October 31, 1997
PHOENIX FUNDS
ANNUAL REPORT
- -- PHOENIX BALANCED FUND
- -- PHOENIX CONVERTIBLE FUND
- -- PHOENIX GROWTH FUND
- -- PHOENIX AGGRESSIVE
GROWTH FUND
- -- PHOENIX HIGH YIELD FUND
- -- PHOENIX U.S. GOVERNMENT
SECURITIES FUND
[Phoenix Logo] PHOENIX
DUFF & PHELPS
<PAGE>
Chairman's
Message
Dear Fellow Shareholder:
We're pleased to provide this consolidated report for Phoenix Series Fund
for the fiscal year ended October 31, 1997. This has been a remarkable time for
the financial markets, particularly equities. For the latest 12 months, the S&P
500 Stock Index rose over 32%, substantially above the historical average return
of 10.7%. In fact, the S&P 500 has had a positive return each year since
1990--the longest bull run in history and one of the most volatile.
As we discussed in our semiannual report, in a volatile market
environment, it's important to keep in mind a few "investment basics." The first
rule of investing is to periodically review your long-term investment plan.
Managing your investments in changing markets can be challenging, and your
adviser knows some time-tested strategies that can help.
Rebalancing your portfolio is one strategy to reduce risk. As the stock
market has moved higher, your equity investments may have increased in value so
that now they represent a higher percentage of your total portfolio than you
originally intended. Your financial adviser may recommend a shift in asset
allocation to bring your portfolio in line with your investment goals and
tolerance for risk.
Diversifying your portfolio is an effective strategy to smooth out the
effects of volatility. Spreading your investments across a broad mix of
securities, such as stocks and bonds, reduces risk. You can also diversify by
investment style. For example, balance an investment in growth stocks with a
fund that focuses on value-oriented stocks.
Dollar-cost averaging is a time-tested investment approach to making
market fluctuations work to your advantage. By using a systematic savings plan,
you buy fewer shares when prices are high and more when prices fall. Periodic
investment plans don't ensure a profit, however, and you should consider your
ability to continue to make purchases through periods of low prices.
During periods of market volatility, your most important asset may be
your financial adviser. A recent study showed that investors who work with a
financial adviser are most likely to maintain a long-term investment plan and as
a result, build assets over time. Our mission is also to help you achieve your
long-term financial goals. We look forward to continuing to serve your
investment needs.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
President and Chairman
Phoenix Funds
<PAGE>
Table of Contents
Equity Funds
The Balanced Fund Series ........................ 2
The Convertible Fund Series ..................... 11
The Growth Fund Series ........................... 19
The Aggressive Growth Fund Series ............... 26
Fixed Income Funds
The High Yield Fund Series ..................... 33
The U.S. Government Securities Fund Series ...... 41
The Money Market Fund Series ..................... 48
Notes to Financial Statements ..................... 55
Fund Features and General Information ............ 60
<PAGE>
PHOENIX BALANCED FUND SERIES
INVESTOR PROFILE
Phoenix Balanced Fund is designed for investors seeking to supplement
current income while maintaining the potential for future growth and
conservation of capital.
INVESTMENT ADVISER'S REPORT
Phoenix Balanced Fund posted double-digit gains over this latest fiscal
reporting period. For the 12 months ended October 31, 1997, the Fund's Class A
shares earned 18.04% and Class B shares returned 17.13%. Over the same reporting
cycle, the Balanced Benchmark provided a total return of 21.16%. All performance
figures assume reinvestment of dividends and exclude the effect of sales
charges. Positive contributors to overall results during the fiscal year
included strong stock selection and modest overweightings in the energy and
financial services groups, which were among the best-performing sectors. With
interest rates trending downward since mid-April, our decision to raise the
average duration of the portfolio's bond holdings also boosted returns.
Performance was held back by some of our technology and consumer cyclical
holdings, and to a lesser degree, exposure to the poorly performing basic
materials group.
OUTLOOK
Looking ahead, our long-term outlook remains constructive. Although
valuation levels have obviously risen for most of the market, the economy
continues to grow at a sustainable pace, inflation remains benign and the
outlook for overall corporate earnings is still positive. Stock selection
continues to focus on large- and mid-cap firms that possess above-average
earnings growth potential, superior management and global reach. The Fund is
currently overweighted in energy, health-care and financial services--sectors we
believe will continue to provide some of the best long-term growth
opportunities. On the fixed-income side, the Fund is well-diversified in a
number of traditional and non-traditional sectors, and our long-term outlook for
the bond market remains positive. The fixed-income segment of the portfolio
currently has an average credit quality of "AA" and a duration of approximately
5.6 years, slightly longer than our benchmark, the Lehman Brothers Aggregate
Bond Index. As of October 31, 1997, the Fund's asset allocation was 55%
equities, 32% fixed-income and 13% cash equivalents.
2
<PAGE>
Phoenix Balanced Fund Series
- --------------------------------------------------------------------------------
[LINE CHART]
(tabular representation of plot points)
BALANCED FUND
Balanced Benchmark S&P 500 Phoenix Balanced Fund
Index** Stock Index -- Class A
10/31/87 10000 10000 9525
10/31/88 11284 11449 9732
10/31/89 13476 14451 11736
10/31/90 13328 13364 12289
10/31/91 16574 17841 15516
10/31/92 18143 19618 17032
10/31/93 20441 22540 18721
10/31/94 20701 23427 18701
10/31/95 24935 29615 20917
10/31/96 28835 36782 23433
10/31/97 34937 48672 27661
[/LINE CHART]
Average Annual Total Returns for Periods Ending 10/31/97
From Inception
7/15/94 to
1 Year 5 Years 10 Years 10/31/97
- --------------------------------------------------------------------------------
Class A with 4.75% sales charge 12.41% 9.12% 10.71% --
- --------------------------------------------------------------------------------
Class A at net asset value 18.04% 10.18% 11.25% --
- --------------------------------------------------------------------------------
Class B with CDSC 13.13% -- -- 12.60%
- --------------------------------------------------------------------------------
Class B at net asset value 17.13% -- -- 13.06%
- --------------------------------------------------------------------------------
Balanced Benchmark** 21.16% 14.00% 13.33% 18.08%***
- --------------------------------------------------------------------------------
S&P 500 Stock Index* 32.33% 19.93% 17.15% 26.62%
- --------------------------------------------------------------------------------
This chart assumes an initial investment of $10,000 made on 10/31/87 for Class
A shares. The total return for Class A shares reflects the maximum sales charge
of 4.75% on the initial investment and assumes reinvestment of dividends and
capital gains. Class B share performance will be greater or less than that
shown based on differences in inception date, fees and sales charges. The total
return (since inception 7/15/94) for Class B shares reflects the 5% contingent
deferred sales charge (CDSC), which is applicable on all shares redeemed during
the 1st year after purchase and 4% for all shares redeemed during the 2nd year
after purchase (scaled down to 3%-3rd year, 2%-4th and 5th year and 0%
thereafter). Returns indicate past performance, which is not predictive of
future performance. Investment return and net asset value will fluctuate so
that your shares, when redeemed, may be worth more or less than the original
cost.
*The S&P 500 Stock Index is an unmanaged but commonly used measure of stock
total return performance. The S&P 500 performance does not reflect sales
charges.
**The Balanced Benchmark is calculated based upon the performance of the
following indexes: 55% S&P 500/35% Lehman Brothers Aggregate Bond Index/10%
U.S. Treasury Bills and is produced by Frank Russell Company. The index's
performance does not reflect sales charges.
***Index information from 7/31/94 to 10/31/97.
3
<PAGE>
Phoenix Balanced Fund Series
- --------------------------------------------------------------------------------
INVESTMENTS AT OCTOBER 31, 1997
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- -------------
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES--18.6%
U.S. Treasury Bonds--2.7%
U.S. Treasury Bonds 6.375%,
8/15/27 .................................... AAA $44,700 $ 46,068,938
------------
U.S. Treasury Notes--10.7%
U.S. Treasury Notes 6.875%,
3/31/00 .................................... AAA 61,000 62,561,600
U.S. Treasury Notes 6%,
8/15/00 .................................... AAA 46,000 46,373,750
U.S. Treasury Notes 5.75%,
10/31/02 .................................... AAA 31,500 31,549,203
U.S. Treasury Notes 6.50%,
10/15/06 .................................... AAA 44,005 45,697,872
------------
186,182,425
------------
Agency Mortgage-Backed Securities--5.2%
FNMA 6.85%, 5/17/20 ........................... AAA 13,600 13,668,000
GNMA 6.50%, '23-26 ........................... AAA 76,494 76,089,771
------------
89,757,771
------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
(Identified cost $318,536,384) ....................................... 322,009,134
------------
NON-CONVERTIBLE BONDS--7.5%
Asset-Backed Securities--1.8%
AESOP Funding II LLC 144A
97-1, A2 6.40%, 10/20/03 (c) .AAA 8,500 8,561,094
Associates Manufactured
Housing Pass Through 97-2
A6 7.075%, 3/15/28 ........................ AAA 3,000 3,015,000
Fleetwood Credit Corp. 96-B, A
6.90%, 3/15/12 .............................. AAA 3,103 3,143,347
Green Tree Financial Corp.
96-2, M1 7.60%, 4/15/27 ..................... AA- 9,150 9,610,359
Green Tree Financial Corp.
96-4, A6 7.40%, 6/15/27 ..................... AAA 4,500 4,649,063
TLFC Equipment Lease Trust
96-1, A 5.98%, 11/20/02 ..................... AAA 1,845 1,843,695
------------
30,822,558
------------
Non-Agency Mortgage-Backed Securities--5.4%
CS First Boston Mortgage 95-
AE, B 7.182%, 11/25/27 ..................... AA- 6,260 6,322,600
Chase Commercial Mortgage
Securities Corp. 96-2, A1
6.70%, 7/19/03 .............................. AAA 1,045 1,067,101
DLJ Mortgage Acceptance Corp.
96-CF1, A1B 144A 7.58%,
3/13/28 (c) ................................. AAA 4,975 5,303,039
First Union Lehman Bros.
97-C1, B 7.43%, 4/18/07 ..................... Aa(d) 8,532 8,951,934
G.E. Capital Mortgage Services,
Inc. 96-8, M 7.25%, 5/25/26 .AA 5,133 5,199,943
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- -------------
<S> <C> <C> <C>
Non-Agency Mortgage-Backed Securities--continued
Lehman Large Loan 97-LL1, B
6.95%, 3/12/07 .............................. AA $10,500 $ 10,714,922
Nationslink Funding Corp. 96-1,
B 7.69%, 12/20/05 ........................... AA 5,907 6,245,709
Prudential Home Mortgage
Securities 93-L, 2B3 144A
6.641%, 12/25/23 (c) ........................ A 5,000 4,892,187
Residential Asset Securitization
Trust 96-A8, A1 8%,
12/25/26 .................................... AAA 3,276 3,341,807
Residential Funding Mortgage
Securities I 96-S1, A11
7.10%, 1/25/26 .............................. AAA 7,000 7,096,250
Residential Funding Mortgage
Securities I 96-S4, M1 7.25%,
2/25/26 .................................... AA 5,930 5,965,380
Residential Funding Mortgage
Securities I 96-S8, A4 6.75%,
3/25/11 .................................... AAA 2,670 2,702,969
Resolution Trust Corp. 93-C1, B
8.75%, 5/25/24 .............................. Aa(d) 4,541 4,541,200
Resolution Trust Corp. 95-2, M2
7.009%, 5/25/29 ........................... Aa(d) 4,061 4,102,442
Securitized Asset Sales 93-J 2B
6.807%, 11/28/23 ........................... A 7,252 7,088,594
Structured Asset Securities
Corp. 93-C1, B 6.60%,
10/25/24 .................................... A+ 4,415 4,338,095
Structured Asset Securities
Corp. 95-C4, B 7%, 6/25/26 .................. AA 5,000 5,067,188
------------
92,941,360
------------
Paper & Forest Products--0.2%
Buckeye Cellulose Corp. 9.25%,
9/15/08 .................................... BB- 4,185 4,383,787
------------
Truckers--0.1%
Teekay Shipping Corp. 8.32%,
2/1/08 .................................... BB 1,675 1,725,250
------------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $126,448,775) ............................................129,872,955
------------
FOREIGN GOVERNMENT SECURITIES--1.9%
Argentina--0.5%
Republic of Argentina Discount
L-GL Euro 6.875%, 3/31/23 (f). BB 5,100 4,035,375
Republic of Argentina Global
Bond 11.375%, 1/30/17 ..................... BB 800 764,000
Republic of Argentina Par L-GP
5.50%, 3/31/23 (f) ........................ BB 6,050 4,076,188
------------
8,875,563
------------
</TABLE>
See Notes to Financial Statements
4
<PAGE>
Phoenix Balanced Fund Series
- --------------------------------------------------------------------------------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- ------------
Brazil--0.4%
Republic of Brazil Discount Z-L
Euro 6.688%, 4/15/24 (f) ......... BB- $ 5,200 $ 4,043,000
Republic of Brazil Par Z-L Euro
5.25%, 4/15/24 (f) ............... BB- 5,000 3,306,250
-----------
7,349,250
-----------
Colombia--0.5%
Republic of Colombia 7.25%,
2/15/03 ........................ BBB- 8,950 8,685,259
-----------
Mexico--0.5%
United Mexican States Discount
B Euro 6.836%, 12/31/19 (e)(f) . BB 6,900 6,248,812
United Mexican States Series B
Euro 6.25%, 12/31/19 (e) ......... BB 1,500 1,200,000
-----------
7,448,812
-----------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $29,872,715) .............................. 32,358,884
-----------
FOREIGN NON-CONVERTIBLE BONDS--0.2%
Chile--0.2%
Petropower I Funding Trust
144A 7.36%, 2/15/14 (c) ......... BBB 2,900 2,866,592
-----------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $2,900,000) .............................. 2,866,592
-----------
MUNICIPAL BONDS--2.7%
California--1.7%
Kern County Pension Obligation
Taxable 7.26%, 8/15/14 ......... AAA 6,830 7,093,979
Long Beach Pension Obligation
Taxable 6.87%, 9/1/06 ............ AAA 3,090 3,164,284
Orange County Pension Series A
Taxable 7.62%, 9/1/08 ............ AAA 9,545 10,275,479
San Bernardino County
Obligation Revenue Taxable
6.87%, 8/1/08 .................. AAA 1,480 1,518,406
San Bernardino County
Obligation Revenue Taxable
6.94%, 8/1/09 .................. AAA 4,035 4,153,468
Ventura County Pension Taxable
6.58%, 11/1/06 .................. AAA 3,560 3,577,800
-----------
29,783,416
-----------
Florida--0.9%
Miami Beach Special Obligation
Taxable 8.60%, 9/1/21 ............ AAA 11,675 13,041,559
University of Miami
Exchangeable Revenue Series
A Taxable 7.65%, 4/1/20 ......... AAA 1,940 2,007,201
-----------
15,048,760
-----------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- ------------
Virginia--0.1%
Newport News Taxable Series B
7.05%, 1/15/25 .................. AA- $ 1,500 $ 1,490,550
-----------
TOTAL MUNICIPAL BONDS
(Identified cost $44,833,632) ............................ 46,322,726
-----------
CONVERTIBLE BONDS--0.7%
Retail (General Merchandise)--0.7%
Staples, Inc. Subordinate
Debenture Cv. 144A 4.50%,
10/1/00 (c) ..................... BB- 10,000 12,687,500
-----------
TOTAL CONVERTIBLE BONDS
(Identified cost $10,000,000) ............................ 12,687,500
-----------
SHARES
---------
PREFERRED STOCKS--1.1%
REITS--1.1%
Home Ownership Funding 2, Step-down
Pfd. 144A 13.338% (c) ..................... 20,000 19,826,900
-----------
TOTAL PREFERRED STOCKS
(Identified cost $19,371,530) ........................ 19,826,900
-----------
COMMON STOCKS--51.6%
Air Freight--0.2%
Federal Express Corp. (b) ..................... 53,400 3,564,450
-----------
Banks (Major Regional)--4.2%
AmSouth Bancorporation ........................ 64,700 3,109,644
BankBoston Corp. .............................. 60,400 4,896,175
Compass Bankshares, Inc. ..................... 50,100 1,888,144
First Union Corp. ........................... 35,000 1,717,188
Fleet Financial Group, Inc. .................. 80,100 5,151,431
Mellon Bank Corp. ........................... 380,000 19,593,750
NationsBank Corp. ........................... 420,400 25,171,450
Washington Mutual, Inc. ..................... 158,800 10,867,875
-----------
72,395,657
-----------
Banks (Money Center)--1.1%
BankAmerica Corp. ........................... 139,800 9,995,700
Citicorp .................................... 67,100 8,391,694
-----------
18,387,394
-----------
Biotechnology--0.1%
Centocor, Inc. (b) ........................... 35,600 1,566,400
-----------
Broadcasting (Television, Radio, & Cable)--0.1%
Chancellor Media Corp. (b) .................. 28,700 1,574,912
-----------
Chemicals--0.5%
Monsanto Co. ................................. 196,100 8,383,275
-----------
Communications Equipment--0.7%
Ciena Corp. (b) .............................. 66,800 3,674,000
Lucent Technologies, Inc. ..................... 107,000 8,820,812
-----------
12,494,812
-----------
Computers (Hardware)--2.0%
International Business Machines Corp. . 360,100 35,312,306
-----------
See Notes to Financial Statements
5
<PAGE>
Phoenix Balanced Fund Series
- --------------------------------------------------------------------------------
SHARES VALUE
--------- ------------
Computers (Networking)--0.6%
Cisco Systems, Inc. (b) ..................... 131,150 $10,758,392
-----------
Computers (Peripherals)--0.6%
EMC Corp. (b) ................................. 189,900 10,634,400
-----------
Computers (Software & Services)--1.7%
Adaptec, Inc. (b) ........................... 243,900 11,813,906
BMC Software, Inc. (b) ........................ 190,800 11,519,550
Compuware Corp. (b) ........................... 76,300 5,045,338
Edwards (J.D.) & Co. (b) ..................... 46,000 1,564,000
-----------
29,942,794
-----------
Distributors (Food & Health)--1.5%
Cardinal Health, Inc. ........................ 348,200 25,853,850
-----------
Electrical Equipment--1.2%
General Electric Co. ........................ 301,900 19,491,419
Honeywell, Inc. .............................. 10,500 714,656
-----------
20,206,075
-----------
Electronics (Instrumentation)--1.1%
Linear Technology Corp. ..................... 125,900 7,915,962
Perkin Elmer Corp. ........................... 192,700 12,043,750
-----------
19,959,712
-----------
Electronics (Semiconductors)--1.2%
National Semiconductor Corp. (b) ............ 262,800 9,460,800
Texas Instruments, Inc. ..................... 113,500 12,109,031
-----------
21,569,831
-----------
Entertainment--0.6%
Tele-Comm Liberty Media Group (b) ............ 56,100 1,952,981
Walt Disney Co. .............................. 103,900 8,545,775
-----------
10,498,756
-----------
Financial (Diversified)--1.7%
American Express Co. ........................ 48,700 3,798,600
Franklin Resources, Inc. ..................... 138,200 12,420,725
Price (T. Rowe) Associates .................. 209,600 13,886,000
-----------
30,105,325
-----------
Health Care (Diversified)--1.1%
Bristol-Myers Squibb Co. ..................... 215,000 18,866,250
-----------
Health Care (Drugs--Major Pharmaceuticals)--3.7%
Lilly (Eli) & Co. ........................... 271,600 18,163,250
Merck & Co., Inc. ........................... 164,900 14,717,325
Pfizer, Inc. ................................. 382,400 27,054,800
Watson Pharmaceuticals, Inc. (b) ............ 159,400 5,060,950
-----------
64,996,325
-----------
Health Care (Hospital Management)--0.9%
HBO & Co. .................................... 369,900 16,090,650
-----------
Health Care (Medical Products & Supplies)--1.7%
Baxter International, Inc. .................. 202,000 9,342,500
Guidant Corp. ................................. 195,600 11,247,000
Medtronic, Inc. .............................. 188,800 8,212,800
-----------
28,802,300
-----------
Household Furn. & Appliances--0.2%
Sunbeam Corp., Inc. ........................... 79,300 3,593,281
-----------
SHARES VALUE
--------- ------------
Household Products (Non-Durables)--1.6%
Colgate-Palmolive Co. ........................ 207,700 $13,448,575
Procter & Gamble Co. ........................ 202,000 13,736,000
-----------
27,184,575
-----------
Insurance (Multi-Line)--1.6%
Hartford Financial Services Group, Inc. 107,100 8,675,100
Travelers Group, Inc. ........................ 274,200 19,194,000
-----------
27,869,100
-----------
Insurance (Property-Casualty)--1.1%
Allstate Corp. .............................. 230,100 19,083,919
-----------
Investment Banking/Brokerage--0.9%
Merrill Lynch & Co., Inc. ..................... 239,400 16,189,425
-----------
Machinery (Diversified)--0.6%
Deere & Co. ................................. 193,800 10,198,725
-----------
Manufacturing (Diversified)--1.0%
Tyco International Ltd. ..................... 480,000 18,120,000
-----------
Natural Gas--0.4%
Columbia Gas System, Inc. ..................... 88,600 6,401,350
-----------
Oil (Domestic Integrated)--1.1%
Tosco Corp. ................................. 561,200 18,519,600
-----------
Oil & Gas (Drilling & Equipment)--5.4%
BJ Services Co. (b) ........................... 41,400 3,508,650
Diamond Offshore Drilling, Inc. ............... 90,700 5,646,075
ENSCO International, Inc. ..................... 127,800 5,375,588
Halliburton Co. .............................. 299,600 17,863,650
Nabors Industries, Inc. (b) .................. 158,000 6,497,750
Noble Drilling Corp. (b) ..................... 557,300 19,818,981
Rowan Companies, Inc. (b) ..................... 87,300 3,393,788
Schlumberger Ltd. ........................... 205,600 17,990,000
Transocean Offshore, Inc. ..................... 219,200 11,836,800
Veritas DGC, Inc. (b) ........................ 43,000 1,760,313
-----------
93,691,595
-----------
Oil & Gas (Exploration & Production)--0.7%
Apache Corp. ................................. 295,900 12,427,800
-----------
Paper & Forest Products--0.6%
Fort James Corp. .............................. 246,700 9,790,906
-----------
Personal Care--1.1%
Gillette Co. ................................. 206,700 18,409,219
-----------
Publishing (Newspapers)--0.6%
Gannett Co, Inc. .............................. 197,600 10,386,350
-----------
Retail (Building Supplies)--0.6%
Home Depot, Inc. .............................. 180,200 10,023,625
-----------
Retail (Drug Stores)--1.5%
CVS Corp. .................................... 261,700 16,045,481
Rite Aid Corp. .............................. 169,700 10,075,938
-----------
26,121,419
-----------
Retail (Food Chains)--0.6%
Safeway, Inc. (b) ........................... 180,900 10,514,812
-----------
Retail (General Merchandise)--1.2%
Borders Group, Inc. (b) ..................... 206,100 5,345,719
Staples, Inc. (b) ........................... 572,800 15,036,000
-----------
20,381,719
-----------
See Notes to Financial Statements
6
<PAGE>
Phoenix Balanced Fund Series
- --------------------------------------------------------------------------------
SHARES VALUE
--------- ---------------
Telecommunications (Cellular/Wireless)--1.2%
AirTouch Communications, Inc. (b) ......... 518,400 $20,023,200
-------------
Telephone--0.1%
LCI International, Inc. (b) ............... 65,200 1,687,050
-------------
Tobacco--1.8%
Philip Morris Companies, Inc. ............ 768,100 30,435,962
-------------
Waste Management--1.2%
U.S. Filter Corp. (b) ..................... 516,800 20,736,600
-------------
TOTAL COMMON STOCKS
(Identified cost $783,673,628) .................. 893,754,098
-------------
FOREIGN COMMON STOCKS--2.9%
Banks (Major Regional)--0.2%
Banco Rio de La Plata SA ADR
(Argentina) (b) ........................ 355,000 3,727,500
-------------
Household Furn. & Appliances--1.8%
Philips Electronics NV ADR NY
Registered (Netherlands) ............... 400,000 31,350,000
-------------
Oil (Domestic Integrated)--0.4%
YPF Sociedad Anonima Sponsored
ADR Class D (Argentina) ............... 244,400 7,820,800
-------------
Oil (International Integrated)--0.5%
Elf Aquitane Sponsored ADR (France) (b) 134,700 8,317,725
-------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $50,522,802)................... 51,216,025
-------------
TOTAL LONG-TERM INVESTMENTS--87.2%
(Identified cost $1,386,159,466) ............. 1,510,914,814
-------------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000)
------------- ---------
SHORT-TERM OBLIGATIONS--10.2%
Commercial Paper--8.5%
Cargill Inc. 5.65%, 11/3/97 ...... A-1+ $ 3,765 3,763,818
Pitney Bowes Credit Corp.
5.57%, 11/4/97 ............... A-1+ 7,520 7,516,510
International Lease Finance
Corp. 5.50%, 11/5/97 ......... A-1 10,000 9,993,889
Sara Lee Corp. 5.51%, 11/5/97 .A-1+ 4,505 4,502,242
Sara Lee Corp. 5.50%, 11/7/97 .A-1+ 11,000 10,989,917
Ciesco L.P. 5.52%, 11/10/97 ...... A-1+ 2,775 2,771,171
General Re Corp. 5.50%,
11/10/97 ..................... A-1+ 12,895 12,877,269
Kimberly-Clark Corp. 5.57%,
11/10/97 ..................... A-1+ 8,000 7,988,860
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- ----------------------
Commercial Paper--continued
Kellogg Co. 5.52%,
11/13/97 .................. A-1+ $ 5,300 $ 5,290,248
Enterprise Funding Corp.
5.57%, 11/17/97 ............ A-1+ 2,192 2,186,574
Kimberly-Clark Corp.
5.48%, 11/18/97 ............ A-1+ 7,560 7,540,436
Preferred Receivables
Funding Corp. 5.53%,
11/18/97 .................. A-1 7,150 7,131,329
Albertson's Inc. 5.49%,
11/19/97 .................. A-1 7,800 7,778,589
Albertson's Inc. 5.50%,
11/19/97 .................. A-1 10,665 10,635,671
AlliedSignal Inc. 5.53%,
11/19/97 .................. A-1 1,870 1,864,829
Abbott Laboratories,
5.50%, 11/20/97 ............ A-1+ 200 199,419
Receivables Capital Corp.
5.55%, 11/20/97 ............ A-1+ 5,121 5,106,000
Private Export Funding
Corp. 5.48%, 12/3/97 ...... A-1+ 5,000 4,975,644
Private Export Funding
Corp. 5.51%, 12/3/97 ...... A-1+ 15,000 14,926,533
Private Export Funding
Corp. 5.57%, 12/4/97 ...... A-1+ 5,000 4,974,471
Preferred Receivables
Funding Corp. 5.52%,
12/11/97 .................. A-1 5,790 5,753,224
Heinz (H.J.) Co. 5.52%,
12/15/97 .................. A-1 8,540 8,482,383
--------------
147,249,026
--------------
Federal Agency Securities--1.7%
FFCB 5.50%, 11/3/97 ..................... 5,000 5,000,091
FHLMC 5.47%, 11/12/97 ..................... 11,785 11,765,303
FHLMC 5.46%, 11/13/97 ..................... 5,835 5,824,380
FNMA 5.46%, 11/24/97 ..................... 6,170 6,148,477
--------------
28,738,251
--------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $175,988,440) ..................... 175,987,277
--------------
TOTAL INVESTMENTS--97.4%
(Identified cost $1,562,147,906)..................... 1,686,902,091(a)
Cash and receivables, less liabilities--2.6% ...... 45,698,172
--------------
NET ASSETS--100.0% $1,732,600,263
==============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $145,763,717 and gross
depreciation of $24,122,475 for income tax purposes. At October 31, 1997,
the aggregate cost of securities for federal income tax purposes was
$1,565,260,849.
(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 October 31,
1997, these securities amounted to a value of $54,137,312 or 3.1% of net
assets.
(d) As rated by Moody's, Fitch or Duff & Phelps.
(e) 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
7
<PAGE>
Phoenix Balanced Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
Assets
Investment securities at value
(Identified cost $1,562,147,906) $1,686,902,091
Short-term investments held as collateral for loaned
securities 539,973
Cash 971,706
Receivables
Investment securities sold 48,531,371
Dividends and interest 5,249,560
Fund shares sold 889,210
--------------
Total assets 1,743,083,911
--------------
Liabilities
Payables
Investment securities purchased 5,641,600
Fund shares repurchased 2,408,668
Collateral on securities loaned 539,973
Investment advisory fee 798,944
Distribution fee 397,940
Transfer agent fee 358,400
Financial agent fee 33,481
Trustees' fee 3,636
Accrued expenses 301,006
--------------
Total liabilities 10,483,648
--------------
Net Assets $1,732,600,263
==============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $1,355,489,730
Undistributed net investment income 4,441,011
Accumulated net realized gain 247,915,337
Net unrealized appreciation 124,754,185
--------------
Net Assets $1,732,600,263
==============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $1,702,384,566) 94,226,804
Net asset value per share $ 18.07
Offering price per share
$18.07/(1-4.75%) $ 18.97
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $30,215,697) 1,675,102
Net asset value and offering price per share $ 18.04
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997
Investment Income
Interest $ 52,009,109
Dividends 12,458,844
Security lending 844,196
------------
Total investment income 65,312,149
------------
Expenses
Investment advisory fee 9,489,765
Distribution fee--Class A 4,424,138
Distribution fee--Class B 282,982
Financial agent fee 423,306
Transfer agent 2,590,350
Printing 350,915
Custodian 147,813
Professional 35,929
Registration 31,799
Trustees 19,365
Miscellaneous 67,620
------------
Total expenses 17,863,982
------------
Net investment income 47,448,167
------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 250,102,191
Net realized gain on written options 59,252
Net change in unrealized appreciation (depreciation) on
investments 404,566
------------
Net gain on investments 250,566,009
------------
Net increase in net assets resulting from
operations $298,014,176
============
See Notes to Financial Statements
8
<PAGE>
Phoenix Balanced Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1997 October 31, 1996
------------------ -----------------
<S> <C> <C>
From Operations
Net investment income $ 47,448,167 $ 59,439,739
Net realized gain 250,161,443 195,766,527
Net change in unrealized appreciation (depreciation) 404,566 (9,808,717)
-------------- --------------
Increase in net assets resulting from operations 298,014,176 245,397,549
-------------- --------------
From Distributions to Shareholders
Net investment income--Class A (48,278,671) (62,440,078)
Net investment income--Class B (561,622) (463,570)
Net realized gains--Class A (194,038,812) (124,234,079)
Net realized gains--Class B (2,800,356) (996,128)
-------------- --------------
Decrease in net assets from distributions to shareholders (245,679,461) (188,133,855)
-------------- --------------
From Share Transactions
Class A
Proceeds from sales of shares (4,597,468 and 8,800,790 shares, respectively) 78,630,179 149,289,059
Net asset value of shares issued from reinvestment of distributions
(13,753,866 and 10,383,411 shares, respectively) 223,224,574 172,128,352
Cost of shares repurchased (32,162,386 and 48,762,578 shares, respectively) (548,027,979) (825,995,436)
-------------- --------------
Total (246,173,226) (504,578,025)
-------------- --------------
Class B
Proceeds from sales of shares (319,964 and 616,550 shares, respectively) 5,480,183 10,464,882
Net asset value of shares issued from reinvestment of distributions
(189,697 and 80,135, respectively) 3,074,179 1,326,954
Cost of shares repurchased (329,164 and 199,574 shares, respectively) (5,630,228) (3,374,422)
-------------- --------------
Total 2,924,134 8,417,414
-------------- --------------
Decrease in net assets from share transactions (243,249,092) (496,160,611)
-------------- --------------
Net decrease in net assets (190,914,377) (438,896,917)
Net Assets
Beginning of period 1,923,514,640 2,362,411,557
-------------- --------------
End of period (including undistributed net investment income of
$4,441,011 and $4,825,975, respectively) $1,732,600,263 $1,923,514,640
============== ==============
</TABLE>
See Notes to Financial Statements
9
<PAGE>
Phoenix Balanced Fund Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
--------------------------------------------------------------------------------------
Year Ended October 31,
1997 1996 1995 1994 1993
----------------- ---------------- ---------------- ----------------- ----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $17.56 $17.04 $15.23 $16.64 $15.92
Income from investment operations
Net investment income 0.48 0.48 0.52 0.48 0.46
Net realized and unrealized gain (loss) 2.38 1.46 1.80 (1.01) 1.08
------------- ------------ ------------ ----------- ------------
Total from investment operations 2.86 1.94 2.32 (0.53) 1.54
------------- ------------ ------------ ----------- ------------
Less distributions
Dividends from net investment income ( 0.48) ( 0.49) (0.51) (0.49) (0.46)
Dividends from net realized gains ( 1.87) ( 0.93) -- (0.39) (0.36)
------------- ------------ ------------ ----------- ------------
Total distributions ( 2.35) ( 1.42) (0.51) (0.88) (0.82)
------------- ------------ ------------ ----------- ------------
Change in net asset value 0.51 0.52 1.81 (1.41) 0.72
------------- ------------ ------------ ----------- ------------
Net asset value, end of period $18.07 $17.56 $17.04 $15.23 $16.64
============= ============ ============ =========== ============
Total return(1) 18.04 % 12.03 % 15.52% (3.28)% 9.92%
Ratios/supplemental data:
Net assets, end of period (thousands) $1,702,385 $1,897,306 $2,345,440 $2,601,808 $3,126,014
Ratio to average net assets of:
Operating expenses 0.98 % 1.01 % 1.02% 0.96% 0.95%
Net investment income 2.65 % 2.74 % 3.27% 3.03% 2.88%
Portfolio turnover 206% 191% 197% 159% 130%
Average commission rate paid(4) $0.0541 $0.0546 N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
------------------------------------------------------------
From
Inception
Year Ended October 31, 7/15/94 to
1997 1996 1995 10/31/94
----------- ----------- ------------ -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $17.54 $17.01 $15.23 $15.27
Income from investment operations
Net investment income 0.35 0.35 0.40 0.09
Net realized and unrealized gain (loss) 2.37 1.47 1.80 (0.04)
-------- -------- ------- ----------
Total from investment operations 2.72 1.82 2.20 0.05
-------- -------- ------- ----------
Less distributions
Dividends from net investment income (0.35) (0.36) (0.42) (0.09)
Dividends from net realized gains (1.87) (0.93) -- --
-------- -------- ------- ----------
Total distributions (2.22) (1.29) (0.42) (0.09)
-------- -------- ------- ----------
Change in net asset value 0.50 0.53 1.78 (0.04)
-------- -------- ------- ----------
Net asset value, end of period $18.04 $17.54 $17.01 $15.23
======== ======== ======= ==========
Total return(1) 17.13% 11.24% 14.68% 0.34%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $30,216 $26,209 $16,971 $4,629
Ratio to average net assets of:
Operating expenses 1.73% 1.76% 1.78% 1.65%(2)
Net investment income 1.90% 1.96% 2.46% 2.36%(2)
Portfolio turnover 206% 191% 197% 159%
Average commission rate paid(4) $ 0.0541 $0.0546 N/A N/A
</TABLE>
(1) Maximum sales load is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
(4) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for securities
trades on which commissions are charged. This rate generally does not reflect
mark-ups, mark-downs, or spreads on shares traded on a principal basis.
See Notes to Financial Statements
10
<PAGE>
PHOENIX CONVERTIBLE FUND SERIES
INVESTOR PROFILE
Phoenix Convertible Fund is designed for an investor seeking to supplement
current income, while maintaining the potential for growth.
INVESTMENT ADVISER'S REPORT
For the 12 months ended October 31, 1997, Phoenix Convertible Fund Class A
and B shares posted strong returns of 17.40% and 16.49%, respectively, compared
with a 19.71% return for CS First Boston Convertible Securities Index. All
performance figures assume reinvestment of dividends and exclude the effect of
sales charges.
Several factors contributed positively to performance during this latest
reporting cycle. Our energy technology holdings, particularly Nabors Industries,
Diamond Offshore Drilling and Key Energy, had very strong results. Other
positive contributors included exposure to the cable industry, which performed
well, and some individual stocks, such as Rite Aid and Home Depot. Performance
was held back slightly by our underweighting in the financial services sector
and the Fund's overall conservative profile in a rapidly rising equity market.
OUTLOOK
Our long-term outlook for the stock market remains constructive. Although
valuation levels have risen for most of the market, the economy continues to
grow at a moderate pace, inflation remains benign and the outlook for overall
corporate earnings is still good. Our security selection continues to focus on
large- and mid-cap firms that possess above-average earnings growth potential,
superior management and positive industry fundamentals. We are currently
emphasizing the energy and health-care sectors, which we believe will continue
to provide some of the best long-term growth opportunities. As always, we remain
committed to the Fund's overall objective of providing low-risk equity exposure.
As of October 31, 1997, the Fund's asset allocation was 71% convertible
securities, 13% common stock, and 16% cash equivalents.
11
<PAGE>
Phoenix Convertible Fund Series
- --------------------------------------------------------------------------------
[LINE CHART]
(tabular representation of plot points)
CS First Boston
Convertible S&P 500 Convertible Fund
Securities Index Stock Index* -- Class A
10/31/87 10000 10000 9525
10/31/88 11461 11449 9881
10/31/89 12899 14451 11544
10/31/90 11411 13364 11815
10/31/91 15281 17841 13702
10/31/92 17643 19618 15588
10/31/93 21975 22540 17550
10/31/94 21583 23427 17290
10/31/95 24920 29615 19270
10/31/96 28934 36782 21881
10/31/97 34635 48672 25687
[/LINE CHART]
Average Annual Total Returns for Periods Ending 10/31/97
From Inception
7/15/94 to
1 Year 5 Years 10 Years 10/31/97
- --------------------------------------------------------------------------------
Class A with 4.75% sales charge 11.82% 9.44% 10.02% --
- --------------------------------------------------------------------------------
Class A at net asset value 17.40% 10.51% 10.55% --
- --------------------------------------------------------------------------------
Class B with CDSC 12.49% -- -- 11.67%
- --------------------------------------------------------------------------------
Class B at net asset value 16.49% -- -- 12.14%
- --------------------------------------------------------------------------------
CS First Boston Convertible
Securities Index** 19.71% 14.44% 13.23% 16.00%***
- --------------------------------------------------------------------------------
S&P 500 Stock Index* 32.33% 19.93% 17.15% 26.62%
- --------------------------------------------------------------------------------
This chart assumes an initial investment of $10,000 made on 10/31/87 for Class
A shares. The total return for Class A shares reflects the maximum sales charge
of 4.75% on the initial investment and assumes reinvestment of dividends and
capital gains. Class B share performance will be greater or less than that
shown based on differences in inception date, fees and sales charges. The total
return (from inception 7/15/94) for Class B shares reflects the 5% contingent
deferred sales charge (CDSC), which is applicable on all shares redeemed during
the 1st year after purchase and 4% for all shares redeemed during the 2nd year
after purchase (scaled down to 3%-3rd year, 2%-4th and 5th year and 0%
thereafter). Returns indicate past performance, which is not predictive of
future performance. Investment return and net asset value will fluctuate so
that your shares, when redeemed, may be worth more or less than the original
cost.
*The S&P 500 Stock Index is an unmanaged but commonly used measure of stock
total return performance. The S&P 500 performance does not reflect sales
charges.
**The CS First Boston Convertible Securities Index is an unmanaged but commonly
used index that tracks the returns of 250 to 300 convertible bonds and
preferreds rated B- or better by Standard & Poor's. The index's performance
does not reflect sales charges.
***Index information from 7/31/94 to 10/31/97.
12
<PAGE>
Phoenix Convertible Fund Series
- --------------------------------------------------------------------------------
INVESTMENTS AT OCTOBER 31, 1997
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- -------------
<S> <C> <C> <C>
CONVERTIBLE BONDS--47.8%
Advertising--1.3%
Interpublic Group Cv. 144A
1.80%, 9/16/04 (c) ..................... NR $ 2,500 $ 2,034,375
Omnicom Group, Inc. Cv. 144A
4.25%, 1/3/07 (c) ..................... A- 510 640,050
-----------
2,674,425
-----------
Communications Equipment--0.7%
BBN Corp. Cv. 6%, 4/1/12 .................. B(d) 1,500 1,447,500
-----------
Computers (Software & Services)--3.0%
Adaptec, Inc. Cv. 4.75%,
2/1/04 ................................. NR 2,000 2,297,500
EMC Corp. Cv. 144A 3.25%,
3/15/02 (c) ........................... BB+ 1,000 1,372,500
System Software Association
14%, 9/15/02 ........................... NR 2,750 2,681,250
-----------
6,351,250
-----------
Electrical Equipment--1.9%
Thermo Electron Corp. Cv.
144A 4.25%, 1/1/03 (c) ............... A- 3,500 3,950,625
-----------
Electronics (Instrumentation)--0.9%
Xilinx, Inc. Cv. 144A 5.25%,
11/1/02 (c) ........................... B 1,850 1,803,750
-----------
Health Care (Hospital Management)--1.0%
Tenet Healthcare Cv. 6%,
12/1/05 .............................. B+ 2,075 2,023,125
-----------
Health Care (Long Term Care)--0.8%
Sunrise Assisted Living Cv.
144A 5.50%, 6/15/02 (c) ............... B- 1,500 1,773,750
-----------
Leisuretime (Products)--6.0%
Family Golf Centers, Inc. Cv.
144A 5.75%, 10/15/04 (c) ............... NR 1,000 972,500
Imax Corp. Cv. 5.75%, 4/1/03 ............ NR 2,500 3,271,875
Time Warner, Inc. Cv. 0%,
12/17/12 .............................. BBB- 3,000 1,188,750
Time Warner, Inc. Cv. 0%,
6/22/13 .............................. BBB- 14,635 7,207,738
-----------
12,640,863
-----------
Lodging--Hotels--0.4%
Marriott International, Inc. Cv.
144A 0%, 3/25/11 (c) .................. BBB 1,390 900,025
-----------
Metals Mining--3.7%
Coeur d'Alene Euro Cv. 6%,
6/10/02 .............................. CCC+ 1,000 858,750
Coeur d'Alene Cv. 144A 7.25%,
10/31/05 (c) ........................... NR 6,000 5,475,000
Stillwater Mining Co. Cv. 7%,
5/1/03 ................................. NR 1,500 1,477,500
-----------
7,811,250
-----------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- -------------
Oil (Domestic Integrated)--0.5%
Pennzoil Co. Series US Cv.
4.75%, 10/1/03 ........................ BBB $ 730 $ 1,031,125
-----------
Oil & Gas (Drilling & Equipment)--5.2%
Baker Hughes, Inc. Cv. 0%,
5/5/08 ................................. A 2,100 1,858,500
Halter Marine Group, Inc. Cv.
144A 4.50%, 9/15/04 (c) ............... B+ 2,175 2,745,937
Key Energy Group Cv. 144A
5%, 9/15/04 (c) ........................ NR 2,000 2,037,500
Loews Corp. Cv. 3.125%,
9/15/07 .............................. A+ 2,000 2,277,500
Nabors Industries, Inc. Cv. 5%,
5/15/06 .............................. BBB- 805 1,873,638
-----------
10,793,075
-----------
Oil & Gas (Exploration & Production)--1.3%
Apache Corp. Cv. 144A 6%,
1/15/02 (c) ........................... BBB 2,000 2,750,000
-----------
Professional Services--1.5%
CORESTAFF, Inc. Cv. 2.94%,
8/15/04 .............................. NR 4,000 3,240,000
-----------
Publishing--1.1%
Hollinger, Inc. Yankee Series
US (LYONS) Cv. 0%,
10/5/13 .............................. BB- 6,000 2,280,000
-----------
Publishing (Newspapers)--0.7%
Times Mirror Co. Cv. 144A 0%,
4/15/17 (c) ........................... A 3,500 1,408,750
-----------
Retail (Drug Stores)--2.7%
Rite Aid Corp. Cv. 144A
5.25%, 9/15/02 (c) ..................... BBB 5,175 5,550,187
-----------
Retail (General Merchandise)--6.4%
Home Depot, Inc. Cv. 3.25%,
10/1/01 .............................. A+ 3,125 4,023,437
Office Depot, Inc. Cv. 0%,
11/1/08 .............................. BB- 5,000 3,112,500
Pep Boys Cv. 0%, 9/20/11 .................. BBB 7,775 4,169,344
Saks Holdings, Inc. Cv. 5.50%,
9/15/06 .............................. B 1,250 1,064,062
Sports Authority, Inc. (The) Cv.
144A 5.25%, 9/15/01 (c) ............... B 1,000 923,750
-----------
13,293,093
-----------
Telecommunications (Cellular/Wireless)--1.6%
Itron, Inc. Cv. 6.75%,
3/31/04 .............................. NR 1,000 1,110,000
U.S. Cellular Corp. Cv. 0%,
6/15/15 .............................. BBB- 6,000 2,205,000
-----------
3,315,000
-----------
</TABLE>
See Notes to Financial Statements
13
<PAGE>
Phoenix Convertible Fund Series
- --------------------------------------------------------------------------------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- -------------
Utility--Water--0.9%
Atria Communities, Inc. Cv.
144A 5%, 10/15/02 (c) ......... NR $ 1,000 $ 1,006,250
World Access, Inc. Cv. 144A
4.50%, 10/1/02 (c) ............ CCC+ 1,000 960,000
------------
1,966,250
------------
Waste Management--6.2%
Chemical Waste Management,
Inc. Cv. 0%, 8/16/10 ......... BBB+ 14,150 6,509,000
U.S.A. Waste Services, Inc. Cv.
4%, 2/1/02 .................. BBB- 2,650 2,822,250
WMX Technologies, Inc.
Subordinate Notes Cv. 2%,
1/24/05 ..................... BBB+ 4,485 3,700,125
------------
13,031,375
------------
TOTAL CONVERTIBLE BONDS
(Identified cost $96,840,155)........................... 100,035,418
------------
CONVERTIBLE FOREIGN BONDS--6.8%
Germany--0.6%
Volkswagen Cv. 144A 3%,
1/24/02 (c) .................. A+ 1,000 1,172,500
------------
Ireland--0.8%
Elan International Finance
(LYON) Cv. 0%, 10/16/12 ...... BBB- 1,500 1,629,375
------------
Switzerland--4.4%
Roche Holdings, Inc. Cv. 144A
0%, 5/6/12 (c) ............... NR 11,450 4,980,750
Sandoz Capital BVI Ltd. Cv.
144A 2%, 10/6/02 (c) ......... Aaa(d) 2,830 4,145,950
------------
9,126,700
------------
United Kingdom--1.0%
Grand Metropolitan PLC Cv.
144A 6.50%, 1/31/00 (c) ...... A+ 1,640 2,132,000
------------
TOTAL CONVERTIBLE FOREIGN BONDS
(Identified cost $12,059,638)........................... 14,060,575
------------
SHARES
--------
CONVERTIBLE PREFERRED STOCKS--16.8%
Airlines--1.0%
Trans World Air Cv. Pfd. 8% (b) ............ 72,000 2,106,000
---------
Broadcasting (Television, Radio & Cable)--0.9%
Merrill Lynch & Co. Series Cox
(STRYPES) Cv. Pfd. 6% ..................... 49,100 1,331,837
TCI Pacific Communications Cv. Pfd.
5% ....................................... 5,000 696,875
---------
2,028,712
---------
Computers (Software & Services)--0.4%
Microsoft Corp. Series A Cv. Pfd. $2.196 . 8,500 750,125
---------
SHARES VALUE
--------- -------------
Conglomerates--0.5%
USX Corp. Cv. Pfd. 6.75% ..................... 50,000 $ 1,125,000
-----------
Electric Companies--1.7%
AES Trust I Series A (TECONS) Cv. Pfd.
5.375% .................................... 20,000 1,280,000
Houston Industries, Inc. (ACES) Cv. Pfd.
7% (b) .................................... 40,300 2,206,425
-----------
3,486,425
-----------
Health Care (Diversified)--0.7%
McKesson Corp. Cv. Pfd. 144A $2.50 (c) . 20,500 1,566,969
-----------
Insurance (Multi-Line)--1.9%
St. Paul Capital LLC (MIPS) Cv. Pfd. 6% ...... 56,000 3,920,000
-----------
Metals Mining--0.8%
Coeur d'Alene Cv. Pfd. 7% ..................... 35,000 549,063
Timet Capital Trust I Cv. Pfd. 144A
6.625% (c) ................................. 20,000 1,040,000
-----------
1,589,063
-----------
Natural Gas--0.5%
MCN Energy Group, Inc. (PRIDES) Cv.
Pfd. 8.75% (b) ........................... 34,900 1,057,906
-----------
Oil & Gas (Drilling & Equipment)--1.0%
EVI, Inc. Cv. Pfd. 144A 5%,
11/1/27 (c) .............................. 42,000 2,115,750
-----------
Oil (Domestic Integrated)--4.2%
Lomak Petroleum Cv. Pfd. 144A 5.75% (c). 50,000 2,531,250
Occidental Petroleum Corp. Series 1993
Cv. Pfd. 144A $3.875 (c) .................. 101,000 6,274,625
-----------
8,805,875
-----------
Savings & Loan Companies--0.7%
Ahmanson (H. F.) & Co. Series D Cv.
Pfd. 6% .................................... 12,900 1,560,900
-----------
Telecommunications (Cellular/wireless)--1.9%
Airtouch Communication Series C Cv.
Pfd. 4.25% (b) ........................... 65,000 3,900,000
-----------
Telephone--0.6%
US West, Inc. Series D Cv. Pfd. 4.50% ......... 21,000 1,204,875
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $30,644,298).............................. 35,217,600
-----------
COMMON STOCKS--12.2%
Communications Equipment--0.4%
Ciena Corp. (b) .............................. 19,000 1,045,000
-----------
Electronics (Instrumentation)--1.7%
Perkin Elmer Corp. ........................... 58,500 3,656,267
-----------
Health Care (Diversified)--0.5%
Warner-Lambert Co. ........................... 7,300 1,045,269
-----------
Health Care (Drugs--Major Pharmaceuticals)--1.5%
Lilly (Eli) & Co. ........................... 23,200 1,551,500
Pfizer, Inc. ................................. 21,600 1,528,200
-----------
3,079,700
-----------
See Notes to Financial Statements
14
<PAGE>
Phoenix Convertible Fund Series
- --------------------------------------------------------------------------------
SHARES VALUE
-------- -------------
Metals Mining--1.0%
NS Group, Inc. (b) ..................... 36,500 $ 976,375
Stillwater Mining Co. (b) ............... 49,300 1,022,975
------------
1,999,350
------------
Natural Gas--1.3%
El Paso Natural Gas Co. .................. 46,400 2,781,140
------------
Oil (Domestic Integrated)--0.8%
Forcenergy, Inc. (b) ..................... 12,100 394,763
Houston Exploration Co. (The) (b) ...... 29,000 703,250
Noble Affiliates, Inc. .................. 12,500 513,281
------------
1,611,294
------------
Oil & Gas (Drilling & Equipment)--1.5%
BJ Services Co. (b) ..................... 12,600 1,067,850
Noble Drilling Corp. (b) ............... 30,393 1,080,851
Rowan Companies, Inc. (b) ............... 26,800 1,041,850
------------
3,190,551
------------
Oil & Gas (Exploration & Production)--1.3%
Anadarko Petroleum Corp. ............... 9,000 659,250
Newfield Exploration Co. (b) ............ 15,300 415,013
United Meridian Corp. (b) ............... 46,300 1,571,306
------------
2,645,569
------------
Retail (Drug Stores)--1.1%
Rite Aid Corp. ........................... 39,297 2,333,259
------------
Telecommunications (Long Distance)--1.1%
AT&T Corp. .............................. 45,400 2,221,768
------------
TOTAL COMMON STOCKS
(Identified cost $23,630,452)........................ 25,609,167
------------
FOREIGN COMMON STOCKS--0.5%
Oil & Gas (Drilling & Equipment)--0.5%
Bouygues Offshore SA ADR (France) ...... 44,800 1,086,400
------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $1,154,663) ........................ 1,086,400
------------
TOTAL LONG-TERM INVESTMENTS--84.1%
(Identified cost $164,329,206) ..................... 176,009,160
------------
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
----------- -------- -----------------
SHORT-TERM OBLIGATIONS--11.5%
Commercial Paper--11.5%
Ciesco L.P. 5.70%, 11/3/97 ......... A-1+ $1,005 $ 1,004,682
Preferred Receivables Funding
Corp. 5.55%, 11/4/97 ............ A-1 3,425 3,423,416
Schering Corp. 5.52%, 11/4/97 .A-1+ 3,240 3,238,510
Asset Securitization Cooperative
Corp. 5.60%, 11/6/97 ............ A-1+ 500 499,611
Exxon Imperial U.S., Inc.
5.53%, 11/7/97 .................. A-1+ 3,380 3,376,885
General Electric Capital Corp.
5.53%, 11/17/97 ............... A-1+ 3,365 3,356,730
Kimberly-Clark Corp. 5.48%,
11/20/97 ........................ A-1+ 3,400 3,390,166
Abbott Laboratories 5.50%,
11/26/97 ........................ A-1+ 1,200 1,195,417
DuPont (E.I.) de Nemours &
Co. 5.50%, 12/2/97 ............ A-1+ 1,100 1,094,639
Preferred Receivables Funding
Corp. 5.55%, 12/8/97 ............ A-1 1,115 1,108,512
Preferred Receivables Funding
Corp. 5.55%, 12/18/97 ......... A-1 675 670,109
Corporate Receivables Corp.
5.58%, 1/28/98 .................. A-1 1,590 1,568,805
--------------
23,927,482
--------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $23,927,267) ........................ 23,927,482
--------------
TOTAL INVESTMENTS--95.6%
(Identified cost $188,256,473)........................ 199,936,642(a)
Cash and receivables, less liabilities--4.4% ......... 9,296,371
--------------
NET ASSETS--100.0% .................................... $209,233,013
=============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $16,055,557 and gross
depreciation of $4,383,965 for income tax purposes. At October 31, 1997,
the aggregate cost of securities for federal income tax purposes was
$188,265,050.
(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 October 31,
1997, these securities amounted to a value of $62,264,743 or 29.8% of net
assets.
(d) As rated by Moody's.
See Notes to Financial Statements
15
<PAGE>
Phoenix Convertible Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
Assets
Investment securities at value
(Identified cost $188,256,473) $199,936,642
Short-term investments held as collateral for loaned
securities 4,200,000
Cash 15,168
Receivables
Investment securities sold 10,387,476
Fund shares sold 1,047,115
Dividends and interest 771,822
------------
Total assets 216,358,223
------------
Liabilities
Payables
Collateral on securities loaned 4,200,000
Investment securities purchased 2,341,734
Fund shares repurchased 317,345
Investment advisory fee 119,007
Distribution fee 51,008
Transfer agent fee 34,580
Financial agent fee 9,192
Trustees' fee 3,636
Accrued expenses 48,708
------------
Total liabilities 7,125,210
------------
Net Assets $209,233,013
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $171,077,545
Undistributed net investment income 422,034
Accumulated net realized gain 26,053,265
Net unrealized appreciation 11,680,169
------------
Net Assets $209,233,013
============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $201,169,632) 9,808,361
Net asset value per share $ 20.51
Offering price per share
$20.51/(1-4.75%) $ 21.53
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $8,063,381) 394,604
Net asset value and offering price per share $ 20.43
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997
Investment Income
Interest $ 6,784,461
Dividends 2,038,259
Security lending 33,035
-----------
Total investment income 8,855,755
-----------
Expenses
Investment advisory fee 1,361,661
Distribution fee--Class A 505,949
Distribution fee--Class B 71,069
Financial agent fee 98,407
Transfer agent 240,071
Printing 38,324
Custodian 21,258
Professional 19,969
Trustees 19,368
Registration 15,618
Miscellaneous 10,492
-----------
Total expenses 2,402,186
-----------
Net investment income 6,453,569
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 26,029,187
Net realized gain on foreign currency transactions 1,395
Net change in unrealized appreciation (depreciation) on
investments 1,273,001
-----------
Net gain on investments 27,303,583
-----------
Net increase in net assets resulting from
operations $33,757,152
===========
See Notes to Financial Statements
16
<PAGE>
Phoenix Convertible Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1997 October 31, 1996
------------------ -----------------
<S> <C> <C>
From Operations
Net investment income $ 6,453,569 $ 8,303,695
Net realized gain 26,030,582 13,764,508
Net change in unrealized appreciation (depreciation) 1,273,001 6,532,321
------------- -------------
Increase in net assets resulting from operations 33,757,152 28,600,524
------------- -------------
From Distributions to Shareholders
Net investment income--Class A (6,482,244) (8,803,953)
Net investment income--Class B (177,737) (164,704)
Net realized gains--Class A (13,252,457) (6,839,551)
Net realized gains--Class B (398,476) (129,752)
------------- -------------
Decrease in net assets from distributions to shareholders (20,310,914) (15,937,960)
------------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (701,929 and 906,746 shares, respectively) 13,664,448 16,946,702
Net asset value of shares issued from reinvestment of distributions (854,224 and
703,569 shares, respectively) 16,093,284 12,908,037
Cost of shares repurchased (2,904,061 and 2,489,652 shares, respectively) (56,421,242) (46,749,267)
------------- -------------
Total (26,663,510) (16,894,528)
------------- -------------
Class B
Proceeds from sales of shares (131,986 and 125,709 shares, respectively) 2,562,597 2,344,422
Net asset value of shares issued from reinvestment of distributions (21,826 and
11,529 shares, respectively) 410,540 211,321
Cost of shares repurchased (68,900 and 31,996 shares, respectively) (1,343,541) (602,797)
------------- -------------
Total 1,629,596 1,952,946
------------- -------------
Decrease in net assets from share transactions (25,033,914) (14,941,582)
------------- -------------
Net decrease in net assets (11,587,676) (2,279,018)
Net Assets
Beginning of period 220,820,689 223,099,707
------------- -------------
End of period (including undistributed net investment income of
$422,034 and $657,595, respectively) $ 209,233,013 $ 220,820,689
============= =============
</TABLE>
See Notes to Financial Statements
17
<PAGE>
Phoenix Convertible Fund Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------------------
Year Ended October 31,
1997 1996 1995 1994 1993
--------------- --------------- -------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.26 $18.23 $17.56 $19.34 $18.86
Income from investment operations
Net investment income 0.61(4) 0.70(4) 0.87 0.78 0.68
Net realized and unrealized gain (loss) 2.54 1.68 1.04 (1.06) 1.53
----------- ----------- ---------- --------- ----------
Total from investment operations 3.15 2.38 1.91 (0.28) 2.21
----------- ----------- ---------- --------- ----------
Less distributions
Dividends from net investment income (0.64) (0.77) (1.05) (0.69) (0.73)
Dividends from net realized gains (1.26) (0.58) (0.19) (0.81) (1.00)
----------- ----------- ---------- --------- ----------
Total distributions (1.90) (1.35) (1.24) (1.50) (1.73)
----------- ----------- ---------- --------- ----------
Change in net asset value 1.25 1.03 0.67 (1.78) 0.48
----------- ----------- ---------- --------- ----------
Net asset value, end of period $20.51 $19.26 $18.23 $17.56 $19.34
============ ============ ========== ========= ==========
Total return(1) 17.40% 13.55% 11.45% (1.48)% 12.58%
Ratios/supplemental data:
Net assets, end of period (thousands) $201,170 $214,874 $219,384 $226,294 $252,072
Ratio to average net assets of:
Operating expenses 1.12% 1.17% 1.18% 1.14% 1.15%
Net investment income 3.11% 3.75% 4.78% 4.27% 3.70%
Portfolio turnover 152% 141% 79% 91% 94%
Average commission rate paid(5) $0.0661 $0.0619 N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
-----------------------------------------------------------------------
From
Inception
Year Ended October 31, 7/15/94 to
1997 1996 1995 10/31/94
--------------- --------------- --------------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $19.20 $18.17 $17.55 $17.59
Income from investment operations
Net investment income 0.46(4) 0.55(4) 0.70(4) 0.15
Net realized and unrealized gain (loss) 2.52 1.68 1.07 (0.06)
----------- ----------- ----------- ---------
Total from investment operations 2.98 2.23 1.77 0.09
----------- ---------- ----------- ---------
Less distributions
Dividends from net investment income (0.49) (0.62) (0.96) (0.13)
Dividends from net realized gains (1.26) (0.58) (0.19) --
----------- ----------- ----------- ---------
Total distributions (1.75) (1.20) (1.15) (0.13)
----------- ----------- ----------- ---------
Change in net asset value 1.23 1.03 0.62 (0.04)
----------- ----------- ----------- ---------
Net asset value, end of period $20.43 $19.20 $18.17 $17.55
============ ============ =========== =========
Total return(1) 16.49% 12.72% 10.59% 0.49%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $8,063 $5,947 $3,715 $856
Ratio to average net assets of:
Operating expenses 1.87% 1.92% 1.95% 1.83%(2)
Net investment income 2.33% 2.95% 3.92% 3.29%(2)
Portfolio turnover 152% 141% 79% 91%
Average commission rate paid(5) $0.0661 $0.0619 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) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for securities
trades on which commissions are charged. This rate generally does not
reflect mark-ups, mark-downs, or spreads on shares traded on a principal
basis.
See Notes to Financial Statements
18
<PAGE>
PHOENIX GROWTH FUND SERIES
INVESTOR PROFILE
Phoenix Growth Fund is designed for investors seeking long-term capital
appreciation.
INVESTMENT ADVISER'S REPORT
Phoenix Growth Fund provided strong returns over the last 12 months. For
the fiscal year ended October 31, 1997, Class A shares returned 24.81% and Class
B shares earned 23.89%. For the same reporting period, the Standard & Poor's 500
Composite Stock Index returned 32.33%, and the average return for 799 growth
funds was 27.28%, according to Lipper Analytical Services, Inc. All performance
figures assume reinvestment of dividends and exclude the effect of sales
charges.
Strong stock selection in the energy, consumer cyclical and consumer
staples sectors contributed to performance, particularly positions in Diamond
Offshore Drilling, Philips Electronics, Liberty Media and Cisco Systems.
However, some of our technology and capital goods holdings underperformed
relative to the market. OUTLOOK
The combination of moderate economic growth, low inflation, falling
interest rates and good profit growth should continue to provide a positive
environment for U.S. equities. Our focus continues to be on large- and
mid-capitalization companies with above-average earnings growth potential,
strong management capabilities and global markets.
The Fund is overweighted in the health-care and financial services sectors,
which are expected to provide good long-term growth opportunities. We are also
overweighted in fast growing energy services companies, which we believe are in
the early stages of a sustained secular upswing.
19
<PAGE>
Phoenix Growth Fund Series
- --------------------------------------------------------------------------------
[LINE CHART]
(tabular representation of plot points)
10/31/87 10000 9525
10/31/88 11449 10145
10/31/89 14451 12230
10/31/90 13364 12696
10/31/91 17841 16628
10/31/92 19618 17784
10/31/93 22540 19064
10/31/94 23427 19457
10/31/95 29615 24109
10/31/96 36782 28048
10/31/97 48672 35007
[/LINE CHART]
Average Annual Total Returns for Periods Ending 10/31/97
From Inception
7/15/94 to
1 Year 5 Years 10 Years 10/31/97
- --------------------------------------------------------------------------------
Class A with 4.75% sales charge 18.88% 13.39% 13.40% --
- --------------------------------------------------------------------------------
Class A at net asset value 24.81% 14.51% 13.95% --
- --------------------------------------------------------------------------------
Class B with CDSC 19.89% -- -- 19.53%
- --------------------------------------------------------------------------------
Class B at net asset value 23.89% -- -- 19.93%
- --------------------------------------------------------------------------------
S&P 500 Stock Index* 32.33% 19.93% 17.15% 26.67%
- --------------------------------------------------------------------------------
This chart assumes an initial gross investment of $10,000 made on 10/31/87 for
Class A shares. The total return for Class A shares reflects the maximum sales
charge of 4.75% on the initial investment and assumes reinvestment of dividends
and capital gains. Class B share performance will be greater or less than that
shown based on differences in inception dates, fees and sales charges. The
total return (since inception 7/15/94) for Class B shares reflects the 5%
contingent deferred sales charge (CDSC), which is applicable on all shares
redeemed during the 1st year after purchase and 4% for all shares redeemed
during the 2nd year after purchase (scaled down to 3%--3rd year; 2%--4th and
5th year and 0% thereafter). Returns indicate past performance, which is not
predictive of future performance. Investment return and net asset value will
fluctuate, so that your shares, when redeemed, may be worth more or less than
the original cost.
*The S&P 500 Stock Index is an unmanaged but commonly used measure of common
stock total return performance. The S&P 500's performance does not reflect
sales charges.
20
<PAGE>
Phoenix Growth Fund Series
- --------------------------------------------------------------------------------
INVESTMENTS AT OCTOBER 31, 1997
SHARES VALUE
----------- --------------
COMMON STOCKS--83.5%
Air Freight--0.9%
Federal Express Corp. (b) ...... 340,000 $ 22,695,000
------------
Banks (Major Regional)--5.5%
AmSouth Bancorporation ......... 145,000 6,969,062
BankBoston Corp. ............... 310,000 25,129,375
Compass Bankshares, Inc. ...... 185,100 6,975,956
Fleet Financial Group, Inc. ... 385,000 24,760,313
Mellon Bank Corp. ............... 800,000 41,250,000
Nationsbank Corp. ............... 625,000 37,421,875
------------
142,506,581
------------
Banks (Money Center)--2.9%
BankAmerica Corp. ............... 671,900 48,040,850
Citicorp ........................ 220,000 27,513,750
------------
75,554,600
------------
Broadcasting (Televison, Radio, &
Cable)--0.2%
Chancellor Media Corp. (b) ...... 105,100 5,767,363
------------
Communications Equipment--1.5%
Ciena Corp. (b) ............... 250,000 13,750,000
Lucent Technologies, Inc. ...... 317,100 26,140,931
------------
39,890,931
------------
Computers (Hardware)--4.2%
International Business Machines 1,100,000 107,868,750
------------
Corp.
Computers (Networking)--1.0%
Cisco Systems, Inc. (b) ......... 325,000 26,660,140
------------
Computers (Peripherals)--1.5%
EMC Corp. (b) .................. 700,000 39,200,000
------------
Computers (Software &
Services)--2.7%
Adaptec, Inc. (b) ............... 600,000 29,062,500
BMC Software, Inc. (b) ......... 400,000 24,150,000
Compuware Corp. (b) ............ 225,000 14,878,125
Edwards (J.D.) & Co. (b) ...... 64,500 2,193,000
------------
70,283,625
------------
Chemicals--1.3%
Monsanto Co. .................. 758,400 32,421,600
------------
Chemicals (Specialty)--0.6%
Solutia, Inc. (b) ............... 650,000 14,381,250
------------
Distributors (Food & Health)--1.7%
Cardinal Health, Inc. ......... 575,000 42,693,750
------------
Electrical Equipment--2.0%
General Electric Co. ............ 762,300 49,215,994
Honeywell, Inc. ............... 35,100 2,388,994
------------
51,604,988
------------
Electronics (Instrumentation)--0.5%
Linear Technology Corp. ......... 190,000 11,946,250
------------
Electronics (Semiconductors)--2.6%
National Semiconductor Corp. (b) 1,050,000 37,800,000
Texas Instruments, Inc. ......... 270,000 28,805,625
------------
66,605,625
------------
SHARES VALUE
----------- --------------
Entertainment--1.9%
Tele-Comm Liberty Media Group (b) ....1,400,000 . $ 48,737,500
------------
Financial (Diversified)--2.4%
American Express Co. ............ 505,000 39,390,000
Franklin Resources, Inc. ...... 160,000 14,380,000
Price (T. Rowe) Associates ...... 135,200 8,957,000
------------
62,727,000
------------
Health Care (Diversified)--1.9%
Bristol-Myers Squibb Co. ...... 550,000 48,262,500
------------
Health Care (Drugs--Major
Pharmaceuticals)--7.2%
Lilly (Eli) & Co. ............... 668,400 44,699,250
Merck & Co., Inc. ............... 500,000 44,625,000
Pfizer, Inc. .................. 1,200,000 84,900,000
Watson Pharmaceuticals, Inc. (b) 400,000 12,700,000
------------
186,924,250
------------
Health Care (Hospital
Management)--1.2%
HBO & Co. ..................... 720,000 31,320,000
------------
Health Care (Medical Products &
Supplies)--2.7%
Guidant Corp. .................. 774,300 44,522,250
Medtronic, Inc. ............... 600,000 26,100,000
------------
70,622,250
------------
Household Furn. & Appliances--0.5%
Sunbeam Corp., Inc. ............ 300,000 13,593,750
------------
Household Products
(Non-Durables)--1.0%
Colgate-Palmolive Co. ......... 385,000 24,928,750
------------
Insurance (Multi-Line)--2.9%
Hartford Financial Services Group, 375,000 30,375,000
Inc.
Travelers Group, Inc. ......... 625,000 43,750,000
------------
74,125,000
------------
Insurance (Property-Casualty)--1.8%
Allstate Corp. .................. 550,000 45,615,625
------------
Investment Banking/Brokerage--0.9%
Merrill Lynch & Co., Inc. ...... 360,000 24,345,000
------------
Machinery (Diversified)--1.2%
Deere & Co. ..................... 590,000 31,048,750
------------
Manufacturing (Diversified)--1.5%
Tyco International Ltd. ......... 1,000,000 37,750,000
------------
Oil (Domestic Integrated)--1.5%
Tosco Corp. ..................... 1,140,000 37,620,000
------------
Oil & Gas (Drilling & Equipment)--7.9%
BJ Services Co. (b) ............ 155,000 13,136,250
Diamond Offshore Drilling, Inc. 640,000 39,840,000
Halliburton Co. ............... 800,000 47,700,000
Nabors Industries, Inc. (b) ... 425,000 17,478,125
Schlumberger Ltd. ............... 500,000 43,750,000
Transocean Offshore, Inc. ...... 800,000 43,200,000
------------
205,104,375
------------
Oil & Gas (Refining &
Marketing)--1.1%
Santa Fe International Corp. (b) 560,000 27,545,000
------------
See Notes to Financial Statements
21
<PAGE>
Phoenix Growth Fund Series
- --------------------------------------------------------------------------------
SHARES VALUE
----------- ---------------
Paper & Forest Products--0.9%
Fort James Corp. ..................... 617,000 $ 24,487,188
--------------
Personal Care--1.7%
Gillette Co. ........................ 500,000 44,531,250
--------------
Retail (Building Supplies)--1.7%
Home Depot, Inc. ..................... 780,000 43,387,500
--------------
Retail (Drug Stores)--3.3%
CVS Corp. ........................... 700,000 42,918,750
Rite Aid Corp. ........................ 700,000 41,562,500
--------------
84,481,250
--------------
Retail (Food Chains)--2.2%
Safeway, Inc. (b) ..................... 1,000,000 58,125,000
--------------
Retail (General Merchandise)--1.6%
Borders Group, Inc. (b) ............... 625,000 16,210,938
Staples, Inc. (b) ..................... 1,000,000 26,250,000
--------------
42,460,938
--------------
Telecommunications
(Cellular/Wireless)--2.7%
AirTouch Communications, Inc. (b) ... 1,800,000 69,525,000
--------------
Tobacco--2.7%
Philip Morris Companies, Inc. ......... 1,750,000 69,343,750
--------------
TOTAL COMMON STOCKS
(Identified cost $1,879,996,673) ..................... 2,156,692,079
--------------
FOREIGN COMMON STOCKS--10.6%
Banks (Major Regional)--0.3%
Banco Rio de La Plata SA ADR
(Argentina) (b) ..................... 825,000 8,662,500
--------------
Biotechnology--2.6%
Elan PLC Sponsored ADR (Ireland) (b) 221,200 11,032,350
SmithKline Beecham PLC Sponsored
ADR (United Kingdom) (b) ............ 1,200,000 57,150,000
--------------
68,182,350
--------------
Household Furn. & Appliances--4.5%
Philips Electronics NV ADR NY
Registered (Netherlands) ............ 1,500,000 117,562,500
--------------
Oil (Domestic Integrated)--0.9%
YPF Sociedad Anonima Sponsored ADR
Class D (Argentina) ............... 735,000 23,520,000
--------------
Oil (International Integrated)--2.3%
Elf Aquitane Sponsored ADR (France) (b) 950,000 58,662,500
--------------
VALUE
---------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $181,238,257) $ 276,589,850
--------------
TOTAL LONG-TERM INVESTMENTS--94.1%
(Identified cost $2,061,234,930) 2,433,281,929
--------------
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000)
------------- ---------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--3.9%
Commercial Paper--3.9%
Associates Corp. of North
America 5.73%, 11/3/97 ......... A-1+ $12,250 12,246,100
Deutsche Bank Financial, Inc.
5.51%, 11/3/97 .................. A-1+ 1,575 1,574,518
Merrill Lynch & Co., Inc.
5.63%, 11/3/97 .................. A-1+ 12,000 11,996,246
Wal-Mart Stores, Inc. 5.55%,
11/4/97 ........................ A-1+ 19,476 19,466,992
Deutsche Bank Financial, Inc.
5.57%, 11/5/97 .................. A-1+ 24,105 24,090,082
AT&T Corp. 5.60%, 11/6/97 ......... A-1+ 20,000 19,984,444
AlliedSignal, Inc. 5.50%,
11/10/97 ........................ A-1 400 399,450
Corporate Asset Funding Co.,
Inc. 5.52%, 11/12/97 ............ A-1+ 1,250 1,247,720
Kellogg Co. 5.56%, 11/21/97 ...... A-1+ 8,000 7,975,289
General Electric Capital Corp.
5.58%, 11/26/97 ............... A-1+ 850 846,623
Campbell Soup Co. 5.52%,
1/9/98 ........................ A-1+ 190 188,042
Beta Finance, Inc. 5.58%,
3/12/98 ........................ A-1+ 1,180 1,156,530
----------
101,172,036
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $101,171,750).............................. 101,172,036
-----------
TOTAL INVESTMENTS--98.0%
(Identified cost $2,162,406,680) ........................... 2,534,453,965(a)
Cash and receivables, less liabilities--2.0% ............... 51,857,022
----------------
NET ASSETS--100.0% ......................................... $ 2,586,310,987
================
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $427,589,665 and gross
depreciation of $56,102,666 for income tax purposes. At October 31, 1997,
the aggregate cost of securities for federal income tax purposes was
$2,162,966,966.
(b) Non-income producing.
22 See Notes to Financial Statements
<PAGE>
Phoenix Growth Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $2,162,406,680) $2,534,453,965
Short-term investments held as collateral for loaned
securities 13,308,400
Cash 3,377
Receivables
Investment securities sold 64,495,306
Fund shares sold 2,418,914
Dividends and interest 1,899,387
--------------
Total assets 2,616,579,349
--------------
Liabilities
Payables
Collateral on securities loaned 13,308,400
Investment securities purchased 10,953,876
Fund shares repurchased 3,049,196
Investment advisory fee 1,494,692
Distribution fee 615,359
Transfer agent fee 409,890
Financial agent fee 44,969
Trustees' fee 3,636
Accrued expenses 388,344
--------------
Total liabilities 30,268,362
--------------
Net Assets $2,586,310,987
==============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $1,716,018,070
Accumulated net realized gain 498,245,632
Net unrealized appreciation 372,047,285
--------------
Net Assets $2,586,310,987
==============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,518,288,840) 90,493,451
Net asset value per share $ 27.83
Offering price per share
$27.83/(1-4.75%) $ 29.22
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $68,022,147) 2,472,870
Net asset value and offering price per share $ 27.51
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997
<TABLE>
<S> <C>
Investment Income
Dividends $ 27,254,978
Interest 13,218,976
Security lending 212,693
------------
Total investment income 40,686,647
------------
Expenses
Investment advisory fee 16,439,785
Distribution fee--Class A 6,077,417
Distribution fee--Class B 589,972
Financial agent fee 540,063
Transfer agent 3,475,347
Printing 436,266
Custodian 142,661
Registration 44,577
Professional 35,805
Trustees 19,652
Miscellaneous 56,974
------------
Total expenses 27,858,519
------------
Net investment income 12,828,128
------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 499,375,470
Net realized loss on foreign currency transactions (88,868)
Net change in unrealized appreciation (depreciation) on
investments 37,069,225
------------
Net gain on investments 536,355,827
------------
Net increase in net assets resulting from
operations $549,183,955
============
</TABLE>
See Notes to Financial Statements
23
<PAGE>
Phoenix Growth Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1997 October 31, 1996
------------------ -----------------
<S> <C> <C>
From Operations
Net investment income $ 12,828,128 $ 18,992,565
Net realized gain 499,286,602 403,021,799
Net change in unrealized appreciation (depreciation) 37,069,225 (60,960,282)
-------------- --------------
Increase in net assets resulting from operations 549,183,955 361,054,082
-------------- --------------
From Distributions to Shareholders
Net investment income--Class A (17,472,939) (22,644,345)
Net investment income--Class B (64,123) (98,685)
Net realized gains--Class A (395,993,712) (149,324,628)
Net realized gains--Class B (8,267,051) (1,479,427)
-------------- --------------
Decrease in net assets from distributions to shareholders (421,797,825) (173,547,085)
-------------- --------------
From Share Transactions
Class A
Proceeds from sales of shares (10,576,129 and 9,835,907 shares, respectively) 270,447,275 250,496,105
Net asset value of shares issued from reinvestment of distributions
(16,237,740 and 6,641,514 shares, respectively) 381,717,419 158,927,977
Cost of shares repurchased (23,676,500 and 21,426,723 shares, respectively) (604,530,141) (546,897,194)
-------------- --------------
Total 47,634,553 (137,473,112)
-------------- --------------
Class B
Proceeds from sales of shares (938,817 and 1,000,869 shares, respectively) 23,549,010 25,339,947
Net asset value of shares issued from reinvestment of distributions
(325,555 and 59,359 shares, respectively) 7,574,359 1,409,232
Cost of shares repurchased (493,546 and 171,122 shares, respectively) (12,629,905) (4,348,366)
-------------- --------------
Total 18,493,464 22,400,813
-------------- --------------
Increase (decrease) in net assets from share transactions 66,128,017 (115,072,299)
-------------- --------------
Net increase in net assets 193,514,147 72,434,698
Net Assets
Beginning of period 2,392,796,840 2,320,362,142
-------------- --------------
End of period (including undistributed net investment income of $0 and
$4,797,802, respectively) $2,586,310,987 $2,392,796,840
============== ==============
</TABLE>
24 See Notes to Financial Statements
<PAGE>
Phoenix Growth Fund Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
---------------------------------------
Year Ended October 31,
1997 1996
------------------- -------------------
<S> <C> <C>
Net asset value, beginning of period $ 26.87 $ 24.92
Income from investment operations(5)
Net investment income 0.14 (4) 0.20 (4)
Net realized and unrealized gain 5.62 3.63
-------------- --------------
Total from investment operations 5.76 3.83
-------------- --------------
Less distributions
Dividends from net investment income ( 0.21) ( 0.25)
Dividends from net realized gains ( 4.59) ( 1.63)
-------------- --------------
Total distributions ( 4.80) ( 1.88)
-------------- --------------
Change in net asset value 0.96 1.95
-------------- --------------
Net asset value, end of period $ 27.83 $ 26.87
============== ==============
Total return(1) 24.81 % 16.34 %
Ratios/supplemental data:
Net assets, end of period (thousands) $2,518,289 $2,347,471
Ratio to average net assets of:
Operating expenses 1.10 % 1.17 %
Net investment income 0.53 % 0.80 %
Portfolio turnover 196% 116%
Average commission rate paid(6) $ 0.0518 $ 0.0534
<CAPTION>
1995 1994 1993
---------------- ---------------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 21.24 $ 21.53 $ 20.76
Income from investment operations(5)
Net investment income 0.26 0.26 0.32
Net realized and unrealized gain 4.53 0.17 1.15
------------ ------------ ------------
Total from investment operations 4.79 0.43 1.47
------------ ------------ ------------
Less distributions
Dividends from net investment income (0.30) (0.24) (0.32)
Dividends from net realized gains (0.81) (0.48) (0.38)
------------ ------------ ------------
Total distributions (1.11) (0.72) (0.70)
------------ ------------ ------------
Change in net asset value 3.68 (0.29) 0.77
------------ ------------ ------------
Net asset value, end of period $ 24.92 $ 21.24 $ 21.53
============ ============ ============
Total return(1) 23.91% 2.06% 7.20%
Ratios/supplemental data:
Net assets, end of period (thousands) $2,300,251 $2,140,458 $2,563,442
Ratio to average net assets of:
Operating expenses 1.20% 1.19% 1.18%
Net investment income 0.92% 1.22% 1.55%
Portfolio turnover 109% 118% 176%
Average commission rate paid(6) N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
--------------------------------------------------------------------
From
Inception
Year Ended October 31, 7/15/94 to
1997 1996 1995 10/31/94
------------------ ------------ ------------ -----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 26.63 $24.74 $ 21.19 $ 20.48
Income from investment operations(5)
Net investment income (loss) (0.06) (4) --(4) --(4) 0.01
Net realized and unrealized gain 5.57 3.61 4.60 0.70
--------- --------- --------- ---------
Total from investment operations 5.51 3.61 4.60 0.71
--------- --------- --------- ---------
Less distributions
Dividends from net investment income ( 0.04) ( 0.09) (0.24) --
Dividends from net realized gains ( 4.59) ( 1.63) (0.81) --
--------- --------- --------- ---------
Total distributions ( 4.63) ( 1.72) (1.05) --
--------- --------- --------- ---------
Change in net asset value 0.88 1.89 3.55 0.71
--------- --------- --------- ---------
Net asset value, end of period $ 27.51 $26.63 $ 24.74 $ 21.19
========= ========= ========= =========
Total return(1) 23.89 % 15.48 % 23.02% 3.47%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $ 68,022 $ 45,326 $20,111 $ 2,966
Ratio to average net assets of:
Operating expenses 1.85 % 1.93 % 1.97% 1.87%(2)
Net investment income ( 0.25 %) 0.01 % 0.01% 0.32%(2)
Portfolio turnover 196% 116% 109% 118%
Average commission rate paid(6) $ 0.0518 $ 0.0534 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.
(6) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for securities
trades on which commissions are charged. This rate generally does not
reflect mark-ups, mark-downs, or spreads on shares traded on a principal
basis.
See Notes to Financial Statements
25
<PAGE>
PHOENIX AGGRESSIVE GROWTH FUND SERIES
INVESTOR PROFILE
Phoenix Aggressive Growth Fund is designed for long-term investors willing
to assume above-average risk in return for above-average capital growth
potential.
INVESTMENT ADVISER'S REPORT
Phoenix Aggressive Growth Fund posted double-digit returns over this
latest reporting cycle. For the 12 months ended October 31, 1997, Class A
shares returned 19.67% and
Class B shares earned 18.70%. During the same period, the Russell 2000 Growth
Index returned 21.17%. All performance figures assume reinvestment of dividends
and exclude the effect of sales charges.
Over reasonably long time frames, small and mid-sized companies are
generally able to achieve more rapid growth in sales and net income than
larger, well-established companies. We believe that above-average growth leads
to above-average stock market performance over time. The Russell 2000 Growth
Index is an unmanaged index of companies with characteristics that are more
representative of those the Fund favors than is the S&P 500 Index. As a result,
the Fund's benchmark has been changed from the S&P 500 Index to the Russell
2000 Growth Index.
Over the last year, we have experienced significant swings in world equity
markets. The U.S. market was clearly driven by large-capitalization stocks in
the first six months of the fiscal year. This trend began to slow, allowing our
holdings to post good gains in the past six months.
The Fund has focused on mid-cap stocks, which offer more opportunities for
thematic investing, higher sales and earnings growth rates and more attractive
valuations compared with large-cap stocks. Moreover, mid-cap stocks have less
international earnings exposure than large- cap multinationals, which should
help insulate them against international earnings disappoint-ments given our
concern over ongoing problems in Asia and South America.
Performance was helped by our Energy Technology theme, which is
capitalizing on rising global energy demand. This theme represents companies
that provide productivity-enhancing solutions to the world's exploration and
production companies. Internet Commerce Ignition, a new theme, represents
companies benefiting from the explosive growth of the number of people and
businesses utilizing the Internet for retailing, advertising and
business-to-business commerce. Unfortunately, the Fund's performance was
hindered by its technology and consumer cyclical holdings.
OUTLOOK
We believe the Fund is well-positioned for the current investment climate,
which is characterized by worries of the Asian contagion. Our long-term outlook
remains constructive. Although valuation levels have risen for most of the
market, the economy continues to grow, inflation remains benign and the outlook
for overall corporate earnings is still positive. Our driving investment themes
should serve us well in this climate. As of October 31, the Fund's asset
allocation mix was 96% equities and 4% cash equivalents.
26
<PAGE>
Phoenix Aggressive Growth Fund Series
- --------------------------------------------------------------------------------
[LINE CHART]
(tabular representation of plot points)
S&P 500 Aggressive Russell 2000
Stock Index* Growth Fund - Class A Growth Index
10/31/87 10,000 9,525 9,525
10/31/88 11,449 9,843 9,958
10/31/89 14,451 11,673 11,809
10/31/90 13,364 10,123 10,241
10/31/91 17,841 14,171 14,336
10/31/92 19,618 15,146 15,322
10/31/93 22,540 17,327 17,529
10/31/94 23,427 17,392 17,594
10/31/95 29,615 23,503 23,777
10/31/96 36,782 27,599 27,921
10/31/97 48,672 33,027 33,412
[/LINE CHART]
Average Annual Total Returns for Periods Ending 10/31/97
From Inception
7/21/94 to
1 Year 5 Years 10 Years 10/31/97
- --------------------------------------------------------------------------------
Class A with 4.75% sales charge 13.98% 15.75% 12.82% --
- --------------------------------------------------------------------------------
Class A at net asset value 19.67% 16.87% 13.37% --
- --------------------------------------------------------------------------------
Class B with CDSC 14.70% -- -- 20.95%
- --------------------------------------------------------------------------------
Class B at net asset value 18.70% -- -- 21.34%
- --------------------------------------------------------------------------------
Russell 2000 Growth Index* 21.17% 15.94% 14.11% 19.65%
- --------------------------------------------------------------------------------
S&P 500 Stock Index** 32.33% 19.93% 17.15% 26.91%
- --------------------------------------------------------------------------------
This chart assumes an initial gross investment of $10,000 made on 10/31/87 for
Class A shares. The total return for Class A shares reflects the maximum sales
charge of 4.75% on the initial investment and assumes reinvestment of dividends
and capital gains. Class B share performance will be greater or less than that
shown based on differences in inception dates, fees and sales charges. The
total return (since inception 7/21/94) for Class B shares reflects the 5%
contingent deferred sales charge (CDSC), which is applicable on all shares
redeemed during the 1st year after purchase and 4% for all shares redeemed
during the 2nd year after purchase (scaled down to 3%--3rd year; 2%--4th and
5th year and 0% thereafter). Returns indicate past performance, which is not
predictive of future performance. Investment return and net asset value will
fluctuate, so that your shares, when redeemed, may be worth more or less than
the original cost.
*The Russell 2000 Growth Index contains those Russell 2000 securities with a
greater-than-average growth orientation. Securities in this index generally
have higher price-to-book and price-earnings ratios than those in the Russell
2000 Value Index.
**The S&P 500 Stock Index is an unmanaged but commonly used measure of stock
total return performance. The S&P 500's performance does not reflect sales
charges.
27
<PAGE>
Phoenix Aggressive Growth Fund Series
- --------------------------------------------------------------------------------
INVESTMENTS AT OCTOBER 31, 1997
See Notes to Financial Statements
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCKS--90.9%
Airlines--3.7%
AMR Corp. (b) ................................. 35,000 $ 4,075,313
Southwest Airlines Co. ........................ 100,000 3,262,500
U.S. Air Group, Inc. (b) ..................... 50,000 2,343,750
-----------
9,681,563
-----------
Banks (Major Regional)--2.4%
Southtrust Corp. .............................. 50,000 2,400,000
Zions Bancorporation ........................... 100,000 3,887,500
-----------
6,287,500
-----------
Biotechnology--4.2%
BioChem Pharma, Inc. (b) ..................... 100,000 2,506,250
Centocor, Inc. (b) ........................... 50,000 2,200,000
Immunex Corp. (b) .............................. 95,000 6,080,000
-----------
10,786,250
-----------
Broadcasting (Televison, Radio & Cable)--4.1%
Clear Channels Communications, Inc. (b) ...... 60,000 3,960,000
Heftel Broadcasting Corp. Class A (b) ......... 25,000 1,662,500
Univision Communications, Inc. Class A (b) 80,000 4,960,000
-----------
10,582,500
-----------
Communications Equipment--8.3%
Antec Corp. (b) .............................. 76,100 1,198,575
Ciena Corp. (b) .............................. 55,000 3,025,000
Intermedia Communications, Inc. (b) ............ 100,000 4,537,500
Lucent Technologies, Inc. ..................... 50,000 4,121,875
Newbridge Networks Corp. (b) .................. 40,000 2,120,000
Nextel Communications, Inc. Class A (b) ...... 100,000 2,625,000
QUALCOMM, Inc. (b) ........................... 70,000 3,946,250
-----------
21,574,200
-----------
Computers (Hardware)--0.6%
Compaq Computer Corp. (b) ..................... 25,000 1,593,750
-----------
Computers (Networking)--1.5%
Bay Networks, Inc. (b) ........................ 125,000 3,953,125
-----------
Computers (Software & Services)--10.0%
America Online, Inc. (b) ..................... 50,000 3,850,000
Citrix Systems, Inc. (b) ..................... 71,500 5,250,781
Concord Communications, Inc. (b) ............... 57,300 1,017,075
Excite, Inc. (b) .............................. 50,000 1,246,875
Genesys Telecommunications Laboratories,
Inc. (b) .................................... 50,000 1,600,000
Intuit, Inc. (b) .............................. 50,000 1,631,250
Microsoft Corp. (b) ........................... 35,000 4,550,000
Pinnacle Systems, Inc. (b) ..................... 75,000 2,025,000
RWD Technologies, Inc. (b) ..................... 26,200 589,500
Security Dynamics Technologies, Inc. (b) ...... 50,000 1,693,750
Veritas Software Corp. (b) ..................... 60,000 2,497,500
-----------
25,951,731
-----------
Consumer Finance--1.8%
Providian Financial Corp. ..................... 125,000 4,625,000
-----------
Electrical Equipment--1.0%
Westinghouse Electric Corp. .................. 100,000 2,643,750
-----------
SHARES VALUE
--------- ------------
<S> <C> <C>
Electronics (Instrumentation)--0.5%
Uniphase Corp. (b) ........................... 20,000 $ 1,342,500
-----------
Financial (Diversified)--2.1%
Amresco, Inc. (b) .............................. 100,000 3,137,500
Paine Webber Group, Inc. ..................... 50,000 2,209,375
-----------
5,346,875
-----------
Footwear--1.1%
Stage Stores, Inc. (b) ........................ 80,000 2,920,000
-----------
Health Care (Diversified)--2.3%
Pharmacopeia, Inc. (b) ........................ 100,000 1,762,500
Warner-Lambert Co. ........................... 30,000 4,295,625
-----------
6,058,125
-----------
Health Care (Drugs--Major Pharmaceuticals)--6.3%
Agouron Pharmaceuticals, Inc. (b) ............ 25,000 1,140,625
Coulter Pharmaceutical, Inc. (b) ............... 125,000 1,796,875
Dura Pharmaceuticals, Inc. (b) ............... 100,000 4,837,500
Guilford Pharmaceuticals, Inc. (b) ............ 50,000 1,218,750
Medicis Pharmaceuticals Corp. Class A (b) . 40,000 1,925,000
Pfizer, Inc. ................................. 75,000 5,306,250
-----------
16,225,000
-----------
Health Care (Hospital Management)--1.5%
HBO & Co. .................................... 90,000 3,915,000
-----------
Health Care (Medical Products & Supplies)--5.1%
Arterial Vascular Engineering, Inc. (b) ...... 70,000 3,718,750
Guidant Corp. ................................. 125,000 7,187,500
IDEC Pharmaceuticals Corp. (b) ............... 60,000 2,287,500
-----------
13,193,750
-----------
Household Furn. & Appliances--3.6%
Pier 1 Imports, Inc. ........................... 240,000 4,380,000
Sunbeam Corp., Inc. ........................... 110,000 4,984,375
-----------
9,364,375
-----------
Insurance (Multi-Line)--0.2%
PAULA Financial (b) ........................... 20,000 505,000
-----------
Investment Banking/Brokerage--1.1%
Merrill Lynch & Co., Inc. ..................... 40,000 2,705,000
-----------
Lodging--Hotels--1.5%
CKE Restaurants, Inc. ........................ 100,000 3,993,750
-----------
Metals Mining--0.5%
NS Group, Inc. (b) ........................... 50,000 1,337,500
-----------
Oil (Domestic Integrated)--1.6%
Brown (Tom), Inc. (b) ........................ 125,000 3,093,750
Forcenergy, Inc. (b) ........................... 30,000 978,750
-----------
4,072,500
-----------
Oil & Gas (Exploration & Production)--2.0%
Ocean Energy, Inc. (b) ........................ 30,000 1,852,500
Santa Fe Energy Resources, Inc. (b) ............ 250,000 3,265,625
-----------
5,118,125
-----------
</TABLE>
See Notes to Financial Statements
28
<PAGE>
Phoenix Aggressive Growth Fund Series
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C>
Oil & Gas (Drilling & Equipment)--12.4%
BJ Services Co. (b) ........................... 70,000 $ 5,932,500
Camco International, Inc. ..................... 50,000 3,612,500
Diamond Offshore Drilling, Inc. ............... 60,000 3,735,000
Falcon Drilling Co., Inc. (b) .................. 100,000 3,637,500
Nabors Industries, Inc. (b) .................. 150,000 6,168,750
Transocean Offshore, Inc. ..................... 50,000 2,700,000
UTI Energy Corp. (b) ........................... 100,000 4,462,500
Veritas DGC, Inc. (b) ........................ 50,000 2,046,875
------------
32,295,625
------------
Publishing--1.5%
HSN, Inc. (b) ................................. 100,000 4,000,000
------------
Retail (General Merchandise)--1.1%
A.C. Moore Arts & Crafts, Inc. (b) ............ 14,000 212,625
Abercrombie & Fitch Co. Class A (b) ............ 100,000 2,600,000
------------
2,812,625
------------
Services (Commercial & Consumer)--0.9%
ABR Information Services, Inc. (b) ............ 100,000 2,350,000
------------
Telecommunications (Cellular/Wireless)--2.4%
AirTouch Communications, Inc. (b) ............ 100,000 3,862,500
Qwest Communications International, Inc. (b) . 40,000 2,470,000
------------
6,332,500
------------
Telecommunications (Long Distance)--1.6%
Star Telecommunication, Inc. (b) ............... 175,000 4,046,875
------------
Telephone--4.0%
ICG Communications, Inc. (b) .................. 150,000 3,450,000
Pacific Gateway Exchange, Inc. (b) ............ 55,000 2,103,750
Teleport Communications Group, Inc.
Class A (b) ................................. 100,000 4,837,500
------------
10,391,250
------------
TOTAL COMMON STOCKS
(Identified cost $221,798,758) ........................ 236,005,744
------------
SHARES VALUE
--------- -------------
<S> <C> <C>
FOREIGN COMMON STOCKS--4.7%
Biotechnology--1.9%
Elan PLC Sponsored ADR (Ireland) (b) ......... 100,000 $ 4,987,500
------------
Communications Equipment--0.7%
RSL Communications, Ltd. (Bermuda) (b) ......... 76,000 1,786,000
------------
Computers (Software & Services)--1.0%
Check Point Software Technologies Ltd.
(Israel) (b) .............................. 62,200 2,651,275
------------
Oil & Gas (Drilling & Equipment)--1.1%
Coflexip SA Sponsored ADR (France) ............ 50,000 2,750,000
------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $11,387,942) .................. 12,174,775
------------
TOTAL LONG-TERM INVESTMENTS--95.6%
(Identified cost $233,186,700) ............... 248,180,519
------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000)
------------- ---------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--4.0%
Commercial Paper--4.0%
Associates Corporation of
North America 5.73%,
11/3/97 (b) .............................. A-1+ $10,270 10,266,730
-------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $10,266,730) ............... 10,266,730
-------------
TOTAL INVESTMENTS--99.6%
(Identified cost $243,453,430) ............... 258,447,249(a)
Cash and receivables, less liabilities--0.4% 1,166,276
----------------
NET ASSETS--100.0% ........................... $ 259,613,525
================
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $25,671,323 and gross
depreciation of $11,061,919 for income tax purposes. At October 31, 1997,
the aggregate cost of securities for federal income tax purposes was
$243,837,845.
(b) Non-income producing.
See Notes to Financial Statements
29
<PAGE>
Phoenix Aggressive Growth Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $243,453,430) $258,447,249
Short-term investments held as collateral for loaned
securities 20,087,632
Cash 5,469
Receivables
Investment securities sold 1,428,817
Fund shares sold 222,606
Dividends and interest 10,450
------------
Total assets 280,202,223
------------
Liabilities
Payables
Collateral on securities loaned 20,087,632
Fund shares repurchased 147,605
Investment advisory fee 164,760
Transfer agent fee 39,230
Distribution fee 68,315
Financial agent fee 11,283
Trustees' fee 3,636
Accrued expenses 66,237
------------
Total liabilities 20,588,698
------------
Net Assets $259,613,525
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $192,874,610
Accumulated net realized gain 51,745,096
Net unrealized appreciation 14,993,819
------------
Net Assets $259,613,525
============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $246,002,105) 14,303,846
Net asset value per share $ 17.20
Offering price per share
$17.20/(1-4.75%) $ 18.06
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $13,611,420) 812,371
Net asset value and offering price per share $ 16.76
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997
<TABLE>
<S> <C>
Investment Income
Dividends $ 855,997
Interest 679,291
Security lending 136,950
------------
Total investment income 1,672,238
------------
Expenses
Investment advisory fee 1,735,384
Distribution fee--Class A 588,719
Distribution fee--Class B 124,245
Financial agent fee 113,460
Transfer agent 357,665
Printing 56,110
Registration 30,447
Professional 22,459
Custodian 21,651
Trustees 19,598
Miscellaneous 8,070
------------
Total expenses 3,077,808
------------
Net investment loss (1,405,570)
------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 54,155,507
Net change in unrealized appreciation (depreciation) on
investments (8,722,108)
------------
Net gain on investments 45,433,399
------------
Net increase in net assets resulting from
operations $ 44,027,829
============
</TABLE>
30 See Notes to Financial Statements
<PAGE>
Phoenix Aggressive Growth Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1997 October 31, 1996
------------------ -----------------
<S> <C> <C>
From Operations
Net investment loss $ (1,405,570) $ (1,821,362)
Net realized gain 54,155,507 39,039,816
Net change in unrealized appreciation (depreciation) (8,722,108) (4,196,804)
-------------- --------------
Increase in net assets resulting from operations 44,027,829 33,021,650
-------------- --------------
From Distributions to Shareholders
Net investment income--Class A -- (230,621)
Net investment income--Class B -- --
Net realized gains--Class A (33,833,409) (24,390,155)
Net realized gains--Class B (1,733,847) (370,937)
-------------- --------------
Decrease in net assets from distributions to shareholders (35,567,256) (24,991,713)
-------------- --------------
From Share Transactions
Class A
Proceeds from sales of shares (4,764,191 and 20,593,244 shares, respectively) 76,429,442 339,736,195
Net asset value of shares issued from reinvestment of distributions
(2,152,050 and 1,566,906 shares, respectively) 31,462,960 22,579,121
Cost of shares repurchased (6,476,002 and 19,216,354 shares, respectively) (103,491,166) (316,940,541)
-------------- --------------
Total 4,401,236 45,374,775
-------------- --------------
Class B
Proceeds from sales of shares (787,300 and 739,574 shares, respectively) 12,236,599 12,090,017
Net asset value of shares issued from reinvestment of distributions
(104,653 and 23,041 shares, respectively) 1,500,729 329,024
Cost of shares repurchased (711,043 and 277,273 shares, respectively) (10,939,843) (4,550,009)
-------------- --------------
Total 2,797,485 7,869,032
-------------- --------------
Increase in net assets from share transactions 7,198,721 53,243,807
-------------- --------------
Net increase in net assets 15,659,294 61,273,744
Net Assets
Beginning of period 243,954,231 182,680,487
-------------- --------------
End of period (including undistributed net investment income of $0 and
$0, respectively) $ 259,613,525 $ 243,954,231
============== ==============
</TABLE>
See Notes to Financial Statements
31
<PAGE>
Phoenix Aggressive Growth Fund Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------------------------------
Year Ended October 31,
1997 1996 1995 1994 1993
----------------- ------------------ --------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.84 $ 16.51 $ 13.33 $ 14.56 $ 13.56
Income from investment operations(5)
Net investment income (loss) ( 0.08)(4) ( 0.13)(4) 0.06(4) 0.27 0.22
Net realized and unrealized gain (loss) 2.95 2.64 4.21 (0.21) 1.62
--------- ------------ ----------- ---------- ----------
Total from investment operations 2.87 2.51 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 ( 2.51) ( 2.16) (0.90) (1.07) (0.61)
--------- ------------ ----------- ---------- ----------
Total distributions ( 2.51) ( 2.18) (1.09) (1.29) (0.84)
--------- ------------ ----------- ---------- ----------
Change in net asset value 0.36 0.33 3.18 (1.23) 1.00
--------- ------------ ----------- ---------- ----------
Net asset value, end of period $ 17.20 $ 16.84 $ 16.51 $ 13.33 $ 14.56
========= ============ =========== ========== ==========
Total return(1) 19.67 % 17.43 % 35.14% 0.37% 14.15%
Ratios/supplemental data:
Net assets, end of period (thousands) $ 246,002 $233,488 $180,288 $140,137 $143,035
Ratio to average net assets of:
Operating expenses 1.20 % 1.20 % 1.29% 1.26% 1.17%
Net investment income (loss) ( 0.53)% ( 0.81)% 0.43% 1.97% 1.58%
Portfolio turnover 518 % 401 % 331% 306% 192%
Average commission rate paid(6) $ 0.0586 $ 0.0655 N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
------------------------------------------------------------------------------
Year Ended October 31,
From
Inception
7/21/94 to
1997 1996 1995 10/31/94
----------------- ----------------- ------------------ -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.57 $ 16.38 $ 13.31 $ 13.09
Income from investment operations(5)
Net investment income (loss) ( 0.20)(4) ( 0.25)(4) (0.12) (4) 0.02
Net realized and unrealized gain 2.90 2.60 4.26 0.20
--------- --------- --------- ---------
Total from investment operations 2.70 2.35 4.14 0.22
--------- --------- --------- ---------
Less distributions
Dividends from net investment income -- -- (0.17) --
Dividends from net realized gains ( 2.51) ( 2.16) (0.90) --
--------- --------- --------- ---------
Total distributions ( 2.51) ( 2.16) (1.07) --
--------- --------- --------- ---------
Change in net asset value 0.19 0.19 3.07 0.22
--------- --------- --------- ---------
Net asset value, end of period $ 16.76 $ 16.57 $ 16.38 $ 13.31
========= ========= ========= =========
Total return(1) 18.70 % 16.52 % 34.15 % 1.68%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $ 13,611 $ 10,466 $ 2,393 $ 330
Ratio to average net assets of:
Operating expenses 1.96 % 1.95 % 2.04 % 1.81%(2)
Net investment income (loss) ( 1.28)% ( 1.57)% (0.83)% 1.45%(2)
Portfolio turnover 518 % 401 % 331 % 306%
Average commission rate paid(6) $ 0.0586 $ 0.0655 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.
(6) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for securities
trades on which commissions are charged. This rate generally does not
reflect mark-ups, mark-downs, or spreads on shares traded on a principal
basis.
32 See Notes to Financial Statements
<PAGE>
PHOENIX HIGH YIELD FUND SERIES
INVESTOR PROFILE
Phoenix High Yield Fund is appropriate for aggressive investors seeking
high current income as well as the potential for long-term capital
appreciation. The Fund invests in corporate and government securities issued by
the U.S. and emerging-market countries. Foreign investing involves special
risks, such as currency fluctuation, less public disclosure and economic and
political risks.
INVESTMENT ADVISER'S REPORT
The Phoenix High Yield Fund continued to provide investors with
above-average returns. For the 12 months ended October 31, 1997, Class A shares
provided a total return of 15.03% and Class B shares earned 14.18% compared
with a return of 14.75% for CS First Boston High Yield Index. All performance
figures assume reinvestment of dividends and exclude the effect of sales
charges.
The most significant contributor to the Fund's strong performance over the
last 12 months was our shift into international high-yield issues, particularly
companies domiciled in Europe. Our overweighting in high-yield issues in the
oil and gas sector as well as telecommunications and media companies also
helped performance.
OUTLOOK
We will continue, selectively, to take advantage of undervalued credits
within the high-yield sector. Areas we believe will provide good returns for
the portfolio include international high-yield issues. The Fund is
well-diversified by country, and we believe the outlook for global high-yield
issues remains positive. We also believe such domestic industries as
telecommunications and media, which are currently out of favor, offer good
long-term appreciation potential.
33
<PAGE>
Phoenix High Yield Fund Series
- --------------------------------------------------------------------------------
[LINE CHART]
(tabular representation of plot points)
CS First Boston High Yield Fund
High Yield Index* - Class A
10/31/87 10000 9525
10/31/88 11992.6 11137
10/31/89 12173.5 11208
10/31/90 11091 10649
10/31/91 16094.8 13500
10/31/92 18572.8 15697
10/31/93 22109.2 19131
10/31/94 22474.1 18640
10/31/95 25899.3 20725
10/31/96 28611.3 24031
10/31/97 32830.8 27644
[/LINE CHART]
Average Annual Total Returns for Periods Ending 10/31/97
From Inception
2/16/94 to
1 Year 5 Years 10 Years 10/31/97
- -------------------------------------------------------------------------------
Class A with 4.75% sales charge 9.57% 10.89% 10.75 % --
- -------------------------------------------------------------------------------
Class A at net asset value 15.03% 11.98% 11.29% --
- -------------------------------------------------------------------------------
Class B with CDSC 10.18% -- -- 7.74%
- -------------------------------------------------------------------------------
Class B at net asset value 14.18% -- -- 8.16%
- -------------------------------------------------------------------------------
CS First Boston High Yield Index* 14.75% 12.07% 12.62% 10.03%**
- -------------------------------------------------------------------------------
This chart assumes an initial gross investment of $10,000 made on 10/31/87 for
Class A shares. The total return for Class A shares reflects the maximum sales
charge of 4.75% on the initial investment and assumes reinvestment of dividends
and capital gains. Class B share performance will be greater or less than that
shown based on differences in inception dates, fees and sales charges. The
total return (since inception 2/16/94) for Class B shares reflects the 5%
contingent deferred sales charge (CDSC), which is applicable on all shares
redeemed during the 1st year after purchase and 4% for all shares redeemed
during the 2nd year after purchase (scaled down to 3%--3rd year; 2%--4th and
5th year and 0% thereafter). Returns indicate past performance, which is not
predictive of future performance. Investment return and net asset value will
fluctuate, so that your shares, when redeemed, may be worth more or less than
the original cost.
*The CS First Boston High Yield Index is an unmanaged but commonly used index
that tracks the returns of all new publicly offered debt of more than $75
million rated below BBB or BBB/BB+. The index's performance does not reflect
sales charges.
**Index information from 2/28/94 to 10/31/97.
34
<PAGE>
Phoenix High Yield Fund Series
- --------------------------------------------------------------------------------
INVESTMENTS AT OCTOBER 31, 1997
<TABLE>
<CAPTION>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- -------------
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES--3.5%
U.S. Treasury Notes--3.5%
U.S. Treasury Notes 6.125%,
8/15/07 .................................... Aaa $20,000 $20,437,500
-----------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
(Identified cost $20,125,781) .......................................... 20,437,500
-----------
NON-CONVERTIBLE BONDS--60.7%
Asset-Backed Securities--0.5%
DLJ Mortgage Acceptance
Corp. 94-MF4, B2 8.50%,
4/18/01 .................................... BB(c) 3,000 2,920,313
-----------
Building & Materials--0.8%
Neenah Corp. Series B
11.125%, 5/1/07 ........................... B 4,120 4,449,600
-----------
Containers (Metal & Glass)--1.8%
Portola Packaging, Inc. Sr.
Note 10.75%, 10/1/05 ........................ B 10,000 10,500,000
-----------
Electronics--1.2%
Anacomp, Inc. 10.875%,
4/1/04 .................................... NR 7,000 7,262,500
-----------
Health Care--0.7%
Integrated Health Services
144A 9.25%, 1/15/08 (b) ..................... B 4,000 4,090,000
-----------
Industrial--1.0%
Polymer Group, Inc. 9%,
7/1/07 .................................... NR 6,000 6,075,000
-----------
Leasing/Rental--0.6%
Williams Scotsman, Inc.
144A 9.875%, 6/1/07 (b) ..................... B(c) 3,700 3,801,750
-----------
Leisure Time (Products)--0.9%
Autotote Corp. 144A
10.875%, 8/1/04 (b) ........................ B 5,000 5,175,000
-----------
Natural Gas--1.2%
Forcenergy, Inc. 8.50%,
2/15/07 .................................... B 7,000 7,017,500
-----------
Non-Agency Mortgage-Backed Securities--3.9%
First Chicago/Lennar Trust
97-CHL1, E 144A 8.11%,
2/28/11 (b) ................................. B(c) 10,000 8,381,250
Fund America Structured
Trust 96-1, A 144A 0%,
10/25/30 (b) .............................. Baa 2,313 1,810,300
Ryland Mortgage Security
Corp. III 92-A, 1C 8.27%,
3/29/30 .................................... BB(c) 1,000 815,781
SML, Inc. 94-C1, B2 10.30%,
9/20/99 .................................... BB(c) 5,000 4,950,000
Salomon Brothers Mortgage
VII 95, C1 144A 6.801%,
9/30/08 (b) ................................. B 8,220 6,576,169
-----------
22,533,500
-----------
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- -------------
<S> <C> <C> <C>
Oil--8.4%
Benton Oil & Gas Co.
11.625%, 5/1/03 (f) ........................ B $ 9,800 $10,927,000
Benton Oil & Gas Co. 144A
9.375%, 11/1/07 (b) ........................ B 2,750 2,770,625
Flores & Rucks, Inc. 9.75%,
10/1/06 (f) ................................. B 5,000 5,350,000
Lomak Petroleum, Inc.
8.75%, 1/15/07 .............................. B 2,000 2,015,000
Nuevo Energy Co. 9.50%,
4/15/06 .................................... B 13,500 14,242,500
Ocean Energy, Inc. 8.875%,
7/15/07 .................................... NR 7,000 7,245,000
Snyder Oil Corp. 8.75%,
6/15/07 .................................... B 6,750 6,817,500
-----------
49,367,625
-----------
-----------
Oil Service & Equipment--1.5%
Bellwether Exploration Co.
10.875%, 4/1/07 ..................... B 8,000 8,680,000
-----------
Paper & Forest Products--4.1%
Buckeye Cellulose Corp.
9.25%, 9/15/08 (f) .................. Ba 5,500 5,761,250
Riverwood International Corp.
144A 10.625%, 8/1/07 (b) .B 6,900 7,245,000
Riverwood International Corp.
10.875%, 4/1/08 (f) .................. Caa 6,000 5,940,000
SD Warren Co. Series B Sr.
Subordinate Notes 12%,
12/15/04 .............................. B 4,250 4,791,875
-----------
23,738,125
-----------
Personal Care--1.4%
Revlon Worldwide Corp.
Series B 0%, 3/15/01 .................. B 12,000 8,340,000
-----------
Publishing, Broadcasting, Printing & Cable--16.2%
Cablevision Systems Corp.
9.875%, 4/1/23 (f) .................. B 6,750 7,155,000
Comcast Cellular 144A
9.50%, 5/1/07 (b) ..................... Ba 12,500 12,937,500
Fox Kids Worldwide 144A
0%, 11/1/07 (b) (e) .................. B 43,000 24,402,500
Fox/Liberty Networks LLC
144A 0%, 8/15/07 (b) (e) ............ B 13,000 8,255,000
Fox/Liberty Networks LLC
144A 8.875%, 8/15/07 (b) .B 5,000 5,012,500
Hollinger International Publishing,
Inc. 9.25%, 3/15/07 .................. B 3,400 3,502,000
ITT Publimedia 144A
9.375%, 9/15/07 (b) .................. B 14.375 14,698,437
Outdoor Communications
9.25%, 8/15/07 ........................ B 6,500 6,500,000
Poland Communications, Inc.
Series B 9.875%, 11/1/03 .B 12,200 12,261,000
-----------
94,723,937
===========
</TABLE>
See Notes to Financial Statements 35
<PAGE>
Phoenix High Yield Fund Series
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- --------------
<S> <C> <C> <C>
Retail (General Merchandise)--0.5%
Scotty's, Inc. Series A Debentures
11.25%, 12/15/15 ............ NR $ 3,018 $ 2,882,190
------------
Telecommunications--13.9%
Brooks Fiber Properties 0%,
3/1/06 (e) .................. NR 8,500 6,927,500
Call-Net Enterprises 0%,
12/1/04 (e) .................. B 7,000 6,282,500
CommNet Cellular
Subordinate Notes 11.25%,
7/1/05 ........................ Caa 4,000 4,620,000
Hermes Europe Railtel B.V.
144A 11.50%, 8/15/07 (b) B 6,500 7,052,500
InterAmericas
Communications Corp. Unit
144A 14%, 10/27/07
(b) (h) ..................... NR 11,990 12,109,900
NTL, Inc. 10%, 2/15/07 (f) ...... B 8,000 8,280,000
NTL, Inc. Series B 0%,
2/1/06 (e) .................. B 7,000 5,145,000
Orion Network Systems 0%,
1/15/07 (e) .................. B 8,000 5,720,000
RCN Corp. 144A 0%,
10/15/07 (b) (e) ............ B 17,250 10,048,125
Sprint Spectrum L. P. 0%,
8/15/06 (e) (f) ............... B 19,950 15,261,750
------------
81,447,275
------------
Truckers & Marine--1.2%
Global Ocean Carriers 144A
10.25%, 7/15/07 (b) ......... B 7,000 6,982,500
------------
Waste Management--0.9%
Allied Waste Industries 144A
0%, 6/1/07 (b) (e) ............ B 7,500 5,062,500
------------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $345,679,464) ........................... 355,049,315
------------
FOREIGN GOVERNMENT SECURITIES--5.2%
Dominican Republic--0.3%
Dominican Republic 6.875%,
8/30/24 (e) .................. B(c) 2,500 1,778,125
------------
Mexico--0.9%
United Mexican States Global
Bond 11.50%, 5/15/26 ......... Ba 5,000 5,281,250
------------
Russia--2.0%
Russia Principal Loans WI
6.719%, 12/15/20 (g) ......... NR 20,000 11,800,000
------------
Venezuela--2.0%
Banco Central Venezuela
NMB B-NP 6.75%,
12/18/05 (e) .................. Ba 1,000 887,500
Republic of Venezuela Series A
NMB 6.875%, 12/18/05 (e) .Ba 4,000 3,550,000
Republic of Venezuela 144A
9.125%, 6/18/07 (b) ......... Ba 8,100 7,330,500
------------
11,768,000
------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $33,702,170) ........................... 30,627,375
------------
</TABLE>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- -------------
FOREIGN NON-CONVERTIBLE BONDS--25.2%
Argentina--2.5%
Bridas Corp. Yankee, Sr.
Notes, 12.50%, 11/15/99 ......... Ba $ 6,500 $ 6,987,500
CEI Citicorp Holdings 144A
9.75%, 2/14/07 (b) ............ BB(c) 8,500 7,735,000
-----------
14,722,500
-----------
Bahamas--1.1%
Sun International Hotels 9%,
3/15/07 (f) ..................... Ba 6,000 6,150,000
-----------
Bermuda--1.4%
AES China Generating Co.
Yankee 10.125%, 12/15/06 .Ba 8,220 8,261,100
-----------
Brazil--6.5%
Arisco Prod Alimenticios
144A 10.75%, 5/22/05 (b) .NR 3,750 3,468,750
Globo Communicacoes
Participacoes 144A
10.50%, 12/20/06 (b) ............ B 10,000 9,400,000
Localiza Rent a Car 144A
10.25%, 10/1/05 (b) ............ B 8,000 7,200,000
Paging Network Do Brasil
144A 13.50%, 6/6/05 (b) ......... NR 5,000 4,750,000
RBS Participacoes SA 144A
11%, 4/1/07 (b) ............... BB(c) 5,000 4,925,000
Tevecap SA 12.625%,
11/26/04 ........................ NR 8,225 8,389,500
-----------
38,133,250
-----------
Canada--0.8%
Metronet Communications Units
144A 12%, 8/15/07 (b) (h) ...... NR 4,000 4,510,000
-----------
China--0.3%
Greater Beijing 144A 9.50%,
6/15/07 (b) ..................... Ba 1,650 1,501,500
-----------
Germany--1.8%
Kabelmedia Holding 0%,
8/1/06 (e) ..................... B 15,000 10,612,500
-----------
Greece--2.0%
Antenna TV SA 144A 9%,
8/1/07 (b) ..................... Ba 4,250 4,228,750
Fage Dairy Industries SA 9%,
2/1/07 ........................ B 8,000 7,720,000
-----------
11,948,750
-----------
Hong Kong--0.3%
Road King Infrastructure
144A 9.50%, 7/15/07 (b) ......... BB(c) 2,000 1,860,000
-----------
Mexico--4.7%
Copamex Industries SA 144A
11.375%, 4/30/04 (b) ............ B 8,000 8,560,000
Hylsa SA de C.V. 144A
9.25%, 9/15/07 (b) ............ BB(c) 5,000 4,912,500
Ispat Mexicana SA Euro
10.375%, 3/15/01 ............... NR 12,000 12,000,000
Petroleos Mexicanos 144A
9.50%, 9/15/27 (b) ............ NR 2,000 1,820,000
-----------
27,292,500
-----------
See Notes to Financial Statements
36
<PAGE>
Phoenix High Yield Fund Series
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S
BOND PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------- -------------
<S> <C> <C> <C>
Netherlands--1.0%
Netia Holdings 144A 0%,
11/1/07 (b) (e) ............... NR $ 9,750 $ 5,874,375
------------
United Kingdom--2.3%
Diamond Cable Co. 0%,
2/15/07 (e) .................. B 15,000 9,787,500
Telewest Communications
PLC 0%, 10/1/07 (e) ......... B 5,000 3,737,500
------------
13,525,000
------------
Venezuela--0.5%
CanTV Finance Ltd. VNT
9.25%, 2/1/04 (f) ............ Ba 3,000 2,955,000
------------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $150,184,266) ........................... 147,346,475
------------
FOREIGN CONVERTIBLE BONDS--0.5%
Russia--0.5%
Lukinter Finance Cv. WI
144A 1%, 11/3/03 (b) (g) . NR 3,500 3,115,000
------------
TOTAL FOREIGN CONVERTIBLE BONDS
(Identified cost $3,380,000).............................. 3,115,000
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
---------
<S> <C> <C>
PREFERRED STOCKS--2.7%
Paper & Forest Products--0.7%
SD Warren Co. Series B Pfd.
PIK 14% ..................... 115,000 4,082,587
---------
Publishing--2.0%
American Radio Systems Pfd.
PIK 11.375% .................. 100,017 11,902,034
----------
TOTAL PREFERRED STOCKS
(Identified cost $12,523,141) ............ 15,984,621
----------
CONVERTIBLE PREFERRED STOCKS--0.3%
Publishing--0.3%
Granite Broadcasting Corp.
Cv. Pfd. $1.938............... 30,000 1,488,750
----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $2,025,000) ............ 1,488,750
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
--------- -------------
<S> <C> <C>
COMMON STOCKS--0.0%
Publishing--0.0%
Sullivan Holdings, Inc.
Class C (d) .................. 76 $ 0
------------
TOTAL COMMON STOCKS
(Identified cost $357,881) ............... 0
------------
WARRANTS--0.1%
Orion Network Systems,
Inc. Warrants (d) ............ 8,000 140,000
SD Warren Warrants 144A
(b) (d) ..................... 115,000 575,000
------------
715,000
------------
TOTAL WARRANTS
(Identified cost $568,100) ............... 715,000
------------
TOTAL LONG-TERM INVESTMENTS--98.2%
(Identified cost $568,545,803) ............ 574,764,036
------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000)
------------- --------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--1.9%
Commercial Paper--1.3%
Associates Corporation of
North America 5.73%,
11/3/97 .................. A-1+ $7,240 7,237,695
---------
Repurchase Agreement--0.6%
State Street Bank
Repurchase Agreement
4% dated 10/31/97 due
11/3/97, repurchase
price $3,558,186,
collateralized by U.S.
Treasury Note 8.875%,
2/15/19, market value
$3,630,363 ............... 3,557 3,557,000
---------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $10,794,695) ..................... 10,794,695
----------
TOTAL INVESTMENTS--100.1%
(Identified cost $579,340,498)..................... 585,558,731(a)
Cash and receivables, less liabilities--(0.1%) ... (468,944)
-----------
NET ASSETS--100.0% ................................. $ 585,089,787
==============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $19,805,751 and gross
depreciation of $13,677,743 for income tax purposes. At October 31, 1997,
the aggregate cost of securities for federal income tax purposes was
$579,430,723.
(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 October 31,
1997, these securities amounted to a value of $228,177,931 or 39% of net
assets.
(c) As rated by Standard & Poor's, Duff & Phelps or Fitch.
(d) Non-income producing.
(e) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
(f) All or a portion segregated as collateral.
(g) When issued.
(h) Warrants incorporated as a unit.
See Notes to Financial Statements
37
<PAGE>
Phoenix High Yield Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
Assets
Investment securities at value
(Identified cost $579,340,498) $ 585,558,731
Receivables
Investment securities sold 42,813,392
Dividends and interest 11,854,601
Fund shares sold 1,253,055
-------------
Total assets 641,479,779
-------------
Liabilities
Payables
Custodian 7,377,577
Investment securities purchased 47,419,697
Fund shares repurchased 853,797
Investment advisory fee 341,921
Distribution fee 165,332
Transfer agent fee 95,525
Financial agent fee 18,677
Trustees' fee 3,636
Accrued expenses 113,830
-------------
Total liabilities 56,389,992
-------------
Net Assets $ 585,089,787
=============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $ 658,238,146
Undistributed net investment income 1,920,695
Accumulated net realized loss (81,287,287)
Net unrealized appreciation 6,218,233
-------------
Net Assets $ 585,089,787
=============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $532,905,726) 58,643,449
Net asset value per share $ 9.09
Offering price per share
$9.09/(1-4.75%) $ 9.54
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $52,184,061) 5,754,039
Net asset value and offering price per share $ 9.07
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997
Investment Income
Interest $ 54,780,941
Dividends 1,605,229
Security lending 11,206
-------------
Total investment income 56,397,376
-------------
Expenses
Investment advisory fee 3,713,370
Distribution fee--Class A 1,335,223
Distribution fee--Class B 371,984
Financial agent fee 205,073
Transfer agent 759,805
Printing 107,246
Custodian 30,271
Registration 29,693
Professional 26,945
Trustees 19,555
Miscellaneous 10,560
-------------
Total expenses 6,609,725
-------------
Net investment income 49,787,651
-------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 43,737,254
Net change in unrealized appreciation (depreciation) on
investments (14,877,655)
-------------
Net gain on investments 28,859,599
-------------
Net increase in net assets resulting from
operations $ 78,647,250
=============
See Notes to Financial Statements
38
<PAGE>
Phoenix High Yield Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1997 October 31, 1996
------------------ -----------------
<S> <C> <C>
From Operations
Net investment income $ 49,787,651 $ 47,719,085
Net realized gain 43,737,254 26,433,066
Net change in unrealized appreciation (depreciation) (14,877,655) 2,635,081
-------------- --------------
Increase in net assets resulting from operations 78,647,250 76,787,232
-------------- --------------
From Distributions to Shareholders
Net investment income--Class A (47,205,499) (46,688,677)
Net investment income--Class B (3,142,933) (1,579,272)
-------------- --------------
Decrease in net assets from distributions to shareholders (50,348,432) (48,267,949)
-------------- --------------
From Share Transactions
Class A
Proceeds from sales of shares (19,095,734 and 8,790,783 shares, respectively) 171,457,073 73,572,017
Net asset value of shares issued from reinvestment of distributions (2,704,031 and
2,806,249 shares, respectively) 24,329,132 23,385,527
Cost of shares repurchased (21,233,985 and 15,647,656 shares, respectively) (191,152,369) (131,021,265)
-------------- --------------
Total 4,633,836 (34,063,721)
-------------- --------------
Class B
Proceeds from sales of shares (4,404,860 and 1,998,410 shares, respectively) 39,804,503 16,749,310
Net asset value of shares issued from reinvestment of distributions (142,554 and
76,435 shares, respectively) 1,286,205 639,323
Cost of shares repurchased (1,757,872 and 616,763 shares, respectively) (15,793,311) (5,170,475)
-------------- --------------
Total 25,297,397 12,218,158
-------------- --------------
Increase (decrease) in net assets from share transactions 29,931,233 (21,845,563)
-------------- --------------
Net increase in net assets 58,230,051 6,673,720
Net Assets
Beginning of period 526,859,736 520,186,016
-------------- --------------
End of period (including undistributed net investment income of
$1,920,695 and $2,038,026, respectively) $ 585,089,787 $ 526,859,736
============== ==============
</TABLE>
See Notes to Financial Statements
39
<PAGE>
Phoenix High Yield Fund Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------------
Year Ended October 31,
1997 1996 1995 1994 1993
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.63 $ 8.17 $ 8.11 $ 9.11 $ 8.14
Income from investment operations
Net investment income 0.80 0.78 0.80 0.76 0.74
Net realized and unrealized gain (loss) 0.46 0.46 0.04 (0.97) 0.97
------ ------ ------ ------ ------
Total from investment operations 1.26 1.24 0.84 (0.21) 1.71
------ ------ ------ ------ ------
Less distributions
Dividends from net investment income (0.80) (0.78) (0.78) (0.76) (0.74)
Tax return of capital -- -- -- (0.03) --
------ ------ ------ ------ ------
Total distributions (0.80) (0.78) (0.78) (0.79) (0.74)
------ ------ ------ ------ ------
Change in net asset value 0.46 0.46 0.06 (1.00) 0.97
------ ------ ------ ------ ------
Net asset value, end of period $ 9.09 $ 8.63 $ 8.17 $ 8.11 $ 9.11
====== ====== ====== ====== ======
Total return(1) 15.03% 15.95% 11.19% (2.57)% 21.87%
Ratios/supplemental data:
Net assets end of period (thousands) $532,906 $501,265 $507,855 $531,773 $182,333
Ratio to average net assets of:
Operating expenses 1.11% 1.17% 1.21% 1.19% 1.04%
Net investment income 8.76% 9.21% 10.01% 9.01% 8.46%
Portfolio turnover 167% 162% 147% 222% 157%
</TABLE>
<TABLE>
<CAPTION>
Class B
------------------------------------------------------
From
Inception
Year Ended October 31, 2/16/94 to
1997 1996 1995 10/31/94
----------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.63 $ 8.19 $ 8.13 $ 9.38
Income from investment operations
Net investment income 0.73 0.71 0.72 0.54
Net realized and unrealized gain (loss) 0.46 0.45 0.07 (1.25)
------ ------ ------ -------
Total from investment operations 1.19 1.16 0.79 (0.71)
------ ------ ------ -------
Less distributions
Dividends from net investment income (0.75) (0.72) (0.73) (0.52)
Tax return of capital -- -- -- (0.02)
------ ------ ------ -------
Total distributions (0.75) (0.72) (0.73) (0.54)
------ ------ ------ -------
Change in net asset value 0.44 0.44 0.06 (1.25)
------ ------ ------ -------
Net asset value, end of period $ 9.07 $ 8.63 $ 8.19 $ 8.13
====== ====== ====== =======
Total return(1) 14.18% 14.88% 10.44% (7.67)%(3)
Ratios/supplemental data:
Net assets end of period (thousands) $52,184 $25,595 $12,331 $6,056
Ratio to average net assets of:
Operating expenses 1.86% 1.92% 1.97% 1.80%(2)
Net investment income 8.00% 8.47% 9.18% 9.12%(2)
Portfolio turnover 167% 162% 147% 222%
</TABLE>
(1) Maximum sales load is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
See Notes to Financial Statements
40
<PAGE>
PHOENIX U.S. GOVERNMENT SECURITIES FUND SERIES
INVESTOR PROFILE
Phoenix U.S. Government Securities Fund is designed for conservative
investors seeking current income and conservation of capital.
INVESTMENT ADVISER'S REPORT
Phoenix U.S. Government Securities Fund Class A shares provided a total
return of 7.85% and Class B shares returned 6.94% for the fiscal year ended
October 31, 1997. These results slightly lagged the general market as measured
by the Lehman Brothers Government Bond Index, which earned 8.65% for the
period. All performance figures assume reinvestment of dividends and exclude
the effect of sales charges.
As spreads between Treasuries and Agency mortgage-backed issues began to
narrow, we gradually reduced our weighting in mortgage-backed securities from
about 80% of the Fund in January to approximately 10% at the end of the
reporting period and shifted our emphasis to U.S. Treasuries. We have
selectively added non-Agency mortgage-backed securities and
"AAA"-rated municipal issues when we found attractive values.
OUTLOOK
The bond market is likely to continue to be quite volatile given the
current uncertainty over the strength of the economy and the outlook for
inflation. We will continue to monitor yield spreads to determine the best
values.
The Fund's duration will be kept equal to its benchmark to minimize
interest-rate surprises. It is currently 5.8 years. We will continue to
conservatively manage the Fund, emphasizing those sectors that we believe
possess the best risk/reward potential.
41
<PAGE>
Phoenix U.S. Government Securities Fund Series
- --------------------------------------------------------------------------------
[LINE CHART]
(tabular representation of plot points)
Lehman Brothers U.S. Government Securities
Government Bond Index* Fund - Class A
10/31/87 10000 9525
10/31/88 10972 10560
10/31/89 12293 11464
10/31/90 13022 12131
10/31/91 14923 13858
10/31/92 16463 15208
10/31/93 18626 16757
10/31/94 17795 16090
10/31/95 20530 18473
10/31/96 21580 19222
10/31/97 23447 20731
[/LINE CHART]
Average Annual Total Returns for Periods Ending 10/31/97
From Inception
2/24/94 to
1 Year 5 Years 10 Years 10/31/97
- --------------------------------------------------------------------------------
Class A with 4.75% sales charge 2.75% 5.37% 7.56% --
- --------------------------------------------------------------------------------
Class A at net asset value 7.85% 6.39% 8.09% --
- --------------------------------------------------------------------------------
Class B with CDSC 2.94% -- -- 4.84%
- --------------------------------------------------------------------------------
Class B at net asset value 6.94% -- -- 5.32%
- --------------------------------------------------------------------------------
Lehman Brothers Government Bond Index* 8.65% 7.33% 8.90% 6.90%**
- --------------------------------------------------------------------------------
This chart assumes an initial gross investment of $10,000 made on 10/31/87 for
Class A shares. The total return for Class A shares reflects the maximum sales
charge of 4.75% on the initial investment and assumes reinvestment of dividends
and capital gains. Class B share performance will be greater or less than that
shown based on differences in inception dates, fees and sales charges. The
total return (from inception 2/24/94) for Class B shares reflects the 5%
contingent deferred sales charge (CDSC), which is applicable on all shares
redeemed during the 1st year after purchase and 4% for all shares redeemed
during the 2nd year after purchase (scaled down to 3%--3rd year; 2%--4th and
5th year and 0% thereafter). Returns indicate past performance, which is not
predictive of future performance. Investment return and net asset value will
fluctuate, so that your shares, when redeemed, may be worth more or less than
the original cost.
*The Lehman Brothers Government Bond Index is an unmanaged but commonly used
measure of non-mortgaged government securities performance. The index's
performance does not reflect sales charges.
**Index information from 2/28/94 to 10/31/97.
42
<PAGE>
Phoenix U.S. Government Securities Fund Series
- --------------------------------------------------------------------------------
INVESTMENTS AT OCTOBER 31, 1997
<TABLE>
<CAPTION>
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------------------- -------------
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES--61.0%
U.S. Treasury Bonds--2.7%
U.S. Treasury Bonds 6.375%,
8/15/27 ........................ AAA $ 1,000 $ 1,030,625
U.S. Treasury Bonds WI
6.125%, 11/15/27 (h) ............ AAA 4,000 3,997,200
------------
5,027,825
------------
U.S. Treasury Notes--49.0%
U.S. Treasury Inflation Index
Notes 3.375%, 1/15/07 (i) . AAA 9,165 9,176,200
U.S. Treasury Notes 5.625%,
10/31/99 ........................ AAA 24,220 24,227,557
U.S. Treasury Notes 6.25%,
8/31/02 (e) ..................... AAA 43,000 43,791,630
U.S. Treasury Notes 6.625%,
5/15/07 ........................ AAA 10,800 11,373,750
U.S. Treasury Notes 6.125%,
8/15/07 ........................ AAA 3,350 3,423,281
------------
91,992,418
------------
Agency Mortgage-Backed Securities--9.3%
FNMA 10%, 5/25/04 ............... AAA 3,003 3,200,211
FNMA 6.50%, 5/25/18 ............... AAA 1,500 1,513,125
FNMA 8.50%, 11/25/19 ............ AAA 58 57,509
FNMA 6.85%, 5/17/20 ............... AAA 10,000 10,050,000
FNMA 6.75%, '19-'21 ............... AAA 2,000 2,045,010
GNMA 8%, '05-'06 .................. AAA 141 148,769
GNMA 8.50%, '01-'22 ............... AAA 446 467,935
------------
17,482,559
------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
(Identified cost $112,858,455) ....................................... 114,502,802
------------
MUNICIPAL BONDS--20.6%
Atlanta Downtown
Development Authority
Lease Revenue Taxable
6.875%, 2/1/21 (e) (f) ......... AAA 5,100 5,142,381
Chicago Public Building
Taxable 6.25%, 1/1/99 (c) ...... AAA 2,000 2,009,500
Chicago Public Building
Taxable 6.65%, 1/1/01 (c) ...... AAA 1,000 1,017,180
Chicago Public Building
Taxable 7%, 1/1/06 (c) ......... AAA 2,000 2,088,280
Chicago Public Building
Taxable 7%, 1/1/07 (c) ......... AAA 1,050 1,097,974
E-470 Public Highway
Authority Colorado Revenue
5%, 9/1/26 ..................... AAA 5,000 4,765,900
Harristown Development
Corporation PA Special
Taxable 6.15%, 2/1/16 ......... Aaa(g) 5,000 4,668,550
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
------------- --------------------- -------------
<S> <C> <C> <C>
MUNICIPAL BONDS--continued
Massachusetts Turnpike
Authority Metropolitan
Highway System Revenue
5%, 1/1/27 ..................... AAA $ 5,000 $ 4,750,600
Port St. Lucie, Florida Utility
Revenue 5.125%, 9/1/27 ......... AAA 5,000 4,848,350
San Francisco City & County
Redevelopment Agency
Revenue Taxable 9.75%,
6/1/13 (c) (e) .................. AAA 4,800 6,300,816
Texas Water Development
Board Revenue-ST
Revolving Fund 5%,
7/15/19 ........................ AAA 2,000 1,945,680
------------
TOTAL MUNICIPAL BONDS
(Identified cost $38,067,152).........................................................
38,635,211
------------
NON-CONVERTIBLE BONDS--6.2%
Leisure Time (Products)--2.3%
Mashantucket Pequot Revenue
144A 6.91%, 9/1/12 (b) ......... AAA 4,200 4,273,710
------------
Non-Agency Mortgage-Backed Securities--3.9%
PNC Mortgage Securities Corp.
96-3, A5 8%, 12/25/26 ......... Aaa(g) 4,588 4,854,498
Resolution Trust Corp. 95-2,
M1 7.15%, 5/25/29 ............... Aa(g) 2,509 2,551,563
------------
7,406,061
------------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $11,507,396).........................................................
11,679,771
------------
SHARES
------
PREFERRED STOCKS--5.3%
REITS--5.3%
Home Ownership Funding 2,
Step-down Pfd. 144A
13.338% (b) (d) ............... 10,000 9,913,450
------------
TOTAL PREFERRED STOCKS
(Identified cost $9,660,265) .......................................... 9,913,450
------------
TOTAL LONG-TERM INVESTMENTS--93.1%
(Identified cost $172,093,268) ......................................................
174,731,234
------------
</TABLE>
See Notes to Financial Statements
43
<PAGE>
Phoenix U.S. Government Securities Fund Series
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
--------- ------------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--8.2%
Federal Agency Securities--8.2%
FHLMC 5.65%, 11/3/97 ...... $15,315 $15,310,193
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $15,310,193) ...... 15,310,193
===========
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------
<S> <C>
TOTAL INVESTMENTS--101.3%
(Identified cost $187,403,461) $190,041,427(a)
Cash and receivables, less
liabilities--(1.3%) (2,469,860)
------------
NET ASSETS--100.0% $187,571,567
=============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $2,580,887 and gross
depreciation of $307,456 for income tax purposes. At October 31, 1997, the
aggregate cost of securities for federal income tax purposes was
$187,767,996.
(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 October 31,
1997 these securities amounted to a value of $14,187,160 or 7.6% of net
assets.
(c) These bonds are fully defeased by U.S. Government Treasury Obligations.
(d) Dividend payments backed by FHLMC ("Freddie Mac") Participation
Certificates.
(e) All or a portion segregated as collateral.
(f) The revenue from this security is backed by the U.S. Government.
(g) As rated by Moody's, Fitch or Duff & Phelps.
(h) When issued.
(i) Variable or step coupon security; interest rate shown reflects rate
currently in effect.
See Notes to Financial Statements
44
<PAGE>
Phoenix U.S. Government Securities Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $187,403,461) $ 190,041,427
Cash 3,344
Receivables
Interest and dividends 1,754,606
Fund shares sold 438,157
-------------
Total assets 192,237,534
-------------
Liabilities
Payables
Investment securities purchased 3,995,045
Fund shares repurchased 443,481
Investment advisory fee 71,336
Distribution fee 42,882
Transfer agent fee 40,785
Financial agent fee 8,209
Trustees' fee 3,636
Accrued expenses 60,593
-------------
Total liabilities 4,665,967
-------------
Net Assets $ 187,571,567
=============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $ 195,357,302
Undistributed net investment income 694,705
Accumulated net realized loss (11,118,406)
Net unrealized appreciation 2,637,966
-------------
Net Assets $ 187,571,567
=============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $182,250,364) 18,874,419
Net asset value per share $ 9.66
Offering price per share
$9.66/(1-4.75%) $ 10.14
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $5,321,203) 554,129
Net asset value and offering price per share $ 9.60
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997
<TABLE>
<S> <C>
Investment Income
Interest $12,482,271
Dividends 446,860
Security lending 71,932
-----------
Total investment income 13,001,063
-----------
Expenses
Investment advisory fee 885,257
Distribution fee--Class A 479,186
Distribution fee--Class B 50,496
Financial agent fee 93,466
Transfer agent 314,694
Printing 48,172
Registration 26,304
Professional 22,032
Trustees 19,633
Custodian 18,620
Miscellaneous 3,531
-----------
Total expenses 1,961,391
-----------
Net investment income 11,039,672
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 517,260
Net change in unrealized appreciation (depreciation) on
investments 2,715,533
-----------
Net gain on investments 3,232,793
-----------
Net increase in net assets resulting from
operations $14,272,465
===========
</TABLE>
See Notes to Financial Statements
45
<PAGE>
Phoenix U.S. Government Securities Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1997 October 31, 1996
------------------ -----------------
<S> <C> <C>
From Operations
Net investment income $ 11,039,672 $ 12,502,080
Net realized gain (loss) 517,260 (2,717,827)
Net change in unrealized appreciation (depreciation) 2,715,533 (904,425)
------------- -------------
Increase in net assets resulting from operations 14,272,465 8,879,828
------------- -------------
From Distributions to Shareholders
Net investment income--Class A (10,634,100) (11,752,701)
Net investment income--Class B (259,835) (201,921)
------------- -------------
Decrease in net assets from distributions to shareholders (10,893,935) (11,954,622)
------------- -------------
From Share Transactions
Class A
Proceeds from sales of shares (2,629,037 and 3,190,243 shares, respectively) 24,689,395 30,366,623
Net asset value of shares issued from reinvestment of distributions (639,861 and
680,397 shares, respectively) 6,046,315 6,412,886
Cost of shares repurchased (6,412,210 and 6,419,884 shares, respectively) (60,334,761) (61,087,957)
------------- -------------
Total (29,599,051) (24,308,448)
------------- -------------
Class B
Proceeds from sales of shares (165,395 and 241,903 shares, respectively) 1,565,869 2,287,444
Net asset value of shares issued from reinvestment of distributions (16,313 and
11,893 shares, respectively) 153,651 111,576
Cost of shares repurchased (143,485 and 119,425 shares, respectively) (1,354,825) (1,122,209)
------------- -------------
Total 364,695 1,276,811
------------- -------------
Decrease in net assets from share transactions (29,234,356) (23,031,637)
------------- -------------
Net decrease in net assets (25,855,826) (26,106,431)
Net Assets
Beginning of period 213,427,393 239,533,824
------------- -------------
End of period (including undistributed net investment income of
$694,705 and $264,123, respectively) $ 187,571,567 $ 213,427,393
============= =============
</TABLE>
See Notes to Financial Statements
46
<PAGE>
Phoenix U.S. Government Securities Fund Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------
Year Ended October 31,
1997 1996 1995 1994 1993
------- --------- -------- -------- ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.47 $ 9.60 $8.88 $ 9.87 $ 9.91
Income from investment operations
Net investment income 0.55 0.52 0.55 0.64 0.62(1)
Net realized and unrealized gain (loss) 0.17 (0.15) 0.72 (1.02) 0.34
------ ------ ----- ------ -------
Total from investment operations 0.72 0.37 1.27 (0.38) 0.96
------ ------ ----- ------ -------
Less distributions
Dividends from net investment income (0.53) (0.50) 0.55) (0.45) (0.62)
Dividends from net realized gains -- -- -- (0.02) (0.38)
Tax return of capital -- -- -- (0.14) --
------ ------ ----- ------ -------
Total distributions (0.53) (0.50) 0.55) (0.61) (1.00)
------ ------ ----- ------ -------
Change in net asset value 0.19 (0.13) 0.72 (0.99) (0.04)
------ ------ ----- ------ -------
Net asset value, end of period $ 9.66 $ 9.47 $9.60 $ 8.88 $ 9.87
====== ====== ===== ====== =======
Total return(2) 7.85% 4.05% 14.81% (3.98)% 10.18%
Ratios/supplemental data:
Net assets, end of period (thousands) $182,250 $208,552 $235,879 $262,157 $57,072
Ratio to average net assets of:
Operating expenses 0.98% 1.03% 0.99% 0.98% 0.75%
Net investment income 5.63% 5.55% 6.01% 5.92% 6.19%
Portfolio turnover 377% 379% 178% 101% 264%
</TABLE>
<TABLE>
<CAPTION>
Class B
---------------------------------------------------------
From
Inception
Year Ended October 31, 2/24/94 to
1997 1996 1995 10/31/94
------- ------- ------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.45 $ 9.58 $ 8.86 $9.61
Income from investment operations
Net investment income 0.47 0.44 0.48 0.39
Net realized and unrealized gain (loss) 0.17 (0.14) 0.72 (0.75)
------ ------ ------ -----
Total from investment operations 0.64 0.30 1.20 (0.36)
------ ------ ------ -----
Less distributions
Dividends from net investment income (0.49) (0.43) (0.48) (0.30)
Dividends from net realized gains -- -- -- --
Tax return of capital -- -- -- (0.09)
------ ------ ------ -----
Total distributions (0.49) (0.43) (0.48) (0.39)
------ ------ ------ -----
Change in net asset value 0.15 (0.13) 0.72 (0.75)
------ ------ ------ -----
Net asset value, end of period $ 9.60 $ 9.45 $ 9.58 $8.86
====== ====== ====== =====
Total return(2) 6.94% 3.39% 13.82% (3.83)%(4)
Ratios/supplemental data:
Net assets, end of period (thousands) $5,321 $4,875 $3,655 $1,238
Ratio to average net assets of:
Operating expenses 1.71% 1.78% 1.73% 2.00%(3)
Net investment income 4.91% 4.79% 5.23% 4.49%(3)
Portfolio turnover 377% 379% 178% 101%
</TABLE>
(1) Includes reimbursement of operating expenses by investment adviser of
$0.03.
(2) Maximum sales load is not reflected in the total return calculation.
(3) Annualized
(4) Not annualized
See Notes to Financial Statements
47
<PAGE>
PHOENIX MONEY MARKET FUND SERIES
INVESTOR PROFILE
Phoenix Money Market Fund is designed for conservative investors seeking
high current income with minimal risk of capital.
INVESTMENT ADVISER'S REPORT
Phoenix Money Market Fund continued to perform well for the fiscal year
ended October 31, 1997. Current yield was 4.79% for Class A shares and 4.10%
for Class B shares. Current yield is a seven-day annualized yield computed by
dividing the average net income earned per share during the seven days
preceding the date of calculation by the average daily net asset value per
share for the same period multiplied
by 365.
Short-term money markets experienced high volatility over the last 12
months. In the fourth quarter of 1996, GDP rose 4.3%, showing strength in the
employment and wages components. Continued strength into the first quarter
of 1997 and growing concern over inflation prompted the Federal Reserve to
preemptively raise rates from 5.25% to 5.50%.
In the months following the tightening, economic data continued to show
pockets of strength. Concerns over the strength of the economy and fears of
rekindled inflation increased cash flows in the short end of the market.
However, moderate growth with little evidence of inflation kept the Federal
Reserve on hold.
The summer months were marked by mixed economic data. Remarks from the
Federal Reserve about an overly enthusiastic stock market and signs of rising
inflation led to increasing market volatility. By fall the markets were
expecting another Fed tightening. Subsequently, turmoil in Southeast Asia,
causing unstable markets globally, kept the Fed on hold.
During this time, we kept the Fund's average maturity relatively neutral.
Our focus has been to maintain a market neutral strategy rather than forecast
interest-rate movements. Increased market volatility has proven this strategy
to be effective. We continue to emphasize high-quality commercial paper and
variable-rate securities to enhance yield. The Fund's average credit quality
remains A1/P1.
OUTLOOK
Near term we anticipate slower U.S. economic growth as a result of the
recent shake up in world markets. Growth should decelerate with inflation
remaining subdued. However, if inflation fears are rekindled, the Fed will be
diligent in raising rates.
We continue to emphasize credit quality, focusing on higher yielding
issues, such as commercial paper and variable-rate securities. Given the
uncertainty in the market, we will be monitoring any movement in interest rates
or shifts in yield spreads to identify attractive trading opportunities.
48
<PAGE>
Phoenix Money Market Fund Series
- --------------------------------------------------------------------------------
Monthly Yield Comparison
[LINE CHART]
(tabular representation of plot points)
IBC Donoghue Money Market Fund
Money Fund Report* - Class A
11/96 4.75 4.56
12/96 4.78 4.63
1/97 4.77 4.64
2/97 4.75 4.6
3/97 4.75 4.66
4/97 4.85 4.81
5/97 4.91 4.85
6/97 4.95 4.87
7/97 4.94 4.88
8/97 4.94 4.86
9/97 4.93 4.86
10/97 4.92 4.84
[/LINE CHART]
The above graph covers the period from October 31, 1996 to October 31, 1997.
The results are not indicative of the rate of return which may be realized from
an investment made in the Money Market Fund today. The Money Market Fund Series
is neither insured nor guaranteed by the U.S. Government, and there can be no
assurance that the Fund will be able to maintain a stable Net Asset Value at
$1.00 per share.
*Average monthly yield of taxable Money Market Funds as reported by IBC's Money
Fund Report.
49
<PAGE>
Phoenix Money Market Fund Series
- --------------------------------------------------------------------------------
INVESTMENTS AT OCTOBER 31, 1997
<TABLE>
<CAPTION>
Face
Value Interest Maturity
(000) Description Rate Date Value
- -------- -------------------------------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
FEDERAL AGENCY SECURITIES--10.1%
$3,500 FHLB ........................... 5.69 % 11/20/97 $ 3,500,000
3,000 FHLB ........................... 5.79 1/21/98 3,000,000
6,500 FHLB ........................... 5.78 1/28/98 6,500,000
7,500 SLMA ........................... 6.00 6/30/98 7,500,000
-----------
TOTAL FEDERAL AGENCY SECURITIES ........................... 20,500,000
-----------
FEDERAL AGENCY SECURITIES--VARIABLE--18.9% (b)
Reset
Date
--------
4,500 FFCB (final maturity 4/1/99) ... 5.28 11/1/97 4,500,000
10,500 FFCB (final maturity 7/24/00) 5.79 11/1/97 10,503,231
1,000 SLMA (final maturity
11/24/97) ..................... 5.27 11/4/97 1,000,000
3,500 SLMA (final maturity
11/10/98) ..................... 5.29 11/4/97 3,498,106
2,000 SLMA (final maturity 2/22/99) . 5.30 11/4/97 2,000,000
5,000 SLMA (final maturity 2/8/99) ... 5.31 11/4/97 5,000,000
3,000 SLMA (final maturity 3/7/01) ... 5.36 11/4/97 3,000,000
3,000 FHLMC (final maturity
6/22/98) ..................... 5.405 11/20/97 2,999,055
3,000 FNMA (final maturity
12/14/98) ..................... 5.36 12/14/97 2,998,158
3,000 SBA (final maturity 10/25/22) 6.00 1/1/98 2,996,251
-----------
TOTAL FEDERAL AGENCY SECURITIES--VARIABLE 38,494,801
-----------
</TABLE>
<TABLE>
<CAPTION>
Standard
& Poor's
Rating Maturity
(Unaudited) Date
------------- ----------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER--65.7%
502 Heinz (H.J.) Co. ......... A-1 5.50 11/3/97 501,847
1,060 Merrill Lynch & Co., Inc. A-1+ 5.54 11/3/97 1,059,674
1,000 Pfizer, Inc. ............ A-1+ 5.52 11/3/97 999,693
5,235 Pitney Bowes Credit
Corp. ..................... A-1+ 5.70 11/3/97 5,233,342
500 Preferred Receivables
Funding Corp. ............ A-1 5.80 11/3/97 499,839
750 BellSouth
Telecommunications,
Inc. ..................... A-1+ 5.57 11/4/97 749,652
747 Receivables Capital Corp. A-1+ 5.54 11/4/97 746,655
500 Du Pont (E.I.) de
Nemours & Co. ............ A-1+ 5.55 11/6/97 499,615
3,000 Goldman, Sachs & Co. A-1+ 5.62 11/6/97 2,997,656
1,642 Receivables Capital Corp. A-1+ 5.55 11/6/97 1,640,734
2,500 Kimberly-Clark Corp. ...... A-1+ 5.65 11/7/97 2,497,646
4,570 Colgate-Palmolive Co. A-1 5.54 11/10/97 4,563,671
</TABLE>
<TABLE>
<CAPTION>
Standard
Face & Poor's
Value Rating Interest Maturity
(000) Description (Unaudited) Rate Date Value
- --------- ----------------------- ------------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER--continued
$ 2,700 Corporate Asset
Funding Co., Inc. . A-1+ 5.55% 11/10/97 $2,696,254
3,300 CXC, Inc. ............ A-1+ 5.52 11/12/97 3,294,434
1,200 Coca-Cola Co. ......... A-1+ 5.52 11/12/97 1,197,976
565 Corporate Asset
Funding Co., Inc. . A-1+ 5.51 11/12/97 564,049
2,750 Exxon Imperial U.S.,
Inc. .................. A-1+ 5.52 11/12/97 2,745,370
1,550 Cargill, Inc. ......... A-1+ 5.50 11/13/97 1,547,158
3,000 Enterprise Funding
Corp. ............... A-1+ 5.73 11/13/97 2,994,270
3,470 AlliedSignal, Inc. ... A-1 5.55 11/14/97 3,463,046
450 Beta Finance, Inc. ... A-1+ 5.55 11/14/97 449,098
3,000 Corporate Receivables
Corp. ............... A-1 5.35 11/14/97 2,994,204
1,000 Gannett Co. ......... A-1 5.52 11/14/97 998,007
3,500 General Electric
Capital Corp. ......... A-1+ 5.53 11/17/97 3,491,398
1,465 Pitney Bowes Credit
Corp. ............... A-1+ 5.65 11/17/97 1,461,321
2,516 Receivables Capital
Corp. ............... A-1+ 5.54 11/17/97 2,509,805
1,800 General Electric
Capital Corp. ......... A-1+ 5.50 11/19/97 1,795,050
3,255 Greenwich Funding
Corp. ............... A-1+ 5.53 11/20/97 3,245,500
3,165 Preferred Receivables
Funding Corp. ......... A-1 5.52 11/21/97 3,155,294
700 Cargill, Inc. ......... A-1+ 5.52 11/24/97 697,531
1,129 Greenwich Funding
Corp. ............... A-1+ 5.55 11/24/97 1,124,997
4,170 Beta Finance, Inc. ... A-1+ 5.52 11/25/97 4,154,654
600 Beta Finance, Inc. ... A-1+ 5.55 11/25/97 597,780
1,600 Enterprise Funding
Corp. ............... A-1+ 5.71 11/25/97 1,593,909
3,650 General Electric
Capital Corp. ......... A-1+ 5.54 11/26/97 3,635,958
5,000 Goldman, Sachs & Co. A-1+ 5.53 11/28/97 4,979,263
315 Enterprise Funding
Corp. ............... A-1+ 5.53 12/1/97 313,548
600 Enterprise Funding
Corp. ............... A-1+ 5.57 12/1/97 597,215
3,680 Greenwich Funding
Corp. ............... A-1+ 5.56 12/1/97 3,662,949
1,600 Receivables Capital
Corp. ............... A-1+ 5.54 12/1/97 1,592,613
3,645 Du Pont (E.I.) de
Nemours & Co. ......... A-1+ 5.50 12/2/97 3,627,737
</TABLE>
See Notes to Financial Statements
50
<PAGE>
Phoenix Money Market Fund Series
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standard
Face & Poor's
Value Rating Interest Maturity
(000) Description (Unaudited) Rate Date Value
- --------- ------------------------- ------------- ---------- ---------- --------------------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER--continued
$ 3,000 Private Export
Funding Corp. ......... A-1+ 5.53% 12/4/97 $ 2,984,792
5,000 Private Export
Funding Corp. ......... A-1+ 5.51 12/5/97 4,973,981
2,000 Private Export
Funding Corp. ......... A-1+ 5.57 12/5/97 1,989,479
377 International Lease
Finance Corp. ......... A-1 5.55 12/9/97 374,791
1,875 Receivables Capital
Corp. .................. A-1+ 5.53 12/10/97 1,863,767
1,075 Receivables Capital
Corp. .................. A-1+ 5.55 12/10/97 1,068,537
2,500 Kimberly-Clark Corp. .A-1+ 5.50 12/12/97 2,484,340
2,800 Preferred Receivables
Funding Corp. ......... A-1 5.55 12/18/97 2,779,712
500 General Re Corp. ...... A-1+ 5.51 12/26/97 495,791
790 International Lease
Finance Corp. ......... A-1 5.55 1/20/98 780,257
3,500 CXC, Inc. ............... A-1+ 5.57 1/27/98 3,452,887
2,000 Corporate Receivables
Corp. .................. A-1 5.58 1/28/98 1,972,720
3,250 Merrill Lynch & Co.,
Inc. .................. A-1+ 5.58 1/30/98 3,204,662
3,000 Pitney Bowes Credit
Corp. .................. A-1+ 5.52 1/30/98 2,958,600
Standard
Face & Poor's
Value Rating Interest Maturity
(000) Description (Unaudited) Rate Date Value
- --------- ------------------------- ------------- ---------- ---------- --------------------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER--continued
$ 900 AT&T Corp. ............ A-1+ 5.57% 2/12/98 $ 885,657
2,500 Corporate Receivables
Corp. .................. A-1 5.55 2/18/98 2,457,990
2,890 Preferred Receivables
Funding Corp. ......... A-1 5.56 2/23/98 2,839,117
3,816 Enterprise Funding
Corp. .................. A-1+ 5.69 2/27/98 3,744,829
850 Du Pont (E.I.) de
Nemours & Co. ......... A-1+ 5.57 3/9/98 833,561
1,800 Beta Finance, Inc. ...... A-1+ 5.58 3/12/98 1,763,451
2,900 Beta Finance, Inc. ...... A-1+ 5.60 4/29/98 2,819,251
---------
TOTAL COMMERCIAL PAPER
133,898,584
--------------
MEDIUM-TERM NOTES--1.5%
3,100 Associates Corporation
of North America ...... AA- 6.38 8/15/98 3,110,600
---------
TOTAL MEDIUM-TERM NOTES
3,110,600
--------------
CERTIFICATES OF DEPOSIT--1.2%
2,500 Deutsche Bank N.Y. Yankee ......................................................
5.64 1/15/98 2,500,000
---------
TOTAL CERTIFICATES OF DEPOSIT
2,500,000
--------------
TOTAL INVESTMENTS--97.4%
(Identified cost $198,503,985) ............... 198,503,985(a)
Cash and receivables, less liabilities--2.6% 5,204,094
--------------
NET ASSETS--100.0% $203,708,079
===== ============
</TABLE>
(a) Federal Income Tax Information: At October 31, 1997, the aggregate cost of
securities was the same for book and tax purposes.
(b) Variable rate demand notes. The interest rates shown reflect the rates
currently in effect.
See Notes to Financial Statements
51
<PAGE>
Phoenix Money Market Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997
<TABLE>
<S> <C>
Assets
Investment securities at value
(Identified cost $198,503,985) $198,503,985
Receivables
Fund shares sold 6,960,757
Interest 1,058,585
------------
Total assets 206,523,327
------------
Liabilities
Payables
Custodian 13,876
Fund shares repurchased 2,440,746
Dividend distributions 108,695
Transfer agent fee 87,680
Investment advisory fee 63,558
Financial agent fee 8,224
Distribution fee 6,388
Trustees' fee 3,636
Accrued expenses 82,445
------------
Total liabilities 2,815,248
------------
Net Assets $203,708,079
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $203,708,079
------------
Net Assets $203,708,079
============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $188,694,703) 188,694,703
Net asset value and offering price per share $ 1.00
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $15,013,376) 15,013,376
Net asset value and offering price per share $ 1.00
</TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997
<TABLE>
<S> <C>
Investment Income
Interest $10,948,988
-----------
Total investment income 10,948,988
-----------
Expenses
Investment advisory fee 788,106
Distribution fee--Class B 77,717
Financial agent fee 93,776
Transfer agent fee 492,272
Registration 55,120
Printing 51,923
Custodian 29,261
Professional 27,499
Trustees 19,555
Miscellaneous 6,745
-----------
Total expenses 1,641,974
-----------
Net investment income $ 9,307,014
===========
</TABLE>
See Notes to Financial Statements
52
<PAGE>
Phoenix Money Market Fund Series
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1997 October 31, 1996
------------------ -------------------
<S> <C> <C>
From Operations
Net investment income $ 9,307,014 $ 9,418,637
-------------- ----------------
From Distributions to Shareholders
Net investment income--Class A (8,890,389) (9,064,115)
Net investment income--Class B (416,625) (354,522)
-------------- ----------------
Decrease in net assets from distributions to shareholders (9,307,014) (9,418,637)
-------------- ----------------
From Share Transactions
Class A
Proceeds from sales of shares (732,054,689 and 1,212,801,272 shares, respectively) 732,054,689 1,212,801,272
Net asset value of shares issued from reinvestment of distributions (8,138,566 and
8,374,618
shares, respectively) 8,138,566 8,374,618
Cost of shares repurchased (744,357,959 and 1,221,850,524 shares, respectively) (744,357,959) (1,221,850,524)
-------------- ----------------
Total (4,164,704) (674,634)
-------------- ----------------
Class B
Proceeds from sales of shares (35,539,707 and 16,991,839 shares, respectively) 35,539,707 16,991,839
Net asset value of shares issued from reinvestment of distributions (329,335 and 281,654
shares, respectively) 329,335 281,654
Cost of shares repurchased (31,078,203 and 15,556,837 shares, respectively) (31,078,203) (15,556,837)
-------------- ----------------
Total 4,790,839 1,716,656
-------------- ----------------
Increase in net assets from share transactions 626,135 1,042,022
-------------- ----------------
Net increase in net assets 626,135 1,042,022
Net Assets
Beginning of period 203,081,944 202,039,922
-------------- ----------------
End of period $ 203,708,079 $ 203,081,944
============== ================
</TABLE>
See Notes to Financial Statements
53
<PAGE>
Phoenix Money Market Fund Series
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------------------
Year Ended October 31,
1997 1996 1995 1994 1993
--------- --------- -------- --------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations
Net investment income 0.048 0.047 0.053 0.032 0.025(1)
-------- -------- -------- -------- ---------
Total from investment operations 0.048 0.047 0.053 0.032 0.025
-------- -------- -------- -------- ---------
Less distributions
Dividends from net investment income (0.048) (0.047) (0.053) (0.032) (0.025)
-------- -------- -------- -------- ---------
Change in net asset value -- -- -- -- --
-------- -------- -------- -------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== =========
Total return 4.76% 4.67% 5.32% 3.20% 2.50%
Ratios/supplemental data:
Net assets, end of period (thousands) $188,695 $192,859 $193,534 $196,566 $170,334
Ratio to average net assets of:
Operating expenses 0.79% 0.84% 0.71% 0.85% 0.85%
Net investment income 4.76% 4.68% 5.31% 3.19% 2.53%
</TABLE>
<TABLE>
<CAPTION>
Class B
---------------------------------------------------
From
Inception
7/15/94
Year Ended October 31, to
1997 1996 1995 10/31/94
-------- ------- -------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $1.00
Income from investment operations
Net investment income 0.040 0.039 0.046 0.007
------- ------- ------- -------
Total from investment operations 0.040 0.039 0.046 0.007
------- ------- ------- -------
Less distributions
Dividends from net investment income (0.040) (0.039) (0.046) (0.007)
------- ------- ------- --------
Change in net asset value -- -- -- --
------- ------- ------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $1.00
======= ======= ======= ========
Total return 4.02 % 3.93 % 4.63 % 0.70%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $15,013 $10,223 $ 8,506 $2,086
Ratio to average net assets of:
Operating expenses 1.55 % 1.59 % 1.44 % 1.60%(2)
Net investment income 4.02 % 3.92 % 4.62 % 3.46%(2)
</TABLE>
(1) Includes reimbursement of operating expenses by investment adviser of
$0.0001.
(2) Annualized.
(3) Not annualized.
See Notes to Financial Statements
54
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1997
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; these objectives are to be considered as
relatively equal. The Growth Fund Series seeks long-term appreciation of
capital. The Aggressive Growth 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 U.S. Government Securities Fund
Series seeks a high level of current income by investing in U.S. Government
guaranteed or backed securities. The Money Market Fund 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. 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:
Equity securities are valued at the last sale price, or if there had been
no sale that day, at the last bid price. Debt securities are valued on the
basis of broker quotations or valuations provided by a pricing service which
utilizes information with respect to recent sales, market transactions in
comparable securities, quotations from dealers, and various relationships
between securities in determining value. Short-term investments having a
remaining maturity of 60 days or less are valued at amortized cost which
approximates market. All other securities and assets are valued at their fair
value as determined in good faith by or under the direction of the Trustees.
The Money Market Fund 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.
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 Fund
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 all of its taxable income to its shareholders. In addition,
each Series intends to distribute an amount sufficient to avoid imposition of
any excise tax under Section 4982 of the Code. Therefore, no provision for
federal income taxes or excise taxes has been made.
D. Distributions to shareholders:
Distributions are recorded by each Series on the ex-dividend date. Income and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
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
55
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1997 (Continued)
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. 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 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 October 31, 1997, the Trust had the following amounts of
security loans:2
Value of
Value of Securities
Collateral on Loan
-------------- -------------
Balanced Fund Series ............... $143,021,673 $140,115,192
Convertible Fund Series ............ 4,200,000 4,034,490
Growth Fund Series .................. 31,830,000 31,018,950
Aggressive Growth Fund Series ...... 20,087,632 19,421,015
U.S. Government Securities Fund Series 11,062,500 10,841,880
H. 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.
I. Options:
The Trust, except for U.S. Government and Money Market Series, may write
covered options or purchase options contracts for the purpose of hedging
against changes in the market value of the underlying securities or foreign
currencies.
The Series will realize a gain or loss upon the expiration or closing of
the option transaction. Gains and losses on written options are reported
separately in the Statement of Operations. When a written option is exercised,
the proceeds on sales or amounts paid are adjusted by the amount of premium
received. Options written are reported as a liability in the Statement of
Assets and Liabilities and subsequently marked-to-market to reflect the current
value of the option. The risk associated with written options is that the
change in value of options contracts may not correspond to the change in value
of the hedged instruments. In addition, losses may arise from changes in the
value of the underlying instruments, or if a liquid secondary market does not
exist for the contracts.
Each Series, except for U.S. Government and Money Market Series, may
purchase options which are included in the Series' Schedule of Investments and
subsequently marked-to-market to reflect the current value of the option. When
a purchased option is exercised, the cost of the security is adjusted by the
amount of premium paid. The risk associated with purchased options is limited
to the premium paid.
J. When-issued and delayed delivery transactions:
Each Series may engage in when-issued or delayed delivery transactions.
The Series record when-issued securities on the trade date and maintain
collateral for the securities purchased. Securities purchased on a when-issued
or delayed delivery basis begin earning interest on the settlement date.
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 $1-2 $2+
Series Billion Billion Billion
- ----------------------------------------- --------- --------- --------
Growth Fund Series ..................... 0.70% 0.65% 0.60%
Aggressive Growth 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%
56
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1997 (Continued)
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 Trust that it retained selling commissions of $525,072
for Class A shares and deferred sales charges of $631,551 for Class B shares,
for the year ended October 31, 1997. In addition, each Series except the Money
Market Fund 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 Fund Series is
0% and 0.75% for Class A and Class B, respectively. The distributor has advised
the Series that of the total amount expensed for the year ended October 31,
1997, $3,044,353 was earned by the Distributor, $10,576,329 was earned by
unaffiliated participants, and $1,358,415 was paid to W.S. Griffith, an
indirect subsidiary of PHL.
As Financial Agent of the Trust, PEPCO received a fee for bookkeeping,
administration, and pricing services at an annual rate of 0.03% of the average
daily net assets of the Fund through December 31, 1996, and starting on January
1, 1997, at an annual rate of 0.05% of average daily net assets up to $100
million, 0.04% of average daily net assets of $100 million to $300 million,
0.03% of average daily net assets of $300 million through $500 million, and
0.015% of average daily net assets greater than $500 million; a minimum fee may
apply. PEPCO serves as the Trust's Transfer Agent with State Street Bank and
Trust Company as sub-transfer agent. For the year ended October 31, 1997,
transfer agent fees were $8,230,205 of which PEPCO retained $3,505,548 which is
net of fees paid to State Street.
At October 31, 1997, PHL and affiliates held Phoenix Series Fund shares
which aggregated the following:
Aggregate
Net Asset
Shares Value
----------- -----------
Aggressive Growth Fund Series Class B 11,387 $ 190,735
High Yield Fund Series Class A ...... 395 3,592
U.S. Government Securities Fund Series
Class A ........................... 298 2,883
Money Market Fund Series Class A ... 7,197,226 7,197,226
NOTE 3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the year ended October 31, 1997
(excluding U.S. Government and agency securities and short-term securities)
aggregated the following:
Purchases Sales
---------------- ---------------
Balanced Fund Series ......... $2,007,465,298 $2,398,704,549
Convertible Fund Series ...... 279,807,350 347,511,171
Growth Fund Series ............ 4,367,595,466 4,592,376,556
Aggressive Growth Fund Series 1,238,101,677 1,268,403,142
High Yield Fund Series ......... 837,633,569 827,550,266
U.S. Government Securities
Fund Series .................. 56,183,141 2,628,609
Purchases and sales of U.S. Government and agency securities during the
year ended October 31, 1997, aggregated the following:
Purchases Sales
---------------- ---------------
Balanced Fund Series ......... $1,354,721,837 $1,486,596,557
Convertible Fund Series ...... 7,663,219 7,778,563
High Yield Fund Series ...... 112,710,173 98,383,816
U.S. Government Securities
Fund Series ............... 663,320,784 736,681,917
Written option activity for the year ended October 31, 1997, aggregated
the following:
Balanced Fund Series Call Options
- ------------------------------- --------------------------
Number of Amount
Options of Premiums
----------- ------------
Options outstanding at
October 31, 1996 ............ -- $ --
Options written ............... 8,362 1,114,302
Options canceled in closing
purchase transactions ...... (1,060) (256,733)
Options expired ............... (4,274) (363,130)
Options exercised ............ (3,028) (494,439)
------ ---------
Options outstanding at
October 31, 1997 ............ -- --
====== =========
NOTE 4. CREDIT RISK
In countries with limited or developing markets, investments may present
greater risks than in more developed markets and the prices of such investments
may be volatile. The consequences of political, social or economic changes in
these markets may have disruptive effects on the market prices of these
investments and the income they generate, as well as a fund's ability to
repatriate such amounts.
57
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1997 (Continued)
NOTE 5. RECLASS OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Series have recorded
several reclassifications in the capital accounts. These reclassifications have
no impact on the net asset value of the Series and are designed generally to
present undistributed income and realized gains on a tax basis which is
considered to be more informative to the shareholder. As of October 31, 1997,
the Series recorded the following reclassifications to increase (decrease) the
accounts listed below:
Capital paid
Undistributed Accumulated in on shares
net investment net realized of beneficial
income (loss) gains (losses) interest
---------------- ---------------- --------------
Balanced Fund Series $1,007,162 $ (259,853) $ (747,309)
Convertible Fund
Series ............ (29,149) 32,223 (3,074)
Growth Fund Series ... (88,868) 88,868 --
Aggressive Growth
Fund Series ...... 1,405,570 (1,405,570) --
High Yield Fund
Series ............ 443,450 (43,907,142) 43,463,692
U.S. Government
Securities Fund
Series ............ 284,845 (516,595) 231,750
NOTE 6. CAPITAL LOSS CARRYOVERS
The following Series have capital loss carryforwards which may be used to
offset future capital gains.
U.S.
Government
Expiration High Yield Securities
Date Fund Series Fund Series
- -------------- -------------- ------------
1998 ......... $ 66,472,552 $ 1,816,304
2002 ......... 14,103,053 8,684,579
2003 ......... 46,929,335 --
2004 ......... -- 2,433,827
------------ -----------
Total ...... $127,504,940 $12,934,710
============ ===========
Included in the High Yield Fund Series amount expiring in 1998,
$46,426,813 was acquired in connection with the merger of the National Bond
Fund.
For the years ended October 31, 1997, the following Series had losses
deferred in the prior year which were utilized or expired in the current year.
U.S. Government
High Yield Securities Fund
Fund Series Series
-------------- ----------------
Utilized ...... $ 43,463,693 $ 596,285
Expired ...... 133,573,091 13,326,574
TAX INFORMATION NOTICE (Unaudited)
For the fiscal year ended October 31, 1997, the following Series
distributed long-term capital gains dividends as follows:
Balanced Fund Series ............... $ 96,737,966
Convertible Fund Series ............ 4,550,151
Growth Fund Series .................. 334,316,017
Aggressive Growth Fund Series ...... 7,965,676
For federal income tax purposes, 4.0% and 11.5% of the ordinary income
dividends paid by the Balanced Fund Series and the Growth Fund Series,
respectively, qualify for the dividends received deduction for corporate
shareholders.
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.
58
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
[LOGOTYPE]Price Waterhouse LLP [LOGO]
To the Shareholders and Trustees of
Phoenix Series Fund
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments (except for bond ratings), and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the Balanced Fund Series, the Convertible Fund Series, the Growth Fund Series,
the Aggressive Growth Fund Series, the High Yield Fund Series, the U.S.
Government Securities Fund Series and the Money Market Fund Series
(constituting the Phoenix Series Fund, hereinafter referred to as the "Fund")
at October 31, 1997, the results of each of their operations for the year then
ended, the changes in each of their net assets for each of the two years in the
period then ended and the financial highlights for each of the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at October 31, 1997 by correspondence with the custodian and
brokers, and the application of alternative auditing procedures where
confirmations from brokers were not received, provide a reasonable basis for
the opinion expressed above.
/s/ Price Waterhouse LLP
Boston, Massachusetts
December 12, 1997
59
<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 Aggressive Growth 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 at 800-243-4361.
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.
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.
60
<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
Michael E. Haylon, Executive Vice President
David R. Pepin, Executive Vice President
William J. Newman, Senior Vice President
James D. Wehr, Senior Vice President
Curtiss O. Barrows, Vice President
Mary E. Canning, Vice President
John M. Hamlin, Vice President
Van Harissis, Vice President
William E. Keen, III, Vice President
Christopher J. Kelleher, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
Julie L. Sapia, Vice President
Dorothy J. Skaret, 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
Independent Accountants
Price Waterhouse LLP
160 Federal Street
Boston, Massachusetts 02110
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
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<DIVIDEND-INCOME> 12,459
<INTEREST-INCOME> 52,853
<OTHER-INCOME> 0
<EXPENSES-NET> (17,864)
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<REALIZED-GAINS-CURRENT> 250,161
<APPREC-INCREASE-CURRENT> 405
<NET-CHANGE-FROM-OPS> 298,014
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (48,279)
<DISTRIBUTIONS-OF-GAINS> (194,039)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,597
<NUMBER-OF-SHARES-REDEEMED> (32,162)
<SHARES-REINVESTED> 13,754
<NET-CHANGE-IN-ASSETS> (194,921)
<ACCUMULATED-NII-PRIOR> 4,826
<ACCUMULATED-GAINS-PRIOR> 194,853
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9,490
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 17,864
<AVERAGE-NET-ASSETS> 1,797,953
<PER-SHARE-NAV-BEGIN> 17.56
<PER-SHARE-NII> 0.48
<PER-SHARE-GAIN-APPREC> 2.38
<PER-SHARE-DIVIDEND> (0.48)
<PER-SHARE-DISTRIBUTIONS> (1.87)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 18.07
<EXPENSE-RATIO> 0.98
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<AVG-DEBT-PER-SHARE> 0
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<PERIOD-START> NOV-01-1996
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<INVESTMENTS-AT-VALUE> 1,686,902
<RECEIVABLES> 54,670
<ASSETS-OTHER> 1,512
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,743,084
<PAYABLE-FOR-SECURITIES> 5,642
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,842
<TOTAL-LIABILITIES> 10,484
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,355,490
<SHARES-COMMON-STOCK> 1,675
<SHARES-COMMON-PRIOR> 1,495
<ACCUMULATED-NII-CURRENT> 4,441
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 247,915
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 124,754
<NET-ASSETS> 1,732,600
<DIVIDEND-INCOME> 12,459
<INTEREST-INCOME> 52,853
<OTHER-INCOME> 0
<EXPENSES-NET> (17,864)
<NET-INVESTMENT-INCOME> 47,448
<REALIZED-GAINS-CURRENT> 250,161
<APPREC-INCREASE-CURRENT> 405
<NET-CHANGE-FROM-OPS> 298,014
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (562)
<DISTRIBUTIONS-OF-GAINS> (2,800)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 320
<NUMBER-OF-SHARES-REDEEMED> (329)
<SHARES-REINVESTED> 189
<NET-CHANGE-IN-ASSETS> 4,007
<ACCUMULATED-NII-PRIOR> 4,826
<ACCUMULATED-GAINS-PRIOR> 194,853
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9,490
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 17,864
<AVERAGE-NET-ASSETS> 1,797,953
<PER-SHARE-NAV-BEGIN> 17.54
<PER-SHARE-NII> 0.35
<PER-SHARE-GAIN-APPREC> 2.37
<PER-SHARE-DIVIDEND> (0.35)
<PER-SHARE-DISTRIBUTIONS> (1.87)
<RETURNS-OF-CAPITAL> 0.00
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> Phoenix Convertible Fund Series
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 188,256
<INVESTMENTS-AT-VALUE> 199,937
<RECEIVABLES> 12,206
<ASSETS-OTHER> 4,215
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 216,358
<PAYABLE-FOR-SECURITIES> 2,342
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,783
<TOTAL-LIABILITIES> 7,125
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 171,078
<SHARES-COMMON-STOCK> 9,808
<SHARES-COMMON-PRIOR> 11,156
<ACCUMULATED-NII-CURRENT> 422
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 26,053
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 11,680
<NET-ASSETS> 209,233
<DIVIDEND-INCOME> 2,038
<INTEREST-INCOME> 6,818
<OTHER-INCOME> 0
<EXPENSES-NET> (2,402)
<NET-INVESTMENT-INCOME> 6,454
<REALIZED-GAINS-CURRENT> 26,030
<APPREC-INCREASE-CURRENT> 1,273
<NET-CHANGE-FROM-OPS> 33,757
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (6,482)
<DISTRIBUTIONS-OF-GAINS> (13,252)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 702
<NUMBER-OF-SHARES-REDEEMED> (2,904)
<SHARES-REINVESTED> 854
<NET-CHANGE-IN-ASSETS> (13,704)
<ACCUMULATED-NII-PRIOR> 658
<ACCUMULATED-GAINS-PRIOR> 13,641
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,362
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,402
<AVERAGE-NET-ASSETS> 202,379
<PER-SHARE-NAV-BEGIN> 19.26
<PER-SHARE-NII> 0.61
<PER-SHARE-GAIN-APPREC> 2.54
<PER-SHARE-DIVIDEND> (0.64)
<PER-SHARE-DISTRIBUTIONS> (1.26)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 20.51
<EXPENSE-RATIO> 1.12
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> Phoenix Convertible Fund Series
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 188,256
<INVESTMENTS-AT-VALUE> 199,937
<RECEIVABLES> 12,206
<ASSETS-OTHER> 4,215
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 216,358
<PAYABLE-FOR-SECURITIES> 2,342
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,783
<TOTAL-LIABILITIES> 7,125
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 171,078
<SHARES-COMMON-STOCK> 395
<SHARES-COMMON-PRIOR> 310
<ACCUMULATED-NII-CURRENT> 422
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 26,053
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 11,680
<NET-ASSETS> 209,233
<DIVIDEND-INCOME> 2,038
<INTEREST-INCOME> 6,818
<OTHER-INCOME> 0
<EXPENSES-NET> (2,402)
<NET-INVESTMENT-INCOME> 6,454
<REALIZED-GAINS-CURRENT> 26,030
<APPREC-INCREASE-CURRENT> 1,273
<NET-CHANGE-FROM-OPS> 33,757
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (178)
<DISTRIBUTIONS-OF-GAINS> (398)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 132
<NUMBER-OF-SHARES-REDEEMED> (69)
<SHARES-REINVESTED> 22
<NET-CHANGE-IN-ASSETS> 2,116
<ACCUMULATED-NII-PRIOR> 658
<ACCUMULATED-GAINS-PRIOR> 13,641
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,362
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,402
<AVERAGE-NET-ASSETS> 202,379
<PER-SHARE-NAV-BEGIN> 19.20
<PER-SHARE-NII> 0.46
<PER-SHARE-GAIN-APPREC> 2.52
<PER-SHARE-DIVIDEND> (0.49)
<PER-SHARE-DISTRIBUTIONS> (1.26)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 20.43
<EXPENSE-RATIO> 1.87
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> Phoenix Growth Fund Series
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 2,162,407
<INVESTMENTS-AT-VALUE> 2,534,454
<RECEIVABLES> 68,813
<ASSETS-OTHER> 13,312
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,616,579
<PAYABLE-FOR-SECURITIES> 10,954
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 19,314
<TOTAL-LIABILITIES> 30,268
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,716,018
<SHARES-COMMON-STOCK> 90,493
<SHARES-COMMON-PRIOR> 87,356
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 498,246
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 372,047
<NET-ASSETS> 2,586,311
<DIVIDEND-INCOME> 27,255
<INTEREST-INCOME> 13,432
<OTHER-INCOME> 0
<EXPENSES-NET> (27,859)
<NET-INVESTMENT-INCOME> 12,828
<REALIZED-GAINS-CURRENT> 499,287
<APPREC-INCREASE-CURRENT> 37,069
<NET-CHANGE-FROM-OPS> 549,184
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (17,473)
<DISTRIBUTIONS-OF-GAINS> (395,994)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10,576
<NUMBER-OF-SHARES-REDEEMED> (23,677)
<SHARES-REINVESTED> 16,238
<NET-CHANGE-IN-ASSETS> 170,818
<ACCUMULATED-NII-PRIOR> 4,798
<ACCUMULATED-GAINS-PRIOR> 403,131
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 16,440
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 27,859
<AVERAGE-NET-ASSETS> 2,489,964
<PER-SHARE-NAV-BEGIN> 26.87
<PER-SHARE-NII> 0.14
<PER-SHARE-GAIN-APPREC> 5.62
<PER-SHARE-DIVIDEND> (0.21)
<PER-SHARE-DISTRIBUTIONS> (4.59)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 27.83
<EXPENSE-RATIO> 1.10
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> Phoenix Growth Fund Series
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 2,162,407
<INVESTMENTS-AT-VALUE> 2,534,454
<RECEIVABLES> 68,813
<ASSETS-OTHER> 13,312
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,616,579
<PAYABLE-FOR-SECURITIES> 10,954
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 19,314
<TOTAL-LIABILITIES> 30,268
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,716,018
<SHARES-COMMON-STOCK> 2,473
<SHARES-COMMON-PRIOR> 1,702
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 498,246
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 372,047
<NET-ASSETS> 2,586,311
<DIVIDEND-INCOME> 27,255
<INTEREST-INCOME> 13,432
<OTHER-INCOME> 0
<EXPENSES-NET> (27,859)
<NET-INVESTMENT-INCOME> 12,828
<REALIZED-GAINS-CURRENT> 499,287
<APPREC-INCREASE-CURRENT> 37,069
<NET-CHANGE-FROM-OPS> 549,184
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (64)
<DISTRIBUTIONS-OF-GAINS> (8,267)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 939
<NUMBER-OF-SHARES-REDEEMED> (494)
<SHARES-REINVESTED> 326
<NET-CHANGE-IN-ASSETS> 22,696
<ACCUMULATED-NII-PRIOR> 4,798
<ACCUMULATED-GAINS-PRIOR> 403,131
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 16,440
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 27,859
<AVERAGE-NET-ASSETS> 2,489,964
<PER-SHARE-NAV-BEGIN> 26.63
<PER-SHARE-NII> (0.06)
<PER-SHARE-GAIN-APPREC> 5.57
<PER-SHARE-DIVIDEND> (0.04)
<PER-SHARE-DISTRIBUTIONS> (4.59)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 27.51
<EXPENSE-RATIO> 1.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> Phoenix High Yield Fund Series
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 579,341
<INVESTMENTS-AT-VALUE> 585,559
<RECEIVABLES> 55,921
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 641,480
<PAYABLE-FOR-SECURITIES> 47,420
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8,970
<TOTAL-LIABILITIES> 56,390
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 658,238
<SHARES-COMMON-STOCK> 58,643
<SHARES-COMMON-PRIOR> 58,078
<ACCUMULATED-NII-CURRENT> 1,921
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (81,287)
<ACCUM-APPREC-OR-DEPREC> 6,218
<NET-ASSETS> 585,090
<DIVIDEND-INCOME> 1,605
<INTEREST-INCOME> 54,792
<OTHER-INCOME> 0
<EXPENSES-NET> (6,609)
<NET-INVESTMENT-INCOME> 49,788
<REALIZED-GAINS-CURRENT> 43,737
<APPREC-INCREASE-CURRENT> (14,878)
<NET-CHANGE-FROM-OPS> 78,647
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (47,205)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 19,096
<NUMBER-OF-SHARES-REDEEMED> (21,234)
<SHARES-REINVESTED> 2,704
<NET-CHANGE-IN-ASSETS> 31,641
<ACCUMULATED-NII-PRIOR> 2,038
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (81,117)
<GROSS-ADVISORY-FEES> 3,713
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,609
<AVERAGE-NET-ASSETS> 571,288
<PER-SHARE-NAV-BEGIN> 8.63
<PER-SHARE-NII> 0.80
<PER-SHARE-GAIN-APPREC> 0.46
<PER-SHARE-DIVIDEND> (0.80)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.09
<EXPENSE-RATIO> 1.11
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> Phoenix High Yield Fund Series
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 579,341
<INVESTMENTS-AT-VALUE> 585,559
<RECEIVABLES> 55,921
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 641,480
<PAYABLE-FOR-SECURITIES> 47,420
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8,970
<TOTAL-LIABILITIES> 56,390
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 658,238
<SHARES-COMMON-STOCK> 5,754
<SHARES-COMMON-PRIOR> 2,964
<ACCUMULATED-NII-CURRENT> 1,921
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (81,287)
<ACCUM-APPREC-OR-DEPREC> 6,218
<NET-ASSETS> 585,090
<DIVIDEND-INCOME> 1,605
<INTEREST-INCOME> 54,792
<OTHER-INCOME> 0
<EXPENSES-NET> (6,609)
<NET-INVESTMENT-INCOME> 49,788
<REALIZED-GAINS-CURRENT> 43,737
<APPREC-INCREASE-CURRENT> (14,878)
<NET-CHANGE-FROM-OPS> 78,647
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,143)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,405
<NUMBER-OF-SHARES-REDEEMED> (1,758)
<SHARES-REINVESTED> 143
<NET-CHANGE-IN-ASSETS> 26,589
<ACCUMULATED-NII-PRIOR> 2,038
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (81,117)
<GROSS-ADVISORY-FEES> 3,713
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,609
<AVERAGE-NET-ASSETS> 571,288
<PER-SHARE-NAV-BEGIN> 8.63
<PER-SHARE-NII> 0.73
<PER-SHARE-GAIN-APPREC> 0.46
<PER-SHARE-DIVIDEND> (0.75)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.07
<EXPENSE-RATIO> 1.86
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> Phoenix Money Market Fund Series
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 198,504
<INVESTMENTS-AT-VALUE> 198,504
<RECEIVABLES> 8,019
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 206,523
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,815
<TOTAL-LIABILITIES> 2,815
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 203,708
<SHARES-COMMON-STOCK> 188,695
<SHARES-COMMON-PRIOR> 192,859
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 203,708
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 10,949
<OTHER-INCOME> 0
<EXPENSES-NET> (1,642)
<NET-INVESTMENT-INCOME> 9,307
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 9,307
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (8,890)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 732,055
<NUMBER-OF-SHARES-REDEEMED> (744,358)
<SHARES-REINVESTED> 8,139
<NET-CHANGE-IN-ASSETS> (4,164)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 788
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,642
<AVERAGE-NET-ASSETS> 197,026
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.048
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.048)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.79
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> Phoenix Money Market Fund Series
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 198,504
<INVESTMENTS-AT-VALUE> 198,504
<RECEIVABLES> 8,019
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 206,523
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,815
<TOTAL-LIABILITIES> 2,815
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 203,708
<SHARES-COMMON-STOCK> 15,013
<SHARES-COMMON-PRIOR> 10,223
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 203,708
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 10,949
<OTHER-INCOME> 0
<EXPENSES-NET> (1,642)
<NET-INVESTMENT-INCOME> 9,307
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 9,307
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (417)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 35,540
<NUMBER-OF-SHARES-REDEEMED> (31,078)
<SHARES-REINVESTED> 329
<NET-CHANGE-IN-ASSETS> 4,790
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 788
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,642
<AVERAGE-NET-ASSETS> 197,026
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.040
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> (0.040)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 1.55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000019469
<NAME> Phoenix Aggressive Growth Fund Series
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 243,453
<INVESTMENTS-AT-VALUE> 258,447
<RECEIVABLES> 1,662
<ASSETS-OTHER> 20,093
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 280,202
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 20,588
<TOTAL-LIABILITIES> 20,588
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 192,875
<SHARES-COMMON-STOCK> 14,304
<SHARES-COMMON-PRIOR> 13,864
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 51,745
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 14,994
<NET-ASSETS> 259,614
<DIVIDEND-INCOME> 856
<INTEREST-INCOME> 816
<OTHER-INCOME> 0
<EXPENSES-NET> (3,078)
<NET-INVESTMENT-INCOME> (1,406)
<REALIZED-GAINS-CURRENT> 54,156
<APPREC-INCREASE-CURRENT> (8,722)
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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