[cover]
APRIL 30, 1996
Phoenix
Series Fund
Semiannual Report
Phoenix Balanced Fund Series
Phoenix Convertible Fund Series
Phoenix Growth Fund Series
Phoenix U.S. Stock Fund Series
Phoenix High Yield Fund Series
Phoenix U.S. Government Securities Fund Series
Phoenix Money Market Fund Series
PHOENIX
SEMIANNUAL REPORT
[logo]
PHOENIX
DUFF&PHELPS
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Chairman's
Message
Dear Shareholders:
We are pleased to provide this consolidated report for the Phoenix Series
Fund, covering the six months ended April 30, 1996.
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
Over the last six months, the outlook for the U.S. economy has shifted
dramatically. At yearend 1995, the consensus opinion on Wall Street was for
continued slow economic growth and benign inflation. During the first quarter
of 1996, however, a number of reports were released which suggested
construction markets were firming, job growth was up and the nation's
factories were busier.
Bond investors reacted negatively to these new signs of economic growth,
pushing interest rates higher and bond prices lower. During this six-month
reporting period, the Lehman Brothers Aggregate Bond Index, an unmanaged but
commonly used measure of bond market performance, returned a paltry 0.53%.
Although some of these fears have moderated as of late, these
brighter-than-expected economic reports have clearly dampened hopes that the
Federal Reserve will cut short-term rates again anytime soon.
The stock market, despite rising interest rates and growing concerns about
corporate profitability, posted outstanding results aided by record mutual
fund inflows. The market's strength has been rotational rather than
broad-based, with nearly every sector showing strength at some point during
the reporting period. Equity investors reacted dramatically to conflicting
reports of economic activity, switching alliances from economically sensitive
stocks to financials and defensive issues and back again. We also witnessed a
major shift in market leadership as small-company stocks began outperforming
their large-cap counterparts. Although the Standard & Poor's 500 Composite
Index (S&P 500) earned an impressive 13.80% over this latest six-month
reporting period, it was still unable to keep pace with the Russell 2000
Index, which posted an 18.42% return for the same period. Respectively, the
S&P 500 and Russell 2000 Indices represent unmanaged but commonly used
measures of large- and small-company stock market performance.
Outlook
Looking ahead, we expect continued volatility in the financial markets,
particularly as investors deal with the current uncertainty about the pace of
economic growth. With the potential for further increases in interest rates
and slowing corporate profits, we believe the remainder of 1996 will present
a challenging market environment. Although our near-term outlook is
moderately cautious for both stocks and bonds, our longer-term view on the
financial markets remains positive. As we move into the second-half of this
fiscal year, we are still finding attractive investment opportunities but
continue to be highly selective for our portfolios.
On behalf of the Phoenix Funds, I want to thank you for investing with us.
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 9
The Growth Fund Series 16
The U.S. Stock Fund Series 23
Fixed Income Funds
The High Yield Fund Series 28
The U.S. Government Securities Fund Series 35
The Money Market Fund Series 40
Notes to Financial Statements 45
Fund Features and General Information 48
<PAGE>
BALANCED FUND SERIES
INVESTMENT ADVISER'S REPORT
Phoenix Balanced Fund posted solid results during the reporting period,
aided by the strong rally in the U.S. equity markets. For the six months
ended April 30, 1996, Class A shares provided a total return of 6.08% and
Class B shares returned 5.69%. These results slightly trailed the Fund's
benchmark, which returned 7.88% over the same period.* All of these figures
assume reinvestment of any distributions but exclude the effect of sales
charges.
Over the last few months, equity investors have reacted dramatically to
reports of stronger economic activity, resulting in superior performance for
economically sensitive stocks. This market shift away from stable,
growth-oriented companies to cyclical stocks hindered the Fund's performance
as we were underweighted in this area. During the reporting period, positive
contributions to equity performance came from our exposure to the energy,
capital goods and technology sectors.
Although bond prices have recently plummeted, the Fund's fixed-income
segment outperformed its benchmark, the Lehman Brothers Aggregate Bond Index,
due to the implementation of our multi-sector rotation approach.
Specifically, our decision to increase the Fund's exposure to "spread-sector"
securities has continued to prove rewarding, and we are particularly pleased
with the strong performance from our emerging market, high yield and
municipal bond holdings.
Moving ahead, we expect further volatility in the equity markets and
continued rotation in market leadership. With earnings growth slowing and the
economy showing signs of renewed strength, our stock selection will focus on
growth companies that can benefit from a rebounding economy. Investment
themes that we believe offer significant growth potential in this environment
include Capital Goods--The Long Wave, Hybrid Network, Retail Revival and 21st
Century Medicine. As for the Fund's fixed-income holdings, we will continue
to invest in attractive sectors and look for opportunities to increase the
fixed-income asset allocation if interest rates continue to rise. At the end
of this reporting period, the Fund's asset allocation was 64% equities, 34%
bonds and 2% cash reserves.
*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, 1996
(Unaudited)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ------ -------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--21.5%
U.S. Treasury Notes--18.3%
U.S. Treasury Notes 4.75%, '98 AAA $30,000 $ 29,116,200
U.S. Treasury Notes 7.125%, '98 AAA 7,500 7,665,675
U.S. Treasury Notes 5%, '99 AAA 43,000 41,710,000
U.S. Treasury Notes 5.875%, '99 AAA 30,000 29,733,600
U.S. Treasury Notes 6.375%, '99 AAA 50,000 50,130,000
U.S. Treasury Notes 7%, '99 AAA 46,600 47,540,388
U.S. Treasury Notes 6.875%, '00 AAA 61,000 62,027,240
U.S. Treasury Notes 6.25%, '01 AAA 20,000 19,881,220
U.S. Treasury Notes 5.625%, '06 AAA 93,500 86,662,813
U.S. Treasury Notes 6%, '26 AAA 26,470 23,533,445
-----------
398,000,581
-----------
Agency Mortgage-Backed Securities--3.2%
GNMA 6.50%, '23-'26 AAA 73,995 69,323,953
-----------
TOTAL U.S. GOVERNMENT SECURITIES
(Identified cost $475,331,385) 467,324,534
-----------
NON-CONVERTIBLE BONDS--6.4%
Non-Agency Mortgage-Backed Securities--5.7%
Airplanes Pass Through Trust 1D 10.875%, '19 BB $ 2,050 $ 2,137,125
CS First Boston Mtg. 1995-AE1, B 7.182%, '27 AA- 5,810 5,613,913
DLJ Mortgage Corp. 95-T10, IA 6.955%, '23 Aa(d) 18,985 17,798,222
G.E. Capital Mortgage Service 96-8, M 7.25%, '26 NR 4,200 3,969,000
Green Tree Financial Corp. 96-2, M1 7.60%, '27 AA- 7,150 6,973,484
Lehman Commercial Conduit 95-C2, B 7.18%, '05 (f) AA 6,092 5,945,674
Merrill Lynch Mortgage, Inc. 95-C2, B 7.53%, '21 Aa(d) 3,295 3,287,347
Merrill Lynch Mortgage, Inc. 96-C1, B 7.42%, '26 AA 7,080 6,924,019
See Notes to Financial Statements
1
<PAGE>
Balanced Fund Series
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ------ -------------
Non-Agency Mortgage-Backed Securities--continued
Residential Funding Mtg. 96-S8, A-4 6.75%, '11 AAA $ 2,841 $ 2,713,398
Residential Funding Mtg. 96-S1, L 7.10%, '26 AAA 7,000 6,531,875
Residential Funding Mtg. 96-S4, M1 7.25%, '26 AA 5,715 5,404,228
Resolution Trust Corp. 93-C1, B 8.75%, '24 Aa(d) 5,675 5,746,824
Resolution Trust Corp. 95-C1, B 6.90%, '27 Aa(d) 6,900 6,686,531
Resolution Trust Corp. 95-C2, B 6.80%, '27 Aa(d) 13,713 13,126,358
Resolution Trust Corp. 95-2, M2 7.0093%, '29 Aa(d) 5,455 5,388,824
SASC 95-C4, B 7%, '26 AA 5,000 4,787,500
SASC 96-CFL, C 6.525%, '28 A 5,460 5,197,238
Securitized Asset Securities 93-J, 2B 6.8076%,
'23 A 7,319 6,723,973
Structured Asset Securities 95-C1, C 7.375%, '24 A 10,151 9,751,304
-----------
124,706,837
-----------
Oil--0.1%
Petropower Funding 144A 7.36%, '14 (c) BBB 2,900 2,712,283
-----------
Publishing, Broadcasting, Printing & Cable--0.3%
Continental Cablevision 144A 8.30%, '06 (c) BB+ 5,000 5,150,000
Rogers Communications, Inc. 9.125%, '06 BB- 1,000 956,250
-----------
6,106,250
-----------
Textile & Apparel--0.2%
Westpoint Stevens 9.375%, '05 B+ 4,100 4,028,250
-----------
Truckers & Marine--0.1%
Teekay Shipping Corp. 8.32%, '08 BB 1,675 1,599,625
-----------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $143,143,408) 139,153,245
-----------
FOREIGN GOVERNMENT SECURITIES--3.1%
Argentina--0.7%
Republic of Argentina Discount L-GL Euro 6.56%,
'23 (f) BB- 12,000 8,302,500
Republic of Argentina Par L-GP 5.25%, '23 (f) BB- 13,750 7,502,344
-----------
15,804,844
-----------
Brazil--0.8%
Republic of Brazil Discount Series ZL Euro 6.50%,
'24 (f) B 12,250 8,291,719
Republic of Brazil Par Z-L Euro 4.25%, '24 (f) B 14,700 7,735,875
-----------
16,027,594
-----------
Colombia--0.6%
Republic of Colombia 7.25%, '03 BBB $ 8,950 $ 8,423,830
Republic of Colombia Euro
9%, '97 BBB 5,000 5,066,200
-----------
13,490,030
-----------
Mexico--0.6%
United Mexican Discount B Euro 6.77%, '19 (e) (f) BB 8,500 6,815,938
United Mexican States Euro D 6.55%, '19 (e) (f) BB 700 561,313
United Mexican States Series B Euro 6.25%, '19
(e) BB 9,000 5,940,000
-----------
13,317,251
-----------
Poland--0.4%
Poland Discount Euro 6.437%, '24 (f) Baa(d) 9,250 8,602,500
-----------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $64,250,356) 67,242,219
-----------
FOREIGN NON-CONVERTIBLE BONDS--0.6%
Indonesia--0.2%
Asia Pulp & Paper Co. Yankee 11.75%, '05 BB 5,000 4,875,000
-----------
Philippines--0.4%
Bank of Philippines PCIR Euro 6.25%, '17 (f) BB 11,250 8,901,563
-----------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $13,403,862) 13,776,563
-----------
MUNICIPAL BONDS--2.1%
California--0.8%
Kern County Pension Obligation Taxable 7.26%, '14 AAA 6,830 6,506,668
Long Beach Pension Obligation Taxable 6.87%, '06 AAA 3,090 2,990,966
San Bernardino County Obligation Revenue Tax
6.87%, '08 AAA 1,480 1,420,504
San Bernardino County Obligation Revenue Tax
6.94%, '09 AAA 4,035 3,872,511
Ventura County Pension Taxable 6.58%, '06 AAA 3,560 3,365,375
-----------
18,156,024
-----------
Florida--0.8%
Miami Beach Spec. Obligation Taxable 8.60%, '21 AAA 11,675 12,428,388
University Miami Exchange Revenue A 7.65%, '20 AAA 4,435 4,300,442
-----------
16,728,830
-----------
Michigan--0.2%
Michigan Public Power Agency Sinker 5.25%, '18 AAA 6,000 5,463,900
-----------
See Notes to Financial Statements
2
<PAGE>
Balanced Fund Series
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ------ -------------
South Carolina--0.2%
South Carolina Public Service Series C 5%, '25 AAA $ 4,620 $ 3,990,941
-----------
Virginia--0.1%
Newport News Taxable Series B 7.05%, '25 AA- 1,500 1,366,230
-----------
TOTAL MUNICIPAL BONDS
(Identified cost $47,674,634) 45,705,925
-----------
CONVERTIBLE BONDS--2.0%
Airlines--0.7%
Delta Airlines, Inc. Cv. 3.23%, '03 B+ 14,000 14,332,500
-----------
Professional Services--0.6%
Automatic Data Processing, Inc. Cv. 0%, '12 AA 25,000 13,062,500
-----------
Retail--0.7%
Federated Department Stores Cv. 5%, '03 BB- 3,800 4,246,500
Staples, Inc. SDCV 144A 4.50%, '00 (c) B+ 10,000 10,650,000
-----------
14,896,500
-----------
TOTAL CONVERTIBLE BONDS
(Identified cost $37,710,134) 42,291,500
-----------
SHARES
------
COMMON STOCKS--61.4%
Aerospace & Defense--3.0%
Boeing Company 300,000 24,637,500
General Motors Corp. Class H 276,800 16,919,400
Lockheed Martin Corp. 100,000 8,062,500
United Technologies Corp. 150,000 16,575,000
-----------
66,194,400
-----------
Airlines--1.0%
AMR Corp. (b) 250,000 22,312,500
-----------
Autos & Trucks--0.4%
Chrysler Corp. 150,000 9,412,500
-----------
Banks--1.5%
Citicorp 250,000 19,687,500
Nationsbank Corp. 150,000 11,962,500
-----------
31,650,000
-----------
Beverages--1.0%
PepsiCo, Inc. 351,500 22,320,250
-----------
Chemical--1.4%
Monsanto Co. 200,000 30,300,000
-----------
Computer Software & Services--4.5%
Computer Associates International, Inc. 149,500 10,969,563
Computer Sciences Corp. (b) 175,000 12,950,000
Discreet Logic, Inc. (b) 89,000 1,479,625
HBO & Co. 46,600 5,533,750
Informix Corp. (b) 370,000 9,758,750
Microsoft Corp. (b) 300,000 34,012,500
Oracle Corp. (b) 700,000 23,625,000
-----------
98,329,188
-----------
SHARES VALUE
------ -------------
Conglomerates--1.9%
Allied Signal, Inc. 300,000 $17,437,500
Tyco International Ltd. 600,000 23,175,000
-----------
40,612,500
-----------
Cosmetics & Soaps--1.6%
Colgate Palmolive Co. 72,600 5,562,975
Estee Lauder Co. Class A 13,600 498,100
Procter & Gamble Co. 350,000 29,575,000
-----------
35,636,075
-----------
Diversified Financial Services--2.3%
Donaldson Lufkin & Jenrette 150,000 5,062,500
Federal National Mortgage Association 350,000 10,718,750
MGIC Investment Corp. 250,000 13,562,500
Travelers Group, Inc. 325,000 19,987,500
-----------
49,331,250
-----------
Electrical Equipment--1.0%
General Electric Co. 200,000 15,500,000
Linear Technology Corp. 175,000 6,015,625
-----------
21,515,625
-----------
Electronics--2.3%
Altera Corporation (b) 413,900 21,833,225
Oak Technology, Inc. (b) 386,700 6,912,263
Perkin Elmer Corp. 400,000 21,950,000
-----------
50,695,488
-----------
Engineering & Construction--1.1%
Fluor Corp. 350,000 23,143,750
-----------
Entertainment, Leisure & Gaming--0.9%
Viacom, Inc. Class B (b) 450,000 18,450,000
-----------
Food--0.3%
Nabisco Holdings Corp. Class A 200,000 6,125,000
-----------
Healthcare--Diversified--1.0%
American Home Products Corp. 200,000 21,100,000
Genome Therapeutics Corp. (b) 150,000 1,481,250
-----------
22,581,250
-----------
Healthcare--Drugs--3.2%
Alza Corp. (b) 418,300 11,921,550
Amgen, Inc. (b) 284,400 16,353,000
Genzyme Corp. (b) 300,000 16,875,000
Pharmacia & Upjohn, Inc. 616,250 23,571,563
-----------
68,721,113
-----------
Hospital Management & Services--2.2%
Caremark International, Inc. 420,000 11,602,500
Columbia/HCA Healthcare Corp. 100,000 5,312,500
HEALTHSOUTH Corp. (b) 160,400 5,954,850
Manor Care, Inc. 465,000 18,658,125
Oxford Health Plans (b) 118,600 5,989,300
-----------
47,517,275
-----------
Insurance--1.6%
Ace Ltd. 172,000 7,568,000
Allstate Corp. 301,900 11,736,363
American International Group, Inc. 175,000 15,990,625
-----------
35,294,988
-----------
Lodging & Restaurants--0.9%
Marriott International, Inc. 200,000 9,750,000
McDonald's Corp. 200,000 9,575,000
-----------
19,325,000
-----------
See Notes to Financial Statements
3
<PAGE>
Balanced Fund Series
SHARES VALUE
------ -------------
Machinery--0.6%
Dover Corp. 250,000 $ 12,875,000
-----------
Medical Products & Supplies--2.6%
Becton Dickinson & Co. 185,000 14,915,625
Guidant Corp. 334,100 18,751,363
Johnson & Johnson 250,000 23,125,000
-----------
56,791,988
-----------
Natural Gas--1.4%
Anadarko Petroleum Corp. 150,000 8,737,500
Apache Corp. 112,900 3,274,100
Consolidated Natural Gas Co. 71,000 3,319,250
Enron Corp. 35,800 1,440,950
Enron Oil & Gas Co. 400,000 10,600,000
Sonat, Inc. 51,600 2,251,050
-----------
29,622,850
-----------
Office & Business Equipment--3.0%
Hewlett Packard Co. 208,000 22,022,000
Sun Microsystems, Inc. (b) 404,100 21,922,425
Xerox Corp. 150,900 22,106,850
-----------
66,051,275
-----------
Oil--1.1%
Mobil Corp. 200,000 23,000,000
-----------
Oil Service & Equipment--4.1%
Baker Hughes, Inc. 400,000 12,700,000
Dresser Industries, Inc. 429,600 13,693,500
Halliburton Co. 400,000 22,950,000
Schlumberger Ltd. 350,000 30,887,500
Tidewater, Inc. 200,000 8,500,000
-----------
88,731,000
-----------
Pollution Control--0.9%
Raychem Corp. 150,000 11,681,250
WMX Technologies, Inc. 200,000 6,950,000
-----------
18,631,250
-----------
Professional Services--1.7%
Fritz Companies, Inc. (b) 250,000 9,187,500
HFS, Inc. (b) 102,900 5,286,488
Manpower, Inc. 615,300 22,766,100
-----------
37,240,088
-----------
Publishing, Broadcasting, Printing & Cable--0.2%
Knight-Ridder, Inc. 69,800 5,051,775
-----------
Retail--3.6%
AutoZone, Inc. (b) 155,900 5,690,350
Federated Department Stores, Inc. (b) 850,000 28,368,750
Melville Corp. 400,000 15,550,000
Office Depot, Inc. (b) 800,000 17,900,000
Sears Roebuck & Co. 214,500 10,698,188
-----------
78,207,288
-----------
Retail--Food--0.9%
Safeway, Inc. (b) 160,400 5,413,500
Sysco Corp. 450,000 14,456,250
-----------
19,869,750
-----------
Telecommunications Equipment--3.2%
Ascend Communications, Inc. (b) 150,000 9,225,000
Bay Networks, Inc. (b) 400,000 12,600,000
Telecommunications Equipment--continued
Cisco Systems, Inc. (b) 800,000 $ 41,500,000
Newbridge Networks Corp. (b) 100,000 6,437,500
-----------
69,762,500
-----------
Textile & Apparel--1.0%
Nike, Inc. Class B 260,000 22,750,000
-----------
Tobacco--1.2%
Philip Morris Companies, Inc. 300,000 27,037,500
-----------
Utility--Telephone--2.8%
Ameritech Corp. 300,000 17,512,500
Bell Atlantic Corp. 100,000 6,500,000
NYNEX Corp. 48,500 2,382,563
SBC Communications, Inc. 300,000 15,000,000
U.S. West Communications Group 600,000 19,650,000
-----------
61,045,063
-----------
TOTAL COMMON STOCKS
(Identified cost $1,203,303,630) 1,336,135,479
-----------
FOREIGN COMMON STOCKS--0.7%
Oil--0.7%
British Petroleum PLC ADR (United Kingdom) 135,000 14,748,750
-----------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $6,289,590) 14,748,750
-----------
TOTAL LONG-TERM INVESTMENTS--97.8%
(Identified cost $1,991,106,999) 2,126,378,215
-----------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ------ -------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--5.4%
Commercial Paper--3.3%
McDonald's Corp. 5.25%, 5-1-96 A-1+ $ 635 635,000
CXC, Inc. 5.375%, 5-1-96 A-1+ 3,440 3,440,000
General Electric Corporation 7.875%, 5-1-96 A-1+ 5,000 5,000,305
Exxon Imperial U.S., Inc. 5.23%, 5-2-96 A-1+ 3,210 3,209,534
BellSouth Telecommunications, Inc. 5.26%, 5-6-96 A-1+ 4,120 4,116,990
BellSouth Telecommunications, Inc. 5.35%, 5-8-96 A-1+ 765 764,204
Preferred Receivables Funding 5.27%, 5-9-96 A-1 1,675 1,673,038
Abbott Labs 5.29%, 5-14-96 A-1+ 4,970 4,960,506
Kimberly-Clark Corp. 5.28%, 5-15-96 A-1+ 489 487,996
Warner-Lambert Co. 5.30%, 5-20-96 A-1+ 2,830 2,821,640
Warner-Lambert Co. 5.42%, 5-20-96 A-1+ 7,000 6,979,321
See Notes to Financial Statements
4
<PAGE>
Balanced Fund Series
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ------ -------------
Commercial Paper--continued
First Deposit Funding Trust 5.10%, 5-22-96 A-1+ $3,192 $ 3,181,604
Kimberly-Clark Corp. 5.27%, 5-30-96 A-1+ 5,525 5,501,545
Receivables Capital Corp. 5.33%, 5-31-96 A-1 7,000 6,968,908
Pfizer, Inc. 5.27%, 6-7-96 A-1+ 8,890 8,841,848
First Deposit Funding Trust 5.33%, 7-18-96 A-1+ 4,415 4,363,168
Beta Finance, Inc. 5.25%, 7-31-96 A-1+ 5,000 4,933,646
Warner-Lambert Co. 4.87%, 8-28-96 A-1+ 4,000 3,929,080
------------
71,808,333
------------
Federal Agency Securities--1.2%
Federal Farm Credit Bank 5.15%, 5-1-96 895 895,000
Federal Home Loan Banks 5.02%, 7-24-96 8,500 8,397,288
Federal Home Loan Banks 4.77%, 8-9-96 4,670 4,602,145
Federal Home Loan Banks 4.77%, 8-15-96 5,000 4,923,000
Federal Home Loan Banks 5.75%, 10-18-96 5,000 5,001,700
Federal Farm Credit Bank 5.40%, 4-1-97 3,000 2,991,630
------------
26,810,763
------------
PAR
VALUE
(000) VALUE
------ -------------
Federal Agency--Variable--0.7%
Federal National Mortgage Assoc. 5.15%, 5-3-96 $ 135 $ 134,941
Federal National Mortgage Assoc. 5.19%, 5-7-96 1,285 1,283,888
Federal National Mortgage Assoc. 5.13%,
8-23-96 3,125 3,073,500
Student Loan Marketing Assoc. 5.25%, 10-10-96 5,000 5,000,000
Federal Farm Credit Bank 5.44%, 11-3-97 5,000 4,999,950
------------
14,492,279
------------
U.S. Treasury Bills--0.2%
U.S. Treasury Bills 4.86%, 2-6-97 4,075 3,909,963
------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $117,100,905) 117,021,338
------------
TOTAL INVESTMENTS--103.2%
(Identified cost $2,108,207,904) 2,243,399,553(a)
Cash and receivables, less liabilities--(3.2%) (69,030,387)
------------
NET ASSETS--100.0% $2,174,369,166
============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $174,507,484 and gross
depreciation of $40,142,673 for income tax purposes. At April 30, 1996,
the aggregate cost of securities for federal income tax purposes was
$2,109,034,742.
(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,
1996, these securities amounted to a value of $18,512,283 or 0.9% of net
assets.
(d) As rated by Moody's, Fitch or Duff and Phelps.
(e) Mexico Value Recovery Euro Rights incorporated as a unit.
(f) Variable or step coupon bond; interest rate shown reflects the rate
currently in effect.
ADR--American Depository Receipt
See Notes to Financial Statements
5
<PAGE>
Balanced Fund Series
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
(Unaudited)
Assets
Investment securities at value
(Identified cost $2,108,207,904) $2,243,399,553
Cash 118,871
Receivables
Investment securities sold 11,519,955
Fund shares sold 996,437
Dividends and interest 10,942,171
-----------
Total assets 2,266,976,987
-----------
Liabilities
Payables
Investment securities purchased 86,121,487
Fund shares repurchased 4,014,762
Investment advisory fee 931,555
Transfer agent fee 769,803
Distribution fee 463,013
Financial agent fee 53,907
Trustees' fee 5,190
Accrued expenses 248,104
-----------
Total liabilities 92,607,821
-----------
Net Assets $2,174,369,166
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $1,929,607,169
Undistributed net investment income 4,731,678
Accumulated net realized gain 104,838,670
Net unrealized appreciation 135,191,649
-----------
Net Assets $2,174,369,166
===========
Class A
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$2,151,616,717) 127,721,236
Net asset value per share $16.85
Offering price per share $16.85/(1-4.75%) $17.69
Class B
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$22,752,449) 1,353,038
Net asset value and offering price per share $16.82
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996
(Unaudited)
Investment Income
Dividends $ 10,941,739
Interest 34,503,547
----------
Total investment income 45,445,286
----------
Expenses
Investment advisory fee 5,956,039
Distribution fee--Class A 2,869,399
Distribution fee--Class B 100,486
Financial agent fee 347,342
Transfer agent 1,993,254
Custodian 118,241
Printing 105,357
Registration 25,629
Professional 36,021
Trustees 7,762
Miscellaneous 44,137
----------
Total expenses 11,603,667
----------
Net investment income 33,841,619
----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 104,642,040
Net realized loss on foreign currency transactions (300)
Net change in unrealized appreciation (depreciation)
on investments 1,033,313
----------
Net gain on investments 105,675,053
----------
Net increase in net assets resulting from operations $139,516,672
==========
See Notes to Financial Statements
6
<PAGE>
Balanced Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Year Ended
1996 October 31,
(Unaudited) 1995
----------- ---------------
<S> <C> <C>
From Operations
Net investment income $ 33,841,619 $ 79,057,337
Net realized gain 104,641,740 145,666,021
Net change in unrealized appreciation (depreciation) 1,033,313 118,762,724
--------- -------------
Increase in net assets resulting from operations 139,516,672 343,486,082
--------- -------------
From Distributions to Shareholders
Net investment income--Class A (37,324,206) (77,388,590)
Net investment income--Class B (255,721) (288,920)
Net realized gains--Class A (122,887,782) --
Net realized gains--Class B (980,590) --
--------- -------------
Decrease in net assets from distributions to shareholders (161,448,299) (77,677,510)
--------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (5,120,812 and 12,302,449 shares,
respectively) 87,486,497 194,015,940
Net asset value of shares issued from reinvestment of distributions
(8,953,166 and 4,436,794 shares, respectively) 148,152,832 70,169,584
Cost of shares repurchased (23,968,975 and 49,930,419 shares, respectively) (407,795,586) (784,885,316)
--------- -------------
Total (172,156,257) (520,699,792)
--------- -------------
Class B
Proceeds from sales of shares (355,950 and 769,217 shares, respectively) 6,082,079 12,085,660
Net asset value of shares issued from reinvestment of distributions
(68,058 and 16,234, respectively) 1,124,622 261,080
Cost of shares repurchased (68,464 and 91,818 shares, respectively) (1,161,208) (1,481,587)
--------- -------------
Total 6,045,493 10,865,153
--------- -------------
Decrease in net assets from share transactions (166,110,764) (509,834,639)
--------- -------------
Net decrease in net assets (188,042,391) (244,026,067)
Net Assets
Beginning of period 2,362,411,557 2,606,437,624
--------- -------------
End of period (including undistributed net investment income of $4,731,678
and $8,469,986, respectively) $2,174,369,166 $2,362,411,557
========= =============
</TABLE>
See Notes to Financial Statements
7
<PAGE>
Balanced Fund Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------
Six Months
Ended
4/30/96 Year Ended October 31,
(Unaudited) 1995 1994 1993
------------ ----------- ----------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $17.04 $15.23 $16.64 $15.92
Income from investment operations
Net investment income 0.26 0.52 0.48 0.46
Net realized and unrealized gain (loss) 0.75 1.80 (1.01) 1.08
---------- --------- --------- -----------
Total from investment operations 1.01 2.32 (0.53) 1.54
---------- --------- --------- -----------
Less distributions
Dividends from net investment income (0.28) (0.51) (0.49) (0.46)
Dividends from net realized gains (0.92) -- (0.39) (0.36)
---------- --------- --------- -----------
Total distributions (1.20) (0.51) (0.88) (0.82)
---------- --------- --------- -----------
Change in net asset value (0.19) 1.81 (1.41) 0.72
---------- --------- --------- -----------
Net asset value, end of period $16.85 $17.04 $15.23 $16.64
========== ========= ========= ===========
Total return (1) 6.08%(3) 15.52% -3.28% 9.92%
Ratios/supplemental data:
Net assets, end of period (thousands) $2,151,617 $2,345,440 $2,601,808 $3,126,014
Ratio to average net assets of:
Operating expenses 0.99%(2) 1.02% 0.96% 0.95%
Net investment income 2.91%(2) 3.27% 3.03% 2.88%
Portfolio turnover 74%(3) 197% 159% 130%
Average commission rate paid $0.0533 N/A N/A N/A
</TABLE>
Class A
--------------------------
1992 1991
----------- -----------
Net asset value, beginning of period $16.05 $13.86
Income from investment operations
Net investment income 0.52 0.62
Net realized and unrealized gain (loss) 0.92 2.84
--------- ---------
Total from investment operations 1.44 3.46
--------- ---------
Less distributions
Dividends from net investment income (0.54) (0.64)
Dividends from net realized gains (1.03) (0.63)
--------- ---------
Total distributions (1.57) (1.27)
--------- ---------
Change in net asset value (0.13) 2.19
--------- ---------
Net asset value, end of period $15.92 $16.05
========= =========
Total return (1) 9.77% 26.26%
Ratios/supplemental data:
Net assets, end of period (thousands) $2,146,726 $941,754
Ratio to average net assets of:
Operating expenses 0.98% 0.98%
Net investment income 3.55% 4.22%
Portfolio turnover 136% 196%
Average commission rate paid N/A N/A
Class B
---------------------------------
Six
Months From
Ended Year Inception
4/30/96 Ended 7/15/94to
(Unaudited) 10/31/95 10/31/94
-------- ------- ----------
Net asset value, beginning of period $17.01 $15.23 $15.27
Income from investment operations
Net investment income 0.19 0.40 0.09
Net realized and unrealized gain
(loss) 0.76 1.80 (0.04)
------ ----- --------
Total from investment operations 0.95 2.20 0.05
------ ----- --------
Less distributions
Dividends from net investment income (0.22) (0.42) (0.09)
Dividends from net realized gains (0.92) -- --
------ ----- --------
Total distributions (1.14) (0.42) (0.09)
------ ----- --------
Change in net asset value (0.19) 1.78 (0.04)
------ ----- --------
Net asset value, end of period $16.82 $17.01 $15.23
====== ===== ========
Total return (1) 5.69%(3) 14.68% 0.34%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $22,752 $16,971 $4,629
Ratio to average net assets of:
Operating expenses 1.74%(2) 1.78% 1.65%(2)
Net investment income 2.17%(2) 2.46% 2.36%(2)
Portfolio turnover 74%(3) 197% 159%
Average commission rate paid $0.0533 N/A N/A
(1) Maximum sales load is not reflected in the total return calculation.
(2) Annualized
(3) Not annualized
See Notes to Financial Statements
8
<PAGE>
CONVERTIBLE FUND SERIES
INVESTMENT ADVISER'S REPORT
Phoenix Convertible Fund posted solid results over this latest reporting
cycle. For the six months ended April 30, 1996, the Fund's Class A shares
provided a total return of 10.62% and Class B shares returned 10.24%. These
results trailed the CS First Boston Convertible Securities Index* which
earned 13.04% for the same period. All of these figures assume reinvestment
of any distributions but exclude the effect of sales charges.
The Fund's conservative posture and focus on higher quality holdings
relative to its universe adversely affected performance during the reporting
period. Our exposure to the media industry, particularly cable companies,
also hindered results. Although cable companies have been out of favor for
some time, a number of these firms have attractive valuations, strong cash
flow growth and new products. We believe that these catalysts will drive up
stock prices for this industry group in the future.
Investment themes that contributed positively to performance during the
reporting cycle included Rising Energy Demand and 21st Century Medicine. In
terms of specific portfolio holdings, Career Horizons, El Paso Natural Gas,
Noble Affiliates, Perkin-Elmer, and Westinghouse produced stellar gains.
Looking ahead, our strategy will continue to focus on risk-averse
participation in the equity markets and on the preservation of capital. Given
the recent volatility in the financial markets, we believe the Fund is well
positioned for what may be a challenging environment ahead. Currently, the
portfolio's primary areas of thematic emphasis are Rising Energy Demand, 21st
Century Medicine, and Deregulating Media.
*The CS First Boston Convertible Index is an unmanaged but commonly used
index that tracks the returns of approximately 300 convertible bonds and
preferred stocks rated "B-" or better by Standard & 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, 1996
(Unaudited)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ------ -------------
<S> <C> <C> <C>
CONVERTIBLE BONDS--67.2%
Advertising--1.4%
Interpublic Group Euro. Cv. 3.75%, '02 NR $ 2,000 $ 2,120,000
Interpublic Group SDCV 144A 3.75%, '02 (c) NR 1,000 1,060,000
-----------
3,180,000
-----------
Banks--1.3%
Mitsubishi Bank Global Cv 3%, '02 AA- 2,500 2,862,500
-----------
Conglomerates--4.5%
Hanson America, Inc. Cv. 144A 2.39%, '01 (c) A+ 7,800 6,181,500
Polymax Euro Cv. 144A 2%, '06 (c) NR 4,000 3,820,000
-----------
10,001,500
-----------
Electrical Equipment--1.0%
General Signal Corp. Cv. 5.75%, '02 A- 2,000 2,135,000
-----------
Electronics--0.7%
3COM Corp. Cv. 144A 10.25%, '01 (c) BB+ $ 1,000 $ 1,521,250
-----------
Entertainment, Leisure & Gaming--7.9%
Comcast Corp. Cv. 3.375%, '05 (e) B+ 5,000 4,575,000
Comcast Corp. Cv. 1.125%, '07 B+ 10,700 5,162,750
IMAX Corp. Cv. 144A 5.75%, '03 (c) B- 1,000 992,500
Time Warner, Inc. Cv. 0%, '13 BBB- 12,000 5,040,000
Turner Broadcasting Cv. 144A 0%, '07 (c) BB- 4,000 1,915,000
-----------
17,685,250
-----------
Food--2.2%
Grand Metropolitan PLC Cv. 144A 6.50%, '00 (c) A+ 4,250 4,823,750
-----------
Healthcare--Diversified--7.5%
Roche Holdings, Inc. Cv. 144A 0%, '10 (c) NR 24,000 10,590,000
Sandoz Capital BVI Ltd. Cv. 144A 2%, '02 (c) NR 6,000 6,405,000
-----------
16,995,000
-----------
See Notes to Financial Statements
9
<PAGE>
Convertible Fund Series
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ------ -------------
Healthcare--Drugs--2.6%
Alza Corp. Cv. 5%, '06 BBB- $ 2,000 $ 2,005,000
Chiron Corp. Cv. 144A 1.90%, '00 (c) BBB+ 3,500 3,325,000
Sepracor, Inc. Cv. 144A 7%,'02 (c) NR 500 482,500
-----------
5,812,500
-----------
Insurance--3.1%
Chubb Corp. Cv. 6%, '98 AA 4,000 4,640,000
Zurich Insurance Cv. 1%, '03 NR 1,250 987,500
Swiss Reinsurance Euro Cv. 144A 2%, '00 (c) NR 1,250 1,375,000
-----------
7,002,500
-----------
Lodging & Restaurants--0.4%
Marriott International, Inc. Cv. 144A 0%, '11 (c) Baa(d) 1,500 793,125
-----------
Machinery--0.7%
Cooper Industries, Inc. Cv. 7.05%, '15 BBB+ 1,500 1,605,000
-----------
Medical Products & Supplies--0.2%
Nabi, Inc. Cv. 144A 6.50%,'03 (c) B 350 381,500
-----------
Metals & Mining--2.6%
Agnico Mining SDCV 3.50%, '04 B+ 1,000 1,072,500
Coeur D'Alene Euro Cv. 6%, '02 B- 1,000 971,250
Inco Limited Cv. 7.75%, '16 BBB- 1,500 1,605,000
Molten Metal Technology Cv. 144A 5.50%, '06 (c) NR 2,250 2,297,812
-----------
5,946,562
-----------
Natural Gas--3.4%
Apache Corp. Cv. 144A 6%,'02 (c) BBB- 2,000 2,227,500
Consolidated Natural Gas Co. Cv. 7.25%, '15 A+ 3,250 3,400,312
Cross Timbers Cv. 5.25%, '03 B 2,050 2,016,688
-----------
7,644,500
-----------
Office & Business Equipment--0.5%
Connor Peripherals Cv. 6.50%, '02 BB 1,000 1,126,250
-----------
Oil--3.2%
Noble Affiliates, Inc. Cv. 4.25%, '03 BBB- 5,500 5,830,000
Pogo Producing Co. Cv. 5.50%, '04 B 750 1,275,000
-----------
7,105,000
-----------
Oil Service & Equipment--0.7%
Pride Pete Services, Inc. Cv. 6.25%, '06 B- 1,000 1,512,500
-----------
Pollution Control--7.1%
Chemical Waste Management, Inc. Cv. 0%, '10 A $25,500 $ 11,315,625
WMX Technologies, Inc. Cv. 2%, '05 A 4,750 4,637,188
-----------
15,952,813
-----------
Professional Services--0.9%
Career Horizon Cv. 144A 7%, '02 (c) B+ 1,000 2,125,000
-----------
Publishing, Broadcasting, Printing & Cable--0.8%
Hollinger Lyons Cv. 0%, '13 BB 6,000 1,897,500
-----------
Retail--0.5%
Federated Department Stores, Inc. Cv. 5%, '03 BB- 1,000 1,117,500
-----------
Retail--Drug--4.8%
Rite Aid Corp. Cv. 0%, '06 BBB+ 20,500 10,813,750
-----------
Retail--Food--0.5%
Food Lion, Inc. Cv. 144A 5%, '03 (c) A(d) 1,000 1,062,500
-----------
Telecommunications Equipment--2.8%
BBN Corp. Cv. 6%, '12 B 2,850 3,063,750
Motorola, Inc. Cv. 0%, '13 AA- 1,500 1,188,750
Synoptics Communication Cv. 144A 5.25%, '03 (c) Ba(d) 2,000 1,962,500
-----------
6,215,000
-----------
Utility--Electric--0.5%
California Energy SDCV 144A 5%, '00 (c) B 1,000 1,205,000
-----------
Utility--Telephone--5.4%
U.S. West, Inc. Euro Cv. 0%, '11 A 35,000 12,118,750
-----------
TOTAL CONVERTIBLE BONDS
(Identified cost $143,887,754) 150,641,500
-----------
SHARES
------
CONVERTIBLE PREFERRED STOCKS--9.9%
Banks--0.4%
H.F. Ahmanson & Co. Cv. Pfd. 6% 16,000 896,000
-----------
Electrical Equipment--0.9%
Westinghouse Electric Corp. Cv. Pfd. 144A $1.30 (c) 122,500 2,067,188
-----------
Entertainment, Leisure & Gaming--0.5%
Cablevision Systems Cv. Pfd. 8.50% 40,000 1,035,000
-----------
Medical Products & Supplies--0.5%
U.S. Surgical Corp. $2.20 Series A 30,000 1,098,750
-----------
Metals & Mining--1.0%
Bethlehem Steel Cv. Pfd. 144A $3.50 (c) 10,000 436,250
Coeur D'Alene Cv. Pfd. 7% 35,000 730,625
Freeport-McMoRan Copper Cv. Pfd.(5%, '96) 7%, '02 40,000 1,135,000
-----------
2,301,875
-----------
Natural Gas--0.9%
Enron Capital Corp. Cv. Pfd. 6.25% 80,000 2,050,000
-----------
See Notes to Financial Statements
10
<PAGE>
Convertible Fund Series
SHARES VALUE
------ -------------
Oil--3.5%
Occidental Petroleum Corp. Cv. Pfd. 144A $3.875, (c) 70,000 $ 4,340,000
Unocal Corp. Cv. Pfd. 144A $3.50 (c) 25,000 1,365,625
Valero Energy Corp. Cv. Pfd. 6.25% 37,900 2,198,200
-----------
7,903,825
-----------
Oil Service & Equipment--0.8%
Noble Drilling Corp. Cv. Pfd. $1.50 46,000 1,707,750
-----------
Paper & Forest Products--0.7%
International Paper Co. Cv. Pfd 144A 5.25% (c) 32,500 1,495,000
-----------
Telecommunications Equipment--0.3%
Global Star Telecom Cv. Pfd. 144A 6.50% (c) 16,000 752,000
-----------
Utility--Electric--0.4%
California Energy Capital Trust Cv. Pfd. 144A 6.25% (c) 15,000 810,000
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $19,529,573) 22,117,388
-----------
COMMON STOCKS--21.4%
Aerospace & Defense--0.4%
Lockheed Martin Corp. 10,000 806,250
-----------
Computer Software & Services--1.2%
America Online, Inc. (b) 7,500 480,000
Microsoft Corp. (b) 11,000 1,247,125
Premenos Technology Corp. (b) 17,500 393,750
Spyglass, Inc. (b) 17,500 509,688
-----------
2,630,563
-----------
Conglomerates--0.3%
Litton Industries, Inc. (b) 15,000 680,625
-----------
Cosmetics & Soaps--0.5%
Colgate Palmolive Co. 15,000 1,149,375
-----------
Diversified Miscellaneous--0.5%
Pioneer Hi Bred International, Inc. 20,000 1,115,000
-----------
Electronics--2.3%
Perkin Elmer Corp. 95,000 5,213,125
-----------
Entertainment, Leisure & Gaming--0.4%
Cox Communications, Inc. (b) 35,000 717,500
Harrah's Entertainment, Inc. (b) 4,400 151,800
-----------
869,300
-----------
Healthcare--Diversified--0.6%
Genome Therapeutics Corp. (b) 30,000 296,250
Human Genome Sciences, Inc. (b) 7,500 298,125
Incyte Pharmaceuticals, Inc. (b) 13,000 417,625
Sequana Therapeutics, Inc. (b) 13,500 285,186
-----------
1,297,186
-----------
Healthcare--Drugs--0.1%
Biogen, Inc. (b) 3,000 197,625
Immulogic Pharmaceutical Corp. (b) 10,000 107,500
-----------
305,125
-----------
Hospital Management & Services--0.6%
Quorum Health Group, Inc. (b) 56,000 $ 1,421,000
-----------
Insurance--1.5%
IPC Holdings Ltd. (b) 50,000 981,250
Cigna Corp. 5,000 566,875
Travelers/Aetna Property Casualty Corp. Class A (b) 68,000 1,878,500
-----------
3,426,625
-----------
Machinery--0.3%
Albany International Corporation 30,000 645,000
-----------
Medical Products & Supplies--0.3%
Cellpro, Inc. (b) 25,000 406,250
Myriad Genetics, Inc. (b) 7,400 243,738
-----------
649,988
-----------
Natural Gas--6.9%
Anadarko Petroleum Corp. 41,300 2,405,725
Consolidated Natural Gas Co. 94,400 4,413,200
El Paso Natural Gas Co. 30,000 1,110,000
Enron Corp. 47,300 1,903,825
Seagull Energy Corp. (b) 100,000 2,437,500
Sonat, Inc. 73,800 3,219,525
-----------
15,489,775
-----------
Office & Business Equipment--0.4%
Storage Technology Corp. (b) 25,000 768,750
-----------
Oil--2.5%
Cabot Oil & Gas Corp. Class A 30,000 495,000
Louisiana Land & Exploration Co. 50,000 2,706,250
Unocal Corp. 75,000 2,409,375
-----------
5,610,625
-----------
Oil Service & Equipment--0.8%
Seacor Holdings, Inc. (b) 16,700 688,875
Tidewater, Inc. 26,000 1,105,000
-----------
1,793,875
-----------
Publishing, Broadcasting, Printing & Cable--1.1%
American Radio Systems Corp. (b) 40,800 1,377,000
Tele-Communications TCI Group A (b) 60,000 1,147,500
-----------
2,524,500
-----------
Telecommunications Equipment--0.7%
Lucent Technologies, Inc. (b) 43,000 1,510,375
-----------
TOTAL COMMON STOCKS
(Identified cost $41,897,108) 47,907,062
-----------
FOREIGN COMMON STOCKS--0.3%
Rails--0.3%
Canadian Pacific Ltd. (Canada) 35,000 713,125
-----------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $687,311) 713,125
-----------
TOTAL LONG-TERM INVESTMENTS--98.8%
(Identified cost $206,001,746) 221,379,075
-----------
</TABLE>
See Notes to Financial Statements
11
<PAGE>
Convertible Fund Series
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ----- -------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--1.8%
Commercial Paper--1.8%
CXC, Inc. 5.375%, 5-1-96 A-1+ $2,660 $ 2,660,000
Bellsouth Telecommunications, Inc. 5.26%, 5-6-96 A-1+ 1,390 1,388,985
-----------
4,048,985
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $4,048,985) 4,048,985
-----------
VALUE
-------------
TOTAL INVESTMENTS--100.6%
(Identified cost $210,050,731) $225,428,060(a)
Cash and receivables, less liabilities--(0.6%) (1,298,007)
-----------
NET ASSETS--100.0% $224,130,053
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $19,081,244 and gross
depreciation of $3,696,888 for income tax purposes. At April 30, 1996,
the aggregate cost of securities for federal income tax purposes was
$210,043,704.
(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,
1996, these securities amounted to a value of $65,812,500 or 29.4% of net
assets.
(d) As rated by Moody's, Fitch or Duff & Phelps.
(e) Variable or step coupon; interest rate shown reflects the rate currently
in effect.
See Notes to Financial Statements
12
<PAGE>
Convertible Fund Series
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
(Unaudited)
Assets
Investment securities at value
(Identified cost $210,050,731) $225,428,060
Cash 3,564
Receivables
Investment securities sold 365,264
Fund shares sold 74,006
Dividends and interest 1,246,025
-----------
Total assets 227,116,919
-----------
Liabilities
Payables
Investment securities purchased 2,516,303
Fund shares repurchased 175,103
Investment advisory fee 117,738
Transfer agent fee 76,259
Distribution fee 48,353
Trustees' fee 5,770
Financial agent fee 5,434
Accrued expenses 41,906
-----------
Total liabilities 2,986,866
-----------
Net Assets $224,130,053
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $201,197,820
Undistributed net investment income 673,079
Accumulated net realized gain 6,881,825
Net unrealized appreciation 15,377,329
-----------
Net Assets $224,130,053
===========
Class A
Shares of beneficial interest outstanding, $1 par
value,
unlimited authorization (Net Assets $218,994,068) 11,455,498
Net asset value per share $19.12
Offering price per share
$19.12/(1-4.75%) $20.07
Class B
Shares of beneficial interest outstanding, $1 par
value,
unlimited authorization (Net Assets $5,135,985) 269,514
Net asset value and offering price per share $19.06
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996
(Unaudited)
Investment Income
Dividends $ 845,263
Interest 4,849,790
---------
Total investment income 5,695,053
---------
Expenses
Investment advisory fee 727,928
Distribution fee--Class A 274,394
Distribution fee--Class B 22,314
Financial agent fee 33,597
Transfer agent 190,770
Custodian 15,746
Registration 13,626
Professional 10,065
Printing 9,841
Trustees 8,255
Miscellaneous 23,297
---------
Total expenses 1,329,833
---------
Net investment income 4,365,220
---------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 6,878,134
Net change in unrealized appreciation (depreciation)
on investments 11,502,482
---------
Net gain on investments 18,380,616
---------
Net increase in net assets resulting from operations $22,745,836
=========
See Notes to Financial Statements
13
<PAGE>
Convertible Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Year Ended
1996 October 31,
(Unaudited) 1995
------------ ---------------
<S> <C> <C>
From Operations
Net investment income $ 4,365,220 $ 10,546,200
Net realized gain 6,878,134 6,913,139
Net change in unrealized appreciation (depreciation) 11,502,482 6,261,043
---------- -------------
Increase in net assets resulting from operations 22,745,836 23,720,382
---------- -------------
From Distributions to Shareholders
Net investment income--Class A (4,931,294) (12,970,385)
Net investment income--Class B (83,404) (119,217)
Net realized gains--Class A (6,715,935) (2,391,510)
Net realized gains--Class B (126,562) (12,867)
---------- -------------
Decrease in net assets from distributions to shareholders (11,857,195) (15,493,979)
---------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (238,072 and 1,382,175 shares,
respectively) 4,424,222 24,342,158
Net asset value of shares issued from reinvestment of distributions
(532,143 and 722,912 shares, respectively) 9,685,689 12,522,376
Cost of shares repurchased (1,350,323 and 2,957,778 shares,
respectively) (25,166,826) (51,872,715)
---------- -------------
Total (11,056,915) (15,008,181)
---------- -------------
Class B
Proceeds from sales of shares (63,158 and 158,935 shares,
respectively) 1,166,396 2,790,598
Net asset value of shares issued from reinvestment of distributions
(8,253 and 6,511 shares, respectively) 149,893 114,320
Cost of shares repurchased (6,347 and 9,767 shares, respectively) (117,669) (173,872)
---------- -------------
Total 1,198,620 2,731,046
---------- -------------
Decrease in net assets from share transactions (9,858,295) (12,277,135)
---------- -------------
Net increase (decrease) in net assets 1,030,346 (4,050,732)
Net Assets
Beginning of period 223,099,707 227,150,439
---------- -------------
End of period (including undistributed net investment income of
$673,079 and $1,322,557, respectively) $224,130,053 $223,099,707
========== =============
</TABLE>
See Notes to Financial Statements
14
<PAGE>
Convertible Fund Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------------------------
Six
Months
Ended
4/30/96 Year Ended October 31,
(Unaudited) 1995 1994 1993 1992 1991
--------- --------- --------- --------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $18.23 $17.56 $19.34 $18.86 $18.36 $16.63
Income from investment
operations
Net investment income 0.37 0.87 0.78 0.68 0.77 0.87
Net realized and unrealized
gain (loss) 1.51 1.04 (1.06) 1.53 1.54 1.75
------- ------- ------- ------- ------- ---------
Total from investment
operations 1.88 1.91 (0.28) 2.21 2.31 2.62
------- ------- ------- ------- ------- ---------
Less distributions
Dividends from net investment
income (0.42) (1.05) (0.69) (0.73) (0.72) (0.89)
Dividends from net realized
gains (0.57) (0.19) (0.81) (1.00) (1.09) --
------- ------- ------- ------- ------- ---------
Total distributions (0.99) (1.24) (1.50) (1.73) (1.81) (0.89)
------- ------- ------- ------- ------- ---------
Change in net asset value 0.89 0.67 (1.78) 0.48 0.50 1.73
------- ------- ------- ------- ------- ---------
Net asset value, end of period $19.12 $18.23 $17.56 $19.34 $18.86 $18.36
======= ======= ======= ======= ======= =========
Total return (1) 10.62%(3) 11.45% -1.48% 12.58% 13.77% 15.97%
Ratios/supplemental data:
Net assets, end of period
(thousands) $218,994 $219,384 $226,294 $252,072 $200,944 $169,288
Ratio to average net assets of:
Operating expenses 1.17%(2) 1.18% 1.14% 1.15% 1.20% 1.14%
Net investment income 3.89%(2) 4.78% 4.27% 3.70% 4.28% 4.84%
Portfolio turnover 56% (3) 79% 91% 94% 200% 284%
Average commission rate paid $0.0606 N/A N/A N/A N/A N/A
</TABLE>
Class B
---------------------------------
Six
Months From
Ended Year Inception
4/30/96 Ended 7/15/94 to
(Unaudited) 10/31/95 10/31/94
-------- ------- ----------
Net asset value, beginning of period $18.17 $17.55 $17.59
Income from investment operations
Net investment income 0.33 0.70(4) 0.15
Net realized and unrealized gain
(loss) 1.48 1.07 (0.06)
------ ----- --------
Total from investment operations 1.81 1.77 0.09
------ ----- --------
Less distributions
Dividends from net investment income (0.35) (0.96) (0.13)
Dividends from net realized gains (0.57) (0.19) --
------ ----- --------
Total distributions (0.92) (1.15) (0.13)
------ ----- --------
Change in net asset value 0.89 0.62 (0.04)
------ ----- --------
Net asset value, end of period $19.06 $18.17 $17.55
====== ===== ========
Total return (1) 10.24%(3) 10.59% 0.49%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $5,136 $3,715 $856
Ratio to average net assets of:
Operating expenses 1.90%(2) 1.95% 1.83%(2)
Net investment income 3.07%(2) 3.92% 3.29%(2)
Portfolio turnover 56%(3) 79% 91%
Average commission rate paid $0.0606 N/A N/A
(1) Maximum sales load is not reflected in the total return calculation.
(2) Annualized
(3) Not annualized
(4) Computed using average shares outstanding
See Notes to Financial Statements
15
<PAGE>
GROWTH FUND SERIES
INVESTMENT ADVISER'S REPORT
Aided by a steadily rising stock market, Phoenix Growth Fund posted strong
results over this latest reporting cycle. For the six months ended April 30,
1996, the Class A shares provided a total return of 11.09% and Class B shares
returned 10.66%. 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 but commonly used measure of stock performance, returned 13.80% for
the same period. All of these figures assume reinvestment of any
distributions but exclude the effect of sales charges.
Volatility in the stock market has begun to increase measurably in 1996 as
investors' expectations vacillate between optimism over a perceived slow
growth, low inflation environment and mounting concerns over evidence that
economic growth and inflation may surprise on the upside. Although the
consensus view early this year held that interest rates would remain dormant
or trend lower, we felt the economy was stronger than widely perceived and
that interest rates would move up. Accordingly, we moved the portfolio into
themes more likely to benefit from economic growth and away from
interest-sensitive issues. Also, we raised cash levels modestly to around
10-13%, anticipating that higher interest rates would cause greater stock
volatility and introduce more competition to stocks. To date, despite
ever-increasing rates, the impact on the equity markets has been minimal.
Looking ahead, the areas where we have identified greatest opportunity
include health care, energy, technology and capital goods. Within health
care, our 21st Century Medicine theme focuses on leading companies offering
compelling solutions to health care needs (including Guidant, Caremark
International, Pharmacia & Upjohn and Alza). Energy Technology identifies
companies within the oil services sector that provide productivity-enhancing
solutions to exploration and production companies (Halliburton, Schlumberger,
Tidewater and Sonat Offshore Drilling, among others). Technology continues to
offer areas of good growth, although commitments are more selective than in
1995 (Newbridge Networks, Cisco Systems, Sun Microsystems and Microsoft).
Capital goods benefit from strong international demand for products and
services offered most efficiently by American multi-national firms (Boeing,
United Technologies, Fluor, McDonnell Douglas).
As we move further into 1996, we remain mindful that economic resurgence
can be an unsettling experience on Wall Street even as it is welcome on Main
Street. We continue to identify many themes that offer investment
opportunity, while balancing our view with the realization that all markets
take a pause. Higher interest rates may be a near-term catalyst for such a
pause. Thus, we expect to continue holding moderate cash reserves to balance
portfolio risk.
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, 1996
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------ -------------
<S> <C> <C>
COMMON STOCKS--82.1%
Aerospace & Defense--7.1%
Boeing Company 550,000 $ 45,168,750
General Motors Corp. Class H 335,000 20,476,875
Lockheed Martin Corp. 450,000 36,281,250
McDonnell Douglas Corp. 300,000 28,950,000
United Technologies Corp. 400,000 44,200,000
-----------
175,076,875
-----------
Autos & Trucks--0.5%
General Motors Corp. 215,000 11,663,750
-----------
Banks--1.1%
Citicorp 350,000 27,562,500
-----------
Chemical--5.2%
Arcadian Corp. 500,000 10,000,000
Chemical--continued
E.I. DuPont de Nemours & Co. 340,000 $ 27,327,500
IMC Global, Inc. 734,000 27,066,250
Monsanto Co. 422,000 63,933,000
-----------
128,326,750
-----------
Computer Software & Services--4.9%
Broderbund Software, Inc. (b) 170,000 7,480,000
Computer Associates International, Inc. 300,000 22,012,500
First Data Corp. 525,000 39,900,000
Microsoft Corp. (b) 440,900 49,987,038
-----------
119,379,538
-----------
Conglomerates--2.2%
ITT Corp. (b) 440,000 26,785,000
TRW, Inc. 290,000 27,223,750
-----------
54,008,750
-----------
See Notes to Financial Statements
16
<PAGE>
Growth Fund Series
SHARES VALUE
------ -------------
Cosmetics & Soaps--1.6%
Gillette Co. 710,000 $ 38,340,000
-----------
Diversified Financial Services--1.8%
American Express Co. 400,000 19,400,000
Federal National Mortgage Association 840,000 25,725,000
-----------
45,125,000
-----------
Diversified Miscellaneous--1.0%
Polaroid Corp. 516,000 23,220,000
-----------
Electronics--1.3%
Perkin Elmer Corp. 585,000 32,101,875
-----------
Engineering & Construction--1.1%
Fluor Corp. 400,000 26,450,000
-----------
Entertainment, Leisure & Gaming--1.5%
Carnival Corporation 195,000 5,655,000
Walt Disney Co. 500,000 31,000,000
-----------
36,655,000
-----------
Food--1.3%
CPC International, Inc. 160,000 11,060,000
Ralston-Purina Group 363,400 21,213,475
-----------
32,273,475
-----------
Healthcare--Drugs--2.5%
Alza Corp. (b) 631,000 17,983,500
Amgen, Inc. (b) 400,000 23,000,000
Pharmacia & Upjohn, Inc. 500,000 19,125,000
-----------
60,108,500
-----------
Hospital Management & Services--2.1%
Caremark International, Inc. 857,800 23,696,725
Columbia/HCA Healthcare Corp. 550,000 29,218,750
-----------
52,915,475
-----------
Insurance--3.3%
Allstate Corp. 560,000 21,770,000
American International Group, Inc. 400,000 36,550,000
Cigna Corp. 200,000 22,675,000
-----------
80,995,000
-----------
Lodging & Restaurants--2.5%
Hilton Hotels Corp. 128,100 13,514,550
Marriott International, Inc. 1,000,000 48,750,000
-----------
62,264,550
-----------
Machinery--2.1%
Caterpillar, Inc. 150,000 9,600,000
Deere & Co. 1,100,000 42,762,500
-----------
52,362,500
-----------
Medical Products & Supplies--5.0%
Baxter International, Inc. 1,000,000 44,250,000
Guidant Corp. 600,000 33,675,000
Johnson & Johnson 500,000 46,250,000
-----------
124,175,000
-----------
Natural Gas--2.3%
Anadarko Petroleum Corp. 230,000 13,397,500
Apache Corp. 1,000,000 29,000,000
Enron Oil & Gas Co. 500,000 13,250,000
-----------
55,647,500
-----------
Office & Business Equipment--2.6%
International Business Machines Corp. 250,000 $ 26,875,000
Sun Microsystems, Inc. (b) 675,300 36,635,025
-----------
63,510,025
-----------
Oil--2.4%
Amoco Corp. 345,000 25,185,000
Mobil Corp. 210,000 24,150,000
Texaco, Inc. 120,000 10,260,000
-----------
59,595,000
-----------
Oil Service & Equipment--8.3%
Diamond Offshore Drilling (b) 355,000 17,661,250
Dresser Industries, Inc. 500,000 15,937,500
ENSCO International, Inc. (b) 600,000 18,000,000
Halliburton Co. 1,000,000 57,375,000
Schlumberger Ltd. 500,000 44,125,000
Sonat Offshore Drilling 400,000 21,950,000
Tidewater, Inc. 600,000 25,500,000
Varco International, Inc. (b) 300,000 4,987,500
-----------
205,536,250
-----------
Paper & Forest Products--1.9%
Boise Cascade Corp. 342,000 15,903,000
Champion International Corp. 250,000 12,062,500
Kimberly-Clark Corp. 250,000 18,156,250
-----------
46,121,750
-----------
Pollution Control--2.7%
Raychem Corp. 500,000 38,937,500
WMX Technologies, Inc. 800,000 27,800,000
-----------
66,737,500
-----------
Professional Services--1.9%
ADT Ltd. (b) 850,000 14,450,000
Manpower, Inc. 400,000 14,800,000
Medaphis Corp. (b) 400,000 18,450,000
-----------
47,700,000
-----------
Publishing, Broadcasting, Printing & Cable--1.4%
Evergreen Media Corp. Class A (b) 260,000 10,205,000
Infinity Broadcasting Corp. Class A (b) 450,000 13,050,000
Tele-Communications TCI Group A (b) 550,000 10,518,750
-----------
33,773,750
-----------
Rails--0.3%
Union Pacific Corp. 100,000 6,812,500
-----------
Retail--2.7%
Federated Department Stores, Inc. (b) 500,000 16,687,500
Home Depot, Inc. 250,000 11,843,750
Melville Corp. 1,000,000 38,875,000
-----------
67,406,250
-----------
Telecommunications Equipment--5.6%
Bay Networks, Inc. (b) 540,000 17,010,000
Cisco Systems, Inc. (b) 755,000 39,165,625
General Instrument Corp. (b) 900,000 29,475,000
Newbridge Networks Corp. (b) 830,000 53,431,250
-----------
139,081,875
-----------
See Notes to Financial Statements
17
<PAGE>
Growth Fund Series
SHARES VALUE
------ -------------
Textile & Apparel--1.2%
Nike, Inc. Class B 350,000 $ 30,625,000
-----------
Truckers & Marine--0.7%
Avondale Industries, Inc. (b) 365,000 6,980,625
Ryder System, Inc. 350,000 10,193,750
-----------
17,174,375
-----------
TOTAL COMMON STOCKS
(Identified cost $1,668,107,234) 2,022,726,313
-----------
FOREIGN COMMON STOCKS--5.1%
Chemical--1.1%
Potash Corp. of Saskatchewan, Inc. (Canada) 400,000 28,200,000
-----------
Healthcare--Drugs--2.9%
Astra AB Ser. A (Sweden) 805,000 35,709,800
Smithkline Beecham PLC ADR
(United Kingdom) 650,000 35,100,000
-----------
70,809,800
-----------
Oil--0.5%
British Petroleum PLC ADR
(United Kingdom) 100,000 10,925,000
-----------
Rails--0.6%
Canadian Pacific Ltd. (Canada) 750,000 15,281,250
-----------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $96,456,063) 125,216,050
-----------
TOTAL LONG-TERM INVESTMENTS--87.2%
(Identified cost $1,764,563,297) 2,147,942,363
-----------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000)
-------- ------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--12.5%
Commercial Paper--10.7%
AT&T 5.30%, 5-1-96 A-1+ $13,430 13,430,000
Anheuser-Busch Cos., Inc. 5.32%, 5-1-96 A-1+ 13,465 13,465,000
Coca Cola 5.05%, 5-1-96 A-1+ 2,415 2,414,663
Anheuser-Busch Cos., Inc. 5.25%, 5-2-96 A-1+ 16,430 16,427,604
Gannett 5.30%, 5-3-96 A-1 4,755 4,753,600
Kimberly-Clark Corp. 5.28%, 5-6-96 A-1+ 5,000 4,996,333
Commercial Paper--continued
Pfizer, Inc. 5.32%, 5-6-96 A-1+ $ 6,338 $ 6,333,317
Amoco Co. 5.26%, 5-8-96 A-1+ 19,940 19,919,606
BellSouth Telecommunications, Inc. 5.34%,
5-8-96 A-1+ 14,650 14,634,788
Minnesota Mining & Manufacturing Co. 5.27%,
5-9-96 A-1+ 7,095 7,086,691
Abbott Laboratories 5.30%, 5-10-96 A-1+ 6,220 6,211,758
Preferred Receivables Funding Corp. 5.32%,
5-10-96 A-1 6,325 6,316,588
First Deposit Funding Trust 5.37%, 5-13-96 A-1 4,200 4,192,482
Ameritech Capital Funding Corp. 5.29%,
5-14-96 A-1+ 20,000 19,961,794
Campbell Soup Co. 5.3%, 5-14-96 A-1+ 1,645 1,641,852
Kimberly-Clark Corp. 5.27%, 5-14-96 A-1+ 5,900 5,888,772
H.J. Heinz Co. 5.28%,
5-15-96 A-1 800 798,357
Shell Oil 5.26%, 5-15-96 A-1+ 1,105 1,102,740
Abbott Laboratories 5.28%, 5-16-96 A-1+ 5,105 5,093,769
First Deposit Funding Trust 5.37%, 5-17-96 A-1 4,850 4,838,425
Gannett 5.32%, 5-17-96 A-1 10,000 9,976,356
Albertson's, Inc. 5.23%, 5-20-96 A-1 1,550 1,545,722
Albertson's, Inc. 5.30%, 5-20-96 A-1 4,635 4,622,035
E.I. DuPont de Nemours 5.29%, 5-23-96 A-1+ 15,000 14,951,508
Exxon Imperial U.S., Inc. 5.30%, 5-23-96 A-1+ 8,685 8,656,870
General Re Corp. 5.30%, 5-24-96 A-1+ 6,525 6,502,906
Exxon Imperial U.S., Inc. 5.27%, 5-28-96 A-1+ 14,590 14,532,333
General Re Corp. 5.25%, 5-29-96 A-1+ 6,390 6,363,907
Kimberly-Clark Corp. 5.24%, 5-30-96 A-1+ 6,660 6,631,887
Kimberly-Clark Corp. 5.27%, 5-31-96 A-1+ 1,525 1,518,303
Pfizer Inc. 5.27%, 6-7-96 A-1+ 15,100 15,028,158
First Deposit Funding Trust 5.35%, 7-19-96 A-1 9,525 9,411,748
General Electric Capital Corp. 5.44%,
7-26-96 (c) AAA 4,500 4,500,000
-----------
263,749,872
-----------
</TABLE>
See Notes to Financial Statements
18
<PAGE>
Growth Fund Series
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
------ -------------
<S> <C> <C>
Federal Agency Securities--0.8%
Federal Home Loan Mortgage 5.24%, 5-13-96 $15,850 $ 15,822,315
Federal Home Loan Banks 5.2%, 6-10-96 3,500 3,479,778
-----------
19,302,093
-----------
U.S. Treasury Bills--1.0%
U.S. Treasury Bills 5.10%, 5-2-96 15,245 15,242,840
U.S. Treasury Bills 4.86%, 2-6-97 5,000 4,797,500
U.S. Treasury Bills 4.90%, 2-6-97 $ 5,000 $ 4,797,500
-----------
24,837,840
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $307,920,022) 307,889,805
-------------
TOTAL INVESTMENTS--99.7%
(Identified cost $2,072,483,319) 2,455,832,168(a)
Cash and receivables, less liabilities--0.3% 6,831,483
-------------
NET ASSETS--100.0% $2,462,663,651
=============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $403,342,380 and gross
depreciation of $20,150,347 for income tax purposes. At April 30, 1996,
the aggregate cost of securities for federal income tax purposes was
$2,072,640,135.
(b) Non-income producing.
(c) Variable or step coupon; interest rate shown reflects the rate currently
in effect.
ADR--American Depository Receipt
See Notes to Financial Statements
19
<PAGE>
Growth Fund Series
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
(Unaudited)
Assets
Investment securities at value
(Identified cost $2,072,483,319) $2,455,832,168
Cash 2,565
Receivables
Investment securities sold 59,071,324
Fund shares sold 989,147
Dividends and interest 1,831,093
-----------
Total assets 2,517,726,297
-----------
Liabilities
Payables
Investment securities purchased 48,700,378
Fund shares repurchased 3,572,527
Investment advisory fee 1,319,739
Transfer agent fee 594,899
Distribution fee 518,070
Financial agent fee 66,839
Trustees' fee 3,765
Accrued expenses 286,429
-----------
Total liabilities 55,062,646
-----------
Net Assets $2,462,663,651
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $1,818,632,702
Undistributed net investment income 6,979,150
Accumulated net realized gain 253,702,950
Net unrealized appreciation 383,348,849
-----------
Net Assets $2,462,663,651
===========
Class A
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$2,429,525,090) 94,276,993
Net asset value per share $25.77
Offering price per share
$25.77/(1-4.75%) $27.06
Class B
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$33,138,561) 1,296,793
Net asset value and offering price per share $25.55
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996
(Unaudited)
Investment Income
Dividends (net of foreign taxes of $110,580) $ 16,615,425
Interest 8,127,748
-----------
Total investment income 24,743,173
-----------
Expenses
Investment advisory fee 7,945,200
Distribution fee--Class A 2,967,036
Distribution fee--Class B 130,686
Financial agent fee 359,965
Transfer agent 2,098,358
Printing 119,667
Custodian 117,293
Professional 29,463
Registration 19,270
Trustees 7,613
Miscellaneous 113,195
-----------
Total expenses 13,907,746
-----------
Net investment income 10,835,427
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 253,769,165
Net realized loss on foreign currency transactions (203,070)
Net change in unrealized appreciation (depreciation)
on investments (12,589,493)
-----------
Net gain on investments 240,976,602
-----------
Net increase in net assets resulting from operations $251,812,029
===========
See Notes to Financial Statements
20
<PAGE>
Growth Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Year Ended
1996 October 31,
(Unaudited) 1995
----------- ---------------
<S> <C> <C>
From Operations
Net investment income $ 10,835,427 $ 19,910,168
Net realized gain 253,566,095 155,621,706
Net change in unrealized appreciation (depreciation) (12,589,493) 290,325,083
--------- -------------
Increase in net assets resulting from operations 251,812,029 465,856,957
--------- -------------
From Distributions to Shareholders
Net investment income--Class A (12,561,714) (29,146,274)
Net investment income--Class B (57,031) (70,729)
Net realized gains--Class A (149,179,718) (80,021,516)
Net realized gains--Class B (1,478,098) (163,754)
--------- -------------
Decrease in net assets from distributions to shareholders (163,276,561) (109,402,273)
--------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (5,829,706 and 11,080,464 shares,
respectively) 146,733,055 244,386,687
Net asset value of shares issued from reinvestment of distributions
(6,274,669 and 5,065,877 shares, respectively) 149,588,121 100,757,525
Cost of shares repurchased (10,132,766 and 24,592,373 shares, respectively) (254,569,349) (539,504,775)
--------- -------------
Total 41,751,827 (194,360,563)
--------- -------------
Class B
Proceeds from sales of shares (504,990 and 726,554 shares, respectively) 12,632,805 16,077,649
Net asset value of shares issued from reinvestment of distributions
(57,840 and 10,621 shares, respectively) 1,370,814 212,004
Cost of shares repurchased (78,975 and 64,169 shares, respectively) (1,989,405) (1,445,729)
--------- -------------
Total 12,014,214 14,843,924
--------- -------------
Increase (decrease) in net assets from share transactions 53,766,041 (179,516,639)
--------- -------------
Net increase in net assets 142,301,509 176,938,045
Net Assets
Beginning of period 2,320,362,142 2,143,424,097
--------- -------------
End of period (including undistributed net investment income of $6,979,150
and $8,762,468, respectively) $2,462,663,651 $2,320,362,142
========= =============
</TABLE>
See Notes to Financial Statements
21
<PAGE>
Growth Fund Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------
Six Months
Ended
4/30/96 Year Ended October 31,
(Unaudited) 1995 1994 1993
------------ ----------- ----------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $24.92 $21.24 $21.53 $20.76
Income from investment operations (5)
Net investment income 0.12 0.26 0.26 0.32
Net realized and unrealized gain 2.50 4.53 0.17 1.15
---------- --------- --------- -----------
Total from investment operations 2.62 4.79 0.43 1.47
---------- --------- --------- -----------
Less distributions
Dividends from net investment income (0.14) (0.30) (0.24) (0.32)
Dividends from net realized gains (1.63) (0.81) (0.48) (0.38)
---------- --------- --------- -----------
Total distributions (1.77) (1.11) (0.72) (0.70)
---------- --------- --------- -----------
Change in net asset value 0.85 3.68 (0.29) 0.77
---------- --------- --------- -----------
Net asset value, end of period $25.77 $24.92 $21.24 $21.53
========== ========= ========= ===========
Total return (1) 11.09%(3) 23.91% 2.06% 7.20%
Ratios/supplemental data:
Net assets, end of period (thousands) $2,429,525 $2,300,251 $2,140,458 $2,563,442
Ratio to average net assets of:
Operating expenses 1.14%(2) 1.20% 1.19% 1.18%
Net investment income 0.90%(2) 0.92% 1.22% 1.55%
Portfolio turnover 70%(3) 109% 118% 176%
Average commission rate paid $0.0543 N/A N/A N/A
</TABLE>
Class A
----------------------------
1992 1991
----------- -------------
Net asset value, beginning of period $22.60 $18.45
Income from investment operations (5)
Net investment income 0.36 0.50
Net realized and unrealized gain 0.97 4.97
--------- -----------
Total from investment operations 1.33 5.47
--------- -----------
Less distributions
Dividends from net investment income (0.45) (0.55)
Dividends from net realized gains (2.72) (0.77)
--------- -----------
Total distributions (3.17) (1.32)
--------- -----------
Change in net asset value (1.84) 4.15
--------- -----------
Net asset value, end of period $20.76 $22.60
========= ===========
Total return (1) 6.95% 30.97%
Ratios/supplemental data:
Net assets, end of period (thousands) $2,186,868 $1,251,565
Ratio to average net assets of:
Operating expenses 1.17% 1.15%
Net investment income 1.86% 2.49%
Portfolio turnover 192% 227%
Average commission rate paid N/A N/A
<TABLE>
<CAPTION>
Class B
--------------------------------------
Six Months From
Ended Year Inception
4/30/96 Ended 7/15/94 to
(Unaudited) 10/31/95 10/31/94
------------ -------- ----------
<S> <C> <C> <C>
Net asset value, beginning of period $24.74 $21.19 $20.48
Income from investment operations (5)
Net investment income 0.02(4) 0.00(4) 0.01
Net realized and unrealized gain 2.48 4.60 0.70
---------- ------ --------
Total from investment operations 2.50 4.60 0.71
---------- ------ --------
Less distributions
Dividends from net investment income (0.06) (0.24) --
Dividends from net realized gains (1.63) (0.81) --
---------- ------ --------
Total distributions (1.69) (1.05) --
---------- ------ --------
Change in net asset value 0.81 3.55 0.71
---------- ------ --------
Net asset value, end of period $25.55 $24.74 $21.19
========== ====== ========
Total return (1) 10.66%(3) 23.02% 3.47%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $33,139 $20,111 $2,966
Ratio to average net assets of:
Operating expenses 1.90%(2) 1.97% 1.87%(2)
Net investment income 0.14%(2) 0.01% 0.32%(2)
Portfolio turnover 70%(3) 109% 118%
Average commission rate paid $0.0543 N/A N/A
</TABLE>
(1) Maximum sales load is not reflected in the total return calculation.
(2) Annualized
(3) Not annualized
(4) Computed using average shares outstanding.
(5) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from
anticipated results depending on the time of share purchases and
redemptions.
See Notes to Financial Statements
22
<PAGE>
U.S. STOCK FUND SERIES
INVESTMENT ADVISER'S REPORT
Aided by a strong but volatile equity market, the U.S. Stock Fund posted
impressive results over this latest reporting period. For the six months
ended April 30, 1996, Class A shares provided a total return of 21.27% and
Class B shares returned 20.81%. These results were well ahead of the Standard
and Poor's 500 Composite Stock Index, an unmanaged, commonly used measure of
stock performance, which returned 13.80% over the same period. All of these
figures assume reinvestment of any distributions but exclude the effect of
sales charges.
Over the last six months, the Fund's focus on high-growth companies with
strong thematic appeal proved to be a winning strategy in this market
environment. Specifically, we look for companies that have the potential to
increase their revenues, operating profits and earnings per share by at least
20% annually. In keeping with this objective, the portfolio was heavily
concentrated in such sectors as consumer cyclicals, energy, health care and
technology. Despite the highly rotational market we have experienced, our
exposure to each of these sectors has contributed positively to performance
at various stages during the reporting cycle. Some of our strongest
performing stocks over this six-month period included Access Health, Cisco
Systems, Clear Channel Communications, Medisense, Pediatrix Medical Group and
U.S. Robotics.
Looking ahead, we expect further volatility in the equity markets and
continued rotation in market leadership. Our stock selection will remain
focused on those areas where growth is most prevalent and will place
particular emphasis on companies with leadership positions in rapidly growing
industries that can thrive in any economic environment. For example, we
believe that the continued development of the Internet offers unparalleled
growth opportunities for a broad range of industries. Other promising
investment themes that we are focusing on include Deregulating Media, Energy
Technology, Hybrid Network and 21st Century Medicine.
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, 1996
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------ -------------
<S> <C> <C>
COMMON STOCKS--95.4%
Computer Software & Services--19.5%
Affiliated Computer Services, Inc. (b) 25,000 $ 1,190,625
Arbor Software Corp. (b) 35,000 2,695,000
Atria Software, Inc. (b) 25,000 1,362,500
Citrix Systems, Inc. (b) 65,000 5,070,000
CSG Systems International, Inc. (b) 50,000 1,600,000
Electronics for Imaging, Inc. (b) 40,000 2,440,000
Enterprise Systems, Inc. (b) 25,000 837,500
Forte Software, Inc. (b) 50,000 3,087,500
Indus Group, Inc. (b) 40,000 850,000
Legato Systems, Inc. (b) 30,000 1,230,000
Netscape Communications Corp. (b) 70,000 4,270,000
Peoplesoft, Inc. (b) 25,000 1,575,000
Pure Software, Inc. (b) 25,000 993,750
Rational Software Corp. (b) 75,000 4,003,125
SQA, Inc. (b) 25,000 818,750
Shiva Corp. (b) 80,000 4,780,000
Systemsoft Corporation (b) 25,000 696,875
Transition Systems, Inc. (b) 75,000 1,818,750
Vantive Corporation (b) 125,000 4,531,250
Xylan Corp. (b) 35,000 2,242,187
-----------
46,092,812
-----------
Diversified Financial Services--0.7%
Concord EFS, Inc. (b) 50,000 1,675,000
-----------
Electrical Equipment--2.2%
Checkpoint Systems, Inc. (b) 175,000 $ 5,228,125
-----------
Electronics--2.0%
Pairgain Technologies, Inc. (b) 50,000 4,775,000
-----------
Entertainment, Leisure & Gaming--6.0%
Bally Entertainment Corp. (b) 50,000 1,043,750
Circus Circus Enterprises (b) 50,000 1,837,500
Grand Casinos, Inc. (b) 50,000 1,618,750
MGM Grand, Inc. (b) 75,000 3,271,875
Mirage Resorts, Inc. (b) 80,000 4,190,000
Planet Hollywood International, Inc. (b) 25,200 639,450
Showboat, Inc. 50,000 1,600,000
-----------
14,201,325
-----------
Healthcare--Diversified--2.4%
Access Health, Inc. (b) 75,000 4,153,125
Human Genome Sciences, Inc. (b) 40,000 1,590,000
-----------
5,743,125
-----------
Healthcare--Drugs--2.7%
Amylin Pharmaceutical, Inc. (b) 175,000 1,662,500
Biochem Pharmaceutical, Inc. (b) 75,000 3,412,500
Fuisz Technologies Ltd. (b) 50,000 1,275,000
-----------
6,350,000
-----------
See Notes to Financial Statements
23
<PAGE>
U.S. Stock Fund Series
SHARES VALUE
------ -------------
Hospital Management & Services--5.6%
ARV Assisted Living, Inc. (b) 50,000 $ 925,000
American Oncology Resources, Inc. (b) 25,000 1,193,750
HEALTHSOUTH Corp. (b) 50,000 1,856,250
Mecon, Inc. (b) 50,000 1,400,000
NCS Heathcare, Inc. Class A (b) 75,000 2,512,500
Pediatrix Medical Group, Inc. (b) 110,000 5,252,500
-----------
13,140,000
-----------
Medical Products & Supplies--4.2%
Guidant Corp. 100,000 5,612,500
Heartport, Inc. (b) 50,000 1,787,500
Interneuron Pharmaceuticals, Inc. (b) 10,000 393,750
Physician Sales & Service, Inc. (b) 70,000 1,890,000
Ventritex, Inc. (b) 25,000 392,188
-----------
10,075,938
-----------
Natural Gas--0.5%
Texas Meridian Resources Corp. (b) 125,000 1,312,500
-----------
Oil--5.3%
Chesapeake Energy Corp. (b) 75,000 5,306,250
DLB Oil & Gas, Inc. (b) 15,000 106,875
Noble Affiliates, Inc. 100,000 3,512,500
Pogo Producing Co. 100,000 3,612,500
-----------
12,538,125
-----------
Oil Service & Equipment--14.8%
Diamond Offshore Drilling (b) 110,000 5,472,500
Digicon, Inc. (b) 100,000 1,537,500
ENSCO International, Inc. (b) 110,000 3,300,000
Falcon Drilling Company, Inc. (b) 125,000 3,359,375
Input/Output, Inc. (b) 120,000 4,170,000
Marine Drilling Company, Inc. (b) 200,000 1,975,000
Noble Drilling Corp. (b) 200,000 3,000,000
Reading & Bates Corp. (b) 200,000 4,900,000
Rowan Companies, Inc. (b) 200,000 2,950,000
Tidewater, Inc. 100,000 4,250,000
-----------
34,914,375
-----------
Professional Services--3.2%
Accustaff, Inc. (b) 80,000 2,380,000
Apollo Group, Inc. Class A (b) 30,000 1,320,000
Cybercash, Inc. (b) 30,000 1,035,000
Intelliquest Information Group, Inc. (b) 75,000 2,887,500
-----------
7,622,500
-----------
Publishing, Broadcasting, Printing & Cable--10.5%
American Radio Systems Corp. (b) 165,000 5,568,750
Clear Channels Communications, Inc. (b) 100,000 6,775,000
Evergreen Media Corp. Class A (b) 190,000 7,457,500
Infinity Broadcasting Corp. Class A (b) 175,000 5,075,000
-----------
24,876,250
-----------
Retail--1.8%
Kohls Corp. (b) 40,000 1,375,000
Oakley, Inc. (b) 25,000 1,150,000
Ross Stores, Inc. 50,000 1,725,000
-----------
4,250,000
-----------
Telecommunications Equipment--12.4%
Aspect Telecommunications Corp. (b) 80,000 $ 4,600,000
Cascade Communications Corp. (b) 35,000 3,508,750
Cisco Systems, Inc. (b) 90,000 4,668,750
DSP Communications, Inc. (b) 100,000 3,975,000
Orion Network Systems, Inc. (b) 100,000 1,387,500
Panamsat Corp. (b) 100,000 3,325,000
Premiere Technologies, Inc. (b) 30,000 1,132,500
U.S. Robotics Corporation (b) 15,000 2,347,500
Westell Technologies, Inc. (b) 60,000 4,312,500
-----------
29,257,500
-----------
Textile & Apparel--1.6%
Nike, Inc. Class B 30,000 2,625,000
Quiksilver, Inc. (b) 30,000 1,140,000
-----------
3,765,000
-----------
TOTAL COMMON STOCKS
(Identified cost $179,731,033) 225,817,575
-----------
FOREIGN COMMON STOCKS--4.6%
Computer Software & Services--0.4%
Business Objects SA-SP ADR (France) (b) 10,000 865,000
-----------
Healthcare--Drugs--1.4%
Elan PLC ADR (Ireland) (b) 50,000 3,306,250
-----------
Textile & Apparel--2.8%
Fila Holding S.P.A. ADR (Italy) 50,000 3,412,500
Gucci Group NV (Netherlands) (b) 60,000 3,262,500
-----------
6,675,000
-----------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $9,630,400) 10,846,250
-----------
TOTAL LONG-TERM INVESTMENTS--100.0%
(Identified cost $189,361,433) 236,663,825
-----------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000)
-------- ------ -------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--4.3%
Commercial Paper--4.3%
CXC, Inc. 5.375%,
5-1-96 A-1+ $6,760 6,760,000
H.J. Heinz Co. 5.23%, 5-1-96 A-1+ 125 125,000
McDonald's Corp. 5.20%, 5-1-96 A-1+ 3,255 3,255,000
-----------
10,140,000
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $10,140,000) 10,140,000
-----------
TOTAL INVESTMENTS--104.3%
(Identified cost $199,501,433) 246,803,825(a)
Cash and receivables, less liabilities--(4.3%) (10,114,004)
-----------
NET ASSETS--100.0% $236,689,821
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $48,561,459 and gross
depreciation of $1,259,067 for income tax purposes. At April 30, 1996,
the aggregate cost of securities for federal income tax purposes was
$199,501,433.
(b) Non-income producing.
ADR--American Depository Receipt
See Notes to Financial Statements
24
<PAGE>
U.S. Stock Fund Series
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
(Unaudited)
Assets
Investment securities at value
(Identified cost $199,501,433) $246,803,825
Cash 2,930
Receivables
Investment securities sold 3,019,142
Fund shares sold 227,846
-----------
Total assets 250,053,743
-----------
Liabilities
Payables
Investment securities purchased 12,631,383
Fund shares repurchased 459,662
Investment advisory fee 125,281
Transfer agent fee 66,529
Distribution fee 48,271
Trustees' fee 5,587
Financial agent fee 5,369
Accrued expenses 21,840
-----------
Total liabilities 13,363,922
-----------
Net Assets $236,689,821
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $170,873,780
Undistributed net investment loss (844,683)
Accumulated net realized gain 19,358,332
Net unrealized appreciation 47,302,392
-----------
Net Assets $236,689,821
===========
Class A
Shares of beneficial interest outstanding, $1 par
value,
unlimited authorization (Net Assets $230,108,674) 13,234,345
Net asset value per share $17.39
Offering price per share
$17.39/(1-4.75%) $18.26
Class B
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$6,581,147) 382,957
Net asset value and offering price per share $17.19
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996
(Unaudited)
Investment Income
Dividends $ 111,025
Interest 272,695
---------
Total investment income 383,720
---------
Expenses
Investment advisory fee 699,932
Distribution fee--Class A 244,985
Distribution fee--Class B 19,961
Financial agent fee 29,997
Transfer agent 162,333
Custodian 18,358
Registration 12,436
Professional 8,735
Trustees 8,072
Printing 7,402
Miscellaneous 10,303
---------
Total expenses 1,222,514
---------
Net investment loss (838,794)
---------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 22,175,600
Net realized loss on options (167,152)
Net change in unrealized appreciation (depreciation)
on investments 19,389,661
---------
Net gain on investments 41,398,109
---------
Net increase in net assets resulting from operations $40,559,315
=========
See Notes to Financial Statements
25
<PAGE>
U.S. Stock Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Year Ended
1996 October 31,
(Unaudited) 1995
------------ ---------------
<S> <C> <C>
From Operations
Net investment income (loss) $ (838,794) $ 625,864
Net realized gain 22,008,448 22,388,865
Net change in unrealized appreciation (depreciation) 19,389,661 23,926,580
---------- -------------
Increase in net assets resulting from operations 40,559,315 46,941,309
---------- -------------
From Distributions to Shareholders
Net investment income--Class A (236,510) (1,906,874)
Net investment income--Class B -- (6,562)
Net realized gains--Class A (24,384,267) (9,109,368)
Net realized gains--Class B (370,937) (33,032)
---------- -------------
Decrease in net assets from distributions to shareholders (24,991,714) (11,055,836)
---------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (7,161,267 and 4,239,236 shares,
respectively) 111,659,655 62,165,020
Net asset value of shares issued from reinvestment of distributions
(1,566,906 and 857,273 shares, respectively) 22,579,121 10,298,375
Cost of shares repurchased (6,413,639 and 4,688,495 shares, respectively) (99,439,226) (67,901,061)
---------- -------------
Total 34,799,550 4,562,334
---------- -------------
Class B
Proceeds from sales of shares (274,154 and 152,973 shares, respectively) 4,256,129 2,285,062
Net asset value of shares issued from reinvestment of distributions
(23,041 and 3,215 shares, respectively) 329,023 38,454
Cost of shares repurchased (60,357 and 34,861 shares, respectively) (942,969) (558,289)
---------- -------------
Total 3,642,183 1,765,227
---------- -------------
Increase in net assets from share transactions 38,441,733 6,327,561
---------- -------------
Net increase in net assets 54,009,334 42,213,034
Net Assets
Beginning of period 182,680,487 140,467,453
---------- -------------
End of period (including undistributed net investment income (loss) of
($844,683) and $230,621, respectively) $236,689,821 $182,680,487
========== =============
</TABLE>
See Notes to Financial Statements
26
<PAGE>
U.S. Stock Fund Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
--------------------------------------------------
Six
Months
Ended
4/30/96 Year Ended October 31,
(Unaudited) 1995 1994 1993
--------- --------- --------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $16.51 $13.33 $14.56 $13.56
Income from investment operations (5)
Net investment income (loss) (0.06) 0.06(4) 0.27 0.22
Net realized and unrealized gain (loss) 3.12 4.21 (0.21) 1.62
------- ------- ------- ---------
Total from investment operations 3.06 4.27 0.06 1.84
------- ------- ------- ---------
Less distributions
Dividends from net investment income (0.02) (0.19) (0.22) (0.23)
Dividends from net realized gains (2.16) (0.90) (1.07) (0.61)
Distributions in excess of accumulated realized
gains -- -- -- --
------- ------- ------- ---------
Total distributions (2.18) (1.09) (1.29) (0.84)
------- ------- ------- ---------
Change in net asset value 0.88 3.18 (1.23) 1.00
------- ------- ------- ---------
Net asset value, end of period $17.39 $16.51 $13.33 $14.56
======= ======= ======= =========
Total return (1) 21.27%(3) 35.14% 0.37% 14.15%
Ratios/supplemental data:
Net assets, end of period (thousands) $230,109 $180,288 $140,137 $143,035
Ratio to average net assets of:
Operating expenses 1.20%(2) 1.29% 1.26% 1.17%
Net investment income (loss) (0.82%)(2) 0.43% 1.97% 1.58%
Portfolio turnover 204%(3) 331% 306% 192%
Average commission rate paid $0.0667 N/A N/A N/A
</TABLE>
Class A
-----------------------
1992 1991
--------- ----------
Net asset value, beginning of period $14.88 $10.77
Income from investment operations (5)
Net investment income (loss) 0.23 0.23
Net realized and unrealized gain (loss) 0.59 4.05
------- --------
Total from investment operations 0.82 4.28
------- --------
Less distributions
Dividends from net investment income (0.25) (0.17)
Dividends from net realized gains (1.50) --
Distributions in excess of accumulated realized
gains (0.39) --
------- --------
Total distributions (2.14) (0.17)
------- --------
Change in net asset value (1.32) 4.11
------- --------
Net asset value, end of period $13.56 $14.88
======= ========
Total return (1) 7.11% 39.99%
Ratios/supplemental data:
Net assets, end of period (thousands) $128,530 $125,942
Ratio to average net assets of:
Operating expenses 1.25% 1.20%
Net investment income (loss) 1.70% 1.68%
Portfolio turnover 251% 332%
Average commission rate paid N/A N/A
<TABLE>
<CAPTION>
Class B
-----------------------------------
Six
Months From
Ended Year Inception
4/30/96 Ended 7/21/94 to
(Unaudited) 10/31/95 10/31/94
--------- -------- ----------
<S> <C> <C> <C>
Net asset value, beginning of period $16.38 $13.31 $13.09
Income from investment operations (5)
Net investment income (loss) (0.12)
(0.03) (4) 0.02
Net realized and unrealized gain 3.00 4.26 0.20
------- ------ --------
Total from investment operations 2.97 4.14 0.22
------- ------ --------
Less distributions
Dividends from net investment income -- (0.17) --
Dividends from net realized gains (2.16) (0.90) --
Distributions in excess of accumulated realized
gains -- -- --
------- ------ --------
Total distributions (2.16) (1.07) --
------- ------ --------
Change in net asset value 0.81 3.07 0.22
------- ------ --------
Net asset value, end of period $17.19 $16.38 $13.31
======= ====== ========
Total return (1) 20.81%(3) 34.15% 1.68%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $6,581 $2,393 $330
Ratio to average net assets of:
Operating expenses 1.96%(2) 2.04% 1.81%(2)
Net investment income (loss) (1.60%)(2) (0.83%) 1.45%(2)
Portfolio turnover 204%(3) 331% 306%
Average commission rate paid $0.0667 N/A N/A
</TABLE>
(1) Maximum sales load is not reflected in the total return calculation.
(2) Annualized
(3) Not annualized
(4) Computed using average shares outstanding.
(5) Distributions are made in accordance with the prospectus; however, class
level per share income from investment operations may vary from
anticipated results depending on the timing of share purchases and
redemptions.
See Notes to Financial Statements
27
<PAGE>
HIGH YIELD FUND SERIES
INVESTMENT ADVISER'S REPORT
The domestic high-yield and the emerging markets debt sectors provided
strong returns over the last six months, dramatically outperforming other
sectors of the fixed-income market. For the six-month reporting period ended
April 30, 1996, the Fund's Class A shares provided a total return of 6.73%
and Class B shares returned 6.27%. These results compare favorably with the
market, as measured by the CS First Boston High Yield Index, which returned
4.51% for the same period.* All of these figures assume reinvestment of any
distributions but exclude the effect of sales charges.
The Fund's overweighting in emerging markets debt was the primary
contributor to the outstanding performance throughout this reporting cycle.
Poland PDIs, the Fund's largest holding throughout most of the year, has
provided stellar returns and has been recently upgraded to "Baa3" by Moody's
and "BBB-" by Standard & Poor's. We have since reduced our exposure to
Poland, redeploying the proceeds primarily into Latin America. Currently, the
Fund's emerging markets holdings favor Argentina, Mexico and Brazil--
countries that we believe provide the best relative value in the emerging
markets debt sector.
Domestically, the Fund's high-yield corporate holdings are primarily
concentrated within non-cyclical industries. Given the recent uncertainty
about the direction of the U.S. economy, we believe that this strategy should
continue to provide solid results. The portfolio's U.S. holdings include a
strong representation in health care, telecommunications and non-agency
mortgage-backed securities.
Looking forward, we expect emerging markets securities will continue to be
the engine that drives yield and performance over the coming year. We are
maintaining a strong focus on Latin America and are particularly optimistic
about the prospects for Mexico and Argentina. As for domestic high-yield
issues, yield spreads have narrowed over this reporting cycle and the credit
quality in the new issue market appears to be declining. Since valuations
appear to be less than compelling for lower-rated issues, the Fund is
favoring better credits within the high-yield universe. Currently,
approximately one-half of the portfolio is rated "Ba" or better by Moody's.
*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 low-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, 1996
(Unaudited)
<TABLE>
<CAPTION>
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
-------- ------ -------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--1.0%
U.S. Treasury Notes--1.0%
U.S. Treasury Notes 5.625%, '06 Aaa $ 5,500 $ 5,097,813
-----------
TOTAL U.S. GOVERNMENT SECURITIES
(Identified cost $5,121,667) 5,097,813
-----------
NON-CONVERTIBLE BONDS--60.4%
Chemical--1.2%
Borden Chemical & Plastics 9.50%, '05 Ba 6,000 6,045,000
-----------
Containers--3.4%
Owens-Illinois, Inc. 11%, '03 Ba 11,000 12,058,750
Portola Packaging, Inc. 10.75%, '05 B 5,000 5,143,750
-----------
17,202,500
-----------
Cosmetics & Soaps--0.8%
Revlon Worldwide Series B 0%, '98 B $ 5,000 $ 4,075,000
-----------
Hospital Management & Services--6.8%
Community Health Systems 10.25%, '03 B 9,600 10,092,000
Healthsouth Rehabilitation 9.50%, '01 Ba 2,625 2,730,000
Tenet Healthcare Corp. 10.125%, '05 Ba 20,250 21,718,125
-----------
34,540,125
-----------
Industrial--2.3%
AAF-McQuay, Inc. 8.875%, '03 B 2,500 2,415,625
See Notes to Financial Statements
28
<PAGE>
High Yield Fund Series
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
-------- ------ -------------
Industrial--continued
American Standard, Inc. 9.25%, '16 Ba $ 9,500 $ 9,535,625
-----------
11,951,250
-----------
Non-Agency Mortgage-Backed Securities--9.2%
Airplanes Pass Through Trust 1D 10.875%,
'19 Ba 7,000 7,297,500
Chase Mtg. Finance Corp. 144A 93-2, B8
6.95%, '24 (b) NR 4,383 3,358,771
DLJ Mortgage Acceptance Corp. 144A 94-MF4
B2 8.50%, '01 (b) NR 3,000 2,663,438
Fund America Structured Trust 144A 96-1, A
0%, '26 (b) Baa 3,000 2,067,187
Merrill Lynch Mtg. 144A 94-M1, E 8.23%, '22 Ba 4,000 3,328,125
Prudential Home Mortgage Security Corp.
144A 95-F, B1 6.625%, '24 (b) Ba 1,386 1,039,253
Prudential Home Mortgage Security Corp.
144A 92-29, B3 8%, '22 (b) Ba 6,147 5,309,837
Resolution Trust Corp. 95-2, C1 7.45%, '29 Aa 3,041 2,957,402
Resolution Trust Corp. 95-2, B2 7%, '29 Aa 6,162 5,927,372
Ryland Mortgage Security Corp. III 92-A IC
8.33%, '30 BB(c) 1,000 783,125
Salomon Brothers Mtg. 95-C B1 144A 6.801%,
'08 (b) B(c) 9,845 7,174,467
SML, Inc. 94-C1, B2 10.30%, '99 BB(c) 5,000 4,818,750
-----------
46,725,227
-----------
Office & Business Equipment--1.8%
United Stationer Supply 12.75%, '05 B 8,500 9,286,250
-----------
Oil-Service & Equipment--1.6%
Crown Central Petroleum 10.875%, '05 Ba 8,000 8,220,000
-----------
Paper & Forest Products--2.9%
Riverwood International 10.875%, '08 B 10,500 10,486,875
SD Warren Co. Series B 12%, '04 B 4,250 4,409,375
-----------
14,896,250
-----------
Publishing, Broadcasting, Printing & Cable--11.9%
Continental Cablevision 144A 8.30%, '06 (b) BB(c) 7,000 7,210,000
Continental Cablevision 9.50%, '13 Ba 5,700 6,312,750
Galaxy Telecom L.P. 12.375%, '05 B 8,000 8,440,000
Lenfest Communications 8.375%, '05 Ba 6,000 5,640,000
Publishing, Broadcasting, Printing & Cable--continued
New World Communications Group-B 0%, '99 Caa $12,000 $ 8,850,000
SCI Television 11%, '05 B 15,800 16,629,500
Sinclair Broadcast Group 10%, '05 B 8,000 7,810,000
-----------
60,892,250
-----------
Retail--1.9%
Eyecare Centers of America 144A 12%, '03
(b) B 6,500 6,548,750
Scotty's, Inc. Series A 11.25%, '15 NR 3,200 3,048,000
-----------
9,596,750
-----------
Services--1.0%
Coinmach Corp. 144A 11.75%, '05 (b) B 5,000 5,043,750
-----------
Telecommunications Equipment--7.1%
Celcarib SA 144A Unit 0%, '04 (b)(f) NR 6,000 5,970,000
Commnet Cellular 11.25%, '05 Caa 4,000 4,205,000
IntelCom Group, Inc. 13.50%, '05 (f) NR 6,500 3,916,250
Paging Network 10.125%, '07 B 4,000 4,130,000
Panamsat L.P. 0%, '03 (f) B 14,400 12,240,000
USA Mobile Communications 14%, '04 B 3,500 4,073,125
Viatel, Inc. 0%, '05 (f) NR 3,500 1,925,000
-----------
36,459,375
-----------
Textile & Apparel--3.8%
Polymer Group 12.25%, '02 Caa 8,850 9,646,500
Westpoint Stevens 9.375%, '05 B 10,000 9,825,000
-----------
19,471,500
-----------
Utility--Electric--4.7%
AES Corp. 9.75%, '00 Ba 8,000 8,120,000
California Energy 9.875%, '03 Ba 5,000 5,118,750
California Energy 0%, '04 (f) Ba 11,000 10,532,500
-----------
23,771,250
-----------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $301,439,383) 308,176,477
-----------
FOREIGN NON-CONVERTIBLE BONDS--15.8%
Argentina--3.2%
Bridas Corp. 12.50%, '99 B 11,500 12,161,250
Transportadora de Gas del Sur 10.25%, '01 B 4,000 4,020,000
-----------
16,181,250
-----------
Brazil--1.7%
Aracruz Celulose Euro 144A 10.375%, '02 (b) NR 9,000 8,640,000
-----------
Canada--3.9%
Call-Net Enterprises 0%, '04 (f) B 12,000 8,910,000
Groupe Videotron Ltee 10.625%, '05 Ba 4,000 4,250,000
Videotron Ltd. 10.25%, '02 Ba 6,500 6,776,250
-----------
19,936,250
-----------
See Notes to Financial Statements
29
<PAGE>
High Yield Fund Series
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
-------- ------ -------------
Colombia--2.2%
Centragas 144A 10.65%, '10 (b) BBB(c) $10,618 $ 11,095,758
-----------
Mexico--2.7%
Grupo Industrial Durango Euro 12%, '01 B 2,500 2,450,000
Ispat Mexicana SA Euro 10.375%, '01 NR 12,000 11,370,000
-----------
13,820,000
-----------
Philippines--0.8%
Subic Power Corp. 144A 9.50%, '08 (b) NR 4,034 4,009,267
-----------
United Kingdom--1.3%
Videotron PLC 0%, '04 (f) B 9,000 6,615,000
-----------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $77,070,296) 80,297,525
-----------
FOREIGN GOVERNMENT SECURITIES--15.8%
Argentina--2.7%
Republic of Argentina Bearer FRB 6.3125%,
'05 (f) B 9,900 7,561,125
Republic of Argentina Par L-GP 5%, '23 (f) B 11,000 6,001,875
-----------
13,563,000
-----------
Brazil--3.2%
Companhia Brasil de Projetos 144A 12.50%,
'97 (b) NR 5,000 5,106,250
Republic of Brazil El-L Euro 6.5%, '06 (f) B(c) 11,500 8,747,187
Republic of Brazil Par Z-L Euro 4.25%, '24
(f) B 5,000 2,631,250
-----------
16,484,687
-----------
Costa Rica--1.2%
Central Bank of Costa Rica Principal A
6.25%, '10 NR 9,400 6,251,000
-----------
Dominican Republic--0.0%
Dominican Republic BR-PDI 6.0625%, '09 (f) NR 350 208,250
-----------
Ecuador--1.3%
Ecuador Bearer PDI, 6.0625%, '15 (f) NR 14,578 6,458,142
-----------
Hungary--1.3%
National Bank of Hungary 8.875%, '13 Ba 7,000 6,833,750
-----------
Mexico--3.1%
United Mexican States Discount A 6.398%,
'19 (e)(f) Ba 13,500 10,825,313
United Mexican States Series A Euro 6.25%,
'19 (e) Ba 7,100 4,686,000
-----------
15,511,313
-----------
Poland--3.0%
Poland PDI B 3.75%, '14 (e)(f) Baa 20,000 15,400,000
-----------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $68,192,799) 80,710,142
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -------------
<S> <C> <C>
PREFERRED STOCKS--2.8%
Industrial--0.6%
GPA Group PLC 0% (f) 8,500 $ 2,975,000
-----------
Paper & Forest Products--0.6%
SD Warren Co. Pfd. PIK 144A Series B (b) 115,000 2,988,122
-----------
Telecommunications Equipment--1.6%
Panamsat Corp. Pfd. 12.75%, '05 7,354 8,457,154
-----------
TOTAL PREFERRED STOCKS
(Identified cost $12,715,586) 14,420,276
-----------
COMMON STOCKS--0.1%
Publishing, Broadcasting, Printing & Cable--0.0%
Sullivan Holdings, Inc. Class C (d) 76 0
-----------
Telecommunications Equipment--0.1%
Viatel, Inc. 144A (b)(d) 126,350 505,400
-----------
TOTAL COMMON STOCKS
(Identified cost $850,646) 505,400
-----------
WARRANTS--0.1%
Eye Care Centers of America Warrants (d) 6,500 32,500
IntelCom Group (USA), Inc. Warrants (d) 21,450 229,515
SD Warren Warrants 144A (b)(d) 115,000 345,000
-----------
TOTAL WARRANTS
(Identified cost $634,810) 607,015
-----------
TOTAL LONG-TERM INVESTMENTS--96.0%
(Identified cost $466,025,187) 489,814,648
-----------
</TABLE>
<TABLE>
<CAPTION>
MOODY'S PAR
BOND VALUE
RATING (000)
-------- ------ -------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--1.6%
Commercial Paper--1.6%
CXC, Inc. 5.375%, 5-1-96 A-1+ $8,215 8,215,000
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $8,215,000) 8,215,000
-----------
TOTAL INVESTMENTS--97.6%
(Identified cost $474,240,187) 498,029,648(a)
Cash and receivables, less liabilities--2.4% 12,376,637
-----------
NET ASSETS--100.0% $510,406,285
===========
</TABLE>
See Notes to Financial Statements
30
<PAGE>
High Yield Fund Series
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $31,648,670 and gross
depreciation of $5,999,236 for income tax purposes. At April 30, 1996,
the aggregate cost of securities for federal income tax purposes was
$472,380,214. At October 31, 1995, the Fund had capital loss
carryforwards for tax purposes aggregating $330,629,651 which may be used
to offset future capital gains. Of this amount, $247,265,135 was acquired
in connection with the merger of National Bond Fund into the Fund which
expire as follows: $22,486,288 through 1996; $178,352,034 through 1997;
and, $46,426,813 through 1998. The availability of these capital loss
carryforwards to offset future capital gains is subject to an annual
limitation determined under the Internal Revenue Code of 1986, as
amended. The Fund has additional capital loss carryforwards of
$83,364,516 which expire as follows: $2,286,389 through 1997; $20,045,739
through 1998; $14,103,053 through 2002; and, $46,929,335 through 2003.
(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,
1996, these securities amounted to a value of $82,403,375 or 16.1% of net
assets.
(c) As rated by Standard & Poor's, Duff & Phelps or Fitch
(d) Non-income producing
(e) Mexico Value Recovery Euro Rights incorporated as a unit.
(f) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
See Notes to Financial Statements
31
<PAGE>
High Yield Fund Series
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
(Unaudited)
Assets
Investment securities at value
(Identified cost $474,240,187) $498,029,648
Cash 3,212,418
Receivables
Investment securities sold 1,912,280
Fund shares sold 599,195
Dividends and interest 10,601,989
-----------
Total assets 514,355,530
-----------
Liabilities
Payables
Investment securities purchased 1,893,802
Fund shares repurchased 1,307,234
Investment advisory fee 271,488
Transfer agent fee 266,818
Distribution fee 114,998
Financial agent fee 12,530
Trustees' fee 5,142
Accrued expenses 77,233
-----------
Total liabilities 3,949,245
-----------
Net Assets $510,406,285
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $563,716,383
Undistributed net investment income 2,235,810
Accumulated net realized loss (79,335,369)
Net unrealized appreciation 23,789,461
-----------
Net Assets $510,406,285
===========
Class A
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$492,591,058) 59,186,430
Net asset value per share $8.32
Offering price per share
$8.32/(1-4.75%) $8.73
Class B
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$17,815,227) 2,139,901
Net asset value and offering price per share $8.33
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996
(Unaudited)
Investment Income
Interest $26,601,961
Dividends 660,543
----------
Total investment income 27,262,504
----------
Expenses
Investment advisory fee 1,682,551
Distribution fee--Class A 628,228
Distribution fee--Class B 75,629
Financial agent fee 77,656
Transfer agent 532,649
Custodian 34,972
Printing 19,585
Registration 14,688
Professional 12,701
Trustees 7,627
Miscellaneous 40,978
----------
Total expenses 3,127,264
----------
Net investment income 24,135,240
----------
Net Realized and Unrealized Gain on Investments
Net realized gain on securities 4,243,592
Net change in unrealized appreciation (depreciation)
on investments 5,328,654
----------
Net gain on investments 9,572,246
----------
Net increase in net assets resulting from operations $33,707,486
==========
See Notes to Financial Statements
32
<PAGE>
High Yield Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Year Ended
1996 October 31,
(Unaudited) 1995
------------ ---------------
<S> <C> <C>
From Operations
Net investment income $ 24,135,240 $ 51,288,841
Net realized gain (loss) 4,243,592 (45,170,764)
Net change in unrealized appreciation (depreciation) 5,328,654 47,776,602
---------- -------------
Increase in net assets resulting from operations 33,707,486 53,894,679
---------- -------------
From Distributions to Shareholders
Net investment income--Class A (23,651,078) (49,483,730)
Net investment income--Class B (674,765) (817,976)
---------- -------------
Decrease in net assets from distributions to shareholders (24,325,843) (50,301,706)
---------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (3,662,724 and 9,926,312 shares, respectively) 30,547,658 78,513,605
Net asset value of shares issued from reinvestment of distributions
(1,426,513 and 3,110,460 shares, respectively) 11,811,900 24,479,580
Cost of shares repurchased (8,031,100 and 16,450,118 shares, respectively) (66,784,252) (130,311,090)
---------- -------------
Total (24,424,694) (27,317,905)
---------- -------------
Class B
Proceeds from sales of shares (864,587 and 915,297 shares, respectively) 7,190,404 7,282,409
Net asset value of shares issued from reinvestment of distributions (32,328
and 36,805 shares, respectively) 268,192 292,115
Cost of shares repurchased (263,429 and 190,541 shares, respectively) (2,195,276) (1,491,768)
---------- -------------
Total 5,263,320 6,082,756
---------- -------------
Decrease in net assets from share transactions (19,161,374) (21,235,149)
---------- -------------
Net decrease in net assets (9,779,731) (17,642,176)
---------- -------------
Net Assets
Beginning of period 520,186,016 537,828,192
---------- -------------
End of period (including undistributed net investment income of $2,235,810
and $2,426,413, respectively) $510,406,285 $ 520,186,016
========== =============
</TABLE>
See Notes to Financial Statements
33
<PAGE>
High Yield Fund Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------
Six
Months
Ended
4/30/96 Year Ended October 31,
(Unaudited) 1995 1994 1993 1992 1991
-------- -------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $8.17 $8.11 $9.11 $8.14 $7.70 $6.72
Income from investment operations
Net investment income 0.40 0.80 0.76 0.74 0.77 0.74
Net realized and unrealized gain
(loss) 0.14 0.04 (0.97) 0.97 0.44 0.98
------ ------ ----- ----- ----- ------
Total from investment operations 0.54 0.84 (0.21) 1.71 1.21 1.72
------ ------ ----- ----- ----- ------
Less distributions
Dividends from net investment income (0.39) (0.78) (0.76) (0.74) (0.77) (0.74)
Tax return of capital -- -- (0.03) -- -- --
------ ------ ----- ----- ----- ------
Total distributions (0.39) (0.78) (0.79) (0.74) (0.77) (0.74)
------ ------ ----- ----- ----- ------
Change in net asset value 0.15 0.06 (1.00) 0.97 0.44 0.98
------ ------ ----- ----- ----- ------
Net asset value, end of period $8.32 $8.17 $8.11 $9.11 $8.14 $7.70
====== ====== ===== ===== ===== ======
Total return (1) 6.73%(3) 11.19% -2.57% 21.87% 16.28% 26.77%
Ratios/supplemental data:
Net assets end of period (thousands) $492,591 $507,855 $531,773 $182,333 $113,197 $91,664
Ratio to average net assets of:
Operating expenses 1.18%(2) 1.21% 1.19% 1.04% 1.08% 1.08%
Net investment income 9.29%(2) 10.01% 9.01% 8.46% 9.51% 10.12%
Portfolio turnover 44%(3) 147% 222% 157% 205% 326%
</TABLE>
Class B
---------------------------------
Six
Months From
Ended Year Inception
4/30/96 Ended 2/16/94 to
(Unaudited) 10/31/95 10/31/94
-------- ------- ----------
Net asset value, beginning of period $8.19 $8.13 $9.38
Income from investment operations
Net investment income 0.35 0.72 0.54
Net realized and unrealized gain
(loss) 0.16 0.07 (1.25)
------ ----- --------
Total from investment operations 0.51 0.79 (0.71)
------ ----- --------
Less distributions
Dividends from net investment income (0.37) (0.73) (0.52)
Tax return of capital -- -- (0.02)
------ ----- --------
Total distributions (0.37) (0.73) (0.54)
------ ----- --------
Change in net asset value 0.14 0.06 (1.25)
------ ----- --------
Net asset value, end of period $8.33 $8.19 $8.13
====== ===== ========
Total return (1) 6.27%(3) 10.44% -7.67%(3)
Ratios/supplemental data:
Net assets end of period (thousands) $17,815 $12,331 $6,056
Ratio to average net assets of:
Operating expenses 1.93%(2) 1.97% 1.80%(2)
Net investment income 8.60%(2) 9.18% 9.12%(2)
Portfolio turnover 44%(3) 147% 222%
(1) Maximum sales load is not reflected in the total return calculation.
(2) Annualized
(3) Not annualized
See Notes to Financial Statements
34
<PAGE>
U.S. GOVERNMENT SECURITIES FUND SERIES
INVESTMENT ADVISER'S REPORT
With interest rates recently on the rise, it has been a bearish market
environment for bond investors. For the six months ended April 30, 1996, the
U.S. Government Securities Fund's Class A shares provided a total return of
- -0.33% and Class B shares returned -0.59%. These results were in line with
the Lehman Brothers Government Bond Index. This commonly used, unmanaged
index of nonmortgaged government securities returned 0.03% over the same
period. All of these figures assume reinvestment of any distributions but
exclude the effect of sales charges.
During the reporting period, the Fund was overweighted in agency
mortgage-backed securities. Lower interest rates in 1995 increased the
opportunity for homeowners to refinance and prepay their current home
mortgages. The potential for rapid prepayments caused yields on
mortgage-backed securities to increase relative to Treasuries. We viewed the
higher yields on mortgage-backed securities as attractive, and more than
adequate compensation for the additional prepayment risk. The Fund's
significant exposure to this fixed-income sector contributed positively to
performance.
Given the strong performance from agency mortgage-backed securities, we
have recently done some profit-taking in this sector. We believe that
mortgage-backed securities, at this time, no longer offer the same compelling
valuations relative to U.S. Treasuries. Looking ahead, we are cautiously
optimistic regarding the bond market and believe that the recent sell-off has
created a number of attractive investment opportunities. As always, we will
continue to conservatively manage the Fund, emphasizing the best value in the
U.S. Treasury and mortgage-backed securities markets.
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, 1996
(Unaudited)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ------ -------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--95.2%
U.S. Treasury Bonds--11.6%
U.S. Treasury Bonds 7.125%, '23 AAA $15,000 $ 15,068,850
U.S. Treasury Bonds 6.875%, '25 AAA 11,000 10,861,620
-----------
25,930,470
-----------
U.S. Treasury Notes--60.7%
U.S. Treasury Notes 5.375%, '97 AAA 15,000 14,864,100
U.S. Treasury Notes 6.50%, '97 AAA 10,000 10,075,900
U.S. Treasury Notes 5.875%, '98 AAA 45,000 44,853,750
U.S. Treasury Notes 6.25%, '01 AAA 35,000 34,792,135
U.S. Treasury Notes 5.625%, '06 AAA 34,000 31,513,750
-----------
136,099,635
-----------
Agency Mortgage-Backed Securities--22.9%
FHLMC 9.30%, '05 AAA $ 711 $ 720,548
FHLMC 6.75%, '19 AAA 1,500 1,463,906
FNMA 10%, '04 AAA 4,724 4,979,714
FNMA 8.70%, '16 AAA 1,300 1,335,455
FNMA 6.65%, '17 AAA 1,500 1,460,024
FNMA 6.50%, '18 AAA 1,500 1,450,904
FNMA 8.50%, '19 AAA 1,500 1,514,820
FNMA 6.75%, '19-'22 AAA 8,442 7,917,511
GNMA 8.50%, '01-'22 AAA 650 676,481
GNMA 8%, '05-'06 AAA 187 190,659
GNMA 6.50%, '24 AAA 31,686 29,686,205
-----------
51,396,227
-----------
TOTAL U.S. GOVERNMENT SECURITIES
(Identified cost $217,579,536) 213,426,332
-----------
</TABLE>
See Notes to Financial Statements
35
<PAGE>
U.S. Government Securities Fund Series
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
------ -------------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--4.3%
Federal Agency Securities--4.3%
Federal Home Loan Mortgage 5.30%, 5-1-96 $ 435 $ 435,000
Federal National Mortgage Assoc. 5.19%, 5-7-96 8,630 8,622,535
Federal Home Loan Mortgage Corp. 5.27%,
5-13-96 565 564,007
-----------
VALUE
------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $9,621,542) $ 9,621,542
-----------
TOTAL INVESTMENTS--99.5%
(Identified cost $227,201,078) 223,047,874(a)
Cash and receivables, less liabilities--0.5% 1,113,027
-----------
NET ASSETS--100.0% $224,160,901
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $333,009 and gross
depreciation of $4,632,691 for income tax purposes. At April 30, 1996,
the aggregate cost of securities for federal income tax purposes was
$227,347,556. At October 31, 1995, the Fund had capital loss
carryforwards for tax purposes aggregating $44,091,871 which may be used
to offset future capital gains. Of this amount $35,407,292 was acquired
in connection with the merger of National Federal Securities Trust Fund
into the Fund which expire as follows: $19,668,129 through 1996;
$13,922,859 through 1997; and $1,816,304 through 1998. The availability
of these capital loss carryforwards to offset future capital gains is
subject to an annual limitation determined under the Internal Revenue
Code of 1986, as amended. The Fund has additional capital loss
carryforwards of $8,684,579 which expires in 2002.
See Notes to Financial Statements
36
<PAGE>
U.S. Government Securities Fund Series
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
(Unaudited)
Assets
Investment securities at value
(Identified cost $227,201,078) $223,047,874
Cash 1,339
Receivables
Investment securities sold 10,572,500
Fund shares sold 216,129
Interest 1,581,010
-----------
Total assets 235,418,852
-----------
Liabilities
Payables
Investment securities purchased 10,535,000
Fund shares repurchased 409,092
Transfer agent fee 129,920
Investment advisory fee 83,265
Distribution fee 48,895
Financial agent fee 5,551
Trustees' fee 5,398
Accrued expenses 40,830
-----------
Total liabilities 11,257,951
-----------
Net Assets $224,160,901
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $238,567,662
Undistributed net investment income 517,498
Accumulated net realized loss (10,771,055)
Net unrealized depreciation (4,153,204)
-----------
Net Assets $224,160,901
===========
Class A
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$219,853,866) 23,596,135
Net asset value per share $9.32
Offering price per share
$9.32/(1-4.75%) $9.78
Class B
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$4,307,035) 463,378
Net asset value and offering price per share $9.29
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996
(Unaudited)
Investment Income
Interest $ 7,874,548
----------
Total investment income 7,874,548
----------
Expenses
Investment advisory fee 525,789
Distribution fee--Class A 287,061
Distribution fee--Class B 20,174
Financial agent fee 35,053
Transfer agent 290,490
Registration 16,194
Printing 12,434
Custodian 12,145
Professional 10,034
Trustees 7,883
Miscellaneous 16,719
----------
Total expenses 1,233,976
----------
Net investment income 6,640,572
----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized loss on securities (2,086,476)
Net change in unrealized appreciation (depreciation)
on investments (4,980,062)
----------
Net loss on investments (7,066,538)
----------
Net decrease in net assets resulting from operations $ (425,966)
==========
See Notes to Financial Statements
37
<PAGE>
U.S. Government Securities Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Year Ended
1996 October 31,
(Unaudited) 1995
------------ ---------------
<S> <C> <C>
From Operations
Net investment income $ 6,640,572 $ 15,179,991
Net realized gain (loss) (2,086,476) 4,645,956
Net change in unrealized appreciation (depreciation) (4,980,062) 15,291,582
---------- -------------
Increase (decrease) in net assets resulting from operations (425,966) 35,117,529
---------- -------------
From Distributions to Shareholders
Net investment income--Class A (6,030,170) (14,898,311)
Net investment income--Class B (92,904) (135,148)
Distributions in excess of net investment income--Class A -- (124,677)
Distributions in excess of net investment income--Class B -- (1,132)
---------- -------------
Decrease in net assets from distributions to shareholders (6,123,074) (15,159,268)
---------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (2,681,326 and 1,623,549 shares,
respectively) 25,626,435 14,794,526
Net asset value of shares issued from reinvestment of distributions
(339,328 and 853,155 shares, respectively) 3,245,775 7,809,721
Cost of shares repurchased (3,991,494 and 7,434,464 shares, respectively) (38,484,622) (68,623,281)
---------- -------------
Total (9,612,412) (46,019,034)
---------- -------------
Class B
Proceeds from sales of shares (131,468 and 351,124 shares, respectively) 1,262,096 3,208,563
Net asset value of shares issued from reinvestment of distributions (5,004
and 6,855 shares, respectively) 47,709 63,105
Cost of shares repurchased (54,629 and 116,132 shares, respectively) (521,276) (1,072,281)
---------- -------------
Total 788,529 2,199,387
---------- -------------
Decrease in net assets from share transactions (8,823,883) (43,819,647)
---------- -------------
Net decrease in net assets (15,372,923) (23,861,386)
Net Assets
Beginning of period 239,533,824 263,395,210
---------- -------------
End of period (including undistributed net investment income of $517,498
and $0, respectively) $224,160,901 $239,533,824
========== =============
</TABLE>
See Notes to Financial Statements
38
<PAGE>
U.S. Government Securities Fund Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------------------------
Six
Months
Ended
4/30/96 Year Ended October 31,
(Unaudited) 1995 1994 1993 1992 1991
--------- --------- --------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $9.60 $8.88 $9.87 $9.91 $9.65 $9.08
Income from investment operations
Net investment income 0.27 0.55 0.64 0.62(1) 0.65(1) 0.68(1)
Net realized and unrealized gain
(loss) (0.30) 0.72 (1.02) 0.34 0.26 0.57
------- ------- ------- ------ ------ --------
Total from investment
operations (0.03) 1.27 (0.38) 0.96 0.91 1.25
------- ------- ------- ------ ------ --------
Less distributions
Dividends from net investment
income (0.25) (0.55) (0.45) (0.62) (0.65) (0.68)
Dividends from net realized
gains -- -- (0.02) (0.38) -- --
Tax return of capital -- -- (0.14) -- -- --
------- ------- ------- ------ ------ --------
Total distributions (0.25) (0.55) (0.61) (1.00) (0.65) (0.68)
------- ------- ------- ------ ------ --------
Change in net asset value (0.28) 0.72 (0.99) (0.04) 0.26 0.57
------- ------- ------- ------ ------ --------
Net asset value, end of period $9.32 $9.60 $8.88 $9.87 $9.91 $9.65
======= ======= ======= ====== ====== ========
Total return (2) -0.33%(4) 14.81% -3.98% 10.18% 9.74% 14.24%
Ratios/supplemental data:
Net assets, end of period
(thousands) $219,854 $235,879 $262,157 $57,072 $40,365 $22,123
Ratio to average net assets of:
Operating expenses 1.04%(3) 0.99% 0.98% 0.75% 0.77% 0.97%
Net investment income 5.67%(3) 6.01% 5.92% 6.19% 6.64% 7.20%
Portfolio turnover 103%(4) 178% 101% 264% 285% 130%
</TABLE>
Class B
---------------------------------
Six
Months From
Ended Year Inception
4/30/96 Ended 2/24/94 to
(Unaudited) 10/31/95 10/31/94
-------- ------- ----------
Net asset value, beginning of period $9.58 $8.86 $9.61
Income from investment operations
Net investment income 0.23 0.48 0.39
Net realized and unrealized gain
(loss) (0.30) 0.72 (0.75)
------ ----- --------
Total from investment operations (0.07) 1.20 (0.36)
------ ----- --------
Less distributions
Dividends from net investment income (0.22) (0.48) (0.30)
Dividends from net realized gains -- -- --
Tax return of capital -- -- (0.09)
------ ----- --------
Total distributions (0.22) (0.48) (0.39)
------ ----- --------
Change in net asset value (0.29) 0.72 (0.75)
------ ----- --------
Net asset value, end of period $9.29 $9.58 $8.86
====== ===== ========
Total return (2) -0.59%(4) 13.82% -3.83%(4)
Ratios/supplemental data:
Net assets, end of period (thousands) $4,307 $3,655 $1,238
Ratio to average net assets of:
Operating expenses 1.79%(3) 1.73% 2.00%(3)
Net investment income 4.93%(3) 5.23% 4.49%(3)
Portfolio turnover 103%(4) 178% 101%
(1) Includes reimbursement of operating expenses by investment adviser of
$0.03, $0.04 and $0.01, respectively.
(2) Maximum sales load is not reflected in the total return calculation.
(3) Annualized
(4) Not annualized
See Notes to Financial Statements
39
<PAGE>
MONEY MARKET FUND SERIES
INVESTMENT ADVISER'S REPORT
Phoenix Money Market Fund continued to produce solid results over this
latest six-month reporting period. The current yield of Class A shares on
April 30 was 4.53%, as compared with the 4.68% average yield of taxable money
market funds reported by Donoghue's Money Market Report. The current yield is
a seven-day annualized yield computed by dividing the average net 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 consensus outlook for interest rates changed dramatically over the
last six months. During December and January, the Federal Reserve cut the
short-term rates in an effort to stimulate what was believed to be a sluggish
U.S. economy. Although it was widely anticipated that the Fed would have to
lower rates again, a surprisingly strong February employment report provided
conflicting evidence about the economy's condition. As more information
became available, some of the data suspiciously suggested that the economy
might not be as weak as the financial markets had initially assumed. Over the
near-term, we do not expect the Federal Reserve to provide further monetary
stimulus and there has even been talk on Wall Street that the Fed might
consider raising short-term rates later this summer.
With the uncertainty about future monetary policy, the Fund remains
heavily weighted in floating-rate securities. This type of instrument is an
attractive investment in a volatile interest rate environment. Regardless of
the direction of interest rates, the Fund will maintain its strong focus on
high-quality assets.
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 may 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. Phoenix 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 of $1.00 per share.
INVESTMENTS AT APRIL 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Face
Amount Interest Maturity
(000) Description Rate Date Value
- ------- ------------------------ ------ ------- -----------
<S> <C> <C> <C> <C>
U.S. TREASURY BILLS--3.0%
$5,875 U.S. Treasury Bills 4.80% 02/06/97 $ 5,654,883
---------
TOTAL U.S. TREASURY BILLS 5,654,883
---------
U.S. TREASURY NOTES--3.7%
7,000 U.S. Treasury Notes 6.88 02/28/97 7,098,880
---------
TOTAL U.S. TREASURY NOTES 7,098,880
---------
FEDERAL AGENCY SECURITIES--12.2%
$4,000 Federal Home Loan Banks 5.02% 07/24/96 $ 3,953,147
3,770 Federal Home Loan Banks 4.77 08/09/96 3,720,048
2,040 Federal National Mortgage
Assoc. 4.77 08/16/96 2,014,527
6,000 Federal Home Loan Banks 5.75 10/18/96 6,000,000
3,500 Federal Home Loan Banks 5.27 02/28/97 3,500,000
4,000 Federal Home Loan Banks 5.40 03/20/97 3,995,729
---------
TOTAL FEDERAL AGENCY SECURITIES 23,183,451
---------
See Notes to Financial Statements
40
<PAGE>
Money Market Fund Series
Face
Amount Interest Reset
(000) Description Rate Date Value
- ------- ------------------------ ------ ------- -----------
FEDERAL AGENCY SECURITIES--VARIABLE--26.8% (b)
$ 3,500 Federal Farm Credit Bank
(final maturity 02/24/97) 5.51% 05/01/96 $ 3,499,028
10,500 Federal Farm Credit Bank
(final maturity 07/24/00) 5.54 05/01/96 10,505,010
4,000 Federal Home Loan Banks
(final maturity 01/14/97) 5.70 05/01/96 4,000,000
6,000 Student Loan Marketing Assoc.
(final maturity 08/16/96) 5.61 05/01/96 6,000,000
2,000 Student Loan Marketing Assoc.
(final maturity 07/19/96) 5.28 05/07/96 2,000,000
1,000 Student Loan Marketing Assoc.
(final maturity 10/14/97) 5.30 05/07/96 997,813
1,000 Student Loan Marketing Assoc.
(final maturity 11/24/97) 5.30 05/07/96 1,000,000
3,500 Student Loan Marketing Assoc.
(final maturity 11/10/98) 5.32 05/07/96 3,495,324
2,000 Student Loan Marketing Assoc.
(final maturity 02/22/99) 5.33 05/07/96 2,000,000
3,000 Student Loan Marketing Assoc.
(final maturity 03/07/01) 5.39 05/07/96 3,000,000
5,000 Student Loan Marketing Assoc.
(final maturity 02/08/99) 5.43 05/07/96 5,000,000
3,500 Student Loan Marketing Assoc.
(final maturity 10/30/97) 5.48 05/07/96 3,502,897
3,000 Federal National Mortgage
Assoc. (final maturity
12/14/98) 5.30 06/14/96 2,995,679
3,000 Federal Home Loan Banks
(final maturity 06/15/96) 5.60 06/15/96 3,000,759
---------
TOTAL FEDERAL AGENCY SECURITIES--VARIABLE 50,996,510
---------
</TABLE>
<TABLE>
<CAPTION>
Standard
& Poor's Maturity
Rating Date
--- -----
COMMERCIAL PAPER--47.1%
<S> <C> <C> <C> <C> <C>
3,080 H.J. Heinz Co. A-1 5.31 05/01/96 3,080,000
4,395 CXC, Inc. A-1+ 5.38 05/01/96 4,395,000
2,600 BellSouth
Telecommunications,
Inc. A-1+ 5.30 05/02/96 2,599,617
3,825 Coca Cola Co. A-1+ 5.05 05/03/96 3,823,927
4,840 Albertson's, Inc. A-1 5.35 05/07/96 4,835,684
2,000 H.J. Heinz Co. A-1 5.30 05/08/96 1,997,939
2,825 Preferred Receivables
Funding A-1 5.30 05/09/96 2,821,443
1,725 Gannett Co. A-1 5.32 05/09/96 1,722,961
1,910 Abbott Laboratories A-1+ 5.30 05/10/96 1,907,469
165 Preferred Receivables
Funding A-1 5.32 05/10/96 164,781
500 First Deposit Funding
Trust A-1 5.37 05/13/96 499,105
</TABLE>
<TABLE>
<CAPTION>
Face
Amount Interest Reset
(000) Description Rate Date Value
- ------- ------------------------ ------ ------- -----------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER--continued
$2,780 Shell Oil Co. A-1+ 5.26% 05/15/96 $ 2,774,313
2,000 Procter & Gamble A-1+ 5.03 05/16/96 1,995,808
1,500 Greenwich Funding
Corp. A-1+ 5.33 05/16/96 1,496,669
1,500 H.J. Heinz Co. A-1 5.29 05/16/96 1,496,694
1,365 Albertson's, Inc. A-1 5.30 05/20/96 1,361,195
900 First Deposit Funding
Trust A-1 5.37 05/17/96 897,852
4,750 Gannett Co. A-1 5.32 05/17/96 4,738,769
4,000 Anheuser-Busch Cos.,
Inc. A-1+ 5.27 05/20/96 3,988,874
750 Anheuser-Busch Cos.,
Inc. A-1+ 5.27 05/20/96 747,914
2,920 TDK USA Corp. A-1+ 5.28 05/20/96 2,911,863
1,075 First Deposit Funding
Trust A-1 5.10 05/22/96 1,071,802
1,495 Minnesota Mining &
Manufacturing Co. A-1+ 5.27 05/23/96 1,490,185
2,500 E.I. DuPont de Nemours A-1+ 5.27 05/24/96 2,491,583
1,750 Gannett Co. A-1 5.30 05/24/96 1,744,074
2,500 Preferred Receivables
Funding A-1 5.30 05/29/96 2,489,694
6,105 American Telephone &
Telegraph A-1+ 5.28 06/10/96 6,069,184
2,480 Greenwich Funding
Corp. A-1+ 5.30 06/17/96 2,462,840
777 Receivables Capital
Corp. A-1 5.33 06/17/96 771,593
2,000 Beta Finance, Inc. A-1+ 5.10 07/17/96 1,978,183
3,475 First Deposit Funding
Trust A-1 5.35 07/19/96 3,434,202
2,235 First Deposit Funding
Trust A-1 5.40 07/19/96 2,208,515
7,000 E.I. DuPont de Nemours A-1+ 5.53 07/23/96 6,910,752
6,595 Warner-Lambert Co. A-1+ 4.82 08/20/96 6,496,988
---------
TOTAL COMMERCIAL PAPER 89,877,472
---------
VARIABLE RATE NOTES--5.4% (b)
3,800 General Electric
Capital Corp. A-1+ 5.44 07/26/96 3,801,093
6,500 General Electric
Capital Corp. A-1+ 5.25 08/22/96 6,501,129
---------
TOTAL VARIABLE RATE NOTES 10,302,222
---------
TOTAL INVESTMENTS--98.2%
(Identified cost $187,113,418) 187,113,418(a)
Cash and receivables, less liabilities--1.8% 3,507,661
---------
NET ASSETS--100.0% $190,621,079
=========
</TABLE>
(a) Federal Income Tax Information: At April 30, 1996, 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.
See Notes to Financial Statements
41
<PAGE>
Money Market Fund Series
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
(Unaudited)
Assets
Investment securities at value
(Identified cost $187,113,418) $187,113,418
Cash 324,631
Receivables
Fund shares sold 2,941,442
Interest 549,594
-----------
Total assets 190,929,085
-----------
Liabilities
Payables
Dividend distributions 136,461
Fund shares repurchased 12,675
Investment advisory fee 69,460
Transfer agent 68,847
Distribution fee 5,698
Trustees' fee 5,284
Financial agent fee 5,041
Accrued expenses 4,540
-----------
Total liabilities 308,006
-----------
Net Assets $190,621,079
===========
Net Assets Consist of:
Capital paid in on shares of beneficial interest $190,621,079
-----------
Net Assets $190,621,079
===========
Class A
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$181,662,146) 181,662,146
Net asset value and offering price per share $1.00
Class B
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$8,958,933) 8,958,933
Net asset value and offering price per share $1.00
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996
(Unaudited)
Investment Income
Interest $5,602,555
---------
Total investment income 5,602,555
---------
Expenses
Investment advisory fee 398,765
Distribution fee--Class B 32,621
Financial agent fee 29,907
Transfer agent 338,843
Registration 15,750
Custodian 14,032
Printing 10,309
Professional 9,021
Trustees 7,806
Miscellaneous 16,682
---------
Total expenses 873,736
---------
Net investment income $4,728,819
=========
See Notes to Financial Statements
42
<PAGE>
Money Market Fund Series
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Year Ended
1996 October 31,
(Unaudited) 1995
------------ ---------------
<S> <C> <C>
From Operations
Net investment income $ 4,728,819 $ 10,911,215
---------- -------------
From Distributions to Shareholders
Net investment income--Class A (4,554,338) (10,599,772)
Net investment income--Class B (174,481) (311,443)
---------- -------------
Decrease in net assets from distributions to shareholders (4,728,819) (10,911,215)
---------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (484,303,781 and 591,523,801 shares,
respectively) 484,303,781 591,523,801
Net asset value of shares issued from reinvestment of distributions
(4,275,740 and 9,841,714 shares, respectively) 4,275,740 9,841,714
Cost of shares repurchased (500,451,416 and 604,397,117 shares,
respectively) (500,451,416) (604,397,117)
---------- -------------
Total (11,871,895) (3,031,602)
---------- -------------
Class B
Proceeds from sales of shares (7,143,305 and 16,688,133 shares,
respectively) 7,143,305 16,688,133
Net asset value of shares issued from reinvestment of distributions
(139,520 and 248,387 shares, respectively) 139,520 248,387
Cost of shares repurchased (6,829,773 and 10,516,662 shares,
respectively) (6,829,773) (10,516,662)
---------- -------------
Total 453,052 6,419,858
---------- -------------
Increase (decrease) in net assets from share transactions (11,418,843) 3,388,256
---------- -------------
Net increase (decrease) in net assets (11,418,843) 3,388,256
Net Assets
Beginning of period 202,039,922 198,651,666
---------- -------------
End of period $ 190,621,079 $ 202,039,922
========== =============
</TABLE>
See Notes to Financial Statements
43
<PAGE>
Money Market Fund Series
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
------------------------------------------------------------------
Six
Months
Ended
4/30/96 Year Ended October 31,
(Unaudited) 1995 1994 1993 1992 1991
--------- ------- ------- ------- ------- ---------
<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 0.024 0.053 0.032 0.025(1) 0.035(1) 0.060
------- ----- ----- ----- ----- -------
Total from investment operations 0.024 0.053 0.032 0.025 0.035 0.060
------- ----- ----- ----- ----- -------
Less distributions
Dividends from net investment
income (0.024) (0.053) (0.032) (0.025) (0.035) (0.060)
------- ----- ----- ----- ----- -------
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 2.37%(3) 5.32% 3.20% 2.50% 3.50% 6.00%
Ratios/supplemental data:
Net assets, end of period
(thousands) $181,662 $193,534 $196,566 $170,334 $180,786 $168,573
Ratio to average net assets of:
Operating expenses 0.84%(2) 0.71% 0.85% 0.85% 0.85% 0.82%
Net investment income 4.75%(2) 5.31% 3.19% 2.53% 3.50% 6.01%
</TABLE>
Class B
------------------------------------
Six Months From
Ended Year Inception
4/30/96 Ended 7/15/94 to
(Unaudited) 10/31/95 10/31/94
---------- -------- ----------
Net asset value, beginning of period $1.00 $1.00 $1.00
Income from investment operations
Net investment income 0.020 0.046 0.007
-------- ------ --------
Total from investment operations 0.020 0.046 0.007
-------- ------ --------
Less distributions
Dividends from net investment
income (0.020) (0.046) (0.007)
-------- ------ --------
Change in net asset value -- -- --
-------- ------ --------
Net asset value, end of period $1.00 $1.00 $1.00
======== ====== ========
Total return 1.98%(3) 4.63% 0.70%(3)
Ratios/supplemental data:
Net assets, end of period
(thousands) $8,959 $8,506 $2,086
Ratio to average net assets of:
Operating expenses 1.58%(2) 1.44% 1.60%(2)
Net investment income 3.99%(2) 4.62% 3.46%(2)
(1) Includes reimbursement of operating expenses by investment adviser of
$0.0001 and $0.001, respectively.
(2) Annualized
(3) Not annualized
See Notes to Financial Statements
44
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1996 (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 has
distinct investment objectives. The Balanced Fund Series seeks to provide
reasonable income, long-term capital growth and conservation of capital. The
Convertible Fund Series seeks as its investment objectives income and the
potential for capital appreciation, which objectives are to be considered as
relatively equal. The Growth Fund Series seeks long-term appreciation of
capital. The U.S. Stock Fund Series seeks appreciation of capital through the
use of aggressive investment techniques. The High Yield Fund Series seeks to
provide high current income. The Money Market Series seeks to provide as high
a level of current income consistent with capital preservation and liquidity.
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. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets, liabilities, revenues and
expenses. Actual results could differ from those estimates.
A. Security valuation:
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, 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 61 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 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
45
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1996 (Unaudited) (Continued)
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These 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 trade date. The gain or loss resulting from a change in currency exchange
rates between the trade and settlement dates of a portfolio transaction is
treated as a gain or loss on foreign currency. Likewise, the gain or loss
resulting from a change in currency exchange rates, between the date income
is accrued and paid, is treated as a gain or loss on foreign currency. The
Trust does not separate that portion of the results of operations arising
from changes in exchange rates and that portion arising from changes in the
market prices of securities.
F. Forward currency contracts:
Each 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. Forward currency contracts
involve, to varying degrees, elements of market risk in excess of the amount
recognized in the statement of assets and liabilities. Risks arise from the
possible movements in foreign exchange rates or if the counterparty does not
perform under the contract.
A forward currency contract involves an obligation to purchase or sell a
specific currency at a future date, which may be any number of days from the
date of the contract agreed upon by the parties, at a price set at the time
of the contract. These contracts are traded 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 Series 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. A Series may enter into financial
futures contracts as a hedge against anticipated changes in the market value
of their portfolio securities. Upon entering into a futures contract the
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. The potential risk to a
Series is that the change in value of the futures contract may not correspond
to the change in value of the hedged instruments.
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 is adjusted daily in connection
with changes in the market value of securities on loan. 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 interest 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, 1996, the Trust had the following
amounts of security loans:
Value of
Value of Securities
Collateral on Loan
----------- -------------
Balanced Fund Series $163,663,445 $158,191,808
Convertible Fund Series 5,223,877 5,009,957
Growth Fund Series 21,739,600 21,400,066
U.S. Stock Fund Series 24,448,790 24,206,407
High Yield Fund Series 3,381,875 3,286,156
U.S. Government Securities Fund Series 45,707,500 42,942,615
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.
46
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1996 (Unaudited) (Continued)
J. Options:
Each Series may purchase put or call options on securities and securities
indices and foreign currencies for the purpose of hedging against changes in
the market value of the underlying securities or foreign currencies. The
Series pays a premium which is included in the Series' Schedule of
Investments and subsequently marked to market to reflect the current value of
the option. The risk associated with purchasing put and call options is
limited to the premium paid.
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 majority-owned subsidiary of Phoenix
Home Life Mutual Insurance Company ("PHL"), is entitled to a fee based upon
the following annual rates as a percentage of the average daily net assets of
each separate 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.
Phoenix Equity Planning Corporation (PEPCO), an indirect majority-owned
subsidiary of PHL, which serves as the national distributor of the Trust's
shares, has advised the Fund that it retained selling commissions of $332,795
for Class A shares and deferred sales charges of $91,021 for Class B shares,
for the six months ended April 30, 1996. In addition, each Series except 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 distribution fee for the Money Market Series
is 0% and .75% for Class A and Class B, respectively. The distributor has
advised the Series that of the total amount expensed for the six months ended
April 30, 1996, $1,241,466 was earned by the Distributor and $6,431,509 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, 1996, transfer agent fees were $5,606,697 of
which PEPCO retained $1,944,601 which is net of fees paid to State Street.
At April 30, 1996, PHL and affiliates held Phoenix Series Fund shares
which aggregated the following:
Aggregate
Net Asset
Shares Value
-------- ----------
High Yield Fund Series Class A 345 $ 2,874
U.S. Stock Fund Series Class B 9,692 166,597
Money Market Fund Series Class A 9,218,615 9,218,615
U.S. Government Securities Fund
Series Class A 275 2,560
NOTE 3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended April 30, 1996
(excluding U.S. Government securities and short-term securities) aggregated
the following:
Purchases Sales
----------- -------------
Balanced Fund Series $1,188,086,296 $1,010,417,240
Convertible Fund Series 127,900,714 112,665,727
Growth Fund Series 1,480,535,442 1,650,832,589
U.S. Stock Fund Series 430,963,238 409,952,776
High Yield Fund Series 223,886,334 256,724,425
Purchases and sales of U.S. Government securities during the six months
ended April 30, 1996, aggregated the following:
Purchases Sales
----------- -------------
Balanced Fund Series $312,289,164 $567,960,018
Convertible Fund Series -- --
Growth Fund Series -- --
U.S. Stock Fund Series -- --
High Yield Fund Series 74,641,591 79,819,990
U.S. Government
Securities Fund
Series 229,212,428 237,495,201
47
<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. 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.
48
<PAGE>
PHOENIX SERIES FUND
101 Munson Street
Greenfield, Massachusetts 01301
Trustees
C. Duane Blinn
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Calvin J. Pedersen
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
Officers
Philip R. McLoughlin, President
Martin J. Gavin, Executive Vice President
Michael E. Haylon, Executive Vice President
William J. Newman, Senior Vice President
Michael K. Arends, Vice President
Curtiss O. Barrows, Vice President
Mary E. Canning, Vice President
James M. Dolan, Vice President
John M. Hamlin, Vice President
Van Harissis, Vice President
Christopher J. Kelleher, Vice President
William R. Moyer, Vice President
C. Edwin Riley, Jr., 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.
56 Prospect Street
Hartford, Connecticut 06115-0480
Principal Underwriter
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
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 & Johnson LLP
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.
<PAGE>
Phoenix Series Fund
RESULTS OF SHAREHOLDER MEETING (Unaudited)
A special meeting in lieu of the Annual Meeting of Shareholders of the
Phoenix Series Fund was held on March 29, 1996 to approve the following
matters:
1. To approve or not approve an amendment to the Declaration of Trust
regarding the permitted number of trustees.
2. If proposal 1 is approved, to fix the number of trustees at fourteen and
elect such number as detailed below.
3. To ratify or reject the selection of Price Waterhouse LLP, independent
accountants, as auditors for the fiscal year ending October 31, 1995.
4. To approve or not approve a change in the Fund's investment restrictions
to expressly prohibit investment in real estate limited partnerships.
5. To approve or not approve a change in the Fund's investment restrictions
to clarify the amount of debt and equity securities of an issuer that may
be purchased.
On the record date for this meeting, there were 554,672,172 shares
outstanding and 56.43% of the shares outstanding and entitled to vote were
present by proxy.
Number of votes: For Against Abstain
--- ------- -------
1. Amendment to Trust 278,766,377 12,777,276 16,976,317
2. Election of Trustees
C. Duane Blinn 299,744,664 0 13,277,005
Robert Chesek 299,501,327 0 13,520,342
E. Virgil Conway 299,190,503 0 13,234,197
Harry Dalzell-Payne 299,190,503 0 13,554,778
Francis E. Jeffries 299,387,305 0 13,634,363
Leroy Keith, Jr. 299,787,472 0 13,406,983
Philip R. McLoughlin 299,800,643 0 13,252,652
Everett L. Morris 299,403,837 0 13,617,832
James M. Oates 299,641,792 0 13,379,877
Calvin J. Pedersen 299,472,380 0 13,549,288
Philip R. Reynolds 299,565,344 0 13,456,324
Herbert Roth, Jr. 299,801,595 0 13,220,074
Richard E. Segerson 299,662,433 0 13,350,064
Lowell P. Weicker, Jr. 297,137,120 0 15,884,197
3. Price Waterhouse LLP 295,944,511 3,303,305 13,776,796
4. Real Estate 251,362,325 11,857,455 17,603,237
5. Amount of issuer 246,165,190 15,479,295 19,178,532
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Phoenix Series Fund
P.O. Box 2200
Enfield, CT 06083-2200
[indicia]
Bulk Rate Mail
U.S. Postage
PAID
Springfield, MA
Permit No. 444
[logo]
PHOENIX
DUFF&PHELPS
PDP 395 (6/96)
[logo]
DALBAR
HONORS COMMITMENT TO
INVESTORS
1995
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 011
<NAME> PHOENIX BALANCED FUND SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 2108208
<INVESTMENTS-AT-VALUE> 2243399
<RECEIVABLES> 23459
<ASSETS-OTHER> 119
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2266977
<PAYABLE-FOR-SECURITIES> 86122
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6486
<TOTAL-LIABILITIES> 92608
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1929607
<SHARES-COMMON-STOCK> 127721
<SHARES-COMMON-PRIOR> 137616
<ACCUMULATED-NII-CURRENT> 4732
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 104839
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 135191
<NET-ASSETS> 2174369
<DIVIDEND-INCOME> 10942
<INTEREST-INCOME> 34504
<OTHER-INCOME> 0
<EXPENSES-NET> (11604)
<NET-INVESTMENT-INCOME> 33842
<REALIZED-GAINS-CURRENT> 104642
<APPREC-INCREASE-CURRENT> 1033
<NET-CHANGE-FROM-OPS> 139517
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (37324)
<DISTRIBUTIONS-OF-GAINS> (122888)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5121
<NUMBER-OF-SHARES-REDEEMED> (23969)
<SHARES-REINVESTED> 8953
<NET-CHANGE-IN-ASSETS> (193823)
<ACCUMULATED-NII-PRIOR> 8470
<ACCUMULATED-GAINS-PRIOR> 124065
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5956
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11604
<AVERAGE-NET-ASSETS> 2192215
<PER-SHARE-NAV-BEGIN> 17.04
<PER-SHARE-NII> 0.26
<PER-SHARE-GAIN-APPREC> 0.75
<PER-SHARE-DIVIDEND> (0.28)
<PER-SHARE-DISTRIBUTIONS> (0.92)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.85
<EXPENSE-RATIO> 0.99
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 012
<NAME> PHOENIX BALANCED FUND SERIES CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 2108208
<INVESTMENTS-AT-VALUE> 2243399
<RECEIVABLES> 23459
<ASSETS-OTHER> 119
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2266977
<PAYABLE-FOR-SECURITIES> 86122
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6486
<TOTAL-LIABILITIES> 92608
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1929607
<SHARES-COMMON-STOCK> 1353
<SHARES-COMMON-PRIOR> 997
<ACCUMULATED-NII-CURRENT> 4732
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 104839
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 135191
<NET-ASSETS> 2174369
<DIVIDEND-INCOME> 10942
<INTEREST-INCOME> 34504
<OTHER-INCOME> 0
<EXPENSES-NET> (11604)
<NET-INVESTMENT-INCOME> 33842
<REALIZED-GAINS-CURRENT> 104642
<APPREC-INCREASE-CURRENT> 1033
<NET-CHANGE-FROM-OPS> 139517
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (256)
<DISTRIBUTIONS-OF-GAINS> (981)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 356
<NUMBER-OF-SHARES-REDEEMED> (68)
<SHARES-REINVESTED> 68
<NET-CHANGE-IN-ASSETS> 5781
<ACCUMULATED-NII-PRIOR> 8470
<ACCUMULATED-GAINS-PRIOR> 124065
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5956
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11604
<AVERAGE-NET-ASSETS> 2192215
<PER-SHARE-NAV-BEGIN> 17.01
<PER-SHARE-NII> 0.19
<PER-SHARE-GAIN-APPREC> 0.76
<PER-SHARE-DIVIDEND> (0.22)
<PER-SHARE-DISTRIBUTIONS> (0.92)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.82
<EXPENSE-RATIO> 1.74
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 021
<NAME> PHOENIX CONVERTIBLE FUND SERIES CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 210051
<INVESTMENTS-AT-VALUE> 225428
<RECEIVABLES> 1685
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 227117
<PAYABLE-FOR-SECURITIES> 2516
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 471
<TOTAL-LIABILITIES> 2987
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 201198
<SHARES-COMMON-STOCK> 11455
<SHARES-COMMON-PRIOR> 12036
<ACCUMULATED-NII-CURRENT> 673
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6882
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 15377
<NET-ASSETS> 224130
<DIVIDEND-INCOME> 845
<INTEREST-INCOME> 4850
<OTHER-INCOME> 0
<EXPENSES-NET> (1330)
<NET-INVESTMENT-INCOME> 4365
<REALIZED-GAINS-CURRENT> 6878
<APPREC-INCREASE-CURRENT> 11502
<NET-CHANGE-FROM-OPS> 22745
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4931)
<DISTRIBUTIONS-OF-GAINS> (6716)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 238
<NUMBER-OF-SHARES-REDEEMED> (1350)
<SHARES-REINVESTED> 532
<NET-CHANGE-IN-ASSETS> (390)
<ACCUMULATED-NII-PRIOR> 1323
<ACCUMULATED-GAINS-PRIOR> 6846
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 728
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1330
<AVERAGE-NET-ASSETS> 225209
<PER-SHARE-NAV-BEGIN> 18.23
<PER-SHARE-NII> 0.37
<PER-SHARE-GAIN-APPREC> 1.51
<PER-SHARE-DIVIDEND> (0.42)
<PER-SHARE-DISTRIBUTIONS> (0.57)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.12
<EXPENSE-RATIO> 1.17
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 022
<NAME> PHOENIX CONVERTIBLE FUND SERIES CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 210051
<INVESTMENTS-AT-VALUE> 225428
<RECEIVABLES> 1685
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 227117
<PAYABLE-FOR-SECURITIES> 2516
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 471
<TOTAL-LIABILITIES> 2987
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 201198
<SHARES-COMMON-STOCK> 270
<SHARES-COMMON-PRIOR> 204
<ACCUMULATED-NII-CURRENT> 673
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6882
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 15377
<NET-ASSETS> 224130
<DIVIDEND-INCOME> 845
<INTEREST-INCOME> 4850
<OTHER-INCOME> 0
<EXPENSES-NET> (1330)
<NET-INVESTMENT-INCOME> 4365
<REALIZED-GAINS-CURRENT> 6878
<APPREC-INCREASE-CURRENT> 11502
<NET-CHANGE-FROM-OPS> 22745
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (83)
<DISTRIBUTIONS-OF-GAINS> (127)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 63
<NUMBER-OF-SHARES-REDEEMED> (6)
<SHARES-REINVESTED> 8
<NET-CHANGE-IN-ASSETS> 1421
<ACCUMULATED-NII-PRIOR> 1323
<ACCUMULATED-GAINS-PRIOR> 6846
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 728
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1330
<AVERAGE-NET-ASSETS> 225209
<PER-SHARE-NAV-BEGIN> 18.17
<PER-SHARE-NII> 0.33
<PER-SHARE-GAIN-APPREC> 1.48
<PER-SHARE-DIVIDEND> (0.35)
<PER-SHARE-DISTRIBUTIONS> (0.57)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.06
<EXPENSE-RATIO> 1.90
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 031
<NAME> PHOENIX GROWTH FUND SERIES CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 2072483
<INVESTMENTS-AT-VALUE> 2455832
<RECEIVABLES> 61891
<ASSETS-OTHER> 3
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2517726
<PAYABLE-FOR-SECURITIES> 48700
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6363
<TOTAL-LIABILITIES> 55063
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1818633
<SHARES-COMMON-STOCK> 94277
<SHARES-COMMON-PRIOR> 92305
<ACCUMULATED-NII-CURRENT> 6979
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 253703
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 383349
<NET-ASSETS> 2462664
<DIVIDEND-INCOME> 16615
<INTEREST-INCOME> 8128
<OTHER-INCOME> 0
<EXPENSES-NET> (13908)
<NET-INVESTMENT-INCOME> 10835
<REALIZED-GAINS-CURRENT> 253566
<APPREC-INCREASE-CURRENT> (12589)
<NET-CHANGE-FROM-OPS> 251812
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (12562)
<DISTRIBUTIONS-OF-GAINS> (149180)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5830
<NUMBER-OF-SHARES-REDEEMED> (10133)
<SHARES-REINVESTED> 6275
<NET-CHANGE-IN-ASSETS> 129274
<ACCUMULATED-NII-PRIOR> 8762
<ACCUMULATED-GAINS-PRIOR> 150795
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7945
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13908
<AVERAGE-NET-ASSETS> 2439232
<PER-SHARE-NAV-BEGIN> 24.92
<PER-SHARE-NII> 0.12
<PER-SHARE-GAIN-APPREC> 2.50
<PER-SHARE-DIVIDEND> (0.14)
<PER-SHARE-DISTRIBUTIONS> (1.63)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 25.77
<EXPENSE-RATIO> 1.14
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 032
<NAME> PHOENIX GROWTH FUND SERIES CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 2072483
<INVESTMENTS-AT-VALUE> 2455832
<RECEIVABLES> 61891
<ASSETS-OTHER> 3
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2517726
<PAYABLE-FOR-SECURITIES> 48700
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6363
<TOTAL-LIABILITIES> 55063
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1818633
<SHARES-COMMON-STOCK> 1297
<SHARES-COMMON-PRIOR> 813
<ACCUMULATED-NII-CURRENT> 6979
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 253703
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 383349
<NET-ASSETS> 2462664
<DIVIDEND-INCOME> 16615
<INTEREST-INCOME> 8128
<OTHER-INCOME> 0
<EXPENSES-NET> (13908)
<NET-INVESTMENT-INCOME> 10835
<REALIZED-GAINS-CURRENT> 253566
<APPREC-INCREASE-CURRENT> (12589)
<NET-CHANGE-FROM-OPS> 251812
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (57)
<DISTRIBUTIONS-OF-GAINS> (1478)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 505
<NUMBER-OF-SHARES-REDEEMED> (79)
<SHARES-REINVESTED> 58
<NET-CHANGE-IN-ASSETS> 13028
<ACCUMULATED-NII-PRIOR> 8762
<ACCUMULATED-GAINS-PRIOR> 150795
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7945
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13908
<AVERAGE-NET-ASSETS> 2439232
<PER-SHARE-NAV-BEGIN> 24.74
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 2.48
<PER-SHARE-DIVIDEND> (0.06)
<PER-SHARE-DISTRIBUTIONS> (1.63)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 25.55
<EXPENSE-RATIO> 1.90
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 071
<NAME> PHOENIX U.S. STOCK FUND SERIES CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 199501
<INVESTMENTS-AT-VALUE> 246804
<RECEIVABLES> 3247
<ASSETS-OTHER> 3
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 250054
<PAYABLE-FOR-SECURITIES> 12631
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 733
<TOTAL-LIABILITIES> 13364
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 170874
<SHARES-COMMON-STOCK> 13234
<SHARES-COMMON-PRIOR> 10920
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (845)
<ACCUMULATED-NET-GAINS> 19358
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 47303
<NET-ASSETS> 236690
<DIVIDEND-INCOME> 111
<INTEREST-INCOME> 273
<OTHER-INCOME> 0
<EXPENSES-NET> (1223)
<NET-INVESTMENT-INCOME> (839)
<REALIZED-GAINS-CURRENT> 22008
<APPREC-INCREASE-CURRENT> 19390
<NET-CHANGE-FROM-OPS> 40559
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (237)
<DISTRIBUTIONS-OF-GAINS> (24384)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7161
<NUMBER-OF-SHARES-REDEEMED> (6414)
<SHARES-REINVESTED> 1567
<NET-CHANGE-IN-ASSETS> 49821
<ACCUMULATED-NII-PRIOR> 231
<ACCUMULATED-GAINS-PRIOR> 22105
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 700
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1223
<AVERAGE-NET-ASSETS> 201079
<PER-SHARE-NAV-BEGIN> 16.51
<PER-SHARE-NII> (0.06)
<PER-SHARE-GAIN-APPREC> 3.12
<PER-SHARE-DIVIDEND> (0.02)
<PER-SHARE-DISTRIBUTIONS> (2.16)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.39
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 072
<NAME> PHOENIX U.S. STOCK FUND SERIES CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 199501
<INVESTMENTS-AT-VALUE> 246804
<RECEIVABLES> 3247
<ASSETS-OTHER> 3
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 250054
<PAYABLE-FOR-SECURITIES> 12631
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 733
<TOTAL-LIABILITIES> 13364
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 170874
<SHARES-COMMON-STOCK> 383
<SHARES-COMMON-PRIOR> 146
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (845)
<ACCUMULATED-NET-GAINS> 19358
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 47303
<NET-ASSETS> 236690
<DIVIDEND-INCOME> 111
<INTEREST-INCOME> 273
<OTHER-INCOME> 0
<EXPENSES-NET> (1223)
<NET-INVESTMENT-INCOME> (839)
<REALIZED-GAINS-CURRENT> 22008
<APPREC-INCREASE-CURRENT> 19390
<NET-CHANGE-FROM-OPS> 40559
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (371)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 274
<NUMBER-OF-SHARES-REDEEMED> (60)
<SHARES-REINVESTED> 23
<NET-CHANGE-IN-ASSETS> 4188
<ACCUMULATED-NII-PRIOR> 231
<ACCUMULATED-GAINS-PRIOR> 22105
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 700
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1223
<AVERAGE-NET-ASSETS> 201079
<PER-SHARE-NAV-BEGIN> 16.38
<PER-SHARE-NII> (0.03)
<PER-SHARE-GAIN-APPREC> 3.00
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (2.16)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 17.19
<EXPENSE-RATIO> 1.96
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 051
<NAME> PHOENIX HIGH YIELD FUND SERIES CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 474240
<INVESTMENTS-AT-VALUE> 498030
<RECEIVABLES> 13113
<ASSETS-OTHER> 3212
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 514355
<PAYABLE-FOR-SECURITIES> 1894
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2055
<TOTAL-LIABILITIES> 3949
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 563716
<SHARES-COMMON-STOCK> 59186
<SHARES-COMMON-PRIOR> 62128
<ACCUMULATED-NII-CURRENT> 2236
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (79335)
<ACCUM-APPREC-OR-DEPREC> 23789
<NET-ASSETS> 510406
<DIVIDEND-INCOME> 660
<INTEREST-INCOME> 26602
<OTHER-INCOME> 0
<EXPENSES-NET> (3127)
<NET-INVESTMENT-INCOME> 24135
<REALIZED-GAINS-CURRENT> 4243
<APPREC-INCREASE-CURRENT> 5329
<NET-CHANGE-FROM-OPS> 33707
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (23651)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3663
<NUMBER-OF-SHARES-REDEEMED> (8031)
<SHARES-REINVESTED> 1427
<NET-CHANGE-IN-ASSETS> (15)
<ACCUMULATED-NII-PRIOR> 2426
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (83579)
<GROSS-ADVISORY-FEES> 1682
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3127
<AVERAGE-NET-ASSETS> 520552
<PER-SHARE-NAV-BEGIN> 8.17
<PER-SHARE-NII> 0.40
<PER-SHARE-GAIN-APPREC> 0.14
<PER-SHARE-DIVIDEND> (0.39)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.32
<EXPENSE-RATIO> 1.18
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 052
<NAME> PHOENIX HIGH YIELD FUND SERIES B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-30-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 474240
<INVESTMENTS-AT-VALUE> 498030
<RECEIVABLES> 13113
<ASSETS-OTHER> 3212
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 514355
<PAYABLE-FOR-SECURITIES> 1894
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2055
<TOTAL-LIABILITIES> 3949
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 563716
<SHARES-COMMON-STOCK> 2140
<SHARES-COMMON-PRIOR> 1506
<ACCUMULATED-NII-CURRENT> 2236
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (79335)
<ACCUM-APPREC-OR-DEPREC> 23789
<NET-ASSETS> 510406
<DIVIDEND-INCOME> 660
<INTEREST-INCOME> 26602
<OTHER-INCOME> 0
<EXPENSES-NET> (3127)
<NET-INVESTMENT-INCOME> 24135
<REALIZED-GAINS-CURRENT> 4243
<APPREC-INCREASE-CURRENT> 5329
<NET-CHANGE-FROM-OPS> 33707
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (675)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 865
<NUMBER-OF-SHARES-REDEEMED> (263)
<SHARES-REINVESTED> 32
<NET-CHANGE-IN-ASSETS> 5
<ACCUMULATED-NII-PRIOR> 2426
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (83579)
<GROSS-ADVISORY-FEES> 1682
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3127
<AVERAGE-NET-ASSETS> 520552
<PER-SHARE-NAV-BEGIN> 8.19
<PER-SHARE-NII> 0.35
<PER-SHARE-GAIN-APPREC> 0.16
<PER-SHARE-DIVIDEND> (0.37)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.33
<EXPENSE-RATIO> 1.93
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 081
<NAME> PHOENIX U.S. GOVERNMENT SECURITIES FUND SERIES CLASS A
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 227201
<INVESTMENTS-AT-VALUE> 223048
<RECEIVABLES> 12370
<ASSETS-OTHER> 1
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 235419
<PAYABLE-FOR-SECURITIES> 10535
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 723
<TOTAL-LIABILITIES> 11258
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 238568
<SHARES-COMMON-STOCK> 23596
<SHARES-COMMON-PRIOR> 24567
<ACCUMULATED-NII-CURRENT> 517
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (10771)
<ACCUM-APPREC-OR-DEPREC> (4153)
<NET-ASSETS> 224161
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 7875
<OTHER-INCOME> 0
<EXPENSES-NET> (1234)
<NET-INVESTMENT-INCOME> 6641
<REALIZED-GAINS-CURRENT> (2086)
<APPREC-INCREASE-CURRENT> (4980)
<NET-CHANGE-FROM-OPS> (425)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 6030
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2681
<NUMBER-OF-SHARES-REDEEMED> (3991)
<SHARES-REINVESTED> 339
<NET-CHANGE-IN-ASSETS> (15373)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 526
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1234
<AVERAGE-NET-ASSETS> 230911
<PER-SHARE-NAV-BEGIN> 9.60
<PER-SHARE-NII> 0.27
<PER-SHARE-GAIN-APPREC> (0.30)
<PER-SHARE-DIVIDEND> (0.25)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.32
<EXPENSE-RATIO> 1.04
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 082
<NAME> PHOENIX U.S. GOVERNMENT SECURITIES FUND SERIES CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 227201
<INVESTMENTS-AT-VALUE> 223048
<RECEIVABLES> 12370
<ASSETS-OTHER> 1
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 235419
<PAYABLE-FOR-SECURITIES> 10535
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 723
<TOTAL-LIABILITIES> 11258
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 238568
<SHARES-COMMON-STOCK> 463
<SHARES-COMMON-PRIOR> 382
<ACCUMULATED-NII-CURRENT> 517
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (10771)
<ACCUM-APPREC-OR-DEPREC> (4153)
<NET-ASSETS> 224161
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 7875
<OTHER-INCOME> 0
<EXPENSES-NET> (1234)
<NET-INVESTMENT-INCOME> 6641
<REALIZED-GAINS-CURRENT> (2086)
<APPREC-INCREASE-CURRENT> (4890)
<NET-CHANGE-FROM-OPS> (425)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 93
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 131
<NUMBER-OF-SHARES-REDEEMED> (55)
<SHARES-REINVESTED> 5
<NET-CHANGE-IN-ASSETS> 652
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 526
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1234
<AVERAGE-NET-ASSETS> 230911
<PER-SHARE-NAV-BEGIN> 9.58
<PER-SHARE-NII> 0.23
<PER-SHARE-GAIN-APPREC> (0.30)
<PER-SHARE-DIVIDEND> (0.22)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.29
<EXPENSE-RATIO> 1.79
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 061
<NAME> PHOENIX MONEY MARKET FUND SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 187113
<INVESTMENTS-AT-VALUE> 187113
<RECEIVABLES> 3491
<ASSETS-OTHER> 325
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 190929
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 308
<TOTAL-LIABILITIES> 308
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 190621
<SHARES-COMMON-STOCK> 181662
<SHARES-COMMON-PRIOR> 193534
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 190621
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5603
<OTHER-INCOME> 0
<EXPENSES-NET> (874)
<NET-INVESTMENT-INCOME> 4729
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 4729
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4554)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 484304
<NUMBER-OF-SHARES-REDEEMED> (500451)
<SHARES-REINVESTED> 4276
<NET-CHANGE-IN-ASSETS> (11872)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 399
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 874
<AVERAGE-NET-ASSETS> 200478
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.02)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.84
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 062
<NAME> PHOENIX MONEY MARKET FUND SERIES
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 187113
<INVESTMENTS-AT-VALUE> 187113
<RECEIVABLES> 3491
<ASSETS-OTHER> 325
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 190929
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 308
<TOTAL-LIABILITIES> 308
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 190621
<SHARES-COMMON-STOCK> 8959
<SHARES-COMMON-PRIOR> 8506
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 190621
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5603
<OTHER-INCOME> 0
<EXPENSES-NET> (874)
<NET-INVESTMENT-INCOME> 4729
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 4729
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (174)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7143
<NUMBER-OF-SHARES-REDEEMED> (6830)
<SHARES-REINVESTED> 140
<NET-CHANGE-IN-ASSETS> 453
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 399
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 874
<AVERAGE-NET-ASSETS> 200478
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.02)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 1.58
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
