Chairman's
Message
Dear Shareholders:
We're pleased to provide this consolidated report for the Phoenix Series
Fund, covering the six months ended April 30, 1995.
In addition to the summary of economic and market activity outlined below,
this report includes portfolio commentary and a complete list of investments
for each Phoenix Series Fund.
The Economy and the Markets
After a disappointing 1994, both stocks and bonds made an exceptionally
strong showing in the early months of 1995. The rebound in the financial
markets was due primarily to a growing optimism among investors that the
Federal Reserve Board applied the right amount of pressure to slow the
economy, without serious disruption to the business cycle. Though we believe
this "soft landing" consensus is yet to be proved, the rate of economic
growth in the first calendar quarter was very close to the Fed's 2.5% annual
target.
The signs of moderating growth and relatively subdued inflation over the
first four months of 1995 (housing starts, auto sales, durable goods orders
and job growth were all down) brought renewed vigor to the domestic financial
markets. Even the steep decline of the U.S. dollar had little effect on the
markets' momentum. Bond investors viewed evidence of a slowing economy and
controlled inflation as good news. As a result, long-term interest rates
moved significantly lower, ending at 7.38% on April 30, nearly 80 basis
points below last November's levels.
The effect of positive investor sentiment was even more dramatic in the
equity market, which has had its best start in three years. At yearend we
anticipated an improving investment environment for equities, but results
thus far have exceeded expectations. Over this six-month reporting period,
the Standard & Poor's 500 Composite Stock Index produced a total return of
17.48%, a result which by historical measures would be considered stellar
full-year performance.
Outlook
For much of this year, we have seen investors demonstrating a strong
preference for quality in both the bond and stock markets. We expect this
trend to continue in 1995, benefiting larger and more stable companies. Given
the sharp run up in equities since yearend, the market is likely to
experience more volatility in the near term, but overall, our outlook for
financial assets remains positive.
Evidence of a continuing slower pace of economic growth during May has
increased concerns that a recession may be on the near-term horizon. We'll be
watching the economy closely in the months ahead, but believe it is
fundamentally healthy. We expect the current moderating trend will produce
growth of 2% to 3% for 1995. We also expect inflation to be slightly higher
this year--between 3% and 3.5%, as compared with 2.7% in 1994--but still
moderate by historical standards.
On behalf of Phoenix Investments I want to thank all of you for participating
in the Phoenix Funds. We look forward to continuing to serve your investment
needs.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin, Chairman
<PAGE>
TABLE OF CONTENTS
PAGE
Equity Funds
The Balanced Fund Series 1
The Convertible Fund Series 7
The Growth Fund Series 13
The U.S. Stock Fund Series 19
Fixed Income Funds
The High Yield Fund Series 24
The U.S. Government Securities Fund Series 30
The Money Market Fund Series 34
Notes to Financial Statements 38
Fund Features and General Information 41
<PAGE>
BALANCED FUND SERIES
INVESTMENT ADVISER'S REPORT
Phoenix Balanced Fund has benefited from the strong rebound in financial
markets since last December, but performance has been more restrained due to
the Fund's defensive position. For the six months ended April 30, 1995, Class
A shares provided a total return of 4.83% and Class B shares returned 4.46%.
The Fund's balanced benchmark returned 8.48% over the same period.* All of
these figures assume reinvestment of any distributions but exclude the effect
of sales charges.
In the equity segment of the portfolio, our focus on consistent, recognized
growth companies helped the portfolio during this reporting period, as did a
good representation in the health care industries. We also reduced cash
reserves to approximately 10%, which allowed the portfolio to participate in
the stock market rally over the first four months of 1995. All of these
strategies resulted in stronger performance for the Fund's equity holdings in
the second half of this reporting period. Earlier in the period, average
weightings in technology and lack of significant exposure to the financial
services and transportation industries hampered performance.
The portfolio's fixed-income segment was at an allocation level of 40% as of
April 30. The relatively short duration of the holdings versus the benchmark
held performance back during the six-month period.
As we look ahead, we believe the signs of slowing economic growth and
moderate inflation will continue to provide a favorable investment climate
for both stocks and bonds. Given the strong equity advances seen in these
early months of 1995, we anticipate some correction to occur in the near
term. Currently, we are targeting allocation levels at 50% equity, 40% fixed
income and 10% cash.
*The Balanced Benchmark is calculated by Frank Russell Company based on the
performance of the following indexes: 55% S&P 500, 35% Lehman Brothers
Aggregate Bond Index and 10% U.S. Treasury bills.
INVESTOR PROFILE
The Balanced Fund is best suited for an investor seeking to supplement
current income while maintaining the potential for future growth and the
conservation of capital.
INVESTMENTS AT APRIL 30, 1995
(Unaudited)
STANDARD
& PAR
POOR'S VALUE
RATING (000) VALUE
U.S. GOVERNMENT SECURITIES--40.4%
U.S. Treasury Bonds--9.4%
U.S. Treasury Bonds 7.875%, '04 AAA $ 33,000 $ 34,815,000
U.S. Treasury Bonds 7.50%, '05 AAA 72,000 74,227,392
U.S. Treasury Bonds 7.50%, '16 AAA 71,000 71,405,410
U.S. Treasury Bonds 7.50%, '24 AAA 41,500 42,109,469
222,557,271
U.S. Treasury Notes--31.0%
U.S. Treasury Notes 4.625%, '95 AAA 149,350 148,809,353
U.S. Treasury Notes 4.625%, '96 AAA 54,000 53,276,940
U.S. Treasury Notes 7.25%, '96 AAA 210,500 212,670,466
U.S. Treasury Notes 4.75%, '97 AAA 19,500 18,905,055
U.S. Treasury Notes 5.75%, '97 AAA 5,000 4,894,500
U.S. Treasury Notes 5.125%, '98 AAA 42,000 40,249,440
U.S. Treasury Notes 4.75%, '98 AAA 45,000 42,310,800
U.S. Treasury Notes 7.125%, '98 AAA 12,000 12,147,000
U.S. Treasury Notes 5.875%, '99 AAA 32,000 30,973,440
U.S. Treasury Notes 7%, '99 AAA 74,900 75,434,037
U.S. Treasury Notes 6.375%, '99 AAA 27,000 26,536,680
U.S. Treasury Notes 7.125%, '00 AAA 48,600 49,070,740
U.S. Treasury Notes 6.75% '00 AAA 24,000 23,864,640
739,143,091
TOTAL U.S. GOVERNMENT SECURITIES
(Identified cost $961,320,916) $961,700,362
CONVERTIBLE BONDS--0.5%
Oil--0.5%
Amoco Canada Euro Cv. 7.375%,
'13 AA- $ 9,000 11,205,000
TOTAL CONVERTIBLE BONDS
(Identified cost $11,209,022) 11,205,000
SHARES
CONVERTIBLE PREFERRED STOCKS--0.5%
Computer Software & Services--0.5%
General Motors Corp. $3.25 Cv. Pfd. 200 12,525,000
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $11,339,795) 12,525,000
COMMON STOCKS--47.0%
Aerospace & Defense--3.3%
Boeing Company 600,000 33,000,000
General Motors Corp. Class H 300,000 11,737,500
Lockheed Martin Corp. (b) 610,000 35,227,500
79,965,000
See Notes to Financial Statements
1
<PAGE>
Bank--1.2%
Chase Manhattan Corp. 375,000 $ 16,406,250
Citicorp 250,000 11,593,750
28,000,000
Beverages--1.1%
Anheuser-Busch Cos., Inc. 470,000 27,318,750
Chemical--0.8%
W. R. Grace & Co. 350,000 18,768,750
Computer Software & Services--2.5%
Computer Associates International, Inc. 375,000 24,140,625
Computer Sciences Corp. (b) 300,000 14,812,500
Microsoft Corp. (b) 250,000 20,437,500
59,390,625
Conglomerates--2.7%
AlliedSignal, Inc. 450,000 17,831,250
ITT Corp. 250,000 26,125,000
Tyco International Ltd. 400,000 21,000,000
64,956,250
Cosmetics & Soaps--1.6%
Procter & Gamble Co. 550,000 38,431,250
Diversified Financial Services--1.6%
Travelers, Inc. 900,000 37,237,500
Electrical Equipment--1.9%
General Electric Co. 800,000 44,800,000
Electronics--0.8%
Intel Corp. 175,000 17,915,625
Entertainment, Leisure & Gaming--1.8%
Mattel, Inc. 1,250,000 29,687,500
Viacom, Inc. Class B (b) 300,000 13,762,500
43,450,000
Food--4.2%
ConAgra, Inc. 600,000 19,950,000
CPC International, Inc. 400,000 23,450,000
General Mills, Inc. 300,000 18,300,000
Heinz (H.J.) Co. 450,000 18,900,000
Nabisco Holdings Corp. Class A (b) 700,000 19,512,500
100,112,500
Health Care--Diversified--1.0%
American Home Products Corp. 300,000 23,137,500
Health Care--Drugs--2.8%
Amgen, Inc. (b) 350,000 25,440,625
Merck & Co., Inc. 275,000 11,790,625
Pfizer, Inc. 175,000 15,159,375
Schering-Plough Corp. 200,000 15,075,000
67,465,625
Insurance--1.8%
American International Group, Inc. 400,000 42,700,000
Lodging & Restaurants--1.3%
McDonald's Corp. 900,000 31,500,000
Medical Products & Services--2.6%
Abbott Labs 635,000 25,003,125
Becton Dickinson & Co. 225,000 12,543,750
Boston Scientific Corp. (b) 450,000 12,262,500
Medtronic, Inc. 175,000 13,015,625
62,825,000
Office & Business Equipment--1.7%
Hewlett Packard Co. 200,000 $ 13,225,000
International Business Machines Corp. 285,000 27,003,750
40,228,750
Oil--4.1%
Atlantic Richfield Co. 200,000 22,900,000
Chevron Corp. 550,000 26,056,250
Mobil Corp. 505,000 47,911,875
96,868,125
Pollution Control--1.4%
Browning-Ferris Industries, Inc. 1,000,000 33,000,000
Professional Services--1.4%
Automatic Data Processing 250,000 16,062,500
First Data Systems Corp. 300,000 16,875,000
32,937,500
Publishing, Broadcasting, Printing & Cable--0.5%
Donnelley (R.R.) & Sons Co. 365,000 12,410,000
Retail--1.8%
Gap (The), Inc. 350,000 11,156,250
Sears Roebuck & Co. 600,000 32,550,000
43,706,250
Retail--Food--1.2%
Albertson's, Inc. 900,000 28,462,500
Textile & Apparel--0.5%
VF Corp. 230,000 11,615,000
Utility--Telephone--1.4%
Ameritech Corp. 250,000 11,250,000
GTE Corp. 650,000 22,181,250
33,431,250
TOTAL COMMON STOCKS
(Identified cost $1,007,204,954) 1,120,633,750
FOREIGN COMMON STOCKS--1.6%
Health Care--Diversified--0.5%
Smithkline Beecham PLC ADR 325,000 12,634,375
Oil--1.1%
Royal Dutch Petroleum Co. ADR 214,000 26,536,000
TOTAL FOREIGN COMMON STOCKS
(Identified cost $36,336,200) 39,170,375
TOTAL LONG-TERM INVESTMENTS--90.0%
(Identified cost $2,027,410,887) 2,145,234,487
STANDARD
& PAR
POOR'S VALUE
RATING (000)
SHORT-TERM OBLIGATIONS--10.3%
Commercial Paper--4.5%
Pfizer, Inc. 6%, 5-1-95 A-1+ $ 11,415 11,415,000
Unilever Capital Corp. 5.98%,
5-1-95 A-1+ 2,690 2,690,000
Abbott Laboratories 5.95%,
5-3-95 A-1+ 9,770 9,766,770
Abbott Laboratories 5.96%,
5-3-95 A-1+ 1,300 1,299,570
See Notes to Financial Statements
2
<PAGE>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
Commercial Paper--continued
Goldman, Sachs & Co. 6.02%,
5-3-95 A-1+ $ 6,505 $ 6,502,824
Campbell Soup Co. 5.97%, 5-5-95 A-1+ 5,000 4,996,683
Coca Cola Co. 5.97%, 5-5-95 A-1+ 280 279,814
McDonald's Corp. 5.96%, 5-8-95 A-1+ 11,695 11,681,447
Southwestern Bell Telephone Co.
6.02%, 5-8-95 A-1 500 499,415
Philip Morris Cos., Inc. 5.97%,
5-9-95 A-1 4,225 4,219,395
Southwestern Bell Telephone Co.
5.97%, 5-9-95 A-1 765 763,985
E.I. du Pont de Nemours 5.95%,
5-10-95 A-1+ 1,695 1,692,479
E.I. du Pont de Nemours 5.93%,
5-12-95 A-1+ 420 419,239
Goldman, Sachs & Co. 6%, 5-15-95 A-1+ 11,155 11,128,972
Pfizer, Inc. 5.95%, 5-17-95 A-1+ 715 713,109
Kimberly-Clark Corp. 5.99%,
5-18-95 A-1+ 2,200 2,193,777
Goldman, Sachs & Co. 6.01%,
5-22-95 A-1+ 4,655 4,638,680
TDK USA Corp. 5.97%,
5-22-95 A-1+ 11,600 11,559,603
First Deposit Funding Trust
6.02%, 5-24-95 A-1+ 9,640 9,602,923
E.I. du Pont de Nemours 6.01%,
7-11-95 A-1+ 10,000 9,875,400
105,939,085
Federal Agency Securities--5.6%
Federal Home Loan Banks 5.94%,
5-1-95 5,305 5,305,000
Federal Home Loan Mortgage 6%,
5-2-95 2,000 1,999,667
Federal Home Loan Mortgage 6.01%,
5-2-95 6,500 6,498,915
Federal Home Loan Mortgage 5.94%,
5-19-95 1,775 1,769,728
PAR
VALUE
(000) VALUE
Federal Agency Securities--continued
Federal National Mortgage Assoc.
6.33%, 6-12-95 $ 15,000 $ 14,889,225
Federal National Mortgage Assoc.
6.33%, 6-12-95 6,990 6,938,379
Federal National Mortgage Assoc.
6.23%, 6-28-95 7,060 6,991,988
Student Loan Marketing Assoc.
5.315%, 6-30-95 10,000 10,000,000
Federal National Mortgage Assoc.
6.51%, 07-11-95 12,500 12,348,875
Student Loan Marketing Assoc.
5.81%, 7-13-95 10,000 10,000,000
Federal Home Loan Banks 6.25%,
7-18-95 7,345 7,247,458
Federal Farm Credit Bank 6.36%,
7-25-95 5,000 4,928,150
Student Loan Marketing Assoc.
5.87%, 8-10-95 5,000 5,000,000
Federal Home Loan Banks 5.915%,
10-3-95 5,000 4,869,650
Federal Farm Credit Bank 6.33%,
11-1-95 7,000 7,000,000
Federal National Mortgage Assoc.
5.94%, 2-16-96 13,000 13,000,000
Federal Home Loan Banks 7.08%,
3-15-96 15,000 15,000,000
133,787,035
U.S. Treasury Bills--0.2%
U.S. Treasury Bills 5.08%, 5-4-95 5,000 4,997,883
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $244,828,364) 244,724,003
TOTAL INVESTMENTS--100.3%
(Identified cost $2,272,239,251) 2,389,958,490(a)
Cash & receivables, less liabilities--(0.3%) (7,904,794)
NET ASSETS--100% $2,382,053,696
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $128,629,542 and gross
depreciation of $10,910,303 for income tax purposes. At April 30, 1995
the aggregate cost of securities for federal income tax purposes
approximates book cost. At October 31, 1994, the Fund had capital loss
carryforwards aggregating $21,006,880 available to offset capital gains
and expiring in 2002.
(b) Non-income producing.
ADR--American Depository Receipt
See Notes to Financial Statements
3
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995
(Unaudited)
Assets
Investment securities at value
(Identified cost $2,272,239,251) $2,389,958,490
Cash 147,774
Receivables
Investment securities sold 100,373,222
Fund shares sold 1,648,180
Dividends and interest 19,136,830
Total Assets 2,511,264,496
Liabilities
Payables
Investment securities purchased 119,883,638
Fund shares repurchased 7,469,419
Investment advisory fee 1,004,958
Distribution fee 496,324
Transfer agent fee 280,424
Financial agent fee 58,778
Trustees' fee 4,379
Accrued expenses 12,880
Total Liabilities 129,210,800
Net Assets $2,382,053,696
Net Assets Consist of:
Capital paid in on shares of beneficial interest $2,313,108,475
Undistributed net investment income 6,408,371
Accumulated net realized losses (55,182,389)
Net unrealized appreciation 117,719,239
Net Assets $2,382,053,696
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,370,862,754) 151,077,242
Net asset value per share $15.69
Offering price per share
$15.69/(1-4.75%) $16.48
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $11,190,942) 713,936
Net asset value and offering price per share $15.67
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995
(Unaudited)
Investment Income
Dividends $ 8,245,281
Interest 44,749,007
Total Investment Income 52,994,288
Expenses
Investment advisory fee 6,186,412
Distribution fee--Class A 3,014,011
Distribution fee--Class B 38,566
Financial agent fee 362,838
Transfer agent 2,134,770
Printing 161,361
Custodian 138,924
Registration 84,021
Professional 36,844
Trustees 8,836
Miscellaneous 62,721
Total Expenses 12,229,304
Net Investment Income 40,764,984
Net Realized and Unrealized Gain (Loss) on Investments
Net realized loss on securities (31,631,372)
Net realized loss on foreign currency transactions (885,686)
Net unrealized appreciation on investments 102,323,627
Net gain on investments 69,806,569
Net increase in net assets resulting from operations $110,571,553
See Notes to Financial Statements
4
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Six Months
Ended Year
April 30, Ended
1995 October 31,
(Unaudited) 1994
From Operations
Net investment income $ 40,764,984 $ 87,250,254
Net realized loss on securities (32,517,058) (19,567,118)
Net unrealized appreciation
(depreciation) 102,323,627 (168,056,299)
Increase (decrease) in net assets
resulting from operations 110,571,553 (100,373,163)
From Distributions to Shareholders
Net investment income--Class A (42,532,602) (89,537,401)
Net investment income--Class B (118,794) (17,100)
Net realized gains--Class A -- 72,968,988)
Decrease in net assets from
distributions to shareholders (42,651,396) (162,523,489)
From Share Transactions
Class A
Proceeds from sales of shares
(6,466,100 and 26,264,536 shares,
respectively) 98,217,035 413,622,592
Net asset value of shares issued from
reinvestment of distributions
(2,550,700 and 9,219,394 shares,
respectively) 38,641,099 145,320,869
Cost of shares repurchased (28,746,967
and 52,564,857 shares, respectively) (435,384,764) (820,252,365)
Total (298,526,630) (261,308,904)
Class B
Proceeds from sales of shares (437,875
and 308,090 shares, respectively) 6,645,555 4,693,331
Net asset value of shares issued from
reinvestment of distributions
(6,956 and 1,035 shares,
respectively) 105,824 15,630
Cost of shares repurchased (34,756 and
5,264 shares, respectively) (528,834) (79,998)
Total 6,222,545 4,628,963
Decrease in net assets from share
transactions (292,304,085) (256,679,941)
Net decrease in net assets (224,383,928) (519,576,593)
Net Assets
Beginning of period 2,606,437,624 3,126,014,217
End of period (including undistributed
net investment income of $6,408,371
and $8,294,783, respectively) $2,382,053,696 $2,606,437,624
See Notes to Financial Statements
5
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
Year Ended October 31,
Six Months
Ended
4/30/95
(Unaudited) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.23 $ 16.64 $ 15.92 $ 16.05 $ 13.86 $13.91
Income from investment operations
Net investment income 0.26 0.48 0.46 0.52 0.62 0.69
Net realized and unrealized
gain (loss) 0.47 (1.01) 1.08 0.92 2.84 (0.04)
Total from investment operations 0.73 (0.53) 1.54 1.44 3.46 0.65
Less distributions
Dividends from net investment income (0.27) (0.49) (0.46) (0.54) (0.64) (0.67)
Dividends from net realized gains -- (0.39) (0.36) (1.03) (0.63) (0.03)
Total distributions (0.27) (0.88) (0.82) (1.57) (1.27) (0.70)
Change in net asset value 0.46 (1.41) 0.72 (0.13) 2.19 (0.05)
Net asset value, end of period $ 15.69 $ 15.23 $ 16.64 $ 15.92 $ 16.05 $ 13.86
Total return((1)) 4.83%((3)) -3.28% 9.92% 9.77% 26.26% 4.71%
Ratios/supplemental data:
Net assets, end of period (thousands) $2,370,863 $2,601,808 $3,126,014 $2,146,726 941,754 $472,642
Ratio to average net assets of:
Operating expenses 1.00%((2)) 0.96% 0.95% 0.98% 0.98% 0.85%
Net investment income 3.35%((2)) 3.03% 2.88% 3.55% 4.22% 4.91%
Portfolio turnover 176%((2)) 159% 130% 136% 196% 181%
</TABLE>
<TABLE>
<CAPTION>
Class B
Six Months From
Ended Inception
4/30/95 7/15/94 to
(Unaudited) 10/31/94
<S> <C> <C>
Net asset value, beginning of period $ 15.23 $ 15.27
Income from investment operations
Net investment income 0.20 0.09
Net realized and unrealized
gain (loss) 0.47 (0.04)
Total from investment operations 0.67 0.05
Less distributions
Dividends from net investment income (0.23) (0.09)
Dividends from net realized gains -- --
Total distributions (0.23) (0.09)
Change in net asset value 0.44 (0.04)
Net asset value, end of period $ 15.67 $ 15.23
Total return((1)) 4.46%((3)) 0.34%((3))
Ratios/supplemental data:
Net assets, end of period (thousands) $11,191 $ 4,629
Ratio to average net assets of:
Operating expenses 1.76%((2)) 1.65%((2))
Net investment income 2.56%((2)) 2.36%((2))
Portfolio turnover 176%((2)) 159%
</TABLE>
((1)) Maximum sales load is not reflected in the total return calculation.
((2)) Annualized
((3)) Not annualized
See Notes to Financial Statements
6
<PAGE>
CONVERTIBLE FUND SERIES
INVESTMENT ADVISER'S REPORT
The performance of convertible securities has improved since the end of 1994,
reflecting the rebound we have seen in both the stock and bond markets since
yearend. For the six months ended April 30, 1995, the Convertible Fund's
Class A shares produced a total return of 3.51% and Class B shares returned
3.10%. For the same period, the market returned 4.63%, as measured by the CS
First Boston Convertible Securities Index.* All of these figures assume
reinvestment of any distributions but exclude the effect of sales charges.
Although convertible securities tend to lag the broad equity market in a
rapidly rising market--the scenario of the past four months--we believe the
Fund is well positioned for 1995. We have gradually increased exposure to
more consistent growth companies, and continue to stress domestic
multinational companies that are expected to benefit from economic recovery
in European countries. In addition, we have dramatically increased the
portfolio's equity allocation over this reporting period, in light of the
improving interest-rate environment. All of these activities have benefited
the portfolio during the early months of 1995.
*The CS First Boston Convertible Securities Index is an unmanaged but
commonly used index that tracks the returns of approximately 300 convertible
bonds and preferreds rated "B-" or better by Standard and Poor's.
INVESTOR PROFILE
The Convertible Fund is best suited for an investor seeking to supplement
current income while maintaining the potential for growth.
INVESTMENTS AT APRIL 30, 1995
(Unaudited)
STANDARD
& PAR
POOR'S VALUE
RATING (000) VALUE
CONVERTIBLE BONDS--74.3%
Advertising--1.2%
Interpublic Group Euro. Cv. 3.75%,
'02 NR $ 2,000 $ 1,727,500
Interpublic Group SDCV 144A 3.75%,
'02 (c) NR 1,000 875,000
2,602,500
Chemical--Specialty--0.9%
RPM, Inc. Sub Notes Cv. 0%, '12 BBB- 4,500 1,878,750
Computer Software & Services--0.6%
First Financial Management Cv. 5%,
'99 A 1,000 1,187,500
Conglomerates--2.7%
Hanson America, Inc. Cv. 144A ADR
2.39%, '01 (c) A+ 7,800 5,928,000
Electrical Equipment--1.0%
General Signal Corp. Cv. 5.75%,
'02 A- 2,000 2,070,000
Entertainment, Leisure & Gaming--8.8%
Comcast Corp. Cv. (3.375%,'97)
5.50%, '05 B+ 6,000 4,860,000
Comcast Corp. Cv. 1.125%, '07 B+ 12,700 5,397,500
Time Warner, Inc. Cv. 8.75%, '15 BB+ 7,456 7,456,000
Turner Broadcasting Cv. 144A 0%,
'07 (c) BB- $ 3,000 $ 1,245,000
18,958,500
Food--2.1%
Grand Metropolitan PLC Cv. 144A
6.50%, '00 (c) BBB 4,250 4,568,750
Health Care--Diversified--4.2%
Roche Holdings, Inc. Cv. 144A 0%,
'10 (c) NR 24,000 8,970,000
Health Care--Drugs--3.3%
Chiron Corp. Sub Notes Cv. 144A
1.90%, '00 (c) BBB+ 10,000 7,200,000
Insurance--4.9%
Chubb Corp. Cv. 6%, '98 AA 8,000 8,320,000
Cigna Corp. Subordinated Cv.
8.20%, '10 BBB 2,000 2,170,000
10,490,000
Lodging & Restaurants--0.7%
Starbucks Corp. Sub Debenture Cv.
4.50%, '03 B- 1,500 1,400,625
Machinery--0.9%
Albany International Corp. Cv.
5.25%, '02 BB- 2,000 1,867,500
See Notes to Financial Statements
7
<PAGE>
Metals & Mining--3.0%
Agnico Mining SDCV 3.50%, '04 B+ $ 1,000 $ 797,500
Freeport McMoRan, Inc. Cv. 6.55%,
'01 BB- 3,500 3,185,000
Freeport McMoRan, Inc. Cv. 0%, '06 BB- 7,000 2,572,500
6,555,000
Natural Gas--4.0%
Apache Corp. Cv. 144A 6%, '02 (c) BBB 2,000 2,190,000
Consolidated Natural Gas Co. Cv.
7.25%, '15 A+ 6,250 6,343,750
8,533,750
Office & Business Equipment--0.5%
EMC Corp. Sub Notes Cv. 4.25%, '01 B+ 1,000 1,140,000
Oil--9.9%
Amoco Canada Petroleum Euro Cv.
7.375%, '13 AA- 3,250 4,046,250
Noble Affiliates, Inc. Cv. 4.25%,
'03 BBB- 7,500 7,087,500
Pennzoil Co. Cv. 6.50%, '03 BBB 4,200 5,040,000
USX-Marathon Group Cv. 0%, '05 BBB- 11,500 5,246,875
21,420,625
Oil Service & Equipment--4.7%
Halliburton Co. Cv. 0%, '06 A- 17,500 9,143,750
Valhi, Inc. Cv. 0%, '07 B 3,000 1,027,500
10,171,250
Pollution Control--5.6%
Browning-Ferris Industries, Inc.
Cv. 6.75%, '05 A- 2,000 1,910,000
Chemical Waste Management, Inc.
Cv. 0%, '10 A+ 25,500 10,231,875
12,141,875
Professional Services--0.9%
Automatic Data Processing Cv. 0%,
'12 AA 4,500 1,974,375
Publishing, Broadcasting, Printing & Cable--3.0%
Hollinger Lyons Cv. 0%, '13 BB 6,000 1,732,500
News America Holdings, Inc. Cv.
0%, '13 BB- 11,300 4,830,750
6,563,250
Retail--Drug--4.5%
Rite Aid Corp. Cv. 0%, '06 BBB+ 20,500 9,660,625
Retail--Food--0.4%
Food Lion, Inc. Cv. 144A 5%, '03
(c) NR 1,000 910,000
Telecommunications Equipment--1.0%
Motorola, Inc., Sub Debenture Cv.
0%, '13 AA- 3,000 2,175,000
Utility--Electric--0.4%
California Energy Sub Deb Cv. 144A
5%,'00 (c) B $ 1,000 $ 910,000
Utility--Telephone--5.1%
U.S. West, Inc. Euro Cv. 0%,' 11 A 35,000 11,068,750
TOTAL CONVERTIBLE BONDS
(Identified cost $161,563,024) 160,346,625
SHARES
CONVERTIBLE PREFERRED STOCKS--3.7%
Bank--1.1%
BankAmerica Corp. 6.50%, Cv. Pfd. 20,000 1,087,500
H. F. Ahmanson & Co. Cv. Pfd. 26,000 1,274,000
2,361,500
Metals & Mining--0.6%
Freeport-McMoRan Copper 5%, Cv. Pfd. 60,000 1,290,000
Oil--2.0%
Occidental Petroleum Corp. 144A 3.875%,
Cv. Pfd. (c) 55,000 2,990,625
Unocal Corp. 144A $3.50 Cv. Pfd. (c) 25,000 1,331,250
4,321,875
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $7,807,391) 7,973,375
COMMON STOCKS--12.2%
Diversified Financial Services--1.6%
Travelers, Inc. 85,000 3,516,875
Electrical Equipment--0.4%
Emerson Electric Co. 13,700 921,325
Food--0.8%
Nabisco Holdings Corp. Class A (b) 64,600 1,800,725
Health Care--Diversified--1.2%
Bristol-Myers Squibb Co. 20,000 1,302,500
Warner-Lambert Co. 15,000 1,196,250
2,498,750
Health Care--Drugs--0.5%
Schering-Plough Corp. 15,000 1,130,625
Insurance--0.9%
Aetna Life & Casualty Co. 35,000 1,995,000
Miscellaneous--3.3%
Eastman Kodak Co. 125,000 7,187,500
Oil--1.8%
Atlantic Richfield Co. 13,500 1,545,750
Mobil Corp. 12,500 1,185,938
Sun Company, Inc. 35,000 1,054,375
3,786,063
Retail--1.0%
Gap (The), Inc. 31,000 988,125
May Department Stores Co. 30,000 1,087,500
2,075,625
See Notes to Financial Statements
8
<PAGE>
Utility--Electric--0.7%
CMS Energy Corp. 60,000 $ 1,402,500
TOTAL COMMON STOCKS
(Identified cost $24,003,388) 26,314,988
FOREIGN COMMON STOCKS--0.6%
Oil--0.6%
Royal Dutch Petroleum Co. ADR 10,000 1,240,000
TOTAL FOREIGN COMMON STOCKS
(Identified cost $1,101,602) 1,240,000
TOTAL LONG-TERM INVESTMENTS--90.8%
(Identified cost $194,475,405) 195,874,988
STANDARD PAR
& POOR'S VALUE
RATING (000)
SHORT-TERM OBLIGATIONS--8.8%
Commercial Paper--6.5%
Goldman, Sachs & Co. 6.02%,
5-3-95 A-1+ $ 1,550 1,549,482
Kellogg Co. 6%, 5-4-95 A-1+ 2,570 2,568,715
E.I. du Pont de Nemours 5.93%,
5-12-95 A-1+ 790 788,568
Goldman, Sachs & Co. 6.01%,
5-22-95 A-1+ 3,960 3,946,117
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
Commercial Paper--continued
First Deposit Funding Trust
6.02%, 5-24-95 A-1+ $ 3,745 $ 3,730,595
Campbell Soup Co. 5.94%, 5-25-95 A-1+ 1,545 1,538,882
14,122,359
Federal Agency Securities--2.3%
Federal Home Loan Banks 5.87%,
5-5-95 5,060 5,056,700
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $19,179,059) 19,179,059
TOTAL INVESTMENTS--99.6%
(Identified cost $213,654,464) 215,054,047(a)
Cash & receivables, less liabilities--0.4% 913,881
NET ASSETS--100.0% $215,967,928
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $6,436,950 and gross
depreciation of $5,037,367 for income tax purposes. At April 30, 1995 the
aggregate cost of securities for federal income tax purposes approximates
book cost.
(b) Non-income producing.
(c) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30,
1995, these securities amounted to a value of $37,118,625 or 17.2% of net
assets.
See Notes to Financial Statements
9
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995
(Unaudited)
Assets
Investment securities at value
(Identified cost $213,654,464) $215,054,047
Cash 1,614
Receivables
Investment securities sold 2,975,634
Fund shares sold 37,091
Dividends and interest 1,582,199
Total assets 219,650,585
Liabilities
Payables
Investment securities purchased 3,048,006
Fund shares repurchased 423,962
Investment advisory fee 115,752
Distribution fee 45,883
Transfer agent fee 17,224
Financial agent fee 5,342
Trustees' fee 5,677
Accrued expenses 20,811
Total liabilities 3,682,657
Net Assets $215,967,928
Net Assets Consist of:
Capital paid in on shares of beneficial interest $213,937,082
Undistributed net investment income 2,457,310
Accumulated net realized losses (1,826,047)
Net unrealized appreciation 1,399,583
Net Assets $215,967,928
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $213,687,925) 12,266,287
Net asset value per share $ 17.42
Offering price per share
$17.42/(1-4.75%) $ 18.29
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,280,003) 131,154
Net asset value and offering price per share $ 17.38
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995
(Unaudited)
Investment Income
Dividends $ 718,693
Interest 5,830,203
Total Investment Income 6,548,896
Expenses
Investment advisory fee 698,601
Distribution fee--Class A 266,779
Distribution fee--Class B 7,656
Financial agent fee 32,243
Transfer agent 168,971
Registration 22,098
Printing 21,729
Custodian 16,994
Trustees 8,268
Professional 8,050
Miscellaneous 11,909
Total Expenses 1,263,298
Net Investment Income 5,285,598
Net Realized and Unrealized Gain (Loss) on
Investments
Net realized loss on securities (1,802,895)
Net unrealized appreciation on investments 3,785,779
Net gain on investments 1,982,884
Net increase in net assets resulting from
operations $ 7,268,482
See Notes to Financial Statements
10
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Six Months
Ended Year
April 30, Ended
1995 October 31,
(Unaudited) 1994
From Operations
Net investment income $ 5,285,598 $ 10,237,483
Net realized (loss) gain (1,802,895) 2,502,515
Net unrealized appreciation (depreciation) 3,785,779 (16,571,486)
Increase (decrease) in net assets resulting
from operations 7,268,482 (3,831,488)
From Distributions to Shareholders
Net investment income--Class A (6,613,219) (9,093,961)
Net investment income--Class B (43,283) (2,320)
Net realized gains--Class A (2,391,510) (10,558,572)
Net realized gains--Class B (12,867) --
Decrease in net assets from distributions to
shareholders (9,060,879) (19,654,853)
From Share Transactions
Class A
Proceeds from sales of shares (642,672 and
1,725,250 shares, respectively) 10,974,608 31,385,401
Net asset value of shares issued from
reinvestment of distributions (440,359 and
889,666 shares, respectively) 7,361,067 16,005,344
Cost of shares repurchased (1,705,041 and
2,759,745 shares, respectively) (29,123,674) (49,682,138)
Total (10,787,999) (2,291,393)
Class B
Proceeds from sales of shares (81,448 and
62,836 shares, respectively) 1,383,000 1,106,801
Net asset value of shares issued from
reinvestment of distributions (2,989 and
126 shares, respectively) 50,146 2,208
Cost of shares repurchased (2,054 and 14,191
shares, respectively) (35,261) (252,704)
Total 1,397,885 856,305
Decrease in net assets resulting from share
transactions (9,390,114) (1,435,088)
Net decrease in net assets (11,182,511) (24,921,429)
Net Assets
Beginning of period 227,150,439 252,071,868
End of period (including undistributed net
investment income of $2,457,310 and
$3,828,214, respectively) $215,967,928 $227,150,439
See Notes to Financial Statements
11
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
Year Ended October 31,
Six Months
Ended
4/30/95
(Unaudited) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.56 $19.34 $18.86 $18.36 $16.63 $17.13
Income from investment operations
Net investment income 0.43 0.78 0.68 0.77 0.87 0.91
Net realized and unrealized gain (loss) 0.15 (1.06) 1.53 1.54 1.75 (0.49)
Total from investment operations 0.58 (0.28) 2.21 2.31 2.62 0.42
Less distributions
Dividends from net investment income (0.53) (0.69) (0.73) (0.72) (0.89) (0.92)
Dividends from net realized gains (0.19) (0.81) (1.00) (1.09) -- --
Total distributions (0.72) (1.50) (1.73) (1.81) (0.89) (0.92)
Change in net asset value (0.14) (1.78) 0.48 0.50 1.73 (0.50)
Net asset value, end of period $ 17.42 $17.56 $19.34 $18.86 $18.36 $16.63
Total return((1)) 3.51%((3)) -1.48% 12.58% 13.77% 15.97% 2.35%
Ratios/supplemental data:
Net assets, end of period (thousands) $213,688 $226,294 $252,072 $200,944 $169,288 $143,200
Ratio to average net assets of:
Operating expenses 1.16%((2)) 1.14% 1.15% 1.20% 1.14% 0.99%
Net investment income 4.88%((2)) 4.27% 3.70% 4.28% 4.84% 5.17%
Portfolio turnover 73%((2)) 91% 94% 200% 284% 194%
</TABLE>
<TABLE>
<CAPTION>
Class B
Six Months From
Ended Inception
4/30/95 7/15/94 to
(Unaudited) 10/31/94
<S> <C> <C>
Net asset value, beginning of period $ 17.55 $ 17.59
Income from investment operations
Net investment income 0.39 0.15
Net realized and unrealized gain (loss) 0.12 (0.06)
Total from investment operations 0.51 0.09
Less distributions
Dividends from net investment income (0.49) (0.13)
Dividends from net realized gains (0.19) --
Total distributions (0.68) (0.13)
Change in net asset value (0.17) (0.04)
Net asset value, end of period $ 17.38 $ 17.55
Total return((1)) 3.10%((3)) 0.49%((3))
Ratios/supplemental data:
Net assets, end of period (thousands) $ 2,280 $ 856
Ratio to average net assets of:
Operating expenses 1.92%((2)) 1.83%((2))
Net investment income 4.08%((2)) 3.29%((2))
Portfolio turnover 73%((2)) 91%
</TABLE>
((1)) Maximum sales load is not reflected in the total return calculation.
((2)) Annualized
((3)) Not annualized
See Notes to Financial Statements
12
<PAGE>
GROWTH FUND SERIES
INVESTMENT ADVISER'S REPORT
Phoenix Growth Fund benefited from the rebound in the stock market since last
December. For the six months ended April 30, 1995, Class A shares posted a
solid gain of 6.45% and Class B shares returned 6.03%. Nevertheless, the Fund
trailed the market as measured by the Standard and Poor's 500 Composite Stock
Index (S&P 500). The S&P 500, an unmanaged, commonly used measure of stock
performance, returned 10.42% in the same period. All these figures assume
reinvestment of any distributions but exclude the effect of sales charges.
As the investment climate has improved, one of our key activities was putting
the portfolio's cash reserves to work. Cash levels were reduced from
approximately 17% to 9% over the six-month period, with investments made in
attractively priced growth companies. Increased holdings in the technology,
health care and capital goods industries all helped the portfolio, as did the
energy holdings. Some of the portfolio's strongest performers included United
Technologies, Philip Morris, Abbott Labs, Computer Associates, Hewlett
Packard and ITT.
A few factors held performance back. Some individual holdings in both the
technology and health care groups were weak performers (Compuware, Compaq and
HMO companies). These holdings were eliminated based on our analysis of
fundamental problems either with specific companies or within the industry
itself. We also sold some of the weaker retail holdings, including May, Toys
R Us and Dayton Hudson. Finally, the portfolio had a low representation in
financial services companies, missing some of their strong performance in the
early months of 1995.
As we look ahead, we believe near-term volatility in the stock market is
likely, particularly in light of the exceptionally strong gains seen since
last December. Our long-term outlook remains positive, however. We expect to
continue our focus on consistent growth companies with proven track records
and strong earnings prospects. Currently, the portfolio has strong
representation in technology, health care, financial services and capital
goods companies.
INVESTOR PROFILE
The Growth Fund is best suited for an investor seeking the potential for
long-term growth through investments in quality common stocks.
INVESTMENTS AT APRIL 30, 1995
(Unaudited)
SHARES VALUE
COMMON STOCKS--80.4%
Aerospace & Defense--4.5%
Boeing Company 750,000 $ 41,250,000
McDonnell Douglas Corp. 400,000 24,800,000
United Technologies Corp. 400,000 29,250,000
95,300,000
Banks--1.5%
Chase Manhattan Corp. 750,000 32,812,500
Building & Materials--1.0%
PPG Industries, Inc. 550,000 21,656,250
Chemical--Specialty--0.1%
Morton International, Inc. 100,000 3,100,000
Computer Software & Services--3.2%
Computer Associates
International, Inc. 500,000 32,187,500
First Financial Management
Corp. 300,000 21,937,500
Microsoft Corp. (b) 175,000 14,306,250
68,431,250
Conglomerates--2.5%
ITT Corp. 300,000 31,350,000
TRW, Inc. 285,000 $ 21,196,875
52,546,875
Cosmetics & Soaps--2.7%
Gillette Co. 350,000 28,700,000
Procter & Gamble Co. 400,000 27,950,000
56,650,000
Electrical Equipment--4.1%
Emerson Electric Co. 530,000 35,642,500
General Electric Co. 900,000 50,400,000
86,042,500
Electronics--2.6%
Intel Corp. 300,000 30,712,500
Micron Technology, Inc. 170,000 14,025,000
Perkin Elmer Corp. 325,000 10,115,625
54,853,125
Entertainment, Leisure & Gaming--4.7%
Carnival Corp. Class A 1,500,000 37,312,500
Viacom, Inc. Class B (b) 500,000 22,937,500
Walt Disney Co. 700,000 38,762,500
99,012,500
See Notes to Financial Statements
13
<PAGE>
Food--2.6%
CPC International, Inc. 600,000 $ 35,175,000
Nabisco Holdings Corp. Class
A (b) 700,000 19,512,500
54,687,500
Health Care--Drugs--4.0%
Amgen, Inc. (b) 300,000 21,806,250
Genzyme Corp. 450,000 19,237,500
Merck & Co., Inc. 1,000,000 42,875,000
83,918,750
Hospital Management & Services--3.2%
Columbia/HCA Healthcare Corp. 1,000,000 42,000,000
Mariner Health Group, Inc.
(b) 245,000 3,583,125
PhyCor, Inc. (b) 150,000 4,762,500
Value Health, Inc. (b) 500,000 17,250,000
67,595,625
Insurance--3.6%
American International Group,
Inc. 400,000 42,700,000
Cigna Corp. 468,000 33,988,500
76,688,500
Lodging & Restaurants--2.2%
Marriott International, Inc. 1,100,000 39,600,000
Starbucks Corp. (b) 300,000 7,050,000
46,650,000
Machinery--1.0%
Parker-Hannifin Corp. 400,000 20,800,000
Medical Products & Supplies--4.2%
Abbott Labs 1,000,000 39,375,000
Baxter International, Inc. 767,500 26,670,625
Johnson & Johnson 350,000 22,750,000
88,795,625
Natural Gas--1.2%
Enron Corp. 750,000 25,500,000
Office & Business Equipment--4.1%
Hewlett Packard Co. 400,000 26,450,000
Sun Microsystems, Inc. (b) 650,000 25,918,750
Xerox Corp. 275,000 33,859,375
86,228,125
Oil--4.6%
Amoco Corp. 600,000 39,375,000
Chevron Corp. 400,000 18,950,000
Mobil Corp. 400,000 37,950,000
96,275,000
Oil Service & Equipment--2.4%
Dresser Industries, Inc. 1,250,000 27,343,750
Schlumberger Ltd. 375,000 23,578,125
50,921,875
Paper & Forest Products--0.9%
Bowater, Inc. 500,000 19,125,000
Pollution Control--1.4%
Browning-Ferris Industries,
Inc. 900,000 29,700,000
Publishing, Broadcasting, Printing & Cable--1.8%
Capital Cities/ABC, Inc. 300,000 $ 25,350,000
Harcourt General, Inc. 300,000 12,262,500
37,612,500
Retail--2.9%
Home Depot, Inc. 900,000 37,575,000
Office Depot, Inc. (b) 500,000 11,375,000
Staples, Inc. (b) 500,000 12,062,500
61,012,500
Telecommunications Equipment--5.6%
Bay Networks, Inc. (b) 650,000 23,643,750
Cisco Systems, Inc. (b) 600,000 23,925,000
Motorola, Inc. 500,000 28,437,500
Tellabs, Inc. (b) 325,000 22,425,000
3Com Corp. (b) 360,000 20,160,000
118,591,250
Textiles & Apparel--1.1%
Nike, Inc. Class B 300,000 22,987,500
Tobacco--2.2%
Philip Morris Companies, Inc. 700,000 47,425,000
Utility--Telephone--4.5%
AT&T Corp. 1,000,000 50,750,000
Ameritech Corp. 1,000,000 45,000,000
95,750,000
TOTAL COMMON STOCKS
(Identified cost $1,541,485,050) 1,700,669,750
FOREIGN COMMON STOCKS--10.6%
Finland--0.8%
Telecommunications Equipment--0.8%
Nokia AB 400,000 16,352,000
France--0.8%
Beverages--0.8%
LVMH Moet Hennessy 85,000 16,193,350
Netherlands--3.0%
Electronics--1.4%
Philips Electronics N.V. ADR 800,000 30,800,000
Oil--1.5%
Royal Dutch Petroleum Co. ADR 250,000 31,000,000
Utility--Telephone--0.1%
Royal PTT Nederland NV (KPN) 54,900 1,917,108
Sweden--2.4%
Health Care--Drugs--1.1%
Astra AB SER A SWKR 2.5 805,000 23,489,900
Telecommunications Equipment--1.3%
Ericsson L.M. Telephone Co.
Class B. ADR 400,000 26,825,000
Switzerland--0.9%
Electrical Equipment--0.9%
Brown Boveri & Cie 20,000 19,809,000
See Notes to Financial Statements
14
<PAGE>
United Kingdom--2.7%
Health Care--Diversified--1.5%
Smithkline Beecham PLC ADR 800,000 $ 31,100,000
Oil--1.2%
British Petroleum PLC ADR 300,000 25,837,500
TOTAL FOREIGN COMMON STOCKS
(Identified cost $173,511,940) 223,323,858
TOTAL LONG-TERM INVESTMENTS--91.0%
(Identified cost $1,714,996,990) 1,923,993,608
STANDARD
& PAR
POOR'S VALUE
RATING (000)
SHORT-TERM OBLIGATIONS--11.4%
Commercial Paper--8.9%
Anheuser-Busch Cos., Inc. 5.90%,
5-1-95 A-1+ $ 3,585 3,585,000
Pfizer, Inc. 6%, 5-1-95 A-1+ 4,570 4,570,000
Philip Morris Cos., Inc. 5.97%,
5-1-95 A-1+ 615 615,000
Wal-Mart Stores, Inc. 5.93%, 5-1-95 A-1+ 2,720 2,720,000
Wal-Mart Stores, Inc. 5.95%, 5-1-95 A-1+ 344 344,000
Pfizer, Inc. 6%, 5-3-95 A-1+ 3,190 3,188,937
Wal-Mart Stores, Inc. 5.95%, 5-3-95 A-1+ 9,625 9,621,818
First Deposit Funding Trust 6%,
5-4-95 A-1+ 2,915 2,913,543
Goldman, Sachs & Co. 6%, 5-4-95 A-1+ 4,830 4,827,585
E.I. du Pont de Nemours 5.90%,
5-5-95 A-1+ 10,000 9,993,444
Wal-Mart Stores 5.95%, 5-8-95 A-1+ 755 754,127
E.I. du Pont de Nemours 5.98%,
5-9-95 A-1+ 2,740 2,736,359
Goldman, Sachs & Co. 5.92%, 5-9-95 A-1+ 3,155 3,150,849
Pfizer, Inc. 5.95%, 5-9-95 A-1+ 9,249 9,236,771
Philip Morris Cos., Inc. 5.97%,
5-9-95 A-1+ 5,370 5,362,876
SouthWestern Bell Telephone 5.90%,
5-9-95 A-1 1,275 1,273,328
E.I. du Pont de Nemours 5.95%,
5-10-95 A-1+ 8,115 8,102,929
GTE North 5.92%, 5-11-95 A-1+ 5,550 5,540,873
Exxon Imperial U.S., Inc. 5.95%,
5-12-95 A-1+ 8,340 8,324,837
Goldman, Sachs & Co. 6%, 5-17-95 A-1+ 21,530 21,472,587
STANDARD
& PAR
POOR'S VALUE
RATING (000) VALUE
Commercial Paper--continued
TDK USA 5.98%, 5-17-95 A-1+ $ 6,680 $ 6,662,246
Exxon Imperial U.S., Inc. 5.95%,
5-18-95 A-1+ 9,665 9,637,844
Pfizer, Inc. 5.93%, 5-19-95 A-1+ 10,000 9,970,350
TDK USA 5.97%, 5-22-95 A-1+ 542 540,112
Goldman, Sachs & Co. 6.03%, 5-23-95 A-1+ 2,000 1,992,630
Campbell Soup Co. 5.95%,
5-24-95 A-1+ 1,554 1,548,093
E.I. du Pont de Nemours 5.96%,
5-24-95 A-1+ 15,600 15,540,599
Campbell Soup Co. 5.94%,
5-25-95 A-1+ 14,650 14,591,986
Wisconsin Electric Power Co. 5.95%,
5-30-95 A-1+ 2,000 1,990,414
Kellogg Co. 5.93%, 5-31-95 A-1+ 4,170 4,149,393
Kimberly-Clark Corp. 6.02%, 7-10-95 A-1+ 2,000 1,975,420
First Deposit Funding Trust 6.25%,
7-24-95 A-1+ 6,970 6,866,914
Campbell Soup Co. 6.52%,
10-27-95 A-1+ 4,365 4,230,383
188,031,247
Federal Agency Securities--2.5%
Federal Home Loan Banks 5.94%, 5-1-95 11,515 11,515,000
Federal National Mortgage Assoc. 5.80%,
5-11-95 3,500 3,494,361
Student Loan Marketing Assoc. 5.80%, 5-11-95 7,000 7,000,000
Federal Farm Credit Bank 5.82%, 5-15-95 3,500 3,492,078
Federal Home Loan Banks 6.87%, 9-14-95 5,000 4,885,700
Federal Farm Credit Bank 6.33%, 11-1-95 7,000 7,000,000
Federal Home Loan Banks 6.52%, 1-19-96 3,840 3,669,466
Federal Home Loan Banks 7.08%, 3-15-96 13,000 13,000,000
54,056,605
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $242,055,730) 242,087,852
TOTAL INVESTMENTS--102.4%
(Identified cost $1,957,052,720) 2,166,081,460(a)
Cash & receivables, less liabilities--(2.4)% .............. (50,777,080)
NET ASSETS--100.0% ....................................... $2,115,304,380
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $220,015,433 and gross
depreciation of $10,986,693 for income tax purposes. At April 30, 1995
the aggregate cost of securities for federal income tax purposes
approximates book cost.
(b) Non-income producing.
See Notes to Financial Statements
15
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995
(Unaudited)
Assets
Investment securities at value
(Identified cost $1,957,052,720) $2,166,081,460
Cash 21,898
Receivables
Investment securities sold 134,565,064
Fund shares sold 1,180,804
Dividends and interest 2,312,862
Total assets 2,304,162,088
Liabilities
Payables
Investment securities purchased 181,852,025
Fund shares repurchased 4,944,198
Investment advisory fee 1,158,069
Distribution fee 436,947
Transfer agent fee 241,682
Financial agent fee 51,739
Trustees' fee 5,145
Accrued expenses 167,903
Total liabilities 188,857,708
Net Assets $2,115,304,380
Net Assets Consist of:
Capital paid in on shares of beneficial interest $1,888,732,968
Undistributed net investment income 4,556,840
Accumulated net realized gains 12,985,832
Net unrealized appreciation 209,028,740
Net Assets $2,115,304,380
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,104,900,015) 97,912,298
Net asset value per share $ 21.50
Offering price per share
$21.50/(1-4.75%) $ 22.57
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $10,404,365) 486,903
Net asset value and offering price per share $ 21.37
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995
(Unaudited)
Investment Income
Dividends $ 14,585,677
Interest 8,474,839
Total Investment Income 23,060,516
Expenses
Investment advisory fee 6,883,766
Distribution fee--Class A 2,551,177
Distribution fee--Class B 28,510
Financial agent fee 306,997
Transfer agent 2,063,059
Printing 221,992
Custodian 118,542
Registration 64,969
Professional 34,964
Trustees 8,236
Miscellaneous 64,269
Total Expenses 12,346,481
Net Investment Income 10,714,035
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 13,194,631
Net realized gain on foreign currency transactions 108,586
Net unrealized appreciation on investments 103,415,481
Net gain on investments 116,718,698
Net increase in net assets resulting from operations $127,432,733
See Notes to Financial Statements
16
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Six Months
Ended Year
April 30, Ended
1995 October 31,
(Unaudited) 1994
From Operations
Net investment income $ 10,714,035 $ 27,857,990
Net realized gain 13,303,217 82,419,261
Net unrealized appreciation
(depreciation) 103,415,481 (66,347,670)
Increase in net assets resulting
from operations 127,432,733 43,929,581
From Distributions to Shareholders
Net investment income--Class A (19,589,285) (27,374,495)
Net investment income--Class B (41,386) --
Net realized gains--Class A (80,021,516) (55,054,888)
Net realized gains--Class B (163,754) --
Decrease in net assets from
distributions to shareholders (99,815,941) (82,429,383)
From Share Transactions
Class A
Proceeds from sales of shares
(6,060,613 and 11,908,660 shares,
respectively) 124,201,140 249,411,073
Net asset value of shares issued
from reinvestment of
distributions (4,691,362 and
3,499,935 shares, respectively) 91,997,612 73,320,069
Cost of shares repurchased
(13,591,093 and 33,712,698
shares, respectively) (279,060,754) (707,153,244)
Total (62,862,002) (384,422,102)
Class B
Proceeds from sales of shares
(361,666 and 141,944 shares,
respectively) 7,431,245 2,945,409
Net asset value of shares issued
from reinvestment of
distributions (9,454 and 0 shares,
respectively) 184,834 --
Cost of shares repurchased (24,149
and 2,012 shares, respectively) (490,586) (41,813)
Total 7,125,493 2,903,596
Decrease in net assets from share
transactions (55,736,509) (381,518,506)
Net decrease in net assets (28,119,717) (420,018,308)
Net Assets
Beginning of period 2,143,424,097 2,563,442,405
End of period (including
undistributed net investment
income of $4,556,840 and
$13,473,476, respectively) $2,115,304,380 $2,143,424,097
See Notes to Financial Statements
17
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
Year Ended October 31,
Six Months
Ended
4/30/95
(Unaudited) 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 21.24 $21.53 $20.76 $22.60 $18.45
Income from investment operations
Net investment income 0.11 0.26 0.32 0.36 0.50
Net realized and unrealized gain
(loss) 1.16 0.17 1.15 0.97 4.97
Total from investment operations 1.27 0.43 1.47 1.33 5.47
Less distributions
Dividends from net investment income (0.20) (0.24) (0.32) (0.45) (0.55)
Dividends from net realized gains (0.81) (0.48) (0.38) (2.72) (0.77)
Total distributions (1.01) (0.72) (0.70) (3.17) (1.32)
Change in net asset value 0.26 (0.29) 0.77 (1.84) 4.15
Net asset value, end of period $ 21.50 $21.24 $21.53 $20.76 $22.60
Total return((1)) 6.45%((3)) 2.06% 7.20% 6.95% 30.97%
Ratios/supplemental data:
Net assets, end of period (thousands) $2,104,900 $2,140,458 $2,563,442 $2,186,868 $1,251,565
Ratio to average net assets of:
Operating expenses 1.19%((2)) 1.19% 1.18% 1.17% 1.15%
Net investment income 1.04%((2)) 1.22% 1.55% 1.86% 2.49%
Portfolio turnover 129%((2)) 118% 176% 192% 227%
</TABLE>
<TABLE>
<CAPTION>
Class A Class B
Year Six Months From
Ended Ended Inception
October 31, 4/30/95 7/15/94 to
1990 (Unaudited) 10/31/94
<S> <C> <C> <C>
Net asset value, beginning of period $18.76 $ 21.19 $ 20.48
Income from investment operations
Net investment income 0.64 0.10 0.01
Net realized and unrealized gain
(loss) (0.05) 1.08 0.70
Total from investment operations 0.59 1.18 0.71
Less distributions
Dividends from net investment income (0.62) (0.19) --
Dividends from net realized gains (0.28) (0.81) --
Total distributions (0.90) (1.00) --
Change in net asset value (0.31) 0.18 0.71
Net asset value, end of period $18.45 $ 21.37 $ 21.19
Total return((1)) 3.05% 6.03%((3)) 3.47%((3))
Ratios/supplemental data:
Net assets, end of period (thousands) $678,151 $10,404 $ 2,966
Ratio to average net assets of:
Operating expenses 1.01% 1.97%((2)) 1.87%((2))
Net investment income 3.37% 0.08%((2)) 0.32%((2))
Portfolio turnover 203% 129%((2)) 118%
</TABLE>
((1)) Maximum sales load is not reflected in the total return calculation.
((2)) Annualized
((3)) Not annualized
See Notes to Financial Statements
18
<PAGE>
U.S. STOCK FUND SERIES
INVESTMENT ADVISER'S REPORT
Phoenix U.S. Stock Fund has benefited from the strong rally in the domestic
stock market we have seen since last December. For the six months ended April
30, 1995, Class A shares produced a total return of 6.63% and Class B shares
returned 6.23%. According to the Standard & Poor's 500 Composite Stock Index
(S&P 500), an unmanaged, commonly used measure of stock performance, the
market returned 10.42% over the same period. All these figures assume
reinvestment of any distributions but exclude the effect of sales charges.
Since the sharp gains of the S&P 500 have been driven by a relatively narrow
group of large companies during the first few months of 1995, it has been
difficult to keep pace with its performance.
Beginning in January, the Fund began concentrating investment focus on
companies demonstrating rapid growth in revenues, operating profits and
earnings per share. As a result, many new positions were established in the
entertainment, financial services, health care, lodging, medical device and
technology industries. In total, these new investments, the deployment of
cash reserves and the improved investment climate all contributed positively
to the portfolio's results.
Currently, the investment environment is very positive, given strong
corporate profit growth, relatively subdued inflation and declining long-term
interest rates. If concerns over a slowing economy and the ramifications of
the declining dollar increase over the next few months, we are likely to see
a pull back in the equity market. Our outlook remains positive, however. We
anticipate that the market rally will eventually broaden and allow small and
mid-capitalization companies to assume leadership over the course of 1995.
The Fund has meaningful exposure to those market segments and is positioned
to benefit from further market strength.
We also believe the portfolio's technology holdings are structured to help
insulate the Fund from the typical weakness the technology industry
experiences during the summer months. The Fund is stressing
telecommunications and video conferencing companies, which have less
seasonality overall. In addition, the Fund's exposure to domestic
multinational companies should help offset the seasonality factors. We also
remain optimistic about the proposed regulatory changes that have the
potential to benefit the portfolio's holdings in Clear Channel, Evergreen
Media, Infinity Broadcasting and New World Communications.
INVESTOR PROFILE
The U.S. Stock Fund is best suited for an investor who desires an
aggressively managed portfolio designed for maximum appreciation of capital
with little or no current income.
INVESTMENTS AT APRIL 30, 1995
(Unaudited)
SHARES VALUE
COMMON STOCKS--95.6%
Airlines--1.0%
ValuJet Airlines, Inc. (b) 50,000 $ 1,350,000
Computer Software & Services--12.7%
Adobe Systems, Inc. 60,000 3,495,000
Creative Computers, Inc. (b) 70,500 1,736,063
HBO & Co. 80,000 3,660,000
Microsoft Corp. (b) 50,000 4,087,500
Oak Technology, Inc. (b) 40,000 1,105,000
Pinnacle Systems, Inc. (b) 80,000 1,460,000
Platinum Technology, Inc. (b) 50,000 1,000,000
Policy Management Systems Corp. (b) 25,000 1,259,375
Renaissance Solutions, Inc. (b) 15,000 195,000
17,997,938
Diversified Financial Services--5.6%
Federal Home Loan Mortgage 40,000 2,610,000
Federal National Mortgage Assoc. 15,000 1,323,750
MGIC Investment Corp. 60,000 2,542,500
The Charles Schwab Corp. 45,000 1,541,250
8,017,500
Electronics--7.4%
Altera Corp. (b) 15,000 $ 1,213,125
Atmel Corp. (b) 35,000 1,540,000
Cirrus Logic, Inc. (b) 30,000 1,494,375
Cypress Semiconductor Co. (b) 50,000 1,512,500
Spectrian Corp. (b) 50,000 1,456,250
VLSI Technology, Inc. (b) 100,000 2,131,250
Xilinx, Inc. (b) 15,000 1,151,250
10,498,750
Entertainment, Leisure & Gaming--8.0%
Gaylord Entertainment Co. Class A 90,000 2,126,250
New World Communications Group, Inc.
Class A 200,000 3,375,000
Regal Cinemas, Inc. (b) 41,000 1,107,000
Viacom, Inc., Class A (b) 30,000 1,406,250
Walt Disney Co. 60,000 3,322,500
11,337,000
See Notes to Financial Statements
19
<PAGE>
Food--0.7%
Hudson Foods, Inc. Class A 60,000 $ 1,035,000
Healthcare--Drugs--3.1%
Amgen, Inc. (b) 20,000 1,453,750
Genzyme Corp. 70,000 2,992,500
4,446,250
Hospital Management & Services--3.9%
Mariner Health Group, Inc. (b) 40,000 585,000
MedPartners, Inc. (b) 60,000 1,417,500
PhyCor, Inc. (b) 50,000 1,587,500
Vivra, Inc. (b) 60,000 1,927,500
5,517,500
Insurance--2.3%
American International Group, Inc. 30,000 3,202,500
Lodging & Restaurants--7.5%
Applebee's International, Inc. 30,000 660,000
Boston Chicken (b) 150,000 2,981,250
La Quinta Motor Inns, Inc. 150,000 4,481,250
McDonald's Corp. 70,000 2,450,000
10,572,500
Medical Products & Supplies--5.5%
Abbott Labs 40,000 1,575,000
Biomet, Inc. (b) 100,000 1,750,000
Boston Scientific Corp. (b) 50,000 1,362,500
Physicians Sales & Service, Inc. 50,000 1,768,750
St. Jude Medical, Inc. 30,000 1,290,000
7,746,250
Natural Gas--1.6%
Enron Oil & Gas Co. 100,000 2,287,500
Office & Business Equipment--0.9%
Quantum Corp. (b) 70,000 1,295,000
Oil Service & Equipment--3.6%
Schlumberger Ltd. 45,000 2,829,375
Seitel, Inc. (b) 70,000 2,240,000
5,069,375
Paper & Forest Products--2.0%
Bowater, Inc. 75,000 2,868,750
Professional Services--1.1%
Cerner Corp. (b) 30,000 1,593,750
Publishing, Broadcasting, Printing & Cable--8.8%
Clear Channels Communications, Inc. (b) 30,000 1,687,500
Evergreen Media Corp. Class A (b) 100,000 1,862,500
Infinity Broadcasting Corp. Class A (b) 90,000 3,836,250
Lin Television Corp. 65,000 2,340,000
Scholastic Corp. (b) 50,000 2,800,000
12,526,250
Retail--5.2%
Corporate Express (b) 80,000 $ 2,260,000
OfficeMax, Inc. (b) 50,000 1,281,250
Staples, Inc. (b) 160,000 3,860,000
7,401,250
Retail--Drug--1.7%
Walgreen Co. 50,000 2,350,000
Telecommunications Equipment--10.6%
California Microwave, Inc. (b) 70,000 2,178,750
Cincinnati Microwave, Inc. 175,000 1,662,500
General Instrument Corp. (b) 40,000 1,365,000
Glenayre Technologies, Inc. (b) 60,000 3,690,000
Picturetel Corp. (b) 40,000 1,705,000
Scientific-Atlanta, Inc. 130,000 2,957,500
VTEL Corporation 150,000 1,443,750
15,002,500
Textile & Apparel--2.4%
Nine West Group, Inc. (b) 50,000 1,625,000
Tommy Hilfiger Corp. (b) 80,000 1,840,000
3,465,000
TOTAL COMMON STOCKS
(Identified cost $123,764,440) 135,580,563
STANDARD
& PAR
POOR'S VALUE
RATING (000)
CONVERTIBLE BONDS--1.0%
Entertainment, Leisure &
Gaming--1.0%
Time Warner, Inc. Cv. 8.75%, '15 BB+ $ 1,412 1,412,000
TOTAL CONVERTIBLE BONDS
(Identified cost $1,060,451) 1,412,000
TOTAL LONG-TERM INVESTMENTS--96.6%
(Identified cost $124,824,891) 136,992,563
SHORT-TERM OBLIGATIONS--5.9%
Commercial Paper--5.9%
Anheuser-Busch Cos., Inc. 5.90%,
5-1-95 A-1+ 4,115 4,115,000
Procter & Gamble Co. 5.97%, 5-3-95 A-1+ 1,230 1,229,592
Goldman, Sachs & Co. 6.01%,
5-22-95 A-1+ 3,005 2,994,465
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $8,339,057) 8,339,057
TOTAL INVESTMENTS--102.5%
(Identified cost $133,163,948) 145,331,620(a)
Cash & receivables, less liabilities--(2.5%) (3,577,117)
NET ASSETS--100.0% $141,754,503
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $13,836,648 and gross
depreciation of $1,668,976 for income tax purposes. At April 30, 1995 the
aggregate cost of securities for federal income tax purposes approximates
book cost.
(b) Non-income producing.
See Notes to Financial Statements
20
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995
(Unaudited)
Assets
Investment securities at value
(Identified cost $133,163,948) $145,331,620
Cash 1,932
Receivables
Investment securities sold 6,304,527
Fund shares sold 15,755
Dividends and interest 39,996
Total assets 151,693,830
Liabilities
Payables
Investment securities purchased 9,633,755
Fund shares repurchased 165,252
Investment advisory fee 79,918
Distributor fee 28,994
Transfer agent fee 12,497
Financial agent fee 3,425
Trustees' fee 5,183
Accrued expenses 10,303
Total liabilities 9,939,327
Net Assets $141,754,503
Net Assets Consist of:
Capital paid in on shares of beneficial interest $129,402,949
Undistributed net investment income 597,519
Accumulated net realized losses (413,637)
Net unrealized appreciation 12,167,672
Net Assets $141,754,503
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $140,959,859) 10,804,705
Net asset value per share $ 13.05
Offering price per share
$13.05/(1-4.75%) $ 13.70
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $794,644) 61,247
Net asset value and offering price per share $ 12.97
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995
(Unaudited)
Investment Income
Dividends $ 511,568
Interest 1,073,513
Total Investment Income 1,585,081
Expenses
Investment advisory fee 469,598
Distribution fee--Class A 167,041
Distribution fee--Class B 2,690
Financial agent fee 20,126
Transfer agent 135,473
Registration 21,940
Printing 16,959
Custodian 16,191
Professional 12,706
Trustees 9,539
Miscellaneous 5,948
Total Expenses 878,211
Net Investment Income 706,870
Net Realized and Unrealized Gain (Loss) on Investments
Net realized loss on securities (129,836)
Net unrealized appreciation on investments 8,181,521
Net gain on investments 8,051,685
Net increase in net assets resulting from
operations $8,758,555
See Notes to Financial Statements
21
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Six Months
Ended Year
April 30, Ended
1995 October 31,
(Unaudited) 1994
From Operations
Net investment income $ 706,870 $ 2,811,816
Net realized (loss) gain (129,836) 8,997,579
Net unrealized appreciation (depreciation) 8,181,521 (11,282,180)
Net increase in net assets resulting from
operations 8,758,555 527,215
From Distributions to Shareholders
Net investment income--Class A (1,615,554) (2,191,581)
Net investment income--Class B (5,883) --
Net realized gains--Class A (9,109,368) (10,802,703)
Net realized gains--Class B (33,032) --
Decrease in net assets from distributions to
shareholders (10,763,837) (12,994,284)
From Share Transactions
Class A
Proceeds from sales of shares (1,274,993 and
4,129,589 shares, respectively) 15,985,534 55,468,458
Net asset value of shares issued from
reinvestment of distributions
(839,285 and 898,834 shares, respectively) 10,029,458 12,084,147
Cost of shares repurchased (1,821,370 and
4,341,161 shares, respectively) (23,178,409) (57,979,171)
Total 2,836,583 9,573,434
Class B
Proceeds from sales of shares (33,420 and
24,793 shares, respectively) 419,596 326,217
Net asset value of shares issued from
reinvestment of distributions
(3,171 and 0 shares, respectively) 37,797 --
Cost of shares repurchased (136 and 1 shares,
respectively) (1,644) (10)
Total 455,749 326,207
Increase in net assets from share
transactions 3,292,332 9,899,641
Net increase (decrease) in net assets 1,287,050 (2,567,428)
Net Assets
Beginning of period 140,467,453 143,034,881
End of period (including undistributed net
investment income of
$597,519 and $1,512,086, respectively) $141,754,503 $140,467,453
See Notes to Financial Statements
22
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
Six Months
Ended
4/30/95 Year Ended October 31,
(Unaudited) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.33 $14.56 $13.56 $14.88 $10.77 $ 12.68
Income from investment operations
Net investment income 0.07 0.27 0.22 0.23 0.23 0.17
Net realized and unrealized (loss)
gain 0.71 (0.21) 1.62 0.59 4.05 (1.82)
Total from investment operations 0.78 0.06 1.84 0.82 4.28 (1.65)
Less distributions
Dividends from net investment income (0.16) (0.22) (0.23) (0.25) (0.17) (0.26)
Dividends from net realized gains (0.90) (1.07) (0.61) (1.50) -- --
Distributions in excess of
accumulated realized gains -- -- -- (0.39) -- --
Total distributions (1.06) (1.29) (0.84) (2.14) (0.17) (0.26)
Change in net asset value (0.28) (1.23) 1.00 (1.32) 4.11 (1.91)
Net asset value, end of period $ 13.05 $13.33 $14.56 $13.56 $14.88 $ 10.77
Total return((1)) 6.63%((3)) 0.37% 14.15% 7.11% 39.99% -13.27%
Ratios/supplemental data:
Net assets, end of period (thousands) $140,960 $140,137 $143,035 $128,530 $125,942 $99,428
Ratio to average net assets of:
Operating expenses 1.30%((2)) 1.26% 1.17% 1.25% 1.20% 1.07%
Net investment income (loss) 1.05%((2)) 1.97% 1.58% 1.70% 1.68% 1.37%
Portfolio turnover 357%((2)) 306% 192% 251% 332% 407%
</TABLE>
<TABLE>
<CAPTION>
Class B
Six Months From
Ended Inception
4/30/95 7/21/94 to
(Unaudited) 10/31/94
<S> <C> <C>
Net asset value, beginning of period $ 13.31 $ 13.09
Income from investment operations
Net investment income 0.05 0.02
Net realized and unrealized (loss)
gain 0.67 0.20
Total from investment operations 0.72 0.22
Less distributions
Dividends from net investment income (0.16) --
Dividends from net realized gains (0.90) --
Distributions in excess of
accumulated realized gains -- --
Total distributions (1.06) --
Change in net asset value (0.34) 0.22
Net asset value, end of period $ 12.97 $ 13.31
Total return((1)) 6.23%((3)) 1.68%((3))
Ratios/supplemental data:
Net assets, end of period (thousands) $795 $330
Ratio to average net assets of:
Operating expenses 2.06%((2)) 1.81%((2))
Net investment income (loss) (0.03)%((2)) 1.45%((2))
Portfolio turnover 357%((2)) 306%
</TABLE>
((1)) Maximum sales load is not reflected in the total return calculation.
((2)) Annualized
((3)) Not annualized
See Notes to Financial Statements
23
<PAGE>
HIGH YIELD FUND SERIES
INVESTMENT ADVISER'S REPORT
The domestic high-yield market was one of the bond market's better performers
during the past six months. Emerging debt markets were hit hard, however, by
fallout from the devaluation of the Mexican peso last December. While this
market sector began to rally by the end of March, the portfolio's exposure to
emerging debt markets hurt performance over this reporting period.
For the six months ended April 30, 1995, the Fund's Class A shares provided a
total return of 1.44% and Class B shares returned 1.07%. As measured by the
CS First Boston High Yield Index, the market returned 6.91% for the same
period.* All of these figures assume reinvestment of any distributions but
exclude the effect of sales charges.
Our strategy continues to emphasize better quality domestic high-yield
issues. We have used the current bond market rally to upgrade the quality of
the portfolio's domestic high-yield holdings and have reduced holdings in
cyclical industries and other areas that could weaken as the U.S. economy
continues to show signs of moderating growth. Currently, the portfolio's
domestic holdings include strong representation in health care, cable
television, telecommunications and other media-related industries.
We have also used the turmoil in the emerging debt markets as an opportunity
to increase holdings in countries we believe to be fundamentally strong. It
appears that weak market technicals have given way to a more rational focus
on individual countries' fundamentals. Moreover, the forced sell-off that
followed the Mexican peso crisis, has placed emerging debt securities in
stronger hands. Currently, the portfolio's emerging debt market allocation is
diversified among eleven countries, with the three highest concentrations in
Argentina, Mexico and Brazil.
*The CS First Boston High Yield Index is an unmanaged but commonly used index
that tracks returns of all new publicly offered debt of more than $75 million
rated below "BBB" or "BBB/BB+."
INVESTOR PROFILE
The High Yield Fund is best suited for risk-tolerant investors seeking a
long-term investment to provide for high current income. High-yield
fixed-income securities generally are subject to greater market fluctuations
and risk of loss of income and principal than are investments in
lower-yielding fixed income securities. Foreign investing involves special
risks, such as currency fluctuation, less public disclosure as well as
economic and political risks.
INVESTMENTS AT APRIL 30, 1995
(Unaudited)
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
U.S. GOVERNMENT SECURITIES--1.8%
U.S. Treasury Bonds--1.8%
U.S. Treasury Bonds 7.50%, '05 Aaa $ 9,000 $ 9,278,424
TOTAL U.S. GOVERNMENT SECURITIES
(Identified cost $9,231,250) 9,278,424
NON-CONVERTIBLE BONDS--59.2%
Airlines--2.9%
GPA Delaware, Inc. 8.75%, '98 Caa 18,500 14,707,500
Building & Materials--1.6%
Overhead Door Corp. Sr. Note 12.25%,
'00 B 8,000 8,000,000
Containers--2.4%
Owens-Illinois, Inc., Deb. 11%, '03 Ba 11,000 11,962,500
Food--2.0%
Curtice-Burns Foods, Inc. Sr. Sub.
Note 12.25%, '05 B 9,750 10,188,750
Entertainment & Leisure--0.0%
Capital Gaming Int'l Promissory Note
0%, '95 NR 50 50,000
Hospital Management & Services--7.1%
Community Health Systems 10.25%, '03 B $ 9,600 $ 9,852,000
National Medical Enterprises
10.125%, '05 Ba 20,250 21,161,250
Surgical Health Corp. Sr. Sub Notes
11.50%, '04 B 5,000 5,456,250
36,469,500
Household Furnishing & Appliance--0.5%
Health O Meter Units, 13%, '02 B 3,000 2,670,000
Machinery--1.4%
Cincinnati Milacron, Inc. Notes
8.375%, '04 Ba 7,500 7,228,125
Mortgage-Backed Securities--4.4%
Chase Mtg. Finance Corp. 93-2 B8,
144A 6.949%, '22 NR 4,492 3,358,133
Citicorp Mortgage Securities, Inc.
93-12, B3, 144A 6.50%, '23 (b) Ba 1,915 1,272,169
DLJ Mortgage Acceptance Corp. 94-MF4
B2 8.50%, '01 B(c) 3,000 2,598,750
GE Capital Mortgage Ser. 144A 94-16,
B3 6.50%, '24 (b) NR 2,057 1,345,007
See Notes to Financial Statements
24
<PAGE>
Mortgage-Backed Securities--continued
Merrill Lynch Mtg. In 1994-M1,
8.23%, '03 BB(c) $ 4,000 $ 3,360,000
Prudential Home Mortgage Security
Corp. 92-29, B3 8%, '22 Ba 6,153 4,801,148
Ryland Mortgage Security Corp. 92A
IC 8.339%, '30 BB(c) 1,000 761,000
SML Inc., 94-C1, B2 144A 10.30%, '99
(b) BB(c) 5,000 4,721,875
22,218,082
Office & Business Equipment--1.7%
United Stationer Supply 12.75%, '05 B 8,500 8,585,000
Oil & Gas--2.2%
Crown Central Petroleum 10.875%, '05 Ba 11,000 11,110,000
Paper, Packaging & Forest Products--1.5%
Repap New Brunswick Yankee 10.675%,
'05 B 3,000 3,056,250
SD Warren Co. Sr. Sub. Notes 144A
12%, '04 (b) B 4,250 4,605,938
7,662,188
Pollution Control--0.9%
Clean Harbors, Inc., Sr. Note
12.50%, '01 B 5,000 4,487,500
Publishing, Broadcasting & Printing--11.5%
SCI Television, Sr. Note 11%, '05 B 15,800 16,432,000
Century Communications Sr. Note
9.50%, '05 Ba 11,500 11,226,875
Continental Cablevision Sr. Deb.
9.50%, '13 Ba 4,500 4,494,375
Continental Cablevision Sr. Sub.
Deb. 11%, '07 B 3,250 3,542,500
Marcus Cable Operating Co. 13.50%,
'04 B 18,500 10,845,625
Paramount Communications Sr. Deb.
8.25%, '22 Ba 8,000 7,149,280
Univision 0%, '02 NR 8,546 5,052,926
58,743,581
Retail--2.6%
Eyecare Centers of America 144A 12%,
'03 (b) B 6,500 5,395,000
Rickel Home Centers Units, 13.50%,
'01 B 5,000 4,850,000
Scotty's, Inc. Series A, Deb 11.25%,
'15 NR 3,200 3,196,000
13,441,000
Supermarkets--2.0%
Penn Traffic Co. Sr. Note 8.625%,
'03 Ba 5,000 4,625,000
Penn Traffic Co. Sr. Note 10.35%,
'04 Ba 5,500 5,747,500
10,372,500
Telecommunications--9.1%
Celcarib SA 144A (0%, '98) 13.50%,
'04 (b) NR 6,000 4,995,000
Echostar Communication (0%, '99)
12.875%, '04 Caa 35,000 16,450,000
Telecommunications--continued
In Flight Phone Co. 144A Unit (0%,
'98) 14%, '02 (b) Caa $ 9,000 $ 6,007,500
MFS Communications (0%, '99) 9.375%,
'04 B 5,000 3,325,000
Pan Am Satellite L.P. Sr. Sub Notes
(0%, '98) 11.375%, '03 B 14,400 9,936,000
USA Mobile Communications Sr. Note
14%, '04 B 3,500 3,780,000
Viatel, Inc. Unit 144A (0%, '00)
15%, '05 (b) NR 3,500 2,213,750
46,707,250
Textile & Apparel--2.2%
Polymer Group Sr. Notes 144A 12.75%,
'02 (b) Caa 8,850 8,717,250
Tultex Corp. Sr. Note 10.625%, '05 Ba 2,500 2,518,750
11,236,000
Utility--Electric--3.2%
AES Corp. 9.75%, '00 Ba 8,000 7,970,000
California Energy Co. Sr. Disc.
Notes (0%, '97) 10.25%, '04 Ba 11,000 8,580,000
16,550,000
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $306,341,668) 302,389,476
FOREIGN NON-CONVERTIBLE BONDS--19.2%
Argentina--2.6%
Bridas Corp. Sr. Note 12.50%, '99 B 11,500 10,005,000
Transport De Gas 144A 7.75%,
'98 (b) NR 4,250 3,463,750
13,468,750
Brazil--1.6%
Aracruz Cellulose Euro 10.375%, '02 NR 9,000 8,100,000
Canada--4.2%
Call-Net Enterprises (0%, '99)
13.25%, '04 B 16,000 8,920,000
Consoltex Group Sr. Sub Note, Series
B 11%, '03 B 2,000 1,790,000
Groupe Videotron Ltee Sr. Note
10.625%, '05 Ba 4,000 4,175,000
Videotron Ltd. Sr. Sub. Notes
10.25%, '02 Ba 6,500 6,613,750
21,498,750
Colombia--2.1%
Centragas 144A 10.65%, '10 (b) NR 11,000 10,628,750
Indonesia--1.4%
P.T. Polysindo Sr. Note 13%, '01 B 7,500 7,387,500
Mexico--3.2%
GRUMA, S.A. De C.V. 144A 9.75%, '98
(b) NR 7,000 5,932,500
Ispat Mexicana 144A 10.375%,
'01 (b) NR 12,000 10,200,000
16,132,500
Peru--2.3%
Compagnie Bancaire USA 144A Mtn Euro
0%, '95 (b) Aa 11,613 11,491,064
Philippines--0.7%
Subic Power Corp. 144A 9.50%,
'08 (b) NR 4,345 3,638,793
See Notes to Financial Statements
25
<PAGE>
United Kingdom--1.1%
Videotron Hldgs PLC Sr. Disc. Note
(0%, '99) 11.125%, '04 B $ 9,000 $ 5,647,500
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $102,783,046) 97,993,607
FOREIGN GOVERNMENT SECURITIES--14.1%
Argentina--3.6%
Republic of Argentina Par L-GP 6%,
'23 B 11,000 4,826,800
Republic of Argentina Bearer FRB
7.31%, '05 (e) NR 22,500 13,473,000
18,299,800
Brazil--3.3%
Companhia Brasil de Projectos 144A
12.50%, '97 (b) NR 5,000 4,550,000
Republic of Brazil Par YL4 (4%,
'95), 6%, '24 NR 5,000 2,000,000
Republic of Brazil 20yr Series C
Euro, 8%, '14 NR 8,323 3,599,784
Republic of Brazil EI-L Euro Floater
6.6875%, '06 NR 11,500 6,512,450
16,662,234
Bulgaria--0.4%
Bulgaria Discount, Series A Floater
7.5625%, '24 NR 5,000 2,356,500
Costa Rica--1.0%
Central Bank of Costa Rica 6.25%,
'10 NR 10,200 4,947,000
Ecuador--0.8%
Republic of Ecuador, PDI, 20yr,
7.25%, '15 NR 14,000 4,235,000
Mexico--2.2%
Banco National Commerciale Exterior
7.25%, '04 Ba 5,000 3,350,000
United Mexican States Series A Euro
6.25%, '19 Ba 5,000 2,609,375
United Mexican States Series B Euro
6.25%, '19 Ba $10,000 $ 5,218,750
11,178,125
Poland--2.8%
Poland Global Bearer PDI, (3.25%,
'95) 7%, '14 NR 30,000 14,289,000
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $71,064,250) 71,967,659
SHARES
PREFERRED STOCKS--2.0%
Paper & Forest Products--0.7%
SD Warren Co. Pfd. Unit 144A PIK (b) 115,000 3,751,875
Telecommunications Equipment--1.3%
Pan Am Satellite Corp. Pfd. 12.75%, '05 6,500 6,510,563
TOTAL PREFERRED STOCKS
(Identified cost $9,490,000) 10,262,438
COMMON STOCKS--0.0%
Publishing, Broadcasting, Printing & Cable--0.0%
Sullivan Holdings, Inc. (d) 76 0
TOTAL COMMON STOCKS
(Identified cost $357,881) 0
WARRANTS--0.3%
Eye Care Centers of America Warrants 6,500 32,500
Purity Supreme, Inc. Warrants 27,274 553
Echostar Warrants, Exp. '04 210,000 1,680,000
TOTAL WARRANTS
(Identified cost $2,691,776) 1,713,053
TOTAL LONG-TERM INVESTMENTS--96.6%
(Identified cost $501,959,871) 493,604,657
TOTAL INVESTMENTS--96.6%
(Identified cost $501,959,871) 493,604,657(a)
Cash and receivables, less liabilities--3.4% 17,233,830
NET ASSETS--100.0% $510,838,487
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $12,287,359 and gross
depreciation of $20,642,573 for income tax purposes. At April 30, 1995,
the aggregate cost of securities for federal income tax purposes
approximates book cost. At October 31, 1994, the Fund had capital loss
carryforwards to the extent provided in regulations of $36,712,567 for
tax purposes expiring as follows: $2,286,389 through 1997, $20,045,739
through 1998, and $14,380,439 through 2002. At October 31, 1994, the Fund
had additional capital loss carryforwards aggregating $324,052,223,
available to offset future capital gains as follows: $76,787,088 through
1995, $22,486,288 through 1996, $178,352,034 through 1997 and $46,426,813
through 1998. These capital loss carryforwards were acquired in
connection with the merger of National Bond Fund into the Fund and will
be available to offset future capital gains subject to an annual
limitation determined under the Internal Revenue Code of 1986, as
amended.
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30,
1995, these securities amounted to a value of $96,288,354 or 18.8% of net
assets.
(c) As rated by Standard & Poor's, Duff & Phelps or Fitch
(d) Non-income producing
(e) Open call options written:
Par
Value Exercise Expiration
Issuer Name (000) Price Date Value
Republic of Argentina Bearer
FRB 7.31%, '05 $5,000 $57.875 5/12/95 $(81,250)
See Notes to Financial Statements
26
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995
(Unaudited)
Assets
Investment securities at value
(Identified cost $501,959,871) $493,604,657
Receivables
Investment securities sold 18,935,007
Fund shares sold 5,649,292
Interest 9,984,976
Total assets 528,173,932
Liabilities
Payables
Custodian 1,361,533
Investment securities purchased 14,631,067
Fund shares repurchased 659,990
Investment advisory fee 265,227
Distribution fee 106,904
Transfer agent fee 121,000
Financial agent fee 12,241
Trustees' fee 6,000
Accrued expenses 90,233
Option liability 81,250
Total liabilities 17,335,445
Net Assets $510,838,487
Net Assets Consist of:
Capital paid in on shares of beneficial interest $596,951,269
Undistributed net investment income 2,369,090
Accumulated net realized losses (80,126,658)
Net unrealized depreciation (8,355,214)
Net Assets $510,838,487
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $502,432,917) 64,238,723
Net asset value per share $ 7.82
Offering price per share
$7.82/(1-4.75%) $ 8.21
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $8,405,570) 1,072,499
Net asset value and offering price per share $ 7.84
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995
(Unaudited)
Investment Income
Interest $ 29,253,190
Dividends 100,625
Total Investment Income 29,353,815
Expenses
Investment advisory fee 1,624,739
Distribution fee--Class A 616,036
Distribution fee--Class B 35,454
Financial agent fee 74,988
Transfer agent 481,420
Printing 52,021
Professional 48,974
Registration 40,389
Custodian 32,161
Trustees 10,338
Miscellaneous 8,963
Total Expenses 3,025,483
Net Investment Income 26,328,332
Net Realized and Unrealized Gain (Loss) on Investments
Net realized loss on securities (41,402,724)
Net unrealized appreciation on investments 20,960,581
Net loss on investments (20,442,143)
Net increase in net assets resulting from operations $ 5,886,189
See Notes to Financial Statements
27
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Six Months
Ended
April 30, Year Ended
1995 October 31,
(Unaudited) 1994
From Operations
Net investment income $ 26,328,332 $ 51,831,131
Net realized losses (41,402,724) (17,866,378)
Net unrealized appreciation
(depreciation) 20,960,581 (49,152,939)
Net increase (decrease) in net
assets resulting from operations 5,886,189 (15,188,186)
From Distributions to Shareholders
Net investment income--Class A (25,014,860) (49,858,087)
Net investment income--Class B (338,314) (204,011)
Tax return of capital--Class A -- (2,179,385)
Tax return of capital--Class B -- (8,928)
Decrease in net assets from
distributions to shareholders (25,353,174) (52,250,411)
From Share Transactions
Class A
Proceeds from sales of shares
(5,402,355 and 8,604,443 shares,
respectively) 41,739,325 75,570,434
Net asset value of shares issued
from reinvestment of
distributions (1,603,194 and
2,929,843 shares, respectively) 12,279,196 25,376,952
Net asset value of shares issued
from the acquisition of National
Bond Fund (0 and 60,339,364 shares,
respectively) -- 549,549,755
Cost of shares repurchased
(8,308,465 and 26,352,589 shares,
respectively) (64,096,576) (233,952,592)
Total (10,078,055) 416,544,549
Class B
Proceeds from sales of shares
(413,987 and 790,792 shares,
respectively) 3,207,295 6,778,305
Net asset value of shares issued
from reinvestment of
distributions (14,621 and 8,195
shares, respectively) 112,099 68,334
Cost of shares repurchased
(100,963 and 54,133 shares,
respectively) (764,059) (457,539)
Total 2,555,335 6,389,100
(Decrease) increase in net assets
from share transactions (7,522,720) 422,933,649
Net (decrease) increase in net
assets (26,989,705) 355,495,052
Net Assets
Beginning of period 537,828,192 182,333,140
End of period (including
undistributed net investment
income of $2,369,090 and
$1,393,932, respectively) $510,838,487 $ 537,828,192
See Notes to Financial Statements
28
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
Six Months
Ended
4/30/95 Year Ended October 31,
(Unaudited) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.11 $ 9.11 $ 8.14 $ 7.70 $ 6.72 $ 7.90
Income from investment operations
Net investment income 0.41 0.76 0.74 0.77 0.74 0.81
Net realized and unrealized (loss)
gain (0.31) (0.97) 0.97 0.44 0.98 (1.18)
Total from investment operations 0.10 (0.21) 1.71 1.21 1.72 (0.37)
Less distributions
Dividends from net investment income (0.39) (0.76) (0.74) (0.77) (0.74) (0.81)
Tax return of capital -- (0.03) -- -- -- --
Total distributions (0.39) (0.79) (0.74) (0.77) (0.74) (0.81)
Change in net asset value (0.29) (1.00) 0.97 0.44 0.98 (1.18)
Net asset value, end of period $ 7.82 $ 8.11 $ 9.11 $ 8.14 $ 7.70 $ 6.72
Total return((1)) 1.44%((3)) -2.57% 21.87% 16.28% 26.77% -4.99%
Ratios/supplemental data:
Net assets end of period (thousands) $502,433 $531,773 $182,333 $113,197 $91,664 $80,391
Ratio to average net assets of:
Operating expenses 1.19%((2)) 1.19% 1.04% 1.08% 1.08% 0.89%
Net investment income 10.46%((2)) 9.01% 8.46% 9.51% 10.12% 11.02%
Portfolio turnover 205%((2)) 222% 157% 205% 326% 321%
</TABLE>
<TABLE>
<CAPTION>
Class B
Six Months From
Ended Inception
4/30/95 2/16/94 to
(Unaudited) 10/31/94
<S> <C> <C>
Net asset value, beginning of period $ 8.13 $ 9.38
Income from investment operations
Net investment income 0.37 0.54
Net realized and unrealized (loss)
gain (0.30) (1.25)
Total from investment operations 0.07 (0.71)
Less distributions
Dividends from net investment income (0.36) (0.52)
Tax return of capital -- (0.02)
Total distributions (0.36) (0.54)
Change in net asset value (0.29) (1.25)
Net asset value, end of period $ 7.84 $ 8.13
Total return((1)) 1.07%((3)) -7.67%((3))
Ratios/supplemental data:
Net assets end of period (thousands) $ 8,406 $6,056
Ratio to average net assets of:
Operating expenses 1.94%((2)) 1.80%((2))
Net investment income 9.67%((2)) 9.12%((2))
Portfolio turnover 205%((2)) 222%
</TABLE>
((1)) Maximum sales charge is not reflected in the total return calculation.
((2)) Annualized
((3)) Not annualized
See Notes to Financial Statements
29
<PAGE>
U.S. GOVERNMENT SECURITIES FUND SERIES
INVESTMENT ADVISER'S REPORT
The Phoenix U.S. Government Securities Fund performed well over this
reporting period, reflecting the improved investment climate we have seen
since yearend. For the six months ended April 30, 1995, Class A shares
provided a total return of 6.48% and Class B shares returned 6.06%. This
result was in line with the market as measured by the Lehman Brothers
Government Bond Index. This commonly used, unmanaged index of nonmortgaged
government securities returned 6.53% over the same period. All of these
figures assume reinvestment of any distributions but exclude the effect of
sales charges.
Holdings in mortgage-backed securities, which have been strong performers
over the past year, made a significant contribution to the portfolio's
six-month results. Specifically, the Fund stressed collateralized mortgage
obligation bonds (CMOs). The slightly longer duration of these holdings
versus the market index also helped the portfolio's performance.
As we look ahead, we believe U.S. Treasury securities are presenting more
compelling values than we have seen in some time. Accordingly, we have begun
to reduce exposure to mortgage-backed securities and expect to bring U.S.
Treasury holdings to above-market weights over the next few months.
INVESTOR PROFILE
The U.S. Government Securities Fund is well suited for investors seeking a
high level of current income consistent with safety of principal.
INVESTMENTS AT APRIL 30, 1995
(Unaudited)
STANDARD
& PAR
POOR'S VALUE
RATING (000) VALUE
U.S. GOVERNMENT SECURITIES--97.0%
U.S. Treasury Bonds--34.8%
U.S. Treasury Bonds 7.25%, '04 AAA $ 21,500 $ 21,768,750
U.S. Treasury Bonds 7.50%, '05 AAA 26,000 26,804,336
U.S. Treasury Bonds 10.375%, '12 AAA 9,000 11,216,430
U.S. Treasury Bonds 6.25%, '23 AAA 7,500 6,482,813
U.S. Treasury Bonds 7.125%, '23 AAA 23,000 22,230,903
88,503,232
U.S. Treasury Notes--46.7%
U.S. Treasury Notes 4.75%, '97 AAA 30,000 29,084,700
U.S. Treasury Notes 6.50%, '97 AAA 30,000 29,948,438
U.S. Treasury Notes 6.50%, '97 AAA 27,000 26,917,380
U.S. Treasury Notes 5.125%, '98 AAA 24,000 22,704,720
U.S. Treasury Notes 7.50%, '99 AAA 10,000 10,237,900
118,893,138
Mortgage-Backed Securities--15.5%
GNMA 8%, '05-'06 AAA $ 227 $ 230,330
GNMA 8.50%, '01-'22 AAA 771 789,022
FHLMC 9.30%, '05 AAA 1,500 1,526,880
FHLMC 6.75%, '19 AAA 1,500 1,417,410
FHLMC 7%, '22 AAA 12,000 11,235,000
FNMA 10%, '04 AAA 5,000 5,300,895
FNMA 8.70%, '16 AAA 1,793 1,839,192
FNMA 5.85%, '17 AAA 5,000 4,713,200
FNMA 6.65%, '17 AAA 1,500 1,423,814
FNMA 6.50%, '18 AAA 1,500 1,413,883
FNMA 9.50%, '18 AAA 284 284,296
FNMA 8.50%, '19 AAA 1,500 1,522,065
FNMA 6.75%, '19-'22 AAA 8,442 7,781,133
39,477,120
TOTAL U.S. GOVERNMENT SECURITIES
(Identified cost $251,216,580) 246,873,490
SHORT-TERM OBLIGATIONS--2.1%
Federal Agency Securities--2.1%
Federal Home Loan Mortgage 5.85%, 5-1-95 5,340 5,340,000
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $5,340,000) 5,340,000
TOTAL INVESTMENTS--99.1%
(Identified cost $256,556,580) 252,213,490(a)
Cash & receivables, less liabilities--0.9% 2,394,436
NET ASSETS--100% $ 254,607,926
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $2,026,714 and gross
depreciation of $6,369,804 for income tax purposes. At April 30, 1995,
the aggregate cost of securities for federal income tax purposes
approximates book cost. At October 31, 1994, the Fund had capital loss
carryforwards to the extent provided in regulations of $8,684,579
expiring in 2002. At October 31, 1994, the Fund had additional capital
loss carryforwards aggregating $78,731,755, available to offset future
capital gains as follows: $43,324,463 through 1995, $19,668,129 through
1996, $13,922,859 through 1997, and $1,816,304 through 1998. These
capital loss carryforwards were acquired in connection with the merger of
National Federal Securities Trust Fund into the Fund and will be
available to offset future capital gains subject to an annual limitation
determined under the Internal Revenue Code of 1986, as amended.
See Notes to Financial Statements
30
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995
(Unaudited)
Assets
Investment securities at value
(Identified cost $256,556,580) $252,213,490
Cash 3,502
Receivables
Investment securities sold 30,278,496
Fund shares sold 89,652
Interest 3,292,188
Total assets 285,877,328
Liabilities
Payables
Investment securities purchased 30,037,500
Fund shares repurchased 972,028
Investment advisory fee 95,006
Transfer agent fee 60,000
Distribution fee 54,412
Financial agent fee 6,334
Trustees' fee 6,000
Accrued expenses 38,122
Total liabilities 31,269,402
Net Assets $254,607,926
Net Assets Consist of:
Capital paid in on shares of beneficial interest $270,111,818
Distributions in excess of net investment income (461,747)
Accumulated net realized losses (10,699,055)
Net unrealized depreciation (4,343,090)
Net Assets $254,607,926
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $251,843,190) 27,529,136
Net asset value per share $9.15
Offering price per share
$9.15/(1-4.75%) $9.61
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,764,736) 302,775
Net asset value and offering price per share $9.13
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995
(Unaudited)
Investment Income
Interest $ 9,219,590
Total Investment Income 9,219,590
Expenses
Investment advisory fee 576,292
Distribution fee--Class A 317,630
Distribution fee--Class B 10,131
Financial agent fee 38,420
Transfer agent 235,239
Custodian 19,517
Professional 11,643
Registration 11,485
Trustees 10,636
Printing 4,810
Miscellaneous 1,999
Total Expenses 1,237,802
Net Investment Income 7,981,788
Net Realized and Unrealized (Loss) Gain on Investments
Net realized loss on securities (1,942,951)
Net unrealized appreciation on investments 10,121,634
Net gain on investments 8,178,683
Net increase in net assets resulting from
operations $16,160,471
See Notes to Financial Statements
31
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Six Months
Ended
April 30, Year Ended
1995 October 31,
(Unaudited) 1994
From Operations
Net investment income $ 7,981,788 $ 16,222,097
Net realized loss on securities (1,942,951) (11,416,977)
Net unrealized appreciation
(depreciation) 10,121,634 (15,475,350)
Net increase (decrease) in net
assets resulting from operations 16,160,471 (10,670,230)
From Distributions to Shareholders
Net investment income--Class A (8,382,900) (13,246,429)
Net investment income--Class B (60,635) (19,429)
Net realized gains--Class A -- (92,260)
Tax return of capital--Class A -- (4,146,589)
Tax return of capital--Class B -- (6,082)
Decrease in net assets from
distributions to shareholders (8,443,535) (17,510,789)
From Share Transactions
Class A
Proceeds from sales of shares
(1,087,032 and 2,393,248 shares,
respectively) 9,713,093 22,709,766
Net asset value of shares issued
from reinvestment of
distributions (486,602 and
979,043 shares, respectively) 4,349,200 9,084,714
Net asset value of shares issued
from the acquisition of National
Federal Securities Trust (0 and
28,739,914 shares, respectively) -- 279,879,250
Cost of shares repurchased
(3,569,233 and 8,370,065 shares,
respectively) (32,018,176) (78,447,389)
Total (17,955,883) 233,226,341
Class B
Proceeds from sales of shares
(205,043 and 146,592 shares,
respectivley) 1,827,623 1,340,909
Net asset value of shares issued
from reinvestment of
distributions (3,141 and 1,065
shares, respectively) 28,107 9,600
Cost of shares repurchased (45,097
and 7,969 shares, respectively) (404,067) (72,852)
Total 1,451,663 1,277,657
(Decrease) increase in net assets
from share transactions (16,504,220) 234,503,998
Net (decrease) increase in net
assets (8,787,284) 206,322,979
Net Assets
Beginning of period 263,395,210 57,072,231
End of period (including
distributions in excess of net
investment income of $461,747)
and undistributed net investment
income of $0, respectively) $254,607,926 $263,395,210
See Notes to Financial Statements
32
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
Six
Months
Ended
4/30/95 Year Ended October 31,
(Unaudited) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.88 $ 9.87 $ 9.91 $ 9.65 $ 9.08 $ 9.28
Income from investment operations
Net investment income 0.28 0.64 0.62((1)) 0.65((1)) 0.68((1)) 0.71((1))
Net realized and unrealized gain (loss) 0.28 (1.02) 0.34 0.26 0.57 (0.20)
Total from investment operations 0.56 (0.38) 0.96 0.91 1.25 0.51
Less distributions
Dividends from net investment income (0.29) (0.45) (0.62) (0.65) (0.68) (0.71)
Dividends from net realized gains -- (0.02) (0.38) -- -- --
Tax return of capital -- (0.14) -- -- -- --
Total distributions (0.29) (0.61) (1.00) (0.65) (0.68) (0.71)
Change in net asset value 0.27 (0.99) (0.04) 0.26 0.57 (0.20)
Net asset value, end of period $ 9.15 $ 8.88 $ 9.87 $ 9.91 $ 9.65 $ 9.08
Total return((2)) 6.48%((4)) -3.98% 10.18% 9.74% 14.24% 5.82%
Ratios/supplemental data:
Net assets, end of period (thousands) $251,843 $262,157 $57,072 $40,365 $22,123 $11,957
Ratio to average net assets of:
Operating expenses 0.95%((3)) 0.98% 0.75% 0.77% 0.97% 1.00%
Net investment income 6.19%((3)) 5.92% 6.19% 6.64% 7.20% 7.77%
Portfolio turnover 157%((3)) 101% 264% 285% 130% 265%
</TABLE>
<TABLE>
<CAPTION>
Class B
Six
Months From
Ended Inception
4/30/95 2/24/94 to
(Unaudited) 10/31/94
<S> <C> <C>
Net asset value, beginning of period $ 8.86 $ 9.61
Income from investment operations
Net investment income 0.24 0.39
Net realized and unrealized gain (loss) 0.29 (0.75)
Total from investment operations 0.53 (0.36)
Less distributions
Dividends from net investment income (0.26) (0.30)
Dividends from net realized gains -- --
Tax return of capital -- (0.09)
Total distributions (0.26) (0.39)
Change in net asset value 0.27 (0.75)
Net asset value, end of period $ 9.13 $ 8.86
Total return((2)) 6.06%((4)) -3.83%((4))
Ratios/supplemental data:
Net assets, end of period (thousands) $ 2,765 $1,238
Ratio to average net assets of:
Operating expenses 1.69%((3)) 2.00%((3))
Net investment income 5.48%((3)) 4.49%((3))
Portfolio turnover 157%((3)) 101%
</TABLE>
((1)) Includes reimbursement of operating expenses by investment adviser of
$0.03, $0.04, $0.01 and $0.01, respectively.
((2)) Maximum sales charge is not reflected in the total return calculation.
((3)) Annualized
((4)) Not annualized
See Notes to Financial Statements
33
<PAGE>
MONEY MARKET FUND SERIES
INVESTMENT ADVISER'S REPORT
The Phoenix Money Market Fund continued to perform solidly during the
six-month period ended April 30, 1995. The Fund's Class A current yield on
April 30 was 5.29%, as compared with the 5.49% average yield of taxable money
market funds reported by Donoghue's Money Fund Report. The current yield is a
seven-day annualized yield computed by dividing the average net investment
income earned per share during the seven-day period preceding the date of
calculation by the average daily net asset value per share for the same
period, with the resulting figure multiplied by 365.
The key market factor for the money markets over the past year has been the
Federal Reserve Board's restrictive monetary policy. For most of 1994, we saw
rapidly rising interest rates, while the main challenge early in 1995 was
anticipating when the Fed would complete its tightening moves.
Given the uncertainty concerning monetary policy during this six-month
reporting period, we have continued to stress floating-rate securities for
the Fund. These assets typically provide a level of protection for the
portfolio since they can perform well whether interest rates go up or down.
As always, we maintained our focus on quality assets. During this reporting
period, the Fund had a heavy weighting in U.S. government-backed securities,
which were strong contributors to results. We believe government-backed
assets will continue to present some of the most attractive relative values
in the short-term market. Accordingly we expect to maintain a heavy weighting
in these holdings as we move ahead in 1995.
FEATURES
Your investment in the Money Market Fund earns a high return with the benefit
of the following features.
Daily Yield Information--Our 7-day yield is published in various newspapers
including the Wall Street Journal. It is also obtainable by calling us
toll-free at 800-243-1574.
Expedited Investments--If you would like to start your money working
immediately, you may arrange to purchase shares by wiring Federal Funds. Your
account is credited upon receipt of such funds.
Invest-By-Phone--By using the Invest-By-Phone option, you can transfer money
between your bank account and your Money Market account. This convenient
feature may be used for purchases or redemptions which flow through a
commercial bank, savings bank or credit union which is a member of the
Automated Clearing House.
Free Checkwriting--We'll supply you with an unlimited amount of checks which
you can write against your account. You continue to earn dividends until your
check clears.
Monthly Distributions--Dividends are paid on a monthly basis. You may elect
to have your dividends paid to you or to whomever you designate or your
dividend may be reinvested to purchase additional shares.
INVESTOR PROFILE
Investors seeking high current income with high liquidity are best suited for
this Fund. The Money Market Fund is neither insured nor guaranteed by the
U.S. government, and there can be no assurance the Fund will be able to
maintain a stable net asset value at $1.00 per share.
INVESTMENTS AT APRIL 30, 1995
(Unaudited)
Standard
Face &
Amount Poor's Interest Maturity
(000) Description Rating Rate Date Value
FEDERAL AGENCY SECURITIES--11.1%
$2,540 Federal Home Loan
Banks 6.52% 01/19/96 $ 2,419,014
2,125 Federal Farm Credit
Bank 6.52 01/26/96 2,021,087
6,000 Federal Home Loan
Banks 6.32(c) 01/26/96 6,000,715
1,190 Federal National
Mortgage Assoc. 6.40 06/16/95 1,180,268
675 Federal National
Mortgage Assoc. 6.51 06/29/95 667,749
6,000 Federal Home Loan
Banks 6.54 10/25/95 6,000,000
$3,000 Federal Farm Credit
Bank 6.16(c) 11/01/95 $ 2,998,818
TOTAL FEDERAL AGENCY SECURITIES 21,287,651
Reset
Date
FEDERAL AGENCY SECURITIES--VARIABLE--29.1% (b)
3,500 Federal Farm Credit
Bank (final maturity
02/24/97) 6.26 05/01/95 3,502,930
6,500 Federal Home Loan
Banks
(final maturity
02/21/96) 6.26 05/01/95 6,500,000
See Notes to Financial Statements
34
<PAGE>
Standard
Face &
Amount Poor's Interest Reset
(000) Description Rating Rate Date Value
FEDERAL AGENCY SECURITIES--VARIABLE--continued
$ 6,000 Student Loan Marketing Assoc.
(final maturity 08/16/96) 6.36% 05/01/95 $ 6,000,000
4,000 Federal Home Loan Banks
(final maturity 01/14/97) 6.45 05/01/95 4,000,000
2,000 Student Loan Marketing Assoc.
(final maturity 07/19/96) 6.07 05/02/95 2,000,000
3,500 Student Loan Marketing Assoc.
(final maturity 08/10/95 5.95 05/02/95 3,500,000
1,000 Student Loan Marketing Assoc.
(final maturity 11/24/97) 6.09 05/02/95 1,000,000
3,500 Student Loan Marketing Assoc.
(final maturity 11/10/98) 6.11 05/02/95 3,493,468
2,000 Student Loan Marketing Assoc.
(final maturity 02/22/99) 6.12 05/02/95 2,000,000
5,000 Student Loan Marketing Assoc.
(final maturity 02/08/99) 6.13 05/02/95 5,000,000
3,000 Student Loan Marketing Assoc.
(final maturity 03/07/01) 6.18 05/02/95 3,000,000
3,000 Federal Farm Credit Bank
(final maturity 12/14/98) 6.17 06/14/95 2,994,027
10,000 Federal Home Loan Banks
(final maturity 03/15/96) 6.45 06/15/95 10,000,000
3,000 Federal Home Loan Mortgage
(final maturity 04/24/96) 6.57 07/24/95 3,000,000
TOTAL FEDERAL AGENCY SECURITIES--VARIABLE 55,990,425
Maturity
Date
COMMERCIAL PAPER--62.2%
2,135 Mobil Corp. A-1+ 5.92 05/01/95 2,135,000
4,875 Wal-Mart Stores,
Inc. A-1+ 5.95 05/01/95 4,875,000
4,385 Philip Morris Cos.,
Inc. A-1 5.97 05/01/95 4,385,000
1,900 Preferred
Receivables Funding
Corp. A-1 5.93 05/02/95 1,899,687
4,995 Pfizer, Inc. A-1+ 6.00 05/03/95 4,993,335
5,000 First Deposit
Funding Trust A-1+ 6.00 05/04/95 4,997,500
2,500 Albertson's, Inc. A-1 5.98 05/05/95 2,498,339
Standard
Face &
Amount Poor's Interest Maturity
(000) Description Rating Rate Date Value
$3,810 Wal-Mart Stores,
Inc. A-1+ 5.95% 05/08/95 $ 3,805,592
315 Pfizer, Inc. A-1+ 5.95 05/09/95 314,583
4,330 Philip Morris Cos.,
Inc. A-1 5.97 05/09/95 4,324,256
6,250 E.I. du Pont de
Nemours & Co. A-1+ 5.98 05/09/95 6,241,694
5,000 General Electric
Capital Corp. A-1 5.97 05/12/95 5,000,000
3,000 Receivables Capital
Corp. A-1+ 6.00 05/12/95 2,994,500
3,720 Merrill Lynch &
Co. A-1+ 6.00 05/15/95 3,711,320
9,710 TDK USA Corp. A-1+ 5.98 05/17/95 9,684,193
3,500 Kimberly-Clark
Corp. A-1+ 5.99 05/18/95 3,490,100
5,000 Cargill, Inc. A-1+ 5.96 05/19/95 4,985,100
1,000 TDK USA Corp. A-1+ 5.97 05/22/95 996,517
2,585 H.J. Heinz Co. A-1+ 6.05 05/22/95 2,575,877
6,000 Goldman, Sachs &
Co. A-1+ 6.03 05/23/95 5,977,890
4,400 E.I. du Pont de
Nemours & Co. A-1+ 5.96 05/24/95 4,383,246
6,250 Receivables Capital
Corp. A-1+ 5.98 05/25/95 6,225,083
3,200 First Deposit
Funding Trust A-1+ 5.97 05/30/95 3,184,611
6,235 McKenna Triangle
Corp. P-1(d) 6.55 06/06/95 6,194,161
3,500 Kimberly-Clark
Corp. A-1+ 6.02 07/10/95 3,459,031
1,600 First Deposit
Funding Trust A-1+ 6.25 07/24/95 1,576,667
3,400 Corporate
Receivables Corp A-1+ 6.70 07/24/95 3,346,847
6,940 CXC, Inc. A-1+ 6.36 08/07/95 6,819,846
4,500 Campbell Soup Co. A-1+ 6.52 10/27/95 4,354,116
TOTAL COMMERCIAL PAPER 119,429,091
TOTAL INVESTMENTS--102.4%
(Identified cost $196,707,167) 196,707,167(a)
Cash and receivables, less liabilities--(2.4)% (4,551,016)
NET ASSETS--100.0% $192,156,151
(a) Federal Income Tax Information: At April 30, 1995 the aggregate cost of
securities was the same for book and tax purposes.
(b) Variable rate demand note. The interest rates shown reflect the rate
currently in effect. The maturity dates shown reflect the next interest
rate reset dates.
(c) Rate represents yield to maturity.
(d) Moody's
See Notes to Financial Statements
35
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995
(Unaudited)
Assets
Investment securities at value
(Identified cost $196,707,167) $196,707,167
Receivables
Interest 851,338
Fund shares sold 23,130
Total assets 197,581,635
Liabilities
Payables
Custodian 5,042,182
Fund shares repurchased 6,611
Dividend distributions 174,301
Investment advisory fee 71,151
Transfer agent fee 54,000
Trustees' fee 6,000
Financial agent fee 5,170
Distribution fee 4,208
Accrued expenses 61,861
Total liabilities 5,425,484
Net Assets $192,156,151
Net Assets Consist of:
Capital paid in on shares of beneficial
interest $192,156,151
Net Assets $192,156,151
Class A
Shares of beneficial interest outstanding, $1
par value, unlimited authorization (Net
Assets $185,268,734) 185,268,734
Net asset value and offering price per share $ 1.00
Class B
Shares of beneficial interest outstanding, $1
par value, unlimited authorization (Net
Assets $6,887,417) 6,887,417
Net asset value and offering price per share $ 1.00
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995
(Unaudited)
Investment Income
Interest $6,246,839
Total Investment Income 6,246,839
Expenses
Investment advisory fee 417,695
Distribution fee--Class B 21,429
Financial agent fee 31,327
Transfer agent 255,564
Registration 38,142
Custodian 15,057
Printing 14,060
Professional 10,919
Trustees 9,033
Miscellaneous 5,471
Total Expenses 818,697
Net Investment Income $5,428,142
See Notes to Financial Statements
36
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Six Months
Ended
April 30, Year Ended
1995 October 31,
(Unaudited) 1994
From Operations
Net investment income $ 5,428,142 $ 5,927,905
From Distributions to Shareholders
Net investment income--Class A (5,297,150) (5,919,450)
Net investment income--Class B (130,992) (8,455)
Decrease in net assets from distributions
to shareholders (5,428,142) (5,927,905)
From Share Transactions
Class A
Proceeds from sales of shares
(273,544,048 and 561,856,897 shares,
respectively) 273,544,048 561,856,897
Net asset value of shares issued from
reinvestment of distributions (4,882,996
and 5,735,541 shares, respectively) 4,882,996 5,735,541
Cost of shares repurchased (289,723,953
and 541,360,374 shares, respectively) (289,723,954) (541,360,374)
Total (11,296,910) 26,232,064
Class B
Proceeds from sales of shares (9,356,839
and 2,401,155 shares, respectively) 9,356,839 2,401,155
Net asset value of shares issued from
reinvestment of distributions (106,068
and 6,669 shares, respectively) 106,068 6,669
Cost of shares repurchased (4,661,513 and
321,801 shares, respectively) (4,661,512) (321,801)
Total 4,801,395 2,086,023
(Decrease) increase in net assets from
share transactions (6,495,515) 28,318,087
Net (decrease) increase in net assets (6,495,515) 28,318,087
Net Assets
Beginning of period 198,651,666 170,333,579
End of period $ 192,156,151 $ 198,651,666
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
Six Months
Ended
4/30/95 Year Ended October 31,
(Unaudited) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations
Net investment income 0.026 0.032 0.025((1)) 0.035((1)) 0.060 0.076
Total from investment operations 0.026 0.032 0.025 0.035 0.060 0.076
Less distributions
Dividends from net investment income (0.026) (0.032) (0.025) (0.035) (0.060) (0.076)
Change in net asset value -- -- -- -- -- --
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total return 2.60%((3)) 3.20% 2.50% 3.50% 6.00% 7.60%
Ratios/supplemental data:
Net assets, end of period (thousands) $185,269 $196,566 $170,334 $180,786 $168,573 $163,645
Ratio to average net assets of:
Operating expenses 0.76%((2)) 0.85% 0.85% 0.85% 0.82% 0.85%
Net investment income 5.17%((2)) 3.19% 2.53% 3.50% 6.01% 7.59%
</TABLE>
<TABLE>
<CAPTION>
Class B
Six Months From
Ended Inception
4/30/95 7/15/94 to
(Unaudited) 10/31/94
<S> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00
Income from investment operations
Net investment income 0.023 0.007
Total from investment operations 0.023 0.007
Less distributions
Dividends from net investment income (0.023) (0.007)
Change in net asset value -- --
Net asset value, end of period $ 1.00 $ 1.00
Total return 2.30%((3)) 0.70%((3))
Ratios/supplemental data:
Net assets, end of period (thousands) $ 6,887 $ 2,086
Ratio to average net assets of:
Operating expenses 1.48%((2)) 1.60%((2))
Net investment income 4.55%((2)) 3.46%((2))
</TABLE>
((1)) Includes reimbursement of operating expenses by investment adviser of
$0.0001, $0.001 and $0.001, respectively.
((2)) Annualized
((3)) Not annualized
See Notes to Financial Statements
37
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix Series Fund (the "Trust") is organized as a Massachusetts business
trust and is registered under the Investment Company Act of 1940, as amended,
as a diversified, open-end management investment company. Each Series offers
both Class A and Class B shares. Class A shares are sold with a front-end
sales charge of up to 4.75%. Class B shares are sold with a contingent
deferred sales charge which declines from 5% to zero depending on the period
of time the shares are held. Both classes of shares have identical voting,
dividend, liquidation and other rights and the same terms and conditions,
except that each class bears different distribution expenses and has
exclusive voting rights with respect to its distribution plan. Income and
expenses of each Series are borne pro rata by the holders of both classes of
shares, except that each class bears distribution expenses unique to that
class. The following is a summary of significant accounting policies
consistently followed by the Trust in the preparation of its financial
statements. These policies are in conformity with generally accepted
accounting principles.
A. Security valuation:
In determining the value of the investments of the Balanced Series, the
Convertible Series, the Growth Series, the U.S. Stock Series, the High Yield
Series, and the U.S. Government Securities Series, the securities for which
market quotations are readily available are valued at market value, which is
currently determined using the last reported sale price, or if no sales are
reported, the last reported bid price. Debt securities (other than short-term
obligations, which are valued on the basis of amortized cost, which
approximates market, plus accrued interest, as defined below) are valued on
the basis of broker quotations or valuations provided by a pricing service
when such prices are believed to reflect the fair value of such securities.
Short-term investments having a remaining maturity of less than sixty days
are valued at amortized cost which approximates market. Prices provided by
the pricing service may be determined without exclusive reliance on quoted
prices and take into account appropriate factors such as institution-size
trading in similar groups of securities, yield, quality, coupon rate,
maturity, type of issue, trading characteristics and other market data. Use
of the pricing service has been approved by the Trustees. All other
securities and assets are valued at their fair value as determined in good
faith by or under the direction of the Trustees.
The Money Market Series uses the amortized cost method of security valuation
plus accrued interest, which, in the opinion of the Trustees, represents the
fair value of the particular security. The Trustees monitor the deviations
between the classes' net asset value per share as determined by using
available market quotations and its amortized cost per share. If the
deviation exceeds 1/2 of 1%, the Board of Trustees will consider what action,
if any, should be initiated to provide a fair valuation. This valuation
procedure allows each class of the Series to maintain a constant net asset
value of $1 per share. The assets of the Series will not be invested in any
security with a maturity of greater than 397 days, and the average weighted
maturity of its portfolio will not exceed 90 days.
B. Security transactions and related income:
Security transactions are recorded on the trade date. Dividend income is
recorded on the ex-dividend date or, in the case of certain foreign
securities, as soon as the Series is notified. Interest income is recorded on
the accrual basis. The Trust does not amortize premiums except for the Money
Market Series, but does amortize discounts using the effective interest
method. Realized gains and losses are determined on the identified cost
basis.
C. Income taxes:
Each of the Series is treated as a separate taxable entity. It is the policy
of each Series in the Trust to comply with the requirements of the Internal
Revenue Code (the Code), applicable to regulated investment companies, and to
distribute substantially all of its taxable income to its shareholders. In
addition, each Series 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 Series on the ex-dividend date. Income
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
There differences include the treatment of non-taxable dividends, expiring
capital loss carryforwards, foreign currency gain/loss, partnerships, 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 date
of settlement. 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
38
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
(Unaudited) (Continued)
resulting from a change in currency exchange rates, between the date income
is accrued and paid, is treated as a gain or loss on foreign currency. The
Trust does not separate that portion of the results of operations arising
from changes in exchange rates and that portion arising from changes in the
market prices of securities.
F. Forward currency contracts:
Each of the Series, except U.S. Government Securities Fund Series and Money
Market Fund Series, may enter into forward currency contracts in conjunction
with the planned purchase or sale of foreign denominated securities in order
to hedge the U.S. dollar cost or proceeds. The maximum potential loss from
such contracts is the aggregate face value in U.S. dollars at the time the
contract is opened, however, management believes the likelihood of such loss
to be remote.
A forward currency contract involves an obligation to purchase or sell a
specific currency at a future date, which may be any number of days from the
date of the contract agreed upon by the parties, at a price set at the time
of the contract. These contracts are traded directly between currency traders
and their customers. The contract is marked-to-market daily and the change in
market value is recorded by each Series as an unrealized gain (or loss). When
the contract is closed, the fund records a realized gain (or loss) equal to
the change in the value of the contract when it was opened and the value at
the time it was closed.
G. 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. Upon entering into a futures
contract the Series 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
Series agrees to receive from or pay to the broker an amount of cash equal to
the daily fluctuation in value of the contract. Such receipts or payments are
known as variation margin and are recorded by the Series as unrealized gains
or losses. When the contract is closed, the Series 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.
H. Security lending:
The Trust loans securities to qualified brokers through an agreement with
State Street Bank & Trust (the Custodian). Under the terms of the agreement,
the Trust receives collateral with a market value not less than 100% of the
market value of loaned securities. Collateral consists of cash, securities
issued or guaranteed by the U.S. Government or its agencies and the sovereign
debt of foreign countries. Interest earned on the collateral and premiums
paid by the borrower are recorded as other income by the Trust net of fees
charged by the Custodian for its services in connection with this securities
lending program. Lending portfolio securities involves a risk of delay in the
recovery of the loaned securities or in the foreclosure on collateral. At
April 30, 1995, the Trust had the following amounts of security loans and
collateral:
Balanced Fund Series $275,357,222
Convertible Fund Series 105,912
Growth Fund Series 9,883,950
U.S. Stock Fund Series 7,725,801
High Yield Fund Series 9,400,019
U.S. Government Securities Fund Series 49,276,442
I. Expenses:
Expenses incurred by the Trust with respect to any two or more Series are
allocated in proportion to the net assets of each Series, except where
allocation of direct expense to each Series or an alternative allocation
method can be more fairly made.
NOTE 2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Trust, the Adviser, Phoenix
Investment Counsel, Inc., an indirect wholly-owned subsidiary of Phoenix Home
Life Mutual Insurance Company ("PHL"), is entitled to a fee based upon the
following annual rates as a percentage of the average daily net assets of
each separate Series:
1st $1-2 $2+
Series $1 Billion Billion Billion
Growth Fund Series 0.70% 0.65% 0.60%
U.S. Stock Fund Series 0.70% 0.65% 0.60%
Convertible Fund Series 0.65% 0.60% 0.55%
High Yield Fund Series 0.65% 0.60% 0.55%
Balanced Fund Series 0.55% 0.50% 0.45%
U.S. Government Securities
Fund Series 0.45% 0.40% 0.35%
Money Market Fund Series 0.40% 0.35% 0.30%
The Adviser has agreed to assume expenses and reduce the advisory fee for the
benefit of the Money Market Fund Series to the extent that total expenses
(excluding interest, taxes, brokerage fees and commissions and extraordinary
expenses) exceed 0.85% for Class A shares and 1.60% for Class B shares of the
average of the aggregate daily net asset value.
The Adviser's parent company, Phoenix Equity Planning Corporation (PEPCO), a
wholly-owned subsidiary of PHL, which serves as the national distributor of
the Trust's shares, has advised the Fund that it received selling commissions
of $390,504 for Class A shares and deferred
39
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
(Unaudited) (Continued)
sales charges of $62,556 for Class B shares, for the six months ended April
30, 1995. In addition, each Series except Class A of the Money Market Series
pays PEPCO a distribution fee of an annual rate of 0.25% for Class A shares
and 1.00% for Class B shares applied to the average daily net assets of each
Series. The distributor has advised the Series that of the total amount
expensed for the six months ended April 30, 1995, $903,243 was earned by the
Distributor and $6,173,867 was earned by unaffiliated participants.
As Financial Agent to the Trust and to each Series, PEPCO receives a fee at
an annual rate of 0.03% of the average daily net assets for bookkeeping,
administrative and pricing services. PEPCO serves as the Funds' Transfer
Agent with State Street Bank and Trust Company as sub-transfer agent. For
the six months ended April 30, 1995, transfer agent fees were $5,474,496 of
which PEPCO retained $2,148,772 which is net of fees paid to State Street.
At April 30, 1995, Phoenix Home Life Mutual Insurance Company and affiliates
held Phoenix Series Fund shares which aggregated the following:
Aggregate
Net Asset
Shares Value
High Yield Series Class A 314 $ 2,457
U.S. Stock Fund Series Class B 8,413 109,201
Money Market Fund Series Class A 7,532,474 7,532,474
U.S. Government Securities Fund
Series Class A 260 2,382
NOTE 3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended April 30, 1995
(excluding U.S. Government securities and short-term securities) aggregated
the following:
Purchases Sales
Balanced Fund Series $1,137,493,419 $1,167,842,916
Convertible Fund Series 69,160,391 69,028,377
Growth Fund Series 1,188,303,969 1,084,377,945
U.S. Stock Fund Series 233,040,451 188,770,922
High Yield Fund Series 472,299,061 476,712,186
Purchases and sales of U.S. Government securities during the six months ended
April 30, 1995, aggregated the following:
Purchases Sales
Balanced Fund Series $708,541,871 $528,721,414
Convertible Fund Series -- --
Growth Fund Series -- 73,617,750
U.S. Stock Fund Series -- 14,753,906
High Yield Fund Series 34,186,830 25,099,063
U.S. Government Securities
Fund Series 199,663,950 186,582,782
For the period ended April 30, 1995, the option transaction in the High Yield
Fund Series was as follows:
Premiums Contracted
Calls Written Received Value
Call options outstanding
as of October 31, 1994 $ 0 $ 0
Call options written (81,250) 5,000,000
Call options outstanding
as of April 30, 1995 $(81,250) $5,000,000
NOTE 4. MERGERS
On December 3, 1993, the High Yield Series and the U.S. Government Securities
Series acquired all the net assets of the National Bond Fund ("Bond Fund")
and the National Federal Securities Trust ("Federal Securities"),
respectively, pursuant to each Series' Agreement and Plan of Reorganization
approved by shareholders on November 18, 1993 and November 4, 1993,
respectively. The acquisitions were accomplished by a tax-free exchange of
60,339,364 shares of High Yield Series (valued at $549,549,755) and
28,739,914 shares of U.S. Government Securities Series (valued at
$279,879,250), respectively, for 260,460,685 Bond Fund and 28,623,051 Federal
Securities shares outstanding on December 3, 1993.
40
<PAGE>
WHAT IS THE PHOENIX SERIES FUND?
Phoenix Series Fund is your investment for a lifetime! Consisting of seven
individual portfolios, each with a separate investment objective, the Series
Fund is a mutual fund designed to provide you with convenience and
flexibility in making your investment decisions. As your personal financial
needs change, you can easily redirect your investment to a more suitable
portfolio within the Series Fund.
WHO MANAGES MY FUND?
Phoenix Investment Counsel, Inc., a Phoenix Home Life Mutual Insurance
Company, provides skilled and professional management services, including
investment selection and portfolio supervision.
WHY ARE THERE SEVEN FUNDS?
We have designed seven separate funds, each with different investment
objectives, in order to meet a variety of investment goals.
Phoenix Balanced Fund Series seeks as its investment objectives reasonable
income, long-term capital growth and conservation of capital.
Phoenix Convertible Fund Series seeks as its investment objectives income
and the potential for capital appreciation; these objectives are to be
considered relatively equal.
Phoenix Growth Fund Series seeks as its investment objective long-term
appreciation of capital. Since income is not an objective, any income
generated by the investment of this Series' assets will be incidental to its
objective.
Phoenix High Yield Fund Series seeks as its investment objective high
current income. Capital growth is a secondary objective which will also be
considered when consistent with the primary objective of high current income.
Phoenix Money Market Fund Series seeks as its investment objective as high a
level of current income as is consistent with the preservation of capital and
the maintenance of liquidity.
Phoenix U.S. Stock Fund Series seeks as its investment objective
appreciation of capital through the use of aggressive investment techniques.
Phoenix U.S. Government Securities Fund Series seeks as its investment
objective a high level of current income consistent with safety of principal.
WHAT IF MY FINANCIAL NEEDS CHANGE?
Just call us. At your request, the value of shares in any account can be
exchanged toward the purchase of shares of any other fund within the Series
Fund by using the Exchange Privilege.
HOW DOES THE EXCHANGE PRIVILEGE WORK?
Our Exchange Privilege offers the flexibility needed to assure the most
suitable portfolio throughout your lifetime. At any time you may redirect
some or all of your present holdings into another fund in the Series Fund
which better serves your needs. Just call us with the details. We'll process
the exchange free of charge. The toll-free number to call with your exchange
request is 800-367-5877. The exchange privilege may be modified or
terminated, as noted in the prospectus.
HOW DO I MAKE ADDITIONAL INVESTMENTS?
Send your check directly to State Street Bank and Trust Company, P.O. Box
8301, Boston, MA 02266-8301. Please include either the bottom section of your
confirmation statement or a simple letter of instruction.
CAN I MAKE AUTOMATIC MONTHLY INVESTMENTS?
You may authorize automatic monthly investments for as little as $25 to be
made directly from your personal checking account. An application is
available from the Series Fund.
CAN I ESTABLISH AN INDIVIDUAL RETIREMENT ACCOUNT (IRA) WITH PHOENIX SERIES
FUND?
Yes! The Phoenix Series Fund is an appropriate investment vehicle for
qualified retirement plans including IRAs, Keoghs, Pension and Profit Sharing
Plans.
HOW DO I ESTABLISH AN IRA?
Just call us. We'll send you our EASY IRA KIT which includes an IRA
application and other required documents.
HOW MUCH CAN I INVEST INTO AN IRA?
Individuals may invest up to $2,000 or 100% of earned income, whichever is
less. If you have an unemployed spouse, the maximum contribution could
increase to $2,250. Please refer to the Phoenix EASY IRA KIT for
clarification.
WHAT ARE THE TAX ADVANTAGES OF ESTABLISHING AN IRA?
Individuals who meet the deductibility requirements may deduct their yearly
IRA contributions from their taxable income, and thus, pay less tax.
Additionally, the account's earnings still accumulate tax-free until you
withdraw your money at retirement.
WHO CAN ANSWER MY QUESTIONS?
Most questions can be answered by our Customer Service Department. We are
equipped with computer terminals which allow quick and easy access to
information on your account. In most cases, your questions can be answered by
calling us toll-free at 800-243-1574.
41
<PAGE>
PHOENIX SERIES FUND
101 Munson Street
Greenfield, Massachusetts 01301
Trustees
C. Duane Blinn
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Leroy Keith, Jr.
Philip R. McLoughlin
James M. Oates
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
Officers
Philip R. McLoughlin, President
Michael K. Arends, Vice President
Patricia A. Bannan, Vice President
Curtiss O. Barrows, Vice President
Mary E. Canning, Vice President
James M. Dolan, Vice President
Catherine Dudley, Vice President
John M. Hamlin, Vice President
Jeanne T. Hanley, Vice President
Michael E. Haylon, Vice President
Christopher J. Kelleher, Vice President
Michael R. Matty, Vice President
John J. MacDonald, Vice President
William R. Moyer, Vice President
Amy L. Robinson, Vice President
Leonard J. Saltiel, Vice President
Dorothy J. Skaret, Vice President
James D. Wehr, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Investment Adviser
Phoenix Investment Counsel, Inc.
One American Row
Hartford, Connecticut 06115-2520
Principal Underwriter
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
Transfer Agent
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, CT 06083-2200
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, Massachusetts 02101
Legal Counsel
Jorden, Burt & Berenson
Suite 400 East
1025 Thomas Jefferson Street, N.W.
Washington, D.C. 20007-0805
This report is not authorized for distribution to prospective investors in
the Phoenix Series Fund unless preceded or accompanied by an effective
Prospectus which includes information concerning the sales charge, Fund's
record and other pertinent information.
42
<PAGE>
[BACK COVER]
Phoenix Series Fund
P.O. Box 2200
Enfield, CT 06083-2200
(Phoenix double-diamond logo) Phoenix Investments
PEP 395 (6/95)
Bulk Rate Mail
U.S. Postage
PAID
Springfield, MA
Permit No. 444
<PAGE>
[FRONT COVER]
Phoenix Funds
Phoenix Series Fund
Semi-Annual Report
April 30, 1995
Balanced Fund Series
Convertible Fund Series
Growth Fund Series
U.S. Stock Fund Series
High Yield Fund Series
U.S. Government Securities Fund Series
Money Market Fund Series
(photo: antique money)
(Phoenix double-diamond logo) Phoenix Investments
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<ACCUMULATED-NET-GAINS> 12,986
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 209,028
<NET-ASSETS> 2,115,304
<DIVIDEND-INCOME> 14,586
<INTEREST-INCOME> 8,475
<OTHER-INCOME> 0
<EXPENSES-NET> (12,347)
<NET-INVESTMENT-INCOME> 10,714
<REALIZED-GAINS-CURRENT> 13,303
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<EQUALIZATION> 0
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<NUMBER-OF-SHARES-SOLD> 6,061
<NUMBER-OF-SHARES-REDEEMED> (13,591)
<SHARES-REINVESTED> 4,691
<NET-CHANGE-IN-ASSETS> (35,040)
<ACCUMULATED-NII-PRIOR> 13,473
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<GROSS-EXPENSE> 12,347
<AVERAGE-NET-ASSETS> 2,071,684
<PER-SHARE-NAV-BEGIN> 21.24
<PER-SHARE-NII> 0.11
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<PER-SHARE-DIVIDEND> (0.20)
<PER-SHARE-DISTRIBUTIONS> (0.81)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 21.50
<EXPENSE-RATIO> 1.19
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> PHOENIX GROWTH SERIES FUND SERIES
<SERIES>
<NUMBER> 2
<NAME> CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1994
<PERIOD-START> NOV-01-1994
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 1,957,053
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<ASSETS-OTHER> 22
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<TOTAL-LIABILITIES> 188,858
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<PAID-IN-CAPITAL-COMMON> 1,888,733
<SHARES-COMMON-STOCK> 487
<SHARES-COMMON-PRIOR> 140
<ACCUMULATED-NII-CURRENT> 4,557
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<ACCUMULATED-NET-GAINS> 12,986
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 209,028
<NET-ASSETS> 2,115,304
<DIVIDEND-INCOME> 14,586
<INTEREST-INCOME> 8,475
<OTHER-INCOME> 0
<EXPENSES-NET> (12,347)
<NET-INVESTMENT-INCOME> 10,714
<REALIZED-GAINS-CURRENT> 13,303
<APPREC-INCREASE-CURRENT> 103,415
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<DISTRIBUTIONS-OF-GAINS> (163)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 362
<NUMBER-OF-SHARES-REDEEMED> (24)
<SHARES-REINVESTED> 9
<NET-CHANGE-IN-ASSETS> 134,353
<ACCUMULATED-NII-PRIOR> 13,473
<ACCUMULATED-GAINS-PRIOR> 79,868
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<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6,884
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 12,347
<AVERAGE-NET-ASSETS> 2,071,684
<PER-SHARE-NAV-BEGIN> 21.19
<PER-SHARE-NII> 0.10
<PER-SHARE-GAIN-APPREC> 1.08
<PER-SHARE-DIVIDEND> (0.19)
<PER-SHARE-DISTRIBUTIONS> (0.81)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 21.37
<EXPENSE-RATIO> 1.97
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> PHOENIX U.S. STOCK FUND SERIES
<SERIES>
<NUMBER> 1
<NAME> CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1994
<PERIOD-START> NOV-01-1994
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 133,164
<INVESTMENTS-AT-VALUE> 145,332
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<OTHER-ITEMS-ASSETS> 0
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<PAYABLE-FOR-SECURITIES> 9,634
<SENIOR-LONG-TERM-DEBT> 0
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<PAID-IN-CAPITAL-COMMON> 129,403
<SHARES-COMMON-STOCK> 10,805
<SHARES-COMMON-PRIOR> 10,512
<ACCUMULATED-NII-CURRENT> 598
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (414)
<ACCUM-APPREC-OR-DEPREC> 12,168
<NET-ASSETS> 141,755
<DIVIDEND-INCOME> 512
<INTEREST-INCOME> 1,074
<OTHER-INCOME> 0
<EXPENSES-NET> (879)
<NET-INVESTMENT-INCOME> 707
<REALIZED-GAINS-CURRENT> (130)
<APPREC-INCREASE-CURRENT> 8,182
<NET-CHANGE-FROM-OPS> 8,759
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<DISTRIBUTIONS-OF-GAINS> (9,109)
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<SHARES-REINVESTED> 839
<NET-CHANGE-IN-ASSETS> 870
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<ACCUMULATED-GAINS-PRIOR> 8,859
<OVERDISTRIB-NII-PRIOR> 0
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<GROSS-ADVISORY-FEES> 470
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 879
<AVERAGE-NET-ASSETS> 136,478
<PER-SHARE-NAV-BEGIN> 13.33
<PER-SHARE-NII> 0.07
<PER-SHARE-GAIN-APPREC> 0.71
<PER-SHARE-DIVIDEND> (0.16)
<PER-SHARE-DISTRIBUTIONS> (0.90)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.05
<EXPENSE-RATIO> 1.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> PHOENIX U.S. STOCK FUND SERIES
<SERIES>
<NUMBER> 2
<NAME> CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1994
<PERIOD-START> NOV-01-1994
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 133,164
<INVESTMENTS-AT-VALUE> 145,332
<RECEIVABLES> 6,360
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 151,694
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<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 305
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 129,403
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<SHARES-COMMON-PRIOR> 25
<ACCUMULATED-NII-CURRENT> 598
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<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (414)
<ACCUM-APPREC-OR-DEPREC> 12,168
<NET-ASSETS> 141,755
<DIVIDEND-INCOME> 512
<INTEREST-INCOME> 1,074
<OTHER-INCOME> 0
<EXPENSES-NET> (879)
<NET-INVESTMENT-INCOME> 707
<REALIZED-GAINS-CURRENT> (130)
<APPREC-INCREASE-CURRENT> 8,182
<NET-CHANGE-FROM-OPS> 8,759
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (6)
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<SHARES-REINVESTED> 3
<NET-CHANGE-IN-ASSETS> 9,175
<ACCUMULATED-NII-PRIOR> 1,512
<ACCUMULATED-GAINS-PRIOR> 8,859
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 470
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 879
<AVERAGE-NET-ASSETS> 136,478
<PER-SHARE-NAV-BEGIN> 13.31
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 0.67
<PER-SHARE-DIVIDEND> (0.16)
<PER-SHARE-DISTRIBUTIONS> (0.90)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.97
<EXPENSE-RATIO> 2.06
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> PHOENIX MONEY MARKET FUND SERIES
<SERIES>
<NUMBER> 1
<NAME> CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1994
<PERIOD-START> NOV-01-1994
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 196,707
<INVESTMENTS-AT-VALUE> 196,707
<RECEIVABLES> 874
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 197,581
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,425
<TOTAL-LIABILITIES> 5,425
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 192,156
<SHARES-COMMON-STOCK> 185,269
<SHARES-COMMON-PRIOR> 196,566
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 192,156
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6,247
<OTHER-INCOME> 0
<EXPENSES-NET> (819)
<NET-INVESTMENT-INCOME> 5,428
<REALIZED-GAINS-CURRENT> 0
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<NET-CHANGE-FROM-OPS> 5,428
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<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 273,544
<NUMBER-OF-SHARES-REDEEMED> (289,724)
<SHARES-REINVESTED> 4,883
<NET-CHANGE-IN-ASSETS> (11,166)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 418
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 819
<AVERAGE-NET-ASSETS> 210,578
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.03
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.03)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.76
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> PHOENIX MONEY MARKET FUND SERIES
<SERIES>
<NUMBER> 2
<NAME> CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1994
<PERIOD-START> NOV-01-1994
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 196,707
<INVESTMENTS-AT-VALUE> 196,707
<RECEIVABLES> 874
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 197,581
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,425
<TOTAL-LIABILITIES> 5,425
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 192,156
<SHARES-COMMON-STOCK> 6,887
<SHARES-COMMON-PRIOR> 2,086
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 192,156
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6,247
<OTHER-INCOME> 0
<EXPENSES-NET> (819)
<NET-INVESTMENT-INCOME> 5,428
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 5,428
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (131)
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<NUMBER-OF-SHARES-SOLD> 9,357
<NUMBER-OF-SHARES-REDEEMED> (4,662)
<SHARES-REINVESTED> 106
<NET-CHANGE-IN-ASSETS> 10,099
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 418
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 819
<AVERAGE-NET-ASSETS> 210,578
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.02)
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<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 1.48
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> PHOENIX HIGH YIELD FUND SERIES
<SERIES>
<NUMBER> 1
<NAME> CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1994
<PERIOD-START> NOV-01-1994
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 501,960
<INVESTMENTS-AT-VALUE> 493,605
<RECEIVABLES> 34,569
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 528,174
<PAYABLE-FOR-SECURITIES> 14,631
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,704
<TOTAL-LIABILITIES> 17,335
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 596,951
<SHARES-COMMON-STOCK> 64,239
<SHARES-COMMON-PRIOR> 65,542
<ACCUMULATED-NII-CURRENT> 2,369
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (80,127)
<ACCUM-APPREC-OR-DEPREC> (8,355)
<NET-ASSETS> 510,838
<DIVIDEND-INCOME> 101
<INTEREST-INCOME> 29,253
<OTHER-INCOME> 0
<EXPENSES-NET> (3,026)
<NET-INVESTMENT-INCOME> 26,328
<REALIZED-GAINS-CURRENT> (41,403)
<APPREC-INCREASE-CURRENT> 20,961
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (25,015)
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<NUMBER-OF-SHARES-SOLD> 5,402
<NUMBER-OF-SHARES-REDEEMED> (8,308)
<SHARES-REINVESTED> 1,603
<NET-CHANGE-IN-ASSETS> (29,207)
<ACCUMULATED-NII-PRIOR> 1,394
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 38,724
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,026
<AVERAGE-NET-ASSETS> 508,170
<PER-SHARE-NAV-BEGIN> 8.11
<PER-SHARE-NII> 0.41
<PER-SHARE-GAIN-APPREC> (0.31)
<PER-SHARE-DIVIDEND> (0.39)
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<PER-SHARE-NAV-END> 7.82
<EXPENSE-RATIO> 1.19
<AVG-DEBT-OUTSTANDING> 0
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> PHOENIX HIGH YIELD FUND SERIES
<SERIES>
<NUMBER> 2
<NAME> CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1994
<PERIOD-START> NOV-01-1994
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 501,960
<INVESTMENTS-AT-VALUE> 493,605
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<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 528,174
<PAYABLE-FOR-SECURITIES> 14,631
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,704
<TOTAL-LIABILITIES> 17,335
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 596,951
<SHARES-COMMON-STOCK> 1,073
<SHARES-COMMON-PRIOR> 745
<ACCUMULATED-NII-CURRENT> 2,369
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<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (80,127)
<ACCUM-APPREC-OR-DEPREC> (8,355)
<NET-ASSETS> 510,838
<DIVIDEND-INCOME> 101
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<EXPENSES-NET> (3,026)
<NET-INVESTMENT-INCOME> 26,328
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<DISTRIBUTIONS-OF-INCOME> (338)
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<NUMBER-OF-SHARES-SOLD> 414
<NUMBER-OF-SHARES-REDEEMED> (101)
<SHARES-REINVESTED> 15
<NET-CHANGE-IN-ASSETS> 8,103
<ACCUMULATED-NII-PRIOR> 1,394
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<GROSS-ADVISORY-FEES> 1,625
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<GROSS-EXPENSE> 3,026
<AVERAGE-NET-ASSETS> 508,170
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<PER-SHARE-NII> 0.37
<PER-SHARE-GAIN-APPREC> (0.30)
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<PER-SHARE-NAV-END> 7.84
<EXPENSE-RATIO> 1.94
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> PHOENIX U.S. GOVERNMENT FUND SERIES
<SERIES>
<NUMBER> 1
<NAME> CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1994
<PERIOD-START> NOV-01-1994
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<OTHER-ITEMS-LIABILITIES> 1,231
<TOTAL-LIABILITIES> 31,269
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 270,112
<SHARES-COMMON-STOCK> 27,529
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<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (462)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (10,699)
<ACCUM-APPREC-OR-DEPREC> (4,343)
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<EXPENSES-NET> (1,238)
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<NUMBER-OF-SHARES-SOLD> 1,087
<NUMBER-OF-SHARES-REDEEMED> (3,569)
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