<PAGE>
Phoenix Investment Partners
FEBRUARY 28, 1999
HOLLISTER-SM-
SEMIANNUAL REPORT
Phoenix-Hollister
Small Cap Value Fund
Phoenix-Hollister
Value Equity Fund
[LOGO] PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
[PHOTO]
PHILIP MCLOUGHLIN
We are pleased to provide this financial summary for the Phoenix-Hollister
Small Cap Value Fund and the Phoenix-Hollister Value Equity Fund for the six
months ended February 28, 1999.
The last six months marked another period of wide disparity in performance of
large-capitalization stocks versus small-capitalization stocks and
growth-oriented investment styles versus value investing. For example, the
Russell 1000 Growth Index(1) was up 37.9%, while the Russell 1000 Value Index(2)
gained 22.5% for the period. The Russell 2000 Growth Index(3) rose 29.3%, but
the Russell 2000 Value Index(4) only returned 4.9%.
During such market extremes, it is important to keep a long-term perspective.
We believe that by remaining true to our investment discipline, we will continue
to add value for our shareholders over the long term. Of course, past
performance is not a guarantee of future results.
If you have any questions, please contact your financial advisor or call us at
1-800-243-1574.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
MARCH 3, 1999
(1) THE RUSSELL 1000 GROWTH INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF
LARGE-CAPITALIZATION, GROWTH-ORIENTED STOCK TOTAL RETURN PERFORMANCE. THE
INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
(2) THE RUSSELL 1000 VALUE INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF
LARGE-CAPITALIZATION, VALUE-ORIENTED STOCK TOTAL RETURN PERFORMANCE. THE
INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
(3) THE RUSSELL 2000 GROWTH INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF
SMALL-CAPITALIZATION, GROWTH-ORIENTED STOCK TOTAL RETURN PERFORMANCE. THE
INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
(4) THE RUSSELL 2000 VALUE INDEX IS AN UNMANAGED, COMMONLY USED MEASURE OF
SMALL-CAPITALIZATION, VALUE-ORIENTED STOCK TOTAL RETURN PERFORMANCE. THE
INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT.
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-Hollister Small Cap Value Fund
INVESTMENTS AT FEBRUARY 28, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
COMMON STOCKS--84.7%
BIOTECHNOLOGY--3.6%
Cell Genesys, Inc.(b)................... 95,000 $ 581,875
ICOS Corp.(b)........................... 23,000 563,500
------------
1,145,375
------------
COMMUNICATIONS EQUIPMENT--9.6%
Aware, Inc.(b).......................... 12,000 415,500
C-Cube Microsystems, Inc.(b)............ 31,000 581,250
Com21, Inc.(b).......................... 16,000 377,000
General Instrument Corp.(b)............. 32,000 936,000
Terayon Communication Systems,
Inc.(b)................................. 24,000 745,500
------------
3,055,250
------------
COMPUTERS (HARDWARE)--2.0%
Data General Corp.(b)................... 46,000 635,375
COMPUTERS (NETWORKING)--2.4%
Emulex Corp.(b)......................... 20,000 750,000
COMPUTERS (PERIPHERALS)--2.9%
Hutchinson Technology, Inc.(b).......... 20,000 622,500
Maxtor Corp.(b)......................... 35,000 288,750
------------
911,250
------------
COMPUTERS (SOFTWARE & SERVICES)--3.1%
Autodesk, Inc........................... 16,000 642,000
Black Box Corp.(b)...................... 11,000 354,750
------------
996,750
------------
CONSUMER FINANCE--0.4%
New Century Financial Corp.(b).......... 10,000 117,500
ELECTRONICS (COMPONENT DISTRIBUTORS)--1.0%
AFC Cable Systems, Inc.(b).............. 4,000 132,500
CHS Electronics, Inc.(b)................ 25,000 175,000
------------
307,500
------------
ELECTRONICS (INSTRUMENTATIONS)--2.4%
Electro Scientific Industries,
Inc.(b)................................. 2,500 91,406
SMART Modular Technologies, Inc.(b)..... 42,000 674,625
------------
766,031
------------
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
ELECTRONICS (SEMICONDUCTORS)--4.4%
Amkor Technology, Inc.(b)............... 45,000 $ 472,500
Dallas Semiconductor Corp............... 26,000 919,750
------------
1,392,250
------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--3.4%
Dura Pharmaceuticals, Inc.(b)........... 65,000 914,062
Ligand Pharmaceuticals, Inc. Class
B(b).................................... 17,000 166,812
------------
1,080,874
------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.6%
Summit Technology, Inc.(b).............. 30,000 184,219
HOMEBUILDING--3.5%
Lennar Corp............................. 30,000 695,625
Toll Brothers, Inc.(b).................. 22,000 431,750
------------
1,127,375
------------
INSURANCE (MULTI-LINE)--6.6%
Ambac Financial Group, Inc.............. 12,000 672,000
Everest Reinsurance Holdings, Inc....... 5,000 165,937
Horace Mann Educators Corp.............. 36,000 843,750
NAC Re Corp............................. 5,000 270,312
RenaissanceRe Holdings Ltd.............. 4,500 153,000
------------
2,104,999
------------
INSURANCE (PROPERTY-CASUALTY)--7.5%
Chartwell Re Corp....................... 13,500 291,937
Commerce Group, Inc. (The).............. 30,000 802,500
Fremont General Corp.................... 47,000 928,250
Selective Insurance Group, Inc.......... 20,000 364,375
------------
2,387,062
------------
MANUFACTURING (DIVERSIFIED)--0.8%
Furon Co................................ 22,500 267,188
RAILROADS--1.0%
RailTex, Inc.(b)........................ 30,000 326,250
REITS--6.2%
Health Care REIT, Inc................... 20,000 463,750
Hospitality Properties Trust............ 10,500 270,375
LaSalle Hotel Properties................ 40,000 477,500
RFS Hotel Investors, Inc................ 24,000 280,500
</TABLE>
2 See Notes to Financial Statements
<PAGE>
Phoenix-Hollister Small Cap Value Fund
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
REITS--CONTINUED
Sunstone Hotel Investors, Inc........... 60,000 $ 480,000
------------
1,972,125
------------
RESTAURANTS--0.5%
Lone Star Steakhouse & Saloon,
Inc.(b)................................. 16,000 145,000
RETAIL (BUILDING SUPPLIES)--0.1%
Hughes Supply, Inc...................... 2,000 40,375
RETAIL (SPECIALTY)--3.5%
Claire's Stores, Inc.................... 51,000 1,125,188
RETAIL (SPECIALTY-APPAREL)--1.1%
Talbots, Inc. (The)..................... 15,000 362,813
SAVINGS & LOAN COMPANIES--6.1%
Bank United Corp. Class A............... 12,500 493,750
Charter One Financial, Inc.............. 29,500 849,969
Washington Federal, Inc................. 26,400 594,000
------------
1,937,719
------------
SERVICES (ADVERTISING/MARKETING)--0.0%
Purchase Point Media Corp.(b)........... 1,000 2,000
SERVICES (COMMERCIAL & CONSUMER)--1.6%
Wackenhut Corp. (The) Class A........... 23,000 520,375
SPECIALTY PRINTING--4.4%
Valassis Communications, Inc.(b)........ 22,000 1,056,000
World Color Press, Inc.(b).............. 14,000 347,375
------------
1,403,375
------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--2.5%
Crown Castle International Corp.(b)..... 22,000 374,000
Iridium World Communications Ltd. Class
A(b).................................... 16,000 413,000
------------
787,000
------------
TEXTILES (APPAREL)--1.1%
Quiksilver, Inc.(b)..................... 10,000 339,375
WASTE MANAGEMENT--2.4%
United States Filter Corp.(b)........... 31,000 761,438
- -----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $27,897,627) 26,952,031
- -----------------------------------------------------------------------------
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
FOREIGN COMMON STOCKS--0.7%
FINANCIAL (DIVERSIFIED)--0.7%
London Pacific Group Ltd. Sponsored ADR
(London)................................ 18,000 $ 232,875
- -----------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $260,048) 232,875
- -----------------------------------------------------------------------------
UNIT INVESTMENT TRUSTS--13.4%
AMEX Basic Industries Select Sector
Depository Receipts..................... 5,000 106,211
AMEX Consumer Staples Select Sector
Depository Receipts..................... 20,000 530,313
AMEX Financial Select Sector Depository
Receipts................................ 55,000 1,318,281
Diamonds Trust, Series I................ 7,500 697,969
S&P 500 Depository Receipts............. 13,100 1,620,306
- -----------------------------------------------------------------------------
TOTAL UNIT INVESTMENT TRUSTS
(IDENTIFIED COST $4,213,950) 4,273,080
- -----------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--98.8%
(IDENTIFIED COST $32,371,625) 31,457,986
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000)
--------- ---------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--1.8%
COMMERCIAL PAPER--1.8%
Corporate Asset Funding Co., Inc.
4.90%, 3/1/99....................... A-1+ $ 575 575,000
- ---------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $575,000) 575,000
- ---------------------------------------------------------------------------
TOTAL INVESTMENTS--100.6%
(IDENTIFIED COST $32,946,625) 32,032,986(a)
Cash and receivables, less liabilities--(0.6%) (187,243)
-------------
NET ASSETS--100.0% $ 31,845,743
-------------
-------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $2,303,848 and gross
depreciation of $3,322,191 for federal income tax purposes. At February 28,
1999, the aggregate cost of securities for federal income tax purposes was
$33,051,329.
(b) Non-income producing.
See Notes to Financial Statements 3
<PAGE>
Phoenix-Hollister Small Cap Value Fund
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $32,946,625) $ 32,032,986
Cash 1,598
Receivables
Investment securities sold 1,208,723
Fund shares sold 207,608
Dividends and interest 9,974
Prepaid expenses 562
--------------
Total assets 33,461,451
--------------
LIABILITIES
Payables
Investment securities purchased 1,400,070
Fund shares repurchased 49,291
Investment advisory fee 55,138
Transfer agent fee 20,465
Distribution fee 13,386
Financial agent fee 4,539
Trustees' fee 4,281
Accrued expenses 68,538
--------------
Total liabilities 1,615,708
--------------
NET ASSETS $ 31,845,743
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 34,267,478
Undistributed net investment loss (31,207)
Accumulated net realized loss (1,476,889)
Net unrealized depreciation (913,639)
--------------
NET ASSETS $ 31,845,743
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $19,876,520) 2,066,565
Net asset value per share $9.62
Offering price per share $9.62/(1-4.75%) $10.10
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $7,722,672) 809,887
Net asset value and offering price per share $9.54
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $4,246,551) 445,344
Net asset value and offering price per share $9.54
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 28, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 199,596
Interest 13,076
-------------
Total investment income 212,672
-------------
EXPENSES
Investment advisory fee 130,629
Distribution fee, Class A 22,686
Distribution fee, Class B 36,505
Distribution fee, Class C 17,757
Distribution fee, Class M 34
Financial agent fee 25,800
Transfer agent 41,008
Registration 24,223
Professional 13,417
Trustees 9,973
Custodian 5,507
Printing 3,335
Miscellaneous 2,183
-------------
Total expenses 333,057
Less expenses borne by investment adviser (89,178)
-------------
Net expenses 243,879
-------------
NET INVESTMENT LOSS (31,207)
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (1,416,554)
Net change in unrealized appreciation (depreciation) on
investments 5,827,049
-------------
NET GAIN ON INVESTMENTS 4,410,495
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,379,288
-------------
-------------
</TABLE>
4 See Notes to Financial Statements
<PAGE>
Phoenix-Hollister Small Cap Value Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months From
Ended Inception
2/28/99 11/20/97 to
(Unaudited) 8/31/98
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (31,207) $ (66,488)
Net realized gain (loss) (1,416,554) 12,932
Net change in unrealized appreciation
(depreciation) 5,827,049 (6,740,688)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 4,379,288 (6,794,244)
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A (29,557) --
Net realized gains, Class B (11,989) --
Net realized gains, Class C (5,756) --
In excess of net investment income,
Class A -- (27,475)
In excess of net investment income,
Class B -- (2,932)
In excess of net investment income,
Class C -- (1,800)
In excess of net investment income,
Class M -- (251)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (47,302) (32,458)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (530,322
and 2,003,648 shares, respectively) 5,077,850 20,830,478
Net asset value of shares issued from
reinvestment of distributions (2,696
and 2,693 shares, respectively) 26,936 26,901
Cost of shares repurchased (257,084
and 215,710 shares, respectively) (2,425,063) (2,249,618)
------------ ------------
Total 2,679,723 18,607,761
------------ ------------
CLASS B
Proceeds from sales of shares (155,957
and 779,154 shares, respectively) 1,425,057 8,252,028
Net asset value of shares issued from
reinvestment of distributions (1,055
and 224 shares, respectively) 10,468 2,235
Cost of shares repurchased (81,121 and
45,382 shares, respectively) (757,854) (463,815)
------------ ------------
Total 677,671 7,790,448
------------ ------------
CLASS C
Proceeds from sales of shares (147,399
and 381,563 shares, respectively) 1,377,342 4,020,977
Net asset value of shares issued from
reinvestment of distributions (397
and 102 shares, respectively) 3,935 1,015
Cost of shares repurchased (45,780 and
38,337 shares, respectively) (427,005) (402,328)
------------ ------------
Total 954,272 3,619,664
------------ ------------
CLASS M
Proceeds from sales of shares (0 and
14,556 shares, respectively) -- 146,910
Net asset value of shares issued from
reinvestment of distributions (0 and
25 shares, respectively) -- 250
Cost of shares repurchased (10,849 and
3,732 shares, respectively) (95,668) (40,572)
------------ ------------
Total (95,668) 106,588
------------ ------------
INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 4,215,998 30,124,461
------------ ------------
NET INCREASE IN NET ASSETS 8,547,984 23,297,759
NET ASSETS
Beginning of period 23,297,759 0
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$(31,207) AND $0, RESPECTIVELY] $ 31,845,743 $ 23,297,759
------------ ------------
------------ ------------
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Hollister Small Cap Value Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
--------------------------
FROM
SIX MONTHS INCEPTION
ENDED 11/20/97
2/28/99 TO
(UNAUDITED) 8/31/98
<S> <C> <C>
Net asset value, beginning of period $ 8.11 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) --(2) (0.01)(1)(2)
Net realized and unrealized gain (loss) 1.53 (1.85)
---------- ---------
TOTAL FROM INVESTMENT OPERATIONS 1.53 (1.86)
---------- ---------
LESS DISTRIBUTIONS
Dividends from net realized gains (0.02) --
In excess of net investment income -- (0.03)
---------- ---------
TOTAL DISTRIBUTIONS (0.02) (0.03)
---------- ---------
Change in net asset value 1.51 (1.89)
---------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.62 $ 8.11
---------- ---------
---------- ---------
Total return(5) 18.80%(6) (18.64)%(6)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $19,877 $14,519
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.40%(7) 1.40%(7)
Net investment income (loss) 0.07%(7) (0.14)%(7)
Portfolio turnover 97%(6) 105%(6)
<CAPTION>
CLASS B
--------------------------
FROM
SIX MONTHS INCEPTION
ENDED 11/20/97
2/28/99 TO
(UNAUDITED) 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 8.07 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.03)(3) (0.08)(1)(3)
Net realized and unrealized gain (loss) 1.52 (1.82)
---------- ---------
TOTAL FROM INVESTMENT OPERATIONS 1.49 (1.90)
---------- ---------
LESS DISTRIBUTIONS
Dividends from net realized gains (0.02) --
In excess of net investment income -- (0.03)
---------- ---------
TOTAL DISTRIBUTIONS (0.02) (0.03)
---------- ---------
Change in net asset value 1.47 (1.93)
---------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.54 $ 8.07
---------- ---------
---------- ---------
Total return(5) 18.39%(6) (19.07)%(6)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $7,723 $5,922
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.15%(7) 2.15%(7)
Net investment income (loss) (0.68)%(7) (1.01)%(7)
Portfolio turnover 97%(6) 105%(6)
<CAPTION>
CLASS C
--------------------------
FROM
SIX MONTHS INCEPTION
ENDED 11/20/97
2/28/99 TO
(UNAUDITED) 8/31/98
Net asset value, beginning of period $ 8.07 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.02)(4) (0.08)(1)(4)
Net realized and unrealized gain (loss) 1.51 (1.82)
---------- ---------
TOTAL FROM INVESTMENT OPERATIONS 1.49 (1.90)
---------- ---------
LESS DISTRIBUTIONS
Dividends from net realized gains (0.02) --
In excess of net investment income -- (0.03)
---------- ---------
TOTAL DISTRIBUTIONS (0.02) (0.03)
---------- ---------
Change in net asset value 1.47 (1.93)
---------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.54 $ 8.07
---------- ---------
---------- ---------
Total return(5) 18.39%(6) (19.09)%(6)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $4,247 $2,770
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.15%(7) 2.15%(7)
Net investment income (loss) (0.69)%(7) (0.98)%(7)
Portfolio turnover 97%(6) 105%(6)
</TABLE>
(1) Computed using average shares outstanding.
(2) Includes reimbursement of operating expenses by investment adviser of $0.03
and $0.14, respectively.
(3) Includes reimbursement of operating expenses by investment adviser of $0.03
and $0.14, respectively.
(4) Includes reimbursement of operating expenses by investment adviser of $0.03
and $0.14, respectively.
(5) Maximum sales charges are not reflected in the total return calculation.
(6) Not annualized.
(7) Annualized.
6 See Notes to Financial Statements
<PAGE>
Phoenix-Hollister Value Equity Fund
INVESTMENTS AT FEBRUARY 28, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- -------------
<S> <C> <C> <C>
COMMON STOCKS--95.7%
BANKS (MAJOR REGIONAL)--2.0%
Bank One Corp........................... 14,000 $ 752,500
BANKS (MONEY CENTER)--8.1%
BankAmerica Corp........................ 20,000 1,306,250
Chase Manhattan Corp. (The)............. 17,500 1,393,437
Morgan (J.P.) & Co., Inc................ 3,000 334,312
-------------
3,033,999
-------------
BEVERAGES (ALCOHOLIC)--2.1%
Anheuser-Busch Companies, Inc........... 10,000 766,875
BROADCASTING (TELEVISION, RADIO & CABLE)--2.0%
MediaOne Group, Inc.(b)................. 14,000 763,000
CHEMICALS (DIVERSIFIED)--2.7%
Monsanto Co............................. 22,000 1,002,375
COMMUNICATIONS EQUIPMENT--1.7%
Motorola, Inc........................... 9,000 632,250
COMPUTERS (HARDWARE)--3.1%
Sun Microsystems, Inc.(b)............... 12,000 1,167,750
COMPUTERS (NETWORKING)--1.2%
3Com Corp.(b)........................... 14,000 440,125
ELECTRICAL EQUIPMENT--1.5%
Honeywell, Inc.......................... 8,000 559,500
ELECTRONICS (SEMICONDUCTORS)--3.2%
Intel Corp.............................. 10,000 1,199,375
ENTERTAINMENT--1.8%
Royal Caribbean Cruises Ltd............. 20,000 660,000
FINANCIAL (DIVERSIFIED)--14.9%
American Express Co..................... 7,000 759,500
Citigroup, Inc.......................... 26,000 1,527,500
Fannie Mae.............................. 15,000 1,050,000
Freddie Mac............................. 18,000 1,059,750
SLM Holding Corp........................ 28,000 1,200,500
-------------
5,597,250
-------------
FOODS--1.5%
Hershey Foods Corp...................... 9,000 560,250
<CAPTION>
SHARES VALUE
-------- -------------
<S> <C> <C> <C>
HEALTH CARE (DIVERSIFIED)--3.8%
American Home Products Corp............. 12,000 $ 714,000
Mylan Laboratories, Inc................. 25,500 696,469
-------------
1,410,469
-------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--2.8%
Lilly (Eli) & Co........................ 11,000 1,041,563
INSURANCE (MULTI-LINE)--5.7%
American International Group, Inc....... 12,000 1,367,250
CIGNA Corp.............................. 10,000 785,000
-------------
2,152,250
-------------
INVESTMENT BANKING/BROKERAGE--1.6%
Merrill Lynch & Co., Inc................ 8,000 614,000
LEISURE TIME (PRODUCTS)--2.0%
Mattel, Inc............................. 28,000 738,500
MANUFACTURING (DIVERSIFIED)--5.2%
Corning, Inc............................ 18,000 963,000
Eaton Corp.............................. 6,000 416,250
Illinios Tool Works, Inc................ 8,000 550,000
-------------
1,929,250
-------------
MANUFACTURING (SPECIALIZED)--3.1%
Diebold, Inc............................ 40,000 1,167,500
OFFICE EQUIPMENT & SUPPLIES--2.4%
Pitney Bowes, Inc....................... 14,000 884,625
PHOTOGRAPHY/IMAGING--2.1%
Eastman Kodak Co........................ 12,000 794,250
PUBLISHING (NEWSPAPERS)--0.7%
New York Times Co. (The) Class A........ 9,000 279,000
RAILROADS--0.6%
Union Pacific Corp...................... 5,000 234,375
RESTAURANTS--3.4%
McDonald's Corp......................... 15,000 1,275,000
RETAIL (GENERAL MERCHANDISE)--2.5%
Dayton Hudson Corp...................... 15,000 938,438
SAVINGS & LOAN COMPANIES--1.7%
Washington Mutual, Inc.................. 16,000 640,000
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Hollister Value Equity Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- -------------
<S> <C> <C> <C>
SERVICES (DATA PROCESSING)--1.6%
First Data Corp......................... 16,000 $ 612,000
TELECOMMUNICATIONS (LONG DISTANCE)--7.4%
AT&T Corp............................... 17,000 1,396,125
MCI WorldCom, Inc.(b)................... 16,500 1,361,250
-------------
2,757,375
-------------
TELEPHONE--3.3%
BellSouth Corp.......................... 17,000 786,250
GTE Corp................................ 7,000 454,125
-------------
1,240,375
-------------
- -----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $30,651,699) 35,844,219
- -----------------------------------------------------------------------------
FOREIGN COMMON STOCKS--1.2%
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.4%
Telesp Celular Participacoes SA ADR
(Brazil)(b)............................. 8,000 168,000
<CAPTION>
SHARES VALUE
-------- -------------
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--0.4%
Embratel Participacoes SA ADR
(Brazil)(b)............................. 10,000 $ 136,250
TELEPHONE--0.4%
Telesp Participacoes SA ADR
(Brazil)(b)............................. 8,000 132,000
- -----------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $592,933) 436,250
- -----------------------------------------------------------------------------
UNIT INVESTMENT TRUSTS--4.9%
S&P 500 Depository Receipts............. 15,000 1,855,312
- -----------------------------------------------------------------------------
TOTAL UNIT INVESTMENT TRUSTS
(IDENTIFIED COST $1,907,137) 1,855,312
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--101.8%
(IDENTIFIED COST $33,151,769) 38,135,781(a)
Cash and receivables, less liabilities--(1.8%) (683,989)
-------------
NET ASSETS--100.0% $ 37,451,792
-------------
-------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $5,400,926 and gross
depreciation of $469,173 for federal income tax purposes. At February 28,
1999, the aggregate cost of securities for federal income tax purposes was
$33,204,028.
(b) Non-income producing.
8 See Notes to Financial Statements
<PAGE>
Phoenix-Hollister Value Equity Fund
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $33,151,769) $ 38,135,781
Cash 378,171
Receivables
Investment securities sold 782,117
Dividends and interest 59,653
Fund shares sold 39,762
Prepaid expenses 628
--------------
Total assets 39,396,112
--------------
LIABILITIES
Payables
Investment securities purchased 1,759,387
Fund shares repurchased 31
Investment advisory fee 73,821
Transfer agent fee 16,780
Distribution fee 13,235
Financial agent fee 4,776
Trustees' fee 4,281
Accrued expenses 72,009
--------------
Total liabilities 1,944,320
--------------
NET ASSETS $ 37,451,792
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 33,657,133
Undistributed net investment loss (47,191)
Accumulated net realized loss (1,142,162)
Net unrealized appreciation 4,984,012
--------------
NET ASSETS $ 37,451,792
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $26,732,921) 2,241,750
Net asset value per share $11.93
Offering price per share $11.93/(1-4.75%) $12.52
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $7,707,019) 650,067
Net asset value and offering price per share $11.86
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $3,011,852) 253,922
Net asset value and offering price per share $11.86
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 28, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 238,669
Interest 4,453
Foreign taxes withheld (781)
-----------
Total investment income 242,341
-----------
EXPENSES
Investment advisory fee 124,768
Distribution fee, Class A 29,819
Distribution fee, Class B 33,764
Distribution fee, Class C 13,155
Distribution fee, Class M 42
Financial agent fee 27,321
Registration 38,951
Transfer agent 37,868
Custodian 13,990
Professional 10,397
Printing 7,714
Trustees 1,594
Miscellaneous 2,188
-----------
Total expenses 341,571
Less expenses borne by investment adviser (98,431)
-----------
Net expenses 243,140
-----------
NET INVESTMENT LOSS (799)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (562,487)
Net change in unrealized appreciation (depreciation) on
investments 9,829,989
-----------
NET GAIN ON INVESTMENTS 9,267,502
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 9,266,703
-----------
-----------
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Hollister Value Equity Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months From
Ended Inception
2/28/99 11/5/97 to
(Unaudited) 8/31/98
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (799) $ 15,327
Net realized gain (loss) (562,487) (579,675)
Net change in unrealized appreciation
(depreciation) 9,829,989 (4,845,977)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 9,266,703 (5,410,325)
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (110,602) (11,186)
Net investment income, Class B (3,841) (2,802)
Net investment income, Class C (1,766) (1,239)
Net investment income, Class M -- (100)
In excess of net investment income,
Class A -- (6,975)
In excess of net investment income,
Class B -- (1,747)
In excess of net investment income,
Class C -- (773)
In excess of net investment income,
Class M -- (61)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (116,209) (24,883)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (177,356
and 2,356,722 shares, respectively) 1,950,352 25,504,049
Net asset value of shares issued from
reinvestment of distributions (9,457
and 1,823 shares, respectively) 109,705 18,045
Cost of shares repurchased (155,161
and 148,447 shares, respectively) (1,664,340) (1,615,279)
------------ ------------
Total 395,717 23,906,815
------------ ------------
CLASS B
Proceeds from sales of shares (102,817
and 621,551 shares, respectively) 1,102,356 6,514,113
Net asset value of shares issued from
reinvestment of distributions (298
and 370 shares, respectively) 3,446 3,662
Cost of shares repurchased (48,148 and
26,821 shares, respectively) (527,745) (296,436)
------------ ------------
Total 578,057 6,221,339
------------ ------------
CLASS C
Proceeds from sales of shares (42,174
and 260,718 shares, respectively) 424,667 2,734,842
Net asset value of shares issued from
reinvestment of distributions (121
and 108 shares, respectively) 1,405 1,073
Cost of shares repurchased (13,752 and
35,447 shares, respectively) (144,706) (375,236)
------------ ------------
Total 281,366 2,360,679
------------ ------------
CLASS M
Proceeds from sales of shares (0 and
12,175 shares, respectively) -- 122,245
Net asset value of shares issued from
reinvestment of distributions (0 and
16 shares, respectively) -- 161
Cost of shares repurchased (10,024 and
2,167 shares, respectively) (105,146) (24,727)
------------ ------------
Total (105,146) 97,679
------------ ------------
INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 1,149,994 32,586,512
------------ ------------
NET INCREASE IN NET ASSETS 10,300,488 27,151,304
NET ASSETS
Beginning of period 27,151,304 0
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$(47,191) AND $69,817, RESPECTIVELY] $ 37,451,792 $ 27,151,304
------------ ------------
------------ ------------
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix-Hollister Value Equity Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------------------- -------------------------------------
SIX MONTHS FROM SIX MONTHS FROM
ENDED INCEPTION ENDED INCEPTION
2/28/99 11/5/97 TO 2/28/99 11/5/97 TO
(UNAUDITED) 8/31/98 (UNAUDITED) 8/31/98
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.94 $ 10.00 $ 8.89 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.01(2) 0.03(1)(2) (0.03)(3) (0.04)(1)(3)
Net realized and unrealized gain
(loss) 3.03 (1.07) 3.01 (1.05)
------ ----------- ------ -----------
TOTAL FROM INVESTMENT OPERATIONS 3.04 (1.04) 2.98 (1.09)
------ ----------- ------ -----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.05) (0.01) (0.01) (0.01)
In excess of net investment income -- (0.01) -- (0.01)
------ ----------- ------ -----------
TOTAL DISTRIBUTIONS (0.05) (0.02) (0.01) (0.02)
------ ----------- ------ -----------
Change in net asset value 2.99 (1.06) 2.97 (1.11)
------ ----------- ------ -----------
NET ASSET VALUE, END OF PERIOD $ 11.93 $ 8.94 $ 11.86 $ 8.89
------ ----------- ------ -----------
------ ----------- ------ -----------
Total return(5) 33.87%(6) (10.28)%(6) 33.48%(6) (10.92)%(6)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $26,733 $19,766 $7,707 $5,291
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.25%(7) 1.25%(7) 2.00%(7) 2.00%(7)
Net investment income (loss) 0.20%(7) 0.31%(7) (0.54)%(7) (0.45)%(7)
Portfolio turnover 79%(6) 59%(6) 79%(6) 59%(6)
<CAPTION>
CLASS C
-------------------------------------
SIX MONTHS FROM
ENDED INCEPTION
2/28/99 11/5/97 TO
(UNAUDITED) 8/31/98
<S> <C> <C>
Net asset value, beginning of period $ 8.89 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.03)(4) (0.04)(1)(4)
Net realized and unrealized gain
(loss) 3.01 (1.05)
------ -----------
TOTAL FROM INVESTMENT OPERATIONS 2.98 (1.09)
------ -----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.01) (0.01)
In excess of net investment income -- (0.01)
------ -----------
TOTAL DISTRIBUTIONS (0.01) (0.02)
------ -----------
Change in net asset value 2.97 (1.11)
------ -----------
NET ASSET VALUE, END OF PERIOD $ 11.86 $ 8.89
------ -----------
------ -----------
Total return(5) 33.34%(6) (10.86)%(6)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $3,012 $2,005
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 2.00%(7) 2.00%(7)
Net investment income (loss) (0.54)%(7) (0.45)%(7)
Portfolio turnover 79%(6) 59%(6)
</TABLE>
(1) Computed using average shares outstanding.
(2) Includes reimbursement of operating expenses by investment adviser of $0.03
and $0.15, respectively.
(3) Includes reimbursement of operating expenses by investment adviser of $0.03
and $0.15, respectively.
(4) Includes reimbursement of operating expenses by investment adviser of $0.03
and $0.15, respectively.
(5) Maximum sales charges are not reflected in the total return calculation.
(6) Not annualized.
(7) Annualized.
See Notes to Financial Statements
11
<PAGE>
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1999 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Phoenix Investment Trust 97 (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-Hollister Small Cap Value Fund seeks long-term capital appreciation.
Phoenix-Hollister Value Equity Fund's primary investment objective is to seek
long-term capital appreciation and its secondary objective is to seek current
income by investing in a diversified portfolio of 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 the 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 generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses.
Actual results could differ from those estimates.
A. SECURITY VALUATION:
Equity securities are valued at the last sale price, or if there had been no
sale that day, at the last bid price. Short-term investments having a remaining
maturity of 60 days or less are valued at amortized cost which approximates
market. All other securities and assets are valued at fair value as determined
in good faith by or under the direction of the Trustees.
B. SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are recorded on the trade date. Interest income is
recorded on the accrual basis. Dividend income is recorded on the ex-dividend
date or, in the case of certain foreign securities, as soon as the Fund is
notified. 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 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
12
<PAGE>
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1999 (UNAUDITED) (CONTINUED)
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
As compensation for its services to the Trust, the Adviser, Phoenix Investment
Counsel, Inc., an indirect majority-owned subsidiary of Phoenix Home Life Mutual
Insurance Company ("PHL"), is 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 Billion Billion Billion
- ---------------------------------------- ---------- ---------- ----------
<S> <C> <C> <C>
Small Cap Value Fund.................... 0.90% 0.85% 0.80%
Value Equity Fund....................... 0.75% 0.70% 0.65%
</TABLE>
The Adviser has voluntarily agreed to assume total operating expenses of each
Fund excluding interest, taxes, brokerage fees, commissions and extraordinary
expenses, until December 31, 1999, to the extent that such expenses exceed the
following percentages of the average annual net asset values for each Fund:
<TABLE>
<CAPTION>
Class A Class B Class C
Shares Shares Shares
----------- ----------- -----------
<S> <C> <C> <C>
Small Cap Value Fund................... 1.40% 2.15% 2.15%
Value Equity Fund...................... 1.25% 2.00% 2.00%
</TABLE>
As Distributor of the Trust's shares, Phoenix Equity Planning Corp. ("PEPCO"),
an indirect majority-owned subsidiary of PHL, has advised the Trust that it
retained net selling commissions of $5,603 for Class A shares, and deferred
sales charges of $18,350 for Class B shares and $2,914 for Class C shares for
the six months ended February 28, 1999. 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 28, 1999, $117,255 was retained by
the Distributor, $32,982 was paid to unaffiliated participants, and $3,525 was
paid to W.S. Griffith, an indirect subsidiary of PHL.
As Financial Agent of each Fund, PEPCO receives a financial agent fee equal to
the sum of (1) the documented cost of fund accounting and related services
provided by PFPC Inc. (subagent to PEPCO), plus (2) the documented cost to PEPCO
to provide financial reporting, tax services and oversight of subagent's
performance. The current fee schedule of PFPC Inc. ranges from 0.085% to 0.0125%
of the average daily net asset values of 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 28, 1999,
transfer agent fees were $78,876 of which PEPCO retained $2,342 which is net of
the fees paid to State Street.
13
<PAGE>
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1999 (UNAUDITED) (CONTINUED)
At February 28, 1999, PHL and its affiliates held shares of the Trust which
aggregated the following:
<TABLE>
<CAPTION>
Aggregate
Net Asset
Shares Value
------------ ------------
<S> <C> <C>
Small Cap Value Fund-Class A............. 472,213 $ 4,542,694
Small Cap Value Fund-Class B............. 10,044 95,822
Small Cap Value Fund-Class C............. 10,041 95,793
Value Equity Fund-Class A................ 1,318,805 15,734,539
Value Equity Fund-Class B................ 10,025 118,902
Value Equity Fund-Class C................ 10,022 118,864
</TABLE>
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended February 28,
1999 (excluding U.S. Government and agency securities, and short-term
securities) aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Small Cap Value Fund....................... $ 31,739,375 $ 28,018,418
Value Equity Fund.......................... 28,524,422 26,559,737
</TABLE>
There were no purchases or sales of long-term U.S. Government and agency
securities during the six months ended February 28, 1999.
4. CREDIT RISK
In countries with limited or developing markets, investments may present
greater risks than in more developed markets and the prices of such investments
may be volatile. The consequences of political, social or economic changes in
these markets may have disruptive effects on the market prices of these
investments and the income they generate, as well as a Fund's ability to
repatriate such amounts.
5. CAPITAL LOSS CARRYOVERS
Under current tax law, capital losses realized after October 31, 1997 may be
deferred and treated as occuring on the first day of the following fiscal year.
For the year ended August 31, 1998, the Value Equity Fund deferred capital
losses of $562,402.
This report is not authorized for distribution to prospective investors in the
Phoenix Investment Trust 97 unless preceded or accompanied by an effective
Prospectus which includes information concerning the sales charge, the Fund's
record and other pertinent information.
14
<PAGE>
PHOENIX INVESTMENT TRUST 97
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
Christian C. Bertelsen, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Clerk and Secretary
INVESTMENT ADVISER
Phoenix Investment Counsel, Inc.
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
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574 (option 0)
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
World Wide Web address:
WWW.PHOENIXINVESTMENTS.COM
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION -----------------
PO Box 2200 PRSRT STD
Enfield CT 06083-2200 U.S. Postage
PAID
[LOGO] Phoenix Springfield, MA
Investment Partners Permit No. 444
-----------------
PXP 214 (4/99)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0001045018
<NAME> PHOENIX INVESTMENT TRUST 97
<SERIES>
<NUMBER> 021
<NAME> PHOENIX-HOLLISTER SMALL CAP VALUE FUND - CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 32947
<INVESTMENTS-AT-VALUE> 32033
<RECEIVABLES> 1427
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 33462
<PAYABLE-FOR-SECURITIES> 1400
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 216
<TOTAL-LIABILITIES> 1616
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 34268
<SHARES-COMMON-STOCK> 2067
<SHARES-COMMON-PRIOR> 1791
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (31)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1477)
<ACCUM-APPREC-OR-DEPREC> (914)
<NET-ASSETS> 31846
<DIVIDEND-INCOME> 200
<INTEREST-INCOME> 13
<OTHER-INCOME> 0
<EXPENSES-NET> (244)
<NET-INVESTMENT-INCOME> (31)
<REALIZED-GAINS-CURRENT> (1417)
<APPREC-INCREASE-CURRENT> 5827
<NET-CHANGE-FROM-OPS> 4379
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (30)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 530
<NUMBER-OF-SHARES-REDEEMED> (257)
<SHARES-REINVESTED> 3
<NET-CHANGE-IN-ASSETS> 5358
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (13)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 131
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 333
<AVERAGE-NET-ASSETS> 29269
<PER-SHARE-NAV-BEGIN> 8.11
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 1.53
<PER-SHARE-DIVIDEND> (.02)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.62
<EXPENSE-RATIO> 1.40
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0001045018
<NAME> PHOENIX INVESTMENT TRUST 97
<SERIES>
<NUMBER> 022
<NAME> PHOENIX-HOLLISTER SMALL CAP VALUE FUND - CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 32947
<INVESTMENTS-AT-VALUE> 32033
<RECEIVABLES> 1427
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 33462
<PAYABLE-FOR-SECURITIES> 1400
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 216
<TOTAL-LIABILITIES> 1616
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 34268
<SHARES-COMMON-STOCK> 810
<SHARES-COMMON-PRIOR> 734
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (31)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1477)
<ACCUM-APPREC-OR-DEPREC> (914)
<NET-ASSETS> 31846
<DIVIDEND-INCOME> 200
<INTEREST-INCOME> 13
<OTHER-INCOME> 0
<EXPENSES-NET> (244)
<NET-INVESTMENT-INCOME> (31)
<REALIZED-GAINS-CURRENT> (1417)
<APPREC-INCREASE-CURRENT> 5827
<NET-CHANGE-FROM-OPS> 4379
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (12)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 156
<NUMBER-OF-SHARES-REDEEMED> (81)
<SHARES-REINVESTED> 1
<NET-CHANGE-IN-ASSETS> 1801
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (13)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 131
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 333
<AVERAGE-NET-ASSETS> 29269
<PER-SHARE-NAV-BEGIN> 8.07
<PER-SHARE-NII> (.03)
<PER-SHARE-GAIN-APPREC> 1.52
<PER-SHARE-DIVIDEND> (.02)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.54
<EXPENSE-RATIO> 2.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0001045018
<NAME> PHOENIX INVESTMENT TRUST 97
<SERIES>
<NUMBER> 023
<NAME> PHOENIX-HOLLISTER SMALL CAP VALUE FUND - CLASS C
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 32947
<INVESTMENTS-AT-VALUE> 32033
<RECEIVABLES> 1427
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 33462
<PAYABLE-FOR-SECURITIES> 1400
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 216
<TOTAL-LIABILITIES> 1616
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 34268
<SHARES-COMMON-STOCK> 445
<SHARES-COMMON-PRIOR> 343
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (31)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1477)
<ACCUM-APPREC-OR-DEPREC> (914)
<NET-ASSETS> 31846
<DIVIDEND-INCOME> 200
<INTEREST-INCOME> 13
<OTHER-INCOME> 0
<EXPENSES-NET> (244)
<NET-INVESTMENT-INCOME> (31)
<REALIZED-GAINS-CURRENT> (1417)
<APPREC-INCREASE-CURRENT> 5827
<NET-CHANGE-FROM-OPS> 4379
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (6)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 148
<NUMBER-OF-SHARES-REDEEMED> (46)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1477
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (13)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 131
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 333
<AVERAGE-NET-ASSETS> 29269
<PER-SHARE-NAV-BEGIN> 8.07
<PER-SHARE-NII> (.02)
<PER-SHARE-GAIN-APPREC> 1.51
<PER-SHARE-DIVIDEND> (.02)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.54
<EXPENSE-RATIO> 2.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0001045018
<NAME> PHOENIX INVESTMENT TRUST 97
<SERIES>
<NUMBER> 011
<NAME> PHOENIX-HOLLISTER VALUE EQUITY FUND - CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 33152
<INVESTMENTS-AT-VALUE> 38136
<RECEIVABLES> 882
<ASSETS-OTHER> 378
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 39396
<PAYABLE-FOR-SECURITIES> 1759
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 185
<TOTAL-LIABILITIES> 1944
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 33657
<SHARES-COMMON-STOCK> 2242
<SHARES-COMMON-PRIOR> 2210
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (47)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1142)
<ACCUM-APPREC-OR-DEPREC> 4984
<NET-ASSETS> 37452
<DIVIDEND-INCOME> 238
<INTEREST-INCOME> 4
<OTHER-INCOME> 0
<EXPENSES-NET> (243)
<NET-INVESTMENT-INCOME> (1)
<REALIZED-GAINS-CURRENT> (562)
<APPREC-INCREASE-CURRENT> 9830
<NET-CHANGE-FROM-OPS> 9267
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (111)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 177
<NUMBER-OF-SHARES-REDEEMED> (155)
<SHARES-REINVESTED> 10
<NET-CHANGE-IN-ASSETS> 6967
<ACCUMULATED-NII-PRIOR> 70
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (580)
<GROSS-ADVISORY-FEES> 125
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 341
<AVERAGE-NET-ASSETS> 33548
<PER-SHARE-NAV-BEGIN> 8.94
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> 3.03
<PER-SHARE-DIVIDEND> (.05)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.93
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0001045018
<NAME> PHOENIX INVESTMENT TRUST 97
<SERIES>
<NUMBER> 012
<NAME> PHOENIX-HOLLISTER VALUE EQUITY FUND - CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 33152
<INVESTMENTS-AT-VALUE> 38136
<RECEIVABLES> 882
<ASSETS-OTHER> 378
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 39396
<PAYABLE-FOR-SECURITIES> 1759
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 185
<TOTAL-LIABILITIES> 1944
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 33657
<SHARES-COMMON-STOCK> 650
<SHARES-COMMON-PRIOR> 595
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (47)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1142)
<ACCUM-APPREC-OR-DEPREC> 4984
<NET-ASSETS> 37452
<DIVIDEND-INCOME> 238
<INTEREST-INCOME> 4
<OTHER-INCOME> 0
<EXPENSES-NET> (243)
<NET-INVESTMENT-INCOME> (1)
<REALIZED-GAINS-CURRENT> (562)
<APPREC-INCREASE-CURRENT> 9830
<NET-CHANGE-FROM-OPS> 9267
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 103
<NUMBER-OF-SHARES-REDEEMED> (48)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2416
<ACCUMULATED-NII-PRIOR> 70
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (580)
<GROSS-ADVISORY-FEES> 125
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 341
<AVERAGE-NET-ASSETS> 33548
<PER-SHARE-NAV-BEGIN> 8.89
<PER-SHARE-NII> (.03)
<PER-SHARE-GAIN-APPREC> 3.01
<PER-SHARE-DIVIDEND> (.01)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.86
<EXPENSE-RATIO> 2.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0001045018
<NAME> PHOENIX INVESTMENT TRUST 97
<SERIES>
<NUMBER> 013
<NAME> PHOENIX-HOLLISTER VALUE EQUITY FUND - CLASS C
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 33152
<INVESTMENTS-AT-VALUE> 38136
<RECEIVABLES> 882
<ASSETS-OTHER> 378
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 39396
<PAYABLE-FOR-SECURITIES> 1759
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 185
<TOTAL-LIABILITIES> 1944
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 33657
<SHARES-COMMON-STOCK> 254
<SHARES-COMMON-PRIOR> 225
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (47)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1142)
<ACCUM-APPREC-OR-DEPREC> 4984
<NET-ASSETS> 37452
<DIVIDEND-INCOME> 238
<INTEREST-INCOME> 4
<OTHER-INCOME> 0
<EXPENSES-NET> (243)
<NET-INVESTMENT-INCOME> (1)
<REALIZED-GAINS-CURRENT> (562)
<APPREC-INCREASE-CURRENT> 9830
<NET-CHANGE-FROM-OPS> 9267
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 43
<NUMBER-OF-SHARES-REDEEMED> (14)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1007
<ACCUMULATED-NII-PRIOR> 70
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (580)
<GROSS-ADVISORY-FEES> 125
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 341
<AVERAGE-NET-ASSETS> 33548
<PER-SHARE-NAV-BEGIN> 8.89
<PER-SHARE-NII> (.03)
<PER-SHARE-GAIN-APPREC> 3.01
<PER-SHARE-DIVIDEND> (.01)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.86
<EXPENSE-RATIO> 2.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
