<PAGE>
PHOENIX INVESTMENT PARTNERS
SEMIANNUAL REPORT
FEBRUARY 29, 2000
DUFF&PHELPS
OAKHURST
Phoenix-Duff & Phelps
Core Equity Fund
Phoenix-Oakhurst
Growth & Income
Fund
[LOGO]
PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
We are pleased to provide this semiannual financial summary for the
Phoenix-Duff & Phelps Core Equity Fund and the Phoenix-Oakhurst Growth & Income
Fund for the six months ended February 29, 2000.
If you have any questions, please call your financial advisor or a customer
service representative at 1-800-243-1574 between 8:00 a.m. and 6:00 p.m. Eastern
Time, Monday through Friday.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
MARCH 22, 2000
Mutual funds are not insured by the FDIC; are not
deposits or other obligations of a bank and are not
guaranteed by a bank; and are subject to
investment risks, including possible loss of the
principal invested.
1
<PAGE>
Phoenix-Duff & Phelps Core Equity Fund
INVESTMENTS AT FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
COMMON STOCKS--100.3%
BANKS (MAJOR REGIONAL)--0.9%
Wells Fargo Co.......................... 9,500 $ 314,094
BANKS (MONEY CENTER)--1.6%
Firstar Corp............................ 31,100 553,969
CHEMICALS--1.6%
Dow Chemical Co. (The).................. 2,850 309,225
Praxair, Inc............................ 7,450 251,437
-----------
560,662
-----------
COMMUNICATIONS EQUIPMENT--9.2%
Lucent Technologies, Inc................ 19,350 1,151,325
Motorola, Inc........................... 12,000 2,046,000
-----------
3,197,325
-----------
COMPUTERS (HARDWARE)--6.1%
Dell Computer Corp.(b).................. 10,100 412,206
International Business Machines Corp.... 6,650 678,300
Sun Microsystems, Inc.(b)............... 10,850 1,033,462
-----------
2,123,968
-----------
COMPUTERS (NETWORKING)--4.6%
Cisco Systems, Inc.(b).................. 12,124 1,602,641
COMPUTERS (PERIPHERALS)--3.8%
EMC Corp.(b)............................ 11,000 1,309,000
COMPUTERS (SOFTWARE & SERVICES)--4.5%
Microsoft Corp.(b)...................... 17,500 1,564,062
CONSUMER FINANCE--2.6%
Providian Financial Corp................ 13,650 884,691
ELECTRIC COMPANIES--2.8%
Duke Energy Corp........................ 20,200 979,700
ELECTRICAL EQUIPMENT--3.9%
General Electric Co..................... 10,100 1,335,094
ELECTRONICS (SEMICONDUCTORS)--3.1%
Intel Corp.............................. 9,550 1,079,150
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
FINANCIAL (DIVERSIFIED)--2.8%
Fannie Mae.............................. 18,500 $ 980,500
HEALTH CARE (DIVERSIFIED)--3.4%
Warner-Lambert Co....................... 13,650 1,167,928
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--2.2%
Lilly (Eli) & Co........................ 12,550 745,941
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--4.3%
Medtronic, Inc.......................... 30,450 1,474,922
HOUSEHOLD PRODUCTS (NON-DURABLE)--3.9%
Kimberly-Clark Corp..................... 13,300 687,444
Procter & Gamble Co. (The).............. 7,600 668,800
-----------
1,356,244
-----------
INSURANCE (PROPERTY-CASUALTY)--2.2%
MGIC Investment Corp.................... 19,900 743,762
INSURANCE BROKERS--2.0%
Marsh & McLennan Cos., Inc.............. 9,150 707,981
MANUFACTURING (DIVERSIFIED)--4.6%
Honeywell International, Inc............ 17,900 861,437
Tyco International Ltd.................. 19,200 728,400
-----------
1,589,837
-----------
OFFICE EQUIPMENT & SUPPLIES--2.0%
Pitney Bowes, Inc....................... 14,100 697,950
OIL & GAS (EXPLORATION & PRODUCTION)--1.0%
Unocal Corp............................. 12,900 345,075
OIL (DOMESTIC INTEGRATED)--2.4%
Conoco, Inc. Class A.................... 42,500 815,469
OIL (INTERNATIONAL INTEGRATED)--1.5%
Exxon Mobil Corp........................ 6,980 525,681
PAPER & FOREST PRODUCTS--1.6%
Georgia-Pacific Group................... 16,000 555,000
PERSONAL CARE--1.2%
Estee Lauder Companies, Inc. Class A.... 9,400 407,725
</TABLE>
2 See Notes to Financial Statements
<PAGE>
Phoenix-Duff & Phelps Core Equity Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
RESTAURANTS--2.2%
McDonald's Corp......................... 24,600 $ 776,438
RETAIL (DEPARTMENT STORES)--1.8%
Federated Department Stores, Inc.(b).... 16,800 616,350
RETAIL (DRUG STORES)--2.4%
CVS Corp................................ 24,050 841,750
RETAIL (GENERAL MERCHANDISE)--2.2%
Target Corp............................. 12,800 755,200
SERVICES (ADVERTISING/MARKETING)--1.6%
Omnicom Group, Inc...................... 5,950 560,416
SERVICES (COMPUTER SYSTEMS)--2.1%
Computer Sciences Corp.(b).............. 9,400 740,838
SERVICES (DATA PROCESSING)--2.3%
First Data Corp......................... 17,500 787,500
TELECOMMUNICATIONS (LONG DISTANCE)--4.3%
MCI WorldCom, Inc.(b)................... 19,400 865,725
Sprint Corp............................. 10,450 637,450
-----------
1,503,175
-----------
TELEPHONE--1.6%
GTE Corp................................ 9,300 548,700
- ------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $30,359,354) 34,748,738
- ------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--100.3%
(IDENTIFIED COST $30,359,354) 34,748,738
- ------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
---------- -----------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--4.4%
MONEY MARKET MUTUAL FUNDS--4.4%
State Street Global Advisors Seven Seas
Money Market Fund (5.51% seven day
effective yield)........................ 1,530,978 $ 1,530,978
- ---------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $1,530,978) 1,530,978
- ---------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--104.7%
(IDENTIFIED COST $31,890,332) 36,279,716(a)
Cash and receivables, less liabilities--(4.7%) (1,641,641)
-----------
NET ASSETS--100.0% $34,638,075
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $7,379,326 and gross
depreciation of $3,135,056 for federal income tax purposes. At February 29,
2000, the aggregate cost of securities for federal income tax purposes was
$32,035,446.
(b) Non-income producing.
See Notes to Financial Statements
3
<PAGE>
Phoenix-Duff & Phelps Core Equity Fund
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $31,890,332) $ 36,279,716
Receivables
Investment securities sold 305,331
Dividends and interest 53,545
Receivable from adviser 28,257
Fund shares sold 2,771
Prepaid expenses 739
--------------
Total assets 36,670,359
--------------
LIABILITIES
Payables
Fund shares repurchased 1,689,968
Investment securities purchased 257,120
Transfer agent fee 15,796
Distribution fee 13,142
Trustees' fee 9,946
Financial agent fee 6,646
Accrued expenses 39,666
--------------
Total liabilities 2,032,284
--------------
NET ASSETS $ 34,638,075
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 31,332,397
Undistributed net investment loss (92,944)
Accumulated net realized loss (990,762)
Net unrealized appreciation 4,389,384
--------------
NET ASSETS $ 34,638,075
==============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $25,972,056) 2,212,184
Net asset value per share $11.74
Offering price per share $11.74/(1-4.75%) $12.33
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $6,741,560) 584,426
Net asset value and offering price per share $11.54
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $1,924,459) 166,789
Net asset value and offering price per share $11.54
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 212,936
Interest 7,247
--------------
Total investment income 220,183
--------------
EXPENSES
Investment advisory fee 163,279
Distribution fee, Class A 40,753
Distribution fee, Class B 43,093
Distribution fee, Class C 11,601
Financial agent fee 38,742
Transfer agent 35,901
Registration 14,580
Professional 8,534
Trustees 8,454
Printing 8,432
Custodian 6,132
Miscellaneous 2,552
--------------
Total expenses 382,053
Less expenses borne by investment adviser (68,926)
--------------
Net expenses 313,127
--------------
NET INVESTMENT LOSS (92,944)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (807,698)
Net change in unrealized appreciation (depreciation) on
investments 26,333
--------------
NET LOSS ON INVESTMENTS (781,365)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (874,309)
==============
</TABLE>
4 See Notes to Financial Statements
<PAGE>
Phoenix-Duff & Phelps Core Equity Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
2/29/00 Year Ended
(Unaudited) 8/31/99
------------ -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (92,944) $ (58,694)
Net realized gain (loss) (807,698) 944,586
Net change in unrealized appreciation
(depreciation) 26,333 8,988,251
------------ -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (874,309) 9,874,143
------------ -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A (749,891) (261,214)
Net realized gains, Class B (223,144) (57,305)
Net realized gains, Class C (57,248) (20,502)
------------ -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (1,030,283) (339,021)
------------ -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (178,122
and 1,335,911 shares, respectively) 2,268,248 15,137,826
Net asset value of shares issued from
reinvestment of distributions
(58,263 and 21,036 shares,
respectively) 735,279 253,063
Cost of shares repurchased (1,360,802
and 318,410 shares, respectively) (16,810,544) (3,902,092)
------------ -----------
Total (13,807,017) 11,488,797
------------ -----------
CLASS B
Proceeds from sales of shares (23,285
and 163,890 shares, respectively) 286,685 1,900,577
Net asset value of shares issued from
reinvestment of distributions
(16,418 and 1,664 shares,
respectively) 203,748 19,857
Cost of shares repurchased (219,972
and 94,004 shares, respectively) (2,751,943) (1,146,586)
------------ -----------
Total (2,261,510) 773,848
------------ -----------
CLASS C
Proceeds from sales of shares (14,736
and 54,557 shares, respectively) 180,286 630,490
Net asset value of shares issued from
reinvestment of distributions (4,208
and 317 shares, respectively) 52,259 3,792
Cost of shares repurchased (56,170 and
106,979 shares, respectively) (717,160) (1,323,676)
------------ -----------
Total (484,615) (689,394)
------------ -----------
CLASS M
Cost of shares repurchased (0 and
10,032 shares, respectively) -- (109,546)
------------ -----------
Total -- (109,546)
------------ -----------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (16,553,142) 11,463,705
------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS (18,457,734) 20,998,827
NET ASSETS
Beginning of period 53,095,809 32,096,982
------------ -----------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($92,944) AND $0,
RESPECTIVELY] $ 34,638,075 $53,095,809
============ ===========
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Duff & Phelps Core Equity Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
2/29/00 ENDED 9/25/97 TO
(UNAUDITED) 8/31/99 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 12.37 $ 9.87 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.02) 0.01 --
Net realized and unrealized gain (loss) (0.30) 2.57 (0.09)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.32) 2.58 (0.09)
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net realized gains (0.31) (0.08) --
In excess of net investment income -- -- (0.04)
------- ------- -------
TOTAL DISTRIBUTIONS (0.31) (0.08) (0.04)
------- ------- -------
Change in net asset value (0.63) 2.50 (0.13)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 11.74 $ 12.37 $ 9.87
======= ======= =======
Total return(2) (2.73)%(5) 26.12% (0.93)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $25,972 $41,272 $22,683
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 1.25%(6) 1.25% 1.25%(6)
Net investment income (loss) (0.24)%(6) 0.06% 0.02%(6)
Portfolio turnover 34%(5) 82% 83%(5)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
----------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
2/29/00 ENDED 9/25/97 TO
(UNAUDITED) 8/31/99 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 12.20 $ 9.81 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.06) (0.08) (0.08)
Net realized and unrealized gain (loss) (0.29) 2.55 (0.08)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.35) 2.47 (0.16)
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net realized gains (0.31) (0.08) --
In excess of net investment income -- -- (0.03)
------- ------- -------
TOTAL DISTRIBUTIONS (0.31) (0.08) (0.03)
------- ------- -------
Change in net asset value (0.66) 2.39 (0.19)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 11.54 $ 12.20 $ 9.81
======= ======= =======
Total return(2) (3.02)%(5) 25.16% (1.61)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $6,742 $9,333 $6,801
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 2.00%(6) 2.00% 2.00%(6)
Net investment income (loss) (0.97)%(6) (0.69)% (0.73)%(6)
Portfolio turnover 34%(5) 82% 83%(5)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charges are not reflected in the total return calculation.
(3) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.57%,
1.43% and 2.95% for the periods ended February 29, 2000, August 31, 1999
and 1998, respectively.
(4) 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%,
2.18% and 3.70% for the periods ended February 29, 2000, August 31, 1999
and 1998, respectively.
(5) Not annualized.
(6) Annualized.
See Notes to Financial Statements
6
<PAGE>
Phoenix-Duff & Phelps Core Equity Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
2/29/00 ENDED 9/25/97 TO
(UNAUDITED) 8/31/99 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 12.21 $ 9.82 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.06) (0.08) (0.08)
Net realized and unrealized gain (loss) (0.30) 2.55 (0.07)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.36) 2.47 (0.15)
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net realized gains (0.31) (0.08) --
In excess of net investment income -- -- (0.03)
------- ------- -------
TOTAL DISTRIBUTIONS (0.31) (0.08) (0.03)
------- ------- -------
Change in net asset value (0.67) 2.39 (0.18)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 11.54 $ 12.21 $ 9.82
======= ======= =======
Total return(2) (3.10)%(4) 25.13% (1.52)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $1,924 $2,491 $2,514
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 2.00%(5) 2.00% 2.00%(5)
Net investment income (loss) (0.97)%(5) (0.70)% (0.73)%(5)
Portfolio turnover 34%(4) 82% 83%(4)
</TABLE>
(1) Computed using average shares outstanding.
(2) Maximum sales charges are not reflected in the total return calculation.
(3) 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%,
2.18% and 3.70% for the periods ended February 29, 2000, August 31, 1999
and 1998, respectively.
(4) Not annualized.
(5) Annualized.
See Notes to Financial Statements
7
<PAGE>
Phoenix-Oakhurst Growth & Income Fund
INVESTMENTS AT FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMMON STOCKS--94.5%
AEROSPACE/DEFENSE--1.4%
Boeing Co. (The)........................ 84,900 $ 3,130,687
General Dynamics Corp................... 68,100 2,945,325
------------
6,076,012
------------
ALUMINUM--0.3%
Alcoa, Inc.............................. 20,000 1,370,000
AUTO PARTS & EQUIPMENT--0.1%
TRW, Inc................................ 12,400 595,200
AUTOMOBILES--2.6%
Ford Motor Co........................... 157,800 6,568,425
General Motors Corp..................... 68,500 5,210,281
------------
11,778,706
------------
BANKS (MAJOR REGIONAL)--0.3%
Wells Fargo Co.......................... 46,400 1,534,100
BANKS (MONEY CENTER)--2.8%
Bank of America Corp.................... 35,200 1,621,400
Chase Manhattan Corp. (The)............. 93,700 7,460,862
Morgan (J.P.) & Co., Inc................ 33,000 3,663,000
------------
12,745,262
------------
BANKS (REGIONAL)--0.6%
Cullen/Frost Bankers, Inc............... 30,000 645,000
UnionBanCal Corp........................ 64,200 2,062,425
------------
2,707,425
------------
BEVERAGES (ALCOHOLIC)--0.5%
Anheuser-Busch Cos., Inc................ 26,400 1,692,900
Coors (Adolph) Co. Class B.............. 9,500 416,812
------------
2,109,712
------------
BEVERAGES (NON-ALCOHOLIC)--0.8%
Coca-Cola Co. (The)..................... 60,900 2,949,844
PepsiCo, Inc............................ 23,400 754,650
------------
3,704,494
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
BIOTECHNOLOGY--0.2%
Amgen, Inc.(b).......................... 9,900 $ 675,056
BROADCASTING (TELEVISION, RADIO & CABLE)--0.4%
CBS Corp.(b)............................ 8,500 506,281
Chris-Craft Industries, Inc.(b)......... 4,600 302,737
Clear Channel Communications, Inc.(b)... 12,500 832,812
------------
1,641,830
------------
BUILDING MATERIALS--0.0%
Owens Corning........................... 14,700 213,150
CHEMICALS--1.0%
Dow Chemical Co. (The).................. 25,200 2,734,200
Du Pont (E.I.) de Nemours & Co.......... 38,000 1,919,000
------------
4,653,200
------------
CHEMICALS (SPECIALTY)--0.3%
Lubrizol Corp. (The).................... 45,700 1,133,931
COMMUNICATIONS EQUIPMENT--3.6%
ADC Telecommunications, Inc.(b)......... 34,200 1,534,725
Lucent Technologies, Inc................ 88,900 5,289,550
Motorola, Inc........................... 32,000 5,456,000
QUALCOMM, Inc.(b)....................... 19,800 2,820,262
Scientific-Atlanta, Inc................. 7,300 749,619
Tellabs, Inc.(b)........................ 9,200 441,600
------------
16,291,756
------------
COMPUTERS (HARDWARE)--5.3%
Apple Computer, Inc.(b)................. 23,300 2,670,762
Dell Computer Corp.(b).................. 65,000 2,652,812
Electronics for Imaging, Inc.(b)........ 31,800 1,888,125
Hewlett-Packard Co...................... 51,600 6,940,200
International Business Machines Corp.... 53,700 5,477,400
NCR Corp.(b)............................ 16,100 610,794
Sun Microsystems, Inc.(b)............... 37,700 3,590,925
------------
23,831,018
------------
COMPUTERS (NETWORKING)--3.7%
Cabletron Systems, Inc.(b).............. 50,300 2,464,700
Cisco Systems, Inc.(b).................. 107,000 14,144,062
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
COMPUTERS (NETWORKING)--CONTINUED
MatrixOne, Inc.(b)...................... 1,000 $ 25,000
Onvia.com, Inc.(b)...................... 500 10,500
------------
16,644,262
------------
COMPUTERS (PERIPHERALS)--0.5%
EMC Corp.(b)............................ 18,600 2,213,400
COMPUTERS (SOFTWARE & SERVICES)--7.8%
Adobe Systems, Inc...................... 17,100 1,744,200
America Online, Inc.(b)................. 80,600 4,755,400
Computer Associates International,
Inc..................................... 23,400 1,504,912
Compuware Corp.(b)...................... 25,200 557,550
Informix Corp.(b)....................... 46,600 745,600
Microsoft Corp.(b)...................... 191,000 17,070,625
Oracle Corp.(b)......................... 74,800 5,553,900
Rational Software Corp.(b).............. 7,000 497,875
Sterling Software, Inc.(b).............. 10,100 362,337
USWeb Corp.(b).......................... 9,100 353,762
Yahoo!, Inc.(b)......................... 12,000 1,916,250
------------
35,062,411
------------
CONSUMER FINANCE--0.4%
MBNA Corp............................... 59,000 1,342,250
Providian Financial Corp................ 7,200 466,650
------------
1,808,900
------------
CONTAINERS & PACKAGING (PAPER)--0.2%
Temple-Inland, Inc...................... 14,400 736,200
CONTAINERS (METAL & GLASS)--0.1%
Ball Corp............................... 14,800 398,675
DISTRIBUTORS (FOOD & HEALTH)--0.6%
Andrx Corp.(b).......................... 4,600 441,887
Cardinal Health, Inc.................... 18,400 759,000
Patterson Dental Co.(b)................. 13,200 475,612
SUPERVALU, Inc.......................... 51,100 878,281
------------
2,554,780
------------
ELECTRIC COMPANIES--3.7%
DTE Energy Co........................... 82,700 2,496,506
Duke Energy Corp........................ 71,300 3,458,050
Edison International.................... 85,300 2,244,456
Energy East Corp........................ 105,200 2,209,200
GPU, Inc................................ 56,300 1,400,462
Minnesota Power, Inc.................... 33,400 511,437
PECO Energy Co.......................... 19,900 742,519
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
ELECTRIC COMPANIES--CONTINUED
Public Service Enterprise Group, Inc.... 10,400 $ 301,600
Reliant Energy, Inc..................... 42,000 863,625
Unicom Corp............................. 16,800 635,250
UtiliCorp United, Inc................... 104,800 1,716,100
------------
16,579,205
------------
ELECTRICAL EQUIPMENT--4.1%
General Electric Co..................... 124,100 16,404,469
Solectron Corp.(b)...................... 15,000 982,500
Vishay Intertechnology, Inc.(b)......... 20,200 868,600
------------
18,255,569
------------
ELECTRONICS (SEMICONDUCTORS)--5.9%
Adaptec, Inc.(b)........................ 23,700 971,700
Conexant Systems, Inc.(b)............... 12,600 1,237,950
Cypress Semiconductor Corp.(b).......... 13,600 620,500
Integrated Device Technology, Inc.(b)... 24,700 910,812
Intel Corp.............................. 123,200 13,921,600
Micron Technology, Inc.(b).............. 18,400 1,804,350
National Semiconductor Corp.(b)......... 15,100 1,134,387
Texas Instruments, Inc.................. 34,600 5,760,900
------------
26,362,199
------------
ENTERTAINMENT--1.5%
Time Warner, Inc........................ 46,800 4,001,400
Viacom, Inc. Class B(b)................. 50,100 2,793,075
------------
6,794,475
------------
EQUIPMENT (SEMICONDUCTOR)--1.5%
Applied Materials, Inc.(b).............. 20,900 3,823,394
Electoglas, Inc.(b)..................... 21,100 821,581
KLA-Tencor Corp.(b)..................... 9,600 748,200
Lam Research Corp.(b)................... 3,800 593,275
Teradyne, Inc.(b)....................... 9,000 783,000
------------
6,769,450
------------
FINANCIAL (DIVERSIFIED)--5.5%
Ambac Financial Group, Inc.............. 19,000 834,812
American Express Co..................... 3,000 402,562
Citigroup, Inc.......................... 228,400 11,805,425
Fannie Mae.............................. 68,200 3,614,600
Freddie Mac............................. 28,000 1,169,000
Morgan Stanley Dean Witter & Co......... 98,800 6,959,225
------------
24,785,624
------------
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Oakhurst Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
FOODS--1.3%
Hormel Foods Corp....................... 63,600 $ 1,061,325
International Home Foods, Inc.(b)....... 64,600 1,094,163
Keebler Foods Co.(b).................... 39,000 989,625
Kellogg Co.............................. 26,000 658,125
Quaker Oats Co. (The)................... 37,300 2,011,869
------------
5,815,107
------------
FOOTWEAR--0.1%
NIKE, Inc. Class B...................... 10,000 284,375
HARDWARE & TOOLS--0.1%
Black & Decker Corp. (The).............. 10,300 339,256
HEALTH CARE (DIVERSIFIED)--3.3%
Abbott Laboratories..................... 27,100 887,525
Allergan, Inc........................... 11,500 578,594
American Home Products Corp............. 47,000 2,044,500
Bristol-Myers Squibb Co................. 91,600 5,204,025
Johnson & Johnson....................... 43,300 3,106,775
Mallinckrodt, Inc....................... 12,600 310,275
Warner-Lambert Co....................... 30,400 2,601,100
------------
14,732,794
------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--3.6%
Lilly (Eli) & Co........................ 57,500 3,417,656
Merck & Co., Inc........................ 59,500 3,662,969
Pfizer, Inc............................. 167,200 5,371,300
Pharmacia & Upjohn, Inc................. 44,600 2,124,075
Schering-Plough Corp.................... 49,600 1,729,800
------------
16,305,800
------------
HEALTH CARE (MANAGED CARE)--1.2%
Oxford Health Plans, Inc.(b)............ 25,000 385,938
PacifiCare Health Systems, Inc.(b)...... 13,300 604,319
Trigon Healthcare, Inc.(b).............. 34,200 1,092,263
United HealthCare Corp.................. 35,800 1,830,275
Wellpoint Health Networks, Inc.(b)...... 19,700 1,329,750
------------
5,242,545
------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.4%
Bausch & Lomb, Inc...................... 16,200 854,550
Baxter International, Inc............... 20,500 1,117,250
------------
1,971,800
------------
HOMEBUILDING--0.0%
Pulte Corp.............................. 12,600 211,838
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
HOUSEHOLD FURNISHINGS & APPLIANCES--0.2%
Whirlpool Corp.......................... 19,900 $ 1,080,819
HOUSEHOLD PRODUCTS (NON-DURABLE)--1.6%
Church & Dwight Co., Inc................ 23,400 399,263
Kimberly-Clark Corp..................... 55,400 2,863,488
Procter & Gamble Co. (The).............. 44,900 3,951,200
------------
7,213,951
------------
HOUSEWARES--0.3%
Tupperware Corp......................... 66,300 1,139,531
INSURANCE (LIFE/HEALTH)--0.4%
Lincoln National Corp................... 62,900 1,749,406
INSURANCE (MULTI-LINE)--0.5%
CIGNA Corp.............................. 27,200 2,007,700
Loews Corp.............................. 8,000 356,000
------------
2,363,700
------------
INSURANCE (PROPERTY-CASUALTY)--0.0%
MGIC Investment Corp.................... 4,200 156,975
INSURANCE BROKERS--0.6%
Gallagher (Arthur J.) & Co.............. 15,500 792,438
Marsh & McLennan Cos., Inc.............. 21,700 1,679,038
------------
2,471,476
------------
INVESTMENT BANKING/BROKERAGE--1.4%
AXA Financial, Inc...................... 55,400 1,658,538
Donaldson, Lufkin & Jenrette, Inc. -
DLJ..................................... 8,800 382,250
Lehman Brothers Holdings, Inc........... 17,500 1,268,750
Merrill Lynch & Co., Inc................ 28,000 2,870,000
------------
6,179,538
------------
IRON & STEEL--0.3%
Nucor Corp.............................. 27,700 1,376,344
LODGING-HOTELS--0.2%
Carnival Corp........................... 23,300 671,331
MACHINERY (DIVERSIFIED)--0.8%
Dover Corp.............................. 59,000 2,275,188
Ingersoll-Rand Co....................... 15,500 593,844
Tecumseh Products Co. Class A........... 16,100 694,313
------------
3,563,345
------------
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
MANUFACTURING (DIVERSIFIED)--2.5%
American Standard Cos., Inc.(b)......... 28,000 $ 976,500
Honeywell International, Inc............ 12,000 577,500
Minnesota Mining and Manufacturing
Co...................................... 35,200 3,102,000
Tyco International Ltd.................. 120,000 4,552,500
United Technologies Corp................ 41,800 2,129,188
------------
11,337,688
------------
MANUFACTURING (SPECIALIZED)--0.0%
Briggs & Stratton Corp.................. 4,000 133,750
NATURAL GAS--0.3%
Equitable Resources, Inc................ 34,300 1,294,825
OIL & GAS (EXPLORATION & PRODUCTION)--1.1%
Anadarko Petroleum Corp................. 25,700 790,275
Apache Corp............................. 49,700 1,814,050
Kerr-McGee Corp......................... 33,400 1,494,650
Unocal Corp............................. 30,500 815,875
------------
4,914,850
------------
OIL & GAS (REFINING & MARKETING)--0.4%
Ultramar Diamond Shamrock Corp.......... 73,700 1,598,369
OIL (DOMESTIC INTEGRATED)--0.7%
Atlantic Richfield Co................... 43,000 3,053,000
OIL (INTERNATIONAL INTEGRATED)--2.5%
Chevron Corp............................ 49,800 3,719,438
Exxon Mobil Corp........................ 90,000 6,778,125
Texaco, Inc............................. 15,800 749,513
------------
11,247,076
------------
PAPER & FOREST PRODUCTS--0.9%
Champion International Corp............. 25,000 1,293,750
Georgia-Pacific Group................... 22,000 763,125
International Paper Co.................. 12,800 471,200
Weyerhaeuser Co......................... 29,200 1,498,325
Willamette Industries, Inc.............. 4,200 142,538
------------
4,168,938
------------
PERSONAL CARE--0.1%
Alberto-Culver Co. Class B.............. 20,800 444,600
PHOTOGRAPHY/IMAGING--0.3%
Eastman Kodak Co........................ 24,000 1,375,500
PUBLISHING--0.1%
Reader's Digest Association, Inc.
(The)................................... 16,500 567,188
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
PUBLISHING (NEWSPAPERS)--0.6%
Knight-Ridder, Inc...................... 23,800 $ 1,115,625
Times Mirror Co. (The) Class A.......... 5,200 265,200
Tribune Co.............................. 34,500 1,343,344
------------
2,724,169
------------
RAILROADS--0.3%
Union Pacific Corp...................... 35,600 1,352,800
RESTAURANTS--0.2%
Darden Restaurants, Inc................. 25,300 333,644
Tricon Global Restaurants, Inc.(b)...... 15,300 407,363
------------
741,007
------------
RETAIL (BUILDING SUPPLIES)--1.0%
Home Depot, Inc. (The).................. 66,000 3,815,625
Lowe's Companies., Inc.................. 14,100 671,513
------------
4,487,138
------------
RETAIL (COMPUTERS & ELECTRONICS)--0.4%
Best Buy Co., Inc.(b)................... 20,400 1,109,250
Circuit City Stores-Circuit City
Group................................... 13,000 524,875
------------
1,634,125
------------
RETAIL (DEPARTMENT STORES)--0.3%
Federated Department Stores, Inc.(b).... 39,900 1,463,831
RETAIL (DISCOUNTERS)--0.0%
Ross Stores, Inc........................ 14,000 203,000
RETAIL (GENERAL MERCHANDISE)--2.0%
Costco Wholesale Corp.(b)............... 24,600 1,220,775
Target Corp............................. 9,000 531,000
Wal-Mart Stores, Inc.................... 147,400 7,176,538
------------
8,928,313
------------
RETAIL (SPECIALTY)--0.1%
Zale Corp.(b)........................... 10,300 387,538
RETAIL (SPECIALTY-APPAREL)--0.5%
Abercrombie & Fitch Co. Class A(b)...... 17,200 252,625
Gap, Inc. (The)......................... 24,900 1,202,981
Limited, Inc. (The)..................... 20,400 693,600
------------
2,149,206
------------
SERVICES (ADVERTISING/MARKETING)--0.1%
Omnicom Group, Inc...................... 5,600 527,450
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix-Oakhurst Growth & Income Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
SERVICES (COMMERCIAL & CONSUMER)--0.4%
Block (H&R), Inc........................ 29,900 $ 1,311,863
Hertz Corp. (The) Class A............... 8,100 290,081
------------
1,601,944
------------
SERVICES (COMPUTER SYSTEMS)--0.4%
Electronic Data Systems Corp............ 30,800 1,994,300
SERVICES (DATA PROCESSING)--0.8%
Concord EFS, Inc.(b).................... 18,400 359,950
First Data Corp......................... 48,400 2,178,000
Fiserv, Inc.(b)......................... 30,700 837,534
------------
3,375,484
------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--1.0%
Nextel Communications, Inc. Class
A(b).................................... 15,700 2,140,106
Sprint Corp. (PCS Group)(b)............. 41,400 2,142,450
------------
4,282,556
------------
TELECOMMUNICATIONS (LONG DISTANCE)--2.4%
AT&T Corp............................... 106,100 5,245,319
MCI WorldCom, Inc.(b)................... 128,000 5,712,000
------------
10,957,319
------------
TELEPHONE--2.6%
Bell Atlantic Corp...................... 57,100 2,794,331
BellSouth Corp.......................... 71,000 2,893,250
GTE Corp................................ 25,300 1,492,700
SBC Communications, Inc................. 113,700 4,320,600
------------
11,500,881
------------
TEXTILES (APPAREL)--0.1%
Jones Apparel Group, Inc.(b)............ 21,100 477,388
TOBACCO--0.4%
Philip Morris Companies, Inc............ 86,100 1,727,381
- --------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $375,526,140) 423,547,547
- --------------------------------------------------------------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C> <C>
FOREIGN COMMON STOCKS--2.4%
COMMUNICATIONS EQUIPMENT--0.9%
Nortel Networks Corp. (Canada).......... 34,600 $ 3,857,900
FOODS--0.4%
Unilever NV NY Registered Shares
(Netherlands)........................... 35,900 1,633,450
OIL (INTERNATIONAL INTEGRATED)--0.9%
BP Amoco PLC Sponsored ADR (United
Kingdom)................................ 11,000 517,000
Royal Dutch Petroleum Co. NY Registered
Shares (Netherlands).................... 71,600 3,759,000
------------
4,276,000
------------
RAILROADS--0.2%
Canadian National Railway Co.
(Canada)................................ 35,200 829,400
- --------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $9,675,709) 10,596,750
- --------------------------------------------------------------------
UNIT INVESTMENT TRUSTS--2.8%
S&P 500 Depository Receipts............. 89,900 12,330,347
- --------------------------------------------------------------------
TOTAL UNIT INVESTMENT TRUSTS
(IDENTIFIED COST $10,911,212) 12,330,347
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.7%
(IDENTIFIED COST $396,113,061) 446,474,644(a)
Cash and receivables, less liabilities--0.3% 1,496,139
------------
NET ASSETS--100.0% $447,970,783
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $85,747,826 and gross
depreciation of $35,996,732 for federal income tax purposes. At
February 29, 2000 the aggregate cost of securities for federal income tax
purposes was $396,723,550.
(b) Non-income producing.
12
See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Growth & Income Fund
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $396,113,061) $ 446,474,644
Cash 718,028
Receivables
Investment securities sold 12,138,423
Fund shares sold 2,338,553
Dividends and interest 590,825
Prepaid expenses 2,655
--------------
Total assets 462,263,128
--------------
LIABILITIES
Payables
Investment securities purchased 12,226,154
Fund shares repurchased 1,495,415
Investment advisory fee 201,781
Distribution fee 213,735
Transfer agent fee 33,497
Financial agent fee 26,905
Trustees' fee 9,946
Accrued expenses 84,912
--------------
Total liabilities 14,292,345
--------------
NET ASSETS $ 447,970,783
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 398,130,357
Undistributed net investment loss (364,052)
Accumulated net realized loss (157,105)
Net unrealized appreciation 50,361,583
--------------
NET ASSETS $ 447,970,783
==============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $240,373,778) 16,195,933
Net asset value per share $14.84
Offering price per share $14.84/(1-4.75%) $15.58
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $124,868,096) 8,540,893
Net asset value and offering price per share $14.62
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $82,728,909) 5,657,202
Net asset value and offering price per share $14.62
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 3,007,605
Interest 33,212
Foreign taxes withheld (15,062)
--------------
Total investment income 3,025,755
--------------
EXPENSES
Investment advisory fee 1,596,530
Distribution fee, Class A 291,976
Distribution fee, Class B 599,948
Distribution fee, Class C 360,855
Financial agent fee 154,662
Transfer agent 312,944
Registration 43,343
Custodian 24,768
Printing 22,950
Professional 13,694
Trustees 8,454
Miscellaneous 8,489
--------------
Total expenses 3,438,613
Less expenses borne by investment adviser (64,191)
--------------
Net expenses 3,374,422
--------------
NET INVESTMENT LOSS (348,667)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 239,349
Net change in unrealized appreciation (depreciation) on
investments 10,682,793
--------------
NET GAIN ON INVESTMENTS 10,922,142
--------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 10,573,475
==============
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Phoenix-Oakhurst Growth & Income Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year
2/29/00 Ended
(Unaudited) 8/31/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (348,667) $ 282,288
Net realized gain (loss) 239,349 4,981,093
Net change in unrealized appreciation
(depreciation) 10,682,793 56,853,081
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 10,573,475 62,116,462
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (300,773) (178,877)
Net investment income, Class B -- --
Net investment income, Class C -- --
Net realized gains, Class A (2,877,535) (815,230)
Net realized gains, Class B (1,495,179) (384,053)
Net realized gains, Class C (914,600) (153,155)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (5,588,087) (1,531,315)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(4,346,677 and 9,742,443 shares,
respectively) 64,997,147 132,907,595
Net asset value of shares issued from
reinvestment of distributions
(184,842 and 67,491 shares,
respectively) 2,859,495 889,551
Cost of shares repurchased (2,656,859
and 2,786,606 shares, respectively) (39,946,231) (37,852,057)
------------ ------------
Total 27,910,411 95,945,089
------------ ------------
CLASS B
Proceeds from sales of shares
(1,665,643 and 5,216,234 shares,
respectively) 24,584,901 70,319,755
Net asset value of shares issued from
reinvestment of distributions
(91,070 and 25,028 shares,
respectively) 1,389,727 327,525
Cost of shares repurchased (802,747
and 721,133 shares, respectively) (11,881,249) (9,785,374)
------------ ------------
Total 14,093,379 60,861,906
------------ ------------
CLASS C
Proceeds from sales of shares
(1,799,907 and 3,277,763 shares,
respectively) 26,706,454 44,490,555
Net asset value of shares issued from
reinvestment of distributions
(57,857 and 10,341 shares,
respectively) 882,882 135,365
Cost of shares repurchased (304,187
and 252,075 shares, respectively) (4,503,045) (3,514,530)
------------ ------------
Total 23,086,291 41,111,390
------------ ------------
CLASS M
Cost of shares repurchased (0 and
11,751 shares, respectively) -- (140,889)
------------ ------------
Total -- (140,889)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 65,090,081 197,777,496
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS 70,075,469 258,362,643
NET ASSETS
Beginning of period 377,895,314 119,532,671
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($364,052) AND $285,388,
RESPECTIVELY] $447,970,783 $377,895,314
============ ============
</TABLE>
14 See Notes to Financial Statements
<PAGE>
Phoenix-Oakhurst Growth & Income Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
---------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
2/29/00 ENDED 9/25/97 TO
(UNAUDITED) 8/31/99 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 14.61 $ 10.47 $ 10.00
INCOME FROM INVESTMENT OPERATIONS(1)
Net investment income (loss)(2) 0.01 0.06 0.06
Net realized and unrealized gain (loss) 0.42 4.19 0.48
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.43 4.25 0.54
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) (0.02) (0.04)
Dividends from net realized gains (0.18) (0.09) (0.03)
------- ------- -------
TOTAL DISTRIBUTIONS (0.20) (0.11) (0.07)
------- ------- -------
Change in net asset value 0.23 4.14 0.47
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 14.84 $ 14.61 $ 10.47
======= ======= =======
Total return(3) 2.89%(6) 40.72% 5.39%(6)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $240,374 $209,210 $76,399
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 1.25%(7) 1.22%(8) 1.25%(7)
Net investment income (loss) 0.17%(7) 0.43% 0.57%(7)
Portfolio turnover 27%(6) 71% 106%(6)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
---------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
2/29/00 ENDED 9/25/97 TO
(UNAUDITED) 8/31/99 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 14.43 $ 10.40 $ 10.00
INCOME FROM INVESTMENT OPERATIONS(1)
Net investment income (loss)(2) (0.04) (0.04) (0.02)
Net realized and unrealized gain (loss) 0.41 4.16 0.48
-------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 0.37 4.12 0.46
-------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- (0.03)
Dividends from net realized gains (0.18) (0.09) (0.03)
-------- -------- --------
TOTAL DISTRIBUTIONS (0.18) (0.09) (0.06)
-------- -------- --------
Change in net asset value 0.19 4.03 0.40
-------- -------- --------
NET ASSET VALUE, END OF PERIOD 14.62 $ 14.43 $ 10.40
======== ======== ========
Total return(3) 2.53%(6) 39.72% 4.59%(6)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $124,868 $109,461 $31,902
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(5) 2.00%(7) 1.96%(8) 2.00%(7)
Net investment income (loss) (0.57)%(7) (0.32)% (0.19)%(7)
Portfolio turnover 27%(6) 71% 106%(6)
</TABLE>
(1) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from anticipated
results depending on the timing of share purchases and redemptions.
(2) Computed using average shares outstanding.
(3) Maximum sales charges are not reflected in the total return calculation.
(4) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 1.28%,
1.33% and 1.88% for the periods ended February 29, 2000, August 31, 1999
and 1998, respectively.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.03%,
2.08% and 2.63% for the periods ended February 29, 2000, August 31, 1999
and 1998, respectively.
(6) Not annualized.
(7) Annualized.
(8) For the year ended August 31,1999, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
See Notes to Financial Statements
15
<PAGE>
Phoenix-Oakhurst Growth & Income Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
------------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
2/29/00 ENDED 9/25/97 TO
(UNAUDITED) 8/31/99 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 14.43 $ 10.41 $ 10.00
INCOME FROM INVESTMENT OPERATIONS(1)
Net investment income (loss)(2) (0.04) (0.04) (0.02)
Net realized and unrealized gain (loss) 0.41 4.15 0.49
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.37 4.11 0.47
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income -- -- (0.03)
Dividends from net realized gains (0.18) (0.09) (0.03)
------- ------- -------
TOTAL DISTRIBUTIONS (0.18) (0.09) (0.06)
------- ------- -------
Change in net asset value 0.19 4.02 0.41
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 14.62 $ 14.43 $ 10.41
======= ======= =======
Total return(3) 2.53%(5) 39.58% 4.67%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $82,729 $59,224 $11,108
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 2.00%(6) 1.96%(7) 2.00%(6)
Net investment income (loss) (0.58)%(6) (0.33)% (0.18)%(6)
Portfolio turnover 27%(5) 71% 106%(5)
</TABLE>
(1) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from anticipated
results depending on the timing of share purchases and redemptions.
(2) Computed using average shares outstanding.
(3) Maximum sales charges are not reflected in the total return calculation.
(4) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets would have been 2.03%,
2.08% and 2.63% for the periods ended February 29, 2000, August 31, 1999
and 1998, respectively.
(5) Not annualized.
(6) Annualized.
(7) For the year ended August 31,1999, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
16
See Notes to Financial Statements
<PAGE>
PHOENIX EQUITY SERIES FUND
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2000 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Phoenix Equity 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 a "Fund". Each Fund has distinct
investment objectives.
Phoenix-Duff & Phelps Core Equity Fund seeks long-term capital appreciation by
investing in a diversified portfolio of common stocks. Phoenix-Oakhurst
Growth & Income Fund seeks dividend growth, current income and capital
appreciation by investing in common stocks.
Each Fund offers Class A, Class B and Class C shares. Class M shares have been
closed. Class A shares are sold with a front-end sales charge of up to 4.75%.
Class B shares are sold with a contingent deferred sales charge which declines
from 5% to zero depending on the period of time the shares are held. Class C
shares are sold with a 1% contingent deferred sales charge if redeemed within
one year of purchase. All classes of shares have identical voting, dividend,
liquidation and other rights and the same terms and conditions, except that each
class bears different distribution expenses and has exclusive voting rights with
respect to its distribution plan. Income and expenses of each Fund are borne pro
rata by the holders of all 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. Interest income is
recorded on the accrual basis. Dividend income is recorded on the ex-dividend
date or, in the case of certain foreign securities, as soon as the Fund is
notified. The Trust does not amortize premiums but does accrete discounts using
the effective interest method. Realized gains and losses are determined on the
identified cost basis.
C. INCOME TAXES:
Each Fund is treated as a separate taxable entity. It is the policy of each
Fund 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 income to its shareholders. In addition, each Fund intends to
distribute an amount sufficient to avoid imposition of any excise tax under
Section 4982 of the Code. Therefore, no provision for federal income taxes or
excise taxes has been made.
D. DISTRIBUTIONS TO SHAREHOLDERS:
Distributions are recorded by each Fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences include the treatment of non-taxable dividends, foreign
currency gain/loss, partnerships, operating losses and losses deferred due to
wash sales and excise tax regulations. Permanent book and tax basis differences
relating to shareholder distributions will result in reclassifications to paid
in capital.
E. FOREIGN CURRENCY TRANSLATION:
Foreign securities and other assets and liabilities are valued using the
foreign currency exchange rate effective at the end of the reporting period.
Cost of investments is translated at the currency exchange rate effective at the
trade date. The gain or loss resulting from a change in currency exchange rates
between the trade and settlement dates of a portfolio transaction is treated as
a gain or loss on foreign currency. Likewise, the gain or loss resulting from a
change in currency exchange rates between the date income is accrued and paid is
treated as a gain or loss on foreign currency. The Trust does not separate that
portion of the results of operations arising from changes in exchange rates and
that portion arising from changes in the market prices of securities.
F. FORWARD CURRENCY CONTRACTS:
Each Fund may enter into forward currency contracts in conjunction with the
planned purchase or sale of foreign denominated securities in order to hedge the
U.S. dollar cost or proceeds. Forward currency contracts involve, to varying
degrees, elements of market risk in excess of the amount recognized in the
statement of assets and
17
<PAGE>
PHOENIX EQUITY SERIES FUND
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2000 (UNAUDITED) (CONTINUED)
liabilities. Risks arise from the possible movements in foreign exchange rates
or if the counterparty does not perform under the contract.
A forward currency contract involves an obligation to purchase or sell a
specific currency at a future date, which may be any number of days from the
date of the contract agreed upon by the parties, at a price set at the time of
the contract. These contracts are traded directly between currency traders and
their customers. The contract is marked-to-market daily and the change in market
value is recorded by each Fund as an unrealized gain (or loss). When the
contract is closed or offset with the same counterparty, the Fund records a
realized gain (or loss) equal to the change in the value of the contract when it
was opened and the value at the time it was closed or offset.
G. OPTIONS:
Each Fund may write covered options or purchase options contracts for the
purpose of hedging against changes in the market value of the underlying
securities or foreign currencies.
Each Fund will realize a gain or loss upon the expiration or closing of the
option transaction. Gains and losses on written options are reported separately
in the Statement of Operations. When a written option is exercised, the proceeds
on sales or amounts paid are adjusted by the amount of premium received. Options
written are reported as a liability in the Statement of Assets and Liabilities
and subsequently marked-to-market to reflect the current value of the option.
The risk associated with written options is that the change in value of options
contracts may not correspond to the change in value of the hedged instruments.
In addition, losses may arise from changes in the value of the underlying
instruments, or if a liquid secondary market does not exist for the contracts.
Each Fund may purchase options which are included in the Funds' Schedule of
Investments and subsequently marked-to-market to reflect the current value of
the option. When a purchased option is exercised, the cost of the security is
adjusted by the amount of premium paid. The risk associated with purchased
options is limited to the premium paid.
H. EXPENSES:
Expenses incurred by the Trust with respect to more than one Fund are
allocated in proportion to the net assets of each Fund, except where allocation
of direct expense to each Fund or an alternative allocation method can be more
fairly made.
I. REPURCHASE AGREEMENTS:
A repurchase agreement is a transaction where a Fund acquires a security for
cash and obtains a simultaneous commitment from the seller to repurchase the
security at an agreed upon price and date. Each Fund, through its custodian,
takes possession of securities collateralizing the repurchase agreement. The
collateral is marked-to-market daily to ensure that the market value of the
underlying assets remains sufficient to protect the Fund in the event of default
by the seller. If the seller defaults and the value of the collateral declines,
or, if the seller enters insolvency proceedings, realization of collateral may
be delayed or limited.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
The advisers to the Trust are Duff & Phelps Investment Management Co. ("DPIM")
and Phoenix Investment Counsel, Inc. ("PIC"). DPIM is a subsidiary of Phoenix
Investment Partners Ltd., which is an indirect, majority-owned subsidiary of
Phoenix Home Life Mutual Insurance Company ("PHL"). PIC is an indirect,
majority-owned subsidiary of PHL. As compensation for their services to the
Trust, the Advisers are entitled to a fee based upon the following annual rates
as a percentage of the average daily net assets of each separate Fund:
<TABLE>
<CAPTION>
1st $1 $1-2 $2+
Fund Adviser Billion Billion Billion
- ---- ------- ------- ------- -------
<S> <C> <C> <C> <C>
Core Equity Fund........................ DPIM 0.75% 0.70% 0.65%
Growth & Income Fund.................... PIC 0.75% 0.70% 0.65%
</TABLE>
The Advisers have voluntarily agreed to assume total fund operating expenses
of each respective Fund, excluding interest, taxes, brokerage fees, commissions
and extraordinary expenses until August 31, 2000, to the extent that such
expenses exceed the following percentages of average annual net assets:
<TABLE>
<CAPTION>
Class A Class B Class C
- ------- ------- -------
<S> <C> <C>
1.25%. 2.00% 2.00%
</TABLE>
Phoenix Equity Planning Corporation ("PEPCO"), an indirect, majority-owned
subsidiary of PHL, serves as the national distributor of the Trust's shares.
PEPCO has advised the Trust that it retained net selling commissions of $44,628
for Class A shares, and deferred sales charges of $185,765 for Class B shares
and $13,919 for Class C shares for the six months ended February 29, 2000. In
addition, each Fund pays PEPCO a distribution fee at an annual rate of 0.25% for
Class A shares, 1.00% for Class B shares and 1.00% for Class C shares applied to
the average daily net assets of the Fund. The Distributor has advised the Trust
that of the total amount expensed for the six months ended February 29, 2000,
$952,387 was retained by the Distributor, $350,804 was paid to unaffiliated
participants, and $45,035 was paid to W.S Griffith, an indirect subsidary of
PHL.
As Financial Agent of the Trust, PEPCO receives a financial agent fee equal to
the sum of (1) the documented cost of fund accounting
18
<PAGE>
PHOENIX EQUITY SERIES FUND
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2000 (UNAUDITED) (CONTINUED)
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 each
Fund. Certain minimum fees and fee waivers may apply.
PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the six months ended February 29, 2000,
transfer agent fees were $348,845 of which PEPCO retained $125,505 which is net
of the fees paid to State Street.
At February 29, 2000, PHL and affiliates held Trust shares which aggregated
the following:
<TABLE>
<CAPTION>
Aggregate
Net Asset
Shares Value
---------- -----------
<S> <C> <C>
Core Equity Fund--Class A............... 1,375,977 $16,153,970
</TABLE>
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended February 29,
2000 (excluding U.S. Government and agency securities and short-term securities)
aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Core Equity Fund........................ $ 14,549,554 $ 31,493,691
Growth & Income Fund.................... 172,890,647 113,882,076
</TABLE>
There were no purchases or sales of long-term U.S. Government and agency
securities during the six months ended February 29, 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 Fund's ability to
repatriate such amounts.
This report is not authorized for distribution to prospective investors in the
Phoenix Equity Series Fund unless preceded or accompanied by an effecive
prospectus which includes information concerning the sales charge, the Fund's
record and other pertinent information.
19
<PAGE>
PHOENIX EQUITY SERIES FUND
101 Munson Street
Greenfield, Massachusetts 01301
TRUSTEES
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Calvin J. Pedersen
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
OFFICERS
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
John F. Sharry, Executive Vice President
J. Roger Engemann, Senior Vice President
Gail P. Seneca, Senior Vice President
Robert S. Driessen, Vice President
William R. Moyer, Vice President
Michael A. Kearney, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Nancy J. Engberg, Assistant Secretary
INVESTMENT ADVISERS
Duff & Phelps Investment Management Co.
(Phoenix-Duff & Phelps Core Equity Fund)
55 East Monroe Street
Suite 3800
Chicago, Illinois 60603
Phoenix Investment Counsel, Inc.
(Phoenix-Oakhurst Growth & Income Fund)
56 Prospect Street
Hartford, Connecticut 06115-0480
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 351
Boston, Massachusetts 02101
TRANSFER AGENT
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, Massachusetts 02110
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
www.phoenixinvestments.com
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION
PO Box 2200
Enfield CT 06083-2200
[LOGO]
PHOENIX
INVESTMENT PARTNERS
PRSRT STD
U.S. Postage
PAID
Andrew
Associates
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 212 (4/00)
