<PAGE>
PHOENIX INVESTMENT PARTNERS
SEMIANNUAL REPORT
FEBRUARY 29, 2000
HOLLISTER
Phoenix-Hollister
Small Cap Value Fund
Phoenix-Hollister
Value Equity Fund
[LOGO]
PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
We are pleased to provide this semiannual financial summary for the
Phoenix-Hollister Small Cap Value Fund and the Phoenix-Hollister Value Equity
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-Hollister Small Cap Value Fund
INVESTMENTS AT FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
COMMON STOCKS--89.6%
BANKS (REGIONAL)--1.3%
Cullen/Frost Bankers, Inc.................. 55,000 $ 1,182,500
BUILDING MATERIALS--1.0%
Owens Corning.............................. 65,000 942,500
CHEMICALS (SPECIALTY)--2.0%
Fuller (H.B.) Co........................... 29,000 1,779,875
COMMUNICATIONS EQUIPMENT--7.7%
Brooktrout, Inc.(b)........................ 98,000 4,704,000
L-3 Communications Holdings, Inc.(b)....... 53,000 2,255,812
-----------
6,959,812
-----------
COMPUTERS (HARDWARE)--3.8%
Computer Network Technology Corp.(b)....... 40,000 1,002,500
Gadzoox Networks, Inc.(b).................. 37,000 2,451,250
-----------
3,453,750
-----------
COMPUTERS (NETWORKING)--1.4%
Eloquent, Inc.(b).......................... 7,000 235,375
Vixel Corp.(b)............................. 33,000 990,000
-----------
1,225,375
-----------
CONSTRUCTION (CEMENT & AGGREGATES)--1.2%
Texas Industries, Inc...................... 36,000 1,080,000
ELECTRICAL EQUIPMENT--7.5%
Amphenol Corp. Class A(b).................. 29,000 2,318,187
Black Box Corp.(b)......................... 31,000 2,319,187
Littelfuse, Inc.(b)........................ 70,000 2,091,250
-----------
6,728,624
-----------
ELECTRONICS (COMPONENT DISTRIBUTORS)--2.3%
Network Access Solutions Corp.(b).......... 68,000 2,074,000
ELECTRONICS (INSTRUMENTATION)--3.0%
Methode Electronics, Inc. Class A.......... 46,000 2,673,750
ELECTRONICS (SEMICONDUCTORS)--2.1%
Dallas Semiconductor Corp.................. 46,000 1,857,250
ENGINEERING & CONSTRUCTION--12.2%
Dycom Industries, Inc.(b).................. 94,500 4,725,000
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
ENGINEERING & CONSTRUCTION--CONTINUED
MasTec, Inc.(b)............................ 59,000 $ 3,399,875
Quanta Services, Inc.(b)................... 70,000 2,835,000
-----------
10,959,875
-----------
FINANCIAL (DIVERSIFIED)--0.8%
CompuCredit Corp.(b)....................... 22,000 726,000
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.8%
Cell Pathways, Inc.(b)..................... 16,000 752,000
HEALTH CARE (GENERIC AND OTHER)--2.2%
Dura Pharmaceuticals, Inc.(b).............. 145,000 2,011,875
HEALTH CARE (MANAGED CARE)--1.7%
Trigon Healthcare, Inc.(b)................. 48,000 1,533,000
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--4.9%
Cooper Companies, Inc. (The)............... 73,000 2,002,937
Laser Vision Centers, Inc.(b).............. 230,000 2,386,250
-----------
4,389,187
-----------
HOMEBUILDING--1.6%
Horton (D.R.), Inc......................... 72,000 810,000
Lennar Corp................................ 40,000 660,000
-----------
1,470,000
-----------
INSURANCE (PROPERTY-CASUALTY)--3.1%
Commerce Group, Inc. (The)................. 30,000 896,250
Horace Mann Educators Corp................. 60,000 930,000
Radian Group, Inc.......................... 22,500 780,469
Selective Insurance Group, Inc............. 14,000 216,125
-----------
2,822,844
-----------
LODGING-HOTELS--1.1%
Sun International Hotels Ltd.(b)........... 45,000 959,062
MACHINERY (DIVERSIFIED)--0.8%
Terex Corp.(b)............................. 62,000 736,250
MANUFACTURING (DIVERSIFIED)--1.8%
Shaw Group, Inc. (The)(b).................. 66,100 1,619,450
OIL & GAS (DRILLING & EQUIPMENT)--8.0%
BJ Services Co.(b)......................... 36,000 2,054,250
R&B Falcon Corp.(b)........................ 115,000 1,775,312
</TABLE>
2 See Notes to Financial Statements
<PAGE>
Phoenix-Hollister Small Cap Value Fund
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
OIL & GAS (DRILLING & EQUIPMENT)--CONTINUED
Santa Fe International Corp................ 57,000 $ 1,635,188
Transocean Sedco Forex, Inc................ 45,000 1,774,688
-----------
7,239,438
-----------
POWER PRODUCERS (INDEPENDENT)--3.1%
Calpine Corp.(b)........................... 30,000 2,745,000
REITS--2.1%
Health Care REIT, Inc...................... 34,000 529,125
LaSalle Hotel Properties................... 85,000 1,062,500
RFS Hotel Investors, Inc................... 30,000 318,750
-----------
1,910,375
-----------
RESTAURANTS--0.5%
Lone Star Steakhouse & Saloon, Inc.(b)..... 46,000 408,250
RETAIL (SPECIALTY)--1.4%
Claire's Stores, Inc....................... 37,000 645,188
Discount Auto Parts, Inc.(b)............... 55,000 598,125
-----------
1,243,313
-----------
RETAIL (SPECIALTY-APPAREL)--0.8%
Men's Wearhouse, Inc. (The)(b)............. 30,000 696,563
SAVINGS & LOAN COMPANIES--0.8%
Bank United Corp. Class A.................. 28,000 733,250
SERVICES (COMMERCIAL & CONSUMER)--3.2%
Crown Castle International Corp.(b)........ 78,000 2,515,500
Wackenhut Corp. (The) Class A(b)........... 30,000 393,750
-----------
2,909,250
-----------
SERVICES (FACILITIES & ENVIRONMENTAL)--3.2%
Tetra Tech, Inc.(b)........................ 115,000 2,882,188
SPECIALTY PRINTING--2.2%
Valassis Communications, Inc.(b)........... 73,000 2,021,188
- ----------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $65,882,462) 80,725,794
- ----------------------------------------------------------------------
FOREIGN COMMON STOCKS--3.1%
ELECTRIC COMPANIES--2.5%
Independent Energy Holdings PLC ADR (United
Kingdom)(b)................................ 44,000 2,202,750
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C> <C>
INSURANCE (PROPERTY-CASUALTY)--0.6%
RenaissanceRe Holdings Ltd. (Bermuda)...... 15,000 $ 568,125
- ----------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $2,374,497) 2,770,875
- ----------------------------------------------------------------------
UNIT INVESTMENT TRUSTS--2.4%
AMEX Basic Industries Select Sector
Depository Receipts........................ 17,000 356,734
AMEX Financial Select Sector Depository
Receipts................................... 50,000 1,029,687
AMEX Industial Select Sector Depository
Receipts................................... 15,000 385,313
S&P 500 Depository Receipts................ 2,900 397,753
- ----------------------------------------------------------------------
TOTAL UNIT INVESTMENT TRUSTS
(IDENTIFIED COST $2,468,716) 2,169,487
- ----------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--95.1%
(IDENTIFIED COST $70,725,675) 85,666,156
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000)
--------- ------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--4.4%
COMMERCIAL PAPER--4.4%
Koch Industries, Inc. 5.80%,
3/1/00.............................. A-1+ $4,005 4,005,000
- --------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $4,005,000) 4,005,000
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--99.5%
(IDENTIFIED COST $74,730,675) 89,671,156(a)
Cash and receivables, less liabilities--0.5% 412,296
-----------
NET ASSETS--100.0% $90,083,452
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $19,369,965 and gross
depreciation of $5,632,158 for federal income tax purposes. At February 29,
2000, the aggregate cost of securities for federal income tax purposes was
$75,933,349.
(b) Non-income producing.
See Notes to Financial Statements
3
<PAGE>
Phoenix-Hollister Small Cap Value Fund
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $74,730,675) $ 89,671,156
Receivables
Fund shares sold 1,029,401
Dividends and interest 18,025
Prepaid expenses 451
--------------
Total assets 90,719,033
--------------
LIABILITIES
Payables
Custodian 611
Investment securities purchased 284,246
Fund shares repurchased 140,049
Investment advisory fee 97,127
Distribution fee 34,157
Transfer agent fee 13,622
Trustees' fee 9,946
Financial agent fee 8,459
Accrued expenses 47,364
--------------
Total liabilities 635,581
--------------
NET ASSETS $ 90,083,452
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 63,034,895
Undistributed net investment loss (201,388)
Accumulated net realized gain 12,309,464
Net unrealized appreciation 14,940,481
--------------
NET ASSETS $ 90,083,452
==============
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $54,527,533) 3,287,908
Net asset value per share $16.58
Offering price per share $16.58/(1-4.75%) $17.41
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $18,148,379) 1,112,820
Net asset value and offering price per share $16.31
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $17,407,540) 1,067,498
Net asset value and offering price per share $16.31
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 235,463
Interest 60,657
--------------
Total investment income 296,120
--------------
EXPENSES
Investment advisory fee 266,561
Distribution fee, Class A 46,369
Distribution fee, Class B 61,579
Distribution fee, Class C 49,113
Financial agent fee 44,351
Transfer agent 45,793
Registration 15,241
Printing 14,769
Custodian 10,490
Professional 9,220
Trustees 8,454
Miscellaneous 3,028
--------------
Total expenses 574,968
Less expenses borne by investment adviser (75,413)
Custodian fees paid indirectly (2,047)
--------------
Net expenses 497,508
--------------
NET INVESTMENT LOSS (201,388)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 15,735,029
Net change in unrealized appreciation (depreciation) on
investments 11,479,591
--------------
NET GAIN ON INVESTMENTS 27,214,620
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 27,013,232
==============
</TABLE>
4 See Notes to Financial Statements
<PAGE>
Phoenix-Hollister Small Cap Value 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) $ (201,388) $ (52,755)
Net realized gain (loss) 15,735,029 192,893
Net change in unrealized appreciation
(depreciation) 11,479,591 10,201,578
----------- -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 27,013,232 10,341,716
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A (2,234,451) (29,557)
Net realized gains, Class B (731,921) (11,989)
Net realized gains, Class C (554,210) (5,756)
----------- -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (3,520,582) (47,302)
----------- -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (996,119
and 1,080,990 shares, respectively) 13,952,566 11,142,835
Net asset value of shares issued from
reinvestment of distributions
(146,700 and 2,728 shares,
respectively) 2,021,532 27,226
Cost of shares repurchased (215,294
and 513,966 shares, respectively) (3,015,576) (5,211,308)
----------- -----------
Total 12,958,522 5,958,753
----------- -----------
CLASS B
Proceeds from sales of shares (265,611
and 328,886 shares, respectively) 3,758,198 3,326,336
Net asset value of shares issued from
reinvestment of distributions
(51,822 and 1,052 shares,
respectively) 703,223 10,468
Cost of shares repurchased (47,260 and
221,287 shares, respectively) (632,963) (2,235,715)
----------- -----------
Total 3,828,458 1,101,089
----------- -----------
CLASS C
Proceeds from sales of shares (477,601
and 338,260 shares, respectively) 6,706,021 3,417,996
Net asset value of shares issued from
reinvestment of distributions
(38,106 and 397 shares,
respectively) 517,092 3,935
Cost of shares repurchased (22,050 and
108,144 shares, respectively) (304,995) (1,092,574)
----------- -----------
Total 6,918,118 2,329,357
----------- -----------
CLASS M
Cost of shares repurchased (0 and
10,849 shares, respectively) -- (95,668)
----------- -----------
Total -- (95,668)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 23,705,098 9,293,531
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS 47,197,748 19,587,945
NET ASSETS
Beginning of period 42,885,704 23,297,759
----------- -----------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($201,388) AND $0,
RESPECTIVELY] $90,083,452 $42,885,704
=========== ===========
</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
--------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
2/29/00 ENDED 11/20/97 TO
(UNAUDITED) 8/31/99 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.41 $ 8.11 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.03) 0.01 (0.01)
Net realized and unrealized gain (loss) 6.01 3.31 (1.85)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 5.98 3.32 (1.86)
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net realized gains (0.81) (0.02) --
In excess of net investment income -- -- (0.03)
------- ------- -------
TOTAL DISTRIBUTIONS (0.81) (0.02) (0.03)
------- ------- -------
Change in net asset value 5.17 3.30 (1.89)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 16.58 $ 11.41 $ 8.11
======= ======= =======
Total return(2) 53.89%(5) 40.90% (18.64)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $54,528 $26,926 $14,519
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 1.40%(6)(7) 1.40% 1.40%(6)
Net investment income (loss) (0.40)%(6) 0.15% (0.14)%(6)
Portfolio turnover 106%(5) 203% 105%(5)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
2/29/00 ENDED 11/20/97 TO
(UNAUDITED) 8/31/99 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.27 $ 8.07 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.08) (0.06) (0.08)
Net realized and unrealized gain (loss) 5.93 3.28 (1.82)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 5.85 3.22 (1.90)
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net realized gains (0.81) (0.02) --
In excess of net investment income -- -- (0.03)
------- ------- -------
TOTAL DISTRIBUTIONS (0.81) (0.02) (0.03)
------- ------- -------
Change in net asset value 5.04 3.20 (1.93)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 16.31 $ 11.27 $ 8.07
======= ======= =======
Total return(2) 53.40%(5) 39.86% (19.07)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $18,148 $9,494 $5,922
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 2.15%(6)(7) 2.15% 2.15%(6)
Net investment income (loss) (1.14)%(6) (0.60)% (1.01)%(6)
Portfolio turnover 106%(5) 203% 105%(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 1.66%,
1.87% and 3.12% 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 2.41%,
2.62% and 3.87% for the periods ended February 29, 2000, August 31, 1999
and 1998, respectively.
(5) Not annualized.
(6) Annualized.
(7) For the six months ended February 29, 2000, 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.
6 See Notes to Financial Statements
<PAGE>
Phoenix-Hollister Small Cap Value 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 11/20/97 TO
(UNAUDITED) 8/31/99 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.27 $ 8.07 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.08) (0.06) (0.08)
Net realized and unrealized gain (loss) 5.93 3.28 (1.82)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 5.85 3.22 (1.90)
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net realized gains (0.81) (0.02) --
In excess of net investment income -- -- (0.03)
------- ------- -------
TOTAL DISTRIBUTIONS (0.81) (0.02) (0.03)
------- ------- -------
Change in net asset value 5.04 3.20 (1.93)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 16.31 $ 11.27 $ 8.07
======= ======= =======
Total return(2) 53.40%(4) 39.86% (19.09)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $17,408 $6,465 $2,770
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 2.15%(5)(6) 2.15% 2.15%(5)
Net investment income (loss) (1.16)%(5) (0.60)% (0.98)%(5)
Portfolio turnover 106%(4) 203% 105%(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 2.41%,
2.62% and 3.87% for the periods ended February 29, 2000, August 31, 1999
and 1998, respectively.
(4) Not annualized.
(5) Annualized.
(6) For the six months ended February 29, 2000, 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
7
<PAGE>
Phoenix-Hollister Value Equity Fund
INVESTMENTS AT FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
COMMON STOCKS--88.5%
AEROSPACE/DEFENSE--2.1%
General Dynamics Corp...................... 33,000 $ 1,427,250
ALUMINUM--2.2%
Alcoa, Inc................................. 22,000 1,507,000
AUTO PARTS & EQUIPMENT--2.5%
Delphi Automotive Systems Corp............. 105,000 1,752,187
BANKS (MAJOR REGIONAL)--0.6%
Bank One Corp.............................. 15,000 387,187
BANKS (MONEY CENTER)--5.6%
Chase Manhattan Corp. (The)................ 35,000 2,786,875
Morgan (J.P.) & Co., Inc................... 10,000 1,110,000
-----------
3,896,875
-----------
BEVERAGES (ALCOHOLIC)--1.7%
Anheuser-Busch Cos., Inc................... 18,000 1,154,250
COMPUTERS (HARDWARE)--1.0%
International Business Machines Corp....... 6,500 663,000
COMPUTERS (SOFTWARE & SERVICES)--2.4%
Healtheon/WebMD Corp.(b)................... 30,000 1,659,375
ELECTRICAL EQUIPMENT--1.7%
Solectron Corp.(b)......................... 18,000 1,179,000
ENGINEERING & CONSTRUCTION--10.7%
Dycom Industries, Inc.(b).................. 85,000 4,250,000
MasTec, Inc.(b)............................ 55,000 3,169,375
-----------
7,419,375
-----------
FINANCIAL (DIVERSIFIED)--8.7%
Citigroup, Inc............................. 48,500 2,506,844
Fannie Mae................................. 28,000 1,484,000
Freddie Mac................................ 15,000 626,250
SLM Holding Corp........................... 45,000 1,409,062
-----------
6,026,156
-----------
HEALTH CARE (GENERIC AND OTHER)--2.6%
Watson Pharmaceuticals, Inc.(b)............ 45,000 1,800,000
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
INSURANCE (MULTI-LINE)--5.0%
American International Group, Inc.......... 26,000 $ 2,299,375
CIGNA Corp................................. 16,000 1,181,000
-----------
3,480,375
-----------
INVESTMENT BANKING/BROKERAGE--6.4%
Goldman Sachs Group, Inc. (The)............ 30,000 2,775,000
Knight/Trimark Group, Inc.(b).............. 35,000 1,640,625
-----------
4,415,625
-----------
LEISURE TIME (PRODUCTS)--0.4%
Hotel Reservations Network, Inc.(b)........ 10,000 260,313
MACHINERY (DIVERSIFIED)--2.7%
Caterpillar, Inc........................... 26,000 911,625
Ingersoll-Rand Co.......................... 24,000 919,500
-----------
1,831,125
-----------
MANUFACTURING (DIVERSIFIED)--12.5%
Corning, Inc............................... 15,500 2,914,000
Honeywell International, Inc............... 49,000 2,358,125
Illinois Tool Works, Inc................... 23,000 1,188,813
Tyco International Ltd..................... 58,000 2,200,375
-----------
8,661,313
-----------
MANUFACTURING (SPECIALIZED)--2.1%
Diebold, Inc............................... 60,000 1,470,000
OFFICE EQUIPMENT & SUPPLIES--2.0%
Pitney Bowes, Inc.......................... 28,000 1,386,000
OIL & GAS (DRILLING & EQUIPMENT)--2.7%
Baker Hughes, Inc.......................... 72,000 1,863,000
PUBLISHING (NEWSPAPERS)--3.6%
Gannett Co., Inc........................... 19,000 1,238,563
Knight-Ridder, Inc......................... 27,000 1,265,625
-----------
2,504,188
-----------
SERVICES (DATA PROCESSING)--2.7%
First Data Corp............................ 41,000 1,845,000
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Hollister Value Equity Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--2.9%
AT&T Corp.................................. 40,000 $ 1,977,500
TELEPHONE--3.7%
GTE Corp................................... 27,000 1,593,000
SBC Communications, Inc.................... 25,000 950,000
-----------
2,543,000
-----------
- ---------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $56,647,382) 61,109,094
- ---------------------------------------------------------------------
FOREIGN COMMON STOCKS--12.8%
COMMUNICATIONS EQUIPMENT--7.1%
Alcatel SA ADR (France).................... 63,000 2,976,750
Telefonaktiebolaget LM Ericsson Sponsored
ADR (Sweden)............................... 20,000 1,920,000
-----------
4,896,750
-----------
COMPUTERS (SOFTWARE & SERVICES)--4.0%
SAP AG Sponsored ADR (Germany)(b).......... 39,000 2,781,187
ELECTRONICS (SEMICONDUCTORS)--1.7%
Taiwan Semiconductor Manufacturing Co. Ltd.
Sponsored ADR (Taiwan)(b).................. 20,000 1,196,250
- ---------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $5,395,630) 8,874,187
- ---------------------------------------------------------------------
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
UNIT INVESTMENT TRUSTS--0.7%
Diamonds Trust, Series I................... 5,000 $ 507,344
- ---------------------------------------------------------------------
TOTAL UNIT INVESTMENT TRUSTS
(IDENTIFIED COST $562,848) 507,344
- ---------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--102.0%
(IDENTIFIED COST $62,605,860) 70,490,625
- ---------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000)
--------- ------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--0.6%
COMMERCIAL PAPER--0.6%
Koch Industries, Inc. 5.80%,
3/1/00.............................. A-1+ $385 385,000
- --------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $385,000) 385,000
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--102.6%
(IDENTIFIED COST $62,990,860) 70,875,625(a)
Cash and receivables, less liabilities--(2.6%) (1,807,310)
-----------
NET ASSETS--100.0% $69,068,315
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $13,042,318 and gross
depreciation of $5,420,472 for federal income tax purposes. At February 29,
2000, the aggregate cost of securities for federal income tax purposes was
$63,253,779.
(b) Non-income producing.
See Notes to Financial Statements
9
<PAGE>
Phoenix-Hollister Value Equity Fund
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $62,990,860) $ 70,875,625
Cash 3,208
Receivables
Investment securities sold 1,164,446
Fund shares sold 105,605
Dividends and interest 49,587
Prepaid expenses 500
--------------
Total assets 72,198,971
--------------
LIABILITIES
Payables
Fund shares repurchased 1,545,094
Investment securities purchased 1,372,232
Investment advisory fee 101,417
Distribution fee 36,336
Transfer agent fee 13,039
Trustees' fee 9,946
Financial agent fee 8,066
Accrued expenses 44,526
--------------
Total liabilities 3,130,656
--------------
NET ASSETS $ 69,068,315
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 57,856,580
Undistributed net investment loss (124,866)
Accumulated net realized gain 3,451,836
Net unrealized appreciation 7,884,765
--------------
NET ASSETS $ 69,068,315
==============
CLASS A
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets $31,665,716) 2,311,440
Net asset value per share $13.70
Offering price per share $13.70/(1-4.75%) $14.38
CLASS B
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets $26,811,545) 1,983,872
Net asset value and offering price per share $13.51
CLASS C
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets $10,591,054) 783,169
Net asset value and offering price per share $13.52
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 333,087
Interest 53,489
Foreign taxes withheld (503)
--------------
Total investment income 386,073
--------------
EXPENSES
Investment advisory fee 231,971
Distribution fee, Class A 36,056
Distribution fee, Class B 130,753
Distribution fee, Class C 34,318
Financial agent fee 45,810
Transfer agent 33,466
Registration 14,849
Professional 12,451
Printing 11,386
Trustees 8,454
Custodian 7,333
Miscellaneous 2,904
--------------
Total expenses 569,751
Less expenses borne by investment adviser (58,812)
--------------
Net expenses 510,939
--------------
NET INVESTMENT LOSS (124,866)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 3,944,631
Net change in unrealized appreciation (depreciation) on
investments 3,790,080
--------------
NET GAIN ON INVESTMENTS 7,734,711
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 7,609,845
==============
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix-Hollister Value 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) $ (124,866) $ (68,591)
Net realized gain (loss) 3,944,631 87,678
Net change in unrealized appreciation
(depreciation) 3,790,080 8,940,662
----------- -----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 7,609,845 8,959,749
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A -- (61,486)
Net investment income, Class B -- (2,136)
Net investment income, Class C -- (982)
In excess of net investment income,
Class A -- (49,116)
In excess of net investment income,
Class B -- (1,706)
In excess of net investment income,
Class C -- (784)
----------- -----------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS -- (116,210)
----------- -----------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (258,115
and 511,993 shares, respectively) 3,371,932 6,168,646
Net asset value of shares issued from
reinvestment of distributions (0 and
9,487 shares, respectively) -- 110,073
Cost of shares repurchased (173,413
and 504,840 shares, respectively) (2,253,021) (6,064,609)
----------- -----------
Total 1,118,911 214,110
----------- -----------
CLASS B
Proceeds from sales of shares (67,755
and 1,603,387 shares, respectively) 869,748 20,006,209
Net asset value of shares issued from
reinvestment of distributions (0 and
298 shares, respectively) -- 3,446
Cost of shares repurchased (143,827
and 138,841 shares, respectively) (1,922,180) (1,652,638)
----------- -----------
Total (1,052,432) 18,357,017
----------- -----------
CLASS C
Proceeds from sales of shares (562,246
and 87,709 shares, respectively) 7,093,874 985,203
Net asset value of shares issued from
reinvestment of distributions (0 and
122 shares, respectively) -- 1,405
Cost of shares repurchased (37,985 and
54,302 shares, respectively) (493,123) (656,192)
----------- -----------
Total 6,600,751 330,416
----------- -----------
CLASS M
Cost of shares repurchased (0 and
10,024 shares, respectively) -- (105,146)
----------- -----------
Total -- (105,146)
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 6,667,230 18,796,397
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS 14,277,075 27,639,936
NET ASSETS
Beginning of period 54,791,240 27,151,304
----------- -----------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($124,866) AND $0, RESPECTIVELY] $69,068,315 $54,791,240
=========== ===========
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix-Hollister Value 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 11/5/97 TO
(UNAUDITED) 8/31/99 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 12.11 $ 8.94 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) 0.00 0.02 0.03
Net realized and unrealized gain (loss) 1.59 3.20 (1.07)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 1.59 3.22 (1.04)
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income -- (0.03) (0.01)
In excess of net investment income -- (0.02) (0.01)
------- ------- -------
TOTAL DISTRIBUTIONS -- (0.05) (0.02)
------- ------- -------
Change in net asset value 1.59 3.17 (1.06)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 13.70 $ 12.11 $ 8.94
======= ======= =======
Total return(2) 13.13%(5) 35.89% (10.28)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $31,666 $26,974 $19,766
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 1.25%(6) 1.25% 1.25%(6)
Net investment income (loss) 0.00%(6) 0.14% 0.31%(6)
Portfolio turnover 96%(5) 192% 59%(5)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
2/29/00 ENDED 11/5/97 TO
(UNAUDITED) 8/31/99 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 12.00 $ 8.89 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.05) (0.07) (0.04)
Net realized and unrealized gain (loss) 1.56 3.19 (1.05)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 1.51 3.12 (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 1.51 3.11 (1.11)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 13.51 $ 12.00 $ 8.89
======= ======= =======
Total return(2) 12.67%(5) 35.05% (10.92)%(5)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $26,812 $24,709 $5,291
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(4) 2.00%(6) 2.00% 2.00%(6)
Net investment income (loss) (0.75)%(6) (0.62)% (0.45)%(6)
Portfolio turnover 96%(5) 192% 59%(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 1.44%,
1.57% and 2.96% 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 2.19%,
2.32% and 3.71% for the periods ended February 29, 2000, August 31, 1999
and 1998, respectively.
(5) Not annualized.
(6) Annualized.
12
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 C
--------------------------------------------
SIX MONTHS FROM
ENDED YEAR INCEPTION
2/29/00 ENDED 11/5/97 TO
(UNAUDITED) 8/31/99 8/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 12.00 $ 8.89 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.05) (0.07) (0.04)
Net realized and unrealized gain (loss) 1.57 3.19 (1.05)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS 1.52 3.12 (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 1.52 3.11 (1.11)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 13.52 $ 12.00 $ 8.89
======= ======= =======
Total return(2) 12.67%(4) 34.91% (10.86)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $10,591 $3,108 $2,005
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses(3) 2.00%(5) 2.00% 2.00%(5)
Net investment income (loss) (0.76)%(5) (0.60)% (0.45)%(5)
Portfolio turnover 96%(4) 192% 59%(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 2.18%,
2.32% and 3.71% for the periods ended February 29, 2000, August 31, 1999
and 1998, respectively.
(4) Not annualized.
(5) Annualized.
See Notes to Financial Statements
13
<PAGE>
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2000 (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 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. 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
14
<PAGE>
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2000 (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 August 31, 2000, 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 $10,807 for Class A shares, and deferred
sales charges of $16,392 for Class B shares and $952 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, $266,759 was
retained by the Distributor, $86,721 was paid to unaffiliated participants, and
$4,708 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 29, 2000,
transfer agent fees were $79,259 of which PEPCO retained $9,832 which is net of
the fees paid to State Street.
15
<PAGE>
PHOENIX INVESTMENT TRUST 97
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2000 (UNAUDITED) (CONTINUED)
At February 29, 2000, PHL and its affiliates held shares of the Trust which
aggregated the following:
<TABLE>
<CAPTION>
Aggregate Net
Shares Asset Value
---------- -------------
<S> <C> <C>
Small Cap Value Fund, Class A........... 500,108 $ 8,291,791
Value Equity Fund, Class A.............. 1,161,425 15,911,523
Value Equity Fund, Class B.............. 1,271,006 17,171,291
</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>
Small Cap Value Fund.................... $78,765,349 $61,984,032
Value Equity Fund....................... 70,012,018 57,791,960
</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.
5. CAPITAL LOSS CARRYOVERS
At August 31, 1999, the Value Equity Fund had a capital loss carryover of
$403,905, expiring in 2007, which may be used to offset future capital gains.
Under current tax law, capital losses realized after October 31 may be
deferred and treated as occurring on the first day of the following fiscal year.
For the year ended August 31, 1999, the Small Cap Value Fund deferred capital
losses of $1,016,461 and the Value Equity Fund utilized capital losses deferred
in the prior year in the amount of $678,812.
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.
16
<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
Robert S. Driessen, Vice President
Christian C. Bertelsen, Vice President
William R. Moyer, Vice President
Michael A. Kearney, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Clerk and Secretary
Nancy J. Engberg, Assistant Clerk
and Assistant 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
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
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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 214 (4/00)
