<PAGE>
Phoenix Investment Partners
APRIL 30, 1999
SEMIANNUAL REPORT
Engemann Phoenix-Engemann
Aggressive Growth
Fund
Goodwin -SM- Phoenix-Goodwin
Balanced Fund
Phoenix-Goodwin
Growth Fund
Phoenix-Goodwin
High Yield Fund
Phoenix-Goodwin
U.S. Government
Securities Fund
Phoenix-Goodwin
Money Market Fund
[LOGO] PHOENIX
INVESTMENT PARTNERS
<PAGE>
MESSAGE FROM THE PRESIDENT
DEAR SHAREHOLDER:
[PHOTO]
PHILIP MCLOUGHLIN
We are pleased to provide this semiannual financial summary for the Phoenix
Series Funds for the six months ended April 30, 1999.
If you have any questions, please contact your financial advisor or call us at
1-800-243-1574 (option 0), between 8:00 a.m. and 6:00 p.m. Eastern Time, Monday
through Friday.
Sincerely,
/s/ Philip R. McLoughlin
Philip R. McLoughlin
Mutual funds are not insured by the FDIC; are not
deposits or other obligations of a bank and are not
guaranteed by a bank; and are subject to
investment risks, including possible loss of the
principal invested.
1
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Phoenix-Engemann Aggressive Growth Fund................................... 3
Phoenix-Goodwin Balanced Fund............................................. 9
Phoenix-Goodwin Growth Fund............................................... 19
Phoenix-Goodwin High Yield Fund........................................... 24
Phoenix-Goodwin Money Market Fund......................................... 33
Phoenix-Goodwin U.S. Government Securities Fund........................... 38
Notes to Financial Statements............................................. 43
</TABLE>
2
<PAGE>
PHOENIX-ENGEMANN AGGRESSIVE GROWTH FUND
INVESTMENTS AT APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
COMMON STOCKS--89.0%
BANKS (MONEY CENTER)--1.0%
Morgan (J.P.) & Co., Inc...... 25,000 $ 3,368,750
BANKS (REGIONAL)--1.3%
First Tennessee National
Corp.......................... 40,000 1,725,000
Marshall & Ilsley Corp........ 40,000 2,800,000
------------
4,525,000
------------
BIOTECHNOLOGY--0.6%
Biogen, Inc.(b)............... 20,000 1,901,250
BROADCASTING (TELEVISION, RADIO & CABLE)--6.7%
Clear Channel Communications,
Inc.(b)....................... 190,000 13,205,000
Infinity Broadcasting Corp.
Class A(b).................... 125,000 3,460,937
Univision Communications, Inc.
Class A(b).................... 105,000 6,076,875
------------
22,742,812
------------
COMMUNICATIONS EQUIPMENT--5.6%
Ciena Corp.(b)................ 155,000 3,642,500
Com21, Inc.(b)................ 62,000 1,929,750
Tellabs, Inc.(b).............. 100,000 10,956,250
Terayon Communication Systems,
Inc.(b)....................... 65,000 2,624,375
------------
19,152,875
------------
COMPUTERS (NETWORKING)--2.5%
Ascend Communications,
Inc.(b)....................... 85,000 8,213,125
Extreme Networks, Inc.(b)..... 4,000 221,750
------------
8,434,875
------------
COMPUTERS (PERIPHERALS)--1.8%
EMC Corp.(b).................. 35,000 3,812,812
Network Appliance, Inc. (b)... 45,000 2,264,062
------------
6,076,874
------------
COMPUTERS (SOFTWARE & SERVICES)--16.1%
America Online, Inc.(b)....... 130,000 18,557,500
At Home Corp. Series A(b)..... 40,000 5,757,500
BMC Software, Inc.(b)......... 175,000 7,535,937
Citrix Systems, Inc.(b)....... 80,000 3,402,500
Compuware Corp.(b)............ 130,000 3,168,750
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--CONTINUED
Launch Media, Inc.(b)......... 9,400 $ 237,350
Legato Systems, Inc.(b)....... 50,000 2,021,875
Marimba, Inc.(b).............. 4,700 285,525
Mastech Corp.(b).............. 150,000 2,203,125
New Era of Networks,
Inc.(b)....................... 100,000 3,756,250
Proxicom, Inc.(b)............. 18,800 421,825
Sapient Corp.(b).............. 90,000 5,647,500
VERITAS Software Corp.(b)..... 25,000 1,775,000
------------
54,770,637
------------
CONSUMER FINANCE--1.4%
Countrywide Credit Industries,
Inc........................... 103,000 4,667,187
DISTRIBUTORS (FOOD & HEALTH)--0.7%
Cardinal Health, Inc.......... 37,500 2,242,969
ELECTRICAL EQUIPMENT--3.2%
Jabil Circuit, Inc.(b)........ 120,000 5,587,500
Sanmina Corp.(b).............. 80,000 5,310,000
------------
10,897,500
------------
ELECTRONICS (SEMICONDUCTORS)--7.0%
Micrel, Inc.(b)............... 60,000 3,532,500
Texas Instruments, Inc........ 35,000 3,574,375
Uniphase Corp.(b)............. 50,000 6,068,750
Vitesse Semiconductor
Corp.(b)...................... 70,000 3,241,875
Xilinx, Inc.(b)............... 160,000 7,300,000
------------
23,717,500
------------
EQUIPMENT (SEMICONDUCTOR)--1.9%
Applied Materials, Inc.(b).... 60,000 3,217,500
Teradyne, Inc.(b)............. 70,000 3,303,125
------------
6,520,625
------------
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--1.3%
Mirage Resorts, Inc.(b)....... 190,000 4,263,125
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.5%
Forest Laboratories, Inc.
Class A(b).................... 35,000 1,557,500
HEALTH CARE (GENERIC AND OTHER)--0.8%
Mylan Laboratories, Inc....... 125,000 2,835,937
</TABLE>
See Notes to Financial Statements 3
<PAGE>
PHOENIX-ENGEMANN AGGRESSIVE GROWTH FUND
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.8%
Guidant Corp.(b).............. 50,000 $ 2,684,375
INVESTMENT BANKING/BROKERAGE--3.2%
Donaldson, Lufkin & Jenrette,
Inc........................... 65,000 4,545,938
Lehman Brothers Holdings,
Inc........................... 55,000 3,055,938
Paine Webber Group, Inc....... 70,000 3,285,625
------------
10,887,501
------------
INVESTMENT MANAGEMENT--0.9%
Price (T. Rowe) Associates,
Inc........................... 80,000 3,015,000
MANUFACTURING (DIVERSIFIED)--4.5%
AlliedSignal, Inc............. 85,000 4,993,750
Tyco International Ltd........ 65,000 5,281,250
United Technologies Corp...... 35,000 5,070,625
------------
15,345,625
------------
OIL & GAS (DRILLING & EQUIPMENT)--1.4%
Baker Hughes, Inc............. 115,000 3,435,625
Transocean Offshore, Inc...... 50,000 1,484,375
------------
4,920,000
------------
OIL & GAS (REFINING & MARKETING)--0.3%
Sunoco, Inc................... 30,000 1,072,500
RAILROADS--1.4%
Kansas City Southern
Industries, Inc............... 80,000 4,765,000
RETAIL (BUILDING SUPPLIES)--0.5%
Lowe's Companies, Inc......... 32,000 1,688,000
RETAIL (DISCOUNTERS)--1.3%
Consolidated Stores
Corp.(b)...................... 125,000 4,296,875
RETAIL (GENERAL MERCHANDISE)--0.7%
Kmart Corp.(b)................ 150,000 2,231,250
RETAIL (SPECIALTY)--1.8%
Bed, Bath & Beyond, Inc.(b)... 130,000 4,639,375
Staples, Inc.(b).............. 52,500 1,575,000
------------
6,214,375
------------
SAVINGS & LOAN COMPANIES--2.1%
Charter One Financial, Inc.... 90,000 2,812,500
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
SAVINGS & LOAN COMPANIES--CONTINUED
Golden State Bancorp,
Inc.(b)....................... 180,000 $ 4,421,250
------------
7,233,750
------------
SERVICES (ADVERTISING/MARKETING)--1.0%
Interpublic Group of
Companies, Inc. (The)......... 45,000 3,490,313
SERVICES (COMMERCIAL & CONSUMER)--5.6%
Cendant Corp.(b).............. 925,000 16,650,000
Corporate Executive Board Co.
(The)(b)...................... 80,000 2,250,000
------------
18,900,000
------------
SERVICES (COMPUTER SYSTEMS)--0.8%
Whittman-Hart, Inc.(b)........ 100,000 2,825,000
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--1.1%
Sprint Corp................... 85,000 3,601,875
TELECOMMUNICATIONS (LONG DISTANCE)--8.6%
Global Crossing Holdings
Ltd.(b)....................... 60,000 3,240,000
MCI WorldCom, Inc.(b)......... 100,000 8,218,750
McLeodUSA, Inc. Class A(b).... 20,000 1,121,250
Qwest Communications
International, Inc.(b)........ 145,000 12,388,438
WinStar Communications,
Inc.(b)....................... 85,000 4,133,125
------------
29,101,563
------------
TELEPHONE--0.6%
Frontier Corp................. 35,000 1,931,563
- -------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $202,090,678) 301,879,981
- -------------------------------------------------------------------
UNIT INVESTMENT TRUSTS--2.2%
AMEX Basic Industries Select
Sector Depository Receipts.... 270,000 7,323,750
- -------------------------------------------------------------------
TOTAL UNIT INVESTMENT TRUSTS
(IDENTIFIED COST $6,937,245) 7,323,750
- -------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--91.2%
(IDENTIFIED COST $209,027,923) 309,203,731
- -------------------------------------------------------------------
</TABLE>
4 See Notes to Financial Statements
<PAGE>
PHOENIX-ENGEMANN AGGRESSIVE GROWTH FUND
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- --------- ------------
SHORT-TERM OBLIGATIONS--8.1%
<S> <C> <C> <C>
COMMERCIAL PAPER--8.1%
Corporate Asset Funding Corp.
4.92%, 5/3/99................. A-1+ $ 760 $ 759,793
Enterprise Funding Corp.
4.95%, 5/3/99................. A-1+ 650 649,821
Pitney Bowes Credit Corp.
5.05%, 5/3/99................. A-1+ 3,115 3,114,126
Merrill Lynch & Co., Inc.
4.85%, 5/4/99................. A-1+ 5,000 4,997,979
Receivables Capital Corp.
4.80%, 5/4/99................. A-1+ 10,312 10,307,875
Ford Motor Credit Co. 4.82%,
5/6/99........................ A-1+ 6,985 6,980,324
Lexington Parker Capital Co.
LLC 4.82%, 5/20/99............ A-1 800 797,965
------------
27,607,883
------------
- --------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $27,607,883) 27,607,883
- --------------------------------------------------------------------
</TABLE>
TOTAL INVESTMENTS--99.3%
(IDENTIFIED COST $236,635,806) 336,811,614(a)
Cash and receivables, less liabilities--0.7% 2,319,738
------------
NET ASSETS--100.0% $339,131,352
------------
------------
(a) Federal Income Tax Information: Net unrealized appreciation securities is
comprised of gross appreciation of $106,745,361 and gross depreciation of
$6,569,553 for federal income tax purposes. At April 30, 1999, the
aggregate cost of securities for federal income tax purposes was
$236,635,806.
(b) Non-income producing.
See Notes to Financial Statements
5
<PAGE>
PHOENIX-ENGEMANN AGGRESSIVE GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $236,635,806) $ 336,811,614
Short-term investments held as collateral for loaned
securities 15,329,804
Cash 4,411
Receivables
Investment securities sold 7,084,154
Fund shares sold 4,451,920
Dividends 4,725
Prepaid expenses 6,400
--------------
Total assets 363,693,028
--------------
LIABILITIES
Payables
Collateral on securities loaned 15,329,804
Investment securities purchased 8,443,030
Fund shares repurchased 313,356
Investment advisory fee 197,230
Distribution fee 83,086
Transfer agent fee 76,530
Financial agent fee 14,869
Trustees' fee 7,586
Accrued expenses 96,185
--------------
Total liabilities 24,561,676
--------------
NET ASSETS $ 339,131,352
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 207,110,611
Undistributed net investment loss (790,826)
Accumulated net realized gain 32,635,759
Net unrealized appreciation 100,175,808
--------------
NET ASSETS $ 339,131,352
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $318,250,985) 15,529,794
Net asset value per share $20.49
Offering price per share $20.49/(1-4.75%) $21.51
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $20,880,367) 1,064,774
Net asset value and offering price per share $19.61
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 602,170
Dividends 394,835
Security lending 93,020
--------------
Total investment income 1,090,025
--------------
EXPENSES
Investment advisory fee 1,058,038
Distribution fee, Class A 355,511
Distribution fee, Class B 89,440
Financial agent fee 110,184
Transfer agent 165,222
Printing 50,411
Custodian 18,687
Professional 16,295
Registration 15,333
Trustees 7,554
Miscellaneous 4,521
--------------
Total expenses 1,891,196
Custodian fees paid indirectly (10,345)
--------------
Net expenses 1,880,851
--------------
NET INVESTMENT LOSS (790,826)
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 39,159,938
Net change in unrealized appreciation (depreciation) on
investments 75,911,604
--------------
NET GAIN ON INVESTMENTS 115,071,542
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 114,280,716
--------------
--------------
</TABLE>
6 See Notes to Financial Statements
<PAGE>
PHOENIX-ENGEMANN AGGRESSIVE GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
10/31/98 Year Ended
(Unaudited) 10/31/98
------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (790,826) $ (572,877)
Net realized gain (loss) 39,159,938 (6,139,764)
Net change in unrealized appreciation
(depreciation) 75,911,604 9,270,385
------------- -------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 114,280,716 2,557,744
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A -- (48,960,572)
Net realized gains, Class B -- (2,784,524)
In excess of net realized gains, Class
A -- (369,101)
In excess of net realized gains, Class
B -- (20,991)
------------- -------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS -- (52,135,188)
------------- -------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(2,711,776 and 2,468,365 shares,
respectively) 52,468,490 36,742,199
Net asset value of shares issued from
reinvestment of distributions
(0 and 3,397,433 shares,
respectively) -- 45,837,639
Cost of shares repurchased (3,374,871
and 3,976,755 shares, respectively) (64,021,516) (59,756,494)
------------- -------------
Total (11,553,026) 22,823,344
------------- -------------
CLASS B
Proceeds from sales of shares (228,412
and 561,461 shares, respectively) 4,262,571 8,094,162
Net asset value of shares issued from
reinvestment of distributions
(0 and 194,011 shares, respectively) -- 2,530,269
Cost of shares repurchased (237,940
and 493,541 shares, respectively) (4,165,419) (7,177,346)
------------- -------------
Total 97,152 3,447,085
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (11,455,874) 26,270,429
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS 102,824,842 (23,307,015)
NET ASSETS
Beginning of period 236,306,510 259,613,525
------------- -------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($790,826) AND $0, RESPECTIVELY] $ 339,131,352 $ 236,306,510
------------- -------------
------------- -------------
</TABLE>
See Notes to Financial Statements 7
<PAGE>
PHOENIX-ENGEMANN AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31
4/30/99 --------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $13.72 $ 17.20 $ 16.84 $ 16.51 $ 13.33 $ 14.56
INCOME FROM INVESTMENT
OPERATIONS(5)
Net investment income (loss) (0.04)(4) (0.03) (0.08)(4) (0.13)(4) 0.06(4) 0.27
Net realized and unrealized gain
(loss) 6.81 0.04 2.95 2.64 4.21 (0.21)
---------- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 6.77 0.01 2.87 2.51 4.27 0.06
---------- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income -- -- -- (0.02) (0.19) (0.22)
Dividends from net realized
gains -- (3.46) (2.51) (2.16) (0.90) (1.07)
In excess of net realized gains -- (0.03) -- -- -- --
---------- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS -- (3.49) (2.51) (2.18) (1.09) (1.29)
---------- ----- ----- ----- ----- -----
Change in net asset value 6.77 (3.48) 0.36 0.33 3.18 (1.23)
---------- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $20.49 $ 13.72 $ 17.20 $ 16.84 $ 16.51 $ 13.33
---------- ----- ----- ----- ----- -----
---------- ----- ----- ----- ----- -----
Total return(1) 49.34%(3) 0.38% 19.67% 17.43% 35.14% 0.37%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $318,251 $222,149 $246,002 $233,488 $180,288 $140,137
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.20%(2)(6) 1.21% 1.20% 1.20% 1.29% 1.26%
Net investment income (loss) (0.48)%(2) (0.18)% (0.53)% (0.81)% 0.43% 1.97%
Portfolio turnover 82%(3) 176% 518% 401% 331% 306%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED OCTOBER 31 INCEPTION
4/30/99 ---------------------------------------------------- 7/21/94 TO
(UNAUDITED) 1998 1997 1996 1995 10/31/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $13.18 $ 16.76 $ 16.57 $ 16.38 $ 13.31 $ 13.09
INCOME FROM INVESTMENT
OPERATIONS(5)
Net investment income (loss) (0.11)(4) (0.12) (0.20)(4) (0.25)(4) (0.12)(4) 0.02
Net realized and unrealized gain
(loss) 6.54 0.03 2.90 2.60 4.26 0.20
---------- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 6.43 (0.09) 2.70 2.35 4.14 0.22
---------- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income -- -- -- -- (0.17) --
Dividends from net realized
gains -- (3.46) (2.51) (2.16) (0.90) --
In excess of net realized gains -- (0.03) -- -- -- --
---------- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS -- (3.49) (2.51) (2.16) (1.07) --
---------- ----- ----- ----- ----- -----
Change in net asset value 6.43 (3.58) 0.19 0.19 3.07 0.22
---------- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $19.61 $ 13.18 $ 16.76 $ 16.57 $ 16.38 $ 13.31
---------- ----- ----- ----- ----- -----
---------- ----- ----- ----- ----- -----
Total return(1) 48.79%(3) (0.28)% 18.70% 16.52% 34.15% 1.68%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $20,880 $14,157 $13,611 $10,466 $2,393 $330
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.95%(2)(6) 1.96% 1.96% 1.95% 2.04% 1.81%(2)
Net investment income (loss) (1.22)%(2) (0.93)% (1.28)% (1.57)% (0.83)% 1.45%(2)
Portfolio turnover 82%(3) 176% 518% 401% 331% 306%(3)
</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 the six months ended April 30, 1999, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratios would be 1.21% and 1.96%
for Class A and Class B, respectively.
8 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN BALANCED FUND
INVESTMENTS AT APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- --------- ------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--6.2%
U.S. TREASURY BONDS--0.5%
U.S. Treasury Bonds 5.25%,
11/15/28...................... AAA $ 9,000 $ 8,322,235
U.S. TREASURY NOTES--5.7%
U.S. Treasury Notes 4.50%,
9/30/00....................... AAA 64,650 64,169,249
U.S. Treasury Notes 5.25%,
8/15/03....................... AAA 21,836 21,820,429
U.S. Treasury Notes 4.25%,
11/15/03...................... AAA 10,250 9,838,597
------------
95,828,275
------------
- ----------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $106,736,776) 104,150,510
- ----------------------------------------------------------------------
AGENCY MORTGAGE-BACKED SECURITIES--3.9%
GNMA 6.50%, '23-'28........... AAA 64,527 64,532,090
- ----------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $62,873,326) 64,532,090
- ----------------------------------------------------------------------
MUNICIPAL BONDS--7.5%
CALIFORNIA--2.5%
Fresno County Pension
Obligation Taxable 6.21%,
8/15/06....................... AAA 3,645 3,622,219
Kern County Pension Obligation
Revenue Taxable 7.26%,
8/15/14....................... AAA 6,830 7,239,800
Long Beach Pension Obligation
Taxable 6.87%, 9/1/06......... AAA 2,865 2,958,112
Los Angeles County Public
Works Lease Revenue PJ V-B
5.125%, 12/1/29............... AAA 5,340 5,319,975
Orange County Pension
Obligation Revenue Taxable
Series A 7.62%, 9/1/08........ AAA 9,085 9,879,937
San Bernardino County Pension
Obligation Revenue Taxable
6.87%, 8/1/08................. AAA 1,530 1,583,550
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- --------- ------------
<S> <C> <C> <C>
CALIFORNIA--CONTINUED
San Bernardino County Pension
Obligation Revenue Taxable
6.94%, 8/1/09................. AAA $ 4,170 $ 4,336,800
Sonoma County Pension
Obligation Revenue Taxable
6.625%, 6/1/13................ AAA 3,665 3,678,744
Ventura County Pension Taxable
6.58%, 11/1/06................ AAA 3,560 3,617,850
------------
42,236,987
------------
FLORIDA--1.0%
Miami Beach Special Obligation
Revenue Taxable 8.60%,
9/1/21........................ AAA 11,675 12,973,844
Tampa Solid Waste System
Revenue Taxable Series A
6.23%, 10/1/05................ Aaa(d) 1,970 1,972,462
University of Miami
Exchangeable Revenue Taxable
Series A 7.65%, 4/1/20........ AAA 2,120 2,212,750
------------
17,159,056
------------
MASSACHUSETTS--0.4%
Massachusetts State Port
Authority Revenue Taxable
Series C 6.05%, 7/1/02........ AA- 3,340 3,360,875
Massachusetts State Water
Resources Authority Revenue
Series D 5%, 8/1/24........... AAA 2,750 2,660,625
------------
6,021,500
------------
NEW YORK--1.1%
Long Island Power Authority
Electrical Systems Revenue
Series A 5.50%, 12/1/10....... AAA 3,850 4,191,687
Metropolitan Transportation
Authority Series A 5%,
4/1/23........................ AAA 4,575 4,489,219
New York State Taxable Series
C 6.35%, 3/1/07............... AAA 9,290 9,290,000
------------
17,970,906
------------
</TABLE>
See Notes to Financial Statements 9
<PAGE>
PHOENIX-GOODWIN BALANCED FUND
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- --------- ------------
<S> <C> <C> <C>
PENNSYLVANIA--1.0%
Philadelphia Authority For
Industrial Development Pension
Funding Retirement Systems
Revenue Taxable Series A
5.79%, 4/15/09................ AAA $ 8,500 $ 8,117,500
Pittsburgh Pension Obligation
Taxable Series C 6.50%,
3/1/17........................ AAA 9,245 9,013,875
------------
17,131,375
------------
TEXAS--1.3%
Dallas Civic Center Revenue
5.25%, 8/15/08................ AAA 2,340 2,492,100
Dallas-Fort Worth
International Airport Revenue
Taxable 6.50%, 11/1/09........ AAA 1,900 1,914,250
Dallas-Fort Worth
International Airport Revenue
Taxable 6.60%, 11/1/12........ AAA 5,750 5,778,750
Houston Water & Sewer System
Revenue Refunding, Jr. Lien,
Series D 5%, 12/1/25.......... AAA 4,975 4,813,313
Texas State General Obligation
Series B 5.25%, 10/1/08....... AA 1,715 1,837,194
Texas State Taxable Veterans
Limited Series B 6.10%,
12/1/03....................... AA 3,995 4,014,975
------------
20,850,582
------------
VIRGINIA--0.2%
Newport News General
Obligation Taxable Series B
7.05%, 1/15/25................ AA 3,250 3,233,750
- ----------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $123,380,509) 124,604,156
- ----------------------------------------------------------------------
ASSET-BACKED SECURITIES--3.6%
AESOP Funding II LLC 97-1, A2
144A 6.40%, 10/20/03(c)....... Aaa(d) 9,250 9,418,973
Associates Manufactured
Housing Pass Through 97-2, A6
7.075%, 3/15/28............... AAA 3,000 3,029,531
Capita Equipment Receivables
Trust 97-1, B 6.45%,
8/15/02....................... A+ 5,020 5,033,454
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- --------- ------------
<S> <C> <C> <C>
Case Equipment Loan Trust
98-A, A4, 5.83%, 2/15/05...... AAA $ 11,600 $ 11,534,692
Copelco Capital Funding Corp.
99-A, A4 5.80%, 4/15/03....... Aaa(d) 5,000 5,002,344
Fleetwood Credit Corp. Grantor
Trust 96-B, A 6.90%,
3/15/12....................... AAA 1,919 1,933,404
Green Tree Financial Corp.
96-2, M1 7.60%, 4/15/27....... AA- 9,250 9,614,687
Premier Auto Trust 98-3, B
6.14%, 9/8/04................. A+ 4,000 4,050,273
Triangle Funding Ltd. 98-2A, 3
144A 6.85%, 10/15/04(c)(e).... BBB 8,000 7,965,000
Wachovia Credit Card Master
Trust 99-1, A 5.081%,
8/15/06....................... AAA 3,000 2,999,063
- ----------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $60,100,708) 60,581,421
- ----------------------------------------------------------------------
CORPORATE BONDS--5.0%
AUTO PARTS & EQUIPMENT--0.3%
Federal-Mogul Corp. 7.50%,
144A 01/15/09(c).............. BB+ 5,725 5,610,500
BANKS (MAJOR REGIONAL)--0.3%
U.S. Bank of Minnesota N.A.
6.30%, 7/15/08................ A 3,000 2,970,000
Wachovia Corp. 5.625%,
12/15/08...................... A+ 3,000 2,838,750
------------
5,808,750
------------
BROADCASTING (TELEVISION, RADIO & CABLE)--0.3%
CSC Holdings, Inc. 7.25%,
7/15/08....................... BB+ 4,565 4,633,475
COMPUTERS (SOFTWARE & SERVICES)--0.2%
Computer Associates
International, Inc. Series B
6.375%, 4/15/05............... A- 3,270 3,175,988
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--0.5%
Harrahs Operating Co., Inc.
7.875%, 12/15/05.............. BB+ 4,695 4,753,688
</TABLE>
10 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN BALANCED FUND
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- --------- ------------
<S> <C> <C> <C>
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--CONTINUED
Station Casinos, Inc. 10.125%,
3/15/06....................... B+ $ 3,000 $ 3,202,500
------------
7,956,188
------------
HEALTH CARE (HOSPITAL MANAGEMENT)--0.3%
Tenet Healthcare Corp. 8%,
1/15/05....................... BB+ 5,225 5,198,875
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--0.3%
Boston Scientific Corp.
6.625%, 3/15/05............... BBB 4,525 4,417,531
INSURANCE (MULTI-LINE)--0.1%
Willis Corroon Corp. 144A 9%,
2/1/09(c)..................... B+ 1,840 1,872,200
LEISURE TIME (PRODUCTS)--0.2%
Bally Total Fitness Holding
Corp. 144A 9.875%,
10/15/07(c)................... B- 2,900 2,976,125
MANUFACTURING (DIVERSIFIED)--0.4%
Tyco International Group SA
6.375%, 6/15/05............... A- 6,700 6,741,875
PAPER & FOREST PRODUCTS--0.2%
Buckeye Technologies, Inc.
9.25%, 9/15/08................ BB- 3,765 3,995,606
PERSONAL CARE--0.1%
Revlon Consumer Products Corp.
9%, 11/1/06................... B 2,500 2,556,250
PUBLISHING--0.1%
Charter Communications
Holdings LLC 144A 8.625%,
4/1/09(c)..................... B+ 2,000 2,055,000
RETAIL (FOOD CHAINS)--0.1%
Meyer (Fred), Inc. 7.45%,
3/1/08........................ BB+ 1,625 1,706,250
SERVICES (COMMERCIAL & CONSUMER)--0.2%
United Rentals, Inc. Series B
9.50%, 6/1/08................. BB- 1,295 1,327,375
United Rentals, Inc. 8.80%,
8/15/08....................... BB- 1,570 1,550,375
------------
2,877,750
------------
SERVICES (RENTALS)--0.2%
Budget Group, Inc. 144A
9.125%, 4/1/06(c)............. BB- 2,750 2,743,125
TELECOMMUNICATIONS (LONG DISTANCE)--0.4%
Nextlink Communications, Inc.
144A 10.75%, 11/15/08(c)...... B 2,000 2,155,000
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- --------- ------------
<S> <C> <C> <C>
TELECOMMUNICATIONS (LONG DISTANCE)--CONTINUED
Qwest Communications
International, Inc. 144A
7.50%, 11/1/08(c)............. BB+ $ 4,660 $ 4,893,000
------------
7,048,000
------------
TELEPHONE--0.2%
Century Telephone Enterprises,
Inc. Series F 6.30%,
1/15/08....................... BBB+ 3,000 2,962,500
TEXTILES (HOME FURNISHINGS)--0.3%
WestPoint Stevens, Inc.
7.875%, 6/15/05............... BB 4,725 4,866,750
TRUCKERS--0.2%
Teekay Shipping Corp. 8.32%,
2/1/08........................ BB+ 2,640 2,620,200
TRUCKS & PARTS--0.1%
Cummins Engine Co., Inc.
6.45%, 3/1/05................. BBB+ 2,060 2,011,075
- ----------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $82,823,764) 83,834,013
- ----------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED
SECURITIES--8.0%
CS First Boston Mortgage
Securities Corp. 97-C2, A3
6.55%, 11/17/07............... AAA 9,800 9,812,250
CS First Boston Mortgage
Securities Corp. 97-C2, B
6.72%, 11/17/07............... Aa(d) 9,000 9,016,875
CS First Boston Mortgage
Securities Corp. 97-SPCE, D
144A 7.332%, 4/20/08(c)....... BBB 4,039 3,948,122
CS First Boston Mortgage
Securities Corp. 98-C1, A1B
6.48%, 5/17/08................ AAA 10,000 9,948,438
CS First Boston Mortgage
Securities Corp. 95-AEW1, B
7.182%, 11/25/27.............. AA- 4,552 4,547,842
DLJ Mortgage Acceptance Corp.
96-CF1, A1B 144A 7.58%,
2/12/06(c).................... AAA 6,550 6,809,953
First Union-Lehman Brothers
Commercial Mortgage 97-C1, B
7.43%, 4/18/07................ Aa(d) 11,807 12,435,491
G.E. Capital Mortgage
Services, Inc. 96-8, 1M 7.25%,
5/25/26....................... AA 5,282 5,380,995
</TABLE>
See Notes to Financial Statements 11
<PAGE>
PHOENIX-GOODWIN BALANCED FUND
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- --------- ------------
<S> <C> <C> <C>
GMAC Commercial Mortgage
Securities, Inc. 97-C2, B,
6.703%, 12/15/07.............. Aa(d) $ 5,000 $ 4,985,050
Lehman Brothers Commercial
Conduit Mortgage Trust 98-C4,
A1B 6.21%, 10/15/08........... AAA(d) 10,545 10,429,608
Lehman Large Loan 97-LLI, B
6.95%, 3/12/07................ AA 10,825 11,118,611
Nationslink Funding Corp.
96-1, B 7.69%, 12/20/05....... AA 6,157 6,482,147
Prudential Home Mortgage
Securities 93-L, 2B3 144A
6.641%, 12/25/23(c)........... A(d) 5,000 4,937,500
Residential Asset
Securitization Trust 96-A8, A1
8%, 12/25/26.................. AAA 156 156,120
Residential Funding Mortgage
Securities I 96-S8, A4 6.75%,
3/25/11....................... AAA 1,950 1,958,709
Residential Funding Mortgage
Securities I 96-S1, A11 7.10%,
1/25/26....................... AAA 6,600 6,703,125
Residential Funding Mortgage
Securities I 96-S4, M1 7.25%,
2/25/26....................... AA 5,805 5,829,031
Securitized Asset Sales, Inc.
93-J, 2B 6.808%, 11/28/23..... AA(d) 9,980 9,875,777
Structured Asset Securities
Corp. 93-C1, B 6.60%,
10/25/24...................... A+ 4,550 4,530,802
Structured Asset Securities
Corp. 95-C4, B 7%, 6/25/26.... AA 5,000 5,010,596
- ----------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $132,680,109) 133,917,042
- ----------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--2.4%
COLOMBIA--0.6%
Republic of Colombia 144A
7.70%, 7/14/03(c)............. NR 9,140 8,317,400
Republic of Colombia 7.25%,
2/23/04....................... BBB- 1,750 1,592,500
------------
9,909,900
------------
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- --------- ------------
<S> <C> <C> <C>
CROATIA--0.5%
Croatia Series B 5.813%,
7/31/06(e).................... BBB- $ 4,625 $ 3,792,254
Croatia Series A 5.813%,
7/31/10(e).................... BBB- 5,805 4,542,413
------------
8,334,667
------------
POLAND--0.9%
Poland Bearer PDI 5%,
10/27/14(e)................... BBB- 15,430 14,301,681
URUGUAY--0.4%
Republic of Uruguay 7.25%,
5/4/09........................ BBB- 6,900 6,798,570
- ----------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $40,193,673) 39,344,818
- ----------------------------------------------------------------------
FOREIGN CORPORATE BONDS--1.9%
ARGENTINA--0.2%
Compania de
Radiocomunicaciones Moviles SA
144A 9.25%, 5/8/08(c)......... BBB- 2,200 2,123,000
Telefonica de Argentina 144A
9.125%, 5/7/08(c)............. BBB- 1,750 1,693,125
------------
3,816,125
------------
BAHAMAS--0.2%
Sun International Hotels Ltd.
8.625%, 12/15/07.............. B+ 3,000 3,120,000
CANADA--0.3%
Imax Corp. 7.875%, 12/1/05.... BB- 5,295 5,281,762
CHILE--0.2%
Compania Sud Americana de
Vapores 144A 7.375%,
12/8/03(c).................... BBB 2,000 1,900,000
Petropower I Funding Trust
144A 7.36%, 2/15/14(c)........ BBB 2,545 2,366,476
------------
4,266,476
------------
JAPAN--0.8%
IBJ Preferred Capital Co. LLC
144A 8.79%, 12/29/49(c)(e).... Baa(d) 6,800 6,071,387
SB Treasury Co. LLC Series A
144A 9.40%, 12/29/49(c)(e).... BB+ 6,800 6,820,883
------------
12,892,270
------------
POLAND--0.2%
TPSA Finance BV 144A 7.75%,
12/10/08(c)................... BBB- 3,095 3,125,950
- ----------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $33,369,586) 32,502,583
- ----------------------------------------------------------------------
</TABLE>
12 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN BALANCED FUND
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
PREFERRED STOCKS--0.6%
<S> <C> <C> <C>
REITS--0.6%
Home Ownership Funding 2,
Step-down Pfd. 144A
13.338%(c).................... 10,000 $ 9,151,940
- -------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $8,786,965) 9,151,940
- -------------------------------------------------------------------
COMMON STOCKS--57.6%
BANKS (MAJOR REGIONAL)--2.3%
Mellon Bank Corp.............. 108,300 8,048,044
Wells Fargo Co................ 702,400 30,334,900
------------
38,382,944
------------
BANKS (MONEY CENTER)--1.7%
Bank of America Corp.......... 392,340 28,248,480
BEVERAGES (NON-ALCOHOLIC)--1.6%
PepsiCo, Inc.................. 720,500 26,613,469
BIOTECHNOLOGY--0.4%
Genzyme Corp. (b)............. 166,600 6,289,150
BROADCASTING (TELEVISION, RADIO & CABLE)--3.5%
AT&T Corp.- Liberty Media
Group Class A(b).............. 493,900 31,547,862
CBS Corp.(b).................. 215,700 9,827,831
Chancellor Media Corp.(b)..... 180,500 9,904,937
Clear Channel Communications,
Inc.(b)....................... 99,800 6,936,100
------------
58,216,730
------------
COMMUNICATIONS EQUIPMENT--1.4%
General Motors Corp. Class
H............................. 99,000 5,482,125
Motorola, Inc................. 60,000 4,807,500
Tellabs, Inc.(b).............. 119,500 13,092,719
------------
23,382,344
------------
COMPUTERS (HARDWARE)--4.7%
Dell Computer Corp.(b)........ 377,700 15,556,519
International Business
Machines Corp................. 194,900 40,770,644
Sun Microsystems, Inc.(b)..... 373,000 22,310,062
------------
78,637,225
------------
COMPUTERS (NETWORKING)--1.9%
Cisco Systems, Inc.(b)........ 273,837 31,234,533
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
COMPUTERS (SOFTWARE & SERVICES)--4.2%
America Online, Inc.(b)....... 126,800 $ 18,100,700
Microsoft Corp.(b)............ 547,000 44,477,937
Novell, Inc.(b)............... 138,600 3,083,850
Yahoo!, Inc.(b)............... 30,400 5,310,500
------------
70,972,987
------------
CONSUMER FINANCE--1.2%
Capital One Financial Corp.... 115,500 20,060,906
DISTRIBUTORS (FOOD & HEALTH)--0.7%
Cardinal Health, Inc.......... 210,900 12,614,456
ELECTRICAL EQUIPMENT--1.7%
General Electric Co........... 277,300 29,255,150
ELECTRONICS (SEMICONDUCTORS)--1.9%
Intel Corp.................... 530,800 32,478,325
FINANCIAL (DIVERSIFIED)--3.9%
Citigroup, Inc................ 377,500 28,406,875
Freddie Mac................... 172,000 10,793,000
Morgan Stanley Dean Witter &
Co............................ 255,900 25,382,081
------------
64,581,956
------------
HEALTH CARE (DIVERSIFIED)--1.8%
American Home Products
Corp.......................... 158,400 9,662,400
Bristol-Myers Squibb Co....... 333,800 21,217,162
------------
30,879,562
------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--2.4%
Pfizer, Inc................... 187,400 21,562,712
Schering-Plough Corp.......... 369,300 17,841,806
------------
39,404,518
------------
HEALTH CARE (GENERIC AND OTHER)--0.3%
Mylan Laboratories, Inc....... 198,800 4,510,275
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--1.4%
Bard (C.R.), Inc.............. 100,000 4,900,000
Baxter International, Inc..... 210,500 13,261,500
Becton, Dickinson and Co...... 135,000 5,020,313
------------
23,181,813
------------
</TABLE>
See Notes to Financial Statements 13
<PAGE>
PHOENIX-GOODWIN BALANCED FUND
<TABLE>
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
HOUSEHOLD PRODUCTS (NON-DURABLES)--1.3%
Procter & Gamble Co. (The).... 225,700 $ 21,173,481
INSURANCE (LIFE/HEALTH)--0.3%
ReliaStar Financial Corp...... 120,600 4,432,050
INSURANCE (MULTI-LINE)--1.2%
American International Group,
Inc........................... 176,400 20,715,975
LODGING-HOTELS--0.6%
Carnival Corp................. 233,100 9,615,375
MANUFACTURING (DIVERSIFIED)--1.7%
Tyco International Ltd........ 351,300 28,543,125
OIL & GAS (DRILLING & EQUIPMENT)--0.8%
Halliburton Co................ 134,400 5,728,800
Schlumberger Ltd.............. 87,300 5,576,288
Transocean Offshore, Inc...... 100,000 2,968,750
------------
14,273,838
------------
OIL (INTERNATIONAL INTEGRATED)--0.7%
Conoco, Inc. Class A.......... 419,700 11,384,363
PERSONAL CARE--0.9%
Gillette Co. (The)............ 286,500 14,951,719
RETAIL (BUILDING SUPPLIES)--1.2%
Home Depot, Inc. (The)........ 327,000 19,599,563
RETAIL (COMPUTERS & ELECTRONICS)--0.4%
Tandy Corp.................... 100,900 7,308,944
RETAIL (DEPARTMENT STORES)--0.3%
Nordstrom, Inc................ 132,700 4,669,381
RETAIL (FOOD CHAINS)--1.7%
Meyer (Fred), Inc.(b)......... 380,890 20,615,671
Safeway, Inc.(b).............. 131,700 7,103,569
------------
27,719,240
------------
<CAPTION>
SHARES VALUE
--------- ------------
<S> <C> <C> <C>
RETAIL (GENERAL MERCHANDISE)--1.4%
Wal-Mart Stores, Inc.......... 518,000 $ 23,828,000
RETAIL (SPECIALTY)--0.8%
Staples, Inc.(b).............. 466,275 13,988,250
SERVICES (COMMERCIAL & CONSUMER)--0.3%
ServiceMaster Co. (The)....... 246,600 4,685,400
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--0.9%
AirTouch Communications,
Inc.(b)....................... 160,000 14,940,000
TELECOMMUNICATIONS (LONG DISTANCE)--3.6%
AT&T Corp..................... 798,034 40,300,717
MCI WorldCom, Inc.(b)......... 253,399 20,826,266
------------
61,126,983
------------
TELEPHONE--0.9%
SBC Communications, Inc....... 262,300 14,688,800
WASTE MANAGEMENT--1.6%
Waste Management, Inc......... 473,100 26,730,150
- -------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $718,652,297) 963,319,460
- -------------------------------------------------------------------
FOREIGN COMMON STOCKS--2.3%
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--0.6%
Elan Corp. PLC Sponsored ADR
(Ireland)(b).................. 189,800 9,774,700
OIL (INTERNATIONAL INTEGRATED)--1.7%
BP Amoco PLC Sponsored ADR
(United Kingdom).............. 258,893 29,303,451
- -------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS
(IDENTIFIED COST $33,717,741) 39,078,151
- -------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--99.0%
(IDENTIFIED COST $1,403,315,454) 1,655,016,184
- -------------------------------------------------------------------
</TABLE>
14 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN BALANCED FUND
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
--------- --------- ------------
SHORT-TERM OBLIGATIONS--0.8%
<S> <C> <C> <C>
COMMERCIAL PAPER--0.8%
Ciesco L.P. 4.93%, 5/3/99..... A-1+ $ 8,460 $ 8,457,683
General Electric Capital Corp.
4.75%, 5/6/99................. A-1+ 155 154,898
General Electric Capital Corp.
4.82%, 5/6/99................. A-1+ 2,630 2,628,239
Private Export Funding Corp.
4.80%, 6/16/99................ A-1+ 2,500 2,485,239
------------
13,726,059
------------
- ----------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $13,725,487) 13,726,059
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS--99.8%
(IDENTIFIED COST $1,417,040,941) 1,668,742,243(a)
Cash and receivables, less liabilities--0.2% 2,536,097
----------------
NET ASSETS--100.0% $ 1,671,278,340
----------------
----------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $272,777,373 and gross
depreciation of $22,591,748 for federal income tax purposes. At April 30,
1999, the aggregate cost of securities for federal income tax purpose was
$1,418,556,618.
(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,
1999, these securities amounted to a value of $96,954,659 or 5.8% of net
assets.
(d) As rated by Moody's, Fitch or Duff & Phelps.
(e) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
See Notes to Financial Statements
15
<PAGE>
PHOENIX-GOODWIN BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $1,417,040,941) $1,668,742,243
Cash 21,859
Receivables
Interest and dividends 8,292,399
Investment securities sold 5,088,680
Fund shares sold 258,782
Prepaid expenses 38,087
--------------
Total assets 1,682,442,050
--------------
LIABILITIES
Payables
Investments securities purchased 7,899,304
Fund shares repurchased 1,324,250
Investment advisory fee 742,645
Transfer agent fee 501,433
Distribution fee 374,493
Financial agent fee 30,359
Trustees' fee 3,846
Accrued expenses 287,380
--------------
Total liabilities 11,163,710
--------------
NET ASSETS $1,671,278,340
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $1,314,432,582
Undistributed net investment income 4,154,057
Accumulated net realized gain 100,990,399
Net unrealized appreciation 251,701,302
--------------
NET ASSETS $1,671,278,340
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $1,633,385,187) 92,885,372
Net asset value per share $17.58
Offering price per share $17.58/(1-4.75%) $18.46
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $37,893,153) 2,161,165
Net asset value and offering price per share $17.53
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 21,421,627
Dividends 3,944,868
Security lending 127,569
Foreign taxes withheld (17,346)
-------------
Total investment income 25,476,718
-------------
EXPENSES
Investment advisory fee 4,413,358
Distribution fee, Class A 2,037,787
Distribution fee, Class B 179,677
Financial agent fee 224,014
Transfer agent 1,146,692
Printing 53,407
Custodian 48,345
Professional 25,970
Trustees 7,174
Miscellaneous 18,757
-------------
Total expenses 8,155,181
-------------
NET INVESTMENT INCOME 17,321,537
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 103,453,339
Net change in unrealized appreciation (depreciation) on
investments 86,909,508
-------------
NET GAIN ON INVESTMENTS 190,362,847
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 207,684,384
-------------
-------------
</TABLE>
16 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN BALANCED FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
4/30/99 Year Ended
(Unaudited) 10/31/98
--------------- ---------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 17,321,537 $ 40,274,583
Net realized gain (loss) 103,453,339 66,036,415
Net change in unrealized appreciation
(depreciation) 86,909,508 40,037,609
--------------- ---------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 207,684,384 146,348,607
--------------- ---------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (19,577,885) (38,891,099)
Net investment income, Class B (308,575) (547,088)
Net realized gains, Class A (59,145,470) (250,194,981)
Net realized gains, Class B (1,279,772) (4,587,560)
--------------- ---------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (80,311,702) (294,220,728)
--------------- ---------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(2,029,999 and 4,154,476 shares,
respectively) 35,158,133 68,017,312
Net asset value of shares issued from
reinvestment of distributions
(4,331,556 and 17,381,042 shares,
respectively) 72,847,163 266,854,723
Cost of shares repurchased (8,511,115
and 20,727,390 shares, respectively) (147,796,390) (343,685,337)
--------------- ---------------
Total (39,791,094) (8,813,302)
--------------- ---------------
CLASS B
Proceeds from sales of shares (230,425
and 375,257 shares, respectively) 3,988,419 6,251,773
Net asset value of shares issued from
reinvestment of distributions
(87,430 and 309,117 shares,
respectively) 1,466,660 4,734,129
Cost of shares repurchased (186,325
and 329,841 shares, respectively) (3,221,366) (5,437,703)
--------------- ---------------
Total 2,233,713 5,548,199
--------------- ---------------
DECREASE IN NET ASSETS FROM SHARE
TRANSACTIONS (37,557,381) (3,265,103)
--------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS 89,815,301 (151,137,224)
NET ASSETS
Beginning of period 1,581,463,039 1,732,600,263
--------------- ---------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
$4,154,057 AND $6,718,980,
RESPECTIVELY] $ 1,671,278,340 $ 1,581,463,039
--------------- ---------------
--------------- ---------------
</TABLE>
See Notes to Financial Statements 17
<PAGE>
PHOENIX-GOODWIN BALANCED FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31
4/30/99 --------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.29 $ 18.07 $ 17.56 $ 17.04 $ 15.23 $ 16.64
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.18 0.42 0.48 0.48 0.52 0.48
Net realized and unrealized gain
(loss) 1.95 0.90 2.38 1.46 1.80 (1.01)
---------- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 2.13 1.32 2.86 1.94 2.32 (0.53)
---------- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income (0.21) (0.40) (0.48) (0.49) (0.51) (0.49)
Dividends from net realized gains (0.63) (2.70) (1.87) (0.93) -- (0.39)
---------- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.84) (3.10) (2.35) (1.42) (0.51) (0.88)
---------- ----- ----- ----- ----- -----
Change in net asset value 1.29 (1.78) 0.51 0.52 1.81 (1.41)
---------- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 17.58 $ 16.29 $ 18.07 $ 17.56 $ 17.04 $ 15.23
---------- ----- ----- ----- ----- -----
---------- ----- ----- ----- ----- -----
Total return(1) 13.34%(3) 8.68% 18.04% 12.03% 15.52% (3.28)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $1,633,385 $1,548,475 $1,702,385 $1,897,306 $2,345,440 $2,601,808
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.96%(2) 0.97% 0.98% 1.01% 1.02% 0.96%
Net investment income 2.10%(2) 2.41% 2.65% 2.74% 3.27% 3.03%
Portfolio turnover 44%(3) 138% 206% 191% 197% 159%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED OCTOBER 31 INCEPTION
4/30/99 ---------------------------------------------------- 7/15/94 TO
(UNAUDITED) 1998 1997 1996 1995 10/31/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.25 $ 18.04 $ 17.54 $ 17.01 $ 15.23 $ 15.27
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.12 0.30 0.35 0.35 0.40 0.09
Net realized and unrealized gain
(loss) 1.94 0.90 2.37 1.47 1.80 (0.04)
---------- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 2.06 1.20 2.72 1.82 2.20 0.05
---------- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income (0.15) (0.29) (0.35) (0.36) (0.42) (0.09)
Dividends from net realized gains (0.63) (2.70) (1.87) (0.93) -- --
---------- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.78) (2.99) (2.22) (1.29) (0.42) (0.09)
---------- ----- ----- ----- ----- -----
Change in net asset value 1.28 (1.79) 0.50 0.53 1.78 (0.04)
---------- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 17.53 $ 16.25 $ 18.04 $ 17.54 $ 17.01 $ 15.23
---------- ----- ----- ----- ----- -----
---------- ----- ----- ----- ----- -----
Total return(1) 12.92%(3) 7.91% 17.13% 11.24% 14.68% (0.34)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $37,893 $32,988 $30,216 $26,209 $16,971 $4,629
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.71%(2) 1.72% 1.73% 1.76% 1.78% 1.65%(2)
Net investment income 1.35%(2) 1.66% 1.90% 1.96% 2.46% 2.36%(2)
Portfolio turnover 44%(3) 138% 206% 191% 197% 159%(3)
</TABLE>
(1) Maximum sales load is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
18 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN GROWTH FUND
INVESTMENTS AT APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
----------- -------------
<S> <C> <C> <C>
COMMON STOCKS--93.3%
BANKS (MAJOR REGIONAL)--3.8%
Mellon Bank Corp........................ 306,500 $ 22,776,781
Wells Fargo Co.......................... 1,988,900 85,895,619
-------------
108,672,400
-------------
BROADCASTING (TELEVISION, RADIO & CABLE)--3.3%
AT&T Corp.- Liberty Media Group Class
A(b).................................... 739,200 47,216,400
CBS Corp.(b)............................ 608,500 27,724,781
Clear Channel Communications, Inc.(b)... 277,800 19,307,100
-------------
94,248,281
-------------
COMMUNICATIONS EQUIPMENT--3.3%
Lucent Technologies, Inc................ 980,000 58,922,500
Tellabs, Inc.(b)........................ 334,300 36,626,744
-------------
95,549,244
-------------
COMPUTERS (HARDWARE)--7.8%
Dell Computer Corp.(b).................. 1,073,300 44,206,544
International Business Machines Corp.... 551,800 115,429,662
Sun Microsystems, Inc.(b)............... 1,056,200 63,173,962
-------------
222,810,168
-------------
COMPUTERS (NETWORKING)--3.1%
Cisco Systems, Inc.(b).................. 778,100 88,752,031
COMPUTERS (PERIPHERALS)--1.8%
EMC Corp.(b)............................ 476,400 51,897,825
COMPUTERS (SOFTWARE & SERVICES)--7.9%
America Online, Inc.(b)................. 374,200 53,417,050
BMC Software, Inc.(b)................... 281,300 12,113,481
Compuware Corp.(b)...................... 761,300 18,556,687
Microsoft Corp.(b)...................... 1,544,800 125,611,550
Yahoo!, Inc.(b)......................... 85,600 14,953,250
-------------
224,652,018
-------------
CONSUMER FINANCE--2.0%
Capital One Financial Corp.............. 321,400 55,823,162
DISTRIBUTORS (FOOD & HEALTH)--1.2%
Cardinal Health, Inc.................... 588,750 35,214,609
ELECTRICAL EQUIPMENT--2.8%
General Electric Co..................... 758,100 79,979,550
ELECTRONICS (SEMICONDUCTORS)--5.2%
Intel Corp.............................. 1,508,400 92,295,225
<CAPTION>
SHARES VALUE
----------- -------------
<S> <C> <C> <C>
ELECTRONICS (SEMICONDUCTORS)--CONTINUED
Texas Instruments, Inc.................. 555,000 $ 56,679,375
-------------
148,974,600
-------------
FINANCIAL (DIVERSIFIED)--6.9%
American Express Co..................... 108,000 14,114,250
Citigroup, Inc.......................... 1,059,050 79,693,512
Freddie Mac............................. 481,600 30,220,400
Morgan Stanley Dean Witter & Co......... 724,500 71,861,344
-------------
195,889,506
-------------
HEALTH CARE (DIVERSIFIED)--3.0%
American Home Products Corp............. 448,400 27,352,400
Bristol-Myers Squibb Co................. 941,500 59,844,094
-------------
87,196,494
-------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--6.6%
Merck & Co., Inc........................ 585,000 41,096,250
Pfizer, Inc............................. 841,000 96,767,562
Schering-Plough Corp.................... 1,065,200 51,462,475
-------------
189,326,287
-------------
HEALTH CARE (MEDICAL PRODUCTS & SUPPLIES)--2.3%
Guidant Corp.(b)........................ 159,300 8,552,419
Medtronic, Inc.......................... 810,000 58,269,375
-------------
66,821,794
-------------
HOUSEHOLD PRODUCTS (NON-DURABLES)--2.1%
Procter & Gamble Co. (The).............. 638,100 59,861,756
INSURANCE (MULTI-LINE)--2.1%
American International Group, Inc....... 500,000 58,718,750
INVESTMENT BANKING/BROKERAGE--1.1%
Merrill Lynch & Co., Inc................ 390,000 32,735,625
LODGING-HOTELS--1.0%
Carnival Corp........................... 663,600 27,373,500
MANUFACTURING (DIVERSIFIED)--2.8%
Tyco International Ltd.................. 995,800 80,908,750
OIL & GAS (DRILLING & EQUIPMENT)--0.6%
Schlumberger Ltd........................ 251,700 16,077,338
PERSONAL CARE--1.5%
Gillette Co. (The)...................... 805,400 42,031,813
RESTAURANTS--1.0%
McDonald's Corp......................... 645,000 27,331,875
</TABLE>
See Notes to Financial Statements 19
<PAGE>
PHOENIX-GOODWIN GROWTH FUND
<TABLE>
<CAPTION>
SHARES VALUE
----------- -------------
<S> <C> <C> <C>
RETAIL (BUILDING SUPPLIES)--2.8%
Home Depot, Inc. (The).................. 891,000 $ 53,404,313
Lowe's Companies, Inc................... 505,000 26,638,750
-------------
80,043,063
-------------
RETAIL (DRUG STORES)--1.1%
Walgreen Co............................. 1,190,000 31,981,250
RETAIL (FOOD CHAINS)--2.7%
Meyer (Fred), Inc.(b)................... 1,079,780 58,443,093
Safeway, Inc.(b)........................ 372,200 20,075,538
-------------
78,518,631
-------------
RETAIL (GENERAL MERCHANDISE)--4.3%
Dayton Hudson Corp...................... 430,000 28,944,375
Wal-Mart Stores, Inc.................... 2,019,200 92,883,200
-------------
121,827,575
-------------
RETAIL (SPECIALTY)--1.3%
Staples, Inc.(b)........................ 1,274,400 38,232,000
SERVICES (ADVERTISING/MARKETING)--0.4%
Interpublic Group of Companies, Inc.
(The)................................... 159,400 12,363,463
TELECOMMUNICATIONS (LONG DISTANCE)--7.5%
AT&T Corp............................... 1,920,997 97,010,349
MCI WorldCom, Inc.(b)................... 1,416,535 116,421,470
-------------
213,431,819
-------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $2,053,222,381) 2,667,245,177
- --------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS --93.3%
(IDENTIFIED COST $2,053,222,381) 2,667,245,177
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000)
----------- -----------
<S> <C> <C> <C>
MEDIUM-TERM NOTES--0.1%
Associates Corporation of North America
5.65%, 6/15/99.......................... AA- $ 2,000 2,001,216
- -----------------------------------------------------------------------------------
TOTAL MEDIUM-TERM NOTES
(IDENTIFIED COST $1,999,575) 2,001,216
- -----------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS--6.9%
COMMERCIAL PAPER--4.3%
Ciesco L.P. 4.75%, 5/3/99............... A-1+ 25,000 24,993,403
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- ----------- -------------
<S> <C> <C> <C>
COMMERCIAL PAPER--CONTINUED
Ciesco L.P. 4.93%, 5/3/99............... A-1+ $ 6,355 $ 6,353,259
Enterprise Funding Corp. 4.98%,
5/3/99.................................. A-1 350 349,903
Enterprise Funding Corp. 5.95%,
5/3/99.................................. A-1 350 349,904
Preferred Receivables Funding Corp.
4.82%, 5/3/99........................... A-1 4,020 4,018,924
Merrill Lynch & Co., Inc. 4.85%,
5/4/99.................................. A-1+ 5,000 4,997,979
Pitney Bowes Credit Corp. 4.72%,
5/5/99.................................. A-1 30,000 29,984,267
Ford Motor Credit Co. 4.83%, 5/6/99..... A-1 3,450 3,447,686
General Electric Capital Corp. 4.77%,
5/6/99.................................. A-1+ 4,390 4,387,092
Cargill, Inc. 4.85%, 5/7/99............. A-1+ 5,000 4,995,958
Enterprise Funding Corp. 4.82%,
5/11/99................................. A-1 4,860 4,853,493
Abbott Laboratories 4.75%, 5/18/99...... A-1+ 4,285 4,275,388
Albertson's. Inc. 4.77%, 5/18/99........ A-1 20,000 19,954,950
Donnelley (R.R.) & Sons Co. 4.79%,
5/24/99................................. A-1 10,000 9,969,397
-------------
122,931,603
-------------
FEDERAL AGENCY SECURITIES--2.6%
FHLB Discount Corp. 4.67%, 5/7/99.................... 31,500 31,475,482
FMC Discount Note 4.68%, 5/12/99..................... 20,000 19,971,400
FHLB Discount Corp. 4.67%, 5/14/99................... 11,071 11,052,330
FMC Discount Note 4.71%, 5/17/99..................... 5,950 5,937,545
FMC Discount Note 4.69%, 5/20/99..................... 6,472 6,455,980
-------------
74,892,737
-------------
- -----------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $197,824,340) 197,824,340
- -----------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS--100.3%
(IDENTIFIED COST $2,253,046,296) 2,867,070,733(a)
Cash and receivables, less liabilities--(0.3%) (9,288,700)
----------------
NET ASSETS--100.0% $ 2,857,782,033
----------------
----------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $650,094,348 and gross
depreciation of $37,380,640 for federal income tax purposes. At April 30,
1999, the aggregate cost of securities for federal income tax purposes was
$2,254,357,025.
(b) Non-income producing.
20
See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $2,253,046,296) $2,867,070,733
Cash 4,410,044
Receivables
Dividends and interest 1,667,663
Fund shares sold 864,291
Prepaid expenses 62,236
--------------
Total assets 2,874,074,967
--------------
LIABILITIES
Payables
Investment securities purchased 6,769,681
Fund shares repurchased 6,089,984
Investment advisory fee 1,578,645
Transfer agent fee 681,143
Distribution fee 664,583
Financial agent fee 48,657
Trustees' fees 3,847
Accrued expenses 456,394
--------------
Total liabilities 16,292,934
--------------
NET ASSETS $2,857,782,033
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $1,896,217,135
Undistributed net investment loss (3,186,476)
Accumulated net realized gain 350,726,937
Net unrealized appreciation 614,024,437
--------------
NET ASSETS $2,857,782,033
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,762,808,183) 100,184,722
Net asset value per share $27.58
Offering price per share $27.58/(1-4.75%) $28.96
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $94,973,850) 3,542,005
Net asset value and offering price per share $26.81
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends $ 10,522,884
Interest 1,561,531
Security lending 87,726
------------
Total investment income 12,172,141
------------
EXPENSES
Investment advisory fee 9,172,949
Distribution fee, Class A 3,401,552
Distribution fee, Class B 442,315
Financial agent fee 308,862
Transfer agent 1,655,614
Printing 206,382
Custodian 76,521
Registration 38,284
Professional 35,593
Trustees 8,297
Miscellaneous 13,881
------------
Total expenses 15,360,250
Custodian fees paid indirectly (1,633)
------------
Net expenses 15,358,617
------------
NET INVESTMENT LOSS (3,186,476)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on securities 353,178,218
Net change in unrealized appreciation (depreciation) on
investments 166,963,458
------------
NET GAIN ON INVESTMENTS 520,141,676
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $516,955,200
------------
------------
</TABLE>
See Notes to Financial Statements 21
<PAGE>
PHOENIX-GOODWIN GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
4/30/99 Year Ended
(Unaudited) 10/31/98
--------------- ---------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (3,186,476) $ (6,323,768)
Net realized gain (loss) 353,178,218 240,243,310
Net change in unrealized appreciation
(depreciation) 166,963,458 75,013,694
--------------- ---------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 516,955,200 308,933,236
--------------- ---------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net realized gains, Class A (230,029,485) (489,479,916)
Net realized gains, Class B (7,477,186) (13,875,674)
--------------- ---------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (237,506,671) (503,355,590)
--------------- ---------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(4,794,252 and 15,305,754 shares,
respectively) 129,570,845 379,717,014
Net asset value of shares issued from
reinvestment of distributions
(8,345,619 and 20,640,114 shares,
respectively) 213,732,510 454,706,097
Cost of shares repurchased (10,513,207
and 28,881,261 shares, respectively) (286,106,484) (730,281,016)
--------------- ---------------
Total 57,196,871 104,142,095
--------------- ---------------
CLASS B
Proceeds from sales of shares (471,811
and 825,152 shares, respectively) 12,529,745 20,213,833
Net asset value of shares issued from
reinvestment of distributions
(276,169 and 585,412 shares,
respectively) 6,893,198 12,698,430
Cost of shares repurchased (322,597
and 766,812 shares, respectively) (8,563,275) (18,666,026)
--------------- ---------------
Total 10,859,668 14,246,237
--------------- ---------------
INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 68,056,539 118,388,332
--------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS 347,505,068 (76,034,022)
NET ASSETS
Beginning of period 2,510,276,965 2,586,310,987
--------------- ---------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($3,186,476) AND $0, RESPECTIVELY] $ 2,857,782,033 $ 2,510,276,965
--------------- ---------------
--------------- ---------------
</TABLE>
22 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN GROWTH FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31
4/30/99 ------------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 24.95 $ 27.83 $ 26.87 $ 24.92 $ 21.24 $ 21.53
INCOME FROM INVESTMENT
OPERATIONS(5)
Net investment income (loss) (0.03)(4) (0.06)(4) 0.14(4) 0.20(4) 0.26 0.26
Net realized and unrealized gain
(loss) 5.05 2.73 5.62 3.63 4.53 0.17
------------ ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 5.02 2.67 5.76 3.83 4.79 0.43
------------ ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income -- -- (0.21) (0.25) (0.30) (0.24)
Dividends from net realized
gains (2.39) (5.55) (4.59) (1.63) (0.81) (0.48)
------------ ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (2.39) (5.55) (4.80) (1.88) (1.11) (0.72)
------------ ----- ----- ----- ----- -----
Change in net asset value 2.63 (2.88) 0.96 1.95 3.68 (0.29)
------------ ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 27.58 $ 24.95 $ 27.83 $ 26.87 $ 24.92 $ 21.24
------------ ----- ----- ----- ----- -----
------------ ----- ----- ----- ----- -----
Total return(1) 20.86%(3) 12.26% 24.81% 16.34% 23.91% 2.06%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $2,762,808 $2,434,217 $2,518,289 $2,347,471 $2,300,251 $2,140,458
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.07%(2)(6) 1.08% 1.10% 1.17% 1.20% 1.19%
Net investment income (loss) (0.20)%(2) (0.22)% 0.53% 0.80% 0.92% 1.22%
Portfolio turnover 60%(3) 110% 196% 116% 109% 118%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED OCTOBER 31 INCEPTION
4/30/99 ------------------------------------------------------- 7/15/94 TO
(UNAUDITED) 1998 1997 1996 1995 10/31/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 24.40 $ 27.51 $ 26.63 $ 24.74 $ 21.19 $ 20.48
INCOME FROM INVESTMENT
OPERATIONS(5)
Net investment income (loss) (0.13)(4) (0.24)(4) (0.06)(4) --(4) --(4) 0.01
Net realized and unrealized gain
(loss) 4.93 2.68 5.57 3.61 4.60 0.70
---------- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 4.80 2.44 5.51 3.61 4.60 0.71
---------- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income -- -- (0.04) (0.09) (0.24) --
Dividends from net realized
gains (2.39) (5.55) (4.59) (1.63) (0.81) --
---------- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (2.39) (5.55) (4.63) (1.72) (1.05) --
---------- ----- ----- ----- ----- -----
Change in net asset value 2.41 (3.11) 0.88 1.89 3.55 0.71
---------- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 26.81 $ 24.40 $ 27.51 $ 26.63 $ 24.74 $ 21.19
---------- ----- ----- ----- ----- -----
---------- ----- ----- ----- ----- -----
Total return(1) 20.40%(3) 11.41% 23.89% 15.48% 23.02% 3.47%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $94,974 $76,060 $68,022 $45,326 $20,111 $2,966
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.82%(2)(6) 1.83% 1.85% 1.93% 1.97% 1.87%(2)
Net investment income (loss) (0.95)%(2) (0.97)% (0.25)% 0.01% 0.01% 0.32%(2)
Portfolio turnover 60%(3) 110% 196% 116% 109% 118%(3)
</TABLE>
(1) Maximum sales load is not reflected in 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 the six months ended April 30, 1999, the ratio of operating expenses to
average net assets exclude the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
See Notes to Financial Statements
23
<PAGE>
PHOENIX-GOODWIN HIGH YIELD FUND
INVESTMENTS AT APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
----------- ---------- ------------
<S> <C> <C> <C>
CORPORATE BONDS--65.1%
AUTO PARTS & EQUIPMENT--0.8%
Cambridge Industries, Inc. Series B
10.25%, 7/15/07......................... B $ 5,000 $ 4,350,000
BROADCASTING (TELEVISION, RADIO & CABLE)--7.5%
Adelphia Communications Corp. 144A
8.375%, 2/1/08(b)....................... B 4,150 4,274,500
CBS Radio, Inc. 11.375%, 1/15/09........ Ba 5,002 5,852,097
CSC Holdings, Inc. 7.625%, 7/15/18...... Ba 4,000 4,025,000
Century Communications Corp. Series B
0%, 1/15/08............................. Ba 9,000 4,320,000
Fox/Liberty Networks LLC 8.875%,
8/15/07................................. B 5,000 5,475,000
Poland Communications, Inc. Series B
9.875%, 11/1/03......................... B 12,200 11,544,250
United International Holdings, Inc.
Series B 0%, 2/15/08(d)................. B 8,000 5,380,000
------------
40,870,847
------------
BUILDING MATERIALS--1.3%
K.Hovnanian Enterprises, Inc. 9.125%,
5/1/09.................................. Ba 4,000 4,020,000
Nortek, Inc. Series B 9.125%, 9/1/07.... B 3,000 3,142,500
------------
7,162,500
------------
COMMUNICATIONS EQUIPMENT--5.2%
Metromedia Fiber Network, Inc. 144A 10%,
11/15/08(b)............................. B 3,880 4,209,800
Park N View, Inc. Series B 13%,
5/15/08................................. B 4,000 1,820,000
Rhythms NetConnections, Inc. 144A
12.75%, 4/15/09(b)...................... NR 1,500 1,500,000
Splitrock Services, Inc. Series B
11.75%, 7/15/08......................... NR 9,000 9,157,500
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
----------- ---------- ------------
<S> <C> <C> <C>
COMMUNICATIONS EQUIPMENT--CONTINUED
Stellex Industries, Inc. Series B 9.50%,
11/1/07................................. Caa $ 8,500 $ 7,756,250
TeleCorp PCS, Inc. 144A 0%,
4/15/09(b)(d)........................... B 7,000 3,955,000
------------
28,398,550
------------
COMPUTERS (SOFTWARE & SERVICES)--5.6%
Anacomp, Inc. Series B 10.875%, 4/1/04.. B 5,200 5,473,000
Anacomp, Inc. Series D 10.875%, 4/1/04.. B 7,000 7,367,500
ICG Holdings, Inc. 0%, 9/15/05(d)....... NR 9,200 8,395,000
PSINet, Inc. 11.50%, 11/1/08............ B 1,400 1,561,000
PSINet, Inc. Series B 10%, 2/15/05...... B 1,000 1,050,000
WAM!NET, Inc. Series B 0%, 3/1/05(d).... CCC+(c) 11,000 6,710,000
------------
30,556,500
------------
CONTAINERS & PACKAGING (PAPER)--0.6%
Packaging Corporation of America 144A
9.625%, 4/1/09(b)....................... B 3,000 3,127,500
CONTAINERS (METAL & GLASS)--1.3%
Portola Packaging, Inc. 10.75%,
10/1/05................................. B 7,000 7,297,500
ELECTRIC COMPANIES--1.0%
CalEnergy Co., Inc. 7.52%, 9/15/08...... Baa 5,000 5,275,000
ENTERTAINMENT--1.1%
SFX Entertainment, Inc. Series B 9.125%,
2/1/08.................................. B 2,500 2,593,750
SFX Entertainment, Inc. 144A 9.125%,
12/1/08(b).............................. B 3,500 3,631,250
------------
6,225,000
------------
FOODS--1.3%
Shoppers Food Warehouse 9.75%,
6/15/04................................. B 6,500 7,109,375
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--2.1%
Hollywood Casino Corp. 12.75%,
11/1/03................................. B 3,349 3,683,900
</TABLE>
24 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN HIGH YIELD FUND
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
----------- ---------- ------------
<S> <C> <C> <C>
GAMING, LOTTERY & PARI-MUTUEL COMPANIES--CONTINUED
Isle of Capri Casinos, Inc. 144A 8.75%,
4/15/09(b).............................. B $ 3,250 $ 3,241,875
Majestic Star Casino LLC 12.75%,
5/15/03................................. B 4,000 4,495,000
------------
11,420,775
------------
HEALTH CARE (DRUGS-MAJOR PHARMACEUTICALS)--1.6%
Global Health Sciences, Inc. 11%,
5/1/08.................................. Caa 6,900 4,416,000
Schein Pharmaceutical, Inc. 8.001%,
12/15/04(d)............................. B 4,800 4,488,000
------------
8,904,000
------------
HOMEBUILDING--0.5%
Beazer Homes USA, Inc. 9%, 3/1/04....... Ba 3,000 3,007,500
INSURANCE (MULTI-LINE)--0.7%
Willis Corroon Corp. 144A 9%,
2/1/09(b)............................... Ba 4,000 4,070,000
LEISURE TIME (PRODUCTS)--1.2%
Bally Total Fitness Holding Corp. 144A
9.875%, 10/15/07(b)..................... B 3,400 3,489,250
Bally Total Fitness Holding Corp. Series
B 9.875%, 10/15/07...................... B 3,300 3,386,625
------------
6,875,875
------------
MANUFACTURING (DIVERSIFIED)--0.7%
Polymer Group, Inc. Series B 8.75%,
3/1/08.................................. B 4,000 4,070,000
METALS MINING--0.1%
NSM Steel Ltd. Sr. 144A 12%, 2/1/06(b).. Caa 975 197,438
NSM Steel Ltd. Sub. 144A 12.25%,
2/1/08(b)(e)(f)......................... Ca 7,500 375,000
------------
572,438
------------
OIL & GAS (EXPLORATION & PRODUCTION)--3.2%
Bellwether Exploration Co. 10.875%,
4/1/07.................................. B 8,000 7,200,000
Benton Oil & Gas Co. 11.625%, 5/1/03.... B 9,800 6,566,000
Benton Oil & Gas Co. 9.375%, 11/1/07.... B 2,750 1,842,500
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
----------- ---------- ------------
<S> <C> <C> <C>
OIL & GAS (EXPLORATION & PRODUCTION)--CONTINUED
Lomak Petroleum, Inc. 8.75%, 1/15/07.... B $ 2,000 $ 1,680,000
------------
17,288,500
------------
OIL (DOMESTIC INTEGRATED)--1.0%
RBF Finance Co. 144A 11.375%,
3/15/09(b).............................. Ba 5,000 5,275,000
PAPER & FOREST PRODUCTS--1.4%
Buckeye Technologies, Inc. 8%,
10/15/10................................ Ba 7,365 7,475,475
PERSONAL CARE--1.4%
Revlon Consumer Products Corp. 9%,
11/1/06................................. B 3,000 3,067,500
Revlon Consumer Products Corp. 8.625%,
2/1/08.................................. B 4,650 4,475,625
------------
7,543,125
------------
PUBLISHING--1.6%
American Lawyer Media, Inc. Series B
9.75%, 12/15/07......................... B 3,250 3,388,125
Charter Communications Holdings LLC 144A
8.625%, 4/1/09(b)....................... B 5,000 5,137,500
------------
8,525,625
------------
RETAIL (HOME SHOPPING)--0.5%
U.S. Office Products Co. 9.75%,
6/15/08................................. Caa 3,800 2,641,000
RETAIL (SPECIALTY)--0.9%
Musicland Group, Inc. 9%, 6/15/03....... B 3,900 3,939,000
Musicland Group, Inc. Series B 9.875%,
3/15/08................................. B 1,000 1,017,500
------------
4,956,500
------------
SERVICES (ADVERTISING/MARKETING)--1.3%
Outdoor Communications, Inc. 9.25%,
8/15/07................................. B 6,500 6,938,750
SERVICES (COMMERCIAL & CONSUMER)--2.8%
Fisher Scientific International, Inc.
9%, 2/1/08.............................. B 4,000 4,055,000
United Rentals, Inc. Series B 9.50%,
6/1/08.................................. B 9,125 9,353,125
</TABLE>
See Notes to Financial Statements 25
<PAGE>
PHOENIX-GOODWIN HIGH YIELD FUND
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
----------- ---------- ------------
<S> <C> <C> <C>
SERVICES (COMMERCIAL & CONSUMER)--CONTINUED
United Rentals Inc. 144A 9.25%,
1/15/09(b).............................. B $ 2,000 $ 2,035,000
------------
15,443,125
------------
TELECOMMUNICATIONS (CELLULAR/WIRELESS)--1.0%
Nextel Commmunications, Inc. 0%,
10/31/07(d)............................. B 7,500 5,775,000
TELECOMMUNICATIONS (LONG DISTANCE)--10.6%
EchoStar DBS Corp. 144A 9.375%,
2/1/09(b)............................... B 5,000 5,225,000
Global Crossing Holdings Ltd. 9.625%,
5/15/08................................. B 5,730 6,417,600
IXC Communications, Inc. 9%, 4/15/08.... CCC+(c) 3,000 3,045,000
Interamericas Communications Corp. 14%,
10/27/07................................ NR 12,000 8,220,000
KMC Telecom Holdings, Inc. 0%,
2/15/08(d).............................. NR 8,000 4,660,000
NTL, Inc. Series A 0%, 4/15/05(d)....... B 12,000 11,535,000
NTL, Inc. Series B, 0%, 2/1/06(d)....... B 1,709 1,506,056
NTL, Inc. Series B 10%, 2/15/07......... B 8,000 8,660,000
RCN Corp. 0%, 10/15/07(d)............... B 7,750 5,405,625
RCN Corp. Series B 0%, 2/15/08(d)....... B 5,525 3,625,781
------------
58,300,062
------------
TELEPHONE--1.5%
Pathnet, Inc. 12.25%, 4/15/08........... NR 5,825 3,203,750
Teligent, Inc. 11.50%, 12/1/07.......... Caa 5,000 5,000,000
------------
8,203,750
------------
TEXTILES (APPAREL)--1.1%
Collins & Aikman Corp. 11.50%,
4/15/06................................. B 5,440 5,834,400
TRUCKERS--3.3%
American Commercial Lines LLC Series B
10.25%, 6/30/08......................... B 6,600 6,814,500
Hvide Marine, Inc. 8.375%, 2/15/08...... Caa 5,500 3,355,000
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
----------- ---------- ------------
<S> <C> <C> <C>
TRUCKERS--CONTINUED
Sea Containers Ltd. 7.875%, 2/15/08..... Ba $ 8,000 $ 7,880,000
------------
18,049,500
------------
WASTE MANAGEMENT--0.9%
Allied Waste North America, Inc. Series
B 7.625%, 1/1/06........................ Ba 5,000 4,900,000
- ---------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $376,707,109) 356,443,172
- ---------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-BACKED
SECURITIES--2.4%
First Chicago/Lennar Trust 97-CHL1, E
144A 8.053%, 2/28/11(b)(d).............. B(c) 10,000 7,100,000
Salomon Brothers Mortgage Securities VII
95-C, 1 144A 6.795%, 9/30/08(b)(d)...... B 6,850 6,043,286
- ---------------------------------------------------------------------------------
TOTAL NON-AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $13,058,911) 13,143,286
- ---------------------------------------------------------------------------------
FOREIGN GOVERNMENT SECURITIES--2.0%
DOMINICAN REPUBLIC--0.3%
Dominican Republic 6.063%, 8/30/24(d)... B+(c) 2,500 1,650,000
PANAMA--1.7%
Republic of Panama 8.875%, 9/30/27...... Ba 10,000 9,492,500
- ---------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT SECURITIES
(IDENTIFIED COST $11,509,390) 11,142,500
- ---------------------------------------------------------------------------------
FOREIGN CORPORATE BONDS--22.3%
ARGENTINA--1.4%
Disco SA 9.875%, 5/15/08................ Ba 6,230 5,591,425
Imasac SA 144A 11%, 5/2/05(b)........... B 3,230 2,277,150
------------
7,868,575
------------
BAHAMAS--1.7%
Sun International Hotels Ltd. 9%,
3/15/07................................. Ba 6,000 6,285,000
Sun International Hotels Ltd. 8.625%,
12/15/07................................ Ba 3,000 3,120,000
------------
9,405,000
------------
</TABLE>
26 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN HIGH YIELD FUND
<TABLE>
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
----------- ---------- ------------
<S> <C> <C> <C>
BRAZIL--2.3%
Globo Communicacoes e Participacoes SA
RegS 10.50%, 12/20/06................... B $ 5,000 $ 4,050,000
Globo Communicacoes e Participacoes SA
144A 10.625%, 12/5/08(b)................ B 3,500 2,800,000
Localiza Rent a Car 10.25%, 10/1/05..... B 8,000 6,000,000
------------
12,850,000
------------
CANADA--5.7%
Clearnet Communications, Inc. 0%,
12/15/05(d)............................. B 5,000 4,712,500
Clearnet Communications, Inc. 0%,
5/1/09(d)............................... B 5,500 3,423,750
Cott Corp. 8.50%, 5/1/07................ B 2,000 1,905,000
Hurricane Hydrocarbons Ltd. 144A 11.75%,
11/1/04(b).............................. Caa 8,000 2,400,000
Imax Corp. 7.875%, 12/1/05.............. Ba 4,000 3,990,000
MetroNet Communications Corp. 12%,
8/15/07................................. B 4,000 4,750,000
MetroNet Communications Corp. 0%,
6/15/08(d).............................. B 4,700 3,677,750
Rogers Cantel, Inc. 9.375%, 6/1/08...... Ba 5,500 6,077,500
------------
30,936,500
------------
CHINA--0.2%
Greater Beijing First Expressways Ltd.
9.50%, 6/15/07.......................... Ba 1,650 940,500
CYPRUS--1.2%
American Reefer Co. Ltd. 10.25%,
3/1/08.................................. B 10,000 6,300,000
GREECE--2.1%
Eletson Holdings, Inc. 9.25%, 11/15/03.. Ba 2,500 2,412,500
Fage Dairy Industries SA 9%, 2/1/07..... B 10,000 9,000,000
------------
11,412,500
------------
INDONESIA--0.7%
APP Finance II Mauritius Ltd. 12%,
12/29/49(d)............................. Caa 7,900 3,979,625
<CAPTION>
PAR
MOODY'S VALUE
RATING (000) VALUE
----------- ---------- ------------
<S> <C> <C> <C>
MEXICO--2.5%
Altos Hornos de Mexico Series B 11.875%,
4/30/04(e)(f)........................... Caa $ 5,000 $ 2,100,000
Copamex Industrias SA Series B 11.375%,
4/30/04................................. NR 3,000 2,805,000
Innova S de R.L. 12.875%, 4/1/07........ B 5,000 4,400,000
Nacional Financiera SNC EMTN 144A 9.75%,
3/12/02(b).............................. Ba 4,500 4,574,250
------------
13,879,250
------------
NETHERLANDS--1.3%
Netia Holdings BV Series B 0%,
11/1/07(d).............................. B 9,750 6,922,500
POLAND--0.8%
Poland Telecom Finance Series B 14%,
12/1/07................................. NR 5,000 4,500,000
UNITED KINGDOM--2.4%
Esprit Telecom Group PLC 11.50%,
12/15/07................................ Caa 10,000 10,975,000
RSL Communications PLC 0%, 3/1/08(d).... B 3,000 1,965,000
------------
12,940,000
------------
- ---------------------------------------------------------------------------------
TOTAL FOREIGN CORPORATE BONDS
(IDENTIFIED COST $139,772,044) 121,934,450
- ---------------------------------------------------------------------------------
FOREIGN CONVERTIBLE BONDS--0.9%
RUSSIA--0.9%
Lukinter Finance Cv. RegS 3.50%,
5/6/02.................................. CCC-(c) 1,000 675,000
Lukinter Finance Cv. 144A 1%,
11/3/03(b).............................. CCC-(c) 9,500 4,132,500
- ---------------------------------------------------------------------------------
TOTAL FOREIGN CONVERTIBLE BONDS
(IDENTIFIED COST $10,439,576) 4,807,500
- ---------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements 27
<PAGE>
PHOENIX-GOODWIN HIGH YIELD FUND
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------
PREFERRED STOCKS--2.0%
<S> <C> <C> <C>
PAPER & FOREST PRODUCTS--0.7%
SD Warren Co. Pfd. Series B PIK 14%.................. 115,000 $ 3,752,808
TELECOMMUNICATIONS (LONG DISTANCE)--1.3%
Global Crossing Holdings Ltd. PIK 10.50%............. 62,500 7,250,000
- ---------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $8,659,400) 11,002,808
- ---------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--0.2%
BROADCASTING (TELEVISION, RADIO & CABLE)--0.2%
Granite Broadcasting Corp. Cv. Pfd. $1.938........... 30,000 1,185,000
- ---------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $2,025,000) 1,185,000
- ---------------------------------------------------------------------------------
COMMON STOCKS--0.0%
SPECIALTY PRINTING--0.0%
Sullivan Holdings, Inc. Class C(e)................... 76 0
- ---------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $357,881) 0
- ---------------------------------------------------------------------------------
WARRANTS--0.5%
FirstCom Corp. Warrants(e)........................... 420,000 1,050,000
KMC Telecom Holdings, Inc. 144A Warrants(b)(e)....... 8,000 8,000
Loral Space & Communications, Inc. Warrants(e)....... 8,000 40,000
Metronet Communications 144A Warrants
(Canada)(b)(e)....................................... 4,000 381,548
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C> <C>
NSM Steel, Inc. 144A Warrants(b)(e).................. 4,748,195 $ 47,482
Park N View Warrants(e).............................. 4,000 8,000
Pathnet, Inc. 144A Warrants(b)(e).................... 6,000 60,000
Splitrock Services, Inc. Warrants(e)................. 6,000 510,000
WAM!NET, Inc. Warrants(e)............................ 33,000 750,750
- ---------------------------------------------------------------------------------
TOTAL WARRANTS
(IDENTIFIED COST $148,190) 2,855,780
- ---------------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--95.4%
(IDENTIFIED COST $562,677,501) 522,514,496
- ---------------------------------------------------------------------------------
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000)
----------- ----------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--0.7%
COMMERCIAL PAPER--0.7%
Ford Motor Credit Co. 4.84%, 5/4/99..... A-1 $ 480 479,806
Albertson's, Inc. 4.84%, 5/11/99........ A-1 1,005 1,003,649
AlliedSignal, Inc. 4.80%, 6/30/99....... A-1 2,100 2,083,794
- ---------------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $3,566,655) 3,567,249
- ---------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS--96.1%
(IDENTIFIED COST $566,244,156) 526,081,745(a)
Cash and receivables, less liabilities--3.9% 21,252,913
--------------
NET ASSETS--100.0% $ 547,334,658
--------------
--------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $23,282,687 and gross
depreciation of $63,540,597 for federal income tax purposes. At April 30,
1999, the aggregate cost of securities for federal income taax purposes was
$566,339,655.
(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,
1999, these securities amounted to a value of $79,568,329 or 14.5% of net
assets.
(c) As rated by Standard & Poor's, Fitch or Duff & Phelps.
(d) Variable or step coupon security; interest rate reflects the rate currently
in effect.
(e) Non-income producing.
(f) Security in default.
28
See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN HIGH YIELD FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $566,244,156) $ 526,081,745
Cash 2,912
Receivables
Interest and dividends 14,802,672
Fund shares sold 11,646,828
Investment securities sold 3,781,763
Prepaid expenses 13,094
--------------
Total assets 556,329,014
--------------
LIABILITIES
Payables
Investment securities purchased 5,439,671
Fund shares repurchased 2,780,144
Investment advisory fee 292,833
Transfer agent fee 164,860
Distribution fee 156,304
Financial agent fee 21,228
Trustees' fee 3,846
Accrued expenses 135,470
--------------
Total liabilities 8,994,356
--------------
NET ASSETS $ 547,334,658
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 671,120,538
Undistributed net investment loss (70,925)
Accumulated net realized loss (83,552,544)
Net unrealized depreciation (40,162,411)
--------------
NET ASSETS $ 547,334,658
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $476,173,306) 59,514,791
Net asset value per share $8.00
Offering price per share $8.00/(1-4.75%) $8.40
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $68,242,888) 8,576,333
Net asset value and offering price per share $7.96
CLASS C
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $2,918,464) 365,851
Net asset value and offering price per share $7.98
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 28,250,947
Dividends 372,127
--------------
Total investment income 28,623,074
--------------
EXPENSES
Investment advisory fee 1,739,631
Distribution fee, Class A 585,473
Distribution fee, Class B 323,614
Distribution fee, Class C 10,849
Financial agent fee 160,293
Transfer agent 400,369
Printing 57,090
Professional 17,525
Custodian 14,021
Trustees 8,601
Miscellaneous 6,678
--------------
Total expenses 3,324,144
Custodian fees paid indirectly (12,186)
--------------
Net expenses 3,311,958
--------------
NET INVESTMENT INCOME 25,311,116
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (19,100,772)
Net change in unrealized appreciation (depreciation) on
investments 52,022,182
--------------
NET GAIN ON INVESTMENTS 32,921,410
--------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 58,232,526
--------------
--------------
</TABLE>
See Notes to Financial Statements 29
<PAGE>
PHOENIX-GOODWIN HIGH YIELD FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
4/30/99 Year Ended
(Unaudited) 10/31/98
------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 25,311,116 $ 54,925,644
Net realized gain (loss) (19,100,772) (2,965,994)
Net change in unrealized appreciation
(depreciation) 52,022,182 (98,402,826)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 58,232,526 (46,443,176)
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (24,586,078) (48,737,532)
Net investment income, Class B (3,232,246) (5,729,283)
Net investment income, Class C (109,576) (77,895)
------------- -------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (27,927,900) (54,544,710)
------------- -------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(14,525,490 and 14,608,985 shares,
respectively) 113,090,361 131,624,797
Net asset value of shares issued from
reinvestment of distributions
(1,786,835 and 2,974,231 shares,
respectively) 13,983,577 26,360,963
Cost of shares repurchased (13,411,028
and 19,613,171 shares, respectively) (105,148,588) (175,549,018)
------------- -------------
Total 21,925,350 (17,563,258)
------------- -------------
CLASS B
Proceeds from sales of shares
(1,757,585 and 4,637,394 shares,
respectively) 13,701,768 41,776,158
Net asset value of shares issued from
reinvestment of distributions
(153,765 and 251,098 shares,
respectively) 1,197,574 2,210,523
Cost of shares repurchased (1,447,945
and 2,529,603 shares, respectively) (11,286,907) (22,197,043)
------------- -------------
Total 3,612,435 21,789,638
------------- -------------
CLASS C
Proceeds from sales of shares (193,438
and 276,001 shares, respectively) 1,516,644 2,487,472
Net asset value of shares issued from
reinvestment of distributions
(5,168 and 3,918 shares,
respectively) 40,392 33,626
Cost of shares repurchased (54,092 and
58,582 shares, respectively) (419,030) (495,138)
------------- -------------
Total 1,138,006 2,025,960
------------- -------------
INCREASE IN NET ASSETS FROM SHARE
TRANSACTIONS 26,675,791 6,252,340
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS 56,980,417 (94,735,546)
NET ASSETS
Beginning of period 490,354,241 585,089,787
------------- -------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($70,925) AND $2,545,859,
RESPECTIVELY] $ 547,334,658 $ 490,354,241
------------- -------------
------------- -------------
</TABLE>
30 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN HIGH YIELD FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31
4/30/99 --------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.55 $ 9.09 $ 8.63 $ 8.17 $ 8.11 $ 9.11
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.37 0.83 0.80 0.78 0.80 0.76
Net realized and unrealized gain
(loss) 0.49 (1.56) 0.46 0.46 0.04 (0.97)
---------- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 0.86 (0.73) 1.26 1.24 0.84 (0.21)
---------- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income (0.41) (0.81) (0.80) (0.78) (0.78) (0.76)
Tax return of capital -- -- -- -- -- (0.03)
---------- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.41) (0.81) (0.80) (0.78) (0.78) (0.79)
---------- ----- ----- ----- ----- -----
Change in net asset value 0.45 (1.54) 0.46 0.46 0.06 (1.00)
---------- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 8.00 $ 7.55 $ 9.09 $ 8.63 $ 8.17 $ 8.11
---------- ----- ----- ----- ----- -----
---------- ----- ----- ----- ----- -----
Total return(1) 11.60%(3) (8.97)% 15.03% 15.95% 11.19% (2.57)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $476,173 $427,659 $532,906 $501,265 $507,855 $531,773
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.14%(2)(4) 1.12% 1.11% 1.17% 1.21% 1.19%
Net investment income 9.55%(2) 9.13% 8.76% 9.21% 10.01% 9.01%
Portfolio turnover 44%(3) 103% 167% 162% 147% 222%
</TABLE>
(1) Maximum sales load is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) For the six months ended April 30, 1999, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
See Notes to Financial Statements
31
<PAGE>
PHOENIX-GOODWIN HIGH YIELD FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED OCTOBER 31 INCEPTION
4/30/99 ---------------------------------------------------- 2/16/94 TO
(UNAUDITED) 1998 1997 1996 1995 10/31/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $7.52 $ 9.07 $ 8.63 $ 8.19 $ 8.13 $9.38
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.34 0.76 0.73 0.71 0.72 0.54
Net realized and unrealized gain
(loss) 0.49 (1.55) 0.46 0.45 0.07 (1.25)
---------- ----- ----- ----- ----- ------------
TOTAL FROM INVESTMENT
OPERATIONS 0.83 (0.79) 1.19 1.16 0.79 (0.71)
---------- ----- ----- ----- ----- ------------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.39) (0.76) (0.75) (0.72) (0.73) (0.52)
Tax return of capital -- -- -- -- -- (0.02)
---------- ----- ----- ----- ----- ------------
TOTAL DISTRIBUTIONS (0.39) (0.76) (0.75) (0.72) (0.73) (0.54)
---------- ----- ----- ----- ----- ------------
Change in net asset value 0.44 (1.55) 0.44 0.44 0.06 (1.25)
---------- ----- ----- ----- ----- ------------
NET ASSET VALUE, END OF PERIOD $7.96 $ 7.52 $ 9.07 $ 8.63 $ 8.19 $8.13
---------- ----- ----- ----- ----- ------------
---------- ----- ----- ----- ----- ------------
Total return(1) 11.21%(3) (9.61)% 14.18% 14.88% 10.44% (7.67)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $68,243 $61,026 $52,184 $25,595 $12,331 $6,056
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.89%(2)(4) 1.88% 1.86% 1.92% 1.97% 1.80%(2)
Net investment income 8.78%(2) 8.46% 8.00% 8.47% 9.18% 9.12%(2)
Portfolio turnover 44%(3) 103% 167% 162% 147% 222%(3)
</TABLE>
<TABLE>
<CAPTION>
CLASS C
---------------------------
SIX MONTHS FROM
ENDED INCEPTION
4/30/99 2/27/98 TO
(UNAUDITED) 10/31/98
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 7.54 $ 9.31
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.35 0.50
Net realized and unrealized gain
(loss) 0.48 (1.76)
----- -----
TOTAL FROM INVESTMENT
OPERATIONS 0.83 (1.26)
----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income (0.39) (0.51)
Tax return of capital -- --
----- -----
TOTAL DISTRIBUTIONS (0.39) (0.51)
----- -----
Change in net asset value 0.44 (1.77)
----- -----
NET ASSET VALUE, END OF PERIOD $ 7.98 $ 7.54
----- -----
----- -----
Total return(1) 11.20%(3) (14.09)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $2,918 $1,669
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.89%(2)(4) 1.88%(2)
Net investment income 8.69%(2) 8.94%(2)
Portfolio turnover 44%(3) 103%(3)
</TABLE>
(1) Maximum sales load is not reflected in total return calculation.
(2) Annualized.
(3) Not annualized.
(4) For the six months ended April 30, 1999, the ratio of operating expenses to
average net assets excludes the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
32
See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN MONEY MARKET FUND
INVESTMENTS AT APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
VALUE INTEREST RESET
(000) DESCRIPTION RATE DATE VALUE
- -------- ------------------------------------ ------- --------- ------------
<C> <S> <C> <C> <C> <C>
FEDERAL AGENCY SECURITIES--VARIABLE(b)--16.3%
$ 10,500 FFCB (final maturity 7/24/00)....... 5.04% 5/1/99 $ 10,501,460
403 SBA (final maturity 1/25/21)........ 5.25 5/1/99 402,260
2,995 SBA (final maturity 3/25/24)........ 5.125 5/1/99 2,993,141
3,000 SLMA (final maturity 3/7/01)........ 4.717 5/4/99 3,000,000
1,000 SLMA (final maturity 8/19/99)....... 4.887 5/4/99 1,000,000
4,000 FNMA (final maturity 9/17/99)....... 4.82 6/17/99 3,999,086
2,635 SBA (final maturity 10/25/22)....... 5.25 7/1/99 2,631,551
2,943 SBA (final maturity 2/25/23)........ 5.25 7/1/99 2,943,456
2,801 SBA (final maturity 2/25/23)........ 5.25 7/1/99 2,801,442
447 SBA (final maturity 5/25/21)........ 5.25 7/1/99 446,573
3,510 SBA (final maturity 9/25/23)........ 5.125 7/1/99 3,510,198
- ----------------------------------------------------------------------------------------------------
34,229,167
TOTAL FEDERAL AGENCY SECURITIES--VARIABLE
- ----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
STANDARD
& POOR'S MATURITY
RATING DATE
-------- ---------
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER--70.9%
10,000 Corporate Asset Funding Co., Inc...... A-1+ 5.00 5/3/99 9,997,222
2,500 Enterprise Funding Corp............... A-1 4.81 5/3/99 2,499,332
1,835 Pitney Bowes Credit Corp.............. A-1+ 4.80 5/3/99 1,834,511
8,040 Pitney Bowes Credit Corp.............. A-1+ 5.05 5/3/99 8,037,744
3,500 Exxon Imperial Funding U.S., Inc...... A-1+ 4.82 5/4/99 3,498,594
2,500 Merrill Lynch & Co., Inc.............. A-1+ 4.87 5/4/99 2,498,985
2,500 AT&T Corp............................. A-1 4.82 5/5/99 2,498,661
1,000 American Home Products Corp........... A-1 4.84 5/5/99 999,462
3,000 Greenwich Funding Corp................ A-1+ 4.90 5/5/99 2,998,367
5,000 Merrill Lynch & Co., Inc.............. A-1+ 4.82 5/6/99 4,996,653
2,500 Private Export Funding Corp........... A-1+ 4.68 5/6/99 2,498,375
<CAPTION>
FACE STANDARD
VALUE & POOR'S INTEREST MATURITY
(000) DESCRIPTION RATING RATE DATE VALUE
- -------- -------------------------------------- -------- ------- --------- ------------
<C> <S> <C> <C> <C> <C>
$ 1,682 Enterprise Funding Corp............... A-1 4.82% 5/7/99 $ 1,680,649
3,000 Kimberly-Clark Corp................... A-1+ 4.79 5/7/99 2,997,605
2,850 Marsh & McLennan Cos., Inc............ A-1+ 4.79 5/7/99 2,847,725
2,500 Donnelley (R.R.) & Sons Co............ A-1 4.84 5/10/99 2,496,975
500 Dupont (E.I.) de Nemours & Co......... A-1+ 4.80 5/10/99 499,400
3,500 Kimberly-Clark Corp................... A-1+ 4.83 5/10/99 3,495,774
1,225 Preferred Receivables Funding Corp.... A-1 4.82 5/10/99 1,223,524
3,000 Albertson's, Inc...................... A-1 4.84 5/11/99 2,995,967
2,500 Ameritech Corp........................ A-1+ 4.79 5/11/99 2,496,674
2,500 Ciesco L.P............................ A-1+ 4.80 5/11/99 2,496,667
3,000 General Electric Capital Corp......... A-1+ 4.84 5/12/99 2,995,563
415 Asset Securitization Corp............. A-1+ 4.85 5/14/99 414,273
5,000 Receivables Capital Corp.............. A-1+ 4.80 5/14/99 4,991,333
2,980 Beta Finance, Inc..................... A-1+ 5.01 5/17/99 2,973,365
2,330 Ciesco L.P............................ A-1+ 4.80 5/17/99 2,325,029
2,670 Lexington Parker Capital Co. LLC...... A-1 4.82 5/18/99 2,663,923
5,000 AT&T Corp............................. A-1+ 4.79 5/19/99 4,988,025
1,135 Albertson's, Inc...................... A-1 4.80 5/20/99 1,132,125
2,045 Lexington Parker Capital Co. LLC...... A-1 4.82 5/20/99 2,039,798
2,825 Lexington Parker Capital Co. LLC...... A-1 4.82 5/21/99 2,817,435
500 AlliedSignal, Inc..................... A-1 4.84 5/24/99 498,454
5,000 Donnelley (R.R.) & Sons Co............ A-1 4.79 5/24/99 4,984,699
1,916 Greenwich Funding Corp................ A-1+ 4.81 5/24/99 1,910,112
900 Dupont (E.I.) de Nemours & Co......... A-1+ 4.84 5/25/99 897,096
</TABLE>
See Notes to Financial Statements 33
<PAGE>
PHOENIX-GOODWIN MONEY MARKET FUND
<TABLE>
<CAPTION>
FACE STANDARD
VALUE & POOR'S INTEREST MATURITY
(000) DESCRIPTION RATING RATE DATE VALUE
- -------- -------------------------------------- -------- ------- --------- ------------
<C> <S> <C> <C> <C> <C>
$ 4,331 Vermont American Corp................. A-1+ 4.80% 5/26/99 $ 4,316,563
3,925 Albertson's, Inc...................... A-1 4.80 5/27/99 3,911,393
3,000 Private Export Funding Corp........... A-1+ 4.81 5/27/99 2,989,578
2,000 Shell Oil Co.......................... A-1+ 4.80 5/27/99 1,993,067
3,920 AlliedSignal, Inc..................... A-1 4.85 5/28/99 3,905,741
800 Shell Oil Co.......................... A-1+ 4.82 6/4/99 796,358
1,000 Dupont (E.I.) de Nemours & Co......... A-1+ 4.79 6/8/99 994,944
800 General Electric Capital Corp......... A-1+ 4.82 6/10/99 795,716
600 General Electric Capital Corp......... A-1+ 4.82 6/11/99 596,706
1,489 Enterprise Funding Corp............... A-1 4.82 6/14/99 1,480,228
3,058 Greenwich Funding Corp................ A-1+ 4.82 6/15/99 3,039,576
1,200 Shell Oil Co.......................... A-1+ 4.80 6/25/99 1,191,200
3,500 AlliedSignal, Inc..................... A-1 4.80 6/30/99 3,472,000
2,500 Greenwich Funding Corp................ A-1+ 4.84 7/1/99 2,479,497
4,000 Private Export Funding Corp........... A-1+ 4.80 7/12/99 3,961,600
1,000 Enterprise Funding Corp............... A-1 4.84 8/26/99 984,270
1,625 Lexington Parker Capital Co. LLC...... A-1 4.87 9/3/99 1,597,522
500 Beta Finance, Inc..................... A-1+ 4.83 9/8/99 491,279
2,500 Preferred Receivables Funding Corp.... A-1 4.87 9/13/99 2,454,344
2,500 Preferred Receivables Funding Corp.... A-1 4.85 9/13/99 2,454,531
1,261 Enterprise Funding Corp............... A-1 4.87 9/17/99 1,237,289
2,500 Campbell Soup Co...................... A-1+ 4.85 4/13/00 2,382,792
- ----------------------------------------------------------------------------------------------------
148,746,290
TOTAL COMMERCIAL PAPER
- ----------------------------------------------------------------------------------------------------
<CAPTION>
FACE STANDARD
VALUE & POOR'S INTEREST MATURITY
(000) DESCRIPTION RATING RATE DATE VALUE
- -------- -------------------------------------- -------- ------- --------- ------------
<C> <S> <C> <C> <C> <C>
MEDIUM-TERM NOTES(e)--9.8%
$ 2,500 Associates Corporation of North
America............................... AA- 4.808% 5/20/99 $ 2,498,470
3,500 General Electric Capital Corp.(c)..... AAA 4.899 6/4/99 3,499,689
3,500 Associates Corporation of North
America............................... AA- 5.65 6/15/99 3,499,256
1,550 AT&T Corp............................. AA- 6.58 9/3/99 1,554,709
1,225 Associates Corporation of North
America............................... AA- 6.68 9/17/99 1,232,077
600 Associates Corporation of North
America............................... AA- 6.75 10/15/99 604,863
2,500 Beta Finance, Inc..................... AAA 5.35 3/9/00 2,500,000
2,500 Associates Corporation of North
America............................... AA- 9.125 4/1/00 2,586,248
2,500 Dupont (E.I.) de Nemours & Co......... AA- 5.079 4/3/00 2,498,449
- ----------------------------------------------------------------------------------------------------
20,473,761
TOTAL MEDIUM-TERM NOTES
- ----------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--8.6%
1,000 Deutsche Bank Financial, Inc.......... AA+ 5.67 6/18/99 1,000,608
3,500 Canadian Imperial Funding Corp........ AA- 6.475 1/24/00 3,536,328
2,500 Deutsche Bank Financial, Inc.......... AA+ 4.97 2/2/00 2,497,530
2,500 Canadian Imperial Funding Corp........ AA- 5.01 2/7/00 2,499,627
2,500 Deutsche Bank Financial, Inc.......... AA+ 5.10 2/17/00 2,499,422
2,500 Canadian Imperial Funding Corp........ AA- 5.12 2/23/00 2,499,213
3,500 ABN AMRO Bank(d)...................... AA 4.88 4/20/00 3,497,998
- ----------------------------------------------------------------------------------------------------
18,030,726
TOTAL CERTIFICATES OF DEPOSIT
- ----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS--105.6%
(IDENTIFIED COST $221,479,944) 221,479,944(A)
---------------------------------------------------------------------------------------------------
Cash and receivables, less liabilities--(5.6%) (11,666,263)
------------
NET ASSETS--100.0% $209,813,681
------------
------------
</TABLE>
(a) Federal Income Tax Information: At April 30, 1999, the aggregate cost of
securities was the same for book and tax purposes.
(b) Variable rate demand notes. The interest rates shown reflect the rates
currently in effect.
(c) Variable rate medium term note. The interest rate shown reflects the rate
currently in effect.
(d) Variable rate certificate of deposit. The interest rate shown reflects the
rate currently in effect. The next reset date is 7/20/99.
(e) The interest rate shown is the coupon rate.
34
See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $221,479,944) $ 221,479,944
Cash 31,041
Receivables
Fund shares sold 7,358,462
Interest 638,925
Investment securities sold 58,319
Prepaid expenses 4,472
--------------
Total assets 229,571,163
--------------
LIABILITIES
Payables
Fund shares repurchased 19,442,573
Dividend distributions 96,837
Investment advisory fee 68,892
Transfer agent fee 26,534
Financial agent fee 16,241
Distribution fee 10,351
Trustees' fee 3,847
Accrued expenses 92,207
--------------
Total liabilities 19,757,482
--------------
NET ASSETS $ 209,813,681
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest 209,813,681
--------------
NET ASSETS $ 209,813,681
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $193,943,751) 193,943,751
Net asset value and offering price per share $1.00
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $15,869,930) 15,869,930
Net asset value and offering price per share $1.00
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 5,422,292
--------------
Total investment income 5,422,292
--------------
EXPENSES
Investment advisory fee 421,620
Distribution fee, Class B 69,288
Financial agent fee 96,303
Transfer agent 167,968
Printing 28,153
Registration 23,198
Custodian 18,442
Professional 14,961
Trustees 8,601
Miscellaneous 4,169
--------------
Total expenses 852,703
Custodian fees paid indirectly (2,362)
--------------
Net expenses 850,341
--------------
NET INVESTMENT INCOME $ 4,571,951
--------------
--------------
</TABLE>
See Notes to Financial Statements 35
<PAGE>
PHOENIX-GOODWIN MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
4/30/99 Year Ended
(Unaudited) 10/31/98
--------------- ---------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 4,571,951 $ 9,527,556
--------------- ---------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (4,238,129) (8,931,102)
Net investment income, Class B (333,822) (596,454)
--------------- ---------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO
SHAREHOLDERS (4,571,951) (9,527,556)
--------------- ---------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares (744,133,014 and
1,101,598,303 shares, respectively) 744,133,014 1,101,598,303
Net asset value of shares issued from
reinvestment of distributions
(3,852,064 and 7,964,222 shares, respectively) 3,852,064 7,964,222
Cost of shares repurchased (749,333,245 and
1,102,965,310 shares, respectively) (749,333,245) (1,102,965,310)
--------------- ---------------
Total (1,348,167) 6,597,215
--------------- ---------------
CLASS B
Proceeds from sales of shares (30,712,228 and
46,229,441 shares, respectively) 30,712,228 46,229,441
Net asset value of shares issued from
reinvestment of distributions
(272,859 and 482,065 shares, respectively) 272,859 482,065
Cost of shares repurchased (35,092,918 and
41,747,121 shares, respectively) (35,092,918) (41,747,121)
--------------- ---------------
Total (4,107,831) 4,964,385
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM SHARE
TRANSACTIONS (5,455,998) 11,561,600
--------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS (5,455,998) 11,561,600
NET ASSETS
Beginning of period 215,269,679 203,708,079
--------------- ---------------
END OF PERIOD $ 209,813,681 $ 215,269,679
--------------- ---------------
--------------- ---------------
</TABLE>
36 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31
4/30/99 --------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<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 (loss) 0.022 0.049 0.048 0.047 0.053 0.032
---------- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 0.022 0.049 0.048 0.047 0.053 0.032
---------- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income (0.022) (0.049) (0.048) (0.047) (0.053) (0.032)
---------- ----- ----- ----- ----- -----
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 2.20%(2) 5.00% 4.76% 4.67% 5.32% 3.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $193,944 $195,292 $188,695 $192,859 $193,534 $196,566
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 0.74%(1)(3) 0.73% 0.79% 0.84% 0.71% 0.85%
Net investment income 4.41%(1) 4.90% 4.76% 4.68% 5.31% 3.19%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED OCTOBER 31 INCEPTION
4/30/99 ---------------------------------------------------- 7/15/94 TO
(UNAUDITED) 1998 1997 1996 1995 10/31/94
<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 (loss) 0.018 0.041 0.040 0.039 0.046 0.007
---------- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS 0.018 0.041 0.040 0.039 0.046 0.007
---------- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income (0.018) (0.041) (0.040) (0.039) (0.046) (0.007)
---------- ----- ----- ----- ----- -----
Change in net asset value -- -- -- -- -- --
---------- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ----- ----- ----- ----- -----
---------- ----- ----- ----- ----- -----
Total return 1.82%(2) 4.22% 4.02% 3.93% 4.63% 0.70%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $15,870 $19,978 $15,013 $10,223 $8,506 $2,086
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.49%(1)(3) 1.48% 1.55% 1.59% 1.44% 1.60%(1)
Net investment income 3.61%(1) 4.15% 4.02% 3.92% 4.62% 3.46%(1)
</TABLE>
(1) Annualized
(2) Not annualized
(3) For the six months ended April 30, 1999, the ratio of operating expenses to
average net assets exclude the effect of expense offsets for custodian
fees; if expense offsets were included, the ratio would not significantly
differ.
See Notes to Financial Statements
37
<PAGE>
PHOENIX-GOODWIN U.S. GOVERNMENT SECURITIES FUND
INVESTMENTS AT APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- -------- ------------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--6.8%
U.S. TREASURY BONDS--4.0%
U.S. Treasury Strip P.O. 0%, 2/15/25.... AAA $ 4,000 $ 879,701
U.S. Treasury Bonds 5.50%, 8/15/28...... AAA 6,500 6,186,966
------------
7,066,667
------------
U.S. TREASURY NOTES--2.8%
U.S. Treasury Notes 5.75%, 4/30/03...... AAA 5,000 5,083,565
- ----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES
(IDENTIFIED COST $13,240,879) 12,150,232
- ----------------------------------------------------------------------------
AGENCY MORTGAGE-BACKED SECURITIES--59.1%
Fannie Mae 10%, 5/25/04................. AAA 1,515 1,587,635
Fannie Mae 5.50%, 10/25/04.............. AAA 83 83,055
Fannie Mae 6.75%, 5/25/19............... AAA 1,000 1,012,867
Fannie Mae 6.75%, 6/25/21............... AAA 1,000 1,015,023
GNMA 6%, 1/15/29........................ AAA 34,747 33,661,219
GNMA 6.50%, 9/15/28..................... AAA 34,758 34,540,120
GNMA 7%, 1/15/28........................ AAA 8,824 8,958,866
GNMA 7%, 3/15/28........................ AAA 10,445 10,605,046
GNMA 7.50%, 12/15/25.................... AAA 5,969 6,155,880
GNMA 7.50%, 10/15/26.................... AAA 4,880 5,029,780
GNMA 7.50%, 1/15/29..................... AAA 2,673 2,755,335
GNMA 8%, 9/15/05........................ AAA 94 98,085
GNMA 8%, 9/15/06........................ AAA 15 15,613
GNMA 8.50%, '01-'22..................... AAA 228 231,998
- ----------------------------------------------------------------------------
TOTAL AGENCY MORTGAGE-BACKED SECURITIES
(IDENTIFIED COST $107,129,354) 105,750,522
- ----------------------------------------------------------------------------
MUNICIPAL BONDS--19.3%
CALIFORNIA--3.5%
San Francisco City & County
Redevelopment Agency Revenue Taxable
9.75%, 6/1/13(c)........................ AAA 4,800 6,300,000
CONNECTICUT--2.9%
Mashantucket Western Pequot Tribe
Revenue Taxable Series A 144A 6.91%,
9/1/12(b)............................... AAA 5,100 5,170,125
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- -------- ------------
<S> <C> <C> <C>
GEORGIA--2.9%
Atlanta Downtown Development Authority
Lease Revenue Taxable 6.875%,
2/1/21(e)............................... AAA $ 5,100 $ 5,112,750
ILLINOIS--2.3%
Chicago Public Building Commission
Special Obligation Taxable 6.65%,
1/1/01(c)............................... AAA 1,000 1,017,500
Chicago Public Building Commission
Special Obligation Taxable 7%,
1/1/06(c)............................... AAA 2,000 2,087,500
Chicago Public Building Commission
Special Obligation Taxable 7%,
1/1/07(c)............................... AAA 1,050 1,095,938
------------
4,200,938
------------
MASSACHUSETTS--1.5%
Massachusetts Port Authority Revenue
Taxable Series C 6.35%, 7/1/06.......... AA- 1,000 1,005,000
Massachusetts Port Authority Revenue
Taxable Series C 6.45%, 7/1/09.......... AA- 1,575 1,588,781
------------
2,593,781
------------
PENNSYLVANIA--6.2%
Harristown Development Corporation
Special Obligation Taxable 6.15%,
2/1/16.................................. Aaa(f) 5,000 4,656,250
Philadelphia Authority For Industrial
Development Pension Funding Retirement
Systems Revenue Taxable Series A 5.79%,
4/15/09................................. AAA 4,000 3,820,000
Pittsburgh Pension Taxable Series A
6.25%, 3/1/11........................... AAA 2,665 2,615,031
------------
11,091,281
------------
- ----------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(IDENTIFIED COST $34,121,318) 34,468,875
- ----------------------------------------------------------------------------
</TABLE>
38 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN U.S. GOVERNMENT SECURITIES FUND
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- -------- ------------
<S> <C> <C> <C>
ASSET-BACKED SECURITIES--0.8%
ContiMortgage Home Equity Loan Trust
98-1, B 7.86%, 4/15/29.................. BBB- $ 1,470 $ 1,405,688
- ----------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(IDENTIFIED COST $1,478,727) 1,405,688
- ----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
--------
<S> <C> <C> <C>
PREFERRED STOCKS--10.6%
REITS--10.6%
Home Ownership Funding 2, Step-down Pfd.
144A 13.338%(b)(d)(g)................... 20,722 18,964,650
- ----------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $18,670,228) 18,964,650
- ----------------------------------------------------------------------------
TOTAL LONG-TERM INVESTMENTS--96.6%
(IDENTIFIED COST $174,640,506) 172,739,967
- ----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
(000) VALUE
-------- ------------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--2.9%
FEDERAL AGENCY SECURITIES--2.9%
FHLB 4.90%, 5/3/99...................... $ 5,215 $ 5,213,580
- ----------------------------------------------------------------------------
TOTAL SHORT-TERM OBLIGATIONS
(IDENTIFIED COST $5,213,580) 5,213,580
- ----------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS--99.5%
(IDENTIFIED COST $179,854,086) 177,953,547(a)
Cash and receivables, less liabilities--0.5% 863,002
--------------
NET ASSETS--100.0% $ 178,816,549
--------------
--------------
</TABLE>
(a) Federal Income Tax Information: Net unrealized depreciation of investment
securities is comprised of gross appreciation of $1,110,124 and gross
depreciation of $3,098,976 for federal income tax purposes. At April 30,
1999, the aggregate cost of securities for federal income tax purpose was
$179,942,399.
(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,
1999, these securities amounted to a value of $24,134,775 or 13.5% of net
assets.
(c) These bonds are fully defeased by U.S. Government Treasury Obligations.
(d) Dividend payments backed by FHLMC ("Freddie Mac") Participation
Certificates.
(e) The revenue from this security is backed by the U.S. Government.
(f) As rated by Moody's, Fitch or Duff & Phelps.
(g) Variable or step coupon security; interest rate shown reflects the rate
currently in effect.
See Notes to Financial Statements
39
<PAGE>
PHOENIX-GOODWIN U.S. GOVERNMENT SECURITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Investment securities at value
(Identified cost $179,854,086) $ 177,953,547
Cash 3,781
Receivables
Interest 1,269,215
Fund shares sold 63,892
Prepaid expenses 4,418
--------------
Total assets 179,294,853
--------------
LIABILITIES
Payables
Fund shares repurchased 220,764
Investment advisory fee 67,513
Transfer agent fee 66,192
Distribution fee 45,599
Financial agent fee 13,491
Trustees' fee 4,249
Accrued expenses 60,496
--------------
Total liabilities 478,304
--------------
NET ASSETS $ 178,816,549
--------------
--------------
NET ASSETS CONSIST OF:
Capital paid in on shares of beneficial interest $ 191,770,289
Undistributed net investment loss (481,027)
Accumulated net realized loss (10,572,174)
Net unrealized depreciation (1,900,539)
--------------
NET ASSETS $ 178,816,549
--------------
--------------
CLASS A
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $166,172,571) 17,589,456
Net asset value per share $9.45
Offering price per share $9.45(1-4.75%) $9.92
CLASS B
Shares of beneficial interest outstanding, $1 par value,
unlimited authorization (Net Assets $12,643,978) 1,348,332
Net asset value and offering price per share $9.38
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 5,185,037
Dividends 761,119
Security lending 88,019
--------------
Total investment income 6,034,175
--------------
EXPENSES
Investment advisory fee 419,470
Distribution fee, Class A 216,701
Distribution fee, Class B 65,351
Financial agent fee 89,830
Transfer agent 154,128
Printing 20,644
Professional 18,273
Custodian 8,363
Trustees 7,644
Registration 2,697
Miscellaneous 6,862
--------------
Total expenses 1,009,963
--------------
NET INVESTMENT INCOME 5,024,212
--------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on securities (2,235,083)
Net change in unrealized appreciation (depreciation)
on investments (4,201,452)
--------------
NET LOSS ON INVESTMENTS (6,436,535)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ (1,412,323)
--------------
--------------
</TABLE>
40 See Notes to Financial Statements
<PAGE>
PHOENIX-GOODWIN U.S. GOVERNMENT SECURITIES FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
4/30/99 Year Ended
(Unaudited) 10/31/98
------------- -------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 5,024,212 $ 10,062,931
Net realized gain (loss) (2,235,083) 4,600,713
Net change in unrealized appreciation
(depreciation) (4,201,452) (337,053)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (1,412,323) 14,326,591
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income, Class A (5,621,427) (10,374,488)
Net investment income, Class B (387,219) (383,148)
In excess of net investment income,
Class A -- (466,829)
In excess of net investment income,
Class B -- (17,241)
------------- -------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (6,008,646) (11,241,706)
------------- -------------
FROM SHARE TRANSACTIONS
CLASS A
Proceeds from sales of shares
(2,649,892 and 4,455,347 shares,
respectively) 25,650,415 43,833,411
Net asset value of shares issued from
reinvestment of distributions
(351,191 and 659,479 shares,
respectively) 3,377,599 6,426,680
Cost of shares repurchased (3,787,558
and 5,613,314 shares, respectively) (36,591,307) (54,907,874)
------------- -------------
Total (7,563,293) (4,647,783)
------------- -------------
CLASS B
Proceeds from sales of shares (344,713
and 1,026,865 shares, respectively) 3,295,942 10,046,636
Net asset value of shares issued from
reinvestment of distributions
(18,692 and 23,348 shares,
respectively) 178,508 226,393
Cost of shares repurchased (336,201
and 283,214 shares, respectively) (3,203,912) (2,751,425)
------------- -------------
Total 270,538 7,521,604
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (7,292,755) 2,873,821
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS (14,713,724) 5,958,706
NET ASSETS
Beginning of period 193,530,273 187,571,567
------------- -------------
END OF PERIOD [INCLUDING UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS) OF
($481,027) AND $503,407,
RESPECTIVELY] $ 178,816,549 $ 193,530,273
------------- -------------
------------- -------------
</TABLE>
See Notes to Financial Statements 41
<PAGE>
PHOENIX-GOODWIN U.S. GOVERNMENT SECURITIES FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31
4/30/99 --------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.83 $ 9.66 $ 9.47 $ 9.60 $ 8.88 $ 9.87
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.26 0.59 0.55 0.52 0.55 0.64
Net realized and unrealized gain
(loss) (0.33) 0.18 0.17 (0.15) 0.72 (1.02)
---------- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS (0.07) 0.77 0.72 0.37 1.27 (0.38)
---------- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income (0.31) (0.57) (0.53) (0.50) (0.55) (0.45)
Dividends from net realized gains -- -- -- -- -- (0.02)
In excess of net investment income -- (0.03) -- -- -- --
Tax return of capital -- -- -- -- -- (0.14)
---------- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.31) (0.60) (0.53) (0.50) (0.55) (0.61)
---------- ----- ----- ----- ----- -----
Change in net asset value (0.38) 0.17 0.19 (0.13) 0.72 (0.99)
---------- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 9.45 $ 9.83 $ 9.66 $ 9.47 $ 9.60 $ 8.88
---------- ----- ----- ----- ----- -----
---------- ----- ----- ----- ----- -----
Total return(1) (0.71)%(3) 8.16% 7.85% 4.05% 14.81% (3.98)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $166,173 $180,628 $182,250 $208,552 $235,879 $262,157
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.03%(2) 1.00% 0.98% 1.03% 0.99% 0.98%
Net investment income 5.44%(2) 5.46% 5.63% 5.55% 6.01% 5.92%
Portfolio turnover 81%(3) 290% 377% 379% 178% 101%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------------------
SIX MONTHS FROM
ENDED YEAR ENDED OCTOBER 31 INCEPTION
4/30/99 ---------------------------------------------------- 2/24/94 TO
(UNAUDITED) 1998 1997 1996 1995 10/31/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.77 $ 9.60 $ 9.45 $ 9.58 $ 8.86 $ 9.61
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) 0.22 0.52 0.47 0.44 0.48 0.39
Net realized and unrealized gain
(loss) (0.33) 0.18 0.17 (0.14) 0.72 (0.75)
----- ----- ----- ----- ----- -----
TOTAL FROM INVESTMENT
OPERATIONS (0.11) 0.70 0.64 0.30 1.20 (0.36)
----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
Dividends from net investment
income (0.28) (0.51) (0.49) (0.43) (0.48) (0.30)
Dividends from net realized gains -- -- -- -- -- --
In excess of net investment income -- (0.02) -- -- -- --
Tax return of capital -- -- -- -- -- (0.09)
----- ----- ----- ----- ----- -----
TOTAL DISTRIBUTIONS (0.28) (0.53) (0.49) (0.43) (0.48) (0.39)
----- ----- ----- ----- ----- -----
Change in net asset value (0.39) 0.17 0.15 (0.13) 0.72 (0.75)
----- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $ 9.38 $ 9.77 $ 9.60 $ 9.45 $ 9.58 $ 8.86
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
Total return(1) (1.12)%(3) 7.48% 6.94% 3.39% 13.82% (3.83)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(thousands) $12,644 $12,902 $5,321 $4,875 $3,655 $1,238
RATIO TO AVERAGE NET ASSETS OF:
Operating expenses 1.78%(2) 1.75% 1.71% 1.78% 1.73% 2.00%(2)
Net investment income 4.69%(2) 4.74% 4.91% 4.79% 5.23% 4.49%(2)
Portfolio turnover 81%(3) 290% 377% 379% 178% 101%(3)
</TABLE>
(1) Maximum sales load is not reflected in the total return calculation.
(2) Annualized.
(3) Not annualized.
42
See Notes to Financial Statements
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999 (UNAUDITED)
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 Fund has distinct
investment objectives. The Aggressive Growth Fund seeks appreciation of capital
through the use of aggressive investment techniques. The Balanced Fund seeks to
provide reasonable income, long-term capital growth and conservation of capital.
The Growth Fund seeks long-term appreciation of capital. The High Yield Fund
seeks to provide high current income. The Money Market Fund seeks to provide as
high a level of current income consistent with capital preservation and
liquidity. The U.S. Government Securities Fund seeks a high level of current
income by investing in U.S. Government guaranteed or backed securities.
Each Fund offers both Class A and Class B shares and, additionally, High Yield
Fund offers Class C 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. Class C shares are sold with a 1% contingent deferred sales charge if
redeemed within one year of purchase. All 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 Fund are borne pro rata by the holders of all 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 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 Fund is notified. Interest income is recorded on the accrual
basis. The Trust does not amortize premiums except for the Money Market Fund,
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 Funds is treated as a separate taxable entity. It is the policy of
each Fund in the Trust to comply with the requirements of the Internal Revenue
Code (the Code), applicable to regulated investment companies, and to distribute
all of its taxable income to its shareholders. In addition, each Fund intends to
distribute an amount sufficient to avoid imposition of any excise tax under
Section 4982 of the Code. Therefore, no provision for federal income taxes or
excise taxes has been made.
D. DISTRIBUTIONS TO SHAREHOLDERS:
Distributions are recorded by each Fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences include the treatment of non-taxable dividends, expiring
capital loss carryforwards, foreign currency gain/loss, partnerships, and losses
deferred due to wash sales and excise tax regulations. Permanent book and tax
basis differences relating to shareholder distributions will result in
reclassifications to paid in capital.
E. FOREIGN CURRENCY TRANSLATION:
Foreign securities, other assets and liabilities are valued using the foreign
currency exchange rate effective at the end of the reporting period. Cost of
investments is translated at the currency exchange rate effective at the trade
date. The gain or loss resulting from a change in currency exchange rates
between the trade and settlement dates of a portfolio transaction is treated as
a gain or loss on foreign currency. Likewise, the gain or loss resulting from a
change in currency exchange rates, between the date income is accrued and paid,
is treated as a gain or loss on foreign currency. The Trust does not separate
that portion of the results of operations arising from changes in exchange rates
and that portion arising from changes in the market prices of securities.
43
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999 (UNAUDITED) (CONTINUED)
F. FORWARD CURRENCY CONTRACTS:
Each of the Funds, except U.S. Government and Money Market Fund, 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 Fund as an unrealized gain (or loss). When the
contract is closed, the Fund records a realized gain (or loss) equal to the
change in the value of the contract when it was opened and the value at the time
it was closed.
G. 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, 1999, the Aggressive Growth Fund and the Balanced Fund had securities on
loan with market values of $15,976,596 and $14,282,704, respectively and
collateral values of $16,432,948 and $14,581,000, respectively.
H. EXPENSES:
Expenses incurred by the Trust with respect to any two or more Funds are
allocated in proportion to the net assets of each Fund, except where allocation
of direct expense to each Fund or an alternative allocation method can be more
fairly made.
I. OPTIONS:
The Trust, except for U.S. Government and Money Market Fund, may write covered
options or purchase options contracts for the purpose of hedging against changes
in the market value of the underlying securities or foreign currencies.
The Funds will realize a gain or loss upon the expiration or closing of the
option transaction. Gains and losses on written options are reported separately
in the Statement of Operations. When a written option is exercised, the proceeds
on sales or amounts paid are adjusted by the amount of premium received. Options
written are reported as a liability in the Statement of Assets and Liabilities
and subsequently marked-to-market to reflect the current value of the option.
The risk associated with written options is that the change in value of options
contracts may not correspond to the change in value of the hedged instruments.
In addition, losses may arise from changes in the value of the underlying
instruments, or if a liquid secondary market does not exist for the contracts.
Each Fund, except for U.S. Government and Money Market Fund, may purchase
options which are included in the Funds' Schedule of Investments and
subsequently marked-to-market to reflect the current value of the option. When a
purchased option is exercised, the cost of the security is adjusted by the
amount of premium paid. The risk associated with purchased options is limited to
the premium paid.
J. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS:
Each Fund may engage in when-issued or delayed delivery transactions. The
Funds 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.
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:
<TABLE>
<CAPTION>
1st $1 $1-2 $2+
Fund Billion Billion Billion
- ---------------------------------------- ---------- ---------- ----------
<S> <C> <C> <C>
Aggressive Growth Fund.................. 0.70% 0.65% 0.60%
Balanced Fund........................... 0.55% 0.50% 0.45%
Growth Fund............................. 0.70% 0.65% 0.60%
High Yield Fund......................... 0.65% 0.60% 0.55%
Money Market Fund....................... 0.40% 0.35% 0.30%
U.S. Government Securities Fund......... 0.45% 0.40% 0.35%
</TABLE>
The Adviser has agreed to assume expenses and reduce the advisory fee for the
benefit of the Money Market Fund 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.
Effective June 25, 1998, Roger Engemann & Associates, Inc. ("REA") was
appointed subadvisor to the Aggressive Growth Fund. For
44
<PAGE>
PHOENIX SERIES FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999 (UNAUDITED) (CONTINUED)
its services, REA is paid a fee by the Adviser equal to 0.20% of the average
daily net assets of the Aggressive Growth Fund up to $262 million, 0.35% of such
value between $262 million and $1 billion, 0.325% of such value between $1
billion and $2 billion and 0.30% of such value in excess of $2 billion. REA is a
wholly-owned subsidiary of Pasadena Capital Corporation which in turn is a
wholly-owned subsidiary of Phoenix Investment Partners, Ltd., an indirect,
majority-owned subsidiary of PHL.
Phoenix Equity Planning Corporation (PEPCO), an indirect majority-owned
subsidiary of PHL, which serves as the national distributor of the Trust's
shares, has advised the Trust that it retained selling commissions of $227,516
for Class A shares, deferred sales charges of $339,733 for Class B shares and
$858 for Class C shares, for the six months ended April 30, 1999. In addition,
each Fund except the Money Market Fund pays PEPCO a distribution fee at an
annual rate of 0.25% for Class A shares, 1.00% for Class B shares and 1.00% for
Class C shares of the High Yield Fund applied to the average daily net assets of
each Fund; the distribution fee for the Money Market Fund is 0% and 0.75% for
Class A and Class B, respectively. The distributor has advised the Trust that of
the total amount expensed for the six months ended April 30, 1999, $1,637,299
was retained by the Distributor, $5,414,753 was earned by unaffiliated
participants, and $725,506 was paid to W.S. Griffith, an indirect subsidiary of
PHL.
As Financial Agent of the Trust, PEPCO receives a financial agent fee equal to
the sum of (1) the documented cost of fund accounting and related services
provided by PFPC Inc. (subagent to PEPCO), plus (2) the documented cost to PEPCO
to provide financial reporting, tax services and oversight of subagent's
performance. The current fee schedule of PFPC Inc. ranges from 0.085% to 0.0125%
of the average daily net asset values of the Fund. Certain minimum fees and fee
waivers may apply.
PEPCO serves as the Trust's Transfer Agent with State Street Bank and Trust
Company as sub-transfer agent. For the six months ended April 30, 1999, transfer
agent fees were $3,689,993 of which PEPCO retained $1,559,982 which is net of
fees paid to State Street.
At April 30, 1999, PHL and affiliates held Phoenix Series Fund shares which
aggregated the following:
<TABLE>
<CAPTION>
Aggregate
Net Asset
Shares Value
---------- -----------
<S> <C> <C>
Aggressive Growth Fund Class B.......... 14,432 $ 283,004
High Yield Fund Class A................. 456 3,649
High Yield Fund Class C................. 11,972 95,540
Money Market Fund Class A............... 11,360,408 11,360,408
U.S. Government Securities Fund Class
A..................................... 328 3,100
</TABLE>
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities during the six months ended April 30, 1999
(excluding U.S. Government and agency securities and short-term securities)
aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
-------------- --------------
<S> <C> <C>
Aggressive Growth Fund................ $ 228,481,457 $ 244,069,598
Balanced Fund......................... 540,979,894 609,157,886
Growth Fund........................... 1,653,028,873 1,965,612,427
High Yield Fund....................... 248,987,438 225,463,871
U.S. Government Securities Fund....... 4,000,000 53,824,003
</TABLE>
Purchases and sales of U.S. Government and agency securities during the six
months ended April 30, 1999, aggregated the following:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Balanced Fund............................ $ 80,596,047 $ 71,980,828
U.S. Government Securities Fund.......... 143,958,288 103,106,940
</TABLE>
4. CREDIT RISK
In countries with limited or developing markets, investments may present
greater risks than in more developed markets and the prices of such investments
may be volatile. The consequences of political, social or economic changes in
these markets may have disruptive effects on the market prices of these
investments and the income they generate, as well as a fund's ability to
repatriate such amounts.
5. CAPITAL LOSS CARRYOVERS
The following Funds have capital loss carryforwards which may be used to
offset future capital gains.
<TABLE>
<CAPTION>
U.S.
Aggressive Government
Growth High Yield Securities
Expiration Date Fund Fund Fund
- --------------------- -------------- ----------- -------------
<S> <C> <C> <C>
2002................. -- $14,103,053 $ 5,893,108
2003................. -- 46,929,335 --
2004................. -- -- 2,433,827
2006................. $6,125,512 1,533,950 --
-------------- ----------- -------------
Total.............. $6,125,512 $62,566,338 $ 8,326,935
-------------- ----------- -------------
-------------- ----------- -------------
</TABLE>
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.
45
<PAGE>
PHOENIX SERIES FUND
101 Munson Street
Greenfield, Massachusetts 01301
TRUSTEES
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
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
OFFICERS
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
John F. Sharry, Executive Vice President
J. Roger Engemann, Senior Vice President
James D. Wehr, Senior Vice President
David L. Albrycht, Vice President
Steven L. Colton, Vice President
Christopher J. Kelleher, Vice President
James E. Mair, Vice President
William R. Moyer, Vice President
Timothy P. Norman, Vice President
Leonard J. Saltiel, Vice President
Christopher J. Saner, Vice President
Julie L. Sapia, Vice President
Andrew Szabo, Vice President
John S. Tilson, 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, Connecticut 06083-2200
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 351
Boston, Massachusetts 02101
HOW TO CONTACT US
The Fund Connection 1-800-243-1574
Customer Service 1-800-243-1574 (option 0)
Investment Strategy Hotline 1-800-243-4361 (option 2)
Marketing Department 1-800-243-4361 (option 3)
Text Telephone 1-800-243-1926
World Wide Web address:
WWW.PHOENIXINVESTMENTS.COM
<PAGE>
PHOENIX EQUITY PLANNING CORPORATION ---------------
PO Box 2200 PRSRT STD
Enfield CT 06083-2200 U.S. Postage
PAID
Springfield, MA
Permit No. 444
---------------
[LOGO] PHOENIX
INVESTMENT PARTNERS
PXP 395 (6/99)
