<PAGE>
PHOENIX INVESTMENT PARTNERS
ANNUAL REPORT
OCTOBER 31, 2000
EUCLID
PHOENIX-EUCLID
MARKET NEUTRAL FUND
[LOGO]PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE CHAIRMAN
DEAR SHAREHOLDER:
[PHOTO]
During the last several months, the equity markets have experienced extreme
volatility and several sharp declines. While it hasn't been easy to be an
investor lately, the difficulty has been tempered somewhat for those who hold
well-diversified portfolios.
Phoenix Investment Partners offers a variety of funds that allow investors to
craft portfolios designed to meet their long-term financial objectives. Our
unique structure creates access to a wide range of investment styles and
disciplines -- all under one roof.
Market volatility like that we're currently experiencing always challenges our
ability to "hang on" for the long term. To help make it easier, we offer the
Phoenix-Euclid Market Neutral Fund. The goal of market neutral investing is to
generate returns that are independent of the direction of the stock market.
The Phoenix-Euclid market neutral strategy is designed to provide capital
appreciation in bull markets and in bear markets, while maintaining minimal
exposure to general market risk. Consider it a way to further diversify your
investment portfolio, and offer something of a respite during market swings.
There are several reasons to be excited about Phoenix-Euclid Market Neutral
Fund. In March of 2000, we put a new team in place to manage the Fund. From the
start date of the management change through October 31, 2000, the Fund returned
7.1%, significantly outperforming the S&P 500 Index(1), which declined 4.0%, as
well as Treasury bills, which returned 3.5%. Furthermore, the Fund demonstrated
amply its ability to reduce volatility relative to the general equity markets.
We invite you to read through the interview with the new portfolio management
team on the next few pages to understand why we believe the Phoenix-Euclid
Market Neutral Fund is a valuable component of a well-diversified portfolio. As
always, we appreciate your confidence and continued support.
If you have any questions, please contact your financial advisor or call us 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
OCTOBER 31, 2000
(1) THE S&P 500 INDEX MEASURES BROAD STOCK MARKET TOTAL-RETURN PERFORMANCE. THE
INDEX IS UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
Mutual funds are not insured by the FDIC; are not
deposits or other obligations of a bank and are not
guaranteed by a bank; and are subject to
investment risks, including possible loss of the
principal invested.
1
<PAGE>
PHOENIX-EUCLID MARKET NEUTRAL FUND
A DISCUSSION WITH THE FUND'S PORTFOLIO MANAGEMENT TEAM
Q: HOW WOULD YOU DESCRIBE THE FUND'S INVESTMENT OBJECTIVES AND STRATEGY?
A: The Phoenix-Euclid Market Neutral Fund strives to provide capital
appreciation in a variety of market conditions, while maintaining minimal
exposure to general market risk. We seek to achieve this objective by
constructing two portfolios: one in which we buy stocks, or take long positions,
and a second, offsetting portfolio in which we sell stocks short, or take short
positions.
We tie our success to stock selection--not to the direction of the stock
market. We accomplish this by keeping the long portfolio and short portfolio the
same size. The portfolio management team has constructed a series of
quantitative models to determine which stocks to buy and which to sell short.
We believe that the Phoenix-Euclid Market Neutral Fund can serve as an
important diversification tool in many portfolios, as our goal is to generate
positive returns that are independent of the direction of the markets.
Q: HOW DID THE FUND PERFORM OVER THE LAST YEAR?
A: For the year ended October 31, 2000, Class A shares were down 2.65%. The
Salomon Brothers 90-day Treasury Bill Index(1) returned 5.75% over the same
period. Class B and C Shares (which have no initial sales charge, but bear
higher annual expenses) were down 3.38% and 3.31%, respectively. All performance
figures assume reinvestment of distributions and exclude the effect of sales
charges.
Although it was a difficult year overall for the Fund, performance
dramatically improved during the last seven months of the year. In March of
2000, the Fund underwent a management change. The team approach we now follow,
combined with a refinement of the models employed in managing the Fund, has
resulted in enhanced performance since March.
<TABLE>
<CAPTION>
10/31/99- 3/31/00-
Comparative Returns 10/31/00 10/31/00
------------------- --------- --------
<S> <C> <C>
Euclid Market Neutral
(Class A shares) (2.65)% 7.08%
Barr Rosenberg Market Neutral Fund
(Class A shares) (8.62) 1.89
Warburg Pincus Long Short Neutral Fund
(Class A shares) 5.83 (4.20)
90-day Treasury Bill 5.75 3.48
S&P 500 Index(2) 6.09 (4.01)
</TABLE>
Q: WHAT FACTORS HAD THE GREATEST EFFECT ON PERFORMANCE?
A: Over the past year, we have seen two dramatically different investment
environments. The first, from October of 1999 through mid-March 2000, was a
period of almost unprecedented speculation. Investors could not get enough of
companies that lacked current earnings and potential earnings in the near
future. This type of market presents a challenge to a manager like
Phoenix/Euclid. Our quantitative models prefer companies with a more favorable
balance between earnings and valuation or price.
Another characteristic of such a speculative market is narrowness of
breadth. In both 1998 and 1999, less than a third of individual stocks within
(1) THE SALOMON BROTHERS 90-DAY TREASURY BILL INDEX IS COMMONLY USED TO
REPRESENT A "RISK-FREE" RATE OF RETURN.
(2) THE S&P 500 INDEX MEASURES BROAD STOCK MARKET TOTAL-RETURN PERFORMANCE. THE
INDICES ARE UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
2
<PAGE>
PHOENIX-EUCLID MARKET NEUTRAL FUND (CONTINUED)
the S&P 500 outperformed the Index. Through March of 2000, a mere 29% of the
companies in the S&P 500 Index returned more than the Index as a whole. This
narrowness in market leadership has made it difficult for quantitative
investment styles to shine for quite some time.
However, since March, the speculative excesses of the market have tapered
off. Valuations and market breadth have both returned to more historically
normal levels.
Q: WHAT CHANGES HAS THE NEW PORTFOLIO MANAGEMENT TEAM IMPLEMENTED?
A: The new team took over day-to-day management of the fund on March 20, 2000.
Since that time, we have implemented changes in an effort to reduce the Fund's
overall volatility, while delivering strong returns. For example, we have
started utilizing "pairs trading" with a portion of the Fund. This strategy
pairs up stocks with similar businesses, such as Ford and General Motors. When
our models indicate differences in the value or growth characteristics between
the stocks in a pair, we buy the stock we believe is undervalued and sell short
the stock we believe is overvalued.
In the other portion of the Fund, we have implemented more stringent
risk-control measures. These serve to prevent the Fund from having a bias toward
a specific type of investing, such as growth or value.
By managing the Fund utilizing two independent strategies, we are
essentially diversifying within the Fund. If one style is temporarily out of
favor, its poor performance may be tempered by strong performance in the other
style.
We are also keeping the characteristics of our long portfolio similar to
those of our short portfolio. Both portfolios have similar P/E ratios, median
market caps, and sector breakdowns, which helps to reduce volatility.
The bottom line: we refuse to make big bets on the performance of different
sectors of the market or different investment styles. Our goal is for the
performance of the Fund to rely as completely as possible on our ability to
identify over- and undervalued stocks.
Q: WHAT IS YOUR CURRENT OUTLOOK?
A: We believe the less-speculative market trends we've seen since mid-March, in
which stocks with strong earnings prospects and reasonable valuations have done
well, should continue. It appears that, for the foreseeable future, the health
of a company's business and the cost of owning that business will be more
important to investors than the fact that the stock's name contains ".COM."
The markets have experienced increased volatility in recent months. Both the
S&P 500 and the Nasdaq(3) have seen gut-wrenching swings. The good news for
investors in the Phoenix-Euclid Market Neutral Fund is none of that matters. The
Fund's returns have little or no correlation to the returns of the overall
market. As the economy continues to slow and interest rate levels remain
uncertain, we believe that the market's heightened volatility will continue. As
a result, the Fund should continue to offer much-needed diversification.
NOVEMBER 29, 2000
(3) THE NASDAQ INDEX MEASURES TECHNOLOGY-ORIENTED STOCK TOTAL-RETURN
PERFORMANCE. THE INDEX IS UNMANAGED AND NOT AVAILABLE FOR DIRECT INVESTMENT.
3
<PAGE>
Phoenix-Euclid Market Neutral Fund
AVERAGE ANNUAL TOTAL RETURNS(1) PERIODS ENDING 10/31/00
<TABLE>
<CAPTION>
INCEPTION INCEPTION
1 YEAR TO 10/31/00 DATE
-------- ----------- -----------
<S> <C> <C> <C>
Class A Shares at NAV(2) (2.65)% (2.99)% 5/1/98
Class A Shares at POP(3) (8.25) (5.26) 5/1/98
Class B Shares at NAV(2) (3.38) (3.63) 5/1/98
Class B Shares with CDSC(4) (7.17) (4.76) 5/1/98
Class C Shares at NAV(2) (3.31) (3.71) 5/1/98
Class C Shares with CDSC(2) (3.31) (3.71) 5/1/98
Class I Shares at NAV(2) (2.37) (2.72) 5/1/98
Salomon Brothers 90-Day
Treasury Bill Index(6) 5.75 5.18 4/30/98
</TABLE>
(1) Total returns are historical and include changes in share price and the
reinvestment of both dividends and capital gains distributions.
(2) "NAV" (Net Asset Value) total returns do not include the effect of any
sales charge.
(3) "POP" (Public Offering Price) total returns include the effect of the
maximum front-end 5.75% sales charge.
(4) CDSC (contingent deferred sales charge) is applied to redemptions of
certain classes of shares that do not have a sales charge applied at the
time of purchase. CDSC charges for B shares decline from 5% to 0% over a
five year period. CDSC charges for C shares are 1.25% in the first year and
0% thereafter.
(5) This chart illustrates POP returns on Class A Shares, CDSC returns for
Class B and Class C Shares and NAV returns on Class I Shares since
inception.
(6) The Salomon Brothers 90 Day Treasury Bill Index is commonly used to
represent a "risk-free" rate of return. The Index's performance does not
reflect sales charges.
All returns represent past performance which may not be indicative of
future performance. The investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
GROWTH OF $10,000 PERIODS ENDING 10/31
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
PHOENIX-EUCLID MARKET PHOENIX-EUCLID MARKET PHOENIX-EUCLID MARKET SALOMON BROTHERS 90-DAY
NEUTRAL FUND NEUTRAL FUND NEUTRAL FUND TREASURY BILL
<S> <C> <C> <C> <C>
Class A(5) Class B(5) Class C(5) Index(6)
5/98 $9,425 $10,000 $10,000 $10,000
98 $9,009 $9,533 $9,515 $10,255
99 $8,973 $9,435 $9,408 $10,753
00 $8,735 $8,850 $9,097 $11,347
</TABLE>
This Growth of $10,000 chart assumes an initial investment of $10,000 made on
5/1/98 (inception of the Fund) in Class A, B and C shares. The total return for
Class A shares reflects the maximum sales charge of 5.75% on the initial
investment. The total return for Class B shares reflects the CDSC charges which
decline from 5% to 0% over a five year period. The total return for Class C
shares reflects the CDSC charges which are 1.25% in the first year and 0%
thereafter. The performance of Class I shares will be greater or less than that
shown based on differences in fees. Performance assumes dividends and capital
gains are reinvested.
4
<PAGE>
Phoenix-Euclid Market Neutral Fund
TEN LARGEST EQUITY HOLDINGS AT OCTOBER 31, 2000 (AS A PERCENTAGE OF TOTAL NET
ASSETS)
<TABLE>
<C> <S> <C>
1. Canadian Pacific Ltd. 1.5%
CALGARY-BASED DIVERSIFIED OPERATING COMPANY
2. SYSCO Corp. 1.3%
FOOD DISTRIBUTOR
3. Capitol Federal Financial 1.1%
A FEDERALLY CHARTERED SAVINGS BANK HOLDING COMPANY
4. UtiliCorp United, Inc. 1.1%
INTERNATIONAL ELECTRIC AND GAS COMPANY
5. Alcan Aluminum Ltd. 1.0%
MANUFACTURES FINISHED ALUMINUM PRODUCTS
6. Luxottica Group SPA ADR 1.0%
MANUFACTURES EYEGLASS FRAMES
7. Texaco, Inc. 1.0%
MAJOR INTERNATIONAL OIL COMPANY
8. Equity Residential Properties Trust 0.9%
REAL ESTATE INVESTMENT TRUST
9. Spieker Properties, Inc. 0.8%
REAL ESTATE INVESTMENT TRUST
10. USX-Marathon Group 0.8%
OIL AND GAS EXPLORATION COMPANY
</TABLE>
INVESTMENTS AND SECURITIES SOLD SHORT AT OCTOBER 31, 2000
<TABLE>
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
COMMON STOCKS--83.8%
AEROSPACE/DEFENSE--0.6%
Boeing Co. (The).................... 3,300 $ 223,781
Orbital Sciences Corp.(b)........... 1,700 13,494
--------------------
237,275
--------------------
AGRICULTURAL PRODUCTS--0.5%
Archer-Daniels-Midland Co........... 15,525 170,775
AIR FREIGHT--0.2%
Expeditors International of
Washington, Inc..................... 1,300 67,437
AIRLINES--2.0%
America West Holdings Corp. Class
B(b)................................ 16,700 165,956
AMR Corp.(b)........................ 5,600 183,400
SkyWest, Inc........................ 4,000 202,000
Southwest Airlines Co............... 7,700 219,450
--------------------
770,806
--------------------
AUTO PARTS & EQUIPMENT--0.5%
Cooper Tire & Rubber Co............. 18,300 200,156
BANKS (MAJOR REGIONAL)--1.1%
Firstar Corp........................ 800 15,750
FleetBoston Financial Corp.......... 4,900 186,200
National City Corp.................. 1,400 29,925
SouthTrust Corp..................... 2,100 67,987
Synovus Financial Corp.............. 4,800 103,500
--------------------
403,362
--------------------
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
BANKS (REGIONAL)--1.0%
Colonial BancGroup, Inc. (The)...... 1,200 $ 10,575
Compass Bancshares, Inc............. 1,300 23,644
East West Bancorp, Inc.............. 3,000 56,812
Hibernia Corp. Class A.............. 16,600 198,162
National Commerce Bancorporation.... 5,000 106,250
--------------------
395,443
--------------------
BEVERAGES (ALCOHOLIC)--0.5%
Coors (Adolph) Co. Class B.......... 2,800 178,325
BIOTECHNOLOGY--0.7%
Chiron Corp.(b)..................... 3,900 168,919
IDEXX Laboratories, Inc.(b)......... 3,300 79,200
--------------------
248,119
--------------------
BROADCASTING (TELEVISION, RADIO & CABLE)--0.2%
Infinity Broadcasting Corp. Class
A(b)................................ 500 16,625
Sinclair Broadcasting Group, Inc.
Class A(b).......................... 3,150 29,039
USA Networks, Inc.(b)............... 1,500 30,375
--------------------
76,039
--------------------
BUILDING MATERIALS--0.2%
Dal-Tile International, Inc.(b)..... 5,900 73,012
CHEMICALS--0.7%
Airgas, Inc.(b)..................... 7,900 53,325
Dow Chemical Co. (The).............. 7,400 226,625
--------------------
279,950
--------------------
</TABLE>
See Notes to Financial Statements 5
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
CHEMICALS (DIVERSIFIED)--0.7%
Engelhard Corp...................... 12,600 $ 263,025
CHEMICALS (SPECIALTY)--0.5%
Methanex Corp.(b)................... 14,700 58,800
RPM, Inc............................ 16,600 148,362
--------------------
207,162
--------------------
COMMUNICATIONS EQUIPMENT--0.8%
Corning, Inc........................ 300 22,950
Loral Space & Communications
Ltd.(b)............................. 5,500 31,281
Metromedia Fiber Network, Inc.(b)... 1,800 34,200
Mitel Corp.(b)...................... 4,900 80,850
Plantronics, Inc.(b)................ 900 41,062
QUALCOMM, Inc.(b)................... 500 32,555
Scientific-Atlanta, Inc............. 800 54,750
Westell Technologies, Inc.(b)....... 800 4,400
--------------------
302,048
--------------------
COMPUTERS (HARDWARE)--0.6%
Computer Network Technology
Corp.(b)............................ 1,200 36,469
Dell Computer Corp.(b).............. 800 23,600
Micron Electronics, Inc.(b)......... 7,900 62,459
Palm, Inc.(b)....................... 2,100 112,481
--------------------
235,009
--------------------
COMPUTERS (NETWORKING)--0.5%
Cisco Systems, Inc.(b).............. 2,700 145,462
Network Appliance, Inc.(b).......... 300 35,700
--------------------
181,162
--------------------
COMPUTERS (PERIPHERALS)--0.1%
InFocus Corp.(b).................... 800 35,350
COMPUTERS (SOFTWARE & SERVICES)--3.0%
AGENCY.COM, Inc.(b)................. 2,500 26,250
BroadVision, Inc.(b)................ 6,200 184,450
BSQUARE Corp.(b).................... 2,000 31,250
Carreker Corp.(b)................... 1,900 35,150
Dendrite International, Inc.(b)..... 900 19,575
eLoyalty Corp.(b)................... 4,300 41,387
FileNET Corp.(b).................... 1,600 42,400
Internet Security Systems,
Inc.(b)............................. 500 44,125
JDA Software Group, Inc.(b)......... 2,700 40,669
LookSmart Ltd.(b)................... 1,800 12,712
Manhattan Associates, Inc.(b)....... 1,200 76,819
Mentor Graphics Corp.(b)............ 2,000 46,875
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--CONTINUED
Mercury Interactive Corp.(b)........ 300 $ 33,300
Structural Dynamics Research
Corp.(b)............................ 17,600 181,500
Sybase, Inc.(b)..................... 1,200 25,125
Systems & Computer Technology
Corp.(b)............................ 4,400 63,525
Verity, Inc.(b)..................... 6,800 159,800
WebTrends Corp.(b).................. 600 19,284
Wink Communications, Inc.(b)........ 800 8,200
Yahoo!, Inc.(b)..................... 600 35,175
--------------------
1,127,571
--------------------
CONSUMER FINANCE--1.0%
Capital One Financial Corp.......... 700 44,187
MBNA Corp........................... 4,200 157,762
Metris Cos., Inc.................... 1,800 58,275
PMI Group, Inc. (The)............... 1,800 132,975
--------------------
393,199
--------------------
DISTRIBUTORS (FOOD & HEALTH)--3.1%
AmeriSource Health Corp. Class
A(b)................................ 1,600 69,500
Bindley Western Industries, Inc..... 7,200 258,750
Cardinal Health, Inc................ 1,300 123,175
Owens & Minor, Inc.................. 7,000 105,875
Priority Healthcare Corp. Class
B(b)................................ 400 21,500
SUPERVALU, Inc...................... 6,789 104,381
SYSCO Corp.......................... 9,500 495,781
--------------------
1,178,962
--------------------
ELECTRIC COMPANIES--3.1%
Edison International................ 3,200 76,400
FirstEnergy Corp.................... 4,600 119,025
NRG Energy, Inc.(b)................. 3,000 78,000
PPL Corp............................ 3,100 127,681
Public Service Company of New
Mexico.............................. 2,700 74,419
Reliant Energy, Inc................. 6,300 260,269
Unisource Energy Corp............... 2,200 32,862
UtiliCorp United, Inc............... 15,350 407,734
--------------------
1,176,390
--------------------
ELECTRICAL EQUIPMENT--2.0%
ACT Manufacturing, Inc.(b).......... 400 13,150
American Power Conversion
Corp.(b)............................ 3,100 40,106
Belden, Inc......................... 7,700 199,719
Benchmark Electronics, Inc.(b)...... 1,300 52,325
Electro Scientific Industries,
Inc.(b)............................. 900 31,444
General Electric Co................. 3,400 186,362
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
ELECTRICAL EQUIPMENT--CONTINUED
Harman International Industries,
Inc................................. 1,400 $ 67,200
Rayovac Corp.(b).................... 1,400 20,650
Sensormatic Electronics Corp.(b).... 5,400 97,200
Three-Five Systems, Inc.(b)......... 950 32,775
Viasystems Group, Inc.(b)........... 100 1,419
Zomax, Inc.(b)...................... 2,600 15,762
--------------------
758,112
--------------------
ELECTRONICS (COMPONENT DISTRIBUTORS)--0.5%
Arrow Electronics, Inc.(b).......... 3,500 112,000
Bell Microproducts, Inc.(b)......... 1,500 39,000
Pioneer-Standard Electronics,
Inc................................. 2,500 34,687
--------------------
185,687
--------------------
ELECTRONICS (DEFENSE)--0.6%
Litton Industries, Inc.(b).......... 4,400 228,525
ELECTRONICS (INSTRUMENTATION)--0.2%
Agilent Technologies, Inc.(b)....... 600 27,787
Packard BioScience Co.(b)........... 1,400 22,575
Trimble Navigation Ltd.(b).......... 450 10,687
--------------------
61,049
--------------------
ELECTRONICS (SEMICONDUCTORS)--1.1%
Altera Corp.(b)..................... 800 32,750
Cypress Semiconductor Corp.(b)...... 1,100 41,181
General Semiconductor, Inc.(b)...... 1,600 18,300
International Rectifier Corp.(b).... 1,400 62,475
Maxim Integrated Products,
Inc.(b)............................. 1,500 99,469
Microchip Technology, Inc.(b)....... 600 18,975
ON Semiconductor Corp.(b)........... 2,500 25,156
Silicon Storage Technology,
Inc.(b)............................. 1,700 38,675
TranSwitch Corp.(b)................. 1,400 80,850
--------------------
417,831
--------------------
ENTERTAINMENT--0.2%
Walt Disney Co. (The)............... 2,000 71,625
EQUIPMENT (SEMICONDUCTORS)--0.9%
Asyst Technologies, Inc.(b)......... 7,100 106,500
Cymer, Inc.(b)...................... 1,300 32,500
KLA-Tencor Corp.(b)................. 300 10,144
Semitool, Inc.(b)................... 1,400 18,287
Silicon Valley Group, Inc.(b)....... 900 29,644
Teradyne, Inc.(b)................... 4,800 150,000
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
EQUIPMENT (SEMICONDUCTORS)--CONTINUED
Varian Semiconductor Equipment
Associates, Inc.(b)................. 400 $ 9,200
--------------------
356,275
--------------------
FINANCIAL (DIVERSIFIED)--1.1%
American Express Co................. 4,400 264,000
Citigroup, Inc...................... 2,933 154,349
--------------------
418,349
--------------------
FOODS--1.7%
ConAgra Foods, Inc.................. 6,770 144,709
Hormel Foods Corp................... 3,500 58,844
PepsiCo, Inc........................ 5,400 261,562
Ralston Purina Group................ 5,100 123,675
Smithfield Foods, Inc.(b)........... 1,400 40,162
Tyson Foods, Inc. Class A........... 2,600 29,087
--------------------
658,039
--------------------
FOOTWEAR--0.3%
Timberland Co. (The) Class A(b)..... 1,300 67,112
Wolverine World Wide, Inc........... 6,000 64,875
--------------------
131,987
--------------------
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--1.5%
Anchor Gaming(b).................... 2,000 169,875
Aztar Corp.(b)...................... 7,600 114,950
International Game Technology(b).... 1,800 65,925
Mandalay Resort Group(b)............ 5,400 112,387
Pinnacle Entertainment, Inc.(b)..... 4,200 95,812
--------------------
558,949
--------------------
HEALTH CARE (DIVERSIFIED)--0.8%
Abbott Laboratories................. 5,900 311,594
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.3%
Amylin Pharmaceuticals, Inc.(b)..... 6,000 60,750
QLT, Inc.(b)........................ 1,000 49,734
--------------------
110,484
--------------------
HEALTH CARE (GENERIC AND OTHER)--0.2%
King Pharmaceuticals, Inc.(b)....... 700 31,369
Noven Pharmaceuticals, Inc.(b)...... 1,400 62,387
--------------------
93,756
--------------------
HEALTH CARE (HOSPITAL MANAGEMENT)--0.3%
Quorum Health Group, Inc.(b)........ 3,600 48,150
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
HEALTH CARE (HOSPITAL MANAGEMENT)--CONTINUED
Triad Hospitals, Inc.(b)............ 1,700 $ 47,175
--------------------
95,325
--------------------
HEALTH CARE (MANAGED CARE)--2.0%
Conventry Health Care, Inc.(b)...... 3,600 65,700
Foundation Health Systems, Inc.
Class A(b).......................... 7,800 157,462
Mid Atlantic Medical Services,
Inc.(b)............................. 8,200 139,400
Trigon Healthcare, Inc.(b).......... 1,200 86,025
UnitedHealth Group, Inc............. 2,200 240,625
US Oncology, Inc.(b)................ 15,100 81,162
--------------------
770,374
--------------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--1.8%
ADAC Laboratories(b)................ 2,800 36,400
ATS Medical, Inc.(b)................ 3,700 67,756
DENTSPLY International, Inc......... 5,600 194,250
MiniMed, Inc.(b).................... 700 51,056
Oakley, Inc.(b)..................... 5,500 115,500
Ocular Sciences, Inc.(b)............ 11,500 142,312
Respironics, Inc.(b)................ 3,000 58,875
--------------------
666,149
--------------------
HEALTH CARE (SPECIALIZED SERVICES)--1.0%
Advance Paradigm, Inc.(b)........... 1,600 78,200
DaVita, Inc.(b)..................... 3,500 39,375
HEALTHSOUTH Corp.(b)................ 9,700 116,400
Omnicare, Inc....................... 5,800 101,500
Orthodontic Centers of America,
Inc.(b)............................. 1,300 43,387
--------------------
378,862
--------------------
HOMEBUILDING--0.7%
Clayton Homes, Inc.................. 4,500 41,344
Horton (D.R.), Inc.................. 4,360 80,660
Kaufman and Broad Home Corp......... 800 23,800
Lennar Corp......................... 3,300 106,012
--------------------
251,816
--------------------
HOUSEHOLD FURNISHINGS & APPLIANCES--0.6%
Furniture Brands International,
Inc.(b)............................. 13,600 229,500
HOUSEHOLD PRODUCTS (NON-DURABLE)--0.1%
Church & Dwight Co., Inc............ 1,500 29,625
INSURANCE (LIFE/HEALTH)--0.8%
MetLife, Inc.(b).................... 2,100 58,012
Nationwide Financial Services, Inc.
Class A............................. 4,600 223,675
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
INSURANCE (LIFE/HEALTH)--CONTINUED
Torchmark Corp...................... 900 $ 29,981
--------------------
311,668
--------------------
INSURANCE (PROPERTY-CASUALTY)--0.7%
Alleghany Corp.(b).................. 200 38,438
Fidelity National Financial, Inc.... 1,000 24,563
Old Republic International Corp..... 8,300 215,800
--------------------
278,801
--------------------
INSURANCE BROKERS--0.1%
Erie Indemnity Co. Class A.......... 1,900 53,081
INVESTMENT BANKING/BROKERAGE--1.6%
Edwards (A.G.), Inc................. 3,800 192,850
James (Raymond) Financial, Inc...... 4,100 138,631
Merrill Lynch & Co., Inc............ 4,000 280,000
--------------------
611,481
--------------------
INVESTMENT MANAGEMENT--0.3%
Federated Investors, Inc............ 4,000 116,500
IRON & STEEL--0.6%
AK Steel Holding Corp............... 1,300 12,025
Worthington Industries, Inc......... 22,550 215,634
--------------------
227,659
--------------------
LEISURE TIME (PRODUCTS)--0.8%
Callaway Golf Co.................... 1,900 30,400
Harley-Davidson, Inc................ 1,500 72,281
Hasbro, Inc......................... 19,700 211,775
--------------------
314,456
--------------------
LODGING-HOTELS--0.8%
Extended Stay America, Inc.(b)...... 16,800 206,850
Hilton Hotels Corp.................. 11,000 104,500
--------------------
311,350
--------------------
MACHINERY (DIVERSIFIED)--0.4%
Dover Corp.......................... 3,400 144,288
MANUFACTURING (DIVERSIFIED)--0.4%
Thermo Electron Corp................ 1,605 46,545
WMS Industries, Inc.(b)............. 4,600 102,350
--------------------
148,895
--------------------
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
MANUFACTURING (SPECIALIZED)--0.4%
Insituform Technologies, Inc.(b).... 2,300 $ 82,081
JLG Industries, Inc................. 2,300 32,056
Reliance Steel & Aluminum Co........ 1,700 40,375
--------------------
154,512
--------------------
METAL FABRICATORS--0.2%
Kennametal, Inc..................... 3,200 94,000
METALS MINING--0.1%
Freeport-McMoRan Copper & Gold, Inc.
Class B(b).......................... 5,600 44,450
NATURAL GAS--2.7%
Dynegy, Inc. Class A................ 2,000 92,625
Energen Corp........................ 5,700 163,163
Equitable Resources, Inc............ 1,000 58,000
KeySpan Corp........................ 5,500 193,531
Questar Corp........................ 7,500 202,969
Sempra Energy....................... 15,000 310,313
--------------------
1,020,601
--------------------
OIL & GAS (DRILLING & EQUIPMENT)--1.1%
BJ Services Co.(b).................. 1,400 73,413
Helmerich & Payne, Inc.............. 4,200 132,038
Input/Output, Inc.(b)............... 4,100 34,594
Marine Drilling Cos, Inc.(b)........ 1,900 45,363
Parker Drilling Co.(b).............. 3,700 22,200
Seitel, Inc.(b)..................... 1,900 28,500
Unit Corp.(b)....................... 7,200 95,850
--------------------
431,958
--------------------
OIL & GAS (EXPLORATION & PRODUCTION)--1.5%
Apache Corp......................... 600 33,188
Brown (Tom), Inc.(b)................ 2,200 50,325
Chesapeake Energy Corp.(b).......... 4,000 22,500
Cross Timbers Oil Co................ 6,750 126,984
Meridian Resource Corp. (The)(b).... 2,000 13,875
Ocean Energy, Inc.(b)............... 4,700 65,213
Pioneer Natural Resources Co.(b).... 3,700 48,331
Triton Energy Ltd.(b)............... 2,100 64,575
Vintage Petroleum, Inc.............. 6,900 145,763
--------------------
570,754
--------------------
OIL & GAS (REFINING & MARKETING)--0.9%
Tosco Corp.......................... 900 25,763
Ultramar Diamond Shamrock Corp...... 3,300 86,625
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
OIL & GAS (REFINING & MARKETING)--CONTINUED
Valero Energy Corp.................. 6,500 $ 214,906
--------------------
327,294
--------------------
OIL (DOMESTIC INTEGRATED)--1.7%
Conoco, Inc. Class B................ 1,900 51,656
Occidental Petroleum Corp........... 14,600 290,175
USX-Marathon Group.................. 11,800 320,813
--------------------
662,644
--------------------
OIL (INTERNATIONAL INTEGRATED)--1.0%
Texaco, Inc......................... 6,200 366,188
PAPER & FOREST PRODUCTS--0.5%
Buckeye Technologies, Inc.(b)....... 2,400 41,100
Westvaco Corp....................... 5,500 156,750
--------------------
197,850
--------------------
PERSONAL CARE--0.1%
NBTY, Inc.(b)....................... 3,500 22,750
Perrigo Co.(b)...................... 2,400 15,900
--------------------
38,650
--------------------
PHOTOGRAPHY/IMAGING--0.1%
Concord Camera Corp.(b)............. 1,300 40,219
PUBLISHING--0.3%
Martha Stewart Living Omnimedia,
Inc. Class A(b)..................... 4,600 115,288
PUBLISHING (NEWSPAPERS)--0.6%
Belo (A.H.) Corp.................... 1,900 36,456
New York Times Co. (The) Class A.... 5,600 205,800
--------------------
242,256
--------------------
REITS--6.0%
Boston Properties, Inc.............. 7,200 291,600
Developers Diversified Realty
Corp................................ 11,200 133,700
Duke-Weeks Realty Corp.............. 6,200 146,863
Equity Office Properties Trust...... 8,700 262,088
Equity Residential Properties
Trust............................... 7,000 329,438
Innkeepers USA Trust................ 7,800 79,463
MeriStar Hospitality Corp........... 2,800 53,550
Prentiss Properties Trust........... 8,400 213,150
Reckson Associates Realty Corp...... 7,900 178,738
Spieker Properties, Inc............. 5,800 321,175
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
REITS--CONTINUED
United Dominion Realty Trust,
Inc................................. 23,100 $ 242,550
--------------------
2,252,315
--------------------
RESTAURANTS--2.5%
Brinker International, Inc.(b)...... 4,400 172,700
CBRL Group, Inc.(b)................. 7,200 128,700
Cheesecake Factory, Inc. (The)(b)... 800 35,450
Darden Restaurants, Inc............. 2,200 49,500
Jack in the Box, Inc.(b)............ 2,000 49,000
Outback Steakhouse, Inc.(b)......... 1,800 51,300
Ruby Tuesday, Inc................... 10,500 142,406
Starbucks Corp.(b).................. 1,400 62,563
Tricon Global Restaurants,
Inc.(b)............................. 7,300 219,000
Wendy's International, Inc.......... 1,600 34,800
--------------------
945,419
--------------------
RETAIL (COMPUTERS & ELECTRONICS)--0.2%
Best Buy Co., Inc.(b)............... 500 25,094
CDW Computer Centers, Inc.(b)....... 500 32,219
Circuit City Stores-Circuit City
Group............................... 900 11,925
Tech Data Corp.(b).................. 400 16,650
--------------------
85,888
--------------------
RETAIL (DEPARTMENT STORES)--0.7%
Federated Department Stores,
Inc.(b)............................. 6,000 195,375
Neiman Marcus Group, Inc. (The)
Class A(b).......................... 1,500 55,688
--------------------
251,063
--------------------
RETAIL (DISCOUNTERS)--0.8%
Family Dollar Stores, Inc........... 11,700 227,419
Stein Mart, Inc.(b)................. 4,500 69,750
--------------------
297,169
--------------------
RETAIL (FOOD CHAINS)--1.2%
Kroger Co. (The)(b)................. 5,500 124,094
Safeway, Inc.(b).................... 1,800 98,438
Winn-Dixie Stores, Inc.............. 11,200 215,600
--------------------
438,132
--------------------
RETAIL (GENERAL MERCHANDISE)--1.0%
BJ's Wholesale Club, Inc.(b)........ 2,800 92,225
Costco Wholesale Corp.(b)........... 2,200 80,575
Sears, Roebuck & Co................. 6,400 190,272
--------------------
363,072
--------------------
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
RETAIL (HOME SHOPPING)--0.2%
Insight Enterprises, Inc.(b)........ 2,550 $ 82,875
RETAIL (SPECIALTY)--2.8%
AutoZone, Inc.(b)................... 1,800 48,263
Bed Bath & Beyond, Inc.(b).......... 2,200 56,788
Casey's General Stores, Inc......... 14,000 175,000
Genesco, Inc.(b).................... 2,400 42,600
O'Reilly Automotive, Inc.(b)........ 4,900 88,200
Office Depot, Inc.(b)............... 5,000 41,563
Pier 1 Imports, Inc................. 17,300 229,225
Staples, Inc.(b).................... 5,400 76,950
Tiffany & Co........................ 1,800 76,838
Trans World Entertainment
Corp.(b)............................ 16,900 143,650
Venator Group, Inc.(b).............. 7,100 100,288
--------------------
1,079,365
--------------------
RETAIL (SPECIALTY-APPAREL)--1.3%
Charming Shoppes, Inc.(b)........... 17,700 108,413
Men's Wearhouse, Inc. (The)(b)...... 2,600 76,050
Talbots, Inc. (The)................. 700 55,344
TJX Cos., Inc. (The)................ 8,700 237,075
--------------------
476,882
--------------------
SAVINGS & LOAN COMPANIES--2.1%
Capitol Federal Financial........... 30,000 435,000
Golden West Financial Corp.......... 1,700 95,306
GreenPoint Financial Corp........... 5,100 151,725
Sovereign Bancorp, Inc.............. 15,300 127,181
--------------------
809,212
--------------------
SERVICES (ADVERTISING/MARKETING)--0.0%
Forrester Research, Inc.(b)......... 400 16,425
SERVICES (COMMERCIAL & CONSUMER)--1.8%
APAC Customer Services, Inc.(b)..... 4,200 22,575
Apollo Group, Inc. Class A(b)....... 5,000 195,625
Cerner Corp.(b)..................... 1,800 111,488
Convergys Corp.(b).................. 900 39,206
Copart, Inc.(b)..................... 12,000 180,750
Diamond Technology Partners,
Inc.(b)............................. 700 31,238
Profit Recovery Group International,
Inc. (The)(b)....................... 2,700 14,513
SITEL Corp.(b)...................... 11,200 31,500
TeleTech Holdings, Inc.(b).......... 2,400 66,600
--------------------
693,495
--------------------
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
SERVICES (COMPUTER SYSTEMS)--0.8%
Electronic Data Systems Corp........ 3,900 $ 183,056
Ingram Micro, Inc. Class A(b)....... 3,000 51,188
Lightbridge, Inc.(b)................ 1,400 14,963
Sapient Corp.(b).................... 1,900 67,569
--------------------
316,776
--------------------
SERVICES (DATA PROCESSING)--0.9%
Automatic Data Processing, Inc...... 900 58,781
Ceridian Corp.(b)................... 500 12,500
Concord EFS, Inc.(b)................ 4,600 190,038
Paychex, Inc........................ 1,500 85,031
--------------------
346,350
--------------------
SERVICES (EMPLOYMENT)--0.5%
Hall, Kinion & Associates,
Inc.(b)............................. 1,100 29,081
Robert Half International,
Inc.(b)............................. 2,400 73,200
Spherion Corp.(b)................... 6,800 80,750
--------------------
183,031
--------------------
SPECIALTY PRINTING--0.6%
Banta Corp.......................... 3,700 85,331
Topps Co., Inc. (The)(b)............ 14,300 129,147
--------------------
214,478
--------------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--1.4%
AT&T Wireless Group(b).............. 2,700 67,331
Boston Communications Group,
Inc.(b)............................. 800 18,900
Powertel, Inc.(b)................... 2,900 253,025
Sprint Corp. (PCS Group)(b)......... 5,100 194,438
--------------------
533,694
--------------------
TELECOMMUNICATIONS (LONG DISTANCE)--0.2%
General Communication, Inc.(b)...... 8,200 64,063
Time Warner Telecom, Inc. Class
A(b)................................ 400 23,850
--------------------
87,913
--------------------
TELEPHONE--0.1%
Qwest Communications International,
Inc.(b)............................. 900 43,763
TEXTILES (APPAREL)--0.1%
Tommy Hilfiger Corp.(b)............. 3,300 38,363
TEXTILES (HOME FURNISHINGS)--0.2%
Interface, Inc...................... 8,600 78,475
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
TOBACCO--0.4%
Philip Morris Cos., Inc............. 4,100 $ 150,163
TRUCKERS--0.1%
American Freightways Corp.(b)....... 1,200 19,350
WASTE MANAGEMENT--0.4%
Republic Services, Inc.(b).......... 6,300 84,656
Waste Management, Inc............... 2,500 50,000
--------------------
134,656
--------------------
WATER UTILITIES--0.3%
Philadelphia Suburban Corp.......... 4,700 110,156
-----------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $29,196,125) 31,857,813
-----------------------------------------------------------------------
FOREIGN COMMON STOCKS--8.7%
ALUMINUM--1.0%
Alcan Aluminum Ltd. (Canada)........ 11,900 375,594
BEVERAGES (NON-ALCOHOLIC)--0.3%
Cott Corp. (Canada)(b).............. 21,400 128,400
COMMUNICATIONS EQUIPMENT--0.1%
BreezeCom Ltd. (Israel)(b).......... 700 12,994
Nortel Networks Corp. (Canada)...... 200 9,100
--------------------
22,094
--------------------
COMPUTERS (HARDWARE)--0.1%
Radware Ltd. (Israel)(b)............ 1,600 36,200
ELECTRONICS (INSTRUMENTATION)--0.2%
Qiagen NV (Netherlands)(b).......... 1,300 56,062
ELECTRONICS (SEMICONDUCTORS)--0.7%
ARM Holdings PLC ADR (United
Kingdom)(b)......................... 1,800 54,000
ASAT Holdings Ltd. (Cayman
Islands)(b)......................... 1,900 12,587
Galileo Technology Ltd.
(Israel)(b)......................... 400 10,850
STMicroelectronics NV NY Shares
(France)............................ 1,500 77,906
Taiwan Semiconductor Manufacturing
Co. Ltd. ADR (Taiwan)(b)............ 4,424 100,369
--------------------
255,712
--------------------
EQUIPMENT (SEMICONDUCTORS)--0.0%
ASM International NV
(Netherlands)(b).................... 1,000 16,063
GOLD & PRECIOUS METALS MINING--0.3%
Placer Dome, Inc. (Canada).......... 13,600 110,500
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- --------------------
<S> <C> <C> <C>
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.2%
Teva Pharmaceutical Industries Ltd.
ADR (Israel)........................ 1,100 $ 65,038
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--1.0%
Luxottica Group SPA ADR (Italy)..... 25,500 368,156
INSURANCE (LIFE/HEALTH)--1.4%
Manulife Financial Corp. (Canada)... 10,800 278,100
Sun Life Financial Services of
Canada (Canada)(b).................. 12,000 246,000
--------------------
524,100
--------------------
MANUFACTURING (DIVERSIFIED)--0.3%
Tyco International Ltd. (Bermuda)... 2,300 130,381
OIL (INTERNATIONAL INTEGRATED)--1.0%
BP Amoco PLC ADR (United Kingdom)... 3,690 187,959
Shell Transport & Trading Co. ADR
(United Kingdom).................... 3,800 186,913
--------------------
374,872
--------------------
RAILROADS--1.5%
Canadian Pacific Ltd. (Canada)...... 19,800 577,913
SHIPPING--0.2%
Knightsbridge Tankers Ltd.
(Bermuda)........................... 3,500 75,469
SPECIALTY PRINTING--0.2%
Quebecor World (Canada)............. 3,800 83,600
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.2%
Grupo Iusacell S.A. de C.V. ADR
(Mexico)(b)......................... 6,900 89,700
-----------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $3,278,630) 3,289,854
-----------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--92.5%
(IDENTIFIED COST $32,474,755) 35,147,667
-----------------------------------------------------------------------
<CAPTION>
PAR
VALUE
(000) VALUE
------- --------------------
SHORT-TERM OBLIGATIONS--8.0%
<S> <C> <C> <C>
REPURCHASE AGREEMENT--8.0%
Morgan Stanley & Co., Inc.
repurchase agreement 6.59%, dated
10/31/00 due 11/1/00 repurchase
price $3,055,559 collateralized by
Fannie Mae Bond 7.556%, 9/1/37,
market value $3,116,297............. $3,055 $ 3,055,000
-----------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $3,055,000) 3,055,000
-----------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--100.5%
(IDENTIFIED COST $35,529,755) 38,202,667(a)
SECURITIES SOLD SHORT--92.2%
(PROCEEDS $35,193,158) (35,052,339)
Cash and receivables, less liabilities--91.7% 34,881,880
------------
NET ASSETS--100.0% $ 38,032,208
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $5,096,349 and gross
depreciation of $2,787,038 for federal income tax purposes. At October 31,
2000, the aggregate cost of securities for federal income tax purposes was
$35,893,356.
(b) Non-income producing.
12 See Notes to Financial Statements
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
SECURITIES SOLD SHORT--92.2%
COMMON STOCKS--83.1%
AEROSPACE/DEFENSE--1.7%
AAR Corp................................ 3,000 $ 35,812
Lockheed Martin Corp.................... 6,400 229,440
Northrop Grumman Corp................... 1,800 151,200
Raytheon Co. Class B.................... 5,400 184,612
Teledyne Technologies, Inc.............. 1,700 42,606
-----------
643,670
-----------
AGRICULTURAL PRODUCTS--0.1%
Delta and Pine Land Co.................. 1,100 26,881
AIRLINES--1.6%
Alaska Air Group, Inc................... 7,100 184,156
Atlantic Coast Airlines Holdings,
Inc..................................... 6,600 235,950
Delta Air Lines, Inc.................... 1,100 51,975
Midwest Express Holdings, Inc........... 4,700 89,300
UAL Corp................................ 1,600 60,700
-----------
622,081
-----------
ALUMINUM--0.0%
Alcoa, Inc.............................. 24 688
AUTO PARTS & EQUIPMENT--1.3%
BorgWarner, Inc......................... 800 30,200
Dana Corp............................... 6,700 148,656
Federal-Mogul Corp...................... 4,400 14,300
Goodyear Tire & Rubber Co. (The)........ 11,100 205,350
TRW, Inc................................ 2,700 113,400
-----------
511,906
-----------
BANKS (MAJOR REGIONAL)--2.2%
Bank of New York Co., Inc. (The)........ 3,900 224,494
Bank One Corp........................... 6,900 251,850
Comerica, Inc........................... 600 36,187
Fifth Third Bancorp..................... 1,500 77,062
PNC Financial Services Group............ 2,200 147,125
State Street Corp....................... 700 87,318
Union Planters Corp..................... 14 473
-----------
824,509
-----------
BANKS (REGIONAL)--1.1%
Chittenden Corp......................... 4,300 114,219
Commerce Bancorp, Inc................... 45 2,725
Hudson United Bancorp................... 5,100 114,112
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
BANKS (REGIONAL)--CONTINUED
Marshall & Ilsley Corp.................. 900 $ 40,781
Provident Financial Group, Inc.......... 2,400 72,600
Sky Financial Group, Inc................ 4,840 80,465
-----------
424,902
-----------
BEVERAGES (ALCOHOLIC)--0.5%
Anheuser-Busch Cos., Inc................ 4,000 183,000
BEVERAGES (NON-ALCOHOLIC)--0.5%
Coca-Cola Co. (The)..................... 3,300 199,237
BIOTECHNOLOGY--3.7%
AVANT Immunotherapeutics, Inc........... 3,900 32,906
Biopure Corp............................ 1,900 39,069
Cell Genesys, Inc....................... 2,000 46,125
Corixa Corp............................. 1,800 80,100
CV Therapeutics, Inc.................... 600 47,250
CYTOGEN Corp............................ 2,000 11,500
Gene Logic, Inc......................... 1,300 28,356
Geron Corp.............................. 1,400 32,900
ILEX Oncology, Inc...................... 1,800 65,250
Lynx Therapeutics, Inc.................. 1,200 21,000
Medarex, Inc............................ 2,000 122,250
MedImmune, Inc.......................... 2,500 163,437
Millennium Pharmaceuticals, Inc......... 2,000 145,125
Myriad Genetics, Inc.................... 800 96,000
Neurocrine Biosciences, Inc............. 700 27,125
NPS Pharmaceuticals, Inc................ 1,700 72,887
Orchid Biosciences...................... 1,600 32,700
Pharmacyclics, Inc...................... 1,400 75,337
Progenics Pharmaceuticals, Inc.......... 2,300 56,637
Protein Design Labs, Inc................ 900 121,570
Ribozyme Pharmaceuticals, Inc........... 2,700 57,206
SangStat Medical Corp................... 1,300 13,000
Targeted Genetics Corp.................. 3,900 39,000
-----------
1,426,730
-----------
BROADCASTING (TELEVISION, RADIO & CABLE)--1.5%
AT&T Corp.- Liberty Media Corp. Class
A....................................... 2,800 50,400
Cox Communications, Inc. Class A........ 10,000 440,625
Pegasus Communications Corp............. 500 17,781
RCN Corp................................ 3,700 65,675
-----------
574,481
-----------
BUILDING MATERIALS--0.5%
Owens Corning........................... 11,800 16,225
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
BUILDING MATERIALS--CONTINUED
USG Corp................................ 9,500 $ 162,094
-----------
178,319
-----------
CHEMICALS--0.6%
Du Pont (E.I.) de Nemours & Co.......... 4,300 195,112
PolyOne Corp............................ 2,300 18,112
-----------
213,224
-----------
CHEMICALS (DIVERSIFIED)--0.2%
PPG Industries, Inc..................... 1,400 62,475
CHEMICALS (SPECIALTY)--0.4%
Hercules, Inc........................... 3,014 55,194
Millennium Chemicals, Inc............... 5,900 95,137
-----------
150,331
-----------
COMMUNICATIONS EQUIPMENT--0.6%
Adaptive Broadband Corp................. 1,900 30,519
CTC Communications Group, Inc........... 1,300 12,553
Harmonic, Inc........................... 3,500 50,750
Inter-Tel, Inc.......................... 1,900 21,969
InterWave Communications International
Ltd..................................... 1,800 6,525
Lucent Technologies, Inc................ 1,000 23,312
Sycamore Networks, Inc.................. 1,100 69,575
-----------
215,203
-----------
COMPUTERS (HARDWARE)--0.3%
Apple Computer, Inc..................... 800 15,650
Extended Systems, Inc................... 900 35,100
International Business Machines Corp.... 500 49,250
-----------
100,000
-----------
COMPUTERS (PERIPHERALS)--0.2%
Advanced Digital Information Corp....... 1,400 18,200
Lexmark International, Inc.............. 600 24,600
Seagate Technology, Inc................. 700 48,912
-----------
91,712
-----------
COMPUTERS (SOFTWARE & SERVICES)--3.0%
Adept Technology, Inc................... 600 16,725
Akamai Technologies, Inc................ 900 45,900
Aspen Technology, Inc................... 400 16,525
BMC Software, Inc....................... 1,100 22,344
Bottomline Technologies, Inc............ 1,200 42,075
CNET Networks, Inc...................... 470 14,790
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--CONTINUED
Complete Business Solutions, Inc........ 1,300 $ 13,487
Computer Associates International,
Inc..................................... 2,500 79,687
Documentum, Inc......................... 200 17,000
E.piphany, Inc.......................... 300 27,037
Eclipsys Corp........................... 1,400 34,562
Electronic Arts, Inc.................... 3,600 180,000
IDX Systems Corp........................ 1,700 54,400
IMRglobal Corp.......................... 2,600 21,450
Mercator Software, Inc.................. 1,700 7,756
MicroStrategy, Inc...................... 900 21,544
NaviSite, Inc........................... 1,100 11,206
Numerical Technologies, Inc............. 1,300 26,650
OpenTv Corp............................. 600 16,125
PeopleSoft, Inc......................... 5,100 222,567
Prodigy Communications Corp............. 2,800 12,250
Transaction Systems Architects, Inc..... 10,500 141,750
Tumbleweed Communications Corp.......... 400 6,850
Unisys Corp............................. 3,600 45,900
Vignette Corp........................... 1,200 35,775
Wind River Systems, Inc................. 600 24,637
-----------
1,158,992
-----------
CONSTRUCTION (CEMENT & AGGREGATES)--1.7%
Martin Marietta Materials, Inc.......... 3,600 138,240
Southdown, Inc.......................... 3,700 262,237
Vulcan Materials Co..................... 5,500 231,000
-----------
631,477
-----------
CONSUMER FINANCE--0.2%
Household International, Inc............ 1,300 65,406
CONTAINERS & PACKAGING (PAPER)--0.2%
Packaging Corp. of America.............. 2,400 35,250
Temple-Inland, Inc...................... 600 26,850
-----------
62,100
-----------
ELECTRIC COMPANIES--6.0%
Ameren Corp............................. 1,400 55,650
Avista Corp............................. 6,500 145,844
Cinergy Corp............................ 5,000 153,125
Consolidated Edison, Inc................ 4,000 140,750
CP&L Energy, Inc........................ 7,400 298,312
Dominion Resources, Inc................. 907 54,023
DQE, Inc................................ 3,300 115,294
Duke Energy Corp........................ 1,000 86,437
Exelon Corp............................. 4,600 276,575
</TABLE>
14 See Notes to Financial Statements
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
ELECTRIC COMPANIES--CONTINUED
FPL Group, Inc.......................... 2,900 $ 191,400
Kansas City Power & Light Co............ 2,600 62,562
Montana Power Co. (The)................. 1,000 28,250
Niagara Mohawk Holdings, Inc............ 13,100 209,600
Sierra Pacific Resources................ 12,700 218,281
Western Resources, Inc.................. 11,800 252,225
-----------
2,288,328
-----------
ELECTRICAL EQUIPMENT--1.1%
Active Power, Inc....................... 1,200 45,750
Cohu, Inc............................... 1,800 28,462
Solectron Corp.......................... 4,400 193,600
Thomas & Betts Corp..................... 10,100 152,762
-----------
420,574
-----------
ELECTRONICS (COMPONENT DISTRIBUTORS)--0.3%
Grainger (W.W.), Inc.................... 3,500 111,781
ELECTRONICS (INSTRUMENTATION)--0.7%
Genomic Solutions, Inc.................. 1,400 19,600
LightPath Technologies, Inc. Class A.... 1,000 27,250
Mechanical Technology, Inc.............. 1,600 12,000
Molecular Devices Corp.................. 400 27,350
Tektronix, Inc.......................... 1,450 103,312
Zygo Corp............................... 1,300 64,350
-----------
253,862
-----------
ELECTRONICS (SEMICONDUCTORS)--0.4%
Conexant Systems, Inc................... 700 18,419
LSI Logic Corp.......................... 600 19,725
National Semiconductor Corp............. 800 20,800
QLogic Corp............................. 400 38,700
Siliconix, Inc.......................... 1,600 69,200
-----------
166,844
-----------
ENGINEERING & CONSTRUCTION--0.1%
Foster Wheeler Corp..................... 5,400 39,825
EQUIPMENT (SEMICONDUCTORS)--1.0%
EMCORE Corp............................. 1,800 73,800
Ibis Technology Corp.................... 900 34,087
Photronic, Inc.......................... 7,200 162,450
PRI Automation, Inc..................... 1,000 22,625
Ultratech Stepper, Inc.................. 800 18,800
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
EQUIPMENT (SEMICONDUCTORS)--CONTINUED
Veeco Instruments, Inc.................. 900 $ 59,583
-----------
371,345
-----------
FINANCIAL (DIVERSIFIED)--1.4%
CompuCredit Corp........................ 1,600 49,400
IndyMac Bancorp, Inc.................... 4,100 85,587
Markel Corp............................. 2,300 333,212
Pinnacle Holdings, Inc.................. 3,600 56,700
-----------
524,899
-----------
FOODS--2.7%
Dole Food Co., Inc...................... 3,100 37,394
General Mills, Inc...................... 4,000 167,000
Heinz (H.J.) Co......................... 9,400 394,212
Hershey Foods Corp...................... 5,800 315,012
Quaker Oats Co. (The)................... 1,300 106,031
-----------
1,019,649
-----------
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--0.3%
Speedway Motorsports, Inc............... 5,600 97,650
HEALTH CARE (DIVERSIFIED)--0.8%
American Home Products Corp............. 4,600 292,100
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--1.6%
Allergan, Inc........................... 900 75,656
Antigenics, Inc......................... 1,500 22,406
Cubist Pharmaceuticals, Inc............. 400 17,188
EntreMed, Inc........................... 2,900 90,263
Genentech, Inc.......................... 1,400 115,500
Guilford Pharmaceuticals, Inc........... 3,000 74,063
Lilly (Eli) & Co........................ 1,900 169,813
Onyx Pharmaceuticals, Inc............... 1,900 28,500
Titan Pharmaceuticals, Inc.............. 700 29,456
-----------
622,845
-----------
HEALTH CARE (GENERIC AND OTHER)--0.3%
Watson Pharmaceuticals, Inc............. 1,600 100,100
HEALTH CARE (MANAGED CARE)--0.0%
PacifiCare Health Systems, Inc.......... 400 4,175
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--2.7%
Bard (C.R.), Inc........................ 2,900 121,438
Bausch & Lomb, Inc...................... 1,200 46,275
Baxter International, Inc............... 3,000 246,563
Edwards Lifesciences Corp............... 7,900 106,156
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--CONTINUED
Guidant Corp............................ 800 $ 42,350
Medtronic, Inc.......................... 2,600 141,213
STERIS Corp............................. 8,900 133,500
Varian Medical Systems, Inc............. 2,800 136,850
Visible Genetics, Inc................... 1,400 42,350
-----------
1,016,695
-----------
HEALTH CARE (SPECIALIZED SERVICES)--0.4%
Discovery Partners International........ 800 12,000
Exelixis, Inc........................... 2,000 44,125
Maxygen, Inc............................ 1,100 44,275
Symyx Technologies...................... 900 42,469
-----------
142,869
-----------
HOMEBUILDING--0.1%
Champion Enterprises, Inc............... 7,600 29,450
HOUSEHOLD FURNISHINGS & APPLIANCES--1.0%
Ethan Allen Interiors, Inc.............. 8,100 236,925
Whirlpool Corp.......................... 3,400 147,900
-----------
384,825
-----------
HOUSEHOLD PRODUCTS (NON-DURABLE)--1.1%
Kimberly-Clark Corp..................... 2,300 151,800
Procter & Gamble Co. (The).............. 3,800 271,463
-----------
423,263
-----------
HOUSEWARES--0.0%
Newell Rubbermaid, Inc.................. 31 595
INSURANCE (LIFE/HEALTH)--1.7%
American General Corp................... 1,900 152,950
Jefferson-Pilot Corp.................... 500 34,375
John Hancock Financial Services, Inc.... 1,600 50,600
Lincoln National Corp................... 3,500 169,313
MONY Group, Inc. (The).................. 5,500 226,188
-----------
633,426
-----------
INSURANCE (PROPERTY-CASUALTY)--2.9%
21st Century Insurance Group............ 4,700 77,844
Allmerica Financial Corp................ 1,400 88,288
Chubb Corp. (The)....................... 400 33,775
Enhance Financial Services Group,
Inc..................................... 2,400 27,900
Horace Mann Educators Corp.............. 11,000 184,938
MBIA, Inc............................... 1,200 87,225
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
INSURANCE (PROPERTY-CASUALTY)--CONTINUED
Ohio Casualty Corp...................... 5,000 $ 42,031
Progressive Corp. (The)................. 1,200 117,900
SAFECO Corp............................. 4,600 111,263
Transatlantic Holdings, Inc............. 1,300 120,738
Trenwick Group Ltd...................... 11,100 217,838
-----------
1,109,740
-----------
INSURANCE BROKERS--0.7%
Gallagher (Arthur J.) & Co.............. 1,000 63,125
Marsh & McLennan Cos., Inc.............. 1,500 196,125
-----------
259,250
-----------
INVESTMENT BANKING/BROKERAGE--1.0%
Legg Mason, Inc......................... 1,100 57,131
Paine Webber Group, Inc................. 3,000 213,750
Southwest Securities Group, Inc......... 3,800 107,350
-----------
378,231
-----------
INVESTMENT MANAGEMENT--0.7%
Acacia Research Corp.................... 1,100 34,994
American Capital Strategies Ltd......... 5,900 130,169
Stilwell Financial, Inc................. 2,200 98,588
-----------
263,751
-----------
IRON & STEEL--0.7%
Cleveland-Cliffs, Inc................... 2,200 45,375
UCAR International, Inc................. 4,500 37,125
USX-U.S. Steel Group.................... 12,800 204,000
-----------
286,500
-----------
LEISURE TIME (PRODUCTS)--1.0%
Fleetwood Enterprises, Inc.............. 12,400 163,525
Mattel, Inc............................. 17,900 231,581
-----------
395,106
-----------
MACHINERY (DIVERSIFIED)--0.2%
Kaydon Corp............................. 2,400 52,650
Terex Corp.............................. 3,200 39,400
-----------
92,050
-----------
MANUFACTURING (DIVERSIFIED)--0.8%
Eaton Corp.............................. 3,500 238,219
Pentair, Inc............................ 1,400 41,738
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
MANUFACTURING (DIVERSIFIED)--CONTINUED
Textron, Inc............................ 600 $ 30,263
-----------
310,220
-----------
MANUFACTURING (SPECIALIZED)--0.8%
Astec Industries, Inc................... 2,600 26,813
Briggs & Stratton Corp.................. 4,700 167,731
Sealed Air Corp......................... 1,500 72,188
UNOVA, Inc.............................. 10,000 48,125
-----------
314,857
-----------
METALS MINING--1.4%
Optical Cable Corp...................... 1,600 25,500
Phelps Dodge Corp....................... 11,100 518,925
-----------
544,425
-----------
NATURAL GAS--1.9%
Atmos Energy Corp....................... 1,300 30,063
Eastern Enterprises..................... 2,500 160,938
MCN Energy Group, Inc................... 12,000 295,500
Southwest Gas Corp...................... 1,000 20,875
Washington Gas Light Co................. 7,900 201,450
-----------
708,826
-----------
OFFICE EQUIPMENT & SUPPLIES--0.2%
Reynolds & Reynolds Co. (The) Class A... 3,800 67,925
OIL & GAS (DRILLING & EQUIPMENT)--1.6%
Diamond Offshore Drilling, Inc.......... 3,300 114,056
Friede Goldman Halter, Inc.............. 4,300 24,725
Halliburton Co.......................... 5,800 214,963
Schlumberger Ltd........................ 800 60,900
SEACOR SMIT, Inc........................ 1,050 43,969
Transocean Sedco Forex, Inc............. 3,000 159,000
-----------
617,613
-----------
OIL & GAS (EXPLORATION & PRODUCTION)--0.1%
Basin Exploration, Inc.................. 1,600 31,700
Forest Oil Corp......................... 1,700 23,481
-----------
55,181
-----------
OIL & GAS (REFINING & MARKETING)--0.7%
Ashland, Inc............................ 2,400 78,600
Pennzoil-Quaker State Co................ 16,700 196,225
-----------
274,825
-----------
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
PAPER & FOREST PRODUCTS--3.2%
Boise Cascade Corp...................... 2,000 $ 57,375
Bowater, Inc............................ 4,000 216,500
Chesapeake Corp......................... 4,500 88,313
Georgia-Pacific Corp. (Timber Group).... 16,000 453,000
International Paper Co.................. 2,600 95,225
Smurfit-Stone Container Corp............ 8,900 120,150
Weyerhaeuser Co......................... 3,700 173,669
-----------
1,204,232
-----------
PHOTOGRAPHY/IMAGING--0.7%
Eastman Kodak Co........................ 3,400 152,575
Imation Corp............................ 3,800 75,288
Polaroid Corp........................... 3,500 35,219
-----------
263,082
-----------
PUBLISHING--1.2%
Harcourt General, Inc................... 1,300 72,865
Houghton Mifflin Co..................... 6,700 246,644
McGraw-Hill Cos., Inc. (The)............ 1,200 77,025
Meredith Corp........................... 1,500 47,625
-----------
444,159
-----------
PUBLISHING (NEWSPAPERS)--2.5%
Dow Jones & Co., Inc.................... 1,800 105,975
Gannett Co., Inc........................ 4,000 232,000
Knight-Ridder, Inc...................... 1,400 70,350
Scripps (E.W.) Co. (The) Class A........ 1,500 87,656
Tribune Co.............................. 6,300 233,494
Washington Post Co. (The) Class B....... 400 213,650
-----------
943,125
-----------
RAILROADS--1.2%
CSX Corp................................ 3,100 78,469
GATX Corp............................... 4,300 180,869
Union Pacific Corp...................... 1,600 75,000
Wisconsin Central Transportation
Corp.................................... 8,900 114,031
-----------
448,369
-----------
REITS--2.7%
BRE Properties, Inc. Class A............ 3,600 113,850
Cousins Properties, Inc................. 12,450 323,700
Health Care Property Investors, Inc..... 7,100 208,563
Hospitality Properties Trust............ 8,400 181,125
JDN Realty Corp......................... 3,000 32,813
</TABLE>
See Notes to Financial Statements 17
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
REITS--CONTINUED
Post Properties, Inc.................... 4,500 $ 157,219
-----------
1,017,270
-----------
RESTAURANTS--0.5%
McDonald's Corp......................... 6,000 186,000
RETAIL (DEPARTMENT STORES)--0.9%
Dillard's, Inc. Class A................. 4,400 46,200
May Department Stores Co. (The)......... 8,400 220,500
Saks, Inc............................... 8,600 87,613
-----------
354,313
-----------
RETAIL (DISCOUNTERS)--0.7%
Ames Department Stores, Inc............. 8,300 32,681
Dollar General Corp..................... 10,450 161,975
ShopKo Stores, Inc...................... 10,700 68,213
-----------
262,869
-----------
RETAIL (DRUG STORES)--0.1%
Duane Reade, Inc........................ 1,000 29,188
RETAIL (FOOD CHAINS)--0.0%
Albertson's, Inc........................ 92 2,179
RETAIL (GENERAL MERCHANDISE)--0.8%
Target Corp............................. 4,100 113,263
Wal-Mart Stores, Inc.................... 4,000 181,500
-----------
294,763
-----------
RETAIL (HOME SHOPPING)--0.1%
Lands' End, Inc......................... 1,500 38,475
RETAIL (SPECIALTY)--0.5%
Claire's Stores, Inc.................... 7,200 144,900
Electronics Boutique Holdings Corp...... 2,600 40,625
-----------
185,525
-----------
RETAIL (SPECIALTY-APPAREL)--0.7%
Buckle, Inc. (The)...................... 2,000 33,625
Limited, Inc. (The)..................... 9,600 242,400
-----------
276,025
-----------
SERVICES (ADVERTISING/MARKETING)--0.8%
CMGI, Inc............................... 700 11,813
Lamar Advertising Co.................... 1,200 57,600
Omnicom Group, Inc...................... 1,900 175,275
True North Communications, Inc.......... 1,800 67,838
-----------
312,526
-----------
SERVICES (COMMERCIAL & CONSUMER)--1.4%
DeVry, Inc.............................. 5,700 210,544
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
SERVICES (COMMERCIAL & CONSUMER)--CONTINUED
Gartner Group, Inc. Class A............. 2,300 $ 21,850
Hertz Corp. (The) Class A............... 2,100 69,038
InterDigital Communications Corp........ 1,000 10,938
Key3Media Group, Inc.................... 50 475
Sotheby's Holdings, Inc. Class A........ 8,400 228,375
-----------
541,220
-----------
SERVICES (COMPUTER SYSTEMS)--0.4%
Computer Sciences Corp.................. 2,400 151,200
Sabre Holdings Corp..................... 81 2,708
-----------
153,908
-----------
SERVICES (DATA PROCESSING)--0.3%
CheckFree Corp.......................... 500 24,875
First Data Corp......................... 1,800 90,225
-----------
115,100
-----------
SPECIALTY PRINTING--0.2%
Deluxe Corp............................. 1,300 29,331
Valassis Communications, Inc............ 2,400 66,600
-----------
95,931
-----------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--1.5%
Nextel Communications, Inc. Class A..... 3,900 149,906
Nextel Partners, Inc. Class A........... 1,200 29,400
Rural Cellular Corp..................... 400 21,500
Teligent, Inc. Class A.................. 1,500 11,391
Triton PCS Holdings, Inc. Class A....... 1,500 69,750
VoiceStream Wireless Corp............... 700 92,050
Western Wireless Corp. Class A.......... 4,400 209,000
-----------
582,997
-----------
TELECOMMUNICATIONS (LONG DISTANCE)--0.3%
Covad Communications Group, Inc......... 50 264
Level 3 Communications, Inc............. 500 23,844
NEON Communications, Inc................ 1,300 15,681
Net2Phone, Inc.......................... 600 11,138
NTL, Inc................................ 600 26,363
Sprint Corp. (FON Group)................ 2,200 56,100
-----------
133,390
-----------
TELEPHONE--0.4%
SBC Communications, Inc................. 600 34,613
Verizon Communications.................. 2,100 121,406
-----------
156,019
-----------
TEXTILES (SPECIALTY)--0.1%
Wellman, Inc............................ 3,100 46,500
</TABLE>
18 See Notes to Financial Statements
<PAGE>
Phoenix-Euclid Market Neutral Fund
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
TRUCKERS--0.3%
United Parcel Service, Inc. Class B..... 1,900 $ 115,425
TRUCKS & PARTS--0.2%
Cummins Engine Co., Inc................. 2,500 85,000
WASTE MANAGEMENT--0.6%
Newpark Resources, Inc.................. 23,800 214,200
WATER UTILITIES--0.3%
E' Town Corp............................ 1,600 107,800
------------------------------------------------------------------
TOTAL COMMON STOCKS
(PROCEEDS $31,727,648) 31,600,514
------------------------------------------------------------------
FOREIGN COMMON STOCKS--9.1%
AUTOMOBILES--0.3%
DaimlerChrysler AG (Germany)............ 2,300 105,570
BANKS (MONEY CENTER)--0.1%
Bank of Tokyo-Mitsubishi, Ltd. (The) ADR
(Japan)................................. 4,100 49,200
BEVERAGES (ALCOHOLIC)--1.0%
Diageo PLC ADR (United Kingdom)......... 9,600 361,200
BEVERAGES (NON-ALCOHOLIC)--0.2%
Panamerican Beverages, Inc. Class A
(Mexico)................................ 4,200 69,300
BROADCASTING (TELEVISION, RADIO & CABLE)--0.0%
United Pan-Europe Communications NV
(Netherlands)........................... 1,000 18,250
CHEMICALS--0.9%
Aventis SA ADR (France)................. 4,600 331,487
CHEMICALS (SPECIALTY)--0.4%
Potash Corporation of Saskatchewan, Inc.
(Canada)................................ 2,300 136,562
COMMUNICATIONS EQUIPMENT--0.4%
ECI Telecom Ltd. (Israel)............... 2,800 66,150
Gilat Satellite Networks Ltd.
(Israel)................................ 1,000 51,187
Korea Thrunet Co., Ltd. (Korea)......... 2,700 17,381
-----------
134,718
-----------
COMPUTERS (SOFTWARE & SERVICES)--0.2%
Fundtech Ltd. (Israel).................. 1,900 32,300
Internet Initiative Japan, Inc.
(Japan)................................. 400 10,000
Riverdeep Group PLC ADR (Ireland)....... 900 20,025
Satyam Infoway Ltd. ADR (India)......... 1,300 10,156
-----------
72,481
-----------
ELECTRIC COMPANIES--0.4%
Enersis SA ADR (Chile).................. 1,334 23,679
ScottishPower PLC ADR (United
Kingdom)................................ 4,800 144,900
-----------
168,579
-----------
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C> <C>
ENTERTAINMENT--0.3%
News Corp. Ltd. (The) ADR (Australia)... 3,000 $ 129,000
FINANCIAL (DIVERSIFIED)--0.7%
XL Capital Ltd. Class A (Bermuda)....... 3,700 284,438
FOODS--1.3%
Unilever NV NY Registered Shares
(Netherlands)........................... 4,700 238,819
Unilever PLC ADR (United Kingdom)....... 8,800 245,300
-----------
484,119
-----------
GOLD & PRECIOUS METALS MINING--0.2%
Agnico-Eagle Mines Ltd. (Canada)........ 17,500 92,969
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.1%
AstraZeneca Group PLC ADR (United
Kingdom)................................ 900 42,919
HOMEBUILDING--0.2%
Trizec Hahn Corp. (Canada).............. 4,800 71,700
IRON & STEEL--0.2%
Corus Group PLC ADR (United Kingdom).... 10,000 90,000
LODGING-HOTELS--0.5%
Four Seasons Hotels, Inc. (Canada)...... 2,700 197,100
OIL & GAS (DRILLING & EQUIPMENT)--0.1%
Petroleum Geo-Services ASA ADR
(Norway)................................ 2,300 31,481
OIL (INTERNATIONAL INTEGRATED)--1.1%
Total Fina Elf SA ADR (France).......... 4,100 293,663
ENI SPA ADR (Italy)..................... 2,200 119,075
-----------
412,738
-----------
SERVICES (COMMERCIAL & CONSUMER)--0.1%
chinadotcom Corp. Class A (Hong Kong)... 2,400 24,300
TELECOMMUNICATIONS (LONG DISTANCE)--0.4%
BCE, Inc. (Canada)...................... 1,000 27,063
Telecom Italia SPA ADR (Italy).......... 700 82,250
Telecom Corporation of New Zealand Ltd.
ADR (New Zealand)....................... 1,900 34,081
-----------
143,394
-----------
TELEPHONE--0.0%
Pacific Century Cyberworks Ltd. (Hong
Kong)................................... 41 320
------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(PROCEEDS $3,465,510) 3,451,825
------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL SECURITIES SOLD SHORT
(PROCEEDS $35,193,158) 35,052,339(a)
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of securities
sold short is comprised of gross appreciation of $4,249,842 and gross
depreciation of $3,961,560 for federal income tax purposes. At October 31,
2000, the aggregate proceeds of securities for federal income tax purposes
was $35,340,621.
See Notes to Financial Statements 19
<PAGE>
Phoenix-Euclid Market Neutral Fund
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS
Investment securities at value (Identified cost $35,529,755) $ 38,202,667
Cash 983,357
Deposits with broker for securities sold short 34,268,158
Receivables
Investment securities sold 890,881
Dividends and interest 161,833
Fund shares sold 1,706
--------------
Total assets 74,508,602
--------------
LIABILITIES
Securities sold short at value (Proceeds $35,193,158) 35,052,339
Payables
Investment securities purchased 784,825
Fund shares repurchased 369,033
Investment advisory fee 84,557
Dividends on short sales 41,665
Transfer agent fee 19,809
Distribution fee 18,933
Trustees' fee 3,208
Financial agent fee 1,948
Accrued expenses 100,077
--------------
Total liabilities 36,476,394
--------------
NET ASSETS $ 38,032,208
==============
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 56,968,126
Undistributed net investment income 985,092
Accumulated net realized loss (22,734,741)
Net unrealized appreciation on investments 2,672,912
Net unrealized appreciation on securities sold short 140,819
--------------
NET ASSETS $ 38,032,208
==============
CLASS A
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $7,205,287) 711,302
Net asset value per share $10.13
Offering price per share $10.13/(1-5.75%) $10.75
CLASS B
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $11,648,501) 1,156,795
Net asset value and offering price per share $10.07
CLASS C
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $6,886,067) 685,881
Net asset value and offering price per share $10.04
CLASS I
Shares of beneficial interest outstanding, no par value,
unlimited authorization (Net Assets $12,292,353) 1,219,533
Net asset value and offering price per share $10.08
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 3,115,867
Dividends 1,053,048
Foreign taxes withheld (11,946)
--------------
Total investment income 4,156,969
--------------
EXPENSES
Investment advisory fee 918,260
Distribution fee, Class A 35,306
Distribution fee, Class B 204,393
Distribution fee, Class C 140,739
Financial agent fee 41,822
Transfer agent 93,504
Custodian 81,766
Professional 79,557
Printing 53,419
Registration 44,068
Trustees 24,015
Miscellaneous 32,332
--------------
Expenses before dividends on short sales 1,749,181
Dividends on short sales 1,117,676
Less expenses borne by investment adviser (128,104)
--------------
Net expenses 2,738,753
--------------
NET INVESTMENT INCOME 1,418,216
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 23,468
Net realized loss on securities sold short (2,359,172)
Net realized gain on futures contracts 198,401
Net change in unrealized appreciation (depreciation) on
investments 3,374,896
Net change in unrealized appreciation (depreciation) on
securities sold short (6,723,333)
--------------
NET LOSS ON INVESTMENTS (5,485,740)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (4,067,524)
==============
</TABLE>
20 See Notes to Financial Statements
<PAGE>
Phoenix-Euclid Market Neutral Fund
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/00 10/31/99
------------ ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 1,418,216 $ 2,013,700
Net realized gain (loss) (2,137,303) (8,588,059)
Net change in unrealized appreciation
(depreciation) (3,348,437) 4,108,654
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (4,067,524) (2,465,705)
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (415,480) (493,481)
Net investment income, Class B (566,873) (368,614)
Net investment income, Class C (406,730) (464,216)
Net investment income, Class I (513,147) (329,267)
------------ ------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (1,902,230) (1,655,578)
------------ ------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (197,524
and 1,304,055 shares, respectively) 2,010,550 13,984,222
Net asset value of shares issued from
reinvestment of distributions
(34,119 and 38,748 shares,
respectively) 348,013 425,449
Cost of shares repurchased (1,453,942
and 3,038,214 shares, respectively) (14,594,012) (32,084,881)
------------ ------------
Total (12,235,449) (17,675,210)
------------ ------------
CLASS B
Proceeds from sales of shares (27,101
and 740,976 shares, respectively) 271,146 7,877,039
Net asset value of shares issued from
reinvestment of distributions
(41,267 and 23,293 shares,
respectively) 420,920 255,754
Cost of shares repurchased (2,139,353
and 1,959,172 shares, respectively) (21,245,547) (20,460,298)
------------ ------------
Total (20,553,481) (12,327,505)
------------ ------------
CLASS C
Proceeds from sales of shares (40,045
and 473,559 shares, respectively) 421,033 5,033,700
Net asset value of shares issued from
reinvestment of distributions
(33,190 and 33,377 shares,
respectively) 337,208 365,808
Cost of shares repurchased (1,783,368
and 3,379,228 shares, respectively) (17,737,711) (35,257,389)
------------ ------------
Total (16,979,470) (29,857,881)
------------ ------------
CLASS I
Proceeds from sales of shares (0 and
531,705 shares, respectively) -- 5,589,480
Net asset value of shares issued from
reinvestment of distributions
(50,706 and 29,941 shares,
respectively) 513,147 326,358
Cost of shares repurchased (671,071
and 643,924 shares, respectively) (6,593,292) (6,928,065)
------------ ------------
Total (6,080,145) (1,012,227)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (55,848,545) (60,872,823)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS (61,818,299) (64,994,106)
NET ASSETS
Beginning of period 99,850,507 164,844,613
------------ ------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$985,092 AND $1,486,836,
RESPECTIVELY] $ 38,032,208 $ 99,850,507
============ ============
</TABLE>
See Notes to Financial Statements 21
<PAGE>
Phoenix-Euclid Market Neutral Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------
FROM
YEAR ENDED OCTOBER 31 INCEPTION
----------------------- 5/1/98 TO
2000 1999 10/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.68 $ 10.84 $ 11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.26(6) 0.26 0.09
Net realized and unrealized gain (loss) (0.55) (0.29) (0.59)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.29) (0.03) (0.50)
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.26) (0.13) --
------- ------- -------
Change in net asset value (0.55) (0.16) (0.50)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 10.13 $ 10.68 $ 10.84
======= ======= =======
Total return(1) (2.65)% (0.40)% (4.41)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $7,205 $20,648 $39,331
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses (excluding dividends on
short sales, after expense reimbursement) 2.33% 2.34% 2.30%(2)
Operating expenses (including dividends on
short sales, after expense reimbursement) 4.15%(4) 3.88% 3.65%(2)(4)
Net investment income 2.63% 1.94% 2.33%(2)
Portfolio turnover rate 276% 453% 216%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------
FROM
YEAR ENDED OCTOBER 31 INCEPTION
----------------------- 5/1/98 TO
2000 1999 10/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.62 $ 10.81 $ 11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.19(6) 0.15 0.06
Net realized and unrealized gain (loss) (0.55) (0.26) (0.59)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.36) (0.11) (0.53)
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.19) (0.08) --
------- ------- -------
Change in net asset value (0.55) (0.19) (0.53)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 10.07 $ 10.62 $ 10.81
======= ======= =======
Total return(1) (3.38)% (1.02)% (4.67)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $11,649 $34,290 $47,794
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses (excluding dividends on
short sales, after expense reimbursement) 3.03% 3.04% 3.00%(2)
Operating expenses (including dividends on
short sales, after expense reimbursement) 4.85%(5) 4.58% 4.35%(2)(5)
Net investment income 1.94% 1.24% 1.63%(2)
Portfolio turnover rate 276% 453% 216%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets (including dividends on
short sales) would have been 4.35% and 3.69% for the periods ended
October 31, 2000 and 1998, respectively.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets (including dividends on
short sales) would have been 5.05% and 4.39% for the periods ended
October 31, 2000 and 1998, respectively.
(6) Computed using average shares outstanding.
22 See Notes to Financial Statements
<PAGE>
Phoenix-Euclid Market Neutral Fund
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------
FROM
YEAR ENDED OCTOBER 31 INCEPTION
----------------------- 5/1/98 TO
2000 1999 10/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.59 $ 10.80 $ 11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.19(6) 0.19 0.06
Net realized and unrealized gain (loss) (0.55) (0.31) (0.60)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.36) (0.12) (0.54)
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.19) (0.09) --
------- ------- -------
Change in net asset value (0.55) (0.21) (0.54)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 10.04 $ 10.59 $ 10.80
======= ======= =======
Total return(1) (3.31)% (1.12)% (4.76)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $6,886 $25,364 $56,874
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses (excluding dividends on
short sales, after expense reimbursement) 3.03% 3.04% 3.00%(2)
Operating expenses (including dividends on
short sales, after expense reimbursement) 4.83%(4) 4.58% 4.35%(2)(4)
Net investment income 1.93% 1.24% 1.63%(2)
Portfolio turnover rate 276% 453% 216%
</TABLE>
<TABLE>
<CAPTION>
CLASS I
-----------------------------------------
FROM
YEAR ENDED OCTOBER 31 INCEPTION
----------------------- 5/1/98 TO
2000 1999 10/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.62 $ 10.85 $ 11.34
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.29(6) 0.28 0.14
Net realized and unrealized gain (loss) (0.54) (0.28) (0.63)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS (0.25) -- (0.49)
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.29) (0.23) --
------- ------- -------
Change in net asset value (0.54) (0.23) (0.49)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 10.08 $ 10.62 $ 10.85
======= ======= =======
Total return(1) (2.37)% (0.01)% (4.32)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $12,292 $19,549 $20,846
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses (excluding dividends on
short sales, after expense reimbursement) 2.03% 2.04% 2.00%(2)
Operating expenses (including dividends on
short sales, after expense reimbursement) 3.88%(5) 3.58% 3.35%(2)(5)
Net investment income 2.96% 2.24% 2.63%(2)
Portfolio turnover rate 276% 453% 216%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets (including dividends on
short sales) would have been 5.03% and 4.39% for the periods ended
October 31, 2000 and 1998, respectively.
(5) If the investment adviser had not waived fees and reimbursed expenses, the
ratio of operating expenses to average net assets (including dividends on
short sales) would have been 4.11% and 3.39% for the periods ended
October 31, 2000 and 1998, respectively.
(6) Computed using average shares outstanding.
See Notes to Financial Statements 23
<PAGE>
PHOENIX-EUCLID MARKET NEUTRAL FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix-Euclid Funds (the "Trust") is organized as a Delaware business trust
and is registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. The Trust presently
consists of one investment portfolio: Phoenix-Euclid Market Neutral Fund (the
"Fund"). The Fund seeks long-term capital appreciation while maintaining minimal
portfolio exposure to general equity market risk.
The Fund offers Class A, Class B, Class C and Class I shares. Effective
April 3, 2000, Class A shares are sold with a front-end sales charge of up to
5.75%. Prior to that date, the maximum sales charge was 5.50%. 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 1.25% contingent deferred sales charge if redeemed within one year of
purchase. Class I shares have no sales charge. Each class of shares has
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 the Fund are borne pro rata by the holders of each class 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 Fund in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets, liabilities,
revenues and expenses. Actual results could differ from those estimates.
A. SECURITY VALUATION:
Equity securities are valued at the last sale price, or if there had been no
sale that day, at the last bid price. Debt securities are valued on the basis of
broker quotations or valuations provided by a pricing service which utilizes
information with respect to recent sales, market transactions in comparable
securities, quotations from dealers, and various relationships between
securities in determining value. Short-term investments having a remaining
maturity of 60 days or less are valued at amortized cost which approximates
market. All other securities and assets are valued at fair value as determined
in good faith by or under the direction of the Trustees.
B. SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are recorded on the trade date. Interest income is
recorded on the accrual basis. Dividend income is recorded on the ex-dividend
date or, in the case of certain foreign securities, as soon as the Fund is
notified. The Fund does not amortize premiums, but does amortize discounts using
the effective interest method. Realized gains and losses are determined on the
identified cost basis.
C. INCOME TAXES:
It is the policy of the Fund 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, the 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 accounting principles generally accepted in
the United States. These differences include the treatment of non-taxable
dividends, expiring capital loss carryforwards, 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, 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 Fund 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. FUTURES CONTRACTS:
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. The Fund may enter into financial
futures contracts as a hedge against anticipated changes in the market value of
their portfolio securities. Upon entering into a futures contract, the Fund is
required to pledge to the broker an amount of cash and/or securities equal to
the "initial margin" requirements of the futures exchange on which the contract
is traded. Pursuant to the contract, the Fund agrees to receive from or pay to
24
<PAGE>
PHOENIX-EUCLID MARKET NEUTRAL FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (CONTINUED)
the broker an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as daily variation margin and are
recorded by the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. The potential risk to the Fund is that the change in value of the
futures contract may not correspond to the change in value of the hedged
instruments.
G. OPTIONS:
The 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.
The 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.
The Fund may purchase options which are included in the Fund's 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. 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, 2000, the value of securities
sold short amounted to $35,052,339 against which collateral of $69,415,825 was
held. The collateral includes the deposits with broker for securities sold short
and the common stocks held long, as shown in the Schedule of Investments and
Securities Sold Short.
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. The Fund, through its custodian,
takes possession of securities collateralizing the repurchase agreement. The
collateral is marked-to-market daily to ensure that the 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.
J. BORROWINGS:
The Fund is a participant in a Liquidity Line of Credit with The Bank of New
York for $100,000,000. The Fund has not had to use the Line of Credit since it
became a participant on December 16, 1998. If a Fund uses the Line of Credit, it
will be collateralized by that Fund's portfolio.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Fund, the Adviser, Euclid Advisors
LLC, a wholly-owned subsidiary of Zweig/Glaser Advisers LLC, which is a
wholly-owned subsidiary of Phoenix Investment Partners, Ltd., is entitled to a
fee at an annual rate of 1.50% of the average daily net assets of the Fund.
Effective February 28, 2000, the Adviser has voluntarily agreed to reimburse
the Fund to the extent that total expenses (excluding taxes, interest, dividends
on short sales, brokerage commissions, 12b-1 fees and extraordinary expenses)
exceed 2.00% of the Fund's average daily net assets through February 28, 2001.
As Distributor of the Trust's shares, Phoenix Equity Planning Corporation
("PEPCO"), an indirect majority-owned subsidiary of Phoenix Home Life Mutual
Insurance Company ("PHL"), has advised the Fund that it retained net selling
commissions of $1,123 for Class A shares and deferred sales charges of $515,912
for Class B shares and $6,219 for Class C shares for the year ended October 31,
2000. In addition, the Fund pays PEPCO a distribution fee at an annual rate of
0.30% for Class A shares and 1.00% for Class B and Class C shares applied to the
average daily net assets of each Fund. There is no distribution fee for Class I
shares. The Distributor has advised the Fund that of the total amount expensed
for the year ended October 31, 2000, $191,031 was retained by the Distributor
and $189,407 was paid out to unaffiliated participants.
25
<PAGE>
PHOENIX-EUCLID MARKET NEUTRAL FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (CONTINUED)
Effective November 1, 1999, PEPCO became Financial Agent of the Fund, and
receives a fee for financial reporting, tax services and oversight of subagent's
performance based upon an annual rate of 0.07% of the average daily net assets
of the Fund for the first $50 million; 0.06% of such value between $50 million
and $200 million; and 0.01% of such value in excess of $200 million.
Prior to that date, The Bank of New York was the Financial Agent of the Fund
and was paid according to the same fee schedule.
Effective November 1, 1999, PFPC, Inc., a subagent to PEPCO, receives a fee
which ranges from 0.085% to 0.0125% of the average daily net asset values of the
Fund. Certain minimum fees and fee waivers may apply.
PEPCO serves as the Fund's Transfer Agent with State Street Bank and Trust
("State Street") as sub-transfer agent. For the year ended October 31, 2000,
transfer agent fees were $93,504 of which PEPCO retained $6,095 which is net of
fees paid to State Street.
3. PURCHASE AND SALE OF SECURITIES
During the year ended October 31, 2000, purchases and sales of investments,
excluding short-term securities, repurchase agreements and futures contracts,
were as follows:
<TABLE>
<S> <C>
Purchases............................... $135,774,702
Sales................................... 197,265,588
Short sales............................. 129,210,675
Purchases to cover short sales.......... 195,770,823
</TABLE>
There were no purchases or sales of long-term U.S. Government Securities.
4. OTHER
As of October 31, 2000, the Fund had 1 shareholder who individually owned
13.1% of total net assets, who is not affiliated with PHL or PXP.
5. CAPITAL LOSS CARRYOVERS
At October 31, 2000, the Fund had capital loss carryovers of $9,389,382,
$7,745,316 and $5,086,416 expiring in 2006, 2007 and 2008 respectively. These
may be used to offset future capital gains.
6. RECLASSIFICATION OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Funds have recorded
reclassifications in the capital accounts. These reclassifications have no
impact on the net asset value of each of the Funds and are designed generally to
present undistributed income and realized gains on a tax basis which is
considered to be more informative to the shareholder. As of October 31, 2000,
the Fund decreased undistributed net investment income by $17,730, decreased
accumulated net realized loss by $7,361 and increased capital paid in on shares
of beneficial interest by $10,369.
This report is not authorized for distribution to prospective investors in the
Phoenix-Euclid Market Neutral Fund unless preceded or accompanied by an
effective prospectus which includes information concerning the sales charge, the
Fund's record and other pertinent information.
26
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[PRICEWATERHOUSECOOPERS LOGO]
To the Board of Trustees and Shareholders 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 (the "Fund") at October 31, 2000, and the
results of its operations for the year then ended, the changes in its net assets
for each of the two years then ended and the financial highlights for the
periods indicated, in conformity with accounting principles generally accepted
in the United States of America. 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 auditing standards
generally accepted in the United States of America, 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, 2000 by correspondence with the custodian and brokers, provide a
reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
New York, New York
December 11, 2000
27
<PAGE>
RESULTS OF SHAREHOLDER MEETING (UNAUDITED)
A special meeting of Shareholders of the Phoenix-Euclid Market Neutral Fund was
held on October 12, 2000 to approve the following matters:
1. Amend the fundamental investment restriction of the Fund regarding
concentration.
2. Amend the fundamental investment restriction of the Fund regarding
diversification.
3. Amend the fundamental investment restriction of the Fund regarding
investing in real estate.
4. Amend the fundamental investment restriction of the Fund regarding
lending.
5. Amend the fundamental investment restriction of the Fund regarding the
issuance of senior securities.
6. Amend the fundamental investment restriction of the Fund regarding
underwriting.
7. Amend the fundamental investment restriction of the Fund regarding
investing in commodities.
8. Amend the fundamental investment restriction of the Fund regarding
borrowing.
9. Ratify the selection of PricewaterhouseCoopers LLP, independent
accountants, to audit financial statements of the Fund.
On the record date for this meeting there were 44,799,992 shares outstanding and
65.41% of the shares outstanding and entitled to vote were present by proxy.
NUMBER OF VOTES
<TABLE>
<CAPTION>
DELIVERED
FOR AGAINST ABSTAIN NOT VOTED
---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
1. Amend the fundamental investment
restriction of the Fund regarding
concentration. 22,287,643 504,214 721,970 5,791,339
2. Amend the fundamental investment
restriction of the Fund regarding
diversification. 22,324,394 508,645 680,788 5,791,339
3. Amend the fundamental investment
restriction of the Fund of the Funds
regarding investing in real estate. 22,189,138 600,223 724,466 5,791,339
4. Amend the fundamental investment
restriction of the Fund of the Funds
regarding lending. 22,163,694 645,414 704,719 5,791,339
5. Amend the fundamental investment
restriction of the Fund of the Funds
regarding the issuance of senior
securities. 22,193,778 609,862 710,187 5,791,339
6. Amend the fundamental investment
restriction of the Fund of the Funds
regarding underwriting. 22,230,418 555,961 727,448 5,791,339
7. Amend the fundamental investment
restriction of the Fund of the Funds
regarding investing in commodities. 22,214,935 599,491 699,401 5,791,339
8. Amend the fundamental investment
restriction of the Fund of the Funds
regarding borrowing. 22,087,279 680,646 745,901 5,791,339
9. Ratify the selection of
PricewaterhouseCoopers LLP, independent
accountants, to audit financial
statements of the Fund. 26,828,317 1,970,547 506,302 0
</TABLE>
28
<PAGE>
PHOENIX-EUCLID FUNDS
900 Third Avenue, 31st Floor
New York, New York 10022
TRUSTEES
James Balog
Claire B. Benenson
S. Leland Dill
Philip R. McLoughlin
Donald B. Romans
OFFICERS
Philip R. McLoughlin, Chairman and Chief
Executive Officer
Martin E. Zweig, President
Michael E. Haylon, 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
Nancy G. Curtiss, Treasurer
Beth Abraham, Assistant Vice President
David O'Brien, Assistant Vice President
Marc Baltuch, Secretary
INVESTMENT ADVISER
Euclid Advisors LLC
900 Third Avenue, 31st Floor
New York, New York 10022-4728
PRINCIPAL UNDERWRITER
Phoenix Equity Planning Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
TRANSFER AGENT
Phoenix Equity Planning Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
CUSTODIAN
The Bank of New York
One Wall Street
New York, New York 10286
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
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 150480 -------------------
HARTFORD CT 06115-0480 PRSRT STD
U.S. POSTAGE
PAID
[LOGO]PHOENIX ANDREW
INVESTMENT PARTNERS 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 2180 (12/00)
