================================================================================
Phoenix Investment Partners
October 31, 1999
Phoenix-Euclid
Market Neutral Fund
---------------
ANNUAL REPORT
---------------
[LOGO] PHOENIX
INVESTMENT PARTNERS
<PAGE>
--------
CONTENTS
--------
1 Letter to Shareholders
4 Schedule of Investments and Securities Sold Short
13 Statement of Assets and Liabilities
14 Statement of Operations
15 Statement of Changes in Net Assets
16 Notes to Financial Statements
18 Financial Highlights
19 Report of Independent Accountants
This report has been prepared for the information of shareholders of
Phoenix-Euclid Market Neutral Fund and is not authorized for use
unless preceded or accompanied by a current prospectus. The prospectus
includes information regarding the fund's sales charges, expenses,
objectives, policies, management, performance and other information.
Please read it carefully before you invest or send money. Call your
financial advisor or Phoenix Equity Planning Corporation at
1-800-243-1574 to obtain a copy of the prospectus.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value
will fluctuate so that your shares, when redeemed, may be worth more
or less than their original cost. The shorter the time period of your
investment, the greater the possibility of loss. Fund shares are not
deposits or obligations of, or insured or guaranteed by, the U.S.
government, any financial institution, the Federal Deposit Insurance
Corporation, or any other agency, entity or person.
<PAGE>
[PHOTO]
DEAR FELLOW SHAREHOLDERS,
For the year ended October 31, 1999, the Fund's Class A shares were down 0.40%,
versus the three-month Treasury bill annual return of 4.66%. Class B and C
Shares (which have no initial sales charge, but bear higher annual expenses)
were down 1.02% and 1.12%, respectively.
Our market neutral strategy is designed to provide capital appreciation in bull
markets and in bear markets, while maintaining minimal exposure to general
market risk. We seek to achieve our objective by constructing a portfolio of
long positions and a different, offsetting portfolio of short positions in
equity securities. We believe stock selection is the key to success in a market
neutral fund.
Although it was a difficult year overall for return, we did relatively well
compared to our peer group (as shown below). After a weak first half of the year
(down 4.6%), our performance improved in the second half (gaining 4.4%).
Trailing Trailing
Name 12 months 6 months
-------------------------------------------------------------------
Euclid Market Neutral (0.4) 4.4
Barr Rosenberg Market Neutral (10.3) 3.3
Dreyfus Premier Market Neutral (5.2) (0.1)
Puget Sound Market Neutral (0.9) 7.2
Warburg Pincus Market Neutral (2.3) (0.7)
Average (3.8) 2.6
3 Month T-Bill 4.7 2.4
As you can see from the following charts, the market rewarded high-P/E and
large-cap stocks all year. We examined the returns of the S&P SuperComposite
1500 Index, a combination of the S&P 500, the S&P MidCap 400, and the S&P
SmallCap 600 indices(1). This universe of stocks approximates the list that we
consider for positions in the Fund. We divided these 1500 stocks into quintiles
by market capitalization and P/E, analyzing both the six-month and the 12-month
returns ended October 31, 1999. In both time periods, the larger the market cap
and higher the P/E, the better the quintiles performed. Although the magnitude
of the spreads between the highest and lowest quintile for both the high-P/E and
large-cap stocks narrowed in the second half of the year, it was only a moderate
contraction.
- ---------
(1) The S&P 500 Index is a commonly used measure of stock market total return
performance. The S&P MidCap 400 Index is a commonly used measure of mid-cap
stock total return performance. The S&P SmallCap 600 Index is a commonly
used measure of small-cap stock total return performance. The indices are
not available for direct investment.
1
<PAGE>
<TABLE>
<CAPTION>
12-Month 6-Month Market 12-Month 6-Month
Quintile P/E Ratio Return Return Quintile Capitalization Return Return
- -------------------------------------------------------- -------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 50.0x 42.4% 16.1% 1 $15.6 Billion 22.6% -0.6%
2 26.8x 25.7% 4.4% 2 $3.4 Billion 6.3% -2.9%
3 17.5x 4.9% -5.0% 3 $1.3 Billion 1.1% -5.2%
4 13.0x -5.7% -7.8% 4 $.6 Billion -2.5% -4.2%
5 9.0x -20.7% 19.7% 5 $.2 Billion -18.3% -15.4%
Median 17.5x 2.7% -5.2% Median $1.3 Billion 2.7% -5.2%
</TABLE>
The dominance of growth stocks over value stocks also held throughout the year
across different capitalization groups, as the table below illustrates. That is,
it didn't matter whether you invested in small-cap stocks, mid-cap stocks or
large-cap stocks, growth beat value across the board.
12-Month 6-Month
Index Return Return
-------------------------------------------------------------------
S&P 500/Barra Growth 29.8% 7.3%
S&P 500/Barra Value 17.8% -2.2%
Large Cap Growth - Value Spread 12.0% 9.6%
S&P MidCap 400/Barra Growth 36.6% 7.5%
S&P MidCap 400/Barra Value 1.7% -3.6%
Mid Cap Growth - Value Spread 34.9% 11.1%
S&P SmallCap 600/Barra Growth 13.8% 5.0%
S&P SmallCap 600/Barra Value 3.6% -0.4%
Small Cap Growth - Value Spread 10.2% 5.4%
So if the major market trends did not change much in the last six months, what
accounted for our improved performance? It was not a change in the market but
the natural tendency for our models to adjust to market conditions. Our models,
which analyze historic patterns, are always updating and adjusting to changes in
the market. For example, everything else being held constant, if a stock
historically trades at 20x earnings, then starts trading at 25x, our models
would consider the stock overvalued (assuming no change in the market's average
P/E). On the other hand, if the stock traded at 25x for an extended period of
time, our models would adjust to this new level. We believe relative measures of
this type are important tools in quantitative analysis. It is the models'
inherent adjustment process that keeps our market neutral strategy from being
out of step with the market for a prolonged period of time.
This aspect of our models was probably most evident in the technology sector.
Although we do not have a significant net long or net short position in
technology, it is worth noting that this
2
<PAGE>
sector clearly moved according to its own rules during the year. Without the
highflying technology sector, the S&P SuperComposite 1500 had a median return of
0.53% for the year and had a P/E of 16.3x. Technology's return of 43.00% with a
P/E of 36.9x shows investors' enthusiasm for this sector. History shows that
fundamentals affect long-term stock prices far more than market capitalization
and short-term momentum. Our models analyze and rank stocks according to both
growth and value characteristics taking into account historical patterns. It is
these growth and value characteristics that have had the greatest long-term
influence on stock prices.
We have managed market neutral portfolios for eight years prior to the start of
the mutual fund. Focusing on fundamentals can work well over time, but not all
the time. Further, we believe that the Phoenix-Euclid Market Neutral Fund can
serve as an important diversification tool for long-term shareholders. We thank
you for your continued support.
Sincerely,
/s/ David Katzen
David Katzen
Executive Vice President
November 22, 1999
Growth of $10,000
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Phoenix-Euclid Market Three Month
Neutral Fund Class A U.S. T-Bill
-------------------- -----------
5/1/98 $9,450 $10,000
10/31/98 $9,033 $10,245
10/31/99 $8,997 $10,730
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
May 1, 1998 in Class A Shares and reflects the maximum sales charge of 5.50% on
the initial investment. Performance assumes dividends are reinvested. The
performance of other share classes will be greater or less than that shown based
on differences in fees and sales charges.
Average Annual Total Return
For the Periods Ended 10/31/99*
Since
Inception
1 Year on 5/1/98
-------------------------------------------------------
Class A Shares at NAV (0.40)% (3.22)%
Class A Shares at POP (5.88) (6.80)
Class B Shares at NAV (1.02) (3.80)
Class B Shares with CDSC (5.97) (6.38)
Class C Shares at NAV (1.12) (3.98)
Class C Shares with CDSC (2.36) (3.98)
Class I Shares (0.01) (2.95)
Three Month U.S. T-Bill 4.73 4.80
* Reflects initial sales charge on Class A Shares at Public Offering Price
("POP"), applicable Contingent Deferred Sales Charges ("CDSC") on Class B
and Class C Shares and the reinvestment of dividends.
3
<PAGE>
SCHEDULE OF INVESTMENTS AND SECURITIES SOLD SHORT
OCTOBER 31, 1999
Number Value
of Shares (Note 3)
- --------------------------------------------------------------------------------
INVESTMENTS
COMMON STOCKS: 93.38%
Aerospace and Defense: 0.88%
AAR Corp. 7,300 $ 121,819
B.F. Goodrich & Co. 19,900 471,381
Boeing Co. 800 36,850
Cordant Technologies, Inc. 6,200 193,363
Northrop Grumman Corp. 1,000 54,875
-----------------
878,288
-----------------
Agricultural Products: 0.27%
Corn Products International, Inc. 4,200 136,763
Universal Corp. 5,500 129,250
-----------------
266,013
-----------------
Airlines: 0.83%
* Alaska Air Group, Inc. 6,500 258,375
* America West Holding Corp.,
Class B 22,900 473,744
KLM Royal Dutch Airlines 3,600 96,975
-----------------
829,094
-----------------
Automotive Parts and Equipment: 1.75%
Arvin Industries, Inc. 13,013 370,870
Borg-Warner Automotive, Inc. 2,700 106,650
Cooper Tire & Rubber Co. 5,100 85,744
* Lear Corp. 10,900 367,875
Mark IV Industries, Inc. 33,600 646,800
Snap-on, Inc. 5,700 173,138
-----------------
1,751,077
-----------------
Automobiles: 0.45%
Ford Motor Co. 8,200 449,975
-----------------
Banks-Money Center: 0.08%
UnionBancal Corp. 1,900 82,531
-----------------
Banks-Regional: 2.78%
Banco De Galicia
y Buenos Aires, S.A., ADR 13,900 293,638
BancWest Corp. 3,900 163,069
Hibernia Corp., Class A 49,600 703,700
Huntington Bancshares, Inc. 9,900 293,287
Pacific Century Financial Corp. 22,700 517,844
Peoples Heritage Financial
Group, Inc. 15,100 286,900
Provident Financial Group, Inc. 2,000 85,875
SouthTrust Corp. 10,900 436,000
-----------------
2,780,313
-----------------
Beverages: 0.52%
Anheuser-Busch Companies, Inc. 6,200 445,238
* Robert Mondavi Corp., Class A 2,100 75,862
-----------------
521,100
-----------------
Biotechnology: 0.35%
* IDEC Pharmaceuticals Corp. 3,000 348,563
-----------------
Broadcasting: 0.46%
*Grupo Televisa, S.A., ADR 10,800 459,000
-----------------
Building Materials: 0.15%
Armstrong World Industries, Inc. 4,100 153,238
-----------------
Cellular and Wireless
Telecommunications: 0.02%
* U.S. Cellular Corp. 200 17,700
-----------------
Chemicals: 1.70%
Akzo Nobel NV, ADR 25,600 1,104,000
Engelhard Corp. 12,600 222,075
Imperial Chemical Industries
Plc., ADR 2,600 104,488
Monsanto Co. 6,800 261,800
-----------------
1,692,363
-----------------
Chemicals-Specialty: 2.23%
A. Schulman, Inc. 26,200 407,738
Albemarle Corp. 9,400 166,850
H.B. Fuller Co. 11,200 613,200
Lubrizol Corp. 29,700 761,063
M.A. Hanna Co. 25,900 276,806
-----------------
2,225,657
-----------------
Communication Equipment: 2.12%
* Commscope, Inc. 11,200 446,600
Inter-Tel Inc., Class A 30,600 485,775
Nokia Corp., ADR 1,600 184,900
Scientific-Atlanta, Inc. 13,100 749,975
* Tekelec 19,600 248,675
-----------------
2,115,925
-----------------
Computer Services: 1.69%
* BEA Systems, Inc. 11,800 538,375
* Concord EFS, Inc. 20,200 546,662
Paychex, Inc. 15,300 602,438
-----------------
1,687,475
-----------------
Computer Software: 2.74%
* Compuware Corp. 21,700 603,531
* I2 Technologies, Inc. 12,600 994,612
* J.D.Edwards & Co., Inc. 21,300 509,869
* Novell, Inc. 24,100 483,506
* Sterling Software, Inc. 6,700 146,981
-----------------
2,738,499
-----------------
Computers-Networking: 0.91%
* 3Com Corp. 31,200 904,800
-----------------
Construction-Cement and
Aggregates: 0.27%
Lafarge Corp. 9,100 270,156
-----------------
Consumer-Jewelry, Novelty and
Gifts: 0.37%
* Fossil, Inc. 8,800 243,100
Lancaster Colony Corp. 3,600 125,775
-----------------
368,875
-----------------
Consumer Finance: 2.07%
* Americredit Corp. 5,400 93,825
C.I.T. Group, Inc., Class A 27,700 661,338
MBNA Corp. 19,500 538,688
Newcourt Credit Group, Inc. 10,200 167,662
PMI Group, Inc. 11,600 601,750
-----------------
2,063,263
-----------------
4
<PAGE>
Number Value
of Shares (Note 3)
- --------------------------------------------------------------------------------
Containers-Metal and Glass: 0.94%
Ball Corp. 16,300 $ 657,094
Crown Cork & Seal Co., Inc. 11,900 284,856
-----------------
941,950
-----------------
Distributors-Food and Health: 1.38%
Bindley Western Industries, Inc. 26,800 336,675
* PSS World Medical, Inc. 48,700 377,425
Supervalu, Inc. 31,689 665,469
-----------------
1,379,569
-----------------
Drugs: 0.50%
Jones Pharma, Inc. 2,800 86,800
Smithkline Beecham Plc., ADR 6,500 416,000
-----------------
502,800
-----------------
Electric Utilities: 5.19%
Cinergy Corp. 10,600 299,450
CMS Energy Corp. 7,500 276,562
Constellation Energy Group 2,700 82,856
DTE Energy Co. 2,900 96,244
Endesa S.A., ADR 5,600 111,650
FirstEnergy Corp. 15,800 411,788
GPU, Inc. 12,400 420,825
PG&E Corp. 11,400 261,488
Public Service Enterprise Group, Inc. 44,700 1,768,444
Reliant Energy, Inc. 16,200 441,450
Texas Utilities Co. 3,500 135,625
Unicom Corp. 11,300 432,931
Utilicorp United, Inc. 20,350 440,069
-----------------
5,179,382
-----------------
Electrical Equipment: 1.73%
General Electric Co. 3,700 501,581
Rockwell International Corp. 13,600 658,750
* Sensormatic Electronics Corp. 33,300 503,663
* Vishay InterTechnology Inc. 2,550 62,316
-----------------
1,726,310
-----------------
Electronics-Defense: 0.38%
Raytheon Co., Class B 13,000 378,625
-----------------
Electronics and Instrumentation: 0.55%
Tektronix, Inc. 16,400 553,500
-----------------
Engineering and Construction: 1.14%
Fluor Corp. 9,800 390,775
Foster Wheeler Corp. 50,900 572,625
McDermott International, Inc. 9,400 170,375
-----------------
1,133,775
-----------------
Financial-Diversified: 5.45%
AMBAC Financial Group, Inc. 11,500 687,125
Apartment Investment &
Management Co., Class A 6,900 259,612
Arden Realty, Inc. 36,000 724,500
Avalon Bay Communities, Inc. 8,300 268,194
AXA Financial, Inc. 2,000 64,125
Brandywine Realty Trust 31,100 522,869
CarrAmerica Realty Corp. 15,500 344,875
Crescent Real Estate Equities, Inc. 5,800 96,788
Developers Diversified Realty Corp. 8,300 118,275
Equity Residential Properties Trust 400 16,725
Federal Realty Investment Trust 4,900 89,119
FelCor Lodging Trust, Inc. 20,000 340,000
Macerich Co. 2,400 48,000
Meristar Hospitality Corp. 7,100 114,044
Mutual Risk Management Ltd. 9,500 143,688
Prologis Trust 10,800 208,575
Public Storage, Inc. 33,400 805,775
Reckson Associates Realty Corp. 17,400 321,900
Rouse Co. 7,800 172,575
Taubman Centers, Inc. 300 3,394
Trinet Corp. Realty Trust, Inc. 2,300 53,044
* United Rentals, Inc. 2,100 39,112
-----------------
5,442,314
-----------------
Foods: 1.54%
Earthgrains Co. 9,400 214,437
IBP, Inc. 50,400 1,206,450
* International Home Foods, Inc. 1,500 28,687
Sara Lee Corp. 3,200 86,600
-----------------
1,536,174
-----------------
Footwear: 0.04%
Wolverine World Wide, Inc. 3,700 37,925
-----------------
Gold and Precious Metal Mining: 0.02%
Homestake Mining Co. 2,000 16,750
-----------------
Health Care-Diversified: 0.83%
Johnson & Johnson 4,300 450,425
Mallinckrodt Group, Inc. 11,200 380,100
-----------------
830,525
-----------------
Health Care-Medical Products
and Supplies: 0.05%
* Haemonetics Corp. 300 5,606
* ResMed, Inc. 1,200 41,550
-----------------
47,156
-----------------
Health Care-Special Services: 0.46%
Omnicare, Inc. 49,300 456,025
-----------------
Homebuilding: 0.26%
Centex Corp. 9,800 262,763
-----------------
Hospitals and Managed Care: 1.31%
Aetna, Inc. 6,300 316,575
* Beverly Enterprises, Inc. 29,300 115,369
* Coventry Health Care Inc. 2,400 13,800
* Tenet Healthcare Corp. 7,100 138,006
* Trigon Healthcare, Inc., Class A 3,900 110,662
United Healthcare Corp. 11,800 609,912
-----------------
1,304,324
-----------------
Hotels and Gaming: 1.96%
Carnival Corp. 1,800 80,100
* Extended Stay America, Inc. 62,700 521,194
* Harrahs Entertainment, Inc. 24,200 700,287
* Mandalay Resort Group 20,100 374,363
Royal Caribbean Cruises Ltd. 5,400 286,537
-----------------
1,962,481
-----------------
Household Furnishings: 1.48%
Springs Industries, Inc., Class A 8,100 322,481
Whirlpool Corp. 16,600 1,156,812
-----------------
1,479,293
-----------------
5
<PAGE>
Number Value
of Shares (Note 3)
- --------------------------------------------------------------------------------
Housewares and Household Products: 0.46%
Church & Dwight Co., Inc. 4,000 $ 104,250
Tupperware Corp. 17,900 354,644
-----------------
458,894
-----------------
Insurance-Life and Health: 0.65%
AFLAC, Inc. 7,600 388,550
Conseco, Inc. 9,300 226,106
Torchmark Corp. 1,000 31,188
-----------------
645,844
-----------------
Insurance-Multi-Line: 1.00%
Hartford Financial Services
Group, Inc. 7,000 362,687
Loews Corp. 6,200 439,425
Nationwide Financial Services
Inc., Class A 5,300 200,737
-----------------
1,002,849
-----------------
Insurance-Property and Casualty: 5.11%
Allmerica Financial Corp. 200 11,438
American Financial Group, Inc. 14,200 420,675
Capital RE Corp. 2,300 32,488
Cincinnati Financial Corp. 7,300 261,431
Enhance Financial Services
Group, Inc. 26,500 483,625
Financial Security Assurance
Holdings Ltd. 27,600 1,555,950
Fremont General Corp. 2,800 24,150
HCC Insurance Holdings, Inc. 20,400 229,500
MGIC Investment Corp. 4,200 250,950
Radian Group, Inc. 22,066 1,165,361
St. Paul Companies, Inc. 20,900 668,800
-----------------
5,104,368
-----------------
Investment Banking and Brokerage: 1.53%
A.G. Edwards, Inc. 36,200 1,088,263
Lehman Brothers Holdings Inc. 6,000 442,125
-----------------
1,530,388
-----------------
Iron and Steel: 0.73%
Pohang Iron & Steel Co., Ltd., ADR 11,800 393,825
Worthington Industries, Inc. 20,400 339,150
-----------------
732,975
-----------------
Leisure Time-Products: 0.59%
Brunswick Corp. 26,100 590,512
-----------------
Machinery: 1.39%
Manitowoc Co. 6,300 188,212
* Mueller Industries, Inc. 20,800 664,300
NACCO Industries, Inc., Class A 1,600 74,200
Tecumseh Products Co., Class A 9,600 460,200
-----------------
1,386,912
-----------------
Manufacturing-Diversified: 2.13%
Canadian Pacific Ltd. 34,800 819,975
ITT Industries, Inc. 11,800 403,412
National Service Industries, Inc. 10,000 322,500
Trinity Industries, Inc. 11,900 354,769
U.S. Industries, Inc. 8,200 121,462
United Dominion Industries, Ltd. 5,100 108,056
-----------------
2,130,174
-----------------
Manufacturing-Specialized: 0.77%
AptarGroup, Inc. 4,300 115,562
Briggs & Stratton Corp. 7,600 444,125
Pall Corp. 9,600 210,600
-----------------
770,287
-----------------
Metals and Mining: 0.03%
ASARCO, Inc. 1,000 29,500
-----------------
Natural Gas: 1.82%
Equitable Resources, Inc. 28,300 1,032,950
Keyspan Corp. 4,700 132,187
Questar Corp. 32,800 590,400
UGI Corp. 2,600 62,400
-----------------
1,817,937
-----------------
Office Equipment and Supplies: 0.34%
Herman Miller, Inc. 1,200 26,025
Wallace Computer Services, Inc. 14,000 309,750
-----------------
335,775
-----------------
Oil-Intergrated: 2.51%
Amerada Hess Corp. 19,600 1,124,550
Occidental Petroleum Corp. 28,700 654,719
Shell Transport and Trading
Co., Plc., ADR 5,800 266,075
USX-Marathon Group, Inc. 11,400 332,025
YPF Sociedad Anonima S.A., ADR 3,400 131,963
-----------------
2,509,332
-----------------
Oil and Gas-Drilling and
Equipment: 0.13%
ENSCO International, Inc. 6,500 125,938
-----------------
Oil and Gas-Exploration and
Production: 1.05%
Apache Corp. 17,000 663,000
Kerr-Mcgee Corp. 4,700 252,625
* Pioneer Natural Resources Co. 14,000 131,250
-----------------
1,046,875
-----------------
Paper and Forest Products: 2.71%
Boise Cascade Corp. 13,300 473,812
Champion International Corp. 1,900 109,844
Georgia-Pacific Group 6,000 238,125
International Paper Co. 2,200 115,775
Louisiana-Pacific Corp. 48,500 615,344
Potlatch Corp. 10,700 451,406
Westvaco Corp. 13,700 406,719
Weyerhaeuser Co. 3,200 191,000
Willamette Industries, Inc. 2,500 103,906
-----------------
2,705,931
-----------------
Personal Care: 0.06%
Alberto-Culver Co., Class B 2,400 56,550
-----------------
Photography and Imaging: 1.30%
Ikon Office Solutions, Inc. 31,400 215,875
* Imation Corp. 18,400 564,650
* Lason, Inc. 12,700 471,884
* Zebra Technologies Corp., Class A 800 43,500
-----------------
1,295,909
-----------------
6
<PAGE>
Number Value
of Shares (Note 3)
- --------------------------------------------------------------------------------
Publishing: 1.82%
Dow Jones & Co., Inc. 7,900 $ 485,850
Gannett Co. 1,200 92,550
Knight-Ridder, Inc. 7,400 469,900
Tribune Co. 12,900 774,000
-----------------
1,822,300
-----------------
Railroads: 0.90%
Burlington Northern Santa Fe Corp. 15,600 497,250
Canadian National Railway Co. 12,000 366,000
Union Pacific Corp. 600 33,450
-----------------
896,700
-----------------
Restaurants: 1.18%
Applebees International, Inc. 4,500 129,656
Bob Evans Farms, Inc. 4,300 59,125
* Brinker International, Inc. 31,000 722,688
Darden Restaurants, Inc. 13,300 253,531
Ruby Tuesday, Inc. 800 15,250
-----------------
1,180,250
-----------------
Retail: 2.36%
* BJ's Wholesale Club, Inc. 9,300 286,556
* Dollar Tree Stores, Inc. 9,500 413,844
* Federated Department Stores, Inc. 11,100 473,831
* K mart Corp. 22,700 228,419
Ross Stores, Inc. 9,000 185,625
* Shopko Stores, Inc. 3,500 87,719
Wal-Mart Stores, Inc. 12,000 680,250
-----------------
2,356,244
-----------------
Retail-Apparel: 1.27%
* American Eagle Outfitters, Inc. 10,400 445,250
* Charming Shoppes, Inc. 5,900 29,316
* Mens Wearhouse, Inc. 24,400 535,275
Talbots, Inc. 2,200 103,537
* Venator Group, Inc. 22,200 155,400
-----------------
1,268,778
-----------------
Retail-Building Supplies: 0.07%
Hughes Supply, Inc. 3,100 67,231
-----------------
Retail-Computers and Electronics: 0.66%
* Tech Data Corp. 35,100 660,319
-----------------
Retail-Drug Stores: 0.08%
Longs Drug Stores Corp. 3,000 81,750
-----------------
Retail-Food Chains: 0.18%
Ruddick Corp. 10,300 175,744
-----------------
Retail-Home Shopping: 0.69%
* Micro Warehouse, Inc. 56,700 687,487
-----------------
Retail-Specialty: 2.25%
Caseys General Stores, Inc. 2,700 34,762
PEP Boys (Manny, Moe & Jack) 17,500 218,750
* PetSmart, Inc. 62,900 243,737
Tiffany & Co. 15,100 898,450
* Zale Corp. 20,400 854,250
-----------------
2,249,949
-----------------
Savings and Loan Companies: 0.86%
Astoria Financial Corp. 7,800 280,800
Charter One Financial, Inc. 22,770 559,288
Golden West Financial Corp. 200 22,350
-----------------
862,438
-----------------
Semiconductor Equipment: 1.22%
* Cypress Semiconductor Corp. 28,800 736,200
* Teradyne, Inc. 12,500 481,250
-----------------
1,217,450
-----------------
Service-Commercial and
Consumer: 0.75%
* Navigant Consulting, Inc. 13,100 374,169
Stewart Enterprises Inc., Class A 78,200 371,450
-----------------
745,619
-----------------
Service-Employment: 0.68%
* Interim Services, Inc. 22,100 363,269
* Modis Professional Services, Inc. 28,100 314,369
-----------------
677,638
-----------------
Shipping: 0.48%
Alexander & Baldwin, Inc. 19,800 475,200
-----------------
Specialty Printing: 0.42%
Banta Corp. 14,600 330,325
Moore Corp., Ltd. 10,100 84,587
-----------------
414,912
-----------------
Telephone: 2.66%
Compania Anonima Nacional
Telefonos de Venezuela, ADR 14,000 361,375
PT Telekomunikasi
Indonesia, ADR 5,616 51,597
* Telefonica S.A., ADR 15,400 769,037
Telefonos de Mexico S.A., ADR 16,400 1,402,200
Telephone & Data Systems, Inc. 600 69,150
-----------------
2,653,359
-----------------
Textiles-Apparel and
Specialty: 0.20%
Russell Corp. 12,300 186,806
Warnaco Group, Inc., Class A 1,100 15,675
-----------------
202,481
-----------------
Truckers: 1.17%
USFreightways Corp. 25,400 1,150,937
Werner Enterprises, Inc. 1,300 20,719
-----------------
1,171,656
-----------------
Trucks and Parts: 0.92%
Cummins Engine Company, Inc. 2,300 116,581
PACCAR, Inc. 17,100 805,838
-----------------
922,419
-----------------
Waste Management: 0.40%
* Safety-Kleen Corp. 34,800 398,025
-----------------
Total Common Stocks
(Cost $93,942,429) 93,240,445
-----------------
7
<PAGE>
Principal Value
Amount (Note 3)
- --------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS: 0.20%
United States Treasury Bills: 0.20%
4.52%, 12/16/99 $ 200,000 $ 198,870
-----------------
Total Short-Term Obligations
(Cost $198,870) 198,870
-----------------
REPURCHASE AGREEMENTS: 7.68%
With Morgan Stanley & Co., Inc.,
(dated 10/29/99), 5.26%, due 11/1/99
(Repurchase proceeds $4,668,045);
collateralized by: $4,742,826
Federal National Mortgage
Association Bonds, 7.00%,
due 12/1/2008
(Market value $4,759,755) 4,666,000 4,666,000
-----------------
With Prudential Securities Inc.,
(dated 10/29/99), 5.23%, due 11/1/99
(Repurchase proceeds $3,001,307);
collateralized by: $3,090,000
Federal Home Loan Bank
Variable Rate Bonds, 5.45%,
due 1/28/2004
(Market value $3,063,426) 3,000,000 3,000,000
-----------------
Total Repurchase Agreements
(Cost $7,666,000) 7,666,000
-----------------
Total Investments
(Cost $101,807,299) 101.26% 101,105,315
Other Assets 102.47 102,320,728
--------- -----------------
Total Assets 203.73 203,426,043
--------- -----------------
Securities Sold Short
(Proceeds $99,394,000) (92.67) (92,529,848)
Other Liabilities (11.06) (11,045,688)
--------- -----------------
Total Liabilities (103.73) (103,575,536)
--------- -----------------
Net Assets 100.00% $ 99,850,507
--------- -----------------
* Non-income producing security.
For Federal income tax purposes, the tax basis of investments owned at October
31, 1999 was $103,533,872 and net unrealized depreciation on investments
consisted of:
Gross unrealized appreciation $ 4,556,605
Gross unrealized depreciation (6,985,162)
-----------------
Net unrealized depreciation $ (2,428,557)
-----------------
Number Value
of Shares (Note 3)
- --------------------------------------------------------------------------------
SECURITIES SOLD SHORT
COMMON STOCKS: 92.67%
Aerospace and Defense: 0.58%
Alliant Techsystems, Inc. 6,200 $ 381,300
Lockheed Martin Corp. 9,100 182,000
Precision Castparts Corp. 400 11,800
-----------------
575,100
-----------------
Air Freight: 1.27%
Air Express International Corp. 10,500 279,563
Airborne Freight Corp. 14,600 313,900
Atlas Air, Inc. 4,700 126,900
C.H. Robinson Worldwide, Inc. 8,000 270,500
FDX Corp. 6,400 275,600
-----------------
1,266,463
-----------------
Airlines: 1.25%
AMR Corp. 13,400 850,900
US Airways Group, Inc. 14,100 394,800
-----------------
1,245,700
-----------------
Automotive Parts and Equipment: 2.22%
Dana Corp. 12,200 360,662
Federal-Mogul Corp. 11,700 293,963
Gentex Corp. 22,200 381,562
Goodyear Tire & Rubber Co. 23,200 958,450
Magna International Inc., Class A 300 13,594
Mascotech, Inc. 14,000 203,875
-----------------
2,212,106
-----------------
Banks-Money Center: 0.00%
First Union Corp. 100 4,269
-----------------
Banks-Regional: 3.67%
Associated Banc Corp. 7,600 292,363
Banco Frances Del Rio S.A., ADR 26,600 581,875
Centura Banks, Inc. 5,900 310,856
Commerce Bancorp, Inc. 4,100 183,731
National Commerce Bancorp 11,900 297,500
Republic New York Corp. 6,100 385,444
Synovus Financial Corp. 300 6,431
TCF Financial Corp. 600 17,700
Union Planters Corp. 12,314 547,973
UST Corp. 17,000 527,000
Wilmington Trust Corp. 4,000 217,000
Zions Bancorporation 5,100 300,581
-----------------
3,668,454
-----------------
Beverages: 0.70%
Adolph Coors Co., Class B 1,300 72,150
Brown-Forman Corp., Class B 6,900 465,750
Coca-Cola Co. 100 5,900
Panamerican Beverages, Inc.,
Class A 9,600 154,200
-----------------
698,000
-----------------
Biotechnology: 0.82%
Immunex Corp. 13,000 819,000
-----------------
Broadcasting: 0.76%
News Corp. Ltd., ADR 9,700 287,362
Westwood One, Inc. 10,150 468,169
-----------------
755,531
-----------------
8
<PAGE>
Number Value
of Shares (Note 3)
- --------------------------------------------------------------------------------
Building Materials: 0.28%
USG Corp. 5,700 $ 282,506
-----------------
Chemicals: 0.71%
Cabot Corp. 12,300 229,088
Geon Co. 3,900 102,375
Lyondell Chemical Co. 20,000 242,500
Rhone-Poulenc S.A., ADR 2,400 133,200
-----------------
707,163
-----------------
Chemicals-Specialty: 3.47%
Agrium, Inc. 22,700 191,531
Cytec Industries, Inc. 4,100 105,831
Ecolab, Inc. 7,100 240,069
Hercules, Inc. 7,914 190,431
International Flavors &
Fragrances Inc. 10,100 386,325
MacDermid, Inc. 16,900 572,487
Millennium Chemicals, Inc. 30,700 567,950
Omnova Solutions, Inc. 2,000 14,000
Pittway Corp., Class A 4,200 138,600
Potash Corp., Saskatchewan 23,600 1,042,825
Sigma-Aldrich Corp. 500 14,250
-----------------
3,464,299
-----------------
Communication Equipment: 1.25%
C-Cube Microsystems, Inc. 10,600 471,700
ECI Telecommunications Ltd. 7,200 209,700
L.M. Ericsson Telephone Co.,
Class B, ADR 13,300 568,575
-----------------
1,249,975
-----------------
Computer Hardware: 1.45%
EMC Corp. 6,200 452,600
International Business Machines Corp. 3,800 373,825
NCR Corp. 9,000 298,125
Storage Technology Corp. 20,700 326,025
-----------------
1,450,575
-----------------
Computer Services: 0.50%
Cambridge Technology Partners, Inc. 5,900 65,269
Computer Horizons Corp. 13,200 146,850
Equifax, Inc. 2,900 78,300
National Data Corp. 7,000 168,000
Sykes Enterprises, Inc. 1,300 40,137
-----------------
498,556
-----------------
Computer Software: 2.81%
America Online, Inc. 2,000 259,375
American Management Systems Inc. 2,300 59,513
Avant Corp. 2,000 25,750
Cognos, Inc. 24,300 689,513
Jack Henry & Associates, Inc. 10,000 363,750
Legato Systems, Inc. 8,400 451,500
Macromedia, Inc. 2,500 161,094
Sapient Corp. 4,800 613,800
Unisys Corp. 7,300 177,025
-----------------
2,801,320
-----------------
Computers-Networking: 1.16%
Cisco Systems, Inc. 1,300 96,200
CMGI, Inc. 6,700 733,231
Newbridge Networks Corp. 16,700 329,825
-----------------
1,159,256
-----------------
Construction-Cement and
Aggregates: 1.15%
Southdown, Inc. 4,600 222,237
Vulcan Materials Co. 22,400 925,400
-----------------
1,147,637
-----------------
Consumer-Jewelry, Novelty
and Gifts: 0.39%
Action Performance Companies, Inc. 6,000 122,063
Department 56, Inc., Class A 3,400 64,600
Jostens, Inc. 9,800 207,025
-----------------
393,688
-----------------
Consumer Finance: 0.70%
Countrywide Credit Industries, Inc. 14,300 485,306
Metris Companies, Inc. 4,400 151,525
White Mountains Insurance Group Inc. 500 63,250
-----------------
700,081
-----------------
Containers-Metal and
Glass: 0.73%
Owens-Illinois, Inc. 30,300 725,306
-----------------
Containers and Packages-
Paper: 0.15%
Sonoco Products Co. 6,100 146,400
-----------------
Distributors-Food and
Health: 0.36%
Bergen Brunswig Corp., Class A 27,100 193,088
McKesson HBOC, Inc. 8,400 168,525
-----------------
361,613
-----------------
Drugs: 0.06%
ICN Pharmaceuticals, Inc. 200 4,600
Mylan Laboratories, Inc. 3,300 59,194
-----------------
63,794
-----------------
Electric Utilities: 5.00%
Ameren Corp. 7,100 268,469
American Electric Power Co., Inc. 6,600 227,700
Avista Corp. 24,700 444,600
Carolina Power & Light Co. 700 24,150
DQE, Inc. 10,100 403,369
Enersis S.A., ADR 4,200 94,500
IPALCO Enterprises, Inc. 6,400 130,800
Kansas City Power & Light Co. 10,800 264,600
LG&E Energy Corp. 600 13,200
Montana Power Co. 24,900 708,094
New Century Energies, Inc. 8,200 267,012
New England Electric System 10,300 536,244
OGE Energy Corp. 1,700 38,569
PECO Energy Co. 15,900 607,181
SCANA Corp. 4,900 121,888
TECO Energy, Inc. 16,600 366,238
Western Resources, Inc. 20,400 470,475
Wisconsin Energy Corp. 31 694
-----------------
4,987,783
-----------------
Electrical Equipment: 1.03%
Hubbell Inc., Class B 34,400 952,450
Thomas & Betts Corp. 1,700 76,287
-----------------
1,028,737
-----------------
9
<PAGE>
Number Value
of Shares (Note 3)
- --------------------------------------------------------------------------------
Electronics-Component
Distributor: 0.97%
Ingram Micro, Inc., Class A 17,800 $ 198,025
Koninklijke Phillips Electric,
N.V., ADR 1,200 124,725
Rambus, Inc. 2,600 175,825
Sandisk Corp. 3,300 200,063
W.W. Grainger, Inc. 6,400 271,200
-----------------
969,838
-----------------
Electronics-Defense: 0.70%
General Motors Corp., Class H 9,600 699,000
-----------------
Engineering and Construction: 0.40%
Granite Construction, Inc. 11,100 229,631
Mastec, Inc. 5,300 173,575
-----------------
403,206
-----------------
Entertainment: 0.65%
Seagram Co., Ltd. 13,200 651,750
-----------------
Financial-Diversified: 5.01%
BRE Properties, Inc., Class A 7,900 179,231
Budget Group, Inc., Class A 16,900 118,300
Cousins Properties, Inc. 11,800 373,913
Federal National Mortgage
Association 4,200 297,150
Hertz Corp., Class A 500 21,688
Host Marriott Corp. 29,000 261,000
Indymac Mortgage Holdings, Inc. 54,300 756,806
JDN Realty Corp. 2,500 47,656
Manufactured Home
Communities, Inc. 4,800 111,900
Meditrust Companies, Inc. 65,400 527,287
New Plan Excel Realty Trust, Inc. 5,300 91,756
Simon Property Group, Inc. 5,400 124,537
SLM Holding Corp. 19,000 929,812
Smith (Charles E.) Residential
Realty, Inc. 700 23,800
Starwood Hotels &
Resorts Worldwide, Inc. 15,800 362,412
Sun Communities, Inc. 2,300 73,312
U S Trust Corp. 8,300 673,337
Vornado Realty Trust 1,000 31,687
-----------------
5,005,584
-----------------
Foods: 1.89%
Chiquita Brands International, Inc. 11,200 53,200
Dole Food Co., Inc. 4,000 71,750
Flowers Industries, Inc. 5,900 99,562
Hershey Foods Corp. 13,000 656,500
Nabisco Holdings Corp., Class A 10,800 403,650
Quaker Oats Co. 4,500 315,000
Rexall Sundown, Inc. 27,400 289,412
-----------------
1,889,074
-----------------
Footwear: 0.01%
Nike, Inc., Class B 214 12,078
-----------------
Gold and Precious Metal Mining: 0.02%
Barrick Gold Corp. 1,000 18,313
Placer Dome, Inc. 300 3,637
-----------------
21,950
-----------------
Hardware and Tools: 0.01%
Stanley Works 400 11,100
-----------------
Health Care-Diversified: 0.58%
American Home Products Corp. 6,628 346,313
Medicis Pharmaceutical Corp.,
Class A 7,600 231,800
-----------------
578,113
-----------------
Health Care-Medical Products
and Supplies: 1.26%
Bausch & Lomb, Inc. 6,200 334,800
Beckman Coulter, Inc. 2,800 128,800
Medtronic, Inc. 13,300 460,513
Varian Medical Sytems, Inc. 15,800 332,788
-----------------
1,256,901
-----------------
Health Care-Special Services: 0.30%
Lincare Holdings, Inc. 2,700 75,937
Orthodontic Centers of
America, Inc. 16,300 224,125
-----------------
300,062
-----------------
Homebuilding: 0.44%
Champion Enterprises, Inc. 11,500 104,938
Fleetwood Enterprises, Inc. 14,300 311,919
Oakwood Homes Corp. 8,400 24,675
-----------------
441,532
-----------------
Hospitals and Managed Care: 0.79%
Wellpoint Health Networks, Inc.,
Class A 13,600 788,800
-----------------
Hotels and Gaming: 1.59%
Anchor Gaming 6,600 402,600
Four Season Hotels, Inc. 10,900 454,394
GTech Holdings Corp. 500 10,063
Hilton Hotels Corp. 42,700 394,975
Marriott International, Inc., Class A 4,200 141,488
Vail Resorts, Inc. 8,100 180,225
-----------------
1,583,745
-----------------
Household Furnishings: 0.75%
Ethan Allen Interiors, Inc. 7,900 280,944
Maytag Corp. 11,700 468,731
-----------------
749,675
-----------------
Housewares and Household
Products: 0.90%
Dial Corp. 1,900 44,412
Estee Lauder Companies, Inc.,
Class A 2,600 121,225
Fort James Corp. 10,700 281,544
Newell Rubbermaid, Inc. 13,131 454,661
-----------------
901,842
-----------------
Insurance-Life and Health: 0.81%
Lincoln National Corp. 11,700 539,662
Protective Life Corp. 7,300 264,169
-----------------
803,831
-----------------
Insurance-Multi-Line: 0.29%
CNA Financial Corp. 7,700 286,825
-----------------
10
<PAGE>
Number Value
of Shares (Note 3)
- --------------------------------------------------------------------------------
Insurance-Property and Casualty: 6.47%
First American Financial Corp. 21,300 $ 315,506
Horace Mann Educators Corp. 16,900 476,369
HSB Group, Inc. 13,800 527,850
IPC Holdings Ltd. 42,200 717,400
LandAmerica Financial Group 17,200 319,275
Mercury General Corp. 16,000 451,000
Ohio Casualty Corp. 48,200 804,338
Safeco Corp. 38,800 1,067,000
Selective Insurance Group, Inc. 16,300 304,606
Twentieth Century Industries 6,200 123,612
Unitrin, Inc. 11,200 419,300
W.R. Berkley Corp. 40,600 931,263
-----------------
6,457,519
-----------------
Insurance Brokers: 0.60%
Arthur J. Gallagher & Co. 5,900 305,325
E.W. Blanch Holdings, Inc. 4,600 297,850
-----------------
603,175
-----------------
Investment Companies: 0.26%
Allied Capital Corp. 12,900 258,806
-----------------
Iron and Steel: 1.50%
AK Steel Holding Corp. 23,700 410,306
Allegheny Teledyne, Inc. 11,400 173,138
Carpenter Technology Corp. 17,600 429,000
Corus Group Plc., ADR 15,300 295,481
LTV Corp. 33,300 120,713
Steel Dynamics, Inc. 4,700 64,331
-----------------
1,492,969
-----------------
Leisure Time-Products: 0.11%
Polaris Industries, Inc. 3,200 111,800
-----------------
Machinery: 3.11%
AGCO Corp. 2,300 24,725
Caterpillar, Inc. 7,800 430,950
Coflexip S.A., ADR 9,200 364,550
Deere & Co. 29,100 1,054,875
Kaydon Corp. 40,000 992,500
Lincoln Electric Holdings, Inc. 10,600 237,175
-----------------
3,104,775
-----------------
Manufacturing-Diversified: 2.34%
Ametek, Inc. 15,700 310,075
Carlisle Companies, Inc. 7,700 256,025
Crane Co. 2,200 44,963
Eaton Corp. 3,800 285,950
Hillenbrand Industries, Inc. 23,000 761,875
IDEX Corp. 14,300 352,138
Minnesota Mining &
Manufacturing Co. 100 9,506
Parker-Hannifin Corp. 5,500 251,969
Walter Industries, Inc. 5,500 64,625
-----------------
2,337,126
-----------------
Manufacturing-Specialized: 1.20%
Avery Dennison Corp. 4,900 306,250
Federal Signal Corp. 13,300 250,206
Roper Industries, Inc. 1,100 33,962
SPS Technologies, Inc. 1,700 52,700
Teleflex, Inc. 16,200 551,812
-----------------
1,194,930
-----------------
Metals and Mining: 0.25%
Phelps Dodge Corp. 4,500 253,687
-----------------
Natural Gas: 3.59%
Consolidated Natural Gas Co. 4,400 281,600
Eastern Enterprises 5,300 270,963
Enron Corp. 3,300 131,794
MCN Energy Group, Inc. 6,800 166,175
MDU Resources Group, Inc. 6,700 156,612
National Fuel Gas Co. 8,900 434,987
NICOR, Inc. 7,500 290,625
ONEOK, Inc. 25,500 744,281
Washington Gas Light Co. 16,000 435,000
Williams Companies, Inc. 17,800 667,500
-----------------
3,579,537
-----------------
Office Equipment and Supplies: 0.85%
HON Industries, Inc. 23,500 461,188
Pitney Bowes, Inc. 8,600 391,838
-----------------
853,026
-----------------
Oil and Gas-Drilling and Equipment: 1.48%
Global Industries Ltd. 29,100 232,800
Halliburton Co. 100 3,769
Helmerich & Payne, Inc. 18,100 431,006
Nabors Industries, Inc. 800 18,150
Petroleum Geo Services S.A., ADR 41,600 608,400
Stolt Comex Seaway S.A., ADR 17,400 185,963
-----------------
1,480,088
-----------------
Oil and Gas-Exploration and Production: 0.35%
Burlington Resources, Inc. 3,100 108,112
Unocal Corp. 7,042 242,949
-----------------
351,061
-----------------
Oil and Gas-Refining and Marketing: 1.63%
Ashland, Inc. 16,400 541,200
Sunoco, Inc. 36,900 890,212
Tosco Corp. 400 10,125
Valero Energy Corp. 10,300 189,262
-----------------
1,630,799
-----------------
Paper and Forest Products: 2.10%
Abitibi Consolidated, Inc. 17,400 209,888
Bowater, Inc. 18,800 987,000
Caraustar Industries, Inc. 9,600 231,600
Consolidated Papers, Inc. 8,800 275,550
Mead Corp. 8,000 288,000
Rayonier, Inc. 600 24,600
Wausau-Mosinee Paper Corp. 6,600 83,325
-----------------
2,099,963
-----------------
Power Producers-Independent: 0.49%
MidAmerican Energy Holdings Co. 14,500 487,563
-----------------
Publishing: 1.79%
Harcourt General, Inc. 10,400 400,400
Hollinger International, Inc.,
Class A 54,600 566,475
Houghton Mifflin Co. 9,800 415,275
Readers Digest Association, Inc.,
Class A 7,500 241,875
Washington Post Co., Class B 300 159,619
-----------------
1,783,644
-----------------
11
<PAGE>
Number Value
of Shares (Note 3)
- --------------------------------------------------------------------------------
Railroads: 1.62%
CSX Corp. 14,600 $ 598,600
Norfolk Southern Corp. 25,400 620,712
Wisconsin Central
Transportation Corp. 28,400 394,050
-----------------
1,613,362
-----------------
Restaurants: 0.67%
CBRL Group, Inc. 19,500 260,813
McDonald's Corp. 10,000 412,500
-----------------
673,313
-----------------
Retail: 2.93%
Ames Department Stores, Inc. 7,600 240,825
Consolidated Stores Corp. 44,000 805,750
Dillard's, Inc., Class A 32,800 619,100
J.C. Penney Company, Inc. 1,700 43,138
May Department Stores Co. 7,400 256,687
Neiman Marcus Group, Inc. 3,133 67,164
Nordstrom, Inc. 26,200 653,362
Sears Roebuck & Co. 8,600 242,413
-----------------
2,928,439
-----------------
Retail-Apparel: 0.74%
Intimate Brands Inc., Class A 7,665 314,265
Limited, Inc. 10,300 423,587
-----------------
737,852
-----------------
Retail-Building Supplies: 0.66%
Fastenal Co. 18,100 656,125
-----------------
Retail-Drug Stores: 0.30%
Rite Aid Corp. 34,000 297,500
-----------------
Retail-Food Chains: 0.39%
Albertsons, Inc. 4,092 148,591
Delhaize America, Inc., Class B 99 2,042
Hannaford Brothers Co. 3,400 238,213
-----------------
388,846
-----------------
Retail-Specialty: 1.15%
Claires Stores, Inc. 8,200 144,525
Payless Shoesource, Inc. 900 41,231
Rent-a-Center, Inc. 5,400 98,887
Staples, Inc. 21,200 470,375
Toys R Us, Inc. 28,000 395,500
-----------------
1,150,518
-----------------
Savings and Loan Companies: 0.15%
Peoples Bank 3,000 75,937
Washington Mutual, Inc. 2,000 71,875
-----------------
147,812
-----------------
Semiconductor Equipment: 0.83%
Intel Corp. 5,400 418,163
Texas Instruments, Inc. 4,621 414,735
-----------------
832,898
-----------------
Service-Advertising and Marketing: 0.08%
Harte-Hanks, Inc. 3,500 69,344
True North Communications, Inc. 200 8,062
-----------------
77,406
-----------------
Service-Commercial and Consumer: 1.15%
Cendant Corp. 4,400 72,600
Cerner Corp. 18,100 270,369
G & K Services, Inc., Class A 5,700 214,106
Laidlaw, Inc. 64,300 393,837
Pittston Brinks Group 10,100 193,794
-----------------
1,144,706
-----------------
Service-Employment: 0.32%
Manpower, Inc. 9,214 323,642
-----------------
Specialty Printing: 0.68%
Deluxe Corp. 24,100 680,825
-----------------
Telephone: 1.48%
Cable & Wireless HKT, ADR 7,600 173,375
Cincinnati Bell, Inc. 6,900 143,606
Compania de Telecom Chile, S.A., ADR 43,800 730,913
Deutsche Telekom AG, ADR 1,000 46,000
Telecom Argentina S.A., ADR 10,600 291,500
Teleglobe, Inc. 3,800 90,012
-----------------
1,475,406
-----------------
Textiles-Apparel and Specialty: 0.36%
Burlington Industries, Inc. 4,200 15,487
Nautica Enterprises, Inc. 3,900 58,744
Polo Ralph Lauren Corp., Class A 4,100 75,850
VF Corp. 7,000 210,437
-----------------
360,518
-----------------
Tobacco: 0.27%
Philip Morris Companies, Inc. 10,500 264,469
-----------------
Truckers: 0.27%
Ryder System, Inc. 12,700 271,462
-----------------
Trucks and Parts: 0.05%
New Holland NV 3,200 48,600
-----------------
Waste Management: 0.61%
Allied Waste Industries, Inc. 23,700 248,850
Superior Services, Inc. 9,400 252,038
Waste Management, Inc. 5,800 106,575
-----------------
607,463
-----------------
Total Securities Sold Short
(Proceeds $99,394,000) 92,529,848
-----------------
For Federal income tax purposes, the tax basis of proceeds for securities sold
short on October 31, 1999 was $97,640,102 and net unrealized appreciation on
securities sold short consisted of:
Gross unrealized appreciation $ 9,156,621
Gross unrealized depreciation (4,046,367)
-----------------
Net unrealized appreciation $ 5,110,254
-----------------
See notes to financial statements.
12
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<S> <C>
ASSETS
Investments, at value (identified cost $101,807,299) .................................. $ 101,105,315
Cash .................................................................................. 97,566
Deposits with broker for securities sold short ........................................ 99,394,000
Receivables:
Investments sold ...................................................................... 2,339,611
Capital shares sold ................................................................... 63,278
Dividends and interest ................................................................ 407,336
Prepaid expenses ...................................................................... 18,937
-------------
Total Assets .......................................................................... 203,426,043
-------------
LIABILITIES
Securities sold short, at value (proceeds $99,394,000) ................................ 92,529,848
Payables:
Investments purchased ................................................................. 9,634,334
Capital shares redeemed ............................................................... 963,200
Advisory fee .......................................................................... 137,872
Distribution fees ..................................................................... 57,056
Dividends on short sales .............................................................. 144,659
Accrued expenses and other payables ................................................... 108,567
-------------
Total liabilities ..................................................................... 103,575,536
-------------
Net Assets ............................................................................ $ 99,850,507
=============
Net assets consist of
Capital paid-in ....................................................................... $ 112,806,302
Undistributed net investment income ................................................... 1,486,836
Accumulated net realized loss on investments and futures .............................. (6,164,938)
Accumulated net realized loss on securities sold short ................................ (14,439,861)
Net unrealized depreciation on investments ............................................ (701,984)
Net unrealized appreciation on securities sold short .................................. 6,864,152
-------------
Net Assets ............................................................................ $ 99,850,507
=============
Class A Shares
Net asset value ("NAV") and redemption price per share ($20,648,327/1,933,601 shares) . $10.68
=============
Maximum public offering price per share-NAV/(1-maximum sales charge) ($10.68/.945) .... $11.30
=============
Class B Shares
Net asset value and offering price per share ($34,289,359/3,227,780 shares) ........... $10.62
=============
Redemption price per share ............................................................ *
=============
Class C Shares
Net asset value and offering price per share ($25,364,125/2,396,014 shares) ........... $10.59
=============
Redemption price per share ............................................................ *
=============
Class I Shares
Net asset value, offering and redemption price per share ($19,548,696/1,839,898 shares) $10.62
=============
</TABLE>
* Varies by length of time shares are held. (Note 4b)
See notes to financial statements.
13
<PAGE>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME
Income
Dividends* ....................................................................... $ 1,983,172
Interest ......................................................................... 5,690,031
------------
Total income ..................................................................... 7,673,203
------------
Expenses (Note 3)
Advisory fees (Note 4) ........................................................... 1,990,121
Distribution fees, Class A (Note 4) .............................................. 90,653
Distribution fees, Class B (Note 4) .............................................. 420,905
Distribution fees, Class C (Note 4) .............................................. 417,221
Custodian fees ................................................................... 214,794
Transfer agent fees .............................................................. 139,611
Portfolio accounting fees ........................................................ 97,587
Registration fees ................................................................ 84,663
Professional fees ................................................................ 65,696
Reports to shareholders .......................................................... 52,946
Trustees' fees ................................................................... 21,950
Insurance ........................................................................ 18,762
Amortization of organization expenses (Note 3) ................................... 4,128
Miscellaneous .................................................................... 8,720
------------
Expenses before dividends on short sales ......................................... 3,627,757
Dividends on short sales ......................................................... 2,031,746
------------
Total expenses ................................................................... 5,659,503
------------
Net investment income ............................................................ 2,013,700
------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on
Investments ...................................................................... 14,947,631
Securities sold short ............................................................ (24,576,581)
Futures .......................................................................... 1,040,891
------------
Net realized loss ................................................................ (8,588,059)
------------
Increase (decrease) in unrealized appreciation on
Investments ...................................................................... (4,471,150)
Securities sold short ............................................................ 8,579,804
------------
Net change in unrealized appreciation ............................................ 4,108,654
------------
Net realized and unrealized loss on investments, securities sold short and futures (4,479,405)
------------
Net decrease in net assets resulting from operations ............................. $ (2,465,705)
============
</TABLE>
* Net of taxes withheld on foreign dividends of $12,918.
See notes to financial statements.
14
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED OCTOBER 31, 1999 AND FOR THE PERIOD MAY 1, 1998
(COMMENCEMENT OF OPERATIONS)
TO OCTOBER 31, 1998
<TABLE>
<CAPTION>
1999 1998
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income ............................................................. $ 2,013,700 $ 1,169,245
Net realized loss on investments, securities sold short and futures ............... (8,588,059) (12,057,271)
Net unrealized appreciation (depreciation) on investments and securities sold short 4,108,654 2,053,514
------------- -------------
Net decrease in net assets resulting from operations .............................. (2,465,705) (8,834,512)
------------- -------------
Dividends to shareholders from net investment income
Class A ........................................................................... (493,481) --
Class B ........................................................................... (368,614) --
Class C ........................................................................... (464,216) --
Class I ........................................................................... (329,267) --
------------- -------------
Total dividends to shareholders ................................................... (1,655,578) --
------------- -------------
Capital share transactions (Note 6)
Net proceeds from sale of shares
Class A ........................................................................... 13,984,222 49,826,479
Class B ........................................................................... 7,877,039 51,623,271
Class C ........................................................................... 5,033,700 64,615,080
Class I ........................................................................... 5,589,480 24,024,074
------------- -------------
32,484,441 190,088,904
------------- -------------
Net asset value of shares issued to shareholders in
reinvestment of dividends
Class A ........................................................................... 425,449 --
Class B ........................................................................... 255,754 --
Class C ........................................................................... 365,808 --
Class I ........................................................................... 326,358 --
------------- -------------
1,373,369 --
------------- -------------
Cost of shares redeemed
Class A ........................................................................... (32,084,881) (8,317,141)
Class B ........................................................................... (20,460,298) (1,267,242)
Class C ........................................................................... (35,257,389) (4,613,114)
Class I ........................................................................... (6,928,065) (2,212,282)
------------- -------------
(94,730,633) (16,409,779)
------------- -------------
Increase (decrease) in net assets derived from capital share transactions ......... (60,872,823) 173,679,125
------------- -------------
Net increase (decrease) in net assets ............................................. (64,994,106) 164,844,613
NET ASSETS
Beginning of year ................................................................. 164,844,613 --
------------- -------------
End of year ....................................................................... $ 99,850,507 $ 164,844,613
============= =============
Undistributed net investment income ............................................... $ 1,527,367 $ 1,169,245
============= =============
</TABLE>
See notes to financial statements.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
NOTE 1--ACQUISITION
On March 1, 1999, Phoenix Investment Partners, Ltd. ("Phoenix") completed the
acquisition of Zweig/Glaser Advisers, parent of Euclid Advisors LLC, the Fund's
investment manager (the "Manager"), and of Zweig Securities Corp., the Fund's
distributor (the Distributor"). As a result, Euclid Mutual Funds changed its
name to Phoenix-Euclid Funds and Euclid Market Neutral Fund changed its name to
Phoenix-Euclid Market Neutral Fund. In addition, Zweig/Glaser Advisers LLC has
succeeded Zweig/Glaser Advisers as parent of the Manager, Phoenix Equity
Planning Corporation ("PEPCO") has succeeded Zweig Securities Corp. as the
Distributor and PEPCO has succeeded State Street Bank & Trust Co. as the
Transfer Agent.
NOTE 2--ORGANIZATION
Phoenix-Euclid Funds (the "Trust"), organized as a Delaware business trust on
February 3, 1998, is registered under the Investment Company Act of 1940 (the
"Act") as a diversified, open-end management investment company. The Trust
presently consists of one investment portfolio ("Series"): Phoenix-Euclid Market
Neutral Fund (the "Fund"), which offers Class A, Class B, Class C and Class I
Shares. On April 22, 1998, the Trust sold $100,000 of shares of beneficial
interest of the Fund to Euclid Advisors LLC, the Fund's investment manager (the
"Manager"). The Fund commenced operations on May 1, 1998.
NOTE 3--SIGNIFICANT ACCOUNTING POLICIES
(a) General: Investment transactions and securities sold short are recorded on
trade date. Realized gains and losses on sales of investments and securities
sold short are determined on the identified cost basis for both financial
reporting and income tax purposes. Distributions to shareholders and dividend
income are recorded on the ex-dividend date. Interest income is recorded on the
accrual basis. Direct expenses are charged to each class and general expenses
are allocated in proportion to net assets. Organization expenses are amortized
on a straight-line basis over the first 60 months of operations of the Fund. In
the event that any of the initial shares of the Fund are redeemed during this
period, the Fund will be reimbursed by the Manager for any unamortized
organization expenses in the same proportion as the number of shares redeemed
bears to the number of initial shares outstanding at the time of redemption. On
February 22, 1999, the Manager redeemed all of the initial shares in the Fund
and reimbursed the Fund $55,323 representing the balance of the unamortized
organization expenses. The preparation of financial statements in accordance
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates.
(b) Portfolio Valuation: Stocks and futures are valued at the closing prices
reported on recognized securities exchanges or if no sale was reported, and for
unlisted securities, at the mean between the last-reported bid and asked prices.
Securities for which market quotations are not readily available (of which there
were none at October 31, 1999) are valued at fair value as determined by the
Board of Trustees. Short-term obligations having a remaining maturity of 60 days
or less are valued at amortized cost (which approximates market value).
(c) Futures Contracts and Option Accounting Principles: Initial margin deposits
on futures contracts are recorded as assets. The value of such contracts are
"marked to market" daily and changes are recognized as unrealized gains or
losses. Variation margin payments are recognized as assets or liabilities,
depending upon whether unrealized gains or losses are incurred. When a futures
contract is closed, the Fund realizes a gain or loss equal to the difference
between the proceeds from (or cost of) the closing transaction and its basis in
the contract. When the Fund writes an option, an amount equal to the premium
received is recorded as an asset and a corresponding liability. The liability is
subsequently "marked to market" daily. When a call option written is exercised,
the proceeds of sale of the underlying security are increased by the premium
originally received and the Fund realizes a gain or loss. When an option written
expires or the Fund enters into a closing purchase transaction, the liability is
extinguished and the Fund realizes a gain or loss.
(d) Short Sales: A short sale is a transaction in which the Fund sells a
security it does not own in anticipation of a decline in market price. To sell a
security short, the Fund must borrow the security. The Fund's obligation to
replace the security borrowed and sold short will be fully collateralized at all
times by the proceeds from the short sale retained by the broker and by cash and
securities deposited in a segregated account with the Fund's custodian. If the
price of the security sold short increases between the time of the short sale
and the time the Fund replaces the borrowed security, the Fund will realize a
loss, and if the price declines during the period, the Fund will realize a gain.
Any realized gain will be decreased, and any realized loss increased, by the
amount of transaction costs. Dividends paid by the Fund in connection with such
short sales are recorded as expenses. At October 31, 1999, the value of
securities sold short amounted to $92,529,848 against which collateral of
$200,300,445 was held. The collateral includes the deposits with broker for
securities sold short, the repurchase agreements, and the common stocks held
long, as shown in the Schedule of Investments and Securities Sold Short.
(e) Off-Balance-Sheet Risk, Repurchase Agreements and Derivatives: With respect
to repurchase agreements, losses may arise if the counterparty does not perform
under the contract or agreement. The Fund's investment manager monitors the
requirement that the market value of the securities used to collateralize a
repurchase agreement exceed the dollar amount of the counterparty's obligation
to
16
<PAGE>
repurchase. The Fund's use of futures contracts and options involves, to varying
degrees, elements of market risk in excess of the amount recognized in the
investment portfolio. These derivative financial instruments ("derivatives") are
used to adjust the risk and return characteristics of the Fund's portfolio.
Derivatives are not used for the purpose of leverage. The objective in buying or
selling a derivative instrument is to increase or decrease the Fund's exposure
to changing security prices or interest rates. If the Manager misjudges market
conditions or employs a strategy that does not correlate well with the Fund's
other investments; use of these derivatives could result in a loss, regardless
of the Manager's original intent to reduce risk.
(f) Federal Income Taxes: It is the intention of the Fund to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its net taxable income, including any net
realized gain on investments, to its shareholders; therefore, no provision for
federal income tax is required. At October 31, 1999 (the Fund's tax fiscal
year-end), the Fund had capital loss carryforwards of $9,389,382 and $7,745,316,
expiring October 31, 2006 and 2007, respectively, and is available to offset any
net capital gains subsequently realized, subject to certain limitations. During
the year ended October 31, 1999, ther Fund reclassified $40,531 from
undistributed net investment income to realized gains on investments.
(g) Dividends and Distributions to Shareholders: Dividends and distributions are
declared separately for each class of shares of the Fund. The character of
distributions made during the year from net investment income or net realized
gains might differ from their ultimate characterization for federal income tax
purposes due to differences in the recognition of income and expense items for
financial statement and federal income tax purposes.
NOTE 4--INVESTMENT ADVISORY FEES AND OTHER
TRANSACTIONS WITH AFFILIATES
(a) Investment Manager: The Fund's investments are managed by Euclid Advisors
LLC (the "Manager"), a wholly owned subsidiary of Zweig/Glaser Advisers LLC. The
Manager's investment advisory fee is based on the average daily net assets of
the Fund at the annual rate of 1.50%. The fees are accrued daily and paid
monthly. Investment advisory fees for the year ended October 31, 1999 aggregated
$1,990,121.
(b) Principal Distributor: PEPCO (the "Distributor") serves as principal
distributor of shares of the Fund. The Fund's Class A Shares are sold with an
initial sales charge, Class B Shares and Class C Shares are sold without an
initial sales charge, but bear higher expenses and are subject to a contingent
deferred sales charge, and Class I Shares are sold without a sales charge.
During the year ended October 31, 1999, the Distributor's share of the initial
and contingent deferred sales charges was $1,308 and $713,293, respectively.
Pursuant to a Rule 12b-1 plan of distribution, the Fund pays the Distributor a
combined service and distribution fee equal to an annual rate of 0.30% of
average daily net assets of Class A Shares, 1.00% for Class B Shares, and 1.00%
for Class C Shares. Class I Shares, which are available for purchase by
tax-exempt retirement plans of the Distributor and its affiliates and certain
institutional investors, do not have a Rule 12b-1 Plan.
During the year ended October 31, 1999, the Fund paid PXP Securities Corp.
(formerly Zweig Securities Corp.) brokerage commissions of $13,093 in connection
with portfolio transactions effected by it.
One of the Trustees and all of the officers of the Trust are also officers of
the Manager and/or the Distributor. .
NOTE 5--PURCHASES AND SALES OF INVESTMENTS
During the year ended October 31, 1999, purchase and sale transactions,
excluding repurchase agreements, short-term obligations held to maturity and
futures contracts, were:
Purchases $476,117,861
Sales $520,574,503
Short sales $454,406,223
Purchases to cover short sales $506,807,608
NOTE 6--CAPITAL SHARES
The Trust has unlimited authorized shares of beneficial interest, divided into
Series and issued in classes (see Note 2). Capital share transactions for the
year ended October 31, 1999 and for the period May 1, 1998 (commencement of
operations) to October 31, 1998 are set forth below.
<TABLE>
<CAPTION>
Class A Class B Class C Class I
----------------------- ------------------------ ------------------------ -----------------------
1999 1998 1999 1998 1999 1998 1999 1998
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sold 1,304,055 4,380,167 740,976 4,536,939 473,559 5,680,328 531,705 2,125,730
Issued in reinvestment
of dividends 38,748 -- 23,293 -- 33,377 -- 29,941 --
Redeemed (3,038,214) (751,155) (1,959,172) (114,256) (3,379,228) (412,022) (643,924) (203,554)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) (1,695,411) 3,629,012 (1,194,903) 4,422,683 (2,872,292) 5,268,306 (82,278) 1,922,176
========== ========== ========== ========== ========== ========== ========== ==========
</TABLE>
NOTE 7 - BORROWINGS
The Trust is a participant in a Liquidity Line of Credit with The Bank of New
York for $100,000,000. The Trust has not had to use the Line of Credit since it
became a participant on December 16, 1998. If a Series uses the Line of Credit,
it will be collateralized by that Series' portfolio.
17
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for each share of capital stock outstanding throughout the year
ended October 31, 1999 and the period May 1, 1998 (commencement of operations)
to October 31, 1998
<TABLE>
<CAPTION>
Class A Class B Class C Class I
----------------- ----------------- ----------------- -----------------
1999 1998 1999 1998 1999 1998 1999 1998
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year . $10.84 $11.34 $10.81 $11.34 $10.80 $11.34 $10.85 $11.34
------ ------ ------ ------ ------ ------ ------ ------
Net investment income .............. 0.26 0.09 0.15 0.06 0.19 0.06 0.28 0.14
Net realized and unrealized gains
(losses) ......................... (0.29) (0.59) (0.26) (0.59) (0.31) (0.60) (0.28) (0.63)
------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations ... (0.03) (0.50) (0.11) (0.53) (0.12) (0.54) -- (0.49)
Dividends from net investment income (0.13) -- (0.08) -- (0.09) -- (0.23) --
------ ------ ------ ------ ------ ------ ------ ------
Decrease in net asset value ........ (0.16) (0.50) (0.19) (0.53) (0.21) (0.54) (0.23) (0.49)
------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of year ....... $10.68 $10.84 $10.62 $10.81 $10.59 $10.80 $10.62 $10.85
====== ====== ====== ====== ====== ====== ====== ======
Total return *** ................... (0.40)% (4.41)%** (1.02)% (4.67)%** (1.12)% (4.76)%** (0.01)% (4.32)%**
Ratios to average net assets
Expenses (excluding dividends
on short sales)
after expense reimbursement ........ 2.34% 2.30%* 3.04% 3.00%* 3.04% 3.00%* 2.04% 2.00%*
Expenses (including dividends
on short sales)
after expense reimbursement ........ 3.88% 3.65%* 4.58% 4.35%* 4.58% 4.35%* 3.58% 3.35%*
Expenses (including dividends
on short sales)
before expense reimbursement ....... 3.88% 3.69%* 4.58% 4.39%* 4.58% 4.39%* 3.58% 3.39%*
Net investment income before
expense reimbursement .............. 1.94% 2.29%* 1.24% 1.59%* 1.24% 1.59%* 2.24% 2.59%*
Net investment income after
expense reimbursement .............. 1.94% 2.33%* 1.24% 1.63%* 1.24% 1.63%* 2.24% 2.63%*
Portfolio turnover rate ............ 453% 216% 453% 216% 453% 216% 453% 216%
Net assets, end of year
(in thousands) ................... $20,648 $39,331 $34,290 $47,794 $25,364 $56,874 $19,549 $20,846
</TABLE>
During 1998, the Manager voluntarily reimbursed each Class $.003 per share
(0.04% ratio of expenses to average net assets).
* Annualized
** Not annualized
*** Total return does not consider the effect of any initial or contingent
deferred sales charge.
18
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and
Board of Trustees of Phoenix-Euclid Market Neutral Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments and securities sold short, and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Phoenix-Euclid Market Neutral Fund (formerly Euclid Market Neutral Fund)
(the"Fund") at October 31, 1999, the results of its operations for the year then
ended, and the changes in its net assets and the financial highlights for each
of the periods presented, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
PricewaterhouseCoopers LLP
New York, New York
November 24, 1999
19
<PAGE>
SUPPLEMENTARY PROXY INFORMATION
A Special Meeting of Shareholders of Euclid Market Neutral Fund was held on
February 25, 1999 to approve a new investment management agreement with Euclid
Advisors LLC, to elect Trustees, and to ratify the selection of
PricewaterhouseCoopers LLP as independent accountants for the current fiscal
year.
The results of the voting on the three proposals were as follows:
<TABLE>
<CAPTION>
VOTES
--------------------------------------------------------------
Proposal For Against Abstained
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
New Investment Management Agreement 116,706,336 1,292,396 4,414,771
Election of Trustees
James Balog 117,769,542 0 4,644,299
Claire B. Benenson 117,755,155 0 4,658,686
S. Leland Dill 117,796,689 0 4,617,152
Eugene J. Glaser 117,868,689 0 4,545,151
Donald B. Romans 117,868,689 0 4,545,151
Ratify the Selection of Independent Accountants 119,666,351 290,882 2,456,238
</TABLE>
20
<PAGE>
TRUSTEES
James Balog
Claire B. Benenson
S. Leland Dill
Eugene J. Glaser
Donald B. Romans
OFFICERS
Eugene J. Glaser
Chairman, Chief Executive Officer
& President
Michael E. Haylon
Executive Vice President
David Katzen
Executive Vice President
William R. Moyer
Executive Vice President
John F. Sharry
Executive Vice President
Thomas N. Steenburg
Senior Vice President
Barry M. Mandinach
First Vice President
Carlton B. Neel
First Vice President
Sung Chung
Vice President
Nancy G. Curtiss
Treasurer
Beth Abraham
Assistant Vice President
Rhonda Lee Berzner
Assistant Vice President
David O'Brien
Assistant Vice President
Marc Baltuch
Secretary
Nancy J. Engberg
Assistant Secretary
Pamela S. Sinofsky
Assistant Secretary
Heather Leonard
Assistant Treasurer
Jacqueline Porter
Assistant Treasurer
INVESTMENT MANAGER
Euclid Advisors LLC
900 Third Avenue--31st Floor
New York, NY 10022
PRINCIPAL DISTRIBUTOR
Phoenix Equity Planning Corp.
PO Box 2200
Enfield, CT 06083-2200
CUSTODIAN
The Bank of New York
One Wall Street
New York, New York 10286
TRANSFER AGENT
Phoenix Equity Planning Corp.
100 Bright Meadow Boulevard
PO Box 2200
Enfield, CT 06083-2200
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
<PAGE>
================================================================================
Phoenix Equity Planning Corporation
PO Box 2200 ---------------------
Enfield, CT 06083-2200 PRSRT STD
U.S. Postage Paid
Springfield, MA
Permit No. 444
---------------------
[LOGO] PHOENIX
INVESTMENT PARTNERS
For more information, contact your financial advisor or call us at
1.800.243.1574.
Visit our websites at www.euclidfunds.com and www.phoenixinvestments.com.
Mutual funds distributed by Phoenix Equity Planning Corporation, Enfield, CT
06083
(C)1999 Phoenix Investment Partners, Ltd. PXP 2180 (12/99)
