<PAGE>
PHOENIX INVESTMENT PARTNERS
ANNUAL REPORT
JULY 31, 2000
ABERDEEN
PHOENIX-ABERDEEN
GLOBAL SMALL
CAP FUND
PHOENIX-ABERDEEN
NEW ASIA FUND
[PHOENIX INVESTMENT PARTNERS LOGO]
<PAGE>
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
[PHOTO]
We are pleased to provide this annual report for the Phoenix-Aberdeen Global
Small Cap Fund and the Phoenix-Aberdeen New Asia Fund for the 12 months ended
July 31, 2000. On the following pages, your Fund's portfolio management team
reviews events in the worldwide equity markets that affected performance over
the last year and discusses their investment strategy. We hope you find their
comments informative.
Given the unprecedented volatility that markets everywhere have been
experiencing, this may be a good time to review a few "basics of investing."
REMAIN FOCUSED ON YOUR LONG-TERM INVESTMENT STRATEGY. Redeeming an investment
when the market drops or a fund's share price falls can work against you over
time. You could miss out on opportunities for your investment to grow when the
market or the fund's share price begins to move up. And over time, that could
make a big difference in how successful you are in achieving your personal
financial goals.
DIVERSIFY YOUR PORTFOLIO. Spreading your investments among different asset
classes and investment styles helps reduce risk. If one type of investment
doesn't perform well over a certain time period, it may be offset by the good
results of another investment.
TAKE ADVANTAGE OF DOLLAR-COST AVERAGING. You can make market fluctuations work
to your advantage by investing a set amount of money at regular intervals. This
is called dollar-cost averaging, and it means that when prices are low you will
be buying more units and when prices are high, you'll buy less. Periodic
investment plans do not assure a profit or protect against a loss in declining
markets. This type of plan involves continuous investments in securities
regardless of fluctuating price levels, and investors should consider their
ability to continue purchases through periods of low price levels.
Investors' biggest challenge is adopting an investing discipline and
committing to it. Your financial advisor can provide the insight and wisdom to
help keep you on track to meet your personal goals.
If you have any questions, please call your financial advisor or a Phoenix
customer service representative at 1-800-243-1574 between 8 a.m. and 6 p.m.,
Monday through Friday. You can purchase or exchange shares, check your balance,
and review your account history by visiting our INVESTOR CENTER at
www.phoenixinvestments.com or by calling 1-800-243-1574 (option 1).
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
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 GLOBAL SMALL CAP FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund is appropriate for investors seeking 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 and that small company investing also 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: The Fund had very strong returns compared with its benchmark. For the 12
months ended July 31, 2000, Class A shares returned 37.45% and Class B shares
returned 36.34% compared with a return of only 5.18% for 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 CONTRIBUTED MOST TO THIS GOOD PERFORMANCE?
A: Small-cap stocks, which began to rally in the first half of 1999, continued
to perform well into the second half of that year and also started 2000
strongly. However, since reaching their peak in mid-March, small caps have given
up some of their large gains, particularly stocks in the technology sector.
Q: WHICH REGIONS PERFORMED EXCEPTIONALLY WELL? WHAT WERE SOME DISAPPOINTING
AREAS DURING THE PERIOD?
A: In the United States our technology holdings benefited for the most part from
the surge in share prices in that sector. Brooktrout, Crown Castle International
and L-3 Communications had above-average returns, and we took profits in Mastec
after it had soared in price. Outside the technology area, the overall
performance for U.S. smaller companies in the portfolio was generally good.
Substantial gains were made in the energy sector, with Calpine and Dynegy
performing particularly well, while Trigon Healthcare and steel pipe
manufacturer Shaw Group were other notable successes.
In the UK, we continued to make and take profits from our holding in Charles
Stanley, a stock brokerage firm, but software company Gresham Computing was a
disappointment. A similar mixed pattern was seen in Europe where companies such
as Artimplant of Sweden and NH Hoteles of Spain have performed well, but returns
have been restricted by the weakness of the euro. In Japan, our relatively few
holdings have made little progress, with a similar story in Asia with the
exception of Giordano of Hong Kong. Finally, our Latin American investments have
done well as our Mexican holdings benefited from the positive market reaction to
the July presidential election.
(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 COMPANIES COMPONENT CONSISTS OF MEDIUM- TO
SMALL-CAPITALIZATION COMPANIES IN THE WORLD INDEX. THE INDEX IS NOT
AVAILABLE FOR DIRECT INVESTMENT.
2
<PAGE>
PHOENIX-ABERDEEN GLOBAL SMALL CAP FUND (CONTINUED)
Q: WHAT IS YOUR OUTLOOK FOR WORLDWIDE MARKETS AND IN PARTICULAR FOR SMALLER
COMPANIES?
A: While global output probably peaked in the second quarter and is likely to
slow through the latter part of the year, world economic growth prospects remain
remarkably good, in our view. However, the balance of growth is shifting with
the U.S. economy unable to sustain the boom-like conditions experienced for much
of last year and earlier this year. The increase in energy prices is having the
effect of a spending tax, while less buoyant financial markets and higher
interest rates have begun to have a negative impact. Even so, we expect
second-quarter GDP growth to be around 3.5%, with second-half activity slightly
faster. As yet, we see little to suggest that the U.S. slowdown should be any
more acute. Consumer and business confidence remains high, and financial markets
have recovered sharply from their April lows. So far the evidence points more to
a return to trend-like growth than outright weakness.
By contrast, continental European economic data releases have tended to
surprise on the upside. GDP growth in the second quarter and probably the third
is likely to be not too far short of a 4% annual rate, while forward-looking
indicators remain strong. Recently, numerous European officials have commented
on the euro-zone's excellent progress and prospects. The German Finance
Minister, Hans Eichel, may have exaggerated the position when he remarked that
"I see a chance for the EU to take over as the locomotive of world growth."
However, the comment does exemplify the degree of confidence currently felt in
Europe. Indeed, growth next year may well be supported increasingly by household
consumption.
Reports present a mixed picture of the pace of UK economic activity but
still confirm growth at around 3% this year. While surveys indicate
manufacturing activity remains fairly subdued, consumer spending is relatively
robust and is expected to hold up well through next year, especially if base
rates are nearing a peak.
Japan's cyclical recovery is still on course with July's "Tankan" survey of
business conditions improving for the sixth straight month. Capital spending
plans were strong for both large and small firms, but that alone will not be
enough to pull the economy out of its trough, in our opinion. Faster household
spending will be needed for the economy to achieve a self-sustaining domestic
recovery not requiring government support, and there is little to suggest this
is under way.
While there are some signs of a slowing from the torrid pace of growth last
year, the growing support from domestic demand and the global technology upswing
should ensure Asian Pacific regional growth is maintained in a 5-6% range. In
addition, China's progress appears more robust with deflationary pressures
easing and GDP now growing in excess of 8%.
In general, core inflation figures have yet to show any real passthrough
effect from the $30 per barrel oil price that is pushing CPI numbers higher.
Even with buoyant consumer spending, many companies still find it difficult to
impose price increases. Financial markets tended to gloss over upward revisions
to first-quarter U.S. GDP deflators, but in both the U.S. and Europe, further
deterioration in core numbers is probable as the year progresses. European CPI,
in particular, is breaching its headline target, and any further weakening of
the euro will only add to concerns.
In summary, after a very strong start to the year, global growth is
moderating, principally due to slower U.S. activity. Europe by contrast is
3
<PAGE>
PHOENIX-ABERDEEN GLOBAL SMALL CAP FUND (CONTINUED)
accelerating, while Japan is recovering but sluggishly. Fears of a "hard
landing" have therefore abated; bonds rallied and interest rate fears eased. It
is still debatable, however, whether the U.S. economic slowdown will prove
sustainable and sufficient to ease growing wage/price pressures.
After recent rallies, investors in both equities and U.S. bonds are taking
the view that the worst of central bank tightening is over. Yet if the rallies
are sustained, this may ensure that the Federal Reserve has further work to do.
An optimistic view has been priced into U.S. assets and allowed stock markets
elsewhere to rally. Near term this may well continue with markets outside the
U.S. and Japan favored. Worries over U.S. interest rates and eventually profit
growth, however, may return to haunt markets later in the year.
AUGUST 18, 2000
4
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIOD ENDING 7/31/00
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR TO 7/31/00 DATE
------- ----------- ------------
<S> <C> <C> <C>
Class A Shares at NAV(2) 37.45% 13.57% 9/4/96
Class A Shares at POP(3) 29.55 11.86 9/4/96
Class B Shares at NAV(2) 36.34 12.70 9/4/96
Class B Shares with CDSC(4) 32.34 12.34 9/4/96
FT/S&P-Actuaries World Index
Medium/Small Component(7) 5.18 9.93 Note 5
</TABLE>
(1) Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the effect of any
sales charge.
(3) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 5.75% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to redemptions of
certain classes of shares that do not have a sales charge applied at the
time of purchase. CDSC charges for B shares decline from 5% to 0% over a
five year period.
(5) Index information from 9/30/96 to 7/31/00.
(6) This chart illustrates POP returns on Class A shares and CDSC returns for
Class B shares since inception.
(7) The FT/S&P-Actuaries World Index Medium/Small Component is an unmanaged,
broad-based measure of global small stock market total return performance.
The index's performance does not reflect sales charges.
All returns represent past performance which may not be indicative of
future performance. The investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
GROWTH OF $10,000 PERIODS ENDING 7/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX - ABERDEEN PHOENIX - ABERDEEN FT/S&P - ACTUARIES
GLOBAL SMALL CAP GLOBAL SMALL CAP WORLD INDEX MEDIUM/
FUND CLASS A (6) FUND CLASS B (6) SMALL COMPONENTS (7)
<S> <C> <C> <C>
09/04/96 $9,425 $10,000 $10,000
07/31/97 $10,443 $11,000 $11,725
07/31/98 $10,637 $11,123 $11,969
07/31/99 $11,274 $11,703 $13,668
07/31/00 $15,496 $15,755 $14,376
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
9/4/96 (inception of the Fund) in Class A and Class B shares. The total return
for Class A shares reflects the maximum sales charge of 5.75% on the initial
investment. The total return for Class B shares reflects the CDSC charges which
decline from 5% to 0% over a five year period. Performance assumes dividends and
capital gains are reinvested.
COUNTRY WEIGHTINGS 7/31/00
As a percentage of equity holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
United States 43%
United Kingdom 14%
Japan 5%
Germany 5%
Sweden 4%
France 4%
Hong Kong 4%
Other 21%
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
TEN LARGEST HOLDINGS AT JULY 31, 2000 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. Giordano International Ltd. 3.3%
HONG KONG MANUFACTURER AND RETAILER OF CASUAL APPAREL
2. Charles Stanley Group PLC 2.5%
OFFERS STOCK BROKERAGE AND INVESTMENT MANAGEMENT SERVICES IN THE UK
3. L-3 Communications Holdings, Inc. 2.0%
U.S. COMMUNICATIONS SYSTEMS PROVIDER
4. Teather & Greenwood Holdings PLC 2.0%
PROVIDES FINANCIAL SERVICES IN THE UK
5. Shinmei Electric Co., Ltd. 1.9%
JAPANESE ELECTRIC PARTS MANUFACTURER
6. Wilmington Group PLC 1.9%
UK PUBLISHER OF PERIODICALS AND REPORTS
7. Access Plus PLC 1.8%
UK PROVIDER OF DIRECT MARKETING SERVICES
8. Singer & Friedlander Group PLC 1.7%
INVESTMENT HOLDING COMPANY IN THE UK
9. Calpine Corp. 1.7%
U.S. POWER GENERATING COMPANY
10. Terex Corp. 1.6%
U.S. MANUFACTURER OF HEAVY TRUCKS AND MINING EQUIPMENT
</TABLE>
INVESTMENTS AT JULY 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
U.S. COMMON STOCKS--39.0%
UNITED STATES--39.0%
Advanced Lighting Technologies, Inc.
(Electrical Equipment)(b)............... 15,600 $ 219,375
Alliant Techsystems, Inc.
(Aerospace/Defense)(b).................. 3,500 247,625
Amkor Technology, Inc. (Electronics
(Semiconductors))(b).................... 3,000 82,500
Bank United Corp. Class A (Savings &
Loan Companies)......................... 4,000 145,750
Black Box Corp. (Electrical
Equipment)(b)........................... 3,000 135,750
Boston Communications Group, Inc.
(Telecommunications
(Cellular/Wireless))(b)................. 26,500 384,250
Brooktrout, Inc. (Communications
Equipment)(b)........................... 16,500 499,125
CBRL Group, Inc. (Restaurants)(b)....... 15,000 178,125
Cal Dive International, Inc. (Oil & Gas
(Drilling & Equipment))(b).............. 4,000 193,000
Calpine Corp. (Power Producers
(Independent))(b)....................... 7,500 534,375
Charles River Laboratories
International, Inc.
(Biotechnology)(b)...................... 13,900 419,606
Computer Learning Centers, Inc.
(Services (Commercial & Consumer))...... 286 366
Crossroads Systems, Inc. (Computers
(Peripherals))(b)....................... 5,000 22,812
Crown Castle International Corp.
(Services (Commercial & Consumer))(b)... 14,000 476,000
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Cullen/Frost Bankers, Inc. (Banks
(Regional))............................. 11,500 $ 327,031
Dot Hill Systems Corp. (Computers
(Peripherals))(b)....................... 25,000 231,250
Dura Pharmaceuticals, Inc. (Health Care
(Generic and Other))(b)................. 10,000 226,250
Dynegy, Inc. Class A (Natural Gas)...... 6,000 422,250
Enhance Financial Services Group, Inc.
(Insurance (Property-Casualty))......... 2,000 31,625
FortuneCity.com, Inc. (Computers
(Software & Services))(b)............... 9,000 41,615
Fuller (H.B.) Co. (Chemicals
(Specialty))............................ 5,000 193,125
Global Marine, Inc. (Oil & Gas (Drilling
& Equipment))(b)........................ 6,000 169,875
Gulf Island Fabrication, Inc. (Oil & Gas
(Drilling & Equipment))(b).............. 17,000 257,125
Health Care REIT, Inc. (REITS).......... 7,500 135,000
Horace Mann Educators Corp. (Insurance
(Property-Casualty)).................... 13,000 181,187
Humana, Inc. (Health Care (Managed
Care))(b)............................... 40,000 292,500
JNI Corp. (Computers (Hardware))(b)..... 2,900 123,794
L-3 Communications Holdings, Inc.
(Communications Equipment)(b)........... 11,000 647,625
LaSalle Hotel Properties (REITS)........ 7,700 111,169
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
UNITED STATES--CONTINUED
Laser Vision Centers, Inc. (Health Care
(Medical Products & Supplies))(b)....... 60,000 $ 310,312
Littelfuse, Inc. (Electrical
Equipment)(b)........................... 7,000 246,750
Litton Industries, Inc. (Electronics
(Defense))(b)........................... 7,700 380,669
MIH Ltd. (Broadcasting (Television,
Radio & Cable))(b)...................... 7,300 220,369
MasTec, Inc. (Engineering &
Construction)(b)........................ 7,300 242,269
Maverick Tube Corp. (Iron & Steel)(b)... 3,700 84,406
Metris Cos., Inc. (Consumer Finance).... 2,400 70,350
Parker Drilling Co. (Oil & Gas (Drilling
& Equipment))(b)........................ 25,000 139,063
Quantum Corp. - DLT & Storage Systems
(Computers (Peripherals))(b)............ 27,000 317,250
R&B Falcon Corp. (Oil & Gas (Drilling &
Equipment))(b).......................... 13,000 259,188
Radian Group, Inc. (Insurance
(Property-Casualty)).................... 6,000 365,250
Rowan Cos., Inc. (Oil & Gas (Drilling &
Equipment))(b).......................... 4,000 101,000
Santa Fe International Corp. (Oil & Gas
(Drilling & Equipment))................. 8,000 281,000
Shaw Group, Inc. (The) (Metal
Fabricators)(b)......................... 8,500 400,562
Terex Corp. (Machinery
(Diversified))(b)....................... 32,000 528,000
Texas Industries, Inc. (Construction
(Cement & Aggregates)).................. 6,000 194,625
Titan Corp. (The) (Computers (Software &
Services))(b)........................... 1,500 44,531
Tower Automotive, Inc. (Auto Parts &
Equipment)(b)........................... 12,000 146,250
Triad Hospitals, Inc. (Health Care
(Hospital Management))(b)............... 11,000 276,375
Trigon Healthcare, Inc. (Health Care
(Managed Care))(b)...................... 9,000 477,000
Valassis Communications, Inc. (Specialty
Printing)(b)............................ 15,500 521,188
Vintage Petroleum, Inc. (Oil & Gas
(Exploration & Production))............. 5,000 90,000
-------------------------------------------------------------------
TOTAL U.S. COMMON STOCKS
(IDENTIFIED COST $11,000,353) 12,626,487
-------------------------------------------------------------------
FOREIGN COMMON STOCKS--53.4%
AUSTRALIA--2.0%
BRL Hardy Ltd. (Beverages
(Alcoholic))............................ 75,000 307,016
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
AUSTRALIA--CONTINUED
Pacifica Group Ltd. (Auto Parts &
Equipment).............................. 125,000 $ 340,164
-----------
647,180
-----------
AUSTRIA--1.4%
Plaut AG (Services (Commercial &
Consumer))(b)........................... 16,520 327,586
VA Technologie AG (Engineering &
Construction)........................... 2,800 139,820
-----------
467,406
-----------
BELGIUM--0.3%
Keyware Technologies (Services
(Commercial & Consumer))(b)............. 12,000 84,000
BERMUDA--0.7%
Annuity and Life Re (Holdings) Ltd.
(Insurance (Life/ Health)).............. 9,000 221,625
BRAZIL--1.0%
Embraer-Empresa Brasileira de
Aeronautica S.A. ADR
(Aerospace/Defense)(b).................. 15,000 337,500
CANADA--0.6%
Precision Drilling Corp. (Oil & Gas
(Drilling & Equipment))(b).............. 6,000 204,750
FINLAND--1.3%
Finnlines Oyj (Shipping)................ 7,000 144,646
Teleste Corp. Oyj (Electronics
(Component Distributors))............... 9,500 259,685
-----------
404,331
-----------
FRANCE--3.5%
Altran Technologies SA (Services (Data
Processing))............................ 1,500 312,040
Fimatex (Investment
Banking/Brokerage)(b)................... 15,000 203,625
Picogiga (Chemicals (Specialty))(b)..... 4,710 376,210
Sidel SA (Machinery (Diversified))...... 3,000 244,350
-----------
1,136,225
-----------
GERMANY--4.3%
Apcoa Parking AG (Services
(Employment))........................... 3,000 236,288
Bewag Aktiengesellschaft AG Class A
(Electric Companies).................... 11,040 144,242
Consors Discount Broker AG (Investment
Banking/ Brokerage)(b).................. 3,155 320,122
Fag Kugelfischer Georg Schaefer AG
(Metal Fabricators)..................... 16,000 111,194
Intertainment AG (Entertainment)........ 6,400 385,474
Techem AG (Services (Commercial &
Consumer))(b)........................... 7,500 180,691
-----------
1,378,011
-----------
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
HONG KONG--3.3%
Giordano International Ltd. (Retail
(Specialty-Apparel)).................... 751,000 $ 1,064,160
INDIA--0.5%
ICICI Ltd. ADR (Financial
(Diversified)).......................... 10,000 155,000
INDONESIA--0.2%
PT Tigaraksa Satria TBK (Distributors
(Food & Health))........................ 181,000 56,946
IRELAND--0.8%
IFG Group PLC (Financial
(Diversified)).......................... 183,300 263,267
ISRAEL--0.2%
Decode Genetics, Inc. (Biotechnology)... 2,100 53,944
ITALY--1.6%
Banca di Roma SPA (Banks (Major
Regional)).............................. 123,000 139,049
Banca Popolare di Bergamo Credito
Varesino SCRL (Banks (Major
Regional)).............................. 10,130 182,008
Ferretti SPA (Leisure Time
(Products))(b).......................... 71,000 211,844
-----------
532,901
-----------
JAPAN--4.7%
F.C.C. Co. Ltd. (Auto Parts &
Equipment).............................. 45,000 447,633
Kawasumi Laboratories, Inc. (Health Care
(Medical Products & Supplies)).......... 52,000 469,809
Shinmei Electric Co., Ltd. (Electrical
Equipment).............................. 40,000 605,970
-----------
1,523,412
-----------
MEXICO--2.0%
Coca-Cola Femsa SA ADR (Beverages (Non-
Alcoholic))............................. 5,000 99,375
Corporacion Interamericana de
Entretenimiento SA de CV Class B
(Entertainment)(b)...................... 30,000 140,246
Grupo Iusacell S.A. de C.V. ADR
(Telecommunications
(Cellular/Wireless))(b)................. 12,000 158,250
Grupo Radio Centro SA de C.V. ADR
(Broadcasting (Television, Radio &
Cable))................................. 10,000 101,250
TV Azteca SA de CV ADR (Broadcasting
(Television, Radio & Cable))............ 12,000 140,250
-----------
639,371
-----------
NETHERLANDS--1.5%
BE Semiconductor Industries NV
(Equipment (Semiconductors))(b)......... 14,600 209,694
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
NETHERLANDS--CONTINUED
IFCO Systems NV (Containers & Packaging
(Paper))(b)............................. 11,250 $ 260,612
-----------
470,306
-----------
NORWAY--1.3%
Tomra Systems ASA (Machinery
(Diversified)).......................... 15,680 412,480
PORTUGAL--0.5%
BPI-SGPS S.A. - Registered Shares
(Investment Banking/Brokerage).......... 50,010 177,020
SINGAPORE--1.1%
Industrial & Commercial Bank Ltd. (Banks
(Major Regional))....................... 78,000 152,947
Robinson & Co., Ltd. (Retail (Department
Stores))................................ 80,000 204,853
-----------
357,800
-----------
SPAIN--2.8%
Catalana Occidente SA (Insurance
(Property-Casualty)).................... 10,510 146,569
NH Hoteles SA (Lodging-Hotels).......... 30,485 360,162
Red Electrica de Espana (Electric
Companies).............................. 20,000 192,737
Superdiplo SA (Retail (Specialty))(b)... 12,700 208,884
-----------
908,352
-----------
SRI LANKA--0.3%
John Keells Holdings Ltd (Beverages
(Alcoholic))............................ 180,000 108,363
SWEDEN--4.2%
Artimplant AB Class B (Health Care
(Medical Products & Supplies))(b)....... 32,000 415,231
Haldex AB (Machinery (Diversified))..... 18,000 186,461
Invik & Co. AB Class B (Financial
(Diversified)).......................... 2,800 274,785
Ortivus AB Class B (Health Care (Medical
Products & Supplies))(b)................ 47,300 118,627
Saab AB Class B (Electronics
(Defense)).............................. 44,600 359,881
-----------
1,354,985
-----------
TAIWAN--0.2%
Standard Foods Taiwan Ltd. GDR
(Foods)(b).............................. 27,981 79,046
UNITED KINGDOM--13.1%
Access Plus PLC (Services (Commercial &
Consumer)).............................. 85,000 572,871
Charles Stanley Group PLC (Investment
Banking/ Brokerage)..................... 98,633 801,396
DCS Group PLC (Computers (Software &
Services)).............................. 25,000 152,578
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
UNITED KINGDOM--CONTINUED
Gresham Computing PLC (Electronics
(Component Distributors))(b)............ 371,500 $ 166,919
IRE.Tex Group PLC (Containers (Metal &
Glass))(b).............................. 260,000 66,198
London Pacific Group Ltd. ADR (United
Kingdom) (Insurance (Life/Health))...... 13,000 177,937
Rolfe & Nolan PLC (Services (Data
Processing))............................ 100,000 505,474
Singer & Friedlander Group PLC
(Financial (Diversified))............... 140,000 554,599
Teather & Greenwood Holdings PLC
(Financial (Diversified))............... 60,000 635,774
Wilmington Group PLC (Publishing)....... 108,000 604,143
-----------
4,237,889
-----------
-------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $16,570,011) 17,276,270
-------------------------------------------------------------------
UNIT INVESTMENT TRUSTS--1.2%
AMEX Financial Select Sector Depository
Receipts................................ 15,000 389,766
-------------------------------------------------------------------
TOTAL UNIT INVESTMENT TRUSTS
(IDENTIFIED COST $347,010) 389,766
-------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--93.6%
(IDENTIFIED COST $27,917,374) 30,292,523
-------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------ ------ -----------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--5.9%
COMMERCIAL PAPER--5.9%
Koch Industries, Inc. 6.62%,
8/1/00........................ A-1+ $775 $ 775,000
Wal-Mart Stores, Inc. 6.47%,
8/1/00........................ A-1 260 260,000
Coca-Cola Co. 6.48%, 8/7/00... A-1 260 259,719
Albertson's, Inc. 6.49%,
8/8/00........................ A-1+ 615 614,224
-----------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $1,908,943) 1,908,943
-----------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.5%
(IDENTIFIED COST $29,826,317) 32,201,466(a)
Cash and receivables, less liabilities--0.5% 157,424
------------
NET ASSETS--100.0% $ 32,358,890
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $6,897,736 and gross
depreciation of $4,597,798 for federal income tax purposes. At July 31,
2000, the aggregate cost of securities for federal income tax purpose was
$29,901,528.
(b) Non-income producing.
See Notes to Financial Statements 9
<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.................................. 2.0%
Auto Parts & Equipment............................. 3.1
Banks (Major Regional)............................. 1.6
Banks (Regional)................................... 1.1
Beverages (Alcoholic).............................. 1.4
Beverages (Non-Alcoholic).......................... 0.3
Biotechnology...................................... 1.6
Broadcasting (Television, Radio & Cable)........... 1.5
Building Materials................................. 0.7
Chemicals (Specialty).............................. 1.9
Communications Equipment........................... 3.8
Computers (Hardware)............................... 0.4
Computers (Peripherals)............................ 1.9
Computers (Software & Services).................... 0.8
Construction (Cement & Aggregates)................. 0.7
Consumer Finance................................... 0.2
Containers & Packaging (Paper)..................... 0.9
Containers (Metal & Glass)......................... 0.2
Distributors (Food & Health)....................... 0.2
Electric Companies................................. 1.1
Electrical Equipment............................... 3.3
Electronics (Component Distributors)............... 1.4
Electronics (Defense).............................. 2.5
Electronics (Semiconductors)....................... 0.3
Engineering & Construction......................... 1.3
Entertainment...................................... 1.8
Equipment (Semiconductors)......................... 0.7
Financial (Diversified)............................ 6.3
Foods.............................................. 0.3
Health Care (Generic And Other).................... 0.8%
Health Care (Hospital Management).................. 0.9
Health Care (Managed Care)......................... 2.6
Health Care (Medical Products & Supplies).......... 4.4
Insurance (Life/Health)............................ 1.3
Insurance (Property-Casualty)...................... 2.4
Investment Banking/Brokerage....................... 5.0
Iron & Steel....................................... 0.3
Leisure Time (Products)............................ 0.7
Lodging-Hotels..................................... 1.2
Machinery (Diversified)............................ 4.6
Metal Fabricators.................................. 1.7
Natural Gas........................................ 1.4
Oil & Gas (Drilling & Equipment)................... 5.4
Oil & Gas (Exploration & Production)............... 0.3
Power Producers (Independent)...................... 1.8
Publishing......................................... 2.0
Reits.............................................. 0.8
Restaurants........................................ 0.6
Retail (Department Stores)......................... 0.7
Retail (Specialty)................................. 0.7
Retail (Specialty-Apparel)......................... 3.6
Savings & Loan Companies........................... 0.5
Services (Commercial & Consumer)................... 5.5
Services (Data Processing)......................... 2.7
Services (Employment).............................. 0.8
Shipping........................................... 0.5
Specialty Printing................................. 1.7
Telecommunications (Cellular/Wireless)............. 1.8
-----
100.0%
=====
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $29,826,317) $32,201,466
Cash 19,015
Receivables
Investment securities sold 253,360
Fund shares sold 23,612
Dividends and interest 14,601
Tax reclaim 5,097
Prepaid expenses 280
-----------
Total assets 32,517,431
-----------
LIABILITIES
Payables
Fund shares repurchased 47,593
Transfer agent fee 16,547
Distribution fee 14,146
Investment advisory fee 7,761
Trustees' fee 6,233
Financial agent fee 5,369
Administration fee 4,184
Accrued expenses 56,708
-----------
Total liabilities 158,541
-----------
NET ASSETS $32,358,890
===========
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $24,641,896
Distributions in excess of net investment income (62,620)
Accumulated net realized gain 5,404,723
Net unrealized appreciation 2,374,891
-----------
NET ASSETS $32,358,890
===========
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $21,220,859) 1,550,320
Net asset value per share $13.69
Offering price per share $13.69/(1-5.75%) $14.53
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $11,138,031) 835,944
Net asset value and offering price per share $13.32
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED JULY 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 306,675
Interest 61,950
Foreign taxes withheld (17,319)
----------
Total investment income 351,306
----------
EXPENSES
Investment advisory fee 248,454
Distribution fee, Class A 47,174
Distribution fee, Class B 103,604
Financial agent fee 64,079
Administration fee 43,848
Transfer agent 72,229
Custodian 56,592
Professional 33,255
Registration 26,404
Printing 25,234
Trustees 21,989
Miscellaneous 13,548
----------
Total expenses 756,410
Less expenses borne by investment adviser (64,880)
----------
Net expenses 691,530
----------
NET INVESTMENT LOSS (340,224)
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 6,743,577
Net realized loss on foreign currency transactions (6,336)
Net change in unrealized appreciation (depreciation) on
investments 2,120,765
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions (125)
----------
NET GAIN ON INVESTMENTS 8,857,881
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $8,517,657
==========
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
7/31/00 7/31/99
----------- -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (340,224) $ (199,318)
Net realized gain (loss) 6,737,241 (940,765)
Net change in unrealized appreciation
(depreciation) 2,120,640 1,799,015
----------- -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 8,517,657 658,932
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A -- (435,832)
Net realized gains, Class B -- (289,554)
In excess of net realized gains, Class
A -- (595,185)
In excess of net realized gains, Class
B -- (395,424)
----------- -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS -- (1,715,995)
----------- -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (850,427
and 543,132 shares, respectively) 10,482,399 5,038,303
Net asset value of shares issued from
reinvestment of distributions
(0 and 119,451 shares, respectively) -- 992,705
Cost of shares repurchased (768,886
and 953,295 shares, respectively) (9,348,086) (8,709,664)
----------- -----------
Total 1,134,313 (2,678,656)
----------- -----------
CLASS B
Proceeds from sales of shares (135,542
and 83,960 shares, respectively) 1,611,066 738,926
Net asset value of shares issued from
reinvestment of distributions
(0 and 75,170 shares, respectively) -- 615,640
Cost of shares repurchased (187,694
and 483,883 shares, respectively) (2,203,141) (4,224,626)
----------- -----------
Total (592,075) (2,870,060)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 542,238 (5,548,716)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS 9,059,895 (6,605,779)
NET ASSETS
Beginning of period 23,298,995 29,904,774
----------- -----------
END OF PERIOD [INCLUDING DISTRIBUTIONS
IN EXCESS OF NET INVESTMENT INCOME
OF ($62,620) AND ($56,055),
RESPECTIVELY] $32,358,890 $23,298,995
=========== ===========
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen Global Small Cap Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------
FROM
YEAR ENDED JULY 31, INCEPTION
----------------------------------------- 9/4/96 TO
2000 1999 1998 7/31/97
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.96 $ 10.11 $ 11.08 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(4) (0.12) (0.04) (0.07) (0.03)
Net realized and unrealized gain (loss) 3.85 0.52 0.14 1.11
--------- --------- --------- -------
TOTAL FROM INVESTMENT OPERATIONS 3.73 0.48 0.07 1.08
--------- --------- --------- -------
LESS DISTRIBUTIONS
Dividends from net realized gains -- (0.27) (0.89) --
In excess of net realized gains -- (0.36) -- --
In excess of net investment income -- -- (0.15) --
--------- --------- --------- -------
TOTAL DISTRIBUTIONS -- (0.63) (1.04) --
--------- --------- --------- -------
Change in net asset value 3.73 (0.15) (0.97) 1.08
--------- --------- --------- -------
NET ASSET VALUE, END OF PERIOD $ 13.69 $ 9.96 $ 10.11 $ 11.08
========= ========= ========= =======
Total return(1) 37.45% 5.99% 1.86% 10.80%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $21,221 $14,626 $17,781 $23,874
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 2.10% 2.10% 2.10% 2.10%(2)
Net investment income (loss) (0.84)% (0.50)% (0.65)% (0.32)%(2)
Portfolio turnover 112% 81% 212% 162%(3)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------
FROM
YEAR ENDED JULY 31, INCEPTION
----------------------------------------- 9/4/96 TO
2000 1999 1998 7/31/97
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.77 $ 10.00 $ 11.00 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(4) (0.22) (0.11) (0.14) (0.10)
Net realized and unrealized gain (loss) 3.77 0.51 0.14 1.10
--------- --------- --------- -------
TOTAL FROM INVESTMENT OPERATIONS 3.55 0.40 -- 1.00
--------- --------- --------- -------
LESS DISTRIBUTIONS
Dividends from net realized gains -- (0.27) (0.89) --
In excess of net realized gains -- (0.36) -- --
In excess of net investment income -- -- (0.11) --
--------- --------- --------- -------
TOTAL DISTRIBUTIONS -- (0.63) (1.00) --
--------- --------- --------- -------
Change in net asset value 3.55 (0.23) (1.00) 1.00
--------- --------- --------- -------
NET ASSET VALUE, END OF PERIOD $ 13.32 $ 9.77 $ 10.00 $ 11.00
========= ========= ========= =======
Total return(1) 36.34% 5.22% 1.12% 10.00%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $11,138 $8,673 $12,123 $17,658
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(6) 2.85% 2.85% 2.85% 2.85%(2)
Net investment income (loss) (1.60)% (1.26)% (1.40)% (1.07)%(2)
Portfolio turnover 112% 81% 212% 162%(3)
</TABLE>
<TABLE>
<C> <S>
(1) Maximum sales charges are not reflected in the total
return calculation.
(2) Annualized.
(3) Not annualized.
(4) Computed using average shares outstanding.
(5) If the investment adviser had not waived fees and
reimbursed expenses, the ratio of operating expenses to
average net assets would have been 2.32%, 2.36%, 2.37% and
2.61% for the periods ended July 31, 2000, 1999, 1998 and
1997, respectively.
(6) If the investment adviser had not waived fees and
reimbursed expenses, the ratio of operating expenses to
average net assets would have been 3.07%, 3.11%, 3.12% and
3.36% for the periods ended July 31, 2000, 1999, 1998 and
1997, respectively.
</TABLE>
See Notes to Financial Statements 13
<PAGE>
PHOENIX-ABERDEEN NEW ASIA FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
A: The Fund is appropriate for investors seeking long-term capital appreciation
by investing primarily in a diversified portfolio of equity securities in
countries throughout Asia, excluding 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: HOW DID THE FUND PERFORM OVER THE LAST YEAR?
A: For the 12 months ended July 31, Class A shares returned 4.25% and Class B
shares returned 3.44% compared with a return of 2.26% for the Fund's benchmark
index, 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 WERE SOME OF THE FACTORS THAT AFFECTED THE REGION'S MARKETS?
A: A year ago, most Asian economies were just emerging from the region's
financial crisis. Looking back now, what has been surprising is the speed of the
recovery. Few investors, ourselves included, thought these economies would be so
resilient. The continued expansion in the U.S. has been especially critical. The
U.S. has been the so-called "importer of last resort," providing demand for
Asia's exports. An improving global economy has helped, and rising growth in
Europe and an upswing in foreign direct investment into the region have also
contributed.
Stock markets in the region meanwhile have had a mixed time during the 12
months through July, with most giving up the gains made in the last six months
of 1999. The sudden boom in technology that saw the Nasdaq almost double between
October 1999 and February 2000 infected Asia as well, with market activity
becoming more concentrated. Within some countries, there has been a huge
performance divergence, as new, tech-rich exchanges outperformed the
old-economy.
Given its parlous state 18 months ago, Korea arguably showed the most
single-mindedness. GDP grew around 12% through 1999, thanks to a rapid pick-up
in exports. That created the expectation of higher earnings. But more than this,
the government moved to break up conglomerates and introduce more transparency
into lending. Korea also aggressively embraced the Internet -- and now has six
million regular users. Hong Kong, in particular, saw dozens of new IPO listings,
particularly on its Growth Enterprise Market, a new tech-dominated exchange.
Many offerings soared on their initial issue as limited free floats created a
price squeeze.
Other stock markets that performed well included India, where software
stocks have been popular, and Taiwan, which has a strong franchise as an
original-equipment maker/contract manufacturer in assorted technology fields
such as semi-conductors, PC hardware and wafer fabrication.
(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.
14
<PAGE>
PHOENIX-ABERDEEN NEW ASIA FUND (CONTINUED)
India's advance also owed something to renewed confidence following the
re-election in October of the ruling party on a reform agenda.
In Southeast Asia, Singapore has stood out because of the government's
relentless drive to open up key strategic sectors like banking, telecoms and
transport to competition, which led to value creation via company de-mergers,
buy-backs and share-class convergence. Corporate governance has also become an
issue.
For a while earlier this year, the "hot money" left the republic for
neighboring Malaysia, where hopes of an early return to benchmark regional
weightings, a bullish electronics-led export sector and loan-backed growth gave
that market fresh impetus. However, money appears to be flowing back towards
Singapore. Safety has become a virtue.
Q: WHAT ABOUT OTHER STOCK MARKETS?
A: On the whole, the shrunken base of regional exchanges early in the period
meant that even a modest revival in buying was likely to lift stock prices. In
addition, falling interest rates and inflation provided a favorable backdrop for
domestic investors. Cheap currencies, quickly stabilized by improving balance of
payments, provided an additional draw for foreign buying.
Unfortunately, less developed markets, such as Thailand, Indonesia and the
Philippines, were unable to sustain initial gains. Investors grew tired at the
lack of progress on underlying structural reform and the effect of the
ballooning cost of bank recapitalization on equity prices.
The lack of exposure to technology also left these markets at a
disadvantage. Investors were keen to play the tech theme during the Nasdaq's
climb through the turn of the year. Local stocks, chiefly outsourcers and
telecoms, were rapidly reevaluated, delivering easy gains. Lack of supply
exacerbated the trend, encouraging a vibrant IPO market, especially for
dot-coms. Since the tech bubble burst, the two-tier complexion of Asian
exchanges has faded. However, Southeast Asian markets, with honorable
exceptions, have appeared no less unloved.
At the end of the reporting period, attention shifted to China. U.S.
congressional approval has paved the way for China's inclusion in the WTO. This
has coincided with renewed hope that the mainland economy, after years of
deflation, is once again expanding. Listed stocks have benefited from renewed
foreign interest. However, we are dubious of the quality of many of them.
Whether China can effect a successful transition into a market-oriented economy,
and whether they will prosper, is debatable. Indeed, it all appears very
speculative at this stage, in our view.
Q: WHAT IS YOUR OUTLOOK FOR ASIAN MARKETS?
A: At the end of the first quarter, Asia's prospects looked upbeat. Even though
the technology rally was beginning to unwind, there was no shortage of
confidence. Now technology issues are struggling to advance, and investors are
looking for new ideas. As long as uncertainty prevails on the scope of U.S.
interest rate rises, external factors will play the most significant role.
The conventional wisdom is that Asian exports will suffer if the U.S.
economy takes a "hard landing." In recent weeks that possibility has retreated.
Most pundits theorize that a further 0.25% rate hike will be sufficient to
ensure sustainable non-inflationary growth. Asian countries now look less
vulnerable to interest rate differentials, although Indonesia and the
Philippines still suffer from high debt servicing costs
15
<PAGE>
PHOENIX-ABERDEEN NEW ASIA FUND (CONTINUED)
brought on by persistent government overspending. The majority of countries are
otherwise happy to let exchange rates drift, given the requirement to keep
exports cheap. At this stage in the cycle, we believe that they can do so. There
is little significant import growth, inflation is absent and domestic demand
robust.
If the currency issue is overdone, the same cannot be said of corporate
restructuring. Several countries have failed with financial sector reform, which
remains critical to credit expansion and thus growth. Thailand and Korea may pay
the penalty next year in slower-than-expected growth. Elsewhere, political
accommodation of vested interests is a persistent problem. Bank recapitalization
has fallen behind, and goodwill towards new leaders has dissipated. For example,
Delhi is losing the impetus for change, power struggles are rife in Jakarta, and
Manila has a lame duck president.
With capital markets shut off and bank finance scarce, easy financing is
being denied companies. That will help keep up the pressure for corporate
change. Investors meanwhile should consider company fundamentals. Despite the
surface problems, many companies are benefiting from the cyclical upturn, and
earnings are improving. In short, Asia is still looking up.
AUGUST 18, 2000
16
<PAGE>
Phoenix-Aberdeen New Asia Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIOD ENDING 7/31/00
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR TO 7/31/00 DATE
-------- ---------- ---------
<S> <C> <C> <C>
Class A Shares at NAV(2) 4.25% (2.27)% 9/4/96
Class A Shares at POP(3) (1.74) (3.74) 9/4/96
Class B Shares at NAV(2) 3.44 (3.03) 9/4/96
Class B Shares with CDSC(4) (0.56) (3.50) 9/4/96
MSCI AC Asia Pacific Ex Japan Index(7) 2.26 (2.45) Note 5
</TABLE>
<TABLE>
<C> <S>
(1) Total returns are historical and include changes in share
price and the reinvestment of both dividends and capital
gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the
effect of any sales charge.
(3) "POP" (Public Offering Price) total returns include the
effect of the maximum front-end 5.75% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to
redemptions of certain classes of shares that do not have
a sales charge applied at the time of purchase. CDSC
charges for B shares decline from 5% to 0% over a five
year period.
(5) Index information from 9/30/96 to 7/31/00.
(6) This chart illustrates POP returns on Class A shares and
CDSC returns for Class B shares since inception.
(7) The MSCI AC (Morgan Stanley Capital International All
Country) Asia Pacific Ex (Excluding) Japan Index is an
unmanaged, commonly used measure of stock market
performance in Asia and the Pacific Basin. The index's
performance does not reflect sales charges.
All returns represent past performance which may not be
indicative of future performance. The investment return
and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth
more or less than their original cost.
</TABLE>
GROWTH OF $10,000 PERIODS ENDING 7/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX - ABERDEEN PHOENIX - ABERDEEN MSCI AC ASIA
NEW ASIA FUND NEW ASIA FUND PACIFIC EX
CLASS A (6) CLASS B (6) JAPAN INDEX (7)
<S> <C> <C> <C>
09/04/96 $9,425 $10,000 $10,000
07/31/97 $9,895 $10,437 $10,968
07/31/98 $5,404 $5,652 $5,648
07/31/99 $8,265 $8,573 $8,893
07/31/00 $8,617 $8,700 $9,094
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
9/4/96 (inception of the Fund) in Class A and Class B shares. The total return
for Class A shares reflects the maximum sales charge of 5.75% on the initial
investment. The total return for Class B shares reflects the CDSC charges which
decline from 5% to 0% over a five year period. Performance assumes dividends and
capital gains are reinvested.
COUNTRY WEIGHTINGS 7/31/00
As a percentage of equity holdings
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Singapore 16%
Hong Kong 15%
Australia 12%
South Korea 12%
Taiwan 9%
Malaysia 8%
India 7%
Other 21%
</TABLE>
See Notes to Financial Statements 17
<PAGE>
Phoenix-Aberdeen New Asia Fund
TEN LARGEST HOLDINGS AT JULY 31, 2000 (AS A PERCENTAGE OF TOTAL NET ASSETS)
<TABLE>
<C> <S> <C>
1. Giordano International Ltd. 3.8%
HONG KONG MANUFACTURER AND RETAILER OF CASUAL APPAREL
2. United Overseas Bank Ltd. 3.6%
PROVIDES A FULL RANGE OF COMMERCIAL BANKING AND FINANCIAL SERVICES
WITHIN SINGAPORE
3. Pohang Iron & Steel Co. Ltd. 3.4%
KOREAN STEEL PRODUCER FOR THE CONSTRUCTION AND SHIPPING INDUSTRIES
4. CDL Hotels International Ltd. 3.3%
HONG KONG HOTEL OPERATOR
5. BRL Hardy Ltd. 3.2%
OWNS AND OPERATES VINEYARDS IN AUSTRALIA
6. HSBC Holdings PLC 3.0%
INTERNATIONAL BANKING ORGANIZATION WITH SIGNIFICANT OPERATIONS IN
ASIA
7. Swire Pacific Ltd. Class B 2.9%
OPERATOR OF TRANSPORT AND TRADING SERVICES IN THE CHINA SEA REGION
8. Singapore Airlines Ltd. 2.9%
MAJOR INTERNATIONAL AIRLINE OPERATOR
9. Bank Sinopac 2.8%
TAIWANESE COMMERCIAL AND CONSUMER BANK
10. Korea Telecom Corp. 2.8%
KOREAN TELECOMMUNICATIONS OPERATOR
</TABLE>
INVESTMENTS AT JULY 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
---------- -----------
<S> <C> <C> <C>
FOREIGN COMMON STOCKS--96.5%
AUSTRALIA--11.9%
Australian Gas Light Co., Ltd. (Natural
Gas).................................... 35,000 $ 208,933
BRL Hardy Ltd. (Beverages
(Alcoholic))............................ 100,000 409,354
Broken Hill Proprietary Co. Ltd.
(Manufacturing (Diversified))........... 12,000 126,801
Commonwealth Bank of Australia (Banks
(Major Regional))....................... 9,000 144,845
Leighton Holdings Ltd. (Engineering &
Construction)........................... 60,000 203,230
Pacifica Group Ltd. (Auto Parts &
Equipment).............................. 75,000 204,098
QBE Insurance Group Ltd. (Insurance
(Property-Casualty)).................... 55,000 248,392
-----------
1,545,653
-----------
HONG KONG--14.4%
CDL Hotels International Ltd.
(Lodging-Hotels)........................ 1,000,000 432,791
Cheung Kong (Holdings) Ltd. (Financial
(Diversified)).......................... 18,000 212,356
Giordano International Ltd. (Retail
(Specialty-Apparel)).................... 350,000 495,946
Li & Fung Ltd. (Distributors (Food &
Health))................................ 39,000 194,044
<CAPTION>
SHARES VALUE
---------- -----------
<S> <C> <C> <C>
HONG KONG--CONTINUED
Sun Hung Kai Properties Ltd. (Financial
(Diversified)).......................... 20,000 $ 159,011
Swire Pacific Ltd. Class B
(Manufacturing (Diversified))........... 450,000 375,086
-----------
1,869,234
-----------
INDIA--6.8%
BSES Ltd. GDR (Electric Companies)...... 10,000 157,500
Gas Authority of India Ltd. GDR (Oil &
Gas (Refining & Marketing))............. 22,500 149,062
ICICI Ltd. ADR (Financial
(Diversified)).......................... 12,000 186,000
Mahanagar Telephone Nigam Ltd. GDR
(Telephone)............................. 25,000 218,750
Videsh Sanchar Nigam Ltd. GDR
(Telephone)............................. 16,000 176,000
-----------
887,312
-----------
INDONESIA--5.1%
PT Gudang Garam Tbk (Tobacco)........... 130,000 194,641
PT Indonesian Satellite Corp. Tbk
(Telephone)............................. 175,000 178,152
PT Unilever Indonesia Tbk (Household
Products (Non-Durable))................. 20,000 282,931
-----------
655,724
-----------
</TABLE>
18 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen New Asia Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- -----------
<S> <C> <C> <C>
MALAYSIA--7.5%
Carlsberg Brewery Malaysia Berhad
(Beverages (Alcoholic))................. 75,000 $ 256,586
Malaysian Oxygen Berhad (Chemicals
(Specialty))............................ 95,000 250,007
Public Bank Berhad (Banks (Major
Regional)).............................. 250,000 205,269
Sime UEP Properties Berhad
(Homebuilding).......................... 200,000 263,165
-----------
975,027
-----------
PHILIPPINES--3.6%
Ayala Land, Inc. (Financial
(Diversified)).......................... 1,250,000 141,829
Bank of The Philippine Islands (Banks
(Major Regional))....................... 75,000 109,292
La Tondena Distillers, Inc. (Beverages
(Alcoholic))............................ 300,000 213,578
-----------
464,699
-----------
SINGAPORE--16.2%
City Developments Ltd. (Financial
(Diversified)).......................... 50,000 213,388
Clipsal Industries (Holdings) Ltd.
(Electrical Equipment).................. 150,000 196,375
NatSteel Ltd. (Metal Fabricators)....... 100,000 136,684
Oversea-Chinese Banking Corp. Ltd.
(Banks (Major Regional))................ 30,000 218,002
Robinson & Co., Ltd. (Retail (Department
Stores))................................ 90,000 230,459
Singapore Airlines Ltd. (Airlines)...... 37,000 373,429
Singapore Press Holdings Ltd.
(Publishing (Newspapers))............... 15,000 255,201
United Overseas Bank Ltd. (Banks (Major
Regional)).............................. 65,920 471,419
-----------
2,094,957
-----------
SOUTH KOREA--9.8%
H&CB (Banks (Major Regional))........... 8,000 165,486
Kookmin Bank (Banks (Major Regional))... 15,000 177,978
Korea Telecom Corp. (Telephone)......... 5,000 357,299
Pohang Iron & Steel Co., Ltd. (Iron &
Steel).................................. 5,500 440,639
Seoul City Gas Co., Ltd. (Natural
Gas).................................... 10,000 134,323
-----------
1,275,725
-----------
<CAPTION>
SHARES VALUE
---------- -----------
<S> <C> <C> <C>
SRI LANKA--1.9%
John Keells Holdings Ltd. (Beverages
(Alcoholic))............................ 225,000 $ 135,454
National Development Bank Ltd. (Banks
(Major Regional))....................... 150,000 113,916
-----------
249,370
-----------
TAIWAN--9.0%
Bank Sinopac (Banks (Major
Regional))(b)........................... 550,000 368,925
President Chain Store Corp. (Retail
(Food Chains)).......................... 70,080 258,769
Standard Foods Taiwan Ltd. GDR
(Foods)(b).............................. 57,650 162,861
Taiwan Secom (Services (Commercial &
Consumer)).............................. 117,000 165,262
Taiwan Semiconductor Manufacturing Co.
Ltd. (Equipment (Semiconductors))(b).... 50,000 204,779
-----------
1,160,596
-----------
THAILAND--5.5%
BEC World Public Co., Ltd.
(Entertainment)......................... 30,000 175,708
Hana Microelectronics Public Co., Ltd.
(Electronics (Component
Distributors)).......................... 40,000 284,617
Phatra Insurance Public Co., Ltd.
(Insurance (Property-Casualty))......... 73,700 92,752
Ruam Pattana Fund II (Financial
(Diversified))(b)....................... 1,500,000 156,104
-----------
709,181
-----------
UNITED KINGDOM--4.8%
HSBC Holdings PLC (Financial
(Diversified)).......................... 30,000 394,321
Rowe Evans Investments Group PLC
(Agricultural Products)................. 200,000 223,157
-----------
617,478
-----------
---------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $14,509,451) 12,504,956
---------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 19
<PAGE>
Phoenix-Aberdeen New Asia Fund
<TABLE>
<CAPTION>
SHARES VALUE
---------- -----------
<S> <C> <C> <C>
FOREIGN PREFERRED STOCKS--1.8%
SOUTH KOREA--1.8%
Samsung Electronics (Electronics
(Component Distributors))............... 2,000 $ 232,826
---------------------------------------------------------------------
TOTAL FOREIGN PREFERRED STOCKS
(IDENTIFIED COST $228,861) 232,826
---------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--98.3%
(IDENTIFIED COST $14,738,312) 12,737,782(a)
Cash and receivables, less liabilities--1.7% 217,435
------------
NET ASSETS--100.0% $ 12,955,217
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $1,659,897 and gross
depreciation of $3,809,130 for federal income tax purposes. At July 31,
2000, the aggregate cost of securities for federal income tax purposes was
$14,887,015.
(b) Non-income producing.
20 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................... 1.7%
Airlines................................ 2.9
Auto Parts & Equipment.................. 1.6
Banks (Major Regional).................. 15.5
Beverages (Alcoholic)................... 8.0
Chemicals (Specialty)................... 2.0
Distributors (Food & Health)............ 1.5
Electric Companies...................... 1.2
Electrical Equipment.................... 1.5
Electronics (Component Distributors).... 4.1
Engineering & Construction.............. 1.6
Entertainment........................... 1.4
Equipment (Semiconductors).............. 1.6
Financial (Diversified)................. 11.5
Foods................................... 1.3
Homebuilding............................ 2.1
Household Products (Non-Durable)........ 2.2
Insurance (Property-Casualty)........... 2.7
Iron & Steel............................ 3.5
Lodging-Hotels.......................... 3.4
Manufacturing (Diversified)............. 3.9
Metal Fabricators....................... 1.1
Natural Gas............................. 2.7
Oil & Gas (Refining & Marketing)........ 1.2
Publishing (Newspapers)................. 2.0
Retail (Department Stores).............. 1.8
Retail (Food Chains).................... 2.0
Retail (Specialty-Apparel).............. 3.9
Services (Commercial & Consumer)........ 1.3
Telephone............................... 7.3
Tobacco................................. 1.5
------
100.0%
======
</TABLE>
See Notes to Financial Statements 21
<PAGE>
Phoenix-Aberdeen New Asia Fund
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $14,738,312) $12,737,782
Foreign currency at value
(Identified cost $75,570) 75,084
Receivables
Fund shares sold 334,280
Investment securities sold 143,702
Receivable from adviser 60,638
Dividends and interest 22,671
Prepaid expenses 96
-----------
Total assets 13,374,253
-----------
LIABILITIES
Payables
Custodian 83,147
Fund shares repurchased 206,122
Investment securities purchased 49,600
Transfer agent fee 10,897
Trustees' fee 6,233
Distribution fee 4,975
Financial agent fee 3,824
Administration fee 1,682
Accrued expenses 52,556
-----------
Total liabilities 419,036
-----------
NET ASSETS $12,955,217
===========
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $16,187,116
Undistributed net investment income 525,950
Accumulated net realized loss (1,757,000)
Net unrealized depreciation (2,000,849)
-----------
NET ASSETS $12,955,217
===========
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $9,637,853) 1,123,415
Net asset value per share $8.58
Offering price per share $8.58/(1-5.75%) $9.10
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $3,317,364) 394,355
Net asset value and offering price per share $8.41
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED JULY 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 509,500
Interest 20,108
Foreign taxes withheld (25,676)
-----------
Total investment income 503,932
-----------
EXPENSES
Investment advisory fee 115,170
Distribution fee, Class A 24,980
Distribution fee, Class B 35,573
Financial agent fee 51,200
Administration fee 20,324
Custodian 67,911
Transfer agent 57,838
Professional 32,246
Printing 23,669
Registration 23,085
Trustees 21,989
Miscellaneous 14,245
-----------
Total expenses 488,230
Less expenses borne by investment adviser (177,011)
-----------
Net expenses 311,219
-----------
NET INVESTMENT INCOME 192,713
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 2,050,169
Net realized loss on foreign currency transactions (15,846)
Net change in unrealized appreciation (depreciation) on
investments (1,556,427)
Net change in unrealized appreciation (depreciation) on
foreign currency and foreign currency transactions (2,793)
-----------
NET GAIN ON INVESTMENTS 475,103
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 667,816
===========
</TABLE>
22 See Notes to Financial Statements
<PAGE>
Phoenix-Aberdeen New Asia Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
7/31/00 7/31/99
----------- -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 192,713 $ 81,072
Net realized gain (loss) 2,034,323 (617,377)
Net change in unrealized appreciation
(depreciation) (1,559,220) 4,773,146
----------- -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 667,816 4,236,841
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A -- (7,556)
Net investment income, Class B -- (1,990)
In excess of net investment income,
Class A -- (65,904)
In excess of net investment income,
Class B -- (17,358)
----------- -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS -- (92,808)
----------- -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(1,928,260 and 1,223,989 shares,
respectively) 16,315,574 8,368,949
Net asset value of shares issued
from reinvestment of distributions
(0 and 11,699 shares,
respectively) -- 71,364
Cost of shares repurchased
(1,907,249 and 1,299,843 shares,
respectively) (16,283,370) (8,708,720)
----------- -----------
Total 32,204 (268,407)
----------- -----------
CLASS B
Proceeds from sales of shares
(70,377 and 81,037 shares,
respectively) 608,044 538,924
Net asset value of shares issued
from reinvestment of distributions
(0 and 2,871 shares, respectively) -- 17,372
Cost of shares repurchased (104,294
and 165,810 shares, respectively) (901,309) (991,898)
----------- -----------
Total (293,265) (435,602)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (261,061) (704,009)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS 406,755 3,440,024
NET ASSETS
Beginning of period 12,548,462 9,108,438
----------- -----------
END OF PERIOD [INCLUDING
UNDISTRIBUTED NET INVESTMENT INCOME
(LOSS) AND DISTRIBUTIONS IN EXCESS
OF NET INVESTMENT INCOME OF
$525,950 AND ($49,284),
RESPECTIVELY] $12,955,217 $12,548,462
=========== ===========
</TABLE>
See Notes to Financial Statements 23
<PAGE>
Phoenix-Aberdeen New Asia Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------
FROM
YEAR ENDED JULY 31, INCEPTION
------------------------------------- 9/4/96 TO
2000 1999 1998 7/31/97
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.23 $ 5.45 $ 10.44 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(4) 0.15 0.07 0.06 0.09(7)
Net realized and unrealized gain (loss) 0.20 2.78 (4.75) 0.41
--------- --------- --------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.35 2.85 (4.69) 0.50
--------- --------- --------- -------
LESS DISTRIBUTIONS
Dividends from net investment income -- (0.01) (0.10) (0.06)
In excess of net investment income -- (0.06) (0.20) --
--------- --------- --------- -------
TOTAL DISTRIBUTIONS -- (0.07) (0.30) (0.06)
--------- --------- --------- -------
Change in net asset value 0.35 2.78 (4.99) 0.44
--------- --------- --------- -------
NET ASSET VALUE, END OF PERIOD $ 8.58 $ 8.23 $ 5.45 $ 10.44
========= ========= ========= =======
Total return(1) 4.25% 52.94% (45.29)% 4.98%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $9,638 $9,068 $6,352 $13,355
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 2.10% 2.10% 2.10% 2.10%(2)
Net investment income 1.63% 1.03% 0.89% 0.95%(2)
Portfolio turnover 67% 38% 44% 9%(3)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------
FROM
YEAR ENDED JULY 31, INCEPTION
------------------------------------- 9/4/96 TO
2000 1999 1998 7/31/97
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.13 $ 5.40 $ 10.39 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(4) 0.08 0.02 0.01 0.01(7)
Net realized and unrealized gain (loss) 0.20 2.75 (4.73) 0.43
--------- --------- --------- ------
TOTAL FROM INVESTMENT OPERATIONS 0.28 2.77 (4.72) 0.44
--------- --------- --------- ------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- (0.09) (0.05)
In excess of net investment income -- (0.04) (0.18) --
--------- --------- --------- ------
TOTAL DISTRIBUTIONS -- (0.04) (0.27) (0.05)
--------- --------- --------- ------
Change in net asset value 0.28 2.73 (4.99) 0.39
--------- --------- --------- ------
NET ASSET VALUE, END OF PERIOD $ 8.41 $ 8.13 $ 5.40 $10.39
========= ========= ========= ======
Total return(1) 3.44% 51.68% (45.83)% 4.37%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,317 $3,481 $2,756 $6,416
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(6) 2.85% 2.85% 2.85% 2.85%(2)
Net investment income 0.83% 0.30% 0.18% 0.06%(2)
Portfolio turnover 67% 38% 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) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 3.41%,
3.20%, 3.52% and 3.76% for the periods ended July 31, 2000, 1999, 1998 and
1997, respectively.
(6) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 4.15%,
3.95%, 4.27% and 4.51% for the periods ended July 31, 2000, 1999, 1998 and
1997, 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.
24 See Notes to Financial Statements
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2000
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 Global Small Cap Fund 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. The New Asia Fund 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.
Each Series offers both Class A and Class B shares. Effective April 3, 2000,
Class A shares are sold with a front-end sales charge of up to 5.75%. Prior to
that date, the maximum sales charge was 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 accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets, liabilities,
revenues and expenses. Actual results could differ from those estimates.
A. SECURITY VALUATION:
Equity securities are valued at the last sale price, or if there had been no
sale that day, at the 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.
25
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2000 (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 Global Small Cap Series and 0.40%
of the average net assets of the New Asia Series allocated to Aberdeen by the
Adviser for management.
The Adviser has agreed to reimburse the Global Small Cap Series and the New
Asia 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 $6,122 for Class A shares and deferred sales charges of
$37,638 for Class B shares for the year ended July 31, 2000. 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 year ended July 31, 2000, $144,172 was retained by the
Distributor, $56,289 was paid out to unaffiliated participants and $10,870 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 the
subagent's performance. The current fee schedule of PFPC Inc. ranges from 0.085%
to 0.0125% of the average daily net asset values of the Trust. Certain 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 year ended July 31, 2000, transfer agent
fees were $130,067 of which PEPCO retained $8,914 which is net of fees paid to
State Street.
At July 31, 2000, PHL and its affiliates held Trust shares which aggregated
the following:
<TABLE>
<CAPTION>
Aggregate
Net Asset
Shares Value
-------- ----------
<S> <C> <C>
Global Small Cap Fund, Class A.......... 588,481 $8,056,305
New Asia Fund, Class A.................. 309,003 2,651,246
</TABLE>
26
<PAGE>
PHOENIX-ABERDEEN SERIES FUND
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2000 (CONTINUED)
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the year ended July 31, 2000
(excluding U.S. Government and agency securities, short-term securities, and
forward currency contracts) aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
----------- -----------
<S> <C> <C>
Global Small Cap Fund................... $31,199,676 $32,832,422
New Asia Fund........................... 8,772,470 9,027,822
</TABLE>
There were no purchases or sales of long-term U.S. Government and agency
securities during the year ended July 31, 2000.
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, 2000, the New Asia Fund had a capital loss carryover of
$1,644,109, expiring in 2007. This may be used to offset future capital gains.
For the year ended July 31, 2000 the Global Small Cap Fund and the New Asia
Fund were able to utilize losses deferred in the prior year against current year
capital gains in the amount of $731,216 and $1,633,919, respectively.
Under current tax law, foreign currency and capital losses realized after
October 31 may be deferred and treated as occurring on the first day of the
following fiscal year. For the year ended July 31, 2000, the Global Small Cap
Fund and the New Asia Fund had foreign currency losses deferred in the amounts
of $6,008 and $21,836, respectively.
For the year ended July 31, 2000, prior year losses deferred were utilized as
follows: Global Small Cap Fund $253,741 of capital and $1,226 of currency and
New Asia Fund $134,909 of capital.
6. RECLASSIFICATION OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Trust have recorded several
reclassifications in the capital accounts. These reclassifications have no
impact on the net asset value of the Trust and are designed generally to present
undistributed income and realized gains on a tax basis which is considered to be
more informative to the shareholder. As of July 31, 2000, the Trust recorded the
following reclassifications to increase (decrease) the accounts listed below:
<TABLE>
<CAPTION>
Capital paid
Undistributed Accumulated in on shares
net investment net realized of beneficial
income (loss) gain (loss) interest
-------------- ------------ -------------
<S> <C> <C> <C>
Global Small Cap Fund................... $333,659 $(337,984) $ 4,325
New Asia Fund........................... 382,521 (370,332) (12,189)
</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.
27
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[LOGO]
To the Trustees and Shareholders of
Phoenix-Aberdeen Series Fund
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments and the related statements of operations
and of changes in net assets, and the financial highlights present fairly, in
all material respects, the financial position of the Global Small Cap Fund and
the New Asia Fund (constituting the Phoenix-Aberdeen Series Fund, hereinafter
referred to as the "Trust") at July 31, 2000, the results of each of their
operations, the changes in each of their net assets and the financial highlights
for the periods indicated, in conformity with accounting principles generally
accepted in the United States. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at July 31,
2000 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
September 11, 2000
28
<PAGE>
RESULTS OF SHAREHOLDER MEETING (UNAUDITED)
Special meetings of Shareholders of the Phoenix-Aberdeen Series Fund were held
on May 16, 2000 and June 29, 2000 to approve the following matter:
1. Approve a new Rule 12b-1 Distribution Plan for Class B Shares
On the record date for these meetings, the shares outstanding and percentage of
the shares outstanding and entitled to vote that were present by proxy were as
follows:
<TABLE>
<CAPTION>
CLASS OF SHARES SHARES OUTSTANDING PERCENTAGE PRESENT BY PROXY
--------------- ------------------ ---------------------------
<S> <C> <C>
Phoenix-Aberdeen Global Small Cap Fund Class B 838,246 53.39%
Phoenix-Aberdeen New Asia Fund Class B 401,859 54.51%
</TABLE>
NUMBER OF VOTES
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--------- --------- ---------
<S> <C> <C> <C>
1. Approve a new Rule 12b-1 Distribution
Plan for Class B Shares of
Phoenix-Aberdeen Global Small Cap
Fund 381,873 32,668 32,977
2. Approve a new Rule 12b-1 Distribution
Plan for Class B Shares of
Phoenix-Aberdeen New Asia Fund 202,527 12,008 4,519
</TABLE>
29
<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
William R. Moyer, 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
Robert S. Driessen, Vice President
Julie L. Sapia, 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
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
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachusetts 02110
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
www.phoenixinvestments.com
<PAGE>
PRSRT STD
U.S. Postage
P A I D
Andrew
Associates
PHOENIX EQUITY PLANNING CORPORATION
PO Box 2200
Enfield CT 06083-2200
[PHOENIX INVESTMENT PARTNERS LOGO]
For more information about
Phoenix mutual funds, please call
your financial representative or
contact us at 1-800-243-4361 or
www.phoenixinvestments.com.
PXP 190 (9/00)
