure of excess
capacity or the laying-off of workers. All this is being postponed as evidenced
by news that Korea Exchange Bank and Cho Hung Bank rehired almost all of their
workers.
Q: WHAT IS YOUR CURRENT OUTLOOK?
A: Restructuring and the closure of excess capacity should gradually lay the
foundation for an economic recovery. However, the socio-political aspect needs
to be handled with care. The bulk of the work force in these crisis-hit
countries, with virtually non-existent safety nets, has never before seen
economic contraction, unemployment and the resulting deterioration in living
standards. Long used to rising incomes and virtually full employment, these
people have excused corrupt leadership and cronyism. Indonesia, however, has
shown us that it will no longer tolerate corruption. The Suharto family's
wealth, accumulated through kickbacks, monopolies and preferential treatment, is
much resented, and attacks on the minority Chinese are symptomatic of popular
frustration at income inequality. Many of the bankrupt conglomerates, which have
all but collapsed the banking system, are linked to leading government members
and the ex-president's clan. We believe that even a year into the financial
crisis, Indonesia remains a flash point, as ethnic violence continues to rack
the nation. Hopefully, the result will be the emergence
3
<PAGE>
PHOENIX-ABERDEEN NEW ASIA SERIES (CONTINUED)
of effective, transparent and accountable governance in these countries, which
will benefit the high quality professional companies that survive the downturn.
We believe that China is another country that holds the key to the region's
stability. Although recent GDP growth figures showed the economy expanding at
7%, below the targeted growth of 8%, anecdotal evidence suggests that the real
economy is slowing at a more alarming pace. It is important for China to grow at
about 8% to be able to absorb the cost of restructuring the state-owned sector
and recapitalize the banking sector. In an attempt to maintain the growth level,
the government has ordered state-owned enterprises and local governments to
increase expenditure to boost demand. The risk is that the spending carried out
will contribute to the structural problems that the government is attempting to
tackle. It has also become apparent that the government's commitment to reform
in the state-owned enterprises is wavering. Senior leaders have called for a
more cautious approach to unemployment as well as pushing commercial banks to
resume lending to the moribund state-owned enterprises. But directed lending,
where banks are forced to make commercially non-viable investments, lies at the
heart of the problem banks face. Banking problems in China, and a possible
devaluation of the renminbi, would result in another round of volatility in
regional currencies.
We believe the safest and strongest country in which to invest is Singapore,
where the government has tremendous financial flexibility. The wild card, in our
opinion, is Indonesia, where, if the country survives, amazing value can be
found. We can see little sign that China will look after the underlying
shareholder, and we think Taiwan, which has some well-run companies, is simply
too expensive. In between, one has the whole range-- from India, offering solid,
relatively cheap companies (albeit with a rather stifling bureaucratic
environment), to Korea and Thailand, which have made all the right political
moves but where substance is still somewhat wanting. As stock pickers, nothing
in the environment beats "kicking the tires" and identifying value and
"survivability" at the company level. And, it is at this level, spread broadly
across the region, that we are finding some great value.
What we have seen over recent weeks, however, is a clear sign that there is
light at the end of the tunnel, and we believe that Asian stock markets,
generally, have seen their lows. The economic recovery, however, is unlikely to
be smooth and sharp--and indeed we would say that a sharp recovery would
actually be a bad thing, as it would lead to the postponement of necessary
reforms. Investors, therefore, should be cautiously optimistic.
FEBRUARY 10, 1999
4
<PAGE>
Phoenix-Aberdeen New Asia Fund
TEN LARGEST EQUITY HOLDINGS AT JANUARY 31, 1999 (AS A PERCENTAGE OF TOTAL NET
ASSETS)
<TABLE>
<C> <S> <C>
1. BRL Hardy Ltd. 5.1%
OWNS AND OPERATES VINEYARDS IN AUSTRALIA
2. National Mutual Asia Ltd. 4.6%
REGIONAL INSURANCE COMPANY OPERATING FROM HONG KONG
3. Rothmans Industries Ltd. 3.9%
MANUFACTURER AND DISTRIBUTOR OF CIGARETTES IN ASIA
4. QBE Insurance Group Ltd. 3.3%
REGIONAL INSURANCE COMPANY OPERATING FROM AUSTRALIA
5. Pohang Iron & Steel Co. Ltd. 3.2%
KOREAN STEEL PRODUCER FOR THE CONSTRUCTION AND SHIPPING INDUSTRIES
6. Hongkong Electric Holdings Ltd. 3.0%
PROVIDES ELECTRICITY FOR HONG KONG
7. BSES Ltd. GDR 2.9%
PROVIDES ELECTRICITY FOR BOMBAY AND ITS SUBURBS
8. Singapore Press Holdings Ltd. 2.9%
PUBLISHES, PRINTS AND DISTRIBUTES NEWSPAPERS AND MAGAZINES
9. Philippine Long Distance Telephone Co. Sponsored ADR 2.8%
LONG DISTANCE TELEPHONE PROVIDER
10. PT Indosat 2.8%
PROVIDES TELECOMMUNICATIONS SERVICES IN INDONESIA
</TABLE>
INVESTMENTS AT JANUARY 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------------ -----------
<S> <C> <C> <C>
FOREIGN COMMON STOCKS--96.7%
AUSTRALIA--17.5%
Australian Gas Light Co., Ltd. (Oil
(International Integrated))............. 25,000 $ 175,124
BRL Hardy Ltd. (Beverages
(Alcoholic))............................ 127,500 493,425
Commonwealth Bank of Australia (Banks
(Major Regional))....................... 11,000 165,318
Leighton Holdings Ltd. (Engineering &
Construction)........................... 40,000 162,088
Pacifica Group Ltd. (Manufacturing
(Diversified)).......................... 60,000 174,527
QBE Insurance Group Ltd. (Insurance
(Property-Casualty)).................... 80,000 319,250
Telstra Corp. Ltd. (Communications
Equipment).............................. 38,000 206,266
-----------
1,695,998
-----------
HONG KONG--18.8%
CDL Hotels International Ltd.
(Lodging-Hotels)........................ 900,000 200,935
Citybus Group Ltd. (Services (Commercial
& Consumer))............................ 700,000 166,220
Giordano International Ltd. (Retail
(Specialty-Apparel)).................... 799,000 192,821
Hongkong Electric Holdings Ltd.
(Electric Companies).................... 100,000 292,949
Johnson Electric Holdings Ltd.
(Electronics (Component
Distributors)).......................... 65,000 158,961
National Mutual Asia Ltd. (Insurance
(Multi-Line))........................... 600,000 449,103
Smartone Telecommunications
(Telecommunications
(Cellular/Wireless)).................... 51,000 152,037
Swire Pacific Ltd. Class B (Diversified
Miscellaneous)(b)....................... 325,000 209,710
-----------
1,822,736
-----------
<CAPTION>
SHARES VALUE
------------ -----------
<S> <C> <C> <C>
INDIA--10.0%
BSES Ltd. GDR (Diversified
Miscellaneous).......................... 22,000 $ 286,000
ICICI Ltd. Sponsored GDR (Financial
(Diversified)).......................... 25,000 156,250
Mahanagar Telephone Nigam Ltd. Sponsored
GDR (Telephone)......................... 24,000 268,200
Ranbaxy Laboratories Ltd. GDR (Health
Care (Drugs-Major Pharmaceuticals))..... 26,000 263,250
-----------
973,700
-----------
INDONESIA--3.2%
PT Indosat (Telecommunications
(Cellular/Wireless)).................... 220,000 274,078
PT Indosat ADR (Telecommunications
(Cellular/ Wireless))................... 3,000 36,375
-----------
310,453
-----------
MALAYSIA--5.8%
Carlsberg Brewery Malaysia Berhad
(Beverages (Alcoholic))(c).............. 75,000 179,276
Malaysian Oxygen Berhad
(Chemicals)(c).......................... 95,000 152,083
Sime UEP Properties Berhad (Real Estate
Development)(c)......................... 271,000 228,211
-----------
559,570
-----------
NEW ZEALAND--2.5%
Telecom Corporation of New Zealand Ltd.
(Telecommunications
(Cellular/Wireless)).................... 50,000 241,177
PHILIPPINES--9.3%
Ayala Land, Inc. (Real Estate
Development)............................ 840,000 256,363
Bank of The Philippine Islands (Banks
(Major Regional))....................... 90,000 224,415
La Tondena Distillers, Inc. (Beverages
(Alcoholic))............................ 200,000 148,052
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Aberdeen New Asia Fund
<TABLE>
<CAPTION>
SHARES VALUE
------------ -----------
<S> <C> <C> <C>
PHILIPPINES--CONTINUED
Philippine Long Distance Telephone Co.
Sponsored ADR (Telephone)............... 12,000 $ 276,000
-----------
904,830
-----------
SINGAPORE--14.0%
Chemical Industries (Far East) Ltd.
(Chemicals)............................. 100,000 94,547
Clipsal Industries (Holdings) Ltd.
(Electrical Equipment).................. 150,000 142,500
Robinson & Co. Ltd. (Retail (Department
Stores))................................ 80,000 217,457
Rothmans Industries Ltd. (Tobacco)...... 60,000 379,368
Singapore Press Holdings Ltd.
(Publishing (Newspapers))............... 25,200 285,908
United Overseas Bank Ltd. (Banks (Money
Center))................................ 40,000 238,730
-----------
1,358,510
-----------
SOUTH KOREA--3.2%
Pohang Iron & Steel Co. Ltd. (Iron &
Steel).................................. 5,000 312,156
SRI LANKA--2.6%
John Keells Holdings Ltd. (Diversified
Miscellaneous)(b)....................... 40,000 116,110
National Development Bank Ltd. (Banks
(Major Regional))(b).................... 75,000 134,978
-----------
251,088
-----------
TAIWAN--1.8%
Standard Foods Taiwan Ltd. Sponsored GDR
(Foods)(b).............................. 31,001 175,929
THAILAND--4.3%
Phatra Insurance Public Co. Ltd. Foreign
(Insurance (Multi-Line))................ 73,700 195,469
Ruam Pattana Fund II (Financial
(Diversified))(b)....................... 1,500,000 227,334
-----------
422,803
-----------
UNITED KINGDOM--3.7%
HSBC Holdings PLC (Banks (Money
Center))................................ 7,200 179,332
Rowe Evans Investments Group PLC
(Agricultural Products)................. 200,000 175,779
-----------
355,111
-----------
- -------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $12,042,419) 9,384,061
- -------------------------------------------------------------------------------
<CAPTION>
SHARES VALUE
------------ -----------
<S> <C> <C> <C>
RIGHTS--0.1%
MALAYSIA--0.1%
Muhibbah Engineering Berhad Rights
(Engineering & Construction)(b)(c)...... 150,000 $ 5,921
- -------------------------------------------------------------------------------
TOTAL RIGHTS
(IDENTIFIED COST $73,490) 5,921
- -------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--96.8%
(IDENTIFIED COST $12,115,909) 9,389,982
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
------ ------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--3.1%
REPURCHASE AGREEMENT--3.1%
Credit Suisse repurchase agreement,
4.68% dated 1/29/99 due 2/1/99,
repurchase price $300,117,
collateralized by U.S. Treasury Note
6.25%, 8/31/02, market value $307,528... $ 300 300,000
- --------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $300,000) 300,000
- --------------------------------------------------------------------------
TOTAL INVESTMENTS--99.9%
(IDENTIFIED COST $12,415,909) 9,689,982(a)
Cash and receivables, less liabilities--0.1% 8,657
------------
NET ASSETS--100.0% $ 9,698,639
------------
------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $941,859 and gross
depreciation of $3,818,911 for federal income tax purposes. At January 31,
1999, the aggregate cost of securities for federal income tax purposes was
$12,567,034.
(b) Non-income producing.
(c) Security valued at fair value as determined in good faith by or under the
direction of the Trustees.
6 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen New Asia Fund
INDUSTRY DIVERSIFICATION
AS A PERCENTAGE OF TOTAL VALUE OF TOTAL LONG-TERM INVESTMENTS
(UNAUDITED)
<TABLE>
<S> <C>
Agricultural Products............................................ 1.9%
Banks (Major Regional)........................................... 5.6
Banks (Money Center)............................................. 4.4
Beverages (Alcoholic)............................................ 8.7
Chemicals........................................................ 2.6
Communications Equipment......................................... 2.2
Diversified Miscellaneous........................................ 6.5
Electric Companies............................................... 3.1
Electrical Equipment............................................. 1.5
Electronics (Component Distributors)............................. 1.7
Engineering & Construction....................................... 1.8
Financial (Diversified).......................................... 4.1
Foods............................................................ 1.9
Health Care (Drugs-Major Pharmaceuticals)........................ 2.8
Insurance (Multi-Line)........................................... 6.9
Insurance (Property-Casualty).................................... 3.4
Iron & Steel..................................................... 3.3
Lodging-Hotels................................................... 2.1
Manufacturing (Diversified)...................................... 1.9
Oil (International Integrated)................................... 1.9
Publishing (Newspapers).......................................... 3.0
Real Estate Development.......................................... 5.2
Retail (Department Stores)....................................... 2.3
Retail (Specialty-Apparel)....................................... 2.1
Services (Commercial & Consumer)................................. 1.8
Telecommunications (Cellular/Wireless)........................... 7.5
Telephone........................................................ 5.8
Tobacco.......................................................... 4.0
------
100.0%
------
------
</TABLE>
See Notes to Financial Statements 7
<PAGE>
New Asia Series
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $12,415,909) $ 9,689,982
Cash 74,653
Foreign currency at value
(Identified cost $27,752) 27,752
Receivables
Investment securities sold 63,670
Receivable from adviser 11,734
Dividends and interest 5,317
Fund shares sold 1,141
Tax reclaim 112
Prepaid expense 187
--------------
Total assets 9,874,548
--------------
LIABILITIES
Payables
Fund shares repurchased 54,511
Transfer agent fee 11,148
Trustees' fee 9,090
Distribution fee 3,889
Financial agent fee 2,797
Administration fee 2,439
Accrued expenses 92,035
--------------
Total liabilities 175,909
--------------
NET ASSETS $ 9,698,639
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 16,477,686
Undistributed net investment loss (127,074)
Accumulated net realized loss (3,925,594)
Net unrealized depreciation (2,726,379)
--------------
NET ASSETS $ 9,698,639
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $6,884,897) 1,094,596
Net asset value per share $6.29
Offering price per share $6.29/(1-4.75%) $6.60
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,813,742) 450,896
Net asset value and offering price per share $6.24
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 134,144
Interest 11,328
Foreign taxes withheld (4,510)
-----------
Total investment income 140,962
-----------
EXPENSES
Investment advisory fee 37,998
Distribution fee, Class A 7,901
Distribution fee, Class B 13,101
Financial agent fee 16,571
Custodian 29,083
Transfer agent 27,867
Registration 13,502
Trustees 10,790
Printing 10,683
Professional 9,110
Administration fee 6,705
Miscellaneous 3,903
-----------
Total expenses 187,214
Less expenses borne by investment adviser (83,512)
-----------
Net expenses 103,702
-----------
NET INVESTMENT INCOME 37,260
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (1,135,416)
Net realized loss on foreign currency transactions (897)
Net change in unrealized appreciation (depreciation) on investments 2,488,080
Net change in unrealized appreciation (depreciation) on foreign
currency and foreign currency transactions 316
-----------
NET GAIN ON INVESTMENTS 1,352,083
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 1,389,343
-----------
-----------
</TABLE>
8 See Notes to Financial Statements
<PAGE>
New Asia Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
January 31, 1999 Year Ended
(Unaudited) July 31, 1998
----------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 37,260 $ 84,661
Net realized gain (loss) (1,136,313) (2,539,602)
Net change in unrealized appreciation
(depreciation) 2,488,396 (5,878,425)
----------------- -------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,389,343 (8,333,366)
----------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (73,460) (119,514)
Net investment income, Class B (19,348) (43,580)
In excess of net investment income,
Class A -- (239,479)
In excess of net investment income,
Class B -- (87,326)
----------------- -------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (92,808) (489,899)
----------------- -------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (315,192
and 568,922 shares, respectively) 1,817,256 3,994,745
Net asset value of shares issued from
reinvestment of distributions
(11,699 and
54,456 shares, respectively) 71,364 341,985
Cost of shares repurchased (398,854
and 735,511 shares, respectively) (2,299,980) (5,284,710)
----------------- -------------
Total (411,360) (947,980)
----------------- -------------
CLASS B
Proceeds from sales of shares (39,126
and 146,419 shares, respectively) 219,999 1,054,677
Net asset value of shares issued from
reinvestment of distributions (2,871
and
18,909 shares, respectively) 17,372 118,368
Cost of shares repurchased (101,275
and 272,894 shares, respectively) (532,345) (2,064,578)
----------------- -------------
Total (294,974) (891,533)
----------------- -------------
DECREASE IN NET ASSETS FROM SHARE
TRANSACTIONS (706,334) (1,839,513)
----------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS 590,201 (10,662,778)
NET ASSETS
Beginning of period 9,108,438 19,771,216
----------------- -------------
END OF PERIOD [INCLUDING ACCUMULATED
NET INVESTMENT LOSS AND
DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME OF ($127,074) AND
($71,526), RESPECTIVELY] $9,698,639 $ 9,108,438
----------------- -------------
----------------- -------------
</TABLE>
See Notes to Financial Statements 9
<PAGE>
New Asia Series
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
Class A
--------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
1/31/99 YEAR ENDED 9/4/96 TO
(UNAUDITED) 7/31/98 7/31/97
---------- ---------- ----------
<S> <C> <C> <C>
Net asset value, beginning of period $ 5.45 $ 10.44 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.03(4)(5) 0.06(4)(5) 0.09(4)(5)(7)
Net realized and unrealized gain
(loss) 0.88 (4.75) 0.41
---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS 0.91 (4.69) 0.50
---------- ---------- ----------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.07) (0.10) (0.06)
In excess of net investment income -- (0.20) --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.07) (0.30) (0.06)
---------- ---------- ----------
Change in net asset value 0.84 (4.99) 0.44
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 6.29 $ 5.45 $ 10.44
---------- ---------- ----------
---------- ---------- ----------
Total return(1) 16.89%(3) (45.29)% 4.98%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $6,885 $6,352 $13,355
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.10%(2) 2.10% 2.10%(2)
Net investment income 1.04%(2) 0.89% 0.95%(2)
Portfolio turnover 8%(3) 44% 9%(3)
</TABLE>
<TABLE>
<CAPTION>
Class B
----------------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
1/31/99 YEAR ENDED 9/4/96 TO
(UNAUDITED) 7/31/98 7/31/97
---------- ---------- ------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 5.40 $ 10.39 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.01(4)(6) 0.01(4)(6) 0.01(4)(6)(7)
Net realized and unrealized gain
(loss) 0.87 (4.73) 0.43
---------- ---------- -----
TOTAL FROM INVESTMENT
OPERATIONS 0.88 (4.72) 0.44
---------- ---------- -----
LESS DISTRIBUTIONS
Dividends from net investment
income (0.04) (0.09) (0.05)
In excess of net investment income -- (0.18) --
---------- ---------- -----
TOTAL DISTRIBUTIONS (0.04) (0.27) (0.05)
---------- ---------- -----
Change in net asset value 0.84 (4.99) 0.39
---------- ---------- -----
NET ASSET VALUE, END OF PERIOD $ 6.24 $ 5.40 $ 10.39
---------- ---------- -----
---------- ---------- -----
Total return(1) 16.42%(3) (45.83)% 4.37%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $2,814 $2,756 $6,416
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.85%(2) 2.85% 2.85%(2)
Net investment income 0.33%(2) 0.18% 0.06%(2)
Portfolio turnover 8%(3) 44% 9%(3)
</TABLE>
(1) Maximum sales charges are not reflected in the total calculation.
(2) Annualized
(3) Not annualized
(4) Computed using average shares outstanding.
(5) Includes reimbursement of operating expenses by investment adviser of
$0.05, $0.10 and $0.15, respectively.
(6) Includes reimbursement of operating expenses by investment adviser of
$0.05, $0.10 and $0.15, respectively.
(7) 1997 distributions were 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.
10
See Notes to Financial Statements
<PAGE>
PHOENIX-ABERDEEN GLOBAL SMALL CAP FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund seeks long-term capital appreciation by investing primarily in a
globally diversified portfolio of equity securities of small and medium sized
companies. A healthy financial structure and solid fundamental prospects will be
sought, but given the limited operating history of smaller companies, in certain
situations some of the above factors will not be available or remain to be
proven. Investors should note that foreign investments pose added risks, such as
currency fluctuation, less public disclosure, as well as economic and political
risks. Investors should note that small company investing involves added risks,
including greater price volatility, less liquidity and increased competitive
threat.
Q: HOW DID THE FUND PERFORM DURING THIS VOLATILE MARKET ENVIRONMENT?
A: For the six months ended January 31, 1999, Class A shares returned (6.04)%
and Class B shares returned (6.31)% compared with a return of 4.05% for the
Fund's benchmark index, the FT/ S&P--Actuaries World Index of Medium/Small
Companies(1). All performance figures assume reinvestment of distributions and
exclude the effect of sales charges.
Q: WHAT FACTORS MOST AFFECTED PERFORMANCE?
A: The second half of the calendar year was a period of amazing volatility for
global stock markets. After European and U.S. markets reached their peak in
early July, markets worldwide tumbled on a flood of bad news. The initial
catalyst for the dramatic downturn was the financial crisis in Russia, where the
ruble collapsed. Nervousness spread to other markets, particularly Latin
America, where it was feared that Brazil was the next in line to devalue. All of
the region's currencies came under intense pressure; interest rates soared; and
equity markets plunged more than 50% in less than two months. Confirmation that
Japan was suffering its worst economic slump since 1945 added to international
market worries and lay to rest hopes for a rebound in Asian markets. The crash
of the Russian ruble, and the severe downturn in worldwide markets also put many
hedge funds in severe financial difficulties and the announcement that U.S.
hedge fund manager Long-Term Capital Management LP had been bailed out to the
extent of $3.5 billion sent shockwaves through the financial community.
All this bad news completely wiped out the year-to-date gains for many
markets, and by early October, markets had fallen to a one-year low. However,
concerted worldwide action since that time resulted in recovery in global
markets as stocks rose on expectations that corporate profits would benefit from
lower interest rates. Much of the credit must be given to the U.S. Federal
Reserve, which cut interest rates three times in seven weeks to ensure that the
U.S. economy did not slide into recession. We have also seen cuts in European
interest rates, and the Japanese government announced a major package to
stimulate its failing economy. Markets in Southeast Asia also showed signs of
recovery, with the perception being that the worst is now over for that region.
(1) THE FT/S&P--ACTUARIES WORLD INDEX IS AN UNMANAGED, COMMONLY USED BROAD
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. THE INDEX IS NOT
AVAILABLE FOR DIRECT INVESTMENT.
11
<PAGE>
PHOENIX-ABERDEEN GLOBAL SMALL CAP FUND (CONTINUED)
However, the New Year started badly for many emerging markets, particularly in
Latin America, where the devaluation of the Brazilian currency renewed concerns
over the region's financial stability.
Q: WHICH AREAS OF THE PORTFOLIO PERFORMED WELL AND WHICH PERFORMED POORLY DURING
THE PERIOD?
A: In the United States, our technology holdings benefited from the surge in
share prices in that sector, with the most notable success being our holding in
Emulex, a networking company which more than doubled in value. General
Instruments, which develops digital systems, and Com 21, which provides
high-speed communications for the broadband access market, also performed
exceptionally well. However, outside the technology area, the overall
performance for U.S. smaller companies in the portfolio was lackluster. In the
UK, substantial gains were made from our holdings in stockbroker Charles Stanley
and software company Gresham Computing, but these gains were partly offset by
disappointing returns from sporting goods retailer JJB Sports and Rolfe & Nolan,
a computer services company. A similar mixed pattern was seen in Europe where
companies, such as Danish newspaper publisher Sondagsavisen, continued to
flourish, while at the same time our Swedish holdings languished. In Japan, our
relatively low weighting has been justified as smaller companies have struggled
amid little evidence of a recovery of the domestic economy. Elsewhere in Asia,
our holdings in Singapore have bounced back well, while in Latin America, the
general malaise that affected the region has adversely impacted our holdings.
Q: WHAT IS THE OUTLOOK FOR WORLDWIDE MARKETS, PARTICULARLY FOR SMALLER
COMPANIES?
A: While the manufacturing sector continues under pressure in most countries,
consumer confidence is rebounding once again in a number of economies,
suggesting still relatively buoyant consumer spending. Merger and acquisition
activity, liquidity, momentum and a consumer-led domestic economy, which is so
far proving more resilient than most commentators expected, have provided
powerful supports for the U.S. market, where the main indices are again reaching
record highs. However, investors' desire to chase stocks ever higher may well
cool and the chance of another sell-off in the first half of 1999 remains high,
particularly if corporate earnings disappoint. The Federal Reserve again decided
to leave interest rates unchanged at their first meeting of the year, and it is
unlikely that we will see any further cuts early in 1999. Indeed, the surprising
continued strength of the U.S. economy is an indication that the next interest
rate move may well be upward. Technology stocks have seen sharp rises, and there
are questions of whether we are witnessing structural or cyclical growth in that
sector. Technology sector earnings could prove relatively immune to a downturn
in the economic cycle; however, there is a danger from overoptimism. Meanwhile,
investors are looking for sector confidence and are prepared to accept high
multiples in exchange for earnings certainty.
The rally in the UK has returned it to a level that is above most revised
expectations for this year, and only around 10-12% below the more optimistic
forecasts for next year. However, it is the excellent technical position that
provides the strongest support, together with the likelihood of further monetary
easing in the UK. Economic
12
<PAGE>
PHOENIX-ABERDEEN GLOBAL SMALL CAP FUND (CONTINUED)
growth forecasts, meanwhile, remain under pressure and will clearly impact
further on earnings expectations. As with the UK, Continental Europe appears
less at risk than the U.S. from a valuation perspective, even given the degree
to which perceptions surrounding Europe's economic growth and earnings prospects
have deteriorated since the tremendous rally earlier in the year. We believe
that additional rate cuts are on the agenda for early 1999, which should offset
any concerns over the launch of the euro.
In the Far East, sentiment toward Japan is improving, with fund managers
becoming increasingly nervous of their generally underweight positions in the
stock market and currency. There is growing optimism about the economy and
banking system following the government's recent measures, but this may be due
more to the hope that this will prevent imminent free-fall than belief that the
plans solve Japan's structural problems. Further short-term support for the
stock market may emerge from an eventual deal between the LDP and Liberals to
suspend the sales tax. Elsewhere in Asia, currencies have stabilized and
interest rates have fallen. A protracted recovery is likely, provided that there
is no worsening of the U.S. and Japanese economies.
In Latin America, in a surprise move in early January, Brazilian authorities
decided to float the REAL, triggering a 40% fall in the currency by month's end.
The move has caused interest rates to rise throughout Latin America, dampening
the outlook for growth in 1999. However, valuations are now at historic lows and
Latin equities could get a boost from an improving interest rate environment.
Overall, the scale of recent rallies suggests that a period of consolidation
is due. The U.S. will set the trends for other equity markets and a soft
landing, very low inflation, falling interest rates and steady earnings growth
are a possibility. Smaller companies have lagged behind their larger
counterparts for several years now, but with relative valuations at levels more
attractive than ever, the long-awaited revival of smaller companies may not be
far off.
FEBRUARY 10, 1999
13
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
TEN LARGEST HOLDINGS AT JANUARY 31, 1999 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. Charles Stanley Group PLC 6.3%
OFFERS STOCK BROKERING AND INVESTMENT MANAGEMENT SERVICES IN THE UK
2. Gresham Computing PLC 5.0%
DEVELOPS AND SELLS COMPUTER SOFTWARE IN THE UK
3. S&P 500 Depository Receipts 2.0%
UNIT INVESTMENT TRUST INTENDED TO TRACK THE PERFORMANCE OF THE S&P
500
4. Kawasumi Laboratories, Inc. 2.0%
JAPANESE MANUFACTURER OF MEDICAL EQUIPMENT
5. Wilmington Group PLC 1.9%
UK PUBLISHER OF PERIODICALS AND DIRECTORIES
6. NetCom ASA 1.8%
PROVIDES CELLULAR TELEPHONE SERVICES IN NORWAY
7. Rapala Normark Corp. 1.8%
FINNISH MANUFACTURER OF FISHING AND HUNTING EQUIPMENT
8. KM Europa Metal AG 1.6%
MANUFACTURES AND MARKETS COPPER PRODUCTS IN GERMANY
9. FCC Company Ltd. 1.6%
JAPANESE MAKER OF MOTORCYCLE CLUTCHES FOR HONDA AND SUZUKI
10. NH Hoteles SA 1.6%
SPANISH LEISURE COMPANY WITH INTERESTS IN THE HOTEL AND WINE
SECTORS
</TABLE>
INVESTMENTS AT JANUARY 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------------ ------------
<S> <C> <C> <C>
COMMON STOCKS--32.4%
UNITED STATES--32.4%
AFC Cable Systems, Inc. (Electrical
Equipment)(b)........................... 3,000 $ 105,750
ALZA Corp. (Health Care (Specialized
Services))(b)........................... 4,500 227,531
ANTEC Corp. (Communications
Equipment)(b)........................... 5,000 111,250
Amkor Technology, Inc. (Electronics
(Semiconductors))(b).................... 5,000 57,812
Autodesk, Inc. (Computers (Software &
Services)).............................. 2,000 88,375
Bank United Corp. Class A (Savings &
Loan Companies)......................... 3,000 120,000
Best Buy Co., Inc. (Retail (Computers &
Electronics))(b)........................ 2,000 181,500
Black Box Corp. (Computers
(Networking))(b)........................ 4,300 157,756
C-Cube Microsystems, Inc.
(Communications Equipment)(b)........... 10,000 201,250
CHS Electronics, Inc. (Computers
(Hardware))(b).......................... 9,000 134,437
Catalina Marketing Corp. (Services
(Advertising/ Marketing))(b)............ 2,000 133,500
Cell Genesys, Inc. (Biotechnology)(b)... 30,000 179,062
Charter One Financial, Inc. (Savings &
Loan Companies)......................... 7,000 196,000
Chicago Title Corp. (Insurance
(Property-Casualty)).................... 2,000 86,750
Claire's Stores, Inc. (Retail
(Specialty))............................ 8,000 158,000
Com21, Inc. (Communications
Equipment)(b)........................... 5,000 137,500
Corning, Inc. (Manufacturing
(Diversified)).......................... 1,500 73,125
Crown Castle International Corp.
(Telecommunications
(Cellular/Wireless))(b)................. 9,200 198,950
Dallas Semiconductor Corp. (Electronics
(Semiconductors))....................... 7,000 256,812
<CAPTION>
SHARES VALUE
------------ ------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Data General Corp. (Computers
(Hardware))(b).......................... 11,000 $ 215,187
Diebold, Inc. (Manufacturing
(Specialized)).......................... 4,500 153,000
Donaldson, Lufkin & Jenrette, Inc.
(Investment Banking/Brokerage).......... 3,500 174,563
Dura Pharmaceuticals, Inc. (Health Care
(Drugs-Major Pharmaceuticals))(b)....... 16,000 231,000
Emulex Corp. (Computers
(Networking))(b)........................ 10,000 352,969
Enhance Financial Services Group
(Financial (Diversified))............... 2,000 50,000
Fremont General Corp. (Insurance
(Property-Casualty)).................... 5,000 113,125
Furon Co. (Manufacturing
(Diversified)).......................... 2,000 26,125
General Instrument Corp. (Communications
Equipment)(b)........................... 10,000 355,000
Health Care REIT, Inc. (REITS).......... 7,500 187,031
HomeBase, Inc. (Retail (Building
Supplies))(b)........................... 10,000 66,875
Horace Mann Educators Corp. (Insurance
(Multi-Line))........................... 5,000 120,000
Hospitality Properties Trust (REITS).... 2,500 66,719
Hutchinson Technology, Inc. (Computers
(Peripherals))(b)....................... 3,000 138,375
Iridium World Communications Ltd. Class
A (Telecommunications
(Cellular/Wireless))(b)................. 5,000 160,313
LaSalle Hotel Properties (REITS)........ 12,000 150,000
Lennar Corp. (Homebuilding)............. 5,000 136,875
Linens 'n Things, Inc. (Retail
(Specialty))(b)......................... 3,000 110,625
Maxtor Corp. (Computers
(Peripherals))(b)....................... 11,000 177,375
Metris Companies, Inc. (Consumer
Finance)................................ 800 40,400
</TABLE>
14 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
<TABLE>
<CAPTION>
SHARES VALUE
------------ ------------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
New Century Financial Corp. (Consumer
Finance)(b)............................. 9,000 $ 122,625
Pinnacle West Capital Corp. (Electric
Companies).............................. 2,000 80,000
RFS Hotel Investors, Inc. (REITS)....... 11,000 139,563
Rochester Gas & Electric Corp. (Electric
Companies).............................. 2,300 66,125
Rush Enterprises, Inc. (Trucks &
Parts)(b)............................... 6,500 84,500
Selective Insurance Group, Inc.
(Insurance (Property-Casualty))......... 3,000 54,750
Sherwin-Williams Co. (The) (Retail
(Building Supplies)).................... 6,000 153,750
Simon Property Group, Inc. (REITS)...... 6,000 157,875
Sunstone Hotel Investors, Inc.
(REITS)................................. 20,000 166,250
Talbots, Inc. (The) (Retail
(Specialty-Apparel)).................... 3,500 96,250
Terayon Communications Systems, Inc.
(Communications Equipment)(b)........... 3,500 141,750
Toll Brothers, Inc. (Homebuilding)(b)... 3,500 80,500
United States Filter Corp. (Waste
Management)(b).......................... 8,000 185,500
Valassis Communications, Inc. (Specialty
Printing)(b)............................ 3,500 178,938
Washington Federal, Inc. (Savings & Loan
Companies).............................. 6,500 166,969
World Color Press, Inc. (Specialty
Printing)(b)............................ 7,000 172,375
------------
7,878,637
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $7,180,880) 7,878,637
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS--63.4%
ARGENTINA--0.3%
Banco Frances SA Sponsored ADR (Banks
(Major Regional))....................... 4,500 70,312
AUSTRALIA--2.4%
BRL Hardy Ltd. (Beverages
(Alcoholic))............................ 75,000 290,250
Pacifica Group Ltd. (Manufacturing
(Diversified)).......................... 100,000 290,878
------------
581,128
------------
BELGIUM--0.4%
Virgin Express Holdings PLC Sponsored
IDR (Airlines)(b)....................... 4,300 90,339
BRAZIL--0.6%
Companhia Brasileira de Distribuicao
Grupo Pao de Acucar Sponsored ADR
(Retail (Food Chains)).................. 11,000 110,000
<CAPTION>
SHARES VALUE
------------ ------------
<S> <C> <C> <C>
BRAZIL--CONTINUED
Companhia Paranaense de Energia
Sponsored ADR (Electric Companies)...... 10,000 $ 40,000
TV Filme, Inc. (Broadcasting
(Television, Radio & Cable))(b)......... 7,400 3,237
------------
153,237
------------
CHILE--0.4%
Distribucion y Servicio SA (Retail (Food
Chains))(b)............................. 8,500 91,375
DENMARK--1.5%
Sondagsavisen A/S (Publishing
(Newspapers))(b)........................ 4,950 377,895
FINLAND--3.8%
Elcoteq Network Corp. Class A
(Communications Equipment).............. 28,400 282,204
Rapala Normark Corp. (Leisure Time
(Products))(b).......................... 48,000 430,630
Sampo Insurance Co. PLC Class A
(Insurance (Multi-Line))................ 5,250 222,384
------------
935,218
------------
FRANCE--3.6%
Altran Technologies SA (Engineering &
Construction)........................... 1,000 296,172
Picogiga (Electronics
(Semiconductors))(b).................... 4,710 77,558
Societe Industrielle D'Aviations
Latecoere SA (Aerospace/Defense)........ 2,310 208,290
Union des Assurances Federales
(Insurance (Life/ Health)).............. 2,370 298,750
------------
880,770
------------
GERMANY--4.1%
Apcoa Parking AG (Services (Commercial &
Consumer)).............................. 3,000 178,521
Berliner Kraft-und Licht AG (Electric
Companies).............................. 11,040 288,359
KM Europa Metal AG (Metals Mining)...... 7,080 393,972
LOESCH Umweltschutz AG (Waste
Management)............................. 11,568 143,193
------------
1,004,045
------------
HONG KONG--1.2%
Giordano International Ltd. (Retail
(Specialty-Apparel)).................... 751,000 181,237
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
<TABLE>
<CAPTION>
SHARES VALUE
------------ ------------
<S> <C> <C> <C>
HONG KONG--CONTINUED
Magician Industries Holdings Ltd.
(Consumer Products (Miscellaneous))..... 1,500,000 $ 121,955
------------
303,192
------------
INDIA--1.3%
Crompton Greaves Ltd. Sponsored GDR
(Electrical Equipment)(b)............... 155,000 193,750
ICICI Ltd. GDR (Financial
(Diversified)).......................... 20,000 125,000
------------
318,750
------------
INDONESIA--0.4%
PT Sari Husada (Foods)(b)............... 275,333 60,758
PT Tigaraksa Satria (Distributors (Food
& Health)).............................. 350,000 46,927
------------
107,685
------------
IRELAND--0.9%
IFG Group PLC (Financial
(Diversified)).......................... 183,300 212,324
ISRAEL--0.8%
Koor Industries Ltd. (Communications
Equipment).............................. 2,200 187,495
ITALY--2.1%
Banca di Roma (Banks (Money
Center))(b)............................. 123,000 182,285
Banca Popolare di Bergamo Credito
Varesino SPA (Banks (Major Regional))... 13,700 340,722
------------
523,007
------------
JAPAN--4.9%
FCC Company Ltd. (Trucks & Parts)....... 35,000 391,297
Kawasumi Laboratories, Inc. (Health Care
(Medical Products & Supplies)).......... 29,000 483,832
Nishio Rent All Co. (Services
(Commercial & Consumer))................ 31,000 194,083
Shinmei Electric (Electrical
Equipment).............................. 12,000 123,839
------------
1,193,051
------------
MEXICO--0.8%
Corporacion Interamericana de
Entretenimiento SA Class B
(Entertainment)(b)...................... 45,000 101,427
Grupo Elektra SA de C.V. CPO (Retail
(Specialty))............................ 60,000 25,394
Industrias, CH SA Series B (Machinery
(Diversified))(b)....................... 21,400 38,545
Tekchem SA Class A (Chemicals
(Specialty))(b)......................... 182,000 19,705
------------
185,071
------------
<CAPTION>
SHARES VALUE
------------ ------------
<S> <C> <C> <C>
NETHERLANDS--0.9%
BE Semiconductor Industries NV
(Electronics (Semiconductors))(b)....... 31,250 $ 227,126
NORWAY--3.3%
NetCom ASA (Telecommunications
(Cellular/ Wireless))(b)................ 12,650 441,636
Tomra Systems ASA (Waste Management).... 10,400 350,659
------------
792,295
------------
SINGAPORE--3.0%
Industrial & Commercial Bank Ltd. (Banks
(Major Regional))....................... 78,000 125,369
Robinson & Co. Ltd. (Retail (Department
Stores))................................ 80,000 217,457
Rothmans Industries Ltd. (Tobacco)...... 60,000 379,368
------------
722,194
------------
SPAIN--3.9%
Befesa Medio Ambiente SA (Waste
Management)(b).......................... 10,865 130,666
Catalana Occidente SA (Insurance
(Multi-Line))........................... 10,510 261,744
NH Hoteles SA (Investment
Banking/Brokerage)(b)................... 30,485 380,816
Sotogrande SA (Real Estate
Development)(b)......................... 51,000 173,172
------------
946,398
------------
SRI LANKA--0.5%
John Keells Holdings Ltd. (Diversified
Miscellaneous)(b)....................... 40,000 116,110
SWEDEN--3.9%
Artimplant AB Class B (Health Care
(Medical Products & Supplies))(b)....... 32,000 180,395
AssiDoman AB (Paper & Forest
Products)............................... 11,000 209,991
Haldex AB (Trucks & Parts).............. 18,000 247,915
Ortivus AB B Shares (Health Care
(Medical Products & Supplies))(b)....... 35,500 300,189
------------
938,490
------------
SWITZERLAND--0.8%
SEZ Holding AG Registered (Electrical
Equipment).............................. 1,000 190,228
TAIWAN--0.6%
Standard Foods Taiwan Ltd. Sponsored GDR
(Foods)(b).............................. 24,797 140,722
UNITED KINGDOM--17.0%
Access Plus PLC (Services (Advertising/
Marketing))............................. 85,000 272,293
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
<TABLE>
<CAPTION>
SHARES VALUE
------------ ------------
<S> <C> <C> <C>
UNITED KINGDOM--CONTINUED
Charles Stanley Group PLC (Investment
Banking/ Brokerage)..................... 251,000 $ 1,523,599
Gresham Computing PLC (Computers
(Software & Services)).................. 530,000 1,214,598
ILP Group PLC (Manufacturing
(Specialized))(b)....................... 260,000 74,747
JJB Sports PLC (Retail (Specialty))..... 30,000 177,421
London Pacific Group Ltd. Sponsored ADR
(Financial (Diversified))............... 4,000 50,500
Rolfe & Nolan PLC (Computers (Software &
Services)).............................. 100,000 347,450
Wilmington Group PLC (Publishing)....... 150,000 471,892
------------
4,132,500
------------
- --------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $17,498,063) 15,420,957
- --------------------------------------------------------------------------------
UNIT INVESTMENT TRUSTS--5.2%
UNIT INVESTMENT TRUSTS--5.2%
AMEX Consumer Staples Select Sector
Depository Receipts(b).................. 4,000 107,188
AMEX Financial Select Sector Depository
Receipts(b)............................. 8,000 190,750
AMEX Technology Select Sector Depository
Receipts(b)............................. 5,800 219,131
Diamonds Trust, Series I................ 1,000 93,344
S&P 400 Mid-Cap Depository Receipts..... 2,000 142,125
S&P 500 Depository Receipts............. 3,900 498,042
------------
1,250,580
------------
- --------------------------------------------------------------------------------
TOTAL UNIT INVESTMENT TRUSTS
(IDENTIFIED COST $1,170,195) 1,250,580
- --------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--101.0%
(IDENTIFIED COST $25,849,138) 24,550,174
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
------ -------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--0.8%
REPURCHASE AGREEMENT--0.8%
Credit Suisse repurchase agreement,
4.68%, dated 1/29/99 due 2/1/99,
repurchase price $200,078,
collateralized by U.S. Treasury Note
6.25%, 8/31/02, market value $205,019... $ 200 $ 200,000
- ---------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $200,000) 200,000
- ---------------------------------------------------------------------------
TOTAL INVESTMENTS--101.8%
(IDENTIFIED COST $26,049,138) 24,750,174(a)
Cash and receivables, less liabilities--(1.8%) (436,051)
-------------
NET ASSETS--100.0% $ 24,314,123
-------------
-------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $3,828,594 and gross
depreciation of $5,302,434 for federal income tax purposes. At January 31,
1999, the aggregate cost of securities for federal income tax purposes was
$26,224,014.
(b) Non-income producing.
See Notes to Financial Statements 17
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
INDUSTRY DIVERSIFICATION
AS A PERCENTAGE OF TOTAL VALUE OF TOTAL LONG-TERM INVESTMENTS
(UNAUDITED)
<TABLE>
<S> <C>
Aerospace/Defense........................................................ 0.9%
Airlines................................................................. 0.4
Banks (Major Regional)................................................... 2.2
Banks (Money Center)..................................................... 0.7
Beverages (Alcoholic).................................................... 1.2
Biotechnology............................................................ 0.7
Chemicals (Specialty).................................................... 0.1
Communications Equipment................................................. 5.8
Computers (Hardware)..................................................... 1.4
Computers (Networking)................................................... 2.1
Computers (Peripherals).................................................. 1.3
Computers (Software & Services).......................................... 6.7
Consumer Finance......................................................... 0.7
Consumer Products (Miscellaneous)........................................ 0.5
Distributors (Food & Health)............................................. 0.2
Diversified Miscellaneous................................................ 0.5
Electric Companies....................................................... 1.9
Electrical Equipment..................................................... 2.5
Electronics (Semiconductors)............................................. 2.5
Engineering & Construction............................................... 1.2
Entertainment............................................................ 0.4
Financial (Diversified).................................................. 1.8
Foods.................................................................... 0.8
Health Care (Drugs-Major Pharmaceuticals)................................ 0.9
Health Care (Medical Products & Supplies)................................ 3.9
Health Care (Specialized Services)....................................... 0.9
Homebuilding............................................................. 0.9
Insurance (Life/Health).................................................. 1.2
Insurance (Multi-Line)................................................... 2.5
Insurance (Property-Casualty)............................................ 1.0%
Investment Banking/Brokerage............................................. 8.5
Leisure Time (Products).................................................. 1.8
Machinery (Diversified).................................................. 0.2
Manufacturing (Diversified).............................................. 1.6
Manufacturing (Specialized).............................................. 0.9
Metals Mining............................................................ 1.6
Paper & Forest Products.................................................. 0.9
Publishing............................................................... 1.9
Publishing (Newspapers).................................................. 1.5
Real Estate Development.................................................. 0.7
REITS.................................................................... 3.5
Retail (Building Supplies)............................................... 0.9
Retail (Computers & Electronics)......................................... 0.7
Retail (Department Stores)............................................... 0.9
Retail (Food Chains)..................................................... 0.8
Retail (Specialty)....................................................... 1.9
Retail (Specialty-Apparel)............................................... 1.1
Savings & Loan Companies................................................. 2.0
Services (Advertising/Marketing)......................................... 1.7
Services (Commercial & Consumer)......................................... 1.5
Specialty Printing....................................................... 1.4
Telecommunications (Cellular/Wireless)................................... 3.3
Tobacco.................................................................. 1.5
Trucks & Parts........................................................... 3.0
Unit Investment Trusts................................................... 5.1
Waste Management......................................................... 3.3
-----
100.0%
-----
-----
</TABLE>
18 See Notes to Financial Statements
<PAGE>
GLOBAL SMALL CAP SERIES
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $26,049,138) $ 24,750,174
Cash 16,607
Receivables
Fund shares sold 26,768
Dividends and interest 22,629
Tax reclaim 9,237
Prepaid expense 457
-------------
Total assets 24,825,872
-------------
LIABILITIES
Payables
Investment securities purchased 293,722
Fund shares repurchased 37,070
Financial agent fee 11,871
Transfer agent fee 11,713
Distribution fee 11,499
Investment advisory fee 10,622
Trustees' fee 9,090
Administration fee 3,171
Accrued expenses 122,991
-------------
Total liabilities 511,749
-------------
NET ASSETS $ 24,314,123
-------------
-------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 28,137,864
Undistributed net investment loss (297,580)
Accumulated net realized loss (2,226,747)
Net unrealized depreciation (1,299,414)
-------------
NET ASSETS $ 24,314,123
-------------
-------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $14,883,725) 1,685,178
Net asset value per share $8.83
Offering price per share $8.83/(1-4.75%) $9.27
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $9,430,398) 1,084,718
Net asset value and offering price per share $8.69
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 153,605
Interest 13,926
Foreign taxes withheld (6,109)
-----------
Total investment income 161,422
-----------
EXPENSES
Investment advisory fee 104,651
Distribution fee, Class A 18,575
Distribution fee, Class B 48,821
Financial agent fee 23,342
Administration fee 18,467
Custodian 43,329
Transfer agent 42,101
Registration 16,026
Printing 12,464
Professional 12,464
Trustees 10,792
Miscellaneous 11,328
-----------
Total expenses 362,360
Less expenses borne by investment adviser (67,216)
-----------
Net expenses 295,144
-----------
NET INVESTMENT LOSS (133,722)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (2,179,313)
Net realized gain on foreign currency transactions 2,409
Net change in unrealized appreciation (depreciation) on investments 245,112
Net change in unrealized appreciation (depreciation) on foreign
currency and foreign currency transactions 238
-----------
NET LOSS ON INVESTMENTS (1,931,554)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(2,065,276)
-----------
-----------
</TABLE>
See Notes to Financial Statements 19
<PAGE>
Global Small Cap Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
January 31, 1999 Year Ended
(Unaudited) July 31, 1998
----------------- --------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (133,722) $ (345,457)
Net realized gain (loss) (2,176,904) 6,452,088
Net change in unrealized appreciation
(depreciation) 245,350 (5,764,395)
----------------- --------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (2,065,276) 342,236
----------------- --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A (1,031,017) (1,634,436)
Net realized gains, Class B (684,978) (1,345,539)
In excess of net investment income,
Class A -- (267,897)
In excess of net investment income,
Class B -- (154,696)
----------------- --------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (1,715,995) (3,402,568)
----------------- --------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (226,503
and 303,616 shares, respectively) 1,944,551 3,167,670
Net asset value of shares issued from
reinvestment of distributions
(119,451 and
202,252 shares, respectively) 992,705 1,806,110
Cost of shares repurchased (420,267
and 900,403 shares, respectively) (3,640,989) (9,370,519)
----------------- --------------
Total (703,733) (4,396,739)
----------------- --------------
CLASS B
Proceeds from sales of shares (51,981
and 162,943 shares, respectively) 444,856 1,661,922
Net asset value of shares issued from
reinvestment of distributions
(75,170 and
138,880 shares, respectively) 615,640 1,231,865
Cost of shares repurchased (255,282
and 693,656 shares, respectively) (2,166,143) (7,063,874)
----------------- --------------
Total (1,105,647) (4,170,087)
----------------- --------------
DECREASE IN NET ASSETS FROM SHARE
TRANSACTIONS (1,809,380) (8,566,826)
----------------- --------------
NET DECREASE IN NET ASSETS (5,590,651) (11,627,158)
NET ASSETS
Beginning of period 29,904,774 41,531,932
----------------- --------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT LOSS AND DISTRIBUTION
IN EXCESS OF NET INVESTMENT INCOME
OF ($297,580) AND ($163,858),
RESPECTIVELY] $24,314,123 $ 29,904,774
----------------- --------------
----------------- --------------
</TABLE>
20 See Notes to Financial Statements
<PAGE>
Global Small Cap Series
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
1/31/99 ENDED 9/4/96 TO
(UNAUDITED) 7/31/98 7/31/97
---------- ---------- ----------
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.11 $ 11.08 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.04)(4)(5) (0.07)(4)(5) (0.03)(4)(5)
Net realized and unrealized gain
(loss) (0.61) 0.14 1.11
---------- ---------- ----------
TOTAL FROM INVESTMENT
OPERATIONS (0.65) 0.07 1.08
---------- ---------- ----------
LESS DISTRIBUTIONS
Dividends from net realized gains (0.63) (0.89) --
In excess of net investment income -- (0.15) --
---------- ---------- ----------
TOTAL DISTRIBUTIONS (0.63) (1.04) --
---------- ---------- ----------
Change in net asset value (1.28) (0.97) 1.08
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 8.83 $ 10.11 $ 11.08
---------- ---------- ----------
---------- ---------- ----------
Total return(1) (6.04)%(3) 1.86% 10.80%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $14,884 $17,781 $23,874
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.10%(2) 2.10% 2.10%(2)
Net investment income (loss) (0.79)%(2) (0.65)% (0.32)%(2)
Portfolio turnover 35%(3) 212% 162%(3)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
1/31/99 ENDED 9/4/96 TO
(UNAUDITED) 7/31/98 7/31/97
---------- ---------- ----------
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.00 $ 11.00 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.08)(4)(6) (0.14)(4)(6) (0.10)(4)(6)
Net realized and unrealized gain
(loss) (0.60) 0.14 1.10
----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS (0.68) -- 1.00
----- ----- -----
LESS DISTRIBUTIONS
Dividends from net realized gains (0.63) (0.89) --
In excess of net investment income -- (0.11) --
----- ----- -----
TOTAL DISTRIBUTIONS (0.63) (1.00) --
----- ----- -----
Change in net asset value (1.31) (1.00) 1.00
----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 8.69 $ 10.00 $ 11.00
----- ----- -----
----- ----- -----
Total return(1) (6.31)%(3) 1.12% 10.00%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $9,430 $12,123 $17,658
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.85%(2) 2.85% 2.85%(2)
Net investment income (loss) (1.54)%(2) (1.40)% (1.07)%(2)
Portfolio turnover 35%(3) 212% 162%(3)
</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 $0.02,
$0.03 and $0.05, respectively.
(6) Includes reimbursement of operating expenses by investment adviser of $0.02,
$0.03 and $0.05, respectively.
See Notes to Financial Statements 21
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1999 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Phoenix-Aberdeen Series Fund (the "Trust") 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 Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses.
Actual results could differ from those estimates.
A. SECURITY VALUATION:
Equity securities are valued at the last sale price, or if there had been no
sale that day, at the 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 Trust 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 Trust 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, Passive Foreign Investment Companies, partnerships,
operating losses and losses deferred due to wash sales and excise tax
regulations. Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
E. FOREIGN CURRENCY TRANSLATION:
Foreign securities and other assets and liabilities are valued using the
foreign currency exchange rate effective at the end of the reporting period.
Cost of investments is translated at the currency exchange rate effective at the
trade date. The gain or loss resulting from a change in currency exchange rates
between the trade and settlement dates of a portfolio transaction is treated as
a gain or loss on foreign currency. Likewise, the gain or loss resulting from a
change in currency exchange rates between the date income is accrued and paid is
treated as a gain or loss on foreign currency. The Trust does not 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 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.
22
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1999 (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 Trust 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 Trust. 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 aggregate 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 Trust's shares, has advised the Trust that it retained net
selling commissions of $1,476 for Class A shares and deferred sales charges of
$54,870 for Class B shares for the six months ended January 31, 1999. 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 Trust that of the total
amount expensed for the six months ended January 31, 1999, $61,410 was retained
by the Distributor, $22,996 was paid out to unaffiliated participants and $3,992
was paid to W.S. Griffith, an indirect subsidiary of PHL.
As Financial Agent to the Trust, PEPCO receives a financial agent fee equal to
the sum of (1) the documented cost of fund accounting and related services
provided by PFPC Inc. (subagent to PEPCO), plus (2) the documented cost to PEPCO
to provide financial reporting, tax services and oversight of subagent's
performance. The current fee schedule of PFPC Inc. ranges from 0.085% to 0.0125%
of the average daily net asset values of the Trust. Certain minimums and waivers
may apply. As Administrator for the Trust, Phoenix Investment Partners Ltd., 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 Trust's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the six months ended January 31, 1999,
transfer agent fees were $69,968 of which PEPCO retained $4,656 which is net of
fees paid to State Street.
At January 31, 1999, PHL and its affiliates held Trust shares which aggregated
the following:
<TABLE>
<CAPTION>
Aggregate
Net Asset
Shares Value
--------- ------------
<S> <C> <C>
New Asia Series Class A........................... 309,003 $1,943,631
New Asia Series Class B........................... 10,545 65,799
Global Small Cap Series Class A................... 588,481 5,196,290
Global Small Cap Series Class B................... 11,978 104,093
</TABLE>
23
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1999 (UNAUDITED) (CONTINUED)
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended January 31, 1999
(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................................... $ 704,123 $ 1,332,633
Global Small Cap Series........................... 8,826,789 12,124,492
</TABLE>
There were no purchases or sales of long-term U.S. Government and agency
securities during the six months ended January 31, 1999.
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.
24
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
101 Munson Street
Greenfield, Massachusetts 01301
TRUSTEES
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis F. 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
John F. Sharry, 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
Hugh Young, Senior Vice President
Shahreza Yusof, Senior Vice President
Christian C. Bertelsen, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
Julie L. Sapia, Vice President
Nancy G. Curtiss, Treasurer
C. 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
TRANSFER AGENT
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
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574 (option 0)
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
World Wide Web Address:
WWW.PHOENIXINVESTMENTS.COM
<PAGE>
Phoenix Equity Planning Corporation
PO Box 2200
Enfield CT 06083-2200
[LOGO] PHOENIX
INVESTMENT PARTNERS
PRSRT STD
U.S. Postage
PAID
Springfield, MA
Permit NO 444
PXP 189(3/99)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0001015429
<NAME> PHOENIX-ABERDEEN SERIES FUND
<SERIES>
<NUMBER> 011
<NAME> PHOENIX-ABERDEEN NEW ASIA FUND - CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1999
<PERIOD-END> JAN-31-1999
<INVESTMENTS-AT-COST> 12416
<INVESTMENTS-AT-VALUE> 9690
<RECEIVABLES> 82
<ASSETS-OTHER> 103
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 9875
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 176
<TOTAL-LIABILITIES> 176
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 16478
<SHARES-COMMON-STOCK> 1095
<SHARES-COMMON-PRIOR> 1167
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (127)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (3926)
<ACCUM-APPREC-OR-DEPREC> (2726)
<NET-ASSETS> 9699
<DIVIDEND-INCOME> 130
<INTEREST-INCOME> 11
<OTHER-INCOME> 0
<EXPENSES-NET> (104)
<NET-INVESTMENT-INCOME> 37
<REALIZED-GAINS-CURRENT> (1136)
<APPREC-INCREASE-CURRENT> 2488
<NET-CHANGE-FROM-OPS> 1389
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (74)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 315
<NUMBER-OF-SHARES-REDEEMED> (399)
<SHARES-REINVESTED> 12
<NET-CHANGE-IN-ASSETS> 533
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (72)
<OVERDIST-NET-GAINS-PRIOR> (2789)
<GROSS-ADVISORY-FEES> 38
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 187
<AVERAGE-NET-ASSETS> 8868
<PER-SHARE-NAV-BEGIN> 5.45
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> .88
<PER-SHARE-DIVIDEND> (.07)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 6.29
<EXPENSE-RATIO> 2.10
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0001015429
<NAME> PHOENIX-ABERDEEN SERIES FUND
<SERIES>
<NUMBER> 012
<NAME> PHOENIX-ABERDEEN NEW ASIA FUND - CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1999
<PERIOD-END> JAN-31-1999
<INVESTMENTS-AT-COST> 12416
<INVESTMENTS-AT-VALUE> 9690
<RECEIVABLES> 82
<ASSETS-OTHER> 103
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 9875
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 176
<TOTAL-LIABILITIES> 176
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 16478
<SHARES-COMMON-STOCK> 451
<SHARES-COMMON-PRIOR> 510
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (127)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (3926)
<ACCUM-APPREC-OR-DEPREC> (2726)
<NET-ASSETS> 9699
<DIVIDEND-INCOME> 130
<INTEREST-INCOME> 11
<OTHER-INCOME> 0
<EXPENSES-NET> (104)
<NET-INVESTMENT-INCOME> 37
<REALIZED-GAINS-CURRENT> (1136)
<APPREC-INCREASE-CURRENT> 2488
<NET-CHANGE-FROM-OPS> 1389
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (19)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 39
<NUMBER-OF-SHARES-REDEEMED> (101)
<SHARES-REINVESTED> 3
<NET-CHANGE-IN-ASSETS> 58
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (72)
<OVERDIST-NET-GAINS-PRIOR> (2789)
<GROSS-ADVISORY-FEES> 38
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 187
<AVERAGE-NET-ASSETS> 8868
<PER-SHARE-NAV-BEGIN> 5.40
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> .87
<PER-SHARE-DIVIDEND> (.04)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 6.24
<EXPENSE-RATIO> 2.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0001015429
<NAME> PHOENIX-ABERDEEN SERIES FUND
<SERIES>
<NUMBER> 021
<NAME> PHOENIX-ABERDEEN GLOBAL SMALL CAP FUND-CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1999
<PERIOD-END> JAN-31-1999
<INVESTMENTS-AT-COST> 26049
<INVESTMENTS-AT-VALUE> 24750
<RECEIVABLES> 59
<ASSETS-OTHER> 17
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 24826
<PAYABLE-FOR-SECURITIES> 294
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 218
<TOTAL-LIABILITIES> 512
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 28138
<SHARES-COMMON-STOCK> 1685
<SHARES-COMMON-PRIOR> 1759
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (298)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (2227)
<ACCUM-APPREC-OR-DEPREC> (1299)
<NET-ASSETS> 24314
<DIVIDEND-INCOME> 147
<INTEREST-INCOME> 14
<OTHER-INCOME> 0
<EXPENSES-NET> (295)
<NET-INVESTMENT-INCOME> (134)
<REALIZED-GAINS-CURRENT> (2176)
<APPREC-INCREASE-CURRENT> 245
<NET-CHANGE-FROM-OPS> (2065)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (1031)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 227
<NUMBER-OF-SHARES-REDEEMED> (420)
<SHARES-REINVESTED> 119
<NET-CHANGE-IN-ASSETS> (2898)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1666
<OVERDISTRIB-NII-PRIOR> (164)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 105
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 362
<AVERAGE-NET-ASSETS> 24423
<PER-SHARE-NAV-BEGIN> 10.11
<PER-SHARE-NII> (.04)
<PER-SHARE-GAIN-APPREC> (.61)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.63)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.83
<EXPENSE-RATIO> 2.10
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0001015429
<NAME> PHOENIX-ABERDEEN SERIES FUND
<SERIES>
<NUMBER> 022
<NAME> PHOENIX-ABERDEEN GLOBAL SMALL CAP FUND-CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1999
<PERIOD-END> JAN-31-1999
<INVESTMENTS-AT-COST> 26049
<INVESTMENTS-AT-VALUE> 24750
<RECEIVABLES> 59
<ASSETS-OTHER> 17
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 24826
<PAYABLE-FOR-SECURITIES> 294
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 218
<TOTAL-LIABILITIES> 512
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 28138
<SHARES-COMMON-STOCK> 1085
<SHARES-COMMON-PRIOR> 1213
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (298)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (2227)
<ACCUM-APPREC-OR-DEPREC> (1299)
<NET-ASSETS> 24314
<DIVIDEND-INCOME> 147
<INTEREST-INCOME> 14
<OTHER-INCOME> 0
<EXPENSES-NET> (295)
<NET-INVESTMENT-INCOME> (134)
<REALIZED-GAINS-CURRENT> (2176)
<APPREC-INCREASE-CURRENT> 245
<NET-CHANGE-FROM-OPS> (2065)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (685)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 52
<NUMBER-OF-SHARES-REDEEMED> (255)
<SHARES-REINVESTED> 75
<NET-CHANGE-IN-ASSETS> (2693)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1666
<OVERDISTRIB-NII-PRIOR> (164)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 105
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 362
<AVERAGE-NET-ASSETS> 24423
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (.08)
<PER-SHARE-GAIN-APPREC> (.60)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.63)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.69
<EXPENSE-RATIO> 2.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
