[FRONT COVER]
April 30, 1997
PHOENIX
FUNDS
SEMIANNUAL REPORT
Phoenix Series Fund
[triangle] BALANCED FUND SERIES
[triangle] CONVERTIBLE FUND SERIES
[triangle] GROWTH FUND SERIES
[triangle] AGGRESSIVE GROWTH FUND SERIES
[triangle] HIGH YIELD FUND SERIES
[triangle] U.S. GOVERNMENT SECURITIES FUND SERIES
[triangle] MONEY MARKET FUND SERIES
[LOGO] PHOENIX
DUFF & PHELPS
<PAGE>
Table of Contents
Page
Equity Funds
The Balanced Fund Series 2
The Convertible Fund Series 11
The Growth Fund Series 18
The Aggressive Growth Fund Series 25
Fixed Income Funds
The High Yield Fund Series 31
The U.S. Government Securities Fund Series 38
The Money Market Fund Series 43
Notes to Financial Statements 49
Fund Features and General Information 52
<PAGE>
Chairman's
Message
Dear Shareholder:
We are pleased to provide this consolidated report for the Phoenix Series Fund
for the six months ended April 30, 1997. This has been a particularly volatile
period for both the stock and bond markets, and we realize that these dramatic
up and down movements may have caused you some concern. Perhaps the best way to
deal with market fluctuations is to keep in mind a few "basics of investing."
Remain focused on your long-term investment strategy. Redeeming an investment
when the market drops or a fund's share price falls can work against you over
time. You could miss out on opportunities for your investment to grow when the
market or the fund's share price begins to move up. And over time, that could
make a big difference in how successful you are in achieving your financial
goals. Of course, past performance is not a guarantee of future results.
However, it is worth remembering that since 1940 the stock market has finished
every decade at a higher level than where it began.
Diversify your portfolio. Spreading your investments among equity, bond and
money market funds helps reduce risk. If one type of investment doesn't perform
well over a certain time period, it may be offset by the good results of another
investment.
Take advantage of dollar-cost averaging. You can make market fluctuations work
to your advantage by investing a set amount of money at regular intervals. This
is called dollar-cost averaging, and it means that when prices are low you will
be buying more shares and when prices are high, you'll buy fewer. You should
note that periodic investment plans don't assure a profit or protect against a
loss in declining markets. This type of plan involves continuous investments in
securities regardless of fluctuating price levels. You should also consider your
financial ability to continue purchases through periods of low price levels.
Our mission is to help you achieve your long-term financial goals. We will
continue to manage your fund as we have in the past, providing professionally
managed, carefully constructed portfolios. On behalf of the Phoenix Funds, I
want to thank you for investing with us. We look forward to continuing to serve
your investment needs.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
President and Chairman
Phoenix Series Fund
<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
For the six months ended April 30, 1997, Phoenix Balanced Fund Class A shares
provided a total return of 5.38% and Class B shares earned 4.98%. Despite these
solid gains, the Fund trailed its composite benchmark, which returned 8.90%. The
benchmark is based on the performance of the following composite: 55% S&P 500
Stock Index, 35% Lehman Brothers Aggregate Bond Index and 10% 90-day Treasury
bills. All of these figures assume reinvestment of dividends and exclude the
effect of sales charges.
In the face of increased market volatility, blue-chip stocks continued to
produce strong returns and have significantly outdistanced their mid- and
small-cap counterparts. The bond market provided somewhat disappointing results
as signs of a stronger economy and the Fed's recent rate hike turned investors
increasingly more negative.
During this reporting period, the Fund benefited from strong stock selection
in the financial services and consumer staples groups as well as strong relative
performance from the fixed-income segment of the portfolio. Individual stocks
which produced good gains for the Fund over this reporting period included CVS,
Johnson & Johnson, Conseco and Procter & Gamble. The portfolio's equity exposure
in the technology and energy sectors was the primary cause of the Fund's
underperformance, but we continue to believe the long-term fundamental outlook
for these sectors is positive.
OUTLOOK
Looking ahead, we expect a slower domestic economy in the second half of the
year and continued market leadership from blue-chip growth stocks. Although many
of these stocks have had a strong run-up, we believe there is still significant
upside potential as investors remain focused on liquidity and earnings
stability. The Fund continues to take a thematic approach to identifying
companies with above-average growth potential. Our current emphasis is on
large-cap stocks within the 21st Century Medicine, Deregulating Financial
Services and Energy Technology themes.
The fixed-income portion is well-diversified in a number of traditional and
non-traditional sectors of the bond market. The average credit quality remains
AA, and the Fund's duration is approximately 6.3 years. As of April 30, the Fund
was 57% invested in equities, 31% fixed-income and 12% cash equivalents.
2
<PAGE>
Phoenix Balanced Fund Series
- --------------------------------------------------------------------------------
INVESTMENTS AT APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- ----------- ---------------
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES--14.8%
U.S. Treasury Bonds--4.5%
U.S. Treasury Strip P.O., 0%, '22 AAA $200,000 $ 33,252,000
--------------
U.S. Treasury Notes--6.0%
U.S. Treasury Notes 6.875%, '00 AAA 61,000 61,706,380
U.S. Treasury Notes 6.625%, '02 AAA 40,000 40,087,480
U.S. Treasury Notes 6.50%, '06 AAA 44,005 43,245,474
--------------
145,039,334
--------------
Agency Mortgage-Backed Securities--4.3%
GNMA 6.50%, '23-'26 AAA 79,134 74,809,384
--------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
(Identified cost $256,689,250) 253,100,718
--------------
NON-CONVERTIBLE BONDS--7.5%
Asset-Backed Securities--1.5%
Airplanes Pass Through Trust 1D 10.875%, '19 BB 2,050 2,266,398
Fleetwood Credit Corp. 96-B, Class A 6.90%, '12 AAA 3,607 3,609,921
Green Tree Financial Corp. 96-4, A6 7.40%, '27 AAA 4,500 4,469,062
Green Tree Financial Corp. 96-2, M1 7.60%, '27 AA- 9,150 9,098,531
Green Tree Financial Corp. 96-4, M1 7.75%, '27 AA- 3,475 3,537,984
TLFC Equipment Lease Trust 96-1, A 5.98%, '02 AAA 2,464 2,450,149
--------------
25,432,045
--------------
Non-Agency Mortgage-Backed Securities--5.7%
CS First Boston Mortgage 95-AE, B 7.182%, '27 AA 6,260 6,170,012
Chase Commerical Mortgage Securities Corp. 96-2, A1 6.70%, '03 AAA 1,063 1,047,799
DLJ Mortgage Acceptance Corp. 96-CF1, A1B 144A 7.58%, '28 (c) AAA 4,975 5,069,836
G.E. Capital Mortgage Service 96-8, M 7.25%, '26 AA 5,158 4,985,457
Nationslink Funding Corp. 96-1, B 7.69%, '05 AA 5,907 5,999,278
Prudential Home Mortgage Securities 93-L, 2B3 144A 6.641%, '23 (c) A(d) 5,000 4,704,688
Residential Asset Securitization Trust 96-A8, A1 8%, '26 AAA 3,902 3,935,218
Residential Funding Mortgage 96-S8, A-4 6.75%, '11 AAA 2,730 2,642,591
Residential Funding Mortgage 96-S1, A11 7.10%, '26 AAA 7,000 6,727,656
Residential Funding Mortgage 96-S4, M1 7.25%, '26 AA $ 5,665 $ 5,459,848
Resolution Trust Corp. 93-C1, B 8.75%, '24 AA(d) 5,675 5,666,133
Resolution Trust Corp. 95-C2, B 6.80%, '27 AA(d) 14,088 13,568,945
Resolution Trust Corp. 95-2, M2 7.009%, '29 AA(d) 4,502 4,457,323
Securitized Asset Sales 93-J, 2B 6.808%, '23 A(d) 7,282 6,760,475
Structured Asset Securities Corp. 93-C1, B 6.60%, '24 A+ 4,415 4,219,432
Structured Asset Securities Corp. 95-C1, C 7.375%, '24 A 10,151 10,116,106
Structured Asset Securities Corp. 95-C4, B 7%, '26 AA 5,000 4,939,062
--------------
96,469,859
--------------
Paper & Forest Products--0.2%
Buckeye Cellulose Corp. 9.25%, '08 BB- 4,185 4,258,237
--------------
Truckers & Marine--0.1%
Teekay Shipping Corp. 8.32%, '08 BB 1,675 1,641,500
--------------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $128,434,417) 127,801,641
--------------
FOREIGN GOVERNMENT SECURITIES--3.6%
Argentina--0.8%
Republic of Argentina Discount L-GL Euro 6.375%, '23 (f) BB 8,000 6,620,000
Republic of Argentina Global Bond 11.375%, '17 BB 800 849,800
Republic of Argentina Par L-GP 5.25%, '23 (f) BB 9,750 6,361,875
--------------
13,831,675
--------------
Brazil--0.6%
Republic of Brazil Discount Series Z-L Euro 6.875%, '24 (f) BB 6,500 5,236,563
Republic of Brazil Par Z-L Euro 5%, '24 (f) B(d) 6,600 4,215,750
--------------
9,452,313
--------------
Colombia--0.8%
Republic of Colombia 7.25%, '03 BBB- 8,950 8,435,375
Republic of Colombia Euro 9%, '97 BBB- 5,000 5,001,050
--------------
13,436,425
--------------
See Notes to Financial Statements
3
<PAGE>
Mexico--0.8%
United Mexican States 144A 7.625%, '01 (c) (f) Baa(d) $ 4,235 $ 4,290,055
United Mexican States Discount B Euro 6.375%, '19 (e) (f) BB 8,500 7,533,125
United Mexican States Series B Euro 6.25%, '19 (e) BB 3,500 2,544,062
--------------
14,367,242
--------------
Venezuela--0.6%
Republic of Venezuela Discount 6.813%, '20 (e) (f) Ba(d) 6,500 5,350,313
Republic of Venezuela Par 6.75%, '20 (e) Ba(d) 7,200 5,224,500
--------------
10,574,813
--------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $58,736,669) 61,662,468
--------------
FOREIGN NON-CONVERTIBLE BONDS--0.6%
Chile--0.2%
Petropower I Funding Trust 144A 7.36%, '14 (Utility-Gas) (c) BBB 2,900 2,724,115
--------------
Indonesia--0.2%
Asia Pulp & Paper Co. Yankee 11.75%, '05 (Paper & Forest Products) BB 3,545 3,744,406
--------------
Netherlands--0.2%
Astra Overseas Financial 144A 8.75%, '03 (Diversified Financial
Services) (c) NR 4,100 4,141,000
--------------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $10,486,635) 10,609,521
--------------
MUNICIPAL BONDS--2.6%
California--1.7%
Kern County Pension Obligation Taxable 7.26%, '14 AAA 6,830 6,565,064
Long Beach Pension Obligation Taxable 6.87%, '06 AAA 3,090 3,029,869
Orange County Pension Series A Taxable 7.62%, '08 AAA 9,545 9,678,725
San Bernardino County Obligation Revenue Taxable 6.87%, '08 AAA 1,480 1,432,226
San Bernardino County Obligation Revenue Taxable 6.94%, '09 AAA 4,035 3,914,353
Ventura County Pension Taxable 6.58%, '06 AAA 3,560 3,422,406
--------------
28,042,643
--------------
Florida--0.8%
Miami Beach Special Obligation Taxable 8.60%, '21 AAA $11,675 $12,485,712
University of Miami Exchange Revenue Taxable A 7.65%, '20 AAA 1,940 1,897,999
--------------
14,383,711
--------------
Virginia--0.1%
Newport News Taxable Series B 7.05%, '25 AA- 1,500 1,358,145
--------------
TOTAL MUNICIPAL BONDS
(Identified cost $44,833,620) 43,784,499
--------------
CONVERTIBLE BONDS--0.6%
Retail--0.6%
Staples, Inc. Sub. Cv. 144A 4.50%, '00 (c) B+ 10,000 10,337,500
--------------
TOTAL CONVERTIBLE BONDS
(Identified cost $10,000,000) 10,337,500
--------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
---------
<S> <C> <C>
PREFERRED STOCKS--1.5%
REITS--1.5%
Home Ownership Funding 2, Step-down Pfd. 144A 13.338% (c) 20,000 19,599,520
Marquette Real Estate Fund, Step-down Pfd. 144A 13.701% (c) 6,000 5,902,560
--------------
25,502,080
--------------
TOTAL PREFERRED STOCKS
(Identified cost $25,931,877) 25,502,080
--------------
COMMON STOCKS--55.7%
Aerospace & Defense--1.3%
Boeing Co. 83,600 8,245,050
Sundstrand Corp. 92,100 4,489,875
United Technologies Corp. 113,400 8,575,875
--------------
21,310,800
--------------
Banks--2.1%
Citicorp 90,400 10,181,300
Mellon Bank Corp. 144,400 12,003,250
Nationsbank Corp. 236,400 14,272,650
--------------
36,457,200
--------------
Beverages--1.4%
Anheuser-Busch Co., Inc. 57,800 2,478,175
PepsiCo, Inc. 629,400 21,950,325
--------------
24,428,500
--------------
Chemical--1.5%
Du Pont (E.I.) de Nemours & Co. 160,000 16,980,000
Monsanto Co. 88,000 3,762,000
Philip Environmental, Inc. (b) 343,100 5,403,825
--------------
26,145,825
--------------
</TABLE>
See Notes to Financial Statements
4
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------------
<S> <C> <C>
Chemical--Specialty--0.2%
Praxair, Inc. 75,000 $ 3,871,875
--------------
Computer Software & Services--3.1%
Adobe Systems, Inc. 78,100 3,055,662
HBO & Co. 166,900 8,929,150
Microsoft Corp. (b) 338,800 41,164,200
--------------
53,149,012
--------------
Conglomerates--1.2%
Thermo Electron Corp. (b) 84,200 2,904,900
Tyco International Ltd. 297,900 18,171,900
--------------
21,076,800
--------------
Cosmetics & Soaps--2.6%
Colgate Palmolive Co. 94,800 10,522,800
Gillette Co. 202,300 17,195,500
Procter & Gamble Co. 133,500 16,787,625
--------------
44,505,925
--------------
Diversified Financial Services--2.1%
Conseco, Inc. 210,500 8,709,437
Franklin Resources, Inc. 154,800 9,152,550
MBNA Corp. 277,100 9,144,300
T. Rowe Price Associates 207,400 9,592,250
--------------
36,598,537
--------------
Electrical Equipment--1.6%
General Electric Co. 165,600 18,360,900
Honeywell, Inc. 119,800 8,460,875
--------------
26,821,775
--------------
Electronics--3.6%
3Com Corp. (b) 141,200 4,094,800
Altera Corp. (b) 70,500 3,494,156
Intel Corp. 137,300 21,024,062
Micron Technology, Inc. 166,500 5,869,125
PairGain Technologies, Inc. (b) 136,100 3,538,600
Perkin Elmer Corp. 245,500 17,829,438
Texas Instruments, Inc. 59,800 5,337,150
--------------
61,187,331
--------------
Entertainment, Leisure & Gaming--0.6%
Time Warner, Inc. 37,800 1,701,000
Walt Disney Co. 103,900 8,519,800
--------------
10,220,800
--------------
Healthcare--Diversified--1.1%
Bristol-Myers Squibb Co. 273,900 17,940,450
--------------
Healthcare--Drugs--4.0%
Amgen, Inc. (b) 205,775 12,115,003
Eli Lilly & Co. 70,400 6,186,400
Merck & Co., Inc. 343,900 31,122,950
Pfizer, Inc. 191,200 18,355,200
--------------
67,779,553
--------------
Hospital Management & Services--0.8%
Columbia/HCA Healthcare Corp. 381,550 13,354,250
--------------
Insurance--2.8%
Allstate Corp. 215,800 14,134,900
ITT Hartford Group, Inc. 203,000 15,123,500
St. Paul Companies, Inc. 51,900 $ 3,477,300
SunAmerica, Inc. 314,700 14,476,200
--------------
47,211,900
--------------
Machinery--0.7%
Deere & Co. 264,200 12,153,200
--------------
Medical Products & Supplies--4.1%
Abbott Laboratories 200,000 12,200,000
Baxter International, Inc. 378,400 18,115,900
Boston Scientific Corp. (b) 250,000 12,062,500
Cardinal Health, Inc. (b) 175,800 9,361,350
Johnson & Johnson 307,400 18,828,250
--------------
70,568,000
--------------
Natural Gas--1.0%
Anadarko Petroleum Corp. 102,000 5,597,250
Apache Corp. 155,200 5,276,800
Columbia Gas System, Inc. 88,600 5,482,125
--------------
16,356,175
--------------
Office & Business Equipment--1.1%
International Business Machines Corp. 75,600 12,152,700
Sun Microsystems, Inc. (b) 245,400 7,070,588
--------------
19,223,288
--------------
Oil--2.8%
Amoco Corp. 100,000 8,362,500
Exxon Corp. 681,500 38,589,938
--------------
46,952,438
--------------
Oil Service & Equipment--3.3%
Baker Hughes, Inc. 301,900 10,415,550
ENSCO International, Inc. (b) 172,400 8,189,000
Halliburton Co. 219,500 15,502,188
Schlumberger Ltd. 79,400 8,793,550
Tidewater, Inc. 148,800 5,970,600
Transocean Offshore, Inc. 109,600 6,644,500
--------------
55,515,388
--------------
Paper & Forest Products--0.7%
Kimberly Clark Corp. 237,700 12,182,125
--------------
Pollution Control--0.8%
Republic Industries, Inc. (b) 133,000 3,300,062
U.S. Filter Corp. (b) 345,900 10,506,712
--------------
13,806,774
--------------
Professional Services--1.2%
Corrections Corporation of America (b) 49,200 1,605,150
HFS, Inc. (b) 305,850 18,121,613
--------------
19,726,763
--------------
Publishing, Broadcasting, Printing & Cable--1.2%
Gannett Co., Inc. 98,800 8,620,300
New York Times Co. Class A 281,900 12,192,175
--------------
20,812,475
--------------
REITS--0.5%
Crescent Real Estate Equities Trust 208,750 5,479,688
Redwood Trust, Inc. 69,600 3,271,200
--------------
8,750,888
--------------
See Notes to Financial Statements
5
<PAGE>
Retail--3.4%
Borders Group, Inc. (b) 207,500 $ 4,409,375
CVS Corp. 186,100 9,235,212
Home Depot, Inc. 291,700 16,918,600
Lowe's Companies, Inc. 223,400 8,489,200
Staples, Inc. (b) 572,800 10,310,400
Wal-Mart Stores, Inc. 303,700 8,579,525
--------------
57,942,312
--------------
Retail-Food--1.1%
Quality Food Centers, Inc. (b) 100,000 4,012,500
Safeway, Inc. (b) 344,200 15,359,925
--------------
19,372,425
--------------
Telecommunications Equipment--2.4%
Ascend Communications, Inc. (b) 283,500 12,970,125
Cisco Systems, Inc. (b) 327,150 16,930,012
Lucent Technologies, Inc. 184,200 10,890,825
--------------
40,790,962
--------------
Textile & Apparel--0.9%
Nike, Inc. Class B 269,650 15,167,813
--------------
Utility-Telephone--0.5%
Ameritech Corp. 65,000 3,973,125
Bell Atlantic Corp. 60,000 4,065,000
--------------
8,038,125
--------------
TOTAL COMMON STOCKS
(Identified cost $910,613,945) 949,419,684
--------------
FOREIGN COMMON STOCKS--0.7%
Electronics--0.1%
Philips Electronics NV ADR NY Registered (Netherlands) 36,100 1,931,350
--------------
Oil--0.6%
Royal Dutch Petroleum Co. ADR NY Registered (Netherlands) 57,400 10,346,350
--------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $11,142,134) 12,277,700
--------------
TOTAL LONG-TERM INVESTMENTS--87.6%
(Identified cost $1,456,868,547) 1,494,495,811
--------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- -------- ---------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--14.6%
Commercial Paper--12.1%
Potomac Electric Power Co. 5.50%, 5-1-97 A-1 $ 2,100 2,100,000
Exxon Imperial U.S., Inc. 5.47%, 5-2-97 A-1+ 2,110 2,109,679
Exxon Imperial U.S., Inc. 5.55%, 5-2-97 A-1+ 15,415 15,412,624
Du Pont (E.I.) de Nemours & Co. 5.28%, 5-5-97 A-1+ 2,880 2,878,310
Du Pont (E.I.) de Nemours & Co. 5.43%, 5-5-97 A-1+ 1,700 1,698,974
Southwestern Bell Telephone Co. 5.47%, 5-5-97 A-1+ 9,620 9,614,153
AlliedSignal, Inc. 5.49%, 5-6-97 A-1 $ 1,620 $ 1,618,765
Bellsouth Telecommunications, Inc. 5.50%, 5-7-97 A-1+ 6,120 6,114,390
Du Pont (E.I.) de Nemours & Co. 5.50%, 5-7-97 A-1+ 9,620 9,611,182
Procter & Gamble Co. 5.45%, 5-8-97 A-1+ 6,980 6,972,603
AlliedSignal, Inc. 5.49%, 5-9-97 A-1 3,890 3,885,254
Amoco Co. 5.45%, 5-9-97 A-1+ 655 654,207
Cargill, Inc. 5.45%, 5-9-97 A-1+ 10,000 9,987,889
Corporate Asset Funding Co., Inc. 5.53%, 5-9-97 A-1+ 2,745 2,741,627
Greenwich Funding Corp. 5.52%, 5-12-97 A-1+ 800 798,651
CXC, Inc. 5.35%, 5-15-97 A-1+ 2,700 2,693,918
Enterprise Funding Corp. 5.52%, 5-16-97 A-1+ 6,043 6,029,101
Coca-Cola Co. 5.45%, 5-19-97 A-1+ 10,000 9,972,750
Pitney Bowes Credit Corp. 5.35%, 5-19-97 A-1+ 1,615 1,610,397
Abbott Laboratories 5.43%, 5-21-97 A-1+ 6,895 6,874,200
Preferred Receivables Funding Corp. 5.52%, 5-21-97 A-1 5,000 4,984,667
Kellogg Co. 5.45%, 5-23-97 A-1+ 4,665 4,649,463
Pitney Bowes Credit Corp. 5.55%, 5-23-97 A-1+ 3,400 3,388,468
Exxon Imperial U.S., Inc. 5.48%, 5-27-97 A-1+ 10,000 9,960,422
AlliedSignal, Inc. 5.52%, 5-28-97 A-1 10,000 9,958,600
Minnesota Mining & Manufacturing Co. 5.50%, 5-29-97 A-1+ 4,850 4,829,253
Corporate Receivables Corp. 5.56%, 6-2-97 A-1 5,000 4,975,289
CXC, Inc. 5.34%, 6-3-97 A-1+ 3,000 2,984,248
Potomac Electric Power Co. 5.53%, 6-3-97 A-1 7,550 7,511,728
Corporate Receivables Corp. 5.55%, 6-5-97 A-1 8,000 7,956,833
General RE Corp. 5.55%, 6-9-97 A-1+ 5,250 5,218,434
Receivables Capital Corp. 5.58%, 6-9-97 A-1+ 8,000 7,951,640
Preferred Receivables Funding Corp. 5.34%, 6-11-97 A-1+ 5,000 4,966,916
Preferred Receivables Funding Corp. 5.32%, 6-16-97 A-1+ 3,500 3,474,273
Corporate Asset Funding Co., Inc. 5.57%, 6-18-97 A-1+ 3,280 3,255,641
Beta Finance, Inc. 5.62%, 7-17-97 A-1+ 5,000 4,939,550
See Notes to Financial Statements
6
<PAGE>
Commercial Paper--continued
Schering Corp. 5.61%, 8-19-97 A-1+ $ 7,210 $ 7,083,970
Pitney Bowes Credit Corp. 5.67%, 9-15-97 A-1+ 5,000 4,891,350
--------------
206,359,419
--------------
Federal Agency Securities--2.5%
Federal Home Loan Mortgage Corp. 5.42%, 5-13-97 9,385 9,368,044
Federal Farm Credit Bank 5.39%, 5-15-97 1,915 1,910,986
Federal Home Loan Banks 5.35%, 5-15-97 10,660 10,637,821
Federal National Mortgage Assoc. 5.28%, 6-5-97 5,390 5,360,258
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
-------- -----------------
<S> <C> <C>
Federal Agency Securities--continued
Federal Farm Credit Bank 5.73%, 11-3-97 (f) $ 5,000 $ 5,006,800
Federal Home Loan Banks 5.86%, 3-17-98 10,000 9,994,100
----------------
42,278,009
----------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $248,647,578) 248,637,428
----------------
TOTAL INVESTMENTS--102.2%
(Identified cost $1,705,516,125) 1,743,133,239(a)
Cash and receivables, less liabilities--(2.2%) (36,901,574)
----------------
NET ASSETS--100.0% $1,706,231,665
================
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $76,555,149 and gross
depreciation of $40,435,497 for income tax purposes. At April 30, 1997, the
aggregate cost of securities for federal income tax purposes was
$1,707,013,587.
(b) Non-income producing.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30, 1997,
these securities amounted to a value of $56,769,274 or 3.3% of net assets.
(d) As rated by Moody's, Fitch or Duff and 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>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
(Unaudited)
Assets
Investment securities at value
(Identified cost $1,705,516,125) $1,743,133,239
Short-term investments held as collateral for loaned
securities 25,177,071
Cash 181,400
Receivables
Investment securities sold 25,187,671
Dividends and interest 5,039,399
Fund shares sold 173,813
--------------
Total assets 1,798,892,593
--------------
Liabilities
Payables
Investment securities purchased 62,636,725
Collateral on securities loaned 25,177,071
Fund shares repurchased 2,821,729
Investment advisory fee 729,618
Transfer agent fee 613,063
Distribution fee 360,637
Financial agent fee 31,094
Trustees' fee 5,017
Accrued expenses 285,974
--------------
Total liabilities 92,660,928
--------------
Net Assets $1,706,231,665
==============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $1,506,496,127
Undistributed net investment income 2,901,152
Accumulated net realized gain 159,217,272
Net unrealized appreciation 37,617,114
--------------
Net Assets $1,706,231,665
==============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $1,678,974,767) 102,747,686
Net asset value per share $16.34
Offering price per share
$16.34/(1-4.75%) $17.15
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $27,256,898) 1,670,283
Net asset value and offering price per share $16.32
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997
(Unaudited)
Investment Income
Interest $ 27,312,008
Dividends 5,731,233
Security lending 470,136
--------------
Total investment income 33,513,377
--------------
Expenses
Investment advisory fee 4,780,607
Distribution fee--Class A 2,232,742
Distribution fee--Class B 134,353
Financial agent fee 225,571
Transfer agent 1,541,532
Printing 204,081
Custodian 77,693
Professional 28,194
Registration 21,431
Trustees 10,253
Miscellaneous 16,805
--------------
Total expenses 9,273,262
--------------
Net investment income 24,240,115
--------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 161,169,465
Net change in unrealized appreciation (depreciation) on
investments (86,732,505)
--------------
Net gain on investments 74,436,960
--------------
Net increase in net assets resulting from operations $ 98,677,075
==============
See Notes to Financial Statements
8
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
--------------- -----------------
<S> <C> <C>
From Operations
Net investment income $ 24,240,115 $ 59,439,739
Net realized gain 161,169,465 195,766,527
Net change in unrealized appreciation (depreciation) (86,732,505) (9,808,717)
------------- ----------------
Increase in net assets resulting from operations 98,677,075 245,397,549
------------- ----------------
From Distributions to Shareholders
Net investment income--Class A (25,881,040) (62,440,078)
Net investment income--Class B (283,898) (463,570)
Net realized gains--Class A (194,005,144) (124,234,079)
Net realized gains--Class B (2,799,964) (996,128)
------------- ----------------
Decrease in net assets from distributions to shareholders (222,970,046) (188,133,855)
------------- ----------------
From Share Transactions
Class A
Proceeds from sales of shares (2,505,877 and 8,800,790 shares,
respectively) 41,680,425 149,289,059
Net asset value of shares issued from reinvestment of distributions
(12,618,724 and 10,383,411 shares, respectively) 202,902,898 172,128,352
Cost of shares repurchased (20,414,771 and 48,762,578 shares,
respectively) (340,399,173) (825,995,436)
------------- ----------------
Total (95,815,850) (504,578,025)
------------- ----------------
Class B
Proceeds from sales of shares (176,075 and 616,550 shares, respectively) 2,932,845 10,464,882
Net asset value of shares issued from reinvestment of distributions
(175,467 and 80,135 shares, respectively) 2,819,412 1,326,954
Cost of shares repurchased (175,864 and 199,574 shares, respectively) (2,926,411) (3,374,422)
------------- ----------------
Total 2,825,846 8,417,414
------------- ----------------
Decrease in net assets from share transactions (92,990,004) (496,160,611)
------------- ----------------
Net decrease in net assets (217,282,975) (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
$2,901,152 and $4,825,975, respectively) $1,706,231,665 $1,923,514,640
============= ================
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------------------
Six Months
Ended
4/30/97 Year Ended October 31,
(Unaudited) 1996 1995 1994 1993 1992
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $17.56 $17.04 $15.23 $16.64 $15.92 $16.05
Income from investment operations
Net investment income 0.23 0.48 0.52 0.48 0.46 0.52
Net realized and unrealized gain
(loss) 0.67 1.46 1.80 (1.01) 1.08 0.92
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.90 1.94 2.32 (0.53) 1.54 1.44
---------- ---------- ---------- ---------- ---------- ----------
Less distributions
Dividends from net investment
income (0.25) (0.49) (0.51) (0.49) (0.46) (0.54)
Dividends from net realized gains (1.87) (0.93) -- (0.39) (0.36) (1.03)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions (2.12) (1.42) (0.51) (0.88) (0.82) (1.57)
---------- ---------- ---------- ---------- ---------- ----------
Change in net asset value (1.22) 0.52 1.81 (1.41) 0.72 (0.13)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $16.34 $17.56 $17.04 $15.23 $16.64 $15.92
========== ========== ========== ========== ========== ==========
Total return(1) 5.38%(3) 12.03% 15.52% (3.28)% 9.92% 9.77%
Ratios/supplemental data:
Net assets, end of period
(thousands) $1,678,975 $1,897,306 $2,345,440 $2,601,808 $3,126,014 $2,146,726
Ratio to average net assets of:
Operating expenses 1.01%(2) 1.01% 1.02% 0.96% 0.95% 0.98%
Net investment income 2.68%(2) 2.74% 3.27% 3.03% 2.88% 3.55%
Portfolio turnover 116%(3) 191% 197% 159% 130% 136%
Average commission rate paid(4) $0.0544 $0.0546 N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
---------------------------------------------------
Six Months From
Ended Inception
4/30/97 Year Ended October 31, 7/15/94 to
(Unaudited) 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 0.17 0.35 0.40 0.09
Net realized and unrealized gain (loss) 0.66 1.47 1.80 (0.04)
---------- ---------- ---------- ----------
Total from investment operations 0.83 1.82 2.20 0.05
---------- ---------- ---------- ----------
Less distributions
Dividends from net investment income (0.18) (0.36) (0.42) (0.09)
Dividends from net realized gains (1.87) (0.93) -- --
---------- ---------- ---------- ----------
Total distributions (2.05) (1.29) (0.42) (0.09)
---------- ---------- ---------- ----------
Change in net asset value (1.22) 0.53 1.78 (0.04)
---------- ---------- ---------- ----------
Net asset value, end of period $16.32 $17.54 $17.01 $15.23
========== ========== ========== ==========
Total return(1) 4.98%(3) 11.24% 14.68% 0.34%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $27,257 $26,209 $16,971 $4,629
Ratio to average net assets of:
Operating expenses 1.76%(2) 1.76% 1.78% 1.65%(2)
Net investment income 1.94%(2) 1.96% 2.46% 2.36%(2)
Portfolio turnover 116%(3) 191% 197% 159%
Average commission rate paid(4) $0.0544 $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, 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
Phoenix Convertible Fund provided investors with consistent returns during
the reporting period, a period marked by increasing volatility. For the six
months ended April 30, 1997, Class A shares provided a total return of 3.95% and
Class B shares returned 3.57%. The First Boston Convertible Index* returned
3.91%. All performance figures assume reinvestment of dividends and exclude the
effect of sales charges.
Over this latest reporting cycle, the equity markets continued to post
strong gains. Large-cap companies have led the way with mid- and small-sized
companies significantly underperforming larger companies. Stock and bond market
performance continues to be fueled by rising corporate earnings and large cash
flows into mutual funds, coupled with continued strong economic growth with low
inflation.
In the convertible market, speculative-grade issues started 1997 on a very
strong note. Later in the quarter, as the equity markets pulled back from their
highs and volatility continued to increase, high-quality convertibles
outperformed speculative-grade issues, a positive for the Fund. We expect
higher-quality issues to continue to outperform in an increasingly volatile
environment.
Throughout the period, the Fund benefited from the performance of many of
the energy holdings. We continued to overweight the energy sector in the last
six months, with particular emphasis on the Energy Technology and Clean Energy
Demand themes.
Holdings within the 21st Century Medicine theme also contributed
positively to performance. Top performers included Valero Energy, Williams
Companies, Perkin Elmer and Rite Aid.
OUTLOOK
The Fund's focus continues to be on providing low-risk equity market
participation. We expect ongoing market volatility with increasing investor
concern that the economy is overheating and a Federal Reserve Board which
appears resolved to contain any perceived inflationary pressures. Our outlook
calls for a slowing domestic economy in the second half of the year without
dramatic tightening by the Fed. Our primary thematic focus continues to be on
21st Century Medicine, Energy Technology and Clean Energy Demand.
As of April 30, 1997 the Fund's asset allocation mix was 71% convertible
securities, 16% common stock and 13% cash equivalents.
* The First Boston Convertible Index generally includes 250 to 300 issues
rated "B-" or better by Standard & Poor's, with a minimum issue size of
$50 million.
11
<PAGE>
Phoenix Convertible Fund Series
- --------------------------------------------------------------------------------
INVESTMENTS AT APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- -------------
<S> <C> <C> <C>
CONVERTIBLE BONDS--52.4%
Advertising--2.2 %
Interpublic Group Euro. Cv.
3.75%, '02 ........................... NR $2,000 $ 2,512,500
Interpublic Group Cv. 144A
3.75%, '02 (c) ........................ NR 885 1,111,781
Omnicom Group Cv. 144A
4.25%, '07 (c) ........................ A- 510 553,350
-------------
4,177,631
-------------
Auto & Truck Parts--0.5%
Pep Boys Cv. 0%, '11 ..................... BBB- 1,775 967,375
-------------
Autos & Trucks--0.6%
Volkswagen Cv. 144A 3%,
'02 (Germany) (c) ..................... A+ 1,000 1,240,000
-------------
Computer Software & Services--1.2%
EMC Corp. Cv. 144A 3.25%,
'02 (c) .............................. BB+ 1,000 1,035,000
S3, Inc. Cv. 144A 5.75%,
'03 (c) .............................. NR 1,500 1,235,625
-------------
2,270,625
-------------
Electronics--1.7 %
Analog Devices Cv. 3.50%, '00 .............. BBB 500 708,750
National Semiconductor Cv.
144A 6.50%, '02 (c) .................. BB 2,000 1,950,000
Xilinx, Inc. Cv. 144A 5.25%,
'02 (c) .............................. B 600 684,000
-------------
3,342,750
-------------
Entertainment, Leisure & Gaming--6.2%
Comcast Corp. Cv. 3.375%,
'05 (e) .............................. BB+ 4,740 4,313,400
Time Warner, Inc. Cv. 0%, '13 .............. BBB- 14,635 6,567,456
Time Warner, Inc., Hasbro Cv.
0%, '12 .............................. BBB- 3,000 1,151,250
-------------
12,032,106
-------------
Food--2.5 %
Grand Metropolitan PLC Cv.
144A 6.50%, '00 (United
Kingdom) (c) ........................... A+ 3,990 4,907,700
-------------
Healthcare--Diversified--4.2 %
Roche Holdings, Inc. Cv. 144A
0%, '10 (Switzerland) (c) ............ NR 8,000 3,660,000
Roche Holdings, Inc. Cv. 144A
0%, '12 (Switzerland) (c) ............ NR 2,250 877,500
Sandoz Capital BVI Ltd. Cv.
144A 2%, '02 (Switzerland)
(c) .................................... Aaa(d) 2,830 3,544,575
-------------
8,082,075
-------------
Hospital Management & Services--1.3%
Tenet Healthcare Cv. 6%, '05 ............ B+ $2,075 2,521,125
-------------
Insurance--2.2 %
Chubb Corp. Euro Cv. 6%, '98 ............... AA 3,250 4,176,250
-------------
Lodging & Restaurants--0.4%
Marriott International, Inc. Cv.
144A 0%, '11 (c) ..................... BBB 1,390 790,562
-------------
Medical Products & Supplies--0.4%
Heartport, Inc. Cv. 144A
7.25%, '04 (c) ........................ NR 750 787,500
-------------
Metals & Mining--2.4%
Agnico Eagle Mines Cv.
3.50%, '04 ........................... B+ 1,000 775,000
Coeur d'Alene Euro Cv.
6%, '02 .............................. B- 1,000 872,500
Inco Ltd. Cv. 7.75%, '16
(Canada) .............................. BBB- 1,385 1,452,519
Stillwater Mining Co. Cv.
7%, '03 .............................. NR 1,500 1,522,500
-------------
4,622,519
-------------
Natural Gas--2.7%
Apache Corp. Cv. 144A 6%,
'02 (c) .............................. BBB 1,500 1,798,125
Consolidated Natural Gas Co.
Cv. 7.25%, '15 ....................... A+ 3,130 3,309,975
-------------
5,108,100
-------------
Oil--0.7 %
Pennzoil Co. Series US Cv.
4.75%, '03 ........................... BBB 730 871,437
Swift Energy Co. Cv.
6.25%, '06 ........................... B- 500 458,750
-------------
1,330,187
-------------
Oil Service & Equipment--1.1%
Baker Hughes, Inc. Cv.
0%, '08 .............................. A- 600 442,500
Nabors Industries, Inc. Cv.
5%, '06 .............................. BBB- 805 986,125
Pride Petroleum Services, Inc.
Cv. 6.25%, '06 .......................... B 500 767,500
-------------
2,196,125
-------------
Pollution Control--6.7%
Chemical Waste Management,
Inc. Cv. 0%, '10 ...................... A- 14,150 6,367,500
U.S.A. Waste Services, Inc. Cv.
4%, '02 .............................. BBB- 2,650 2,600,313
WMX Technologies, Inc. Sub.
Notes Cv. 2%, '05 ..................... A- 4,485 3,879,525
-------------
12,847,338
-------------
See Notes to Financial Statements
12
<PAGE>
Publishing, Broadcasting, Printing & Cable--1.9%
Hollinger, Inc., (LYONs) Cv.
0%, '13 .................................... BB- $6,000 $ 2,175,000
Times Mirror Co. Cv. 144A
0%, '17 (c) ................................. A 3,500 1,386,875
-------------
3,561,875
-------------
Retail--2.6 %
Home Depot, Inc. Cv.
3.25%, '01 .................................. A+ 3,125 3,199,219
Saks Holdings, Inc. Cv.
5.50%, '06 .................................. B 1,250 1,004,687
The Sports Authority, Inc. Cv.
144A 5.25%, '01 (c) ........................ B 1,000 885,000
-------------
5,088,906
-------------
Retail--Drug--3.6 %
Rite Aid Corp. Cv. 0%, '06 ..................... BBB 9,290 6,862,988
-------------
Telecommunications Equipment--2.9%
BBN Corp. Cv. 6%, '12 ........................ B(d) 1,850 1,803,750
Motorola, Inc. Cv. 0%, '13 ..................... AA- 2,600 1,907,750
U.S. Cellular Corp. Cv. 0%, '15 ................. BBB- 6,000 1,957,500
-------------
5,669,000
-------------
Utility--Telephone--4.4 %
U.S. West, Inc. Euro Cv.
0%, '11 .................................... BBB 23,150 8,536,563
-------------
TOTAL CONVERTIBLE BONDS
(Identified cost $95,754,867) ......................................... 101,119,300
-------------
SHARES
------
CONVERTIBLE PREFERRED STOCKS--18.0%
Banks--0.5 %
H.F. Ahmanson & Co. Cv. Pfd. 6% ............................ 12,900 1,019,100
-------------
Chemical--1.0 %
Merrill Lynch, IGL (STRYPES) Cv. Pfd.
6.25% .................................................... 51,900 2,011,125
-------------
Computer Software & Services--0.4%
Microsoft Corp. Cv. Pfd. $2.196 .............................. 8,500 727,812
-------------
Conglomerates--0.5 %
USX Corp. Cv. Pfd. 6.75% .................................... 50,000 1,037,500
-------------
Hospital Products & Supplies--0.6%
McKesson Corp. Cv. Pfd. 144A $2.50 (c) ........................ 20,500 1,117,250
-------------
Insurance--1.8 %
St. Paul Capital LLC Cv. Pfd. 6% ........................... 56,000 3,444,000
-------------
Metals & Mining--1.9%
Coeur d'Alene Cv. Pfd. 7% .................................... 35,000 564,375
Freeport-McMoRan Copper Cv. Pfd. 7% ........................ 40,000 1,080,000
Inco Ltd. Series E Cv. Pfd. 5.50% (Canada) 21,600 1,088,100
Titanium Metals Cv. Pfd. 144A 6.625% (c) . 20,000 920,000
-------------
3,652,475
-------------
Natural Gas--0.5%
Nuevo Financing Series A Cv. Pfd.
5.75% .................................................... 20,000 912,500
-------------
</TABLE>
SHARES VALUE
--------- -------------
Oil--5.2 %
Chieftain International, Inc. Cv. Pfd.
$1.813 ................................. 34,900 $ 972,837
Occidental Petroleum Corp. Cv. Pfd.
144A $3.875 (c) ........................ 56,000 3,066,000
Parker & Parsley Capital LLC Cv. Pfd.
144A 6.25% (c) ........................ 20,000 1,205,000
Tosco Financing Trust Cv. Pfd. 144A
5.75 % (c) ............................ 19,700 1,078,575
Unocal Corp. Cv. Pfd. $3.125............... 25,000 1,362,500
Valero Energy Corp. Cv. Pfd. $3.125 ...... 36,000 2,340,000
-------------
10,024,912
-------------
Oil Service & Equipment--0.8%
Mesa, Inc. Series A PIK Cv. Pfd. 8% ...... 246,060 1,568,633
-------------
Publishing, Broadcasting, Printing & Cable--0.5%
Merrill Lynch, Cox (STRYPES) Cv.
Pfd. 6% .............................. 49,100 969,725
-------------
Telecommunications Equipment--2.2%
Airtouch Communication Series C Cv.
Pfd. 4.25% ........................... 65,000 2,957,500
Qualcomm, Inc. Cv. Pfd. 144A 5.75%
(c) .................................... 20,000 890,000
TCI Pacific Communications Cv.
Pfd. 5% .............................. 5,000 471,250
-------------
4,318,750
-------------
Utility--Electric--1.1 %
AES Trust I Series A Cv. Pfd. 5.375% ...... 20,000 1,092,500
California Energy Capital Trust Cv.
Pfd. 6.25% ........................... 15,000 1,061,250
-------------
2,153,750
-------------
Utility--Gas--0.5 %
MCN Energy Group, Inc. Cv. Pfd. 8.75% . 34,900 929,213
-------------
Utility--Telephone--0.5 %
U.S. West, Inc. Cv. Pfd. 4.50% .......... 21,000 937,125
-------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $33,436,867) ........................... 34,823,870
-------------
COMMON STOCKS--15.2%
Autos & Trucks--0.3%
United Auto Group, Inc. (b) ............... 34,300 570,237
-------------
Electronics--3.2 %
Perkin Elmer Corp. ........................ 79,000 5,737,375
Tektronix, Inc. ........................... 9,700 525,013
-------------
6,262,388
-------------
Metals & Mining--2.7%
Alumax, Inc. (b) ........................ 16,800 613,200
Aluminum Company of America ............... 28,600 1,998,425
Century Aluminum Co. ..................... 60,100 991,650
Kaiser Aluminum Corp. (b) ............... 56,900 611,675
Reynolds Metals Co. ..................... 9,300 631,237
Stillwater Mining Co. (b) ............... 18,600 374,325
-------------
5,220,512
-------------
Natural Gas--2.7%
Burlington Resources, Inc. ............... 22,700 961,913
Enron Corp. .............................. 24,700 929,338
See Notes to Financial Statements
13
<PAGE>
Natural Gas--continued
Equitable Resources, Inc. ............ 21,400 $ 633,975
New Jersey Resources Corp. ............ 8,100 233,887
Seagull Energy Corp. (b) ............ 32,000 548,000
Williams Companies, Inc. ............ 41,350 1,814,231
-------------
5,121,344
-------------
Office & Business Equipment--0.7%
Seagate Technology, Inc. (b) ......... 28,531 1,308,860
-------------
Oil--2.2%
Barrett Resources Corp. (b) ......... 30,500 998,875
NGC Corp. ........................... 74,000 1,304,250
Noble Affiliates, Inc. ............... 27,000 965,250
United Meridian Corp. (b) ............ 33,700 956,238
-------------
4,224,613
-------------
Oil Service & Equipment--3.0%
Baker Hughes, Inc. .................. 31,300 1,079,850
ENSCO International, Inc. (b) ......... 19,100 907,250
Marine Drilling Co., Inc. (b) ......... 28,800 453,600
Noble Drilling Corp. (b) ............ 70,893 1,231,766
Parker Drilling Co. (b) ............... 56,300 436,325
Precision Drilling Corp. (b) ......... 11,600 403,100
Reading & Bates Corp. (b) ............ 25,300 566,087
Weatherford Enterra, Inc. (b) ......... 22,100 701,675
-------------
5,779,653
-------------
Truckers & Marine--0.3%
Hvide Marine, Inc. Class A (b) ...... 37,500 646,875
-------------
Utility--Gas--0.1%
MCN Corp. ........................... 9,100 260,487
-------------
TOTAL COMMON STOCKS
(Identified cost $26,981,816) ........................ 29,394,969
-------------
FOREIGN COMMON STOCKS--1.4%
Oil--0.2%
Ensign Resource Service Group, Inc.
(Canada) (b) ..................... 23,500 411,927
-------------
Truckers & Marine--1.2%
Knightsbridge Tankers Ltd. (Bermuda) 100,000 2,275,000
-------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $2,490,838) ........................ 2,686,927
-------------
TOTAL LONG-TERM INVESTMENTS--87.0%
(Identified cost $158,664,388) ..................... 168,025,066
-------------
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- --------- --------------------
SHORT-TERM OBLIGATIONS--4.3%
Commercial Paper--4.3%
Ciesco L.P. 5.55%, 5-1-97 ... A-1+ $ 4,070 $ 4,070,000
Corporate Receivables Corp.
5.50%, 5-2-97 ............ A-1 3,000 2,999,542
Pfizer, Inc. 5.47%, 5-29-97 A-1+ 1,270 1,264,597
---------------
8,334,139
---------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $8,334,139) ........................ 8,334,139
---------------
TOTAL INVESTMENTS--91.3%
(Identified cost $166,998,527) ..................... 176,359,205(a)
Cash and receivables, less liabilities--8.7% ...... 16,904,597
---------------
NET ASSETS--100.0% ................................. $ 193,263,802
===============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $13,785,310 and gross
depreciation of $4,399,488 for income tax purposes. At April 30, 1997, the
aggregate cost of securities for federal income tax purposes was
$166,973,383.
(b) Non-income producing.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30, 1997,
these securities amounted to a value of $34,724,418 or 18.0% of net assets.
(d) As rated by Moody's.
(e) Step coupon; interest rate shown reflects the rate currently in effect.
14 See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
(Unaudited)
Assets
Investment securities at value
(Identified cost $166,998,527) $176,359,205
Short-term investments held as collateral for loaned
securities 5,561,700
Cash 1,872
Receivables
Investment securities sold 19,090,484
Dividends and interest 860,257
Fund shares sold 140,090
-------------
Total assets 202,013,608
-------------
Liabilities
Payables
Collateral on securities loaned 5,561,700
Investment securities purchased 2,842,147
Fund shares repurchased 57,877
Investment advisory fee 102,906
Transfer agent fee 58,837
Distribution fee 43,774
Financial agent fee 8,141
Trustees' fee 4,301
Accrued expenses 70,123
-------------
Total liabilities 8,749,806
-------------
Net Assets $193,263,802
=============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $176,613,420
Undistributed net investment income 322,707
Accumulated net realized gain 6,966,997
Net unrealized appreciation 9,360,678
-------------
Net Assets $193,263,802
=============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $186,438,291) 10,102,688
Net asset value per share $18.45
Offering price per share
$18.45/(1-4.75%) $19.37
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $6,825,511) 371,108
Net asset value and offering price per share $18.39
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997
(Unaudited)
Investment Income
Interest $ 3,723,744
Dividends 943,201
Security lending 7,466
-----------
Total investment income 4,674,411
-----------
Expenses
Investment advisory fee 677,788
Distribution fee--Class A 252,556
Distribution fee--Class B 32,529
Financial agent fee 45,233
Transfer agent 133,071
Printing 26,971
Professional 15,383
Custodian 13,177
Registration 10,614
Trustees 9,540
Miscellaneous 7,901
-----------
Total expenses 1,224,763
-----------
Net investment income 3,449,648
-----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 6,549,423
Net realized gain on foreign currency transactions 889
Net change in unrealized appreciation (depreciation) on
investments (1,046,490)
-----------
Net gain on investments 5,503,822
-----------
Net increase in net assets resulting from
operations $ 8,953,470
===========
See Notes to Financial Statements
15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- -----------------
<S> <C> <C>
From Operations
Net investment income $ 3,449,648 $ 8,303,695
Net realized gain 6,550,312 13,764,508
Net change in unrealized appreciation (depreciation) (1,046,490) 6,532,321
------------ ------------
Increase in net assets resulting from operations 8,953,470 28,600,524
------------ ------------
From Distributions to Shareholders
Net investment income--Class A (3,687,510) (8,803,953)
Net investment income--Class B (97,026) (164,704)
Net realized gains--Class A (12,841,408) (6,839,551)
Net realized gains--Class B (383,300) (129,752)
------------ ------------
Decrease in net assets from distributions to shareholders (17,009,244) (15,937,960)
------------ ------------
From Share Transactions
Class A
Proceeds from sales of shares (250,290 and 906,746 shares, respectively) 4,716,773 16,946,702
Net asset value of shares issued from reinvestment of distributions (730,217 and
703,569 shares, respectively) 13,578,022 12,908,037
Cost of shares repurchased (2,034,088 and 2,489,652 shares, respectively) (38,950,815) (46,749,267)
------------ ------------
Total (20,656,020) (16,894,528)
------------ ------------
Class B
Proceeds from sales of shares (75,122 and 125,709 shares, respectively) 1,419,093 2,344,422
Net asset value of shares issued from reinvestment of distributions (18,534 and
11,529 shares, respectively) 343,872 211,321
Cost of shares repurchased (32,240 and 31,996 shares, respectively) (608,058) (602,797)
------------ ------------
Total 1,154,907 1,952,946
------------ ------------
Decrease in net assets from share transactions (19,501,113) (14,941,582)
------------ ------------
Net decrease in net assets (27,556,887) (2,279,018)
Net Assets
Beginning of period 220,820,689 223,099,707
------------ ------------
End of period (including undistributed net investment income of
$322,707 and $657,595, respectively) $193,263,802 $220,820,689
============ ============
</TABLE>
16 See Notes to Financial Statements
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
------------------------------------------------------------------------------------
Six Months
Ended
4/30/97 Year Ended October 31,
(Unaudited) 1996 1995 1994 1993 1992
----------------- --------------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.26 $ 18.23 $ 17.56 $ 19.34 $ 18.86 $ 18.36
Income from investment operations
Net investment income 0.31(4) 0.70(4) 0.87 0.78 0.68 0.77
Net realized and unrealized gain (loss) 0.46 1.68 1.04 (1.06) 1.53 1.54
----------- ------------ --------- ----------- --------- ---------
Total from investment operations 0.77 2.38 1.91 (0.28) 2.21 2.31
----------- ------------ --------- ----------- --------- ---------
Less distributions
Dividends from net investment income (0.36) (0.77) (1.05) (0.69) (0.73) (0.72)
Dividends from net realized gains (1.22) (0.58) (0.19) (0.81) (1.00) (1.09)
----------- ------------ --------- ----------- --------- ---------
Total distributions (1.58) (1.35) (1.24) (1.50) (1.73) (1.81)
----------- ------------ --------- ----------- --------- ---------
Change in net asset value (0.81) 1.03 0.67 (1.78) 0.48 0.50
----------- ------------ --------- ----------- --------- ---------
Net asset value, end of period $ 18.45 $ 19.26 $ 18.23 $ 17.56 $ 19.34 $ 18.86
=========== ============ ========= =========== ========= =========
Total return(1) 3.95%(3) 13.55% 11.45% (1.48)% 12.58% 13.77%
Ratios/supplemental data:
Net assets, end of period (thousands) $186,438 $214,874 $219,384 $226,294 $252,072 $200,944
Ratio to average net assets of:
Operating expenses 1.15%(2) 1.17% 1.18% 1.14% 1.15% 1.20%
Net investment income 3.33%(2) 3.75% 4.78% 4.27% 3.70% 4.28%
Portfolio turnover 60%(3) 141% 79% 91% 94% 200%
Average commission rate paid(5) $ 0.0585 $ 0.0619 N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
------------------------------------------------------------------
Six Months From
Ended Inception
4/30/97 Year Ended October 31, 7/15/94 to
(Unaudited) 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 0.24(4) 0.55(4) 0.70(4) 0.15
Net realized and unrealized gain (loss) 0.45 1.68 1.07 (0.06)
--------- ----------- -------- ------
Total from investment operations 0.69 2.23 1.77 0.09
--------- ----------- -------- ------
Less distributions
Dividends from net investment income (0.28) (0.62) (0.96) (0.13)
Dividends from net realized gains (1.22) (0.58) (0.19) --
--------- ----------- -------- ------
Total distributions (1.50) (1.20) (1.15) (0.13)
--------- ----------- -------- ------
Change in net asset value (0.81) 1.03 0.62 (0.04)
--------- ----------- -------- ------
Net asset value, end of period $ 18.39 $ 19.20 $ 18.17 $17.55
========= =========== ======== ======
Total return(1) 3.57%(3) 12.72% 10.59% 0.49%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $ 6,826 $ 5,947 $ 3,715 $ 856
Ratio to average net assets of:
Operating expenses 1.90%(2) 1.92% 1.95% 1.83%(2)
Net investment income 2.57%(2) 2.95% 3.92% 3.29%(2)
Portfolio turnover 60%(3) 141% 79% 91%
Average commission rate paid(5) $0.0585 $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
17
<PAGE>
PHOENIX GROWTH FUND SERIES
INVESTOR PROFILE
Phoenix Growth Fund is designed for investors seeking long-term capital
appreciation.
INVESTMENT ADVISER'S REPORT
For the six months ended April 30, 1997, Phoenix Growth Fund Class A shares
earned 5.98% and Class B shares returned 5.59% compared with a return of 14.72%
for the S&P 500 Stock Index.* The Lipper Growth Fund Average for 798 growth
funds was 7.15% for the same period. All performance figures assume reinvestment
of dividends and exclude the effect of sales charges.
The strong outperformance of market indices, such as the S&P 500, continued
over the reporting period -- a result of the narrowing that has occurred in the
market as an ever decreasing group of large-capitalization companies drove index
performance while the majority of stocks lagged. This trend has been fueled, in
large part, by investor concerns over the sustainability of corporate earnings
trends as well as interest rate uncertainty.
The market's focus on larger companies has detracted from the Fund's
relative performance. While many large-cap stocks are held in the portfolio, the
Fund also contains many mid-cap stocks with rapid growth prospects, which the
market has yet to recognize.
Over the reporting period, the Fund benefited from holdings in steady
growth sectors, such as consumer staples, financial services and health-care.
Our holdings in technology and other economically sensitive areas, including
basic materials and capital goods, held back performance. Energy stocks had
mixed results, beginning the period with a strong surge, then weakening in the
poor seasonal February and March time frame. Since we believe that the energy
sector is in the midst of a strong secular uptrend, we have maintained an
overweighted position in this area.
OUTLOOK
Looking ahead, we believe that the equity market will continue to be
buffeted by increased volatility. As the economy matures, the ability of
companies to generate abundant earnings growth will become more difficult.
The Fund's goal is to invest in companies that can continue to exhibit
relatively strong growth in a more challenging environment. We believe good
growth trends are available in the health-care and technology sectors and
selected consumer staples and financial service stocks.
* The S&P 500 Stock Index is an unmanaged but commonly used measure of stock
return performance.
18
<PAGE>
Phoenix Growth Fund Series
- --------------------------------------------------------------------------------
INVESTMENTS AT APRIL 30, 1997
(Unaudited)
SHARES VALUE
------ -----
COMMON STOCKS--76.1%
Aerospace & Defense--1.9%
Lockheed Martin Corp. ............... 500,000 $ 44,750,000
---------------
Banks--1.9%
Chase Manhattan Corp. ............... 250,000 23,156,250
KeyCorp. ........................... 400,000 20,850,000
---------------
44,006,250
---------------
Beverages--1.7%
PepsiCo, Inc. ..................... 1,100,000 38,362,500
---------------
Building & Materials--0.6%
Masco Corp. ........................ 370,000 13,967,500
---------------
Chemical--4.0%
IMC Global, Inc. .................. 825,000 30,421,875
Monsanto Co. ........................ 950,000 40,612,500
W. R. Grace & Co. ............ 400,000 20,800,000
---------------
91,834,375
---------------
Computer Software & Services--1.0%
Adobe Systems, Inc. ............... 600,000 23,475,000
---------------
Diversified Financial Services--5.6%
American Express Co. ............... 600,000 39,525,000
Federal Home Loan Mortgage Corp. ... 950,000 30,281,250
Federal National Mortgage Assoc. ... 900,000 37,012,500
Travelers Group, Inc. ............... 431,100 23,872,162
---------------
130,690,912
---------------
Diversified Miscellaneous--1.7%
Equifax, Inc. ..................... 1,400,000 40,250,000
---------------
Electrical Equipment--3.0%
Linear Technology Corp. ............ 360,000 18,090,000
Rockwell International Corp. ...... 450,000 29,925,000
Westinghouse Electric Corp. ......... 1,200,000 20,400,000
---------------
68,415,000
---------------
Electronics--1.8%
Applied Materials, Inc. (b) ......... 450,000 24,693,750
LSI Logic Corp. (b) ............... 475,000 18,168,750
---------------
42,862,500
---------------
Entertainment, Leisure & Gaming--2.0%
Tele-Communications, Inc. (b) ...... 1,400,000 26,337,500
Time Warner, Inc. .................. 450,000 20,250,000
---------------
46,587,500
---------------
Food--2.1%
ConAgra, Inc. ..................... 500,000 28,812,500
Ralston-Ralston Purina Group ...... 250,000 20,593,750
---------------
49,406,250
---------------
Healthcare--Diversified--3.4%
American Home Products Corp. ...... 800,000 $ 53,000,000
Bristol-Myers Squibb Co. ............ 400,000 26,200,000
---------------
79,200,000
---------------
Healthcare--Drugs--2.4%
Eli Lilly & Co. ..................... 46,300 4,068,613
Genzyme Corp. (b) .................. 650,000 15,031,250
Merck & Co., Inc. .................. 250,000 22,625,000
Pfizer, Inc. ........................ 135,000 12,960,000
---------------
54,684,863
---------------
Hospital Management & Services--1.9%
Tenet Healthcare Corp. (b) ......... 875,000 22,750,000
United Healthcare Corp. ............ 425,000 20,665,625
---------------
43,415,625
---------------
Insurance--6.4%
Aetna, Inc. ........................ 350,000 31,893,750
Allstate Corp. ..................... 700,000 45,850,000
American International Group, Inc. 325,000 41,762,500
General Re Corp. .................. 175,000 29,268,750
---------------
148,775,000
---------------
Medical Products & Supplies--2.6%
Boston Scientific Corp. (b) ......... 250,000 12,062,500
Johnson & Johnson .................. 800,000 49,000,000
---------------
61,062,500
---------------
Metals & Mining--0.6%
Aluminum Company of America ......... 200,000 13,975,000
---------------
Natural Gas--2.5%
Apache Corp. ........................ 1,115,900 37,940,600
Burlington Resources, Inc. ......... 500,000 21,187,500
---------------
59,128,100
---------------
Office & Business Equipment--1.0%
Storage Technology Corp. (b) ...... 625,000 21,953,125
---------------
Oil--1.3%
Amoco Corp. ........................ 225,000 18,815,625
Louisiana Land & Exploration Co. ... 225,000 11,250,000
---------------
30,065,625
---------------
Oil Service & Equipment--7.7%
Baker Hughes, Inc. .................. 500,000 17,250,000
Diamond Offshore Drilling, Inc. (b) 400,000 25,750,000
ENSCO International, Inc. (b) ...... 500,000 23,750,000
Halliburton Co. ..................... 550,000 38,843,750
Schlumberger Ltd. .................. 275,000 30,456,250
Tidewater, Inc. ..................... 500,000 20,062,500
Transocean Offshore, Inc. ......... 400,000 24,250,000
---------------
180,362,500
---------------
See Notes to Financial Statements
19
<PAGE>
Pollution Control--1.7%
U.S.A. Waste Services, Inc. (b) ......... 600,000 $ 19,650,000
WMX Technologies, Inc. .................. 700,000 20,562,500
---------------
40,212,500
---------------
Professional Services--1.4%
Federal Express Corp. (b) ............... 325,700 17,547,088
HFS, Inc. (b) ........................... 250,000 14,812,500
---------------
32,359,588
---------------
Retail--6.2%
Costco Co., Inc. (b) .................. 1,750,000 50,531,250
CVS Corp. .............................. 975,000 48,384,375
Lowe's Companies, Inc. .................. 500,000 19,000,000
Wal-Mart Stores, Inc. .................. 900,000 25,425,000
---------------
143,340,625
---------------
Retail--Food--3.4%
American Stores Co. ..................... 1,268,100 57,698,550
Safeway, Inc. (b) ..................... 500,000 22,312,500
---------------
80,011,050
---------------
Telecommunications Equipment--3.6%
Ascend Communications, Inc. (b) ......... 650,000 29,737,500
Cisco Systems, Inc. (b) ............... 700,000 36,225,000
Motorola, Inc. ........................ 325,000 18,606,250
---------------
84,568,750
---------------
Tobacco--0.6%
RJR Nabisco Holdings Corp. ............ 500,000 14,875,000
---------------
Utility--Telephone--2.1%
GTE Corp. .............................. 450,000 20,643,750
Sprint Corp. ........................... 650,000 28,518,750
---------------
49,162,500
---------------
TOTAL COMMON STOCKS
(Identified cost $1,622,362,498) ........................ 1,771,760,138
---------------
FOREIGN COMMON STOCKS--14.6%
Beverages--1.3%
Seagram Ltd. (Canada) .................. 800,000 30,600,000
---------------
Chemical--1.6%
Potash Corp. of Saskatchewan, Inc.
(Canada) ........................... 500,000 38,437,500
---------------
Cosmetics & Soaps--2.5%
Unilever NV (Netherlands) ............... 300,000 58,875,000
---------------
Electronics--3.0%
Philips Electronics NV ADR NY
Registered (Netherlands) ............ 1,300,000 69,550,000
---------------
Healthcare--Drugs--2.8%
Elan PLC Sponsored ADR (Ireland) (b) . 375,000 12,750,000
SmithKline Beecham PLC Sponsored
ADR (United Kingdom) (b) ............ 650,000 52,406,250
---------------
65,156,250
---------------
Oil Service & Equipment--2.3%
Elf Aquitane Sponsored ADR (France) ...... 1,100,000 53,487,500
---------------
Utility--Telephone--1.1%
Telefonos de Mexico SA ADR
(Mexico) (b) ........................ 600,000 $ 24,750,000
---------------
TOTAL FOREIGN COMMON STOCKS
(Identified cost $272,730,043) ......... 340,856,250
---------------
TOTAL LONG-TERM INVESTMENTS--90.7%
(Identified cost $1,895,092,541) ......... 2,112,616,388
---------------
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- ---------- -----------
SHORT-TERM OBLIGATIONS--13.0%
Commercial Paper--11.3%
Corporate Asset Funding
Co. 5.60%, 5-1-97 ......... A-1+ $ 10,580 10,580,000
Coca-Cola Co. 5.23%,
5-5-97 ..................... A-1+ 1,060 1,059,206
International Lease Finance
Corp. 5.32%, 5-5-97 ...... A-1 950 949,284
CXC, Inc. 5.32%, 5-6-97 ...... A-1+ 50 49,955
Heinz (H.J.) Co. 5.50%,
5-6-97 ..................... A-1 483 482,631
McKenna Triangle National
Corp. 5.56%, 5-6-97 ...... A-1+ 5,000 4,996,139
Preferred Receivables
Funding Corp. 5.34%,
5-6-97 ..................... A-1 11,000 10,990,132
Dupont (E.I.) de Nemours &
Co. 5.48%, 5-7-97 ......... A-1+ 7,975 7,967,716
International Lease Finance
Corp. 5.33%, 5-7-97 ...... A-1 7,105 7,098,688
International Lease Finance
Corp. 5.28%, 5-14-97 ...... A-1 8,375 8,357,566
Preferred Receivables
Funding Corp. 5.40%,
5-14-97 .................. A-1 2,975 2,969,199
Preferred Receivables
Funding Corp. 5.53%,
5-14-97 .................. A-1 4,000 3,992,012
Corporate Asset Funding
Co. 5.32%, 5-15-97 ......... A-1+ 4,300 4,290,314
Kellogg Co. 5.50%, 5-15-97 A-1+ 1,225 1,222,380
Shell Oil Co. 5.38%,
5-15-97 .................. A-1+ 465 464,027
Coca-Cola Co. 5.48%,
5-20-97 .................. A-1+ 2,785 2,776,945
General Electric Co. 5.54%,
5-22-97 .................. A-1+ 5,425 5,407,468
Anheuser-Busch Cos., Inc.
5.43%, 5-23-97 ............ A-1+ 5,000 4,983,408
Potomac Electric Power Co.
5.50%, 5-23-97 ............ A-1 6,910 6,886,775
Ameritech Corp. 5.45%,
5-27-97 .................. A-1+ 10,000 9,960,639
Corporate Asset Funding Co
5.53%, 5-28-97 ............ A-1+ 2,370 2,360,170
See Notes to Financial Statements
20
<PAGE>
Commercial Paper--continued
International Lease Finance
Corp. 5.32%, 5-30-97 ......... A-1 $2,225 $2,213,915
General Re Corp. 5.50%,
6-2-97 ........................ A-1+ 900 895,600
International Lease Finance
Corp. 5.56%, 6-2-97 ............ A-1 8,140 8,098,121
CXC, Inc. 5.34%, 6-3-97 ......... A-1+ 7,000 6,963,246
Schering Corp. 5.55%,
6-3-97 ........................ A-1+ 7,565 7,525,490
Kellogg Co. 5.48%, 6-5-97 .A-1+ 3,685 3,665,367
Beta Finance, Inc. 5.35%,
6-6-97 ........................ A-1+ 6,560 6,520,886
Ciesco L.P. 5.53%, 6-10-97 ........ A-1+ 7,980 7,930,967
Receivables Capital Corp.
5.55%, 6-10-97 ............... A-1+ 9,310 9,252,588
Warner-Lambert Co. 5.55%,
6-10-97 ........................ A-1+ 2,500 2,484,583
General Electric Co. 5.52%,
6-11-97 ........................ A-1+ 5,000 4,968,567
Cargill, Inc. 5.52%, 6-16-97 ...... A-1+ 10,000 9,926,880
Dupont (E.I.) de Nemours &
Co. 5.28%, 6-17-97 ........... A-1+ 5,000 4,963,134
Preferred Receivables
Funding Corp. 5.62%,
6-17-97 ........................ A-1 3,000 2,977,989
Southwestern Bell
Telephone Co. 5.52%,
6-19-97 ........................ A-1+ 5,325 5,284,992
CXC, Inc. 5.57%, 6-23-97 ......... A-1+ 6,540 6,486,041
Enterprise Funding Corp.
5.60%, 6-23-97 ............... A-1+ 5,044 5,002,415
Corporate Asset Funding
Co. 5.57%, 6-24-97 ........... A-1+ 5,000 4,957,623
Corporate Receivables Corp.
5.60%, 6-24-97 ............... A-1 8,405 8,334,397
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- ----------------------
Commercial Paper--continued
General Re Corp. 5.53%,
6-27-97 .................. A-1+ $4,165 $ 4,128,533
Pitney Bowes Credit Corp.
5.28%, 7-1-97 ............ A-1+ 4,130 4,090,517
Beta Finance, Inc. 5.61%,
7-3-97 ..................... A-1+ 10,000 9,901,300
Campbell Soup Co. 5.62%,
7-14-97 .................. A-1+ 1,895 1,873,018
Private Export Funding
Corp. 5.60%, 7-28-97 ...... A-1+ 7,770 7,662,386
Dupont (E.I.) de Nemours &
Co. 5.35%, 7-30-97 ......... A-1+ 8,965 8,838,056
Greenwich Funding Corp.
5.65%, 7-31-97 ............ A-1+ 10,000 9,856,100
Pitney Bowes Credit Corp.
5.62%, 8-19-97 ............ A-1+ 9,822 9,650,311
Beta Finance, Inc. 5.74%,
10-27-97 .................. A-1+ 1,000 971,250
-----------------
263,268,926
-----------------
Federal Agency Securities--1.7%
Federal Home Loan Mortgage Corp.
5.45%, 5-2-97 ...........................20,800 20,605,520
Federal National Mortgage Assoc. 5.43%,
5-2-97 ................................. 8,395 8,393,734
Federal National Mortgage Assoc. 5.54%,
8-6-97 .................................10,000 9,849,700
-----------------
38,848,954
-----------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $302,156,247) ........................ 302,117,880
-----------------
TOTAL INVESTMENTS--103.7%
(Identified cost $2,197,248,788) ..................... 2,414,734,268(a)
Cash and receivables, less liabilities--(3.7%) ...... (85,449,631)
-----------------
NET ASSETS--100.0% .................................... $ 2,329,284,637
=================
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $261,489,593 and gross
depreciation of $44,151,544 for income tax purposes. At April 30, 1997, the
aggregate cost of securities for federal income tax purposes was
$2,197,396,219.
(b) Non-income producing.
See Notes to Financial Statements
21
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
(Unaudited)
Assets
Investment securities at value
(Identified cost $2,197,248,788) $2,414,734,268
Short-term investments held as collateral for loaned
securities 33,458,538
Receivables
Investment securities sold 48,240,998
Dividends and interest 1,458,213
Fund shares sold 799,023
---------------
Total assets 2,498,691,040
---------------
Liabilities
Payables
Investment securities purchased 129,635,473
Collateral on securities loaned 33,458,538
Fund shares repurchased 3,519,060
Investment advisory fee 1,242,398
Transfer agent fee 621,825
Distribution fee 499,180
Financial agent fee 38,416
Trustees' fee 3,852
Accrued expenses 387,661
---------------
Total liabilities 169,406,403
---------------
Net Assets $2,329,284,637
===============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $1,856,921,806
Undistributed net investment income 6,884,918
Accumulated net realized gain 247,992,433
Net unrealized appreciation 217,485,480
---------------
Net Assets $2,329,284,637
===============
Class A
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$2,273,146,137) 95,771,332
Net asset value per share $23.74
Offering price per share
$23.74/(1-4.75%) $24.92
Class B
Shares of beneficial interest outstanding, $1 par
value, unlimited authorization (Net Assets
$56,138,500) 2,391,111
Net asset value and offering price per share $23.48
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997
(Unaudited)
Investment Income
Dividends $ 14,401,519
Interest 8,664,932
Security lending 92,804
-------------
Total investment income 23,159,255
-------------
Expenses
Investment advisory fee 7,898,273
Distribution fee--Class A 2,917,260
Distribution fee--Class B 255,021
Financial agent fee 281,407
Transfer agent 1,906,161
Printing 222,788
Custodian 98,814
Professional 28,063
Registration 27,389
Trustees 9,376
Miscellaneous 24,060
-------------
Total expenses 13,668,612
-------------
Net investment income 9,490,643
-------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 247,931,080
Net realized loss on foreign currency transactions (103,593)
Net change in unrealized appreciation (depreciation) on
investments (117,492,580)
-------------
Net gain on investments 130,334,907
-------------
Net increase in net assets resulting from
operations $139,825,550
=============
See Notes to Financial Statements
22
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- -----------------
<S> <C> <C>
From Operations
Net investment income $ 9,490,643 $ 18,992,565
Net realized gain 247,827,487 403,021,799
Net change in unrealized appreciation (depreciation) (117,492,580) (60,960,282)
-------------- --------------
Increase in net assets resulting from operations 139,825,550 361,054,082
-------------- --------------
From Distributions to Shareholders
Net investment income--Class A (7,403,527) (22,644,345)
Net investment income--Class B -- (98,685)
Net realized gains--Class A (394,729,314) (149,324,628)
Net realized gains--Class B (8,236,665) (1,479,427)
-------------- --------------
Decrease in net assets from distributions to shareholders (410,369,506) (173,547,085)
-------------- --------------
From Share Transactions
Class A
Proceeds from sales of shares (5,674,192 and 9,835,907 shares, respectively) 139,503,504 250,496,105
Net asset value of shares issued from reinvestment of distributions
(15,837,454 and 6,641,514 shares, respectively) 371,229,911 158,927,977
Cost of shares repurchased (13,096,396 and 21,426,723 shares, respectively) (320,160,777) (546,897,194)
-------------- --------------
Total 190,572,638 (137,473,112)
-------------- --------------
Class B
Proceeds from sales of shares (553,913 and 1,000,869 shares, respectively) 13,441,615 25,339,947
Net asset value of shares issued from reinvestment of distributions
(322,453 and 59,359 shares, respectively) 7,493,814 1,409,232
Cost of shares repurchased (187,299 and 171,122 shares, respectively) (4,476,314) (4,348,366)
-------------- --------------
Total 16,459,115 22,400,813
-------------- --------------
Increase (decrease) in net assets from share transactions 207,031,753 (115,072,299)
-------------- --------------
Net increase (decrease) in net assets (63,512,203) 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
$6,884,918 and $4,797,802, respectively) $2,329,284,637 $2,392,796,840
============== ==============
</TABLE>
See Notes to Financial Statements
23
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
----------------------------------
Six Months
Ended Year Ended
4/30/97 October 31,
(Unaudited) 1996
------------------ ---------------
<S> <C> <C>
Net asset value, beginning of period $ 26.87 $ 24.92
Income from investment operations(5)
Net investment income 0.10(4) 0.20(4)
Net realized and unrealized gain 1.45 3.63
----------- ------------
Total from investment operations 1.55 3.83
----------- ------------
Less distributions
Dividends from net investment income (0.09) (0.25)
Dividends from net realized gains (4.59) (1.63)
----------- ------------
Total distributions (4.68) (1.88)
----------- ------------
Change in net asset value (3.13) 1.95
----------- ------------
Net asset value, end of period $ 23.74 $ 26.87
=========== ============
Total return(1) 5.98%(3) 16.34%
Ratios/supplemental data:
Net assets, end of period (thousands) $2,273,146 $2,347,471
Ratio to average net assets of:
Operating expenses 1.13%(2) 1.17%
Net investment income 0.81%(2) 0.80%
Portfolio turnover 92%(3) 116%
Average commission rate paid(6) $ 0.0553 $ 0.0534
<CAPTION>
Year Ended October 31,
1995 1994 1993 1992
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 21.24 $ 21.53 $ 20.76 $ 22.60
Income from investment operations(5)
Net investment income 0.26 0.26 0.32 0.36
Net realized and unrealized gain 4.53 0.17 1.15 0.97
----------- ----------- ----------- -----------
Total from investment operations 4.79 0.43 1.47 1.33
----------- ----------- ----------- -----------
Less distributions
Dividends from net investment income (0.30) (0.24) (0.32) (0.45)
Dividends from net realized gains (0.81) (0.48) (0.38) (2.72)
----------- ----------- ----------- -----------
Total distributions (1.11) (0.72) (0.70) (3.17)
----------- ----------- ----------- -----------
Change in net asset value 3.68 (0.29) 0.77 (1.84)
----------- ----------- ----------- -----------
Net asset value, end of period $ 24.92 $ 21.24 $ 21.53 $ 20.76
=========== =========== =========== ===========
Total return(1) 23.91% 2.06% 7.20% 6.95%
Ratios/supplemental data:
Net assets, end of period (thousands) $2,300,251 $2,140,458 $2,563,442 $2,186,868
Ratio to average net assets of:
Operating expenses 1.20% 1.19% 1.18% 1.17%
Net investment income 0.92% 1.22% 1.55% 1.86%
Portfolio turnover 109% 118% 176% 192%
Average commission rate paid(6) N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
------------------------------------------------------------
Six Months From
Ended Inception
4/30/97 Year Ended October 31, 7/15/94 to
(Unaudited) 1996 1995 10/31/94
--------------- -------------- -------------- ------------
<S> <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 0.01(4) --(4) --(4) 0.01
Net realized and unrealized gain 1.43 3.61 4.60 0.70
----------- --------- -------- ------
Total from investment operations 1.44 3.61 4.60 0.71
----------- --------- -------- ------
Less distributions
Dividends from net investment income -- (0.09) (0.24) --
Dividends from net realized gains (4.59) (1.63) (0.81) --
----------- ---------- -------- ------
Total distributions (4.59) (1.72) (1.05) --
----------- ---------- -------- ------
Change in net asset value (3.15) 1.89 3.55 0.71
----------- ---------- -------- ------
Net asset value, end of period $ 23.48 $ 26.63 $ 24.74 $21.19
=========== ========== ======== ======
Total return(1) 5.59%(3) 15.48% 23.02% 3.47%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $ 56,139 $45,326 $20,111 $2,966
Ratio to average net assets of:
Operating expenses 1.88%(2) 1.93% 1.97% 1.87%(2)
Net investment income 0.07%(2) 0.01% 0.01% 0.32%(2)
Portfolio turnover 92%(3) 116% 109% 118%
Average commission rate paid(6) $ 0.0553 $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
24
<PAGE>
PHOENIX AGGRESSIVE GROWTH FUND SERIES
INVESTOR PROFILE
Phoenix Aggressive Growth Fund is designed for long-term investors who are
willing to assume above-average risk in return for above-average capital growth
potential.
INVESTMENT ADVISER'S REPORT
For the six months ended April 30, 1997, Phoenix Aggressive Growth Fund
Class A shares fell 3.99% and Class B shares fell 4.33% compared to a negative
return of 7.29% for the Russell 2000 Growth Index. The S&P 500 Index returned
14.72% for the same period. 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.
The market has clearly been dominated by large-cap stocks recently. Several
factors have contributed to the poor performance of small- and mid-cap stocks.
Record cash inflows into equity mutual funds have driven many fund managers to
the more liquid large-cap market segment. Uncertainty over the continuing
strength of the economy and direction of interest rates also focused investor
attention on stocks perceived to have more predictable earnings, typically the
larger, more established companies.
The Fund's performance was also limited by its overweighting in technology
and energy early in the period when Software Solutions, Hybrid Network and
Energy Technology were among our top five investment themes in the portfolio. As
the market continued to focus on the large-cap sector, we moved a portion of the
portfolio into companies with larger market capitalizations that we believe
offered above-average growth potential. At the end of April, the Fund's largest
theme concentrations were Deregulating Financial Services and Deregulating
Media. Positive contributors to performance included Intel, Microsoft, McAfee
and Walt Disney.
OUTLOOK
Looking to the next six months, we expect the economic climate to be more
moderate, with slower earnings growth for the overall market. We believe that
stock performance tracks earnings growth in the long run. Therefore, our
research focus is on identifying companies that have the potential for 20%
growth in revenue, operating profit and earnings. We continue to believe
investment opportunities within the Deregulating Media, Deregulating Financial
Services and Retail Revival themes offer the potential for above-average
returns.
Cash reserves were raised to about 7% as of April 30. We will use the
available cash to take advantage of attractive buying opportunities in the
technology and health-care sectors. * The S&P 500 Stock Index is an unmanaged
but commonly used measure of stock return performance.
25
<PAGE>
Phoenix Aggressive Growth Fund Series
- --------------------------------------------------------------------------------
INVESTMENTS AT APRIL 30, 1997
(Unaudited)
SHARES VALUE
------ -----
COMMON STOCKS--90.1%
Advertising--1.4%
Outdoor Systems, Inc. (b) ..................... 110,400 $3,063,600
-----------
Aerospace & Defense--2.1%
Datum, Inc. (b) .............................. 200,000 4,650,000
-----------
Auto & Truck Parts--1.3%
Cummins Engine Co., Inc. (b) .................. 50,000 2,806,250
-----------
Banks--4.6%
BankAmerica Corp. .............................. 50,000 5,843,750
Chase Manhattan Corp. ........................ 35,000 3,241,875
Zions Bank Corp. .............................. 9,400 1,189,100
-----------
10,274,725
-----------
Beverages--3.7%
Coca-Cola Co. ................................. 70,000 4,453,750
Seagram Ltd. (Canada) ........................ 100,000 3,825,000
-----------
8,278,750
-----------
Computer Software & Services--10.3%
Computer Associates International, Inc. ...... 75,000 3,900,000
HBO & Co. .................................... 75,000 4,012,500
McAfee Associates, Inc. (b) .................. 50,000 2,787,500
Microsoft Corp. (b) ........................... 30,000 3,645,000
PRI Automation, Inc. (b) ..................... 50,000 2,562,500
Veritas Software Corp. (b) ..................... 80,000 2,690,000
Visio Corp. (b) .............................. 24,300 1,233,225
Yahoo!, Inc. (b) .............................. 60,000 2,047,500
-----------
22,878,225
-----------
Cosmetics & Soaps--3.4%
Clorox Co. .................................... 25,000 3,184,375
Gillette Co. ................................. 50,000 4,250,000
-----------
7,434,375
-----------
Diversified Financial Services--7.7%
American Express Co. ........................... 70,000 4,611,250
Conseco, Inc. ................................. 75,000 3,103,125
Federal Home Loan Mortgage Corp. ............... 150,000 4,781,250
Travelers Group, Inc. ........................ 80,000 4,430,000
-----------
16,925,625
-----------
Diversified Miscellaneous--2.6%
Central Garden & Pet Co. (b) .................. 290,000 5,781,875
-----------
Electrical Equipment--1.4%
SCI Systems, Inc. (b) ........................ 50,000 3,087,500
-----------
Electronics--1.6%
Texas Instruments, Inc. ........................ 40,000 3,570,000
-----------
Entertainment, Leisure & Gaming--5.5%
Time Warner, Inc. .............................. 125,000 5,625,000
Walt Disney Co. .............................. 80,000 6,560,000
-----------
12,185,000
-----------
Healthcare--Diversified--3.7%
Bristol-Myers Squibb Co. ..................... 50,000 $3,275,000
Warner-Lambert Co. ........................... 50,000 4,900,000
-----------
8,175,000
-----------
Healthcare--Drugs--0.3%
Amylin Pharmaceuticals, Inc. (b) ............... 66,900 685,725
-----------
Household Furnishings & Appliances--0.9%
Sunbeam Corp., Inc. ........................... 60,000 1,905,000
-----------
Insurance--8.2%
Aetna, Inc. .................................... 40,000 3,645,000
Allstate Corp. ................................. 75,000 4,912,500
Progressive Corp. .............................. 75,000 5,709,375
UNUM Corp. .................................... 50,000 3,850,000
-----------
18,116,875
-----------
Oil Service & Equipment--5.8%
Diamond Offshore Drilling (b) .................. 60,000 3,862,500
Falcon Drilling Co., Inc. (b) .................. 60,000 2,295,000
Newpark Resources, Inc. (b) .................. 25,000 1,121,875
Schlumberger Ltd. .............................. 50,000 5,537,500
-----------
12,816,875
-----------
Professional Services--2.0%
Apollo Group, Inc. Class A (b) ............... 50,000 1,343,750
HFS, Inc. (b) ................................. 50,000 2,962,500
-----------
4,306,250
-----------
Publishing, Broadcasting, Printing & Cable--10.1%
Clear Channels Communications, Inc. (b) ...... 25,000 1,212,500
Gannett Co., Inc. .............................. 60,000 5,235,000
Heftel Broadcasting Corp. Class A (b) ......... 110,000 5,500,000
New York Times Co. Class A ..................... 100,000 4,325,000
Tribune Co. .................................... 60,000 2,632,500
Univision Communications, Inc. Class A (b) . 100,000 3,400,000
-----------
22,305,000
-----------
Retail--4.6%
Costco Co., Inc. (b) ........................... 100,000 2,887,500
Home Depot, Inc. .............................. 75,000 4,350,000
Wal-Mart Stores, Inc. ........................ 100,000 2,825,000
-----------
10,062,500
-----------
Telecommunications Equipment--4.1%
CMG Information Services, Inc. (b) ............ 90,600 1,155,150
Cascade Communications Corp. (b) ............... 125,000 3,937,500
Level One Communications, Inc. (b) ............ 32,600 1,043,200
Lucent Technologies, Inc. ..................... 50,000 2,956,250
-----------
9,092,100
-----------
See Notes to Financial Statements
26
<PAGE>
Utility--Telephone--4.8%
Bell Atlantic Corp. ............ 80,000 $ 5,420,000
NYNEX Corp. .................. 100,000 5,175,000
------------
10,595,000
------------
TOTAL COMMON STOCKS
(Identified cost $187,956,147) ............198,996,250
------------
WARRANTS--3.1%
Electronics--3.1%
Intel Corp. Warrants (b) ...... 60,000 6,772,500
------------
TOTAL WARRANTS
(Identified cost $5,954,000) ............... 6,772,500
------------
TOTAL LONG-TERM INVESTMENTS--93.2%
(Identified cost $193,910,147) ............205,768,750
------------
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
---------- -------- --------------------
SHORT-TERM OBLIGATIONS--24.0%
Commercial Paper--1.2%
Anheuser-Busch Cos., Inc.
5.46%, 5-9-97 ......... A-1+ $2,040 $ 2,037,525
General Re Corp. 5.53%,
5-21-97 ............... A-1+ 405 403,756
Cargill, Inc. 5.53%, 6-3-97 A-1+ 315 313,403
---------------
2,754,684
---------------
Federal Agency Securities--22.8%
Federal Home Loan Banks 5.28%, 5-1-97 . 35,260 35,260,000
Federal Home Loan Mortgage Corp. 5.34%,
5-5-97 .............................. 15,000 14,991,100
---------------
50,251,100
---------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $53,005,784) .................. 53,005,784
---------------
TOTAL INVESTMENTS--117.2%
(Identified cost $246,915,931) .................. 258,774,534(a)
Cash and receivables, less liabilities--(17.2%) (38,036,135)
---------------
NET ASSETS--100.0% .............................. $ 220,738,399
===============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $13,325,912 and gross
depreciation of $1,467,309 for income tax purposes. At April 30, 1997, the
aggregate cost of securities for federal income tax purposes was
$246,915,931.
(b) Non-income producing.
See Notes to Financial Statements
27
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
(Unaudited)
Assets
Investment securities at value
(Identified cost $246,915,931) $258,774,534
Short-term investments held as collateral for loaned
securities 12,476,285
Cash 4,426
Receivables
Investment securities sold 5,899,568
Fund shares sold 276,600
Dividends and interest 42,675
------------
Total assets 277,474,088
------------
Liabilities
Payables
Collateral on securities loaned 12,476,285
Investment securities purchased 43,840,385
Fund shares repurchased 127,371
Investment advisory fee 124,362
Transfer agent fee 53,174
Distribution fee 50,829
Financial agent fee 8,915
Trustees' fee 3,958
Accrued expenses 50,410
------------
Total liabilities 56,735,689
------------
Net Assets $220,738,399
============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $207,079,797
Undistributed net investment loss (571,855)
Accumulated net realized gain 2,371,854
Net unrealized appreciation 11,858,603
------------
Net Assets $220,738,399
============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $209,615,661) 15,185,617
Net asset value per share $13.80
Offering price per share
$13.80/(1-4.75%) $14.49
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $11,122,738) 823,895
Net asset value and offering price per share $13.50
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997
(Unaudited)
Investment Income
Interest $ 446,739
Dividends 423,544
Security lending 46,447
------------
Total investment income 916,730
------------
Expenses
Investment advisory fee 832,023
Distribution fee--Class A 282,980
Distribution fee--Class B 56,684
Financial agent fee 50,750
Transfer agent 190,278
Printing 27,928
Registration 15,052
Professional 12,021
Trustees 9,429
Custodian 8,402
Miscellaneous 3,038
------------
Total expenses 1,488,585
------------
Net investment loss (571,855)
------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 3,376,218
Net change in unrealized appreciation (depreciation) on
investments (11,857,324)
------------
Net loss on investments (8,481,106)
------------
Net decrease in net assets resulting from
operations $ (9,052,961)
============
See Notes to Financial Statements
28
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- -----------------
<S> <C> <C>
From Operations
Net investment loss $ (571,855) $ (1,821,362)
Net realized gain 3,376,218 39,039,816
Net change in unrealized appreciation (depreciation) (11,857,324) (4,196,804)
------------ -------------
Increase (decrease) in net assets resulting from operations (9,052,961) 33,021,650
------------ -------------
From Distributions to Shareholders
Net investment income--Class A -- (230,621)
Net investment income--Class B -- --
Net realized gains--Class A (33,832,914) (24,390,155)
Net realized gains--Class B (1,733,865) (370,937)
------------ -------------
Decrease in net assets from distributions to shareholders (35,566,779) (24,991,713)
------------ -------------
From Share Transactions
Class A
Proceeds from sales of shares (3,712,738 and 20,593,244 shares, respectively) 59,229,852 339,736,195
Net asset value of shares issued from reinvestment of distributions
(2,152,049 and 1,566,906 shares, respectively) 31,462,960 22,579,121
Cost of shares repurchased (4,542,777 and 19,216,354 shares, respectively) (72,194,991) (316,940,541)
------------ -------------
Total 18,497,821 45,374,775
------------ -------------
Class B
Proceeds from sales of shares (379,221 and 739,574 shares, respectively) 5,711,094 12,090,017
Net asset value of shares issued from reinvestment of distributions
(104,654 and 23,041 shares, respectively) 1,500,729 329,024
Cost of shares repurchased (291,441 and 277,273 shares, respectively) (4,305,736) (4,550,009)
------------ -------------
Total 2,906,087 7,869,032
------------ -------------
Increase in net assets from share transactions 21,403,908 53,243,807
------------ -------------
Net increase (decrease) in net assets (23,215,832) 61,273,744
Net Assets
Beginning of period 243,954,231 182,680,487
------------ -------------
End of period (including undistributed net investment income (loss) of
($571,855) and $0, respectively) $220,738,399 $ 243,954,231
============ =============
</TABLE>
See Notes to Financial Statements
29
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-------------------------------------
Six Months Year
Ended Ended
4/30/97 October 31,
(Unaudited) 1996
------------------- -----------------
<S> <C> <C>
Net asset value, beginning of period $ 16.84 $ 16.51
Income from investment operations(5)
Net investment income (loss) (0.03) (0.13)(4)
Net realized and unrealized gain (loss) (0.50) 2.64
--------- ------------
Total from investment operations (0.53) 2.51
--------- ------------
Less distributions
Dividends from net investment income -- (0.02)
Dividends from net realized gains (2.51) (2.16)
In excess of accumulated realized gains -- --
--------- ------------
Total distributions (2.51) (2.18)
--------- ------------
Change in net asset value (3.04) 0.33
--------- ------------
Net asset value, end of period $ 13.80 $ 16.84
========= ============
Total return(1) (3.99)%(3) 17.43%
Ratios/supplemental data:
Net assets, end of period (thousands) $209,616 $233,488
Ratio to average net assets of:
Operating expenses 1.22%(2) 1.20%
Net investment income (loss) (0.45)%(2) (0.81)%
Portfolio turnover 310%(3) 401%
Average commission rate paid(6) $ 0.0563 $ 0.0655
<CAPTION>
Year Ended October 31,
1995 1994 1993 1992
--------------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.33 $ 14.56 $ 13.56 $ 14.88
Income from investment operations(5)
Net investment income (loss) 0.06(4) 0.27 0.22 0.23
Net realized and unrealized gain (loss) 4.21 (0.21) 1.62 0.59
---------- --------- --------- ---------
Total from investment operations 4.27 0.06 1.84 0.82
---------- --------- --------- ---------
Less distributions
Dividends from net investment income (0.19) (0.22) (0.23) (0.25)
Dividends from net realized gains (0.90) (1.07) (0.61) (1.50)
In excess of accumulated realized gains -- -- -- (0.39)
---------- --------- --------- ---------
Total distributions (1.09) (1.29) (0.84) (2.14)
---------- --------- --------- ---------
Change in net asset value 3.18 (1.23) 1.00 (1.32)
---------- --------- --------- ---------
Net asset value, end of period $ 16.51 $ 13.33 $ 14.56 $ 13.56
========== ========= ========= =========
Total return(1) 35.14% 0.37% 14.15% 7.11%
Ratios/supplemental data:
Net assets, end of period (thousands) $180,288 $140,137 $143,035 $128,530
Ratio to average net assets of:
Operating expenses 1.29% 1.26% 1.17% 1.25%
Net investment income (loss) 0.43% 1.97% 1.58% 1.70%
Portfolio turnover 331% 306% 192% 251%
Average commission rate paid(6) N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Class B
---------------------------------------------------------------------------
Year Ended October 31,
Six Months From
Ended Inception
4/30/97 7/21/94 to
(Unaudited) 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) (0.08) (0.25)(4) (0.12)(4) 0.02
Net realized and unrealized gain (loss) (0.48) 2.60 4.26 0.20
-------- ------------ ---------- ---------
Total from investment operations (0.56) 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 (3.07) 0.19 3.07 0.22
-------- ------------ ---------- ---------
Net asset value, end of period $ 13.50 $ 16.57 $16.38 $13.31
======== ============ ========== =========
Total return(1) (4.33)%(3) 16.52% 34.15% 1.68%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $11,123 $10,466 $2,393 $330
Ratio to average net assets of:
Operating expenses 1.97%(2) 1.95% 2.04% 1.81%(2)
Net investment income (loss) (1.19)%(2) (1.57)% (0.83)% 1.45%(2)
Portfolio turnover 310%(3) 401% 331% 306%
Average commission rate paid(6) $0.0563 $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.
See Notes to Financial Statements
30
<PAGE>
PHOENIX HIGH YIELD FUND SERIES
INVESTOR PROFILE
Phoenix High Yield Fund is designed 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 during a period marked by generally lackluster results in the bond
market. For the six months ended April 30, 1997, Class A shares provided a total
return of 5.73% and Class B shares returned 5.44%. The CS First Boston High
Yield Index* was up 6.00% for the period. All performance figures assume
reinvestment of dividends and exclude the effect of sales charges.
Although bond prices recovered slightly in late 1996, the resurgence of
inflationary fears and rising interest rates, particularly after the Federal
Reserve Board raised the Fed funds rate 25 basis points in March, led to a very
volatile bond market. The most significant contributor to the Fund's very strong
performance over the last six months, even given this unsettled environment, was
our sizable allocation to dollar-denominated emerging-markets corporate debt.
The Fund's focus has been on identifying emerging countries that are
experiencing the types of improvements in their infrastructure associated with a
better standard of living. Our research has led us to a number of rewarding
investment opportunities in such countries as Brazil, Poland, Argentina and
China.
The Fund has also benefited from its domestic high-yield holdings in the oil
and gas sector.
OUTLOOK
Given our outlook for slower growth in the U.S., we will be stressing
higher-rated credits within the high-yield universe as we move into the later
stages of the economic cycle. 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 emerging
markets and such domestic industries as cable television and pulp and paper,
which are currently out of favor but offer good long-term appreciation
potential.
* The CS First Boston High Yield Index generally includes over 180 issues with
an average maturity range of seven to 10 years and a minimum issue size of
$100 million.
31
<PAGE>
INVESTMENTS AT APRIL 30, 1997
(Unaudited)
MOODY'S PAR
BOND VALUE
RATING (000) VALUE
-------- --------- --------------
NON-CONVERTIBLE BONDS--55.6%
Advertising--1.1%
Outdoor Systems, Inc. 9.375%,
'06 B $ 6,000 $ 5,850,000
-----------
Asset-Backed Securities--1.4%
Airplanes Pass Through Trust 1D
10.875%, '19 Ba 7,000 7,738,920
-----------
Building & Materials--0.8%
Neenah Corp. 144A 11.125%, '07
(b) B 4,120 4,264,200
-----------
Chemical--1.3%
General Chemical 9.25%, '03 B 7,300 7,318,250
-----------
Containers--4.1%
Owens-Illinois, Inc. Debenture
11%, '03 Ba 11,000 12,292,500
Portola Packaging, Inc. Sr. Note
10.75%, '05 B 10,000 9,925,000
-----------
22,217,500
-----------
Cosmetics & Soaps--4.5%
Revlon Worldwide Corp. 144A 0%,
'01 (b) B 38,000 24,985,000
-----------
Electronics--1.3%
Anacomp, Inc. 144A 10.875%, '04
(b) B(c) 7,000 6,886,250
-----------
Food--0.9%
Sun World International 144A
11.25%, '04 (b) NR 5,000 5,087,500
-----------
Household Furnishings & Appliances--0.7%
Syratech Corp. 11%, '07 B 3,500 3,578,750
-----------
Non-Agency Mortgage-Backed Securities--4.2%
DLJ Mortgage Acceptance Corp.
94-MF4, B2 144A 8.50%, '01 (b) BB(c) 3,000 2,794,687
First Chicago/Lennar Trust 1
97-CHL1, Series E Commercial
Mortgage 144A 8.11%, '11 (b) B(c) 7,500 5,568,750
Fund America Structured Trust
96-1, A 144A 0%, '30 (b) Baa 3,000 2,251,875
Ryland Mortgage Security Corp.
III 92-A, 1C 8.33%, '30 BB(c) 1,000 763,125
Salomon Brothers Mortgage VII
95, C1 144A 6.801%, '08 (b) B 8,720 6,583,481
SML, Inc. 94-C1, B2 10.30%, '99 BB(c) 5,000 4,946,875
-----------
22,908,793
-----------
Oil--6.1%
Benton Oil & Gas Co. 11.625%,
'03 (g) B(c) $ 9,800 $10,535,000
Flores & Rucks, Inc. 9.75%, '06
(g) B 5,000 5,175,000
Lomak Petroleum, Inc. 8.75%, '07 B 4,000 3,820,000
Nuevo Energy Co. 9.50%, '06 B 13,500 13,803,750
-----------
33,333,750
-----------
Oil Service & Equipment--2.9%
Bellwether Exploration Co.
10.875%, '07 B 4,000 4,120,000
NS Group, Inc. 13.50%, '03 B 10,500 11,681,250
-----------
15,801,250
-----------
Paper & Forest Products--5.5%
Buckeye Cellulose Corp. 9.25%,
'08 (g) Ba 5,500 5,596,250
Crown Paper Co. 11%, '05 B 5,100 4,985,250
Riverwood International Corp.
10.25%, '06 B 6,500 6,142,500
Riverwood International Corp.
10.875%, '08 Caa 5,000 4,200,000
SD Warren Co. Series B Sr. Sub.
Notes 12%, '04 B 4,250 4,669,688
Stone Container Corp. 9.875%,
'01 B 5,000 4,737,500
-----------
30,331,188
-----------
Publishing, Broadcasting, Printing & Cable--8.6%
Cablevision Systems Corp.
9.875%, '06 B 4,000 4,000,000
Frontiervision 11%, '06 B 8,000 8,020,000
Galaxy Telecom Sr. Sub. Notes
12.375%, '05 B 8,000 8,200,000
Granite Broadcasting Corp.
10.375%, '05 B 7,000 7,017,500
Hollinger International
Publishing, Inc. 9.25%, '07 B 3,400 3,383,000
Poland Communications, Inc. 144A
9.875%, '03 (b) B 12,200 11,992,234
Telemundo Group, Inc. 7%, '06
(e) B 5,000 4,687,500
-----------
47,300,234
-----------
Retail--1.2%
Central Tractor Farm & Country,
Inc. 10.625%, '07 B 3,500 3,570,000
Scotty's, Inc. Series A
Debenture 11.25%, '15 NR 3,018 2,867,100
-----------
6,437,100
-----------
Telecommunications Equipment--6.8%
Call-Net Enterprises, Inc. 0%,
'04 (e) B 7,000 5,932,500
CommNet Cellular, Inc. Sub.
Notes 11.25%, '05 Caa 4,000 4,210,000
See Notes to Financial Statements
32
<PAGE>
Telecommunications Equipment--(continued)
International CableTel, Inc.
Series B 0%, '06 (e) B $ 7,000 $ 4,550,000
International CableTel, Inc.
144A 10%, '07 (b) B(c) 8,000 7,820,000
Orion Network Systems, Inc. 0%,
'07 (e) B 8,000 4,120,000
USA Mobile Communications
Holdings, Inc. Sr. Note 14%, '04 B 3,500 3,605,000
Viatel, Inc. 0%, '05 (e) B 3,500 2,275,000
Western Wireless Corp. 10.50%,
'07 B 4,000 3,990,000
Wireless One, Inc. 0%, '06 (e) B 2,250 607,500
-----------
37,110,000
-----------
Truckers & Marine--1.1%
Viking Star Shipping 9.625%, '03 Ba 6,000 6,232,500
-----------
Utility--Electric 3.1%
California Energy Co. 9.875%,
'03 Ba 5,000 5,262,500
California Energy Co. 10.25%,
'04 (g) Ba 11,000 11,687,500
-----------
16,950,000
-----------
TOTAL NON-CONVERTIBLE BONDS
(Identified cost $300,310,559) 304,331,185
-----------
FOREIGN NON-CONVERTIBLE BONDS--27.5%
Argentina--4.6%
Bridas Corp. Yankee Sr. Note
12.50%, '99 B 11,500 12,621,250
CEI Citicorp Holdings 144A
9.75%, '07 (b) BB(c) 8,500 8,436,250
Transportadora de Gas del Sur
10.25%, '01 B 4,000 4,280,000
-----------
25,337,500
-----------
Bahamas--1.1%
Sun International Hotels 144A
9%, '07 (b) Ba 6,000 5,970,000
-----------
Bermuda--0.8%
AES China Generating Co. Yankee
10.125%, '06 Ba 4,400 4,609,000
-----------
Brazil--5.5%
Globo Communicacoes
Participacoes 144A 10.50%, '06
(b) BB(c) 10,000 10,218,750
RBS Participacoes SA 144A 11%,
'07 (b) BB(c) 5,000 5,000,000
Tevecap SA 144A 12.625%, '04 (b) B 8,225 8,317,531
TV Filme, Inc. 144A 12.875%, '04
(b) B 6,250 6,375,000
-----------
29,911,281
-----------
Cayman Islands--1.9%
Panda Global Energy Co. 144A
12.50%, '04 (b) B(c) 10,700 10,098,125
-----------
Colombia--3.2%
Comunicacion Celular SA 0%, '03
(e) B 10,500 7,297,500
Occidente Y Caribe Celular 0%,
'04 (e) B $16,085 $ 10,294,400
-----------
17,591,900
-----------
Greece--1.4%
Fage Dairy Industries SA 144A
9%, '07 (b) B 8,000 7,530,000
-----------
Indonesia--1.7%
Asia Pulp & Paper Co. 144A 12%,
'04 (b) (e) B 9,650 9,071,000
-----------
Mexico--6.8%
Aerovias De Mexico SA Euro 144A
9.75%, '00 (b) NR 3,500 3,425,625
Copamex Industries SA 144A
11.375%, '04 (b) B 8,000 8,160,000
Grupo Televisa SA 0%, '08 (e) Ba 5,600 3,654,000
Innova S De R.L. 144A 12.875%,
'07 (b) B 10,000 9,825,000
Ispat Mexicana SA Euro 10.375%,
'01 NR 12,000 12,285,000
-----------
37,349,625
-----------
Venezuela--0.5%
CanTV Finance Ltd. VNT 9.25%,
'04 Ba 3,000 2,970,000
-----------
TOTAL FOREIGN NON-CONVERTIBLE BONDS
(Identified cost $147,633,269) 150,438,431
-----------
FOREIGN CONVERTIBLE BONDS--0.2%
Mexico--0.2%
Empresas ICA Sociedad Euro Cv.
5%, '04 B(c) 1,500 1,121,250
-----------
TOTAL FOREIGN CONVERTIBLE BONDS
(Identified cost $1,044,307) 1,121,250
-----------
FOREIGN GOVERNMENT SECURITIES--7.2%
Dominican Republic--0.4%
Dominican Republic 6.375%, '24
(e) B(c) 2,500 1,962,500
-----------
Jordan--0.9%
Jordan Par 4%, '23 (e) Ba 8,000 4,675,000
-----------
Mexico--0.7%
United Mexican States Discount A
6.867%, '19 (e)(f) Ba 4,500 3,988,125
-----------
Morocco--1.7%
Morocco R&C Agreement Series A
6.375%, '09 (e) NR 10,800 9,504,000
-----------
Venezuela--3.5%
Banco Central Venezuela NMB B-NP
6.50%, '05 (e) Ba 1,000 890,625
Banco Central Venezuela NMB B-P
6.50%, '05 (e) Ba 5,000 4,453,125
Republic of Venezuela Series A
NMB 6.625%, '05 (e) Ba 7,000 6,234,375
Venezuela-FLIRB A 6.75%, '07 (e) Ba 4,762 4,276,787
Venezuela-FLIRB B 6.75%, '07 (e) Ba 3,810 3,421,425
-----------
19,276,337
-----------
See Notes to Financial Statements
33
<PAGE>
VALUE
----------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified cost $34,344,306) $ 39,405,962
-------------
SHARES
--------
PREFERRED STOCKS--4.5%
Paper & Forest Products--0.6%
SD Warren Co. Pfd. PIK Series B 14% 115,000 3,441,670
-------------
Publishing, Broadcasting, Printing &
Cable--3.9%
American Radio Systems Pfd. PIK 144A
11.375% (b) 97,252 9,554,960
Cablevision Systems Corp. Pfd. M B3 PIK
11.125% 58,388 5,400,869
Granite Broadcasting Corp. Pfd. PIK
144A 12.75% (b) 7,151 6,453,958
-------------
21,409,787
-------------
TOTAL PREFERRED STOCKS
(Identified cost $24,565,779) 24,851,457
-------------
CONVERTIBLE PREFERRED STOCKS--0.2%
Publishing, Broadcasting, Printing & Cable--0.2%
Granite Broadcasting Corp. Cv. Pfd. 30,000 1,301,250
-------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified cost $2,025,000) 1,301,250
-------------
COMMON STOCKS--0.1%
Publishing, Broadcasting, Printing & Cable--0.0%
Sullivan Holdings, Inc. Class C (d) 76 0
-------------
Telecommunications Equipment--0.1%
Viatel, Inc. (d) 84,233 526,458
-------------
TOTAL COMMON STOCKS
(Identified cost $850,646) 526,458
-------------
SHARES VALUE
--------- ---------------
WARRANTS--0.1%
Paper & Forest Products--0.1%
SD Warren Co. Warrants 144A (b) (d) 115,000 $ 575,000
-------------
TOTAL WARRANTS
(Identified cost $568,100) 575,000
-------------
FOREIGN WARRANTS--0.1%
Colombia--0.1%
Comunicacion Celular SA Warrants 144A (b)
(d) 10,500 787,500
Occidente Y Caribe Celular Warrants 144A
(b) (d) 64,340 0
-------------
TOTAL FOREIGN WARRANTS
(Identified cost $750,000) 787,500
-------------
TOTAL LONG-TERM INVESTMENTS--95.5%
(Identified cost $512,091,966) 523,338,493
-------------
STANDARD PAR
& POOR'S VALUE
RATING (000)
--------- --------
SHORT-TERM OBLIGATIONS--3.1%
Commercial Paper--2.5%
Ciesco L.P. 5.55%,
5-1-97 A-1+ $ 13,945 13,945,000
-------------
Federal Agency Securities--0.6%
Federal Home Loan
Mortgage Corp. 5.34%,
5-5-97 3,000 2,998,220
-------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $16,943,220) 16,943,220
-------------
TOTAL INVESTMENTS--98.6%
(Identified cost $529,035,186) 540,281,713(a)
Cash and receivables, less liabilities--1.4% 7,601,703
-------------
NET ASSETS--100.0% $547,883,416
=============
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $19,256,050 and gross
depreciation of $8,009,523 for income tax purposes. At April 30, 1997, the
aggregate cost of securities for federal income tax purposes was
$529,035,186.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30, 1997,
these securities amounted to a value of $188,032,676 or 34% 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) Rights incorporated as a unit.
(g) Segregated as collateral.
See Notes to Financial Statements
34
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
(Unaudited)
Assets
Investment securities at value
(Identified cost $529,035,186) $540,281,713
Receivables
Investment securities sold 16,767,945
Dividends and interest 11,112,672
Fund shares sold 3,563,140
--------------
Total assets 571,725,470
--------------
Liabilities
Payables
Custodian 6,874,074
Investment securities purchased 15,851,250
Fund shares repurchased 444,772
Investment advisory fee 283,262
Distribution fee 129,165
Transfer agent fee 115,445
Financial agent fee 16,975
Trustees' fee 3,562
Accrued expenses 123,549
--------------
Total liabilities 23,842,054
--------------
Net Assets $547,883,416
==============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $599,710,107
Undistributed net investment income 2,047,108
Accumulated net realized loss (65,120,326)
Net unrealized appreciation 11,246,527
--------------
Net Assets $547,883,416
==============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $513,102,323) 58,760,300
Net asset value per share $8.73
Offering price per share
$8.73/(1-4.75%) $9.17
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $34,781,093) 3,985,670
Net asset value and offering price per share $8.73
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997
(Unaudited)
Investment Income
Interest $26,420,056
Dividends 1,029,343
Security lending 4,695
------------
Total investment income 27,454,094
------------
Expenses
Investment advisory fee 1,771,256
Distribution fee--Class A 644,061
Distribution fee--Class B 148,766
Financial agent fee 96,233
Transfer agent 389,474
Printing 59,939
Custodian 33,828
Professional 21,104
Registration 15,540
Trustees 8,989
Miscellaneous 4,724
------------
Total expenses 3,193,914
------------
Net investment income 24,260,180
------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 15,997,073
Net change in unrealized appreciation (depreciation) on
investments (9,849,361)
------------
Net gain on investments 6,147,712
------------
Net increase in net assets resulting from operations $30,407,892
============
See Notes to Financial Statements
35
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- -----------------
<S> <C> <C>
From Operations
Net investment income $ 24,260,180 $ 47,719,085
Net realized gain 15,997,073 26,433,066
Net change in unrealized appreciation (depreciation) (9,849,361) 2,635,081
------------ -------------
Increase in net assets resulting from operations 30,407,892 76,787,232
------------ -------------
From Distributions to Shareholders
Net investment income--Class A (22,990,019) (46,688,677)
Net investment income--Class B (1,261,079) (1,579,272)
------------ -------------
Decrease in net assets from distributions to shareholders (24,251,098) (48,267,949)
------------ -------------
From Share Transactions
Class A
Proceeds from sales of shares (8,964,515 and 8,790,783 shares,
respectively) 78,692,551 73,572,017
Net asset value of shares issued from reinvestment of distributions
(1,319,594 and 2,806,249 shares, respectively) 11,611,822 23,385,527
Cost of shares repurchased (9,601,478 and 15,647,656 shares,
respectively) (84,450,910) (131,021,265)
------------ -------------
Total 5,853,463 (34,063,721)
------------ -------------
Class B
Proceeds from sales of shares (1,721,607 and 1,998,410 shares,
respectively) 15,165,985 16,749,310
Net asset value of shares issued from reinvestment of distributions
(60,942 and 76,435 shares, respectively) 535,965 639,323
Cost of shares repurchased (761,376 and 616,763 shares, respectively) (6,688,527) (5,170,475)
------------ -------------
Total 9,013,423 12,218,158
------------ -------------
Increase (decrease) in net assets from share transactions 14,866,886 (21,845,563)
------------ -------------
Net increase in net assets 21,023,680 6,673,720
Net Assets
Beginning of period 526,859,736 520,186,016
------------ -------------
End of period (including undistributed net investment income of
$2,047,108 and $2,038,026, respectively) $547,883,416 $ 526,859,736
============ =============
</TABLE>
See Notes to Financial Statements
36
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------------------
Year Ended October 31,
Six Months
Ended
4/30/97
(Unaudited) 1996 1995 1994 1993 1992
-------------- ------------ ----------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $8.63 $8.17 $8.11 $9.11 $8.14 $7.70
Income from investment operations
Net investment income 0.39 0.78 0.80 0.76 0.74 0.77
Net realized and unrealized gain
(loss) 0.10 0.46 0.04 (0.97) 0.97 0.44
------------ ----------- --------- ----------- --------- ---------
Total from investment operations 0.49 1.24 0.84 (0.21) 1.71 1.21
------------ ----------- --------- ----------- --------- ---------
Less distributions
Dividends from net investment
income (0.39) (0.78) (0.78) (0.76) (0.74) (0.77)
Tax return of capital -- -- -- (0.03) -- --
------------ ----------- --------- ----------- --------- ---------
Total distributions (0.39) (0.78) (0.78) (0.79) (0.74) (0.77)
------------ ----------- --------- ----------- --------- ---------
Change in net asset value 0.10 0.46 0.06 (1.00) 0.97 0.44
------------ ----------- --------- ----------- --------- ---------
Net asset value, end of period $8.73 $8.63 $8.17 $8.11 $9.11 $8.14
============ =========== ========= =========== ========= =========
Total return(1) 5.73%(3) 15.95% 11.19% (2.57)% 21.87% 16.28%
Ratios/supplemental data:
Net assets, end of period
(thousands) $513,102 $501,265 $507,855 $531,773 $182,333 $113,197
Ratio to average net assets of:
Operating expenses 1.13%(2) 1.17% 1.21% 1.19% 1.04% 1.08%
Net investment income 8.94%(2) 9.21% 10.01% 9.01% 8.46% 9.51%
Portfolio turnover 69%(3) 162% 147% 222% 157% 205%
</TABLE>
<TABLE>
<CAPTION>
Class B
----------------------------------------------------
Six Months From
Ended Inception
4/30/97 Year Ended October 31, 2/16/94 to
(Unaudited) 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 0.36 0.71 0.72 0.54
Net realized and unrealized gain
(loss) 0.11 0.45 0.07 (1.25)
------------ ----------- --------- -----------
Total from investment operations 0.47 1.16 0.79 (0.71)
------------ ----------- --------- -----------
Less distributions
Dividends from net investment
income (0.37) (0.72) (0.73) (0.52)
Tax return of capital -- -- -- (0.02)
------------ ----------- --------- -----------
Total distributions (0.37) (0.72) (0.73) (0.54)
------------ ----------- --------- -----------
Change in net asset value 0.10 0.44 0.06 (1.25)
------------ ----------- --------- -----------
Net asset value, end of period $8.73 $8.63 $8.19 $8.13
============ =========== ========= ===========
Total return(1) 5.44%(3) 14.88% 10.44% (7.67)%(3)
Ratios/supplemental data:
Net assets, end of period
(thousands) $34,781 $25,595 $12,331 $6,056
Ratio to average net assets of:
Operating expenses 1.88%(2) 1.92% 1.97% 1.80 %(2)
Net investment income 8.26%(2) 8.47% 9.18% 9.12 %(2)
Portfolio turnover 69%(3) 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
37
<PAGE>
PHOENIX U.S. GOVERNMENT SECURITIES FUND SERIES
INVESTOR PROFILE
Phoenix U.S. Government Securities Fund SeriesPhoenix U.S. Government
Securities Fund is designed for conservative investors seeking current income
and conservation of capital. The Fund invests only in obligations issued or
guaranteed by the U.S. Government or its agencies.
INVESTMENT ADVISER'S REPORT
Phoenix U.S. Government Securities Fund Class A shares provided a total return
of 1.09% and Class B shares returned 0.71% for the six-month reporting period.
These results slightly lagged the general market as measured by the Lehman
Brothers Government Bond Index,* which earned 1.32% for the period. All
performance figures assume reinvestment of dividends and exclude the effect of
sales charges.
Ongoing confusion about the strength of the economy and the direction of
interest rates led to increased volatility in the market. As spreads between
Treasuries and mortgage-backed securities widened toward the end of last year,
we began adding to our weighting in mortgage-backed securities.
The Fund is currently about 80% invested in this sector. This major shift from
our 10% position last October 31 was the most significant contributor to the
Fund's strong relative performance over the last six months.
Given the current market environment, no one sector of the mortgage market
appears more attractive so the portfolio contains both premium and discount
securities. Our focus is on identifying issues that are inefficiently priced and
provide the highest yield.
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 between Treasuries and agency
mortgage-backed issues to determine the best value.
The Fund's duration will be kept equal to its benchmark to minimize interest
rate surprises. As always, we will continue to conservatively manage the Fund,
emphasizing those sectors that we believe possess the best risk/reward
potential.
* The Lehman Brothers Government Bond Index is composed of all publicly issued,
nonconvertible, domestic debt of the U.S. government or any agency,
quasi-federal corporations or corporate debt guaranteed by the U.S.
government.
38
<PAGE>
INVESTMENTS AT APRIL 30, 1997
(Unaudited)
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- -------- --------------
U.S. GOVERNMENT AND AGENCY SECURITIES--88.6%
U.S. Treasury Bonds--3.9%
U.S. Treasury Bonds 7.125%, '23 AAA $ 7,500 $ 7,560,600
------------
U.S. Treasury Notes--4.6%
U.S. Treasury Inflation Index
Notes 3.375%, '07 (f) AAA 9,000 8,912,185
------------
Agency Mortgage-Backed Securities--80.1%
FHLMC 6.75%, '19 AAA 1,500 1,477,515
FNMA 8%, '97 AAA 28,500 28,882,969
FNMA 10%, '04 AAA 3,444 3,629,387
FNMA 8.70%, '16 AAA 907 928,469
FNMA 6.65%, '17 AAA 1,500 1,483,338
FNMA 6.50%, '18 AAA 1,500 1,469,850
FNMA 8.50%, '19 AAA 1,181 1,185,497
FNMA 6.75%, '19-'22 AAA 8,442 8,123,263
FNMA 7%, '27 (e) AAA 32,120 31,136,657
FNMA 9%, '26-'27 AAA 17,555 18,392,667
GNMA 8.50%, '01-'27 (e) AAA 26,734 27,613,575
GNMA 8%, '05-'06 AAA 152 155,938
GNMA 6.50%, '26 AAA 31,819 29,910,228
------------
154,389,353
------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
(Identified cost $171,838,925) 170,862,138
------------
MUNICIPAL BONDS--5.5%
Atlanta Downtown Development
Authority Lease Revenue
Taxable 6.875%, '21 (g) AAA 4,800 4,507,344
Chicago Public Building Taxable
6.25%, '99 (c) AAA 2,000 1,990,500
Chicago Public Building Taxable
6.65%, '01 (c) AAA 1,000 997,000
Chicago Public Building Taxable
7%, '06 (c) AAA 2,000 1,993,440
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- --------- ----------------
MUNICIPAL BONDS--continued
Chicago Public Building Taxable
7%, '07 AAA $1,050 $ 1,037,820
---------------
TOTAL MUNICIPAL BONDS
(Identified cost $10,537,202) 10,526,104
---------------
SHARES
--------
PREFERRED STOCKS--5.1%
REITS--5.1%
Home Ownership Funding 2,
Step-down Pfd. 144A
13.338% (b) (d) 10,000 9,799,760
---------------
TOTAL PREFERRED STOCKS
(Identified cost $9,959,865) 9,799,760
---------------
TOTAL LONG-TERM INVESTMENTS--99.2%
(Identified cost $192,335,992) 191,188,002
---------------
PAR
VALUE
(000)
--------
SHORT-TERM OBLIGATIONS--15.3%
Federal Agency Securities--15.3%
Federal Home Loan Mortgage Corp. 5.37%,
5-6-97 $10,285 10,277,329
Federal Home Loan Mortgage Corp. 5.37%,
5-9-97 19,275 19,251,998
---------------
29,529,327
---------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $29,529,327) 29,529,327
---------------
TOTAL INVESTMENTS--114.5%
(Identified cost $221,865,319) 220,717,329(a)
Cash and receivables, less
liabilities--(14.5%) (27,878,122)
---------------
NET ASSETS--100.0% $192,839,207
===============
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $478,624 and gross
depreciation of $1,691,549 for income tax purposes. At April 30, 1997, the
aggregate cost of securities for federal income tax purposes was
$221,930,254.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securites may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30, 1997,
these securities amounted to a value of $9,799,760 or 5.1% of net assets.
(c) These Series 1996 bonds are fully defeased by U.S. Government Treasury
Obligations.
(d) Dividend payments backed by FHLMC ("Freddie Mac").
(e) Includes securities segregated as collateral.
(f) Variable or step coupon bond; interest rate shown reflects the rate
currently in effect.
(g) The revenue from this security is backed by the U.S. Government.
See Notes to Financial Statements
39
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1997
(Unaudited)
Assets
Investment securities at value
(Identified cost $221,865,319) $220,717,329
Cash 7,334
Receivables
Interest and dividends 1,290,923
Fund shares sold 61,946
--------------
Total assets 222,077,532
--------------
Liabilities
Payables
Investment securities purchased 28,660,313
Fund shares repurchased 311,856
Investment advisory fee 72,148
Transfer agent fee 65,331
Distribution fee 43,117
Financial agent fee 8,221
Trustees' fee 4,923
Accrued expenses 72,416
--------------
Total liabilities 29,238,325
--------------
Net Assets $192,839,207
==============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $207,113,149
Undistributed net investment income 576,396
Accumulated net realized loss (13,702,348)
Net unrealized depreciation (1,147,990)
--------------
Net Assets $192,839,207
==============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $187,852,623) 20,158,904
Net asset value per share $9.32
Offering price per share $9.32/(1-4.75%) $9.78
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $4,986,584) 536,989
Net asset value and offering price per share $9.29
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997
(Unaudited)
Investment Income
Interest $ 6,707,645
Dividends 79,560
Security lending 11,829
------------
Total investment income 6,799,034
------------
Expenses
Investment advisory fee 456,945
Distribution fee--Class A 247,645
Distribution fee--Class B 24,853
Financial agent fee 44,303
Transfer agent 172,235
Printing 32,528
Professional 17,255
Registration 15,725
Custodian 10,644
Trustees 10,427
Miscellaneous 8,831
------------
Total expenses 1,041,391
------------
Net investment income 5,757,643
------------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized loss on securities (2,583,277)
Net change in unrealized appreciation (depreciation) on
investments (1,070,423)
------------
Net loss on investments (3,653,700)
------------
Net increase in net assets resulting from operations $ 2,103,943
============
See Notes to Financial Statements
40
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
From Operations
Net investment income $ 5,757,643 $ 12,502,080
Net realized gain (loss) (2,583,277) (2,717,827)
Net change in unrealized appreciation (depreciation) (1,070,423) (904,425)
-------------- ---------------
Increase in net assets resulting from operations 2,103,943 8,879,828
-------------- ---------------
From Distributions to Shareholders
Net investment income--Class A (5,324,159) (11,752,701)
Net investment income--Class B (121,211) (201,921)
-------------- ---------------
Decrease in net assets from distributions to shareholders (5,445,370) (11,954,622)
-------------- ---------------
From Share Transactions
Class A
Proceeds from sales of shares (1,964,728 and 3,190,243 shares,
respectively) 18,371,773 30,366,623
Net asset value of shares issued from reinvestment of distributions
(317,675 and 680,397 shares, respectively) 2,984,269 6,412,886
Cost of shares repurchased (4,141,230 and 6,419,884 shares,
respectively) (38,803,358) (61,087,957)
-------------- ---------------
Total (17,447,316) (24,308,448)
-------------- ---------------
Class B
Proceeds from sales of shares (75,850 and 241,903 shares, respectively) 714,621 2,287,444
Net asset value of shares issued from reinvestment of distributions
(7,598 and 11,893 shares, respectively) 71,169 111,576
Cost of shares repurchased (62,365 and 119,425 shares, respectively) (585,233) (1,122,209)
-------------- ---------------
Total 200,557 1,276,811
-------------- ---------------
Decrease in net assets from share transactions (17,246,759) (23,031,637)
-------------- ---------------
Net decrease in net assets (20,588,186) (26,106,431)
Net Assets
Beginning of period 213,427,393 239,533,824
-------------- ---------------
End of period (including undistributed net investment income of $576,396
and $264,123, respectively) $192,839,207 $213,427,393
============== ===============
</TABLE>
See Notes to Financial Statements
41
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------------------------
Year Ended October 31,
Six Months
Ended
4/30/97
(Unaudited) 1996 1995 1994 1993 1992
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $9.47 $9.60 $8.88 $9.87 $9.91 $9.65
Income from investment operations
Net investment income 0.27 0.52 0.55 0.64 0.62(1) 0.65(1)
Net realized and unrealized gain
(loss) (0.17) (0.15) 0.72 (1.02) 0.34 0.26
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.10 0.37 1.27 (0.38) 0.96 0.91
---------- ---------- ---------- ---------- ---------- ----------
Less distributions
Dividends from net investment
income (0.25) (0.50) (0.55) (0.45) (0.62) (0.65)
Dividends from net realized gains -- -- -- (0.02) (0.38) --
Tax return of capital -- -- -- (0.14) -- --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions (0.25) (0.50) (0.55) (0.61) (1.00) (0.65)
---------- ---------- ---------- ---------- ---------- ----------
Change in net asset value (0.15) (0.13) 0.72 (0.99) (0.04) 0.26
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $9.32 $9.47 $9.60 $8.88 $9.87 $9.91
========== ========== ========== ========== ========== ==========
Total return(2) 1.09%(4) 4.05% 14.81% (3.98)% 10.18% 9.74%
Ratios/supplemental data:
Net assets, end of period
(thousands) $187,853 $208,552 $235,879 $262,157 $57,072 $40,365
Ratio to average net assets of:
Operating expenses 1.01%(3) 1.03% 0.99% 0.98 % 0.75% 0.77%
Net investment income 5.69%(3) 5.55% 6.01% 5.92 % 6.19% 6.64%
Portfolio turnover 119%(4) 379% 178% 101 % 264% 285%
</TABLE>
<TABLE>
<CAPTION>
Class B
---------------------------------------------------
Six Months From
Ended Inception
4/30/97 Year Ended October 31, 2/24/94 to
(Unaudited) 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 0.23 0.44 0.48 0.39
Net realized and unrealized gain (loss) (0.16) (0.14) 0.72 (0.75)
---------- ---------- ---------- ----------
Total from investment operations 0.07 0.30 1.20 (0.36)
---------- ---------- ---------- ----------
Less distributions
Dividends from net investment income (0.23) (0.43) (0.48) (0.30)
Dividends from net realized gains -- -- -- --
Tax return of capital -- -- -- (0.09)
---------- ---------- ---------- ----------
Total distributions (0.23) (0.43) (0.48) (0.39)
---------- ---------- ---------- ----------
Change in net asset value (0.16) (0.13) 0.72 (0.75)
---------- ---------- ---------- ----------
Net asset value, end of period $9.29 $9.45 $9.58 $8.86
========== ========== ========== ==========
Total return(2) 0.71%(4) 3.39% 13.82% (3.83)%(4)
Ratios/supplemental data:
Net assets, end of period (thousands) $4,987 $4,875 $3,655 $1,238
Ratio to average net assets of:
Operating expenses 1.76%(3) 1.78% 1.73% 2.00 %(3)
Net investment income 4.95%(3) 4.79% 5.23% 4.49 %(3)
Portfolio turnover 119%(4) 379% 178% 101 %
</TABLE>
(1) Includes reimbursement of operating expenses by investment adviser of $0.03
and $0.04, respectively.
(2) Maximum sales load is not reflected in the total return calculation.
(3) Annualized
(4) Not annualized
See Notes to Financial Statements
42
<PAGE>
PHOENIX MONEY MARKET FUND SERIES
INVESTOR PROFILE
Phoenix Money Market Fund SeriesPhoenix 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 during this six-month
reporting period. As of April 30, 1997, current yield was 4.86% for Class A
shares and 4.10% for Class B shares. These results are in line with the 4.89%
average money market yield as reported in the IBC Donoghue's Money Fund Report.*
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.
Ongoing confusion about the strength of the economy has kept money market
yields relatively volatile. With new reports of continuing economic strength,
investors once again looked for the Federal Reserve to raise interest rates.
During this time, we kept the Fund's average maturity relatively neutral so
that the portfolio would be well-positioned should rates move in either
direction. We continued to emphasize high-quality commercial paper and
variable-rate instruments to enhance yield. The Fund's average credit quality
remains A1/P1.
OUTLOOK
We anticipate slower U.S. economic growth moving into the second half of 1997.
Inflation should remain under control without the need for significant interest
rate increases. However, if the economy heats up and inflation is rekindled, the
Fed is expected to keep raising short-term interest rates.
The Fund will continue to emphasize credit quality, focusing on higher
yielding issues, such as commercial paper and variable-rate instruments. 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.
* The Donoghue Money Fund Average is an average of all major money-market fund
yields as reported in the IBC Donoghue's Money Fund Report.
43
<PAGE>
INVESTMENTS AT APRIL 30, 1997
(Unaudited)
Face
Value Interest Maturity
(000) Description Rate Date Value
------------------------ --------- ----------- -------------
U.S. TREASURY NOTES--1.7%
$ 3,500 U.S. Treasury Notes 5.13% 02/28/98 $3,482,181
-----------
TOTAL U.S. TREASURY NOTES 3,482,181
-----------
FEDERAL AGENCY SECURITIES--8.6%
4,555 Federal Farm Credit Bank 5.34 05/20/97 4,542,163
3,000 Federal Home Loan Banks 5.79 07/21/97 3,000,000
6,500 Federal Home Loan Banks 5.78 07/28/97 6,500,000
3,500 Federal Home Loan Banks 5.69 11/20/97 3,500,000
-----------
TOTAL FEDERAL AGENCY SECURITIES 17,542,163
-----------
FEDERAL AGENCY SECURITIES--VARIABLE--18.0% (b)
Reset
Date
-----------
10,500 Federal Farm Credit
Bank (final maturity
07/24/00) 5.79 05/01/97 10,503,828
1,000 Student Loan Marketing
Assoc. (final
maturity 10/14/97) 5.53 05/06/97 997,812
1,000 Student Loan Marketing
Assoc. (final
maturity 11/24/97) 5.53 05/06/97 1,000,000
3,500 Student Loan Marketing
Assoc. (final
maturity 11/10/97) 5.55 05/06/97 3,497,174
2,000 Student Loan Marketing
Assoc. (final
maturity 02/22/99) 5.56 05/06/97 2,000,000
5,000 Student Loan Marketing
Assoc. (final
maturity 02/08/99) 5.57 05/06/97 5,000,000
3,000 Student Loan Marketing
Assoc. (final
maturity 03/07/01) 5.62 05/06/97 3,000,000
3,500 Student Loan Marketing
Assoc. (final
maturity 10/30/97) 5.71 05/06/97 3,500,964
4,500 Federal Farm Credit
Bank (final maturity
04/01/99) 5.61 06/01/97 4,500,000
3,000 Federal National
Mortgage Assoc.
(final maturity
12/14/98) 5.42 06/14/97 2,997,327
-----------
TOTAL FEDERAL AGENCY SECURITIES--VARIABLE 36,997,105
-----------
Face Standard
Value & Poor's Interest Maturity
(000) Description Rating Rate Date Value
-------- ---------------------- --------- -------------------- -------------
COMMERCIAL PAPER--70.2%
$4,000 Potomac Electric Power
Co. A-1 5.50% 05/01/97 $4,000,000
695 Corporate Asset
Funding Co., Inc. A-1+ 5.55 05/02/97 694,893
3,300 Gannett Co. A-1 5.55 05/05/97 3,297,965
8,000 Vermont American Corp. A-1+ 5.52 05/05/97 7,995,093
250 Abbott Laboratories A-1+ 5.50 05/06/97 249,809
6,840 Allied Signal, Inc. A-1 5.50 05/06/97 6,834,775
1,000 Corporate Asset
Funding Co., Inc. A-1+ 5.54 05/07/97 999,077
2,500 Goldman Sachs & Co. A-1+ 5.50 05/07/97 2,497,688
1,580 Anheuser-Busch Cos.,
Inc. A-1+ 5.48 05/09/97 1,578,076
3,350 Corporate Receivables
Corp. A-1 5.62 05/09/97 3,345,816
4,500 Donnelley (R.R.) &
Sons Co. A-1 5.53 05/12/97 4,492,396
5,500 Greenwich Funding
Corp. A-1+ 5.37 05/13/97 5,490,155
4,220 Pfizer, Inc. A-1+ 5.50 05/14/97 4,211,619
1,300 CXC, Inc. A-1+ 5.35 05/15/97 1,297,295
4,500 Goldman Sachs & Co. A-1+ 5.55 05/15/97 4,490,288
3,985 Corporate Asset
Funding Co., Inc. A-1+ 5.55 05/16/97 3,975,170
2,500 McKenna Triangle
National Corp. A-1+ 5.52 05/16/97 2,494,250
545 Pitney Bowes Credit
Corp. A-1+ 5.50 05/17/97 543,918
4,625 Donnelly (R.R.) & Sons
Co. A-1 5.50 05/19/97 4,612,281
3,500 Private Export Funding
Corp. A-1+ 5.52 05/19/97 3,490,340
800 Warner-Lambert Co. A-1+ 5.50 05/20/97 797,678
6,440 General RE Corp. A-1+ 5.53 05/21/97 6,419,710
5,000 Greenwich Funding
Corp. A-1+ 5.53 05/22/97 4,983,871
2,675 General RE Corp. A-1+ 5.50 05/23/97 2,666,009
4,785 Pitney Bowes Credit
Corp. A-1+ 5.50 05/23/97 4,768,917
5,000 Receivables Capital
Corp. A-1+ 5.55 05/27/97 4,979,958
See Notes to Financial Statements
44
<PAGE>
Face Standard
Value & Poor's Interest Maturity
(000) Description Rating Rate Date Value
-------- ---------------------- --------- -------------------- -------------
COMMERCIAL PAPER--continued
$3,040 Southwestern Bell
Telephone Co. A-1+ 5.50% 05/27/97 $3,027,924
2,500 Gannett Co. A-1 5.50 05/28/97 2,489,687
5,000 General Electric
Capital Corp. A-1+ 5.52 05/28/97 5,000,000
1,560 Enterprise Funding
Corp. A-1+ 5.55 05/29/97 1,553,266
3,035 Minnesota Mining &
Manufacturing Co. A-1+ 5.50 05/29/97 3,022,017
920 Goldman Sachs & Co. A-1+ 5.50 05/30/97 915,924
3,000 Merrill Lynch & Co.,
Inc. A-1+ 5.56 05/30/97 2,986,563
3,645 Exxon Imperial U.S.,
Inc. A-1+ 5.50 06/03/97 3,626,623
2,500 General RE Corp. A-1+ 5.50 06/05/97 2,486,510
3,876 McKenna Triangle
National Corp. A-1+ 5.56 06/06/97 3,854,450
2,000 Receivables Capital
Corp. A-1+ 5.58 06/09/97 1,987,910
1,350 Ciesco L.P. A-1+ 5.60 06/16/97 1,340,340
1,500 Preferred Receivables
Funding Corp. A-1 5.32 06/16/97 1,489,803
2,240 Receivables Capital
Corp. A-1+ 5.43 06/16/97 2,224,458
$ 394 Receivables Capital
Corp. A-1+ 5.60% 06/16/97 $ 391,181
3,000 Preferred Receivables
Funding Corp. A-1 5.35 06/19/97 2,978,154
2,025 Preferred Receivables
Funding Corp. A-1 5.65 07/09/97 2,003,071
2,580 Beta Finance, Inc. A-1+ 5.30 08/26/97 2,535,559
4,000 Cargill, Inc. A-1+ 5.38 09/03/97 3,925,278
1,500 Corporate Asset
Funding Co., Inc. A-1+ 5.75 10/08/97 1,461,667
500 Preferred Receivables
Funding Corp. A-1 5.80 11/03/97 485,017
3,000 Corporate Receivables
Corp. A-1 5.35 11/14/97 2,912,171
------------
TOTAL COMMERCIAL PAPER 143,904,620
------------
MEDIUM-TERM NOTES--2.0%
4,000 Beta Finance, Inc. A-1+ 5.80 08/14/97 4,000,000
------------
TOTAL MEDIUM-TERM NOTES 4,000,000
------------
TOTAL INVESTMENTS--100.5%
(Identified cost $205,926,069) 205,926,069(a)
Cash and receivables, less liabilities--(0.5%) (948,277)
------------
NET ASSETS--100.0% $204,977,792
============
(a) Federal Income Tax Information: At April 30, 1997, the aggregate cost of
securities was the same for book and tax purposes.
(b) Variable rate demand note. The interest rates shown reflect the rate
currently in effect.
See Notes to Financial Statements
45
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
(Unaudited)
Assets
Investment securities at value
(Identified cost $205,926,069) $205,926,069
Cash 326,792
Receivables
Fund shares sold 957,019
Interest 546,444
--------------
Total assets 207,756,324
--------------
Liabilities
Payables
Fund shares repurchased 2,376,578
Dividend distributions 166,135
Investment advisory fee 76,029
Transfer agent fee 67,162
Financial agent fee 9,411
Distribution fee 8,413
Trustees' fee 5,003
Accrued expenses 69,801
--------------
Total liabilities 2,778,532
--------------
Net Assets $204,977,792
==============
Net Assets Consist of:
Capital paid in on shares of beneficial interest $204,977,792
--------------
Net Assets $204,977,792
==============
Class A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $192,682,679) 192,682,679
Net asset value and offering price per share $1.00
Class B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $12,295,113) 12,295,113
Net asset value and offering price per share $1.00
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997
(Unaudited)
Investment Income
Interest $5,423,424
-----------
Total investment income 5,423,424
-----------
Expenses
Investment advisory fee 396,741
Distribution fee--Class B 39,813
Financial agent fee 43,549
Transfer agent fee 247,627
Registration 36,630
Printing 33,692
Professional 16,533
Custodian 14,025
Trustees 10,429
Miscellaneous 1,231
-----------
Total expenses 840,270
-----------
Net investment income $4,583,154
===========
See Notes to Financial Statements
46
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
--------------- -----------------
<S> <C> <C>
From Operations
Net investment income $ 4,583,154 $ 9,418,637
------------- ----------------
From Distributions to Shareholders
Net investment income--Class A (4,374,776) (9,064,115)
Net investment income--Class B (208,378) (354,522)
------------- ----------------
Decrease in net assets from distributions to shareholders (4,583,154) (9,418,637)
------------- ----------------
From Share Transactions
Class A
Proceeds from sales of shares (394,042,717 and 1,212,801,272 shares,
respectively) 394,042,717 1,212,801,272
Net asset value of shares issued from reinvestment of distributions
(3,946,720 and 8,374,618 shares, respectively) 3,946,720 8,374,618
Cost of shares repurchased (398,166,165 and 1,221,850,524 shares,
respectively) (398,166,165) (1,221,850,524)
------------- ----------------
Total (176,728) (674,634)
------------- ----------------
Class B
Proceeds from sales of shares (16,979,691 and 16,991,839 shares,
respectively) 16,979,691 16,991,839
Net asset value of shares issued from reinvestment of distributions
(162,287 and 281,654 shares, respectively) 162,287 281,654
Cost of shares repurchased (15,069,402 and 15,556,837 shares,
respectively) (15,069,402) (15,556,837)
------------- ----------------
Total 2,072,576 1,716,656
------------- ----------------
Increase in net assets from share transactions 1,895,848 1,042,022
------------- ----------------
Net increase in net assets 1,895,848 1,042,022
Net Assets
Beginning of period 203,081,944 202,039,922
------------- ----------------
End of period $ 204,977,792 $ 203,081,944
============= ================
</TABLE>
See Notes to Financial Statements
47
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------------------------
Year Ended October 31,
Six Months
Ended
4/30/97
(Unaudited) 1996 1995 1994 1993 1992
------------ ------------ ------------------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations
Net investment income 0.023 0.047 0.053 0.032 0.025(1) 0.035(1)
---------- ---------- ---------- ---------- ---------- ----------
Total from investment
operations 0.023 0.047 0.053 0.032 0.025 0.035
---------- ---------- ---------- ---------- ---------- ----------
Less distributions
Dividends from net investment
income (0.023) (0.047) (0.053) (0.032) (0.025) (0.035)
---------- ---------- ---------- ---------- ---------- ----------
Change in net asset value -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========== ========== ========== ========== ========== ==========
Total return 2.31%(3) 4.67% 5.32% 3.20% 2.50% 3.50%
Ratios/supplemental data:
Net assets, end of period
(thousands) $192,683 $192,859 $193,534 $196,566 $170,334 $180,786
Ratio to average net assets of:
Operating expenses 0.81%(2) 0.84% 0.71% 0.85% 0.85% 0.85%
Net investment income 4.66%(2) 4.68% 5.31% 3.19% 2.53% 3.50%
</TABLE>
<TABLE>
<CAPTION>
Class B
---------------------------------------------------
Six Months From
Ended Inception
4/30/97 Year Ended October 31, 7/15/94 to
(Unaudited) 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 0.019 0.039 0.046 0.007
---------- ---------- ---------- ----------
Total from investment operations 0.019 0.039 0.046 0.007
---------- ---------- ---------- ----------
Less distributions
Dividends from net investment
income (0.019) (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 1.94%(3) 3.93% 4.63% 0.70%(3)
Ratios/supplemental data:
Net assets, end of period
(thousands) $12,295 $10,223 $8,506 $2,086
Ratio to average net assets of:
Operating expenses 1.56%(2) 1.59% 1.44% 1.60%(2)
Net investment income 3.93%(2) 3.92% 4.62% 3.46%(2)
</TABLE>
(1) Includes reimbursement of operating expenses by investment adviser of
$0.0001 and $0.001, respectively.
(2) Annualized
(3) Not annualized
See Notes to Financial Statements
48
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997 (Unaudited)
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix Series Fund (the "Trust") is organized as a Massachusetts business
trust and is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end management investment company. Each Series has distinct
investment objectives. The Balanced Fund Series seeks to provide reasonable
income, long-term capital growth and conservation of capital. The Convertible
Fund Series seeks as its investment objectives income and the potential for
capital appreciation; 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 substantially all of its taxable income to its shareholders.
In addition, each Series intends to distribute an amount sufficient to avoid
imposition of any excise tax under Section 4982 of the Code. Therefore, no
provision for federal income taxes or excise taxes has been made.
D. Distributions to shareholders:
Distributions are recorded by each Series on the ex- dividend date. Income
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
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
49
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997 (Unaudited) (Continued)
currency exchange rate effective at the trade date. The gain or loss resulting
from a change in currency exchange rates between the trade and settlement dates
of a portfolio transaction is treated as a gain or loss on foreign currency.
Likewise, the gain or loss resulting from a change in currency exchange rates,
between the date income is accrued and paid, is treated as a gain or loss on
foreign currency. The Trust does not separate that portion of the results of
operations arising from changes in exchange rates and that portion arising from
changes in the market prices of securities.
F. Forward currency contracts:
Each of the Series, except U.S. Government Securities Fund Series and Money
Market Fund Series, may enter into forward currency contracts in conjunction
with the planned purchase or sale of foreign denominated securities in order to
hedge the U.S. dollar cost or proceeds. Forward currency contracts involve, to
varying degrees, elements of market risk in excess of the amount recognized in
the statement of assets and liabilities. Risks arise from the possible movements
in foreign exchange rates or if the counterparty does not perform under the
contract.
A forward currency contract involves an obligation to purchase or sell a
specific currency at a future date, which may be any number of days from the
date of the contract agreed upon by the parties, at a price set at the time of
the contract. These contracts are traded directly between currency traders and
their customers. The contract is marked-to-market daily and the change in market
value is recorded by each Series as an unrealized gain (or loss). When the
contract is closed, the Series records a realized gain (or loss) equal to the
change in the value of the contract when it was opened and the value at the time
it was closed.
G. 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 April
30, 1997, the Trust had the following amounts of security loans:
Value of
Value of Securities
Collateral on Loan
------------- ------------
Balanced Fund Series ............ $25,177,071 $24,788,713
Convertible Fund Series ......... 5,561,700 5,238,388
Growth Fund Series ............ 33,458,538 32,661,026
Aggressive Growth Fund Series . 12,476,285 12,231,807
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:
Each Series may purchase put or call options on securities and securities
indices and foreign currencies for the purpose of hedging against changes in the
market value of the underlying securities or foreign currencies. The Series pays
a premium which is included in the Series' Schedule of Investments and
subsequently marked to market to reflect the current value of the option. The
risk associated with purchasing put and call options is limited to the premium
paid.
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%
50
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997 (Unaudited) (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 Fund that it retained selling commissions of $286,658
for Class A shares and deferred sales charges of $196,333 for Class B shares,
for the six months ended April 30, 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 six months
ended April 30, 1997, $1,390,447 was earned by the Distributor and $5,878,816
was earned by unaffiliated participants.
As Financial Agent of the Fund, 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 Funds' Transfer Agent with State Street Bank and
Trust Company as sub-transfer agent. For the six months ended April 30, 1997,
transfer agent fees were $4,580,378 of which PEPCO retained $1,807,307 which is
net of fees paid to State Street.
At April 30, 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 $ 153,727
High Yield Fund Series Class A ........................ 379 3,301
U.S. Government Securities Fund Series Class A ...... 290 2,702
Money Market Fund Series Class A ..................... 9,405,480 9,405,480
NOTE 3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended April 30,
1997 (excluding U.S. Government and agency securities and short-term securities)
aggregated the following:
Purchases Sales
---------------- ---------------
Balanced Fund Series ......... $1,171,430,373 $1,368,305,363
Convertible Fund Series ...... 116,272,297 168,995,914
Growth Fund Series ............ 1,908,048,531 2,047,521,095
Aggressive Growth Fund Series 682,128,639 701,048,023
High Yield Fund Series ...... 343,401,731 338,486,090
U.S. Government Securities
Fund Series ............... 10,024,800 64,935
Purchases and sales of U.S. Government and agency securities during the six
months ended April 30, 1997, aggregated the following:
Purchases Sales
-------------- -------------
Balanced Fund Series ......... $743,047,899 $908,044,597
High Yield Fund Series ...... 24,198,711 29,813,672
U.S. Government Securities
Fund Series ............... 227,212,279 234,201,228
NOTE 4. CAPITAL LOSS CARRYOVERS
Certain funds had capital loss carryforwards which may be used to offset
future capital gains.
U.S.
Government
Expiration High Yield Securities
Date Fund Series Fund Series
- --------------- -------------- ------------
1997 ......... $177,036,784 $13,922,859
1998 ......... 66,472,552 1,816,304
2002 ......... 14,103,053 8,684,579
2003 ......... 46,929,335 --
2004 ......... -- 2,433,827
------------- ------------
Total ...... $304,541,724 $26,857,569
============= ============
51
<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 Aggressive Growth Fund Series seeks as its investment objective
appreciation of capital through the use of aggressive investment techniques.
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 U.S. Government Securities Fund Series seeks as its investment
objective a high level of current income consistent with safety of principal.
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.
WHAT IF MY FINANCIAL NEEDS CHANGE?
Just call us. At your request, the value of shares in any account can be
exchanged toward the purchase of shares of any other fund within the Series Fund
by using the Exchange Privilege.
HOW DOES THE EXCHANGE PRIVILEGE WORK?
Our Exchange Privilege offers the flexibility needed to assure the most
suitable portfolio throughout your lifetime. At any time you may redirect some
or all of your present holdings into another fund in the Series Fund which
better serves your needs. Just call us with the details. We'll process the
exchange free of charge. The toll-free number to call with your exchange request
is 800-367-5877. The exchange privilege may be modified or terminated, as noted
in the prospectus.
HOW DO I MAKE ADDITIONAL INVESTMENTS?
Send your check directly to State Street Bank and Trust Company, P.O. Box
8301, Boston, MA 02266-8301. Please include either the bottom section of your
confirmation statement or a simple letter of instruction.
CAN I MAKE AUTOMATIC MONTHLY INVESTMENTS?
You may authorize automatic monthly investments for as little as $25 to be
made directly from your personal checking account. An application is available
from the Series Fund.
CAN I ESTABLISH AN INDIVIDUAL RETIREMENT ACCOUNT (IRA) WITH PHOENIX SERIES
FUND?
Yes! The Phoenix Series Fund is an appropriate investment vehicle for
qualified retirement plans including IRAs, Keoghs, Pension and Profit Sharing
Plans.
HOW DO I ESTABLISH AN IRA?
Just call us. We'll send you our EASY IRA KIT which includes an IRA
application and other required documents.
HOW MUCH CAN I INVEST INTO AN IRA?
Individuals may invest up to $2,000 or 100% of earned income, whichever is
less. If you have an unemployed spouse, the maximum contribution could increase
to $4,000. Please refer to the Phoenix EASY IRA KIT for clarification.
WHAT ARE THE TAX ADVANTAGES OF ESTABLISHING AN IRA?
Individuals who meet the deductibility requirements may deduct their yearly
IRA contributions from their taxable income, and thus, pay less tax.
Additionally, the account's earnings still accumulate tax-free until you
withdraw your money at retirement.
WHO CAN ANSWER MY QUESTIONS?
Most questions can be answered by our Customer Service Department. We are
equipped with computer terminals which allow quick and easy access to
information on your account. In most cases, your questions can be answered by
calling us toll-free at 800-243-1574.
52
<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
Michael K. Arends, Vice President
Curtiss O. Barrows, Vice President
John M. Hamlin, Vice President
Van Harissis, Vice President
William C. Keen, III, Vice President
Christopher J. Kelleher, Vice President
William R. Moyer, Vice President
C. Edwin Riley, Jr., Vice President
Amy L. Robinson, Vice President
Leonard J. Saltiel, Vice President
Dorothy J. Skaret, Vice President
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
This report is not authorized for distribution to prospective investors in the
Phoenix Series Fund unless preceded or accompanied by an effective Prospectus
which includes information concerning the sales charge, Fund's record and other
pertinent information.
<PAGE>
Phoenix Series Fund
PO Box 2200
Enfield CT 06083-2200
BULK RATE MAIL
U.S. POSTAGE
PAID
SPRINGFIELD, MA
PERMIT NO. 444
[PHOENIX DUFF & PHELPS LOGO]
PDP 395 (6/97)
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 011
<NAME> PHOENIX BALANCED FUND SERIES CLASS A
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> APR-30-1997
<INVESTMENTS-AT-COST> 1705516
<INVESTMENTS-AT-VALUE> 1743133
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<ASSETS-OTHER> 25359
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<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 92661
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<SHARES-COMMON-STOCK> 102748
<SHARES-COMMON-PRIOR> 108038
<ACCUMULATED-NII-CURRENT> 2901
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 159218
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 37617
<NET-ASSETS> 1706232
<DIVIDEND-INCOME> 5731
<INTEREST-INCOME> 27782
<OTHER-INCOME> 0
<EXPENSES-NET> (9273)
<NET-INVESTMENT-INCOME> 24240
<REALIZED-GAINS-CURRENT> 161169
<APPREC-INCREASE-CURRENT> (86732)
<NET-CHANGE-FROM-OPS> 98677
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (25881)
<DISTRIBUTIONS-OF-GAINS> (194005)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2506
<NUMBER-OF-SHARES-REDEEMED> (20415)
<SHARES-REINVESTED> 12619
<NET-CHANGE-IN-ASSETS> (218331)
<ACCUMULATED-NII-PRIOR> 4826
<ACCUMULATED-GAINS-PRIOR> 194853
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 11281
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 22064
<AVERAGE-NET-ASSETS> 1828090
<PER-SHARE-NAV-BEGIN> 17.56
<PER-SHARE-NII> 0.23
<PER-SHARE-GAIN-APPREC> 0.67
<PER-SHARE-DIVIDEND> (0.25)
<PER-SHARE-DISTRIBUTIONS> (1.87)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 16.34
<EXPENSE-RATIO> 1.01
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 012
<NAME> PHOENIX BALANCED FUND SERIES CLASS B
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> APR-30-1997
<INVESTMENTS-AT-COST> 1705516
<INVESTMENTS-AT-VALUE> 1743133
<RECEIVABLES> 30401
<ASSETS-OTHER> 25359
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1798893
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<NAME> PHOENIX CONVERTIBLE SERIES CLASS A
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<NAME> PHOENIX CONVERTIBLE SERIES CLASS B
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<NAME> PHOENIX GROWTH FUND SERIES CLASS A
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<NAME> PHOENIX GROWTH FUND SERIES CLASS B
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<NAME> PHOENIX AGGRESSIVE GROWTH FUND SERIES CLASS A
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<NAME> PHOENIX AGGRESSIVE GROWTH FUND SERIES CLASS B
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<NAME> PHOENIX HIGH YIELD FUND SERIES CLASS A
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<NAME> PHOENIX HIGH YIELD FUND SERIES CLASS B
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<NAME> PHOENIX U.S. GOVERNMENT FUND SERIES CLASS A
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